Grom Social Enterprises (GROM) 10-Q 2 Sep 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 28, 2020
Cover [Abstract]
Entity Registrant Name	Grom Social Enterprises, Inc.
Entity Central Index Key	0001662574
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Interactive data current	Yes
Entity File Number	000-55585
Entity Incorporation State Country Code	FL
Entity Common Stock, Shares Outstanding		185,089,355
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Small Business	true
Entity Emerging Growth	true
Entity Ex Transition Period	false
Entity Shell Company	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 756,790	$ 506,219
Accounts receivable, net	540,322	545,662
Inventory, net	30,376	29,562
Prepaid expenses and other current assets	259,576	329,128
Total current assets	1,587,064	1,410,571
Operating lease right of use assets	738,467	874,159
Property and equipment, net	694,429	852,145
Goodwill	8,853,261	8,853,261
Intangible assets, net	5,759,797	5,953,255
Deferred tax assets, net - noncurrent	249,265	238,581
Other assets	74,309	79,065
Total assets	17,956,592	18,261,037
Current Liabilities
Accounts payable	774,364	808,520
Accrued liabilities	1,832,235	1,651,482
Advanced payments and deferred revenues	823,041	627,082
Convertible notes, net current	2,904,825	4,828,656
Derivative liabilities	91,517	77,584
Related party payables	310,582	462,137
Lease liabilities - current	283,789	263,252
Total current liabilities	7,020,353	8,718,713
Convertible debentures, net of loan discounts	2,525,828	505,000
Lease liabilities	480,935	633,098
Loans payable	253,912
Other noncurrent liabilities	207,725	227,229
Total liabilities	10,488,753	10,084,040
Commitments and contingencies
Stockholders' Equity
Common stock, $0.001 par value. 500,000,000 shares authorized; 184,084,636 and 167,382,807 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	184,085	167,383
Additional paid-in capital	59,665,726	58,154,730
Accumulated earnings (deficit)	(52,348,423)	(50,048,481)
Accumulated other comprehensive income	(34,724)	(97,560)
Total stockholders' equity	7,467,839	8,176,997
Total liabilities and equity	17,956,592	18,261,037
Series A Preferred Stock [Member]
Stockholders' Equity
Preferred stock	925	925
Series B Preferred Stock [Member]
Stockholders' Equity
Preferred stock	$ 250	$ 0

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Common stock, par value	$ .001	$ .001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	184,084,636	167,382,807
Common stock, shares outstanding	184,084,636	167,382,807
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	925,000	0
Preferred stock, shares outstanding	925,000	0
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	250,000	0
Preferred stock, shares outstanding	250,000	0

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Sales	$ 1,746,979	$ 2,075,081	$ 3,039,218	$ 4,041,941
Cost of good sold	661,180	1,050,372	1,273,273	1,864,874
Gross margin	1,085,799	1,024,709	1,765,945	2,177,067
Operating expenses:
Depreciation and amortization	193,234	226,371	389,199	448,799
Selling and marketing	21,960	32,934	56,277	61,033
General and administrative	1,093,880	1,224,670	2,543,228	2,744,390
Professional fees	54,760	342,893	107,478	633,662
Stock-based compensation	46,400	16,200	62,600	32,400
Total operating expenses	1,410,234	1,843,068	3,158,782	3,920,284
Income (loss) from operations	(324,435)	(818,359)	(1,392,837)	(1,743,217)
Other income (expense)
Interest income (expense), net	(612,379)	(313,622)	(890,142)	(689,782)
Gain (loss) on settlement of debt	0	0	0	(363,468)
Unrealized gain (loss) on change in fair value of derivative liabilities	(13,166)	0	(13,933)	0
Other gains (losses)	(3,128)	18,727	(3,030)	39,574
Total other income (expense)	(628,673)	(294,895)	(907,105)	(1,013,676)
Net income (loss)	(953,108)	(1,113,254)	(2,299,942)	(2,756,893)
Convertible preferred stock beneficial conversion feature and other discounts accreted as a deemed dividend	0	(100,694)	0	(740,899)
Net loss attributable to common stockholders	$ (953,108)	$ (1,213,948)	$ (2,299,942)	$ (3,497,792)
Basic and diluted earnings (loss) per common share	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Weighted average number of shares outstanding: Basic and Diluted	172,813,273	144,780,176	176,897,958	142,413,660
Comprehensive loss:
Net income (loss)	$ (953,108)	$ (1,113,254)	$ (2,299,942)	$ (2,756,893)
Foreign currency translation adjustment	29,382	9,966	62,836	21,070
Comprehensive income (loss)	$ (923,726)	$ (1,103,288)	$ (2,237,106)	$ (2,735,823)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total
Beginning balance, shares at Dec. 31, 2018			138,553,655
Beginning balance, value at Dec. 31, 2018			$ 138,554	$ 52,254,286	$ (45,457,207)	$ (153,254)	$ 6,782,379
Net income (loss)					(2,756,893)		(2,756,893)
Change in foreign currency translation						21,070	21,070
Issuance of Series A preferred stock with common stock in connection with sales made under private offerings, shares	925,000
Issuance of Series A preferred stock with common stock in connection with sales made under private offerings, value	$ 925			410,226			411,151
Issuance of common stock in connection with sales of Series A preferred stock, shares			4,625,000
Issuance of common stock in connection with sales of Series A preferred stock, value			$ 4,625	509,224			513,849
Beneficial conversion feature related to preferred stock				231,050			231,050
Accretion of Series A preferred stock				509,849			509,849
Deemed dividend on accretion of Series A preferred stock				(509,849)			(509,849)
Issuance of common stock in connection with sales made under private offerings, shares			1,233,333
Issuance of common stock in connection with sales made under private offerings, value			$ 1,233	183,767			185,000
Issuance of common stock in exchange for consulting, professional and other services, shares			1,876,782
Issuance of common stock in exchange for consulting, professional and other services, value			$ 1,877	457,120			458,997
Issuance of common stock in lieu of cash for loans payable and other accrued obligations, shares			99,720
Issuance of common stock in lieu of cash for loans payable and other accrued obligations, amount			$ 100	26,840			26,940
Issuance of common stock in connection with the issuance of convertible debentures, shares			80,130
Issuance of common stock in connection with the issuance of convertible debentures, value			$ 80	18,852			18,932
Issuance of common stock in connection with the amendment of terms of promissory note(s), shares			800,000
Issuance of common stock in connection with the amendment of terms of promissory note(s), value			$ 800	219,200			220,000
Ending balance, shares at Jun. 30, 2019	925,000		147,268,620
Ending balance, value at Jun. 30, 2019	$ 925		$ 147,269	54,079,515	(48,214,100)	(132,184)	5,881,425
Beginning balance, shares at Mar. 31, 2019	800,000		144,830,713
Beginning balance, value at Mar. 31, 2019	$ 800		$ 144,831	53,643,794	(47,100,846)	(142,150)	6,546,429
Net income (loss)					(1,113,254)		(1,113,254)
Change in foreign currency translation						9,966	9,966
Issuance of Series A preferred stock with common stock in connection with sales made under private offerings, shares	125,000
Issuance of Series A preferred stock with common stock in connection with sales made under private offerings, value	$ 125			55,431			55,556
Issuance of common stock in connection with sales of Series A preferred stock, shares			625,000
Issuance of common stock in connection with sales of Series A preferred stock, value			$ 625	68,819			69,444
Beneficial conversion feature related to preferred stock				31,250			31,250
Deemed dividend on conversion of convertible preferred stock to common stock				(31,250)			(31,250)
Accretion of Series A preferred stock				69,444			69,444
Deemed dividend on accretion of Series A preferred stock				(69,444)			(69,444)
Issuance of common stock in connection with sales made under private offerings, shares			1,233,333
Issuance of common stock in connection with sales made under private offerings, value			$ 1,233	183,767			185,000
Issuance of common stock in exchange for consulting, professional and other services, shares			499,444
Issuance of common stock in exchange for consulting, professional and other services, value			$ 500	108,852			109,352
Issuance of common stock in connection with the issuance of convertible debentures, shares			80,130
Issuance of common stock in connection with the issuance of convertible debentures, value			$ 80	18,852			18,932
Ending balance, shares at Jun. 30, 2019	925,000		147,268,620
Ending balance, value at Jun. 30, 2019	$ 925		$ 147,269	54,079,515	(48,214,100)	(132,184)	5,881,425
Beginning balance, shares at Dec. 31, 2019	925,000		167,382,807
Beginning balance, value at Dec. 31, 2019	$ 925		$ 167,383	58,154,730	(50,048,481)	(97,560)	8,176,997
Net income (loss)					(2,299,942)		(2,299,942)
Change in foreign currency translation						62,836	62,836
Issuance of Series B preferred stock with common stock in connection with sales made under private offerings, shares		250,000
Issuance of Series B preferred stock with common stock in connection with sales made under private offerings, amount		$ 250		249,750			250,000
Issuance of common stock as compensation to employees, officers and/or directors, shares			420,000
Issuance of common stock as compensation to employees, officers and/or directors, amount			$ 420	35,180			35,600
Issuance of common stock in exchange for consulting, professional and other services, shares			4,403,567
Issuance of common stock in exchange for consulting, professional and other services, value			$ 4,403	377,802			382,205
Issuance of common stock in lieu of cash for accounts payable, loans payable and other accrued obligations, shares			500,000
Issuance of common stock in lieu of cash for accounts payable, loans payable and other accrued obligations, amount			$ 500	49,500			50,000
Issuance of common stock in lieu of cash for loans payable and other accrued obligations, shares			500,000
Issuance of common stock in connection with the issuance of convertible debentures, shares			10,869,677
Issuance of common stock in connection with the issuance of convertible debentures, value			$ 10,870	725,144			736,014
Conversion of convertible debentures and accrued interest into common stock, shares			508,585
Conversion of convertible debentures and accrued interest into common stock, value			$ 509	29,491			30,000
Recognition of beneficial conversion features related to convertible notes				44,129			44,129
Ending balance, shares at Jun. 30, 2020	925,000	250,000	184,084,636
Ending balance, value at Jun. 30, 2020	$ 925	$ 250	$ 184,085	59,665,726	(52,348,423)	(34,724)	7,467,839
Beginning balance, shares at Mar. 31, 2020	925,000		178,666,260
Beginning balance, value at Mar. 31, 2020	$ 925		$ 178,666	59,061,481	(51,395,315)	(64,106)	7,781,651
Net income (loss)					(953,108)		(953,108)
Change in foreign currency translation						29,382	29,382
Issuance of Series B preferred stock with common stock in connection with sales made under private offerings, shares		250,000
Issuance of Series B preferred stock with common stock in connection with sales made under private offerings, amount		$ 250		249,750			250,000
Issuance of common stock as compensation to employees, officers and/or directors, shares			420,000
Issuance of common stock as compensation to employees, officers and/or directors, amount			$ 420	35,180			35,600
Issuance of common stock in exchange for consulting, professional and other services, shares			1,999,414
Issuance of common stock in exchange for consulting, professional and other services, value			$ 1,999	139,701			141,700
Issuance of common stock in connection with the issuance of convertible debentures, shares			2,749,677
Issuance of common stock in connection with the issuance of convertible debentures, value			$ 2,750	164,864			167,614
Conversion of convertible debentures and accrued interest into common stock, shares			249,285
Conversion of convertible debentures and accrued interest into common stock, value			$ 250	14,750			15,000
Ending balance, shares at Jun. 30, 2020	925,000	250,000	184,084,636
Ending balance, value at Jun. 30, 2020	$ 925	$ 250	$ 184,085	$ 59,665,726	$ (52,348,423)	$ (34,724)	$ 7,467,839

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities of continuing operations:
Net income (loss)	$ (2,299,942)	$ (2,756,893)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	389,199	448,799
Amortization of debt discount	221,306	269,349
Common stock issued for financing costs	167,614	18,932
Common stock issued in exchange for fees and services	382,205	458,998
Deferred taxes	(10,684)	(19,358)
Stock-based compensation	62,600	32,400
Loss on extinguishment of debt	0	363,468
Unrealized (gain) loss on change in fair value of derivative liabilities	13,933	0
Changes in operating assets and liabilities:
Accounts receivable	5,340	222,971
Inventory	(814)	(19,732)
Prepaid expenses and other current assets	42,553	81,018
Operating lease right of use assets	26,219	11,095
Other assets	4,756	38,281
Accounts payable	(34,226)	136,923
Accrued liabilities	237,116	202,298
Advanced payments and deferred revenues	195,959	152,022
Income taxes payable and other noncurrent liabilities	(19,505)	(32,727)
Related party payables	(151,555)	(190,850)
Net cash provided by (used in) operating activities	(767,926)	(583,006)
Cash flows from investing activities:
Purchase of fixed assets	(38,025)	(194,276)
Net cash provided by (used in) investing activities	(38,025)	(194,276)
Cash flows from financing activities:
Proceeds from issuance of preferred stock, net of issuance costs	250,000	411,151
Proceeds from issuance of common stock, net of issuance costs	0	698,849
Proceeds from issuance of convertible notes	3,655,000	0
Proceeds from loans payable	253,912	0
Repayments of convertible debentures	(3,143,145)	(131,429)
Net cash provided by (used in) financing activities	1,015,767	978,571
Effect of exchange rates on cash and cash equivalents	40,754	21,170
Net increase (decrease) in cash and cash equivalents	250,570	222,459
Cash and cash equivalents at beginning of period	506,219	633,593
Cash and cash equivalents at end of period	756,790	856,052
Supplemental disclosure of cash flow information:
Cash paid for interest	0	208,493
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash investing and financing activities:
Common stock issued for financing costs incurred in connection with convertible and promissory notes	568,400	0
Common stock issued to reduce accounts payable and other accrued liabilities	50,000	26,940
Conversion of convertible notes and accrued interest into common stock	30,000	0
Discount for beneficial conversion features on convertible debentures	$ 44,129	$ 0

1. Nature of Operations

1. Nature of Operations	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. NATURE OF OPERATIONS Grom Social Enterprises, Inc. (the “Company”, “Grom” “we”, “us” or “our”), a Florida corporation f/k/a Illumination America, Inc. (“Illumination”), is a media, technology and entertainment company that focuses on delivering content to children under the age of 13 years in a safe secure platform that is compliant with the Children’s Online Privacy Protection Act (“COPPA”) and can be monitored by parents or guardians. The Company operates its business through the following four wholly-owned subsidiaries: · Grom Social, Inc. (“Grom Social”) was incorporated in the State of Florida on March 5, 2012 and operates the Company’s social media network designed for children under the age of 13 years. · TD Holdings Limited (“TD Holdings”) was incorporated in Hong Kong on September 15, 2005. TD Holdings operates through its two subsidiary companies: (i) Top Draw Animation Hong Kong Limited (“TDAHK”), a Hong Kong corporation and (ii) Top Draw Animation, Inc. (“Top Draw” or “TDA”), a Philippines corporation. The group’s principal activities are the production of animated films and televisions series. · Grom Educational Services, Inc. (“GES”) was incorporated in the State of Florida on January 17, 2017. GES operates the Company’s web filtering services provided to schools and government agencies. · Grom Nutritional Services, Inc. (“GNS”) was incorporated in the State of Florida on April 19, 2017. GNS intends to market and distribute nutritional supplements to children. GNS has not generated any revenue since its inception.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. On a consolidated basis, the Company has incurred significant operating losses since inception. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company has raised capital through private placements, convertible debentures and officer loans as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans in order to fund its operations. Impact of COVID-19 On January 30, 2020, the World Health Organization announced a global health emergency because of the spread of a new strain of the novel coronavirus (“COVID-19”). On March 11, 2020, the World Health Organization declared the outbreak of COVID-19, a global pandemic. COVID-19 has and continues to significantly affect the United States and global economies. The Company has experienced significant disruptions to its business and operations due to circumstances related to COVID-19, and as a result of delays caused government-imposed quarantines, office closings and travel restrictions, which affect both the Company’s and its service providers. The Company has significant operations in Manila, Philippines, which was locked down by the government on March 12, 2020 due to concerns related to the spread of COVID-19. As a result of the Philippines government’s call to contain COVID-19, the Company’s animation studio, located in Manila, Philippines, which accounts for approximately 90% of the Company’s total revenues on a consolidated basis, has been closed. In response to the outbreak and business disruption, the Company has instituted employee safety protocols to contain the spread, including domestic and international travel restrictions, work-from-home practices, extensive cleaning protocols, social distancing and various temporary closures of its administrative offices and production studio. The Company has implemented a range of actions aimed at temporarily reducing costs and preserving liquidity. The outbreak has and may continue to spread, which could materially impact the Company’s business. The full extent of potential impacts on the Company’s business, financing activities and the global economy will depend on future developments, which cannot be predicted due to the uncertain nature of the continued COVID-19 pandemic, government mandated shut downs, and its adverse effects, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. These effects could have a material adverse impact on the Company’s business, operations, financial condition and results of operations. Management’s Representation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto at December 31, 2019, as presented in the Company’s Annual Report on Form 10-K filed on June 30, 2020 with the SEC. Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and are expressed in United States dollars. For the three and six months ended June 30, 2020, the condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Grom Social, TD Holdings, GES, GNS, and IAL. All intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to revenue recognition, valuation of accounts receivable and inventories, purchase price allocation of acquired businesses, impairment of long-lived assets and goodwill, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Other Assets and Deferred Costs – Contracts with Customers Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. The Company adopted this ASU in accordance with the modified retrospective method, effective January 1, 2018 for all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. Under the applicable revenue recognition guidance for fiscal 2017 and prior years, these transactions were recognized when the amounts were billed to the customer. As a result of the Company’s transition to ASC 606, the Company recorded a net change in beginning retained earnings of $263,741 on January 1, 2018 due to the cumulative effect of adopting ASC 606. Animation Revenue For the six months ended June 30, 2020 and 2019, the Company recorded a total of $2,687,614 and $3,707,458, respectively, of animation revenue from contracts with customers. Animation revenue is primarily generated from contracts with customers for preproduction and production services related to the development of animated movies and television series. Preproduction activities include producing storyboards, location design, model and props design, background color and color styling. Production focuses on library creation, digital asset management, background layout scene assembly, posing, animation and after effects. The Company provides services under fixed-price contracts. Under fixed-price contracts, the Company agrees to perform the specified work for a pre-determined price. To the extent actual costs vary from estimated costs, the Company’s profit may increase, decrease, or result in a loss. The Company identifies a contract under ASC 606 once (i) it is approved by all parties, (ii) the rights of the parties are identified, (iii) the payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. The Company evaluates the services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. The services in the Company’s contracts are distinct from one another as the referring parties typically can direct all, limited, or single portions of the various preproduction and production activities required to create and design and entire episode to us and we therefore have a history of developing standalone selling prices for all of these distinct components. Accordingly, our contracts are typically accounted for as containing multiple performance obligations. The Company determines the transaction price for each contract based on the consideration it expects to receive for the distinct services being provided under the contract. The Company recognizes revenue as performance obligations are satisfied and the customer obtains control of the services. In determining when performance obligations are satisfied, the Company considers factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of the Company’s revenue is recognized over time as it performs under the contract due to the contractual terms present in each contract which irrevocably transfer control of the work product to the customer as the services are performed. For performance obligations recognized over time, revenue is recognized based on the extent of progress made towards completion of the performance obligation. The Company uses the percentage-of-completion cost-to-cost measure of progress because it best depicts the transfer of control to the customer as the Company incurs costs against its contracts. Under the percentage-of-completion cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation. The percentage-of-completion cost-to-cost method requires management to make estimates and assumptions that affect the reported amounts of contract assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the total estimated amount of costs that will be incurred for a project or job. Web Filtering Revenue For the six months ended June 30, 2020 and 2019, the Company recorded a total of $349,998 and $330,052, respectively, of web filtering revenue from contracts with customers. Web filtering revenue from subscription sales is recognized on a pro-rata basis over the subscription period. Typically, a subscriber purchases computer hardware and a software and support service license for a period of use between one year to five years. The subscriber is billed in full at the time of the sale. The Company immediately recognizes revenue attributable to the computer hardware as it is non-refundable and control passes to the customer. The advanced billing component for software and service is initially recorded as deferred revenue and subsequently recognized as revenue on a straight-line basis over the subscription period. Contract Assets and Liabilities Animation revenue contracts vary with movie contracts typically allowing for progress billings over the contract term while other episodic development activities are typically billable upon delivery of the performance obligation for an episode. These episodic activities typically create unbilled contract assets between episode delivery dates while movies can create contract assets or liabilities based on the progress of activities versus the arranged billing schedule. Revenues from web filtering contracts are all billed in advance and therefore represent contract liabilities until fully recognized on a ratable basis over the contract life. The following table depicts the composition of our contract assets and liabilities as of June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Animation contract assets $ 458,912 $ 513,388 Web filtering contract assets 74,073 24,937 Other contract assets 7,337 7,337 Total contract assets $ 540,332 $ 545,662 Animation contract liabilities $ 254,115 $ 51,054 Web filtering contract liabilities 557,426 564,528 Other contract liabilities 11,500 11,500 Total contract liabilities $ 823,041 $ 627,082 Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations except as noted below: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842)

3. Accounts Receivable, net

3. Accounts Receivable, net	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Accounts Receivable, net	3. ACCOUNTS RECEIVABLE, NET The following table sets forth the components of the Company’s accounts receivable at June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Billed accounts receivable $ 474,066 $ 353,778 Unbilled accounts receivable 109,103 233,869 Allowance for doubtful accounts (42,837 ) (41,985 ) Total accounts receivable, net $ 540,332 $ 545,662 As of December 31, 2019, the Company evaluated its outstanding trade receivables and established a provision for doubtful accounts of $41,985. As of June 30, 2020, the Company determined that no additional provision for doubtful accounts was necessary. During the six months ended June 30, 2020, the Company had three customers that accounted for 76.9% of revenues and three customers that accounted for 51.9% of accounts receivable. During the year ended December 31, 2019, the Company had three customers that accounted for 42.3% of revenues and one customer that accounted for 38.7% of accounts receivable.

4. Property and Equipment

4. Property and Equipment	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	4. PROPERTY AND EQUIPMENT The following table sets forth the components of the Company’s property and equipment at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Computers, software and office equipment $ 2,237,985 $ (2,031,810 ) $ 206,175 $ 2,184,327 $ (1,882,567 ) $ 301,760 Machinery and equipment 181,397 (138,015 ) 43,382 175,761 (125,272 ) 50,489 Vehicles 160,927 (91,602 ) 69,325 158,849 (77,133 ) 81,716 Furniture and fixtures 412,644 (343,078 ) 69,566 399,512 (323,771 ) 75,741 Leasehold improvements 1,110,372 (830,340 ) 280,032 1,081,076 (764,070 ) 317,006 Total fixed assets 4,103,325 (3,434,845 ) 668,480 3,999,525 (3,172,813 ) 826,712 Capital assets not subject to depreciation: Construction in progress 25,949 – 25,949 25,433 – 25,433 Total fixed assets $ 4,129,274 $ (3,434,845 ) $ 694,429 $ 4,024,958 $ (3,172,813 ) $ 852,145 For the six months ended June 30, 2020 and 2019, the Company recorded depreciation expense of $195,741 and $255,341, respectively.

5. Leases

5. Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	5. LEASES The Company has entered into operating leases primarily for real estate. These leases have terms which range from three years to five years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. These operating leases are listed as separate line items on the Company's condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company's condensed consolidated financial statements. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. For the six months ended June 30, 2020, the Company recognized approximately $181,987 in total lease costs Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Information related to the Company's operating ROU assets and related lease liabilities are as follows: Three Months Ended Cash paid for operating lease liabilities $ 177,883 Weighted-average remaining lease term 2.6 Weighted-average discount rate 10% Minimum future lease payments $ 906,888 The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending December 31: 2020 $ 263,253 2021 304,326 2022 302,781 2023 25,990 2024 and thereafter – $ 896,350

6. Goodwill and Intangible Asse

6. Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	6. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The goodwill arising from the Company’s acquisitions is attributable to the value of the potential expanded market opportunity with new customers. At June 30, 2020, the carrying amount of the Company’s goodwill was $8,853,261. The following table sets forth the components of the Company’s intangible assets at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Intangible assets subject to amortization: Customer relationships 10.00 $ 1,600,286 $ (636,214 ) $ 963,872 $ 1,600,286 $ (556,400 ) $ 1,043,886 Web filtering software 5.00 1,134,435 (794,105 ) 340,331 1,134,435 (680,661 ) 453,774 Subtotal – 2,734,721 (1,430,519 ) 1,304,202 2,734,721 (1,237,061 ) 1,497,660 Intangible assets not subject to amortization: Trade names – 4,455,595 – 4,455,595 4,455,595 – 4,455,595 Total intangible assets – $ 7,190,316 $ (1,430,519 ) $ 5,759,797 $ 7,190,316 $ (1,237,061 ) $ 5,953,255 For the six months ended June 30, 2020 and 2019, the Company recorded amortization expense of $193,458 and $193,458, respectively, for intangible assets subject to amortization. The following table provides information regarding estimated amortization expense for intangible assets subject to amortization for each of the following years ending December 31: 2020 $ 386,916 2021 386,916 2022 160,029 2023 160,029 2024 160,029 Thereafter 243,742 $ 1,497,660

7. Accrued Liabilities

7. Accrued Liabilities	6 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Accrued Liabilities	7. ACCRUED LIABILITIES The following table sets forth the components of the Company’s accrued liabilities at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Executive and employee compensation $ 1,492,487 $ 1,237,531 Interest on convertible debentures and promissory notes 274,823 314,309 Other accrued expenses and liabilities 70,133 99,641 Total accrued liabilities $ 1,837,443 $ 1,651,482

8. Related Party Payables

8. Related Party Payables	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Payables	8. RELATED PARTY PAYABLES The Company has engaged the family of Darren Marks, its Chief Executive Officer, to assist in the development of the Grom Social website and mobile application. These individuals have created over 1,400 hours of original short form content. Mr. Marks’ wife Sarah, his sons Zachary (the founder of Grom), Luke, Jack, and Dawson, and his daughters Caroline and Victoria all work for the Company either as employees or contractors. · The amounts paid to these related parties during the six months ended June 30, 2020 were as follows: Zachary $21,000. · The amounts paid to these related parties during the six months ended June 30, 2019 were as follows: Sarah $12,600, Zachary $33,750, Luke $14,400, Jack $1,800, Victoria $2,250 and Caroline $3,750. Compensation for services provided by the Marks family is expected to continue for the foreseeable future. Each member of the Marks family is actively involved in the creation of content for the website and mobile app, including numerous videos focusing on social responsibility, anti-bullying, digital citizenship, unique blogs, and special events. Liabilities Due to Executive and Other Officers Messrs. Darren Marks and Melvin Leiner, both officers of the Company, have made numerous loans to Grom to help fund operations. These loans are non-interest bearing and callable on demand. No such loans were made to the Company during the three months ended June 30, 2020. Neither Mr. Marks nor Mr. Leiner have any intention of calling these loans at present. The loan balances are classified as short-term obligations under Related Party Payables on the Company’s balance sheet. As of June 30, 2020 and December 31, 2019, the outstanding balances due to Mr. Marks were $101,596 and $215,122, respectively, and the outstanding balances due to Mr. Leiner were $173,429 and $210,929, respectively. On July 13, 2018, Dr. Thomas Rutherford, a director, loaned the Company $50,000 to help fund operations. The loan is non-interest bearing and callable on demand. Dr. Rutherford does not have any intention of calling the loan at present. The loan balance is classified as a short-term obligation under Related Party Payables on the Company’s balance sheet. As of June 30, 2020 and December 31, 2019, the aggregate related party payables were $310,582 and $462,137, respectively.

9. Convertible Notes

9. Convertible Notes	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Convertible Notes	9. CONVERTIBLE NOTES The following tables set forth the components of the Company’s convertible notes as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 10% Unsecured Convertible Redeemable Notes – Variable Conversion Price $ 176,364 $ 100,000 10% Secured Convertible Notes with Original Issuance Discounts 664,473 664,473 12% Senior Secured Convertible Notes (Newbridge) 210,286 289,143 12% Senior Secured Convertible Notes (Original TDH Notes) 983,666 4,000,000 12% Senior Secured Convertible Notes (TDH Secured Notes) 2,954,265 505,000 12% Senior Secured Convertible Notes (Additional Secured Notes) 1,057,781 – Loan discounts (616,182 ) (224,958 ) Total convertible notes, net 5,430,653 5,333,658 Less: current portion of convertible notes, net (2,904,825 ) (4,828,658 ) Convertible notes, net $ 2,525,828 $ 505,000 10% Unsecured Convertible Redeemable Note – Variable Conversion Price On July 9, 2019, the Company issued a convertible redeemable note to an unrelated party in the principal amount of $100,000 less $5,000 in third party fees resulting in net cash proceeds to the Company of $95,000. The note accrues interest at a rate of 10% per annum, is due on July 9, 2020 and is convertible into common stock of the Company at the option of the noteholder six months after issuance at a rate equal to a 30% discount from the lowest volume weighted average price of the Company’s common stock in the preceding 20 trading days. The Company analyzed the conversion feature of the note for a beneficial conversion feature, for which the Company concluded that a beneficial conversion feature existed. The beneficial conversion feature was measured using the commitment-date stock price and its fair value was determined to be $51,730. This amount is recorded as a debt discount and is amortized as interest expense over the term of the note. The Company also analyzed the conversion feature of the note for derivative accounting consideration and determined that the embedded conversion features should be classified as a derivative because the exercise price of the convertible note is subject to a variable conversion rate. The aggregate fair value of the derivative at the issuance date of the note was $85,410 which was recorded as a derivative liability on the balance sheet. The Company recorded a debt discount of $43,270 which was up to the face value of the convertible note with the excess fair value at initial measurement of $42,140 being recognized as derivative expense. At June 30, 2020, the Company remeasured the fair value of its derivative liabilities at $91,517 and recorded an unrealized loss of $13,933 from change in fair value for the six months ended June 30, 2020. The fair value of the embedded derivative was determined using a Black-Scholes option pricing model based on the following assumptions: (1) expected volatility of 190.9%, (2) risk-free interest rate of 0.16%, (3) an exercise price of $0.036, and (4) an expected life of 0.02 years. On March 1, 2020, the Company issued a convertible redeemable note to an unrelated party in the principal amount of $100,000. The note accrues interest at a rate of 10% per annum, is due on August 31, 2020 and is convertible into common stock of the Company at the option of the noteholder at a rate equal to a 30% discount from the lowest volume weighted average price of the Company’s common stock in the preceding 20 trading days. The Company analyzed the conversion feature of the note for a beneficial conversion feature, for which the Company concluded that a beneficial conversion feature existed. The beneficial conversion feature was measured using the commitment-date stock price and its fair value was determined to be $44,129. This amount is recorded as a debt discount and is amortized as interest expense over the term of the note. 10% Secured Convertible Notes with Original Issuance Discounts During the year ended December 31, 2017, the Company issued secured, convertible notes with original issuance discounts to accredited investors for gross proceeds of $601,223. The notes were issued with original issuance discounts of 10.0%, or $60,122, bear interest at a rate of 10% per annum, are payable semiannually in cash, and carry a two-year term with a fixed conversion price of $0.78. In connection with the issuance of these notes, the Company issued to such investors an aggregate of 150,305 shares of common stock as an inducement to lend. These shares were valued at $78,321 with share prices ranging between $0.48 and $0.70 per share. The Company recorded the value of these shares as a loan discount to be amortized as interest expense over the term of the related convertible notes. As of June 30, 2020, the principal balance of these notes was $311,223 and all associated loan discounts were fully amortized. During the year ended December 31, 2018, the Company issued secured, convertible notes with original issuance discounts to accredited investors for gross proceeds of $1,313,485 in a private offering. The notes were issued with original issuance discounts of 10.0%, or $131,348, bear interest at a rate of 10% per annum, are payable semiannually in cash, and carry a two-year term with a fixed conversion price of $0.78. In connection with the issuance of these notes, the Company issued to such investors an aggregate of 328,371 shares of common stock as an inducement to lend. These shares were valued at $198,259 with share prices ranging between $0.30 and $0.81 per share. The Company recorded the value of these shares as a loan discount to be amortized as interest expense over the term of the related convertible notes. As of June 30, 2020, the principal balance of these notes was $297,250 and all associated loan discounts were fully amortized. During the year ended December 31, 2018, the Company also issued secured, convertible notes with original issuance discounts to accredited investors for gross proceeds of $356,000 in a private offering. The notes were issued with original issuance discounts of 20.0%, or $71,200, bear interest at a rate of 10% per annum, are payable semiannually in cash, and carry a two-year term with a fixed conversion price of $0.50. In connection with the issuance of these notes, the Company issued to such investors an aggregate of 203,000 shares of common stock as an inducement to lend. These shares were valued at $62,269 with share prices ranging between $0.29 and $0.35 per share. The Company recorded the value of these shares as a loan discount to be amortized as interest expense over the term of the related convertible notes. As of June 30, 2020, the principal balance of these notes was $56,000 and the remaining balance on the associated loan discounts was $942. 12% Senior Secured Convertible Notes (Newbridge Offering) On November 30, 2018, the Company closed a private offering in which it sold 12% secured convertible promissory notes (“12% Notes”) in an aggregate principal amount of $552,000 and issued an aggregate of 730,974 shares of its common stock to nine accredited investors pursuant to a private placement memorandum and subscription agreement. The 12% Notes which are due and payable two years from issuance are secured by certain assets of the Company and rank senior to all other indebtedness of the Company except for the $4,000,000 promissory notes (the “TD Notes”) issued to the shareholders of TD Holdings in connection with a share sale agreement dated June 30, 2016, as amended. Messrs. Marks and Leiner pledged an aggregate of 10,000,000 shares of common stock of the Company pursuant to a pledge and security agreement to secure the timely payment of the 12% Notes. The 12% Notes are convertible, in whole or in part, by the noteholders at a conversion rate of $0.40 if the Company’s common stock trades or is quoted at more than $0.40 per share for 10 consecutive days. The conversion price is subject to adjustment resulting from certain corporate actions including the subdivision or combination of stock, payment of dividends, reorganization, reclassification, consolidations, merger or sale of the Company. Interest on the 12% Notes is payable monthly in 21 equal installments commencing four months after the issuance of the 12% Notes. Upon the occurrence of an event of default, the interest rate will increase to 15% and the 12% Notes will become immediately due and payable. The Company may prepay the 12% Notes in full at any time by paying accrued interest and 110% of the outstanding principal balance. Newbridge Securities Corporation acted as exclusive placement agent for the offering and received (i) $55,200, (ii) 113,586 shares of common stock; and (iii) $11,040, representing a non-accountable expense allowance for its services. As of June 30, 2020, the remaining principal balance on the 12% Notes was $ 210,286 73,574 12% Senior Secured Convertible Notes (Original TDH Notes) On June 20, 2016, the Company issued $4,000,000 of senior secured promissory notes to the shareholders of TD Holdings (the “TDH Sellers”) in connection with a share sale agreement pursuant to which the Company acquired 100% of the common stock of TD Holdings (“the TDH Share Sale Agreement”). The notes bear interest at 5.0% per annum and are due on the earlier of (i) June 20, 2018 or (ii) the date on which the Company successfully completes a qualified initial public offering as defined in the agreement. The notes are collateralized by all of the assets of TD Holdings. First Amendment to the TDH Share Sale Agreement On January 3, 2018, the Company entered into an amendment to the TDH Share Sale Agreement (the “First Amendment”). Under the terms of the First Amendment: · The maturity date of the notes was extended from July 1, 2018 until July 1, 2019. · The interest rate on the notes during for one-year extension period from July 2, 2018 to July 1, 2019 was increased to 10%. · Interest is payable quarterly in arrears during the one-year extension period, instead of annually in arrears. The first such quarterly interest payment of $100,000 is due on September 30, 2018. · Under the terms of the terms of TDH Share Sale Agreement, the TDH Sellers could earn up to an additional $5.0 million in contingent earnout payments. The original earnout period ended on December 31, 2018. The First Amendment extended the earnout period by one year to December 31, 2019. As consideration to enter into the First Amendment, the Company issued 800,000 shares of its common stock valued at $480,000 to the TDH Sellers. Second Amendment to the TDH Share Sale Agreement On January 15, 2019, the Company entered into a second amendment to the TDH Share Sale Agreement (the “Second Amendment”). Under the terms of the Second Amendment: · The maturity date of the notes was extended from July 1, 2019 to April 2, 2020. · The TDH Sellers shall have the right to convert the notes at a conversion price of $0.27 per share, either in whole or in part at any time prior to the maturity, subject to the terms and conditions set forth in the Second Amendment. · In the event that the notes are not repaid prior to July 2, 2019, no funds will be transferred by TDH to the Company. · The payment terms of the contingent earnout was modified from 50% payable in cash and 50% payable in stock to 75% payable in cash and 25% payable in stock. As consideration to enter into the Second Amendment, the Company issued an additional 800,000 shares of its common stock valued at $220,000 to the TDH Sellers. Due to the inclusion of a conversion feature, the Second Amendment was considered an extinguishment and subsequent reissuance of the notes under the guidelines of ASC 470-20-40-7 through 40-9. As a result, the Company recorded a loss on the extinguishment of debt of $363,468 related to the Second Amendment during the year ended December 31, 2019. The principal value of the notes was reclassified to convertible notes, net – current on the Company’s condensed consolidated financial statements. Third Amendment to the TDH Share Sale Agreement On March 16, 2020, the Company entered into a third amendment (the “Third Amendment”) to the TDH Share Sale Agreement, pursuant to which the Company’s subsidiary, Grom Holdings, had acquired 100% of the common stock of TDH (representing ownership of the animation studio) from certain individuals (the “TDH Sellers”). The Company used the proceeds received from the TDH Secured Notes Offering to pay the TDH Sellers $3,000,000 of the principal due under the Original TDH Notes, leaving a balance due to the TDH Sellers of $1,000,000 in principal (plus accrued interest and costs). In addition, the accrued interest of $361,767 due to the TDH Sellers pursuant to the Original TDH Notes will be paid by three monthly payments of $93,922, commencing April 16, 2020, and thereafter nine monthly installments of $6,667. Pursuant to the Third Amendment, the TDH Sellers and the Company agreed, among other things: · To extend the maturity date of the remaining Original TDH Notes by one year to June 30, 2021; · To increase the interest rate on the remaining Original TDH Notes to 12%; · To grant a first priority security interest on the shares of TDH and TDAHK to the TDH Sellers, pari passu with the holders of the TDH Secured Notes; and · To pay the balance of the Original TDH Notes monthly in arrears, amortized over a four-year period. As of June 30, 2020, the principal balance of these notes was $983,666. 12% Senior Secured Convertible Notes (TDH Secured Notes) On March 16, 2020, the Company sold (the “TDH Secured Notes Offering”) an aggregate $3,000,000 of its 12% senior secured convertible notes (the “TDH Secured Notes”), to eleven accredited investors (the “TDH Secured Note Lenders”), pursuant to a subscription agreement with the TDH Secured Note Lenders. Interest on the TDH Secured Notes accrues on the outstanding principal amount at the rate of 12% per annum. Principal and interest on the TDH Secured Notes are payable monthly, on an amortized basis over 48 months, with the last payment due on March 16, 2024. Pursuant to the TDH Secured Notes, TD Holdings will pay amounts due under the TDH Secured Notes. Prepayment of amounts due under TDH Secured Notes is subject to a prepayment penalty in an amount equal to 4% of the amount prepaid. The TDH Secured Notes are convertible at the option of the holders at 75% of the average sales price of the Company’s common stock over the 60 trading days immediately preceding conversion provided that the conversion price shall not be less than $0.10 per share. The Company’s obligations under the TDH Secured Notes, are secured by Grom Holdings’ shares of stock of TDH, and of its wholly owned subsidiary, TDAHK. The TDH Secured Notes rank equally and ratably on a pari passu basis with (i) the other TDH Secured Notes and (ii) the Original TDH Notes issued by the Company pursuant to TDH Share Sale Agreement. If the Company sells the animation studio located in Manila, Philippines, which is currently owned by TDH through TDAHK (the “Animation Studio”), for more than $12,000,000, and so long as any amount of principal is outstanding under the TDH Secured Notes, the Company will pay the TDH Secured Notes holders from the proceeds of the sale (i) all amounts of principal outstanding under the TDH Secured Notes, (ii) such amount of interest which would be due and payable assuming the TDH Secured Notes were held to maturity (minus any amounts of interest previously paid hereunder), and (iii) an additional 10% of the amount of principal outstanding under the TDH Secured Notes within five days of the closing of such sale. In connection with the issuance of the TDH Secured Notes, the Company issued to each TDH Secured Note holder shares of common stock equal to 20% of the principal amount of such holder’s TDH Secured Note, divided by $0.10. Accordingly, an aggregate of 6,000,000 shares of common stock were issued to the TDH Secured Note holders on March 16, 2020. These shares were valued at $420,000, or $0.07 per share, which represents fair market value. The Company recorded the value of these shares as a loan discount to be amortized as interest expense over the term of the notes. As of June 30, 2020, the principal balance of these notes was $2,954,265 and the remaining balance on the associated loan discounts was $389,375. 12% Senior Secured Convertible Notes (Additional Secured Notes) On March 16, 2020, the Company issued to seven accredited investors (the “Additional Secured Note Lenders”) an aggregate of $1,060,000 of its 12% senior secured convertible notes (the “Additional Secured Notes”) in a private offering pursuant to a subscription agreement with substantially the same terms as the TDH Secured Notes except that the Additional Secured Notes are secured by all of the assets of the Company other than the shares and other assets of TDH and TDAHK, pursuant to a security agreement by and among the Company and the Additional Secured Note Lenders. Interest on the Additional Secured Notes accrues on the outstanding principal amount at the rate of 12% per annum. Principal and interest on the Additional Secured Notes are payable monthly, on an amortized basis over 48 months, with the last payment due on March 16, 2024. Prepayment of the amounts due under the Additional Secured Notes is subject to a prepayment penalty of 4% of the amount prepaid. The Additional Secured Notes are convertible at the option of the holders at 75% of the average sales price of the Company’s common stock over the 60 trading days immediately preceding conversion provided that the conversion price shall not be less than $0.10 per share. In connection with the issuance of the Additional Secured Notes, the Company issued to each Additional Secured Note Lender shares of common stock equal to 20% of the principal amount of such holder’s Additional Secured Note, divided by $0.10. Accordingly, an aggregate of 2,120,000 shares of common stock were issued. These shares were valued at $148,000, or $0.07 per share, which represents fair market value. The Company recorded the value of these shares as a loan discount to be amortized as interest expense over the term of the related convertible notes. As of June 30, 2020, the principal balance of these notes was $1,057,781 and the remaining balance on the associated loan discounts was $137,579. Future Minimum Principal Payments The principal repayments based upon the maturity dates of the Company’s borrowings for each of the next five years are as follows: 2020 $ 1,929,452 2021 $ 1,758,149 2022 $ 1,046,862 2023 $ 1,179,630 2024 $ 210,666

10. Stockholders' Equity

10. Stockholders' Equity	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity	10. STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 25,000,000 shares of preferred stock, par value of $0.001 per share. Series A Preferred Stock On February 22, 2019, the Company designated 2,000,000 shares of its preferred stock as 10% Series A convertible preferred stock, par value $0.001 per share (“Series A Stock”). Each share of Series A Stock is convertible, at any time, into five shares of common stock of the Company. On each of February 27, 2019 and March 11, 2019, the Company received $400,000 from the sale of 400,000 shares of Series A Stock to accredited investors in private offerings pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D, as promulgated under the Securities Act of 1933, as amended (the “Securities Act”). As an inducement to purchase the Series A Stock, each investor also received 2,000,000 restricted shares of the Company’s common stock. On April 2, 2019, the Company received $125,000 from the sale of 125,000 shares of Series A Stock to an accredited investor in a private offering pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D, as promulgated under the Securities Act. As an inducement to purchase the Series A Stock, the investor also received 625,000 restricted shares of the Company’s common stock. As a result of the issuance of the Series A Stock, the Company recorded a beneficial conversion feature and other discounts as a deemed dividend in its condensed consolidated financial statements of $740,899. As of June 30, 2020 and December 31, 2019, the Company had 925,000 shares of Series A Stock issued and outstanding. Series B Preferred Stock On August 4, 2020, the Company filed with the Secretary of State of the State of Florida a Certificate of Designation of Preferences, Rights and Limitations of Series B Stock designating 10,000,000 shares as Series B Preferred Stock (the “Series B Stock”). The Series B Stock ranks senior and prior to all other classes or series of the Company’s preferred stock and common stock. The holder may at any time after the 12-month anniversary of the issuance of the shares of Series B Stock convert such shares into common stock at a conversion price equal to the 30-day volume weighted average price (“VWAP”) of a share of common stock for each share of Series B Stock to be converted. In addition, the Company at any time may require conversion of all or any of the Series B Stock then outstanding at a 50% discount to the 30-day VWAP. Each share of Series B Stock entitles the holder to fifty votes for each share of Series B Stock. The consent of the holders of at least two-thirds of the shares of Series B Stock is required for the amendment to any of the terms of the Series B Stock, to create any additional class of stock unless the stock ranks junior to the Series B Stock, to make any distribution or dividend on any securities ranking junior to the Series B Stock, to merge or sell all or substantially all of the assets of the Company or acquire another business or effectuate any liquidation of the Company. Cumulative dividends accrue on each share of Series B Stock at the rate of 8% per annum of the stated value of $1.00 per share and are payable in common stock in arrears quarterly commencing 90 days from issuance. Upon a liquidation, dissolution or winding up of the Company, the holders of the Series B Stock are entitled to $1.00 per share plus all accrued and unpaid dividends. No distribution may be made to holders of shares of capital stock ranking junior to the Series B Stock upon a liquidation until Series B stockholders receive their liquidation preference. The holders of 66 2/3% of the then outstanding shares of Series B Stock, may elect to deem a merger, reorganization or consolidation of the Company into or with another corporation, not affiliated with said majority, or other similar transaction or series of related transactions in which more than 50% of the voting power of the Company is disposed of in exchange for property, rights or securities distributed to holders thereof by the acquiring person, firm or other entity, or the sale of all or substantially all of the assets of the Company. On June 19, 2020, the Company received gross cash proceeds of $250,000 from one accredited investor, pursuant to the terms of a subscription agreement, and subsequently issued an aggregate of 250,000 shares of Series B Stock on August 6, 2020. Common Stock The Company is authorized to issue 500,000,000 shares of common stock, par value of $0.001 per share and had 184,084,636 and 167,382,807 shares of common stock issued and outstanding as of June 30, 2020 and December 31, 2019, respectively. Common Stock Issued in Private Placements During the six months ended June 30, 2019, the Company issued 1,233,333 shares of common stock and warrants to purchase 1,233,333 shares of common stock at an exercise price of $0.30 in private placements for proceeds of $185,000. Common Stock Issued as Compensation to Employees, Officers and/or Directors During the six months ended June 30, 2020, the Company issued 420,000 shares of common stock with a fair market value of $35,600 to employees, officers and/or directors as compensation. Common Stock Issued in Exchange for Consulting, Professional and Other Services During the six months ended June 30, 2020, the Company issued 4,403567 shares of common stock with a fair market value of $382,205 to contractors for services rendered. During the six months ended June 30, 2019, the Company issued 1,876,782 shares of common stock with a fair market value of $458,997 to contractors for services rendered. Common Stock Issued in lieu of Cash for Loans Payable and Other Accrued Obligations During the six months ended June 30, 2020, the Company issued 500,000 shares of common stock with a fair market value of $50,000 to satisfy loans payable and other accrued obligations. During the six months ended June 30, 2019, the Company issued 99,720 shares of common stock with a fair market value of $26,940 to satisfy loans payable and other accrued obligations. Common Stock Issued in Connection with the Conversion of Convertible Note Principal and Accrued Interest During the six months ended June 30, 2020, the Company issued 508,585 shares of common stock upon the conversion of $30,000 in convertible note principal and accrued interest. Common Stock Issued in Connection with the Amendment of Terms of a Convertible Note During the six months ended June 30, 2019, the Company issued 800,000 shares of common stock valued at $220,000 to amend the terms of a convertible note. Common Stock Issued in Connection with the Issuance of Convertible Promissory Notes During the six months ended June 30, 2020, the Company issued 10,869,677 shares of common stock valued at $736,014 in connection with the issuance of convertible notes. Refer to the disclosures for TDH Secured Notes and Additional Secured Notes under Note 9 – Convertible Debt for additional information. During the six months ended June 30, 2019, the Company issued 80,130 shares of common stock valued at $18,932 in connection with the issuance of convertible notes. Stock Purchase Warrants Stock purchase warrants are accounted for as equity in accordance with ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity The following table reflects all outstanding and exercisable warrants at June 30, 2020 and December 31, 2019. All warrants are exercisable for a period of five years from the date of issuance: Number of Warrants Outstanding Weighted Average Exercise Price Weighted Average Contractual Life (Yrs.) Balance January 1, 2019 781,910 $ 1.36 1.38 Warrants issued 5,450,000 $ 0.25 Warrants exercised – $ – Warrants forfeited (567,166 ) $ – December 31, 2019 5,664,744 $ 0.28 1.79 Warrants issued 500,000 $ 0.10 Warrants exercised – $ – Warrants forfeited – $ – Balance June 30, 2020 6,164,744 $ 0.26 1.52 Stock Options The following table represents all outstanding and exercisable stock options as of June 30, 2020. Year Issued Options Options Options Vested Strike Price Weighted Average Remaining Life (Yrs.) 2013 7,735,350 (834,000 ) 6,901,350 6,901,350 $ 0.24 3.47 2015 11,467,500 (11,467,500 ) – – $ 0.36 – 2016 5,421,000 – 5,421,000 5,421,000 $ 0.78 0.94 2018 60,000 – 60,000 60,000 $ 0.78 3.08 Total 24,683,850 (12,301,500 ) 12,282,348 12,282,348 $ 0.48 1.69 During the six months ended June 30, 2020 and 2019, the Company did not record any stock-based compensation expense related to stock options.

11. Commitments and Contingenci

11. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. COMMITMENTS AND CONTINGENCIES In the United States, the Company leases approximately 2,100 square feet of office space in Boca Raton, Florida at the rate of $4,000 per month pursuant to a three-year lease which expires in October 2021. The Florida office space is the location of the Company’s corporate headquarters and administrative staff. The Company’s animation operations leases portions of three floors aggregating approximately 28,800 square feet in the West Tower of the Philippine Stock Exchange Centre in Pasig City, Manila. The space is used for administration and production purposes. The Company pays approximately $24,000 per month in the aggregate for such space (which increases by approximately 5% annually). These leases expire in December 2022. The Company’s web filtering operations lease approximately 1,400 square feet of office space in Norcross, Georgia. The Company pays approximately $2,100 per month pursuant to a five-year lease which expires in December 2023. The lease payment increases by approximately 3% annually.

12. Subsequent Events

12. Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, Subsequent Events Exchange Agreements On August 6, 2020, the Company, entered into exchange agreements (the “Debt Exchange Agreements”) with holders of the Company’s (a) 10% convertible notes (the “OID Notes”) in the aggregate amount of $411,223 of outstanding principal and accrued and unpaid interest; (b) 12% secured convertible notes, which were secured against the assets of TD Holdings, (the “TDH Notes”), in the aggregate amount of $1,101,000 of outstanding principal and accrued and unpaid interest; and (iii) 12% secured convertible notes, which were secured against all of the other assets of the Company (the “Other Secured Notes”, and together with the OID Notes and the TDH Notes, the “Notes”) in the aggregate amount of $782,500 of outstanding principal and accrued and unpaid interest. Pursuant to the terms of the Debt Exchange Agreements, the holders of the Notes exchanged the outstanding Notes, and all amounts owed by the Company thereunder, for an aggregate of 3,623,884 shares of the Company’s newly designated Series B 8% convertible preferred stock (the “Series B Stock”). At the time of the exchange, all amounts due under the Notes were deemed to be paid-in-full and the Notes were cancelled. In addition, on August 6, 2020, the Company entered into exchange agreements (the “Series A Exchange Agreements” and together with the Debt Exchange Agreements, the “Exchange Agreements”) with the holders of 925,000 issued and outstanding shares of the Company’s Series A Stock. Pursuant to the terms of the Series A Exchange Agreements, the holders of Series A Stock exchanged their shares for an aggregate of 1,202,500 shares of the Company’s Series B Stock. At the time of the exchange, all of the exchanged shares of Series A Preferred Stock were cancelled. In connection with the execution and delivery of the Exchange Agreements, the holders of the Notes and the Series A stockholders executed and delivered proxies to Darren Marks and Melvin Leiner, both officers and directors of the Company, granting each of them the power to vote all their shares in the Company for a period of two years. As a result, Messrs. Marks and Leiner, collectively, have an aggregate of 314,596,923 votes, or 71.6% of the voting capital of the Company. Subscription Agreements On August 6, 2020, the Company issued an aggregate of 250,000 shares of Series B Stock to one accredited investor for gross cash proceeds of $250,000, pursuant to the terms of a subscription agreement. Series B Stock On August 4, 2020, the Company filed with the Secretary of State of the State of Florida a Certificate of Designation of Preferences, Rights and Limitations of Series B Stock designating 10,000,000 shares as Series B Preferred Stock. The Series B Stock ranks senior and prior to all other classes or series of the Company’s preferred stock and common stock. The holder may at any time after the 12-month anniversary of the issuance of the shares of Series B Stock convert such shares into common stock at a conversion price equal to the 30-day volume weighted average price (“VWAP”) of a share of common stock for each share of Series B Stock to be converted. In addition, the Company at any time may require conversion of all or any of the Series B Stock then outstanding at a 50% discount to the 30-day VWAP. Each share of Series B Stock entitles the holder to fifty votes for each share of Series B Stock. The consent of the holders of at least two-thirds of the shares of Series B Stock is required for the amendment to any of the terms of the Series B Stock, to create any additional class of stock unless the stock ranks junior to the Series B Stock, to make any distribution or dividend on any securities ranking junior to the Series B Stock, to merge or sell all or substantially all of the assets of the Company or acquire another business or effectuate any liquidation of the Company. Cumulative dividends accrue on each share of Series B Stock at the rate of 8% per annum of the stated value of $1.00 per share and are payable in common stock in arrears quarterly commencing 90 days from issuance. Upon a liquidation, dissolution or winding up of the Company, the holders of the Series B Stock are entitled to $1.00 per share plus all accrued and unpaid dividends. No distribution may be made to holders of shares of capital stock ranking junior to the Series B Stock upon a liquidation until Series B stockholders receive their liquidation preference. The holders of 66 2/3% of the then outstanding shares of Series B Stock, may elect to deem a merger, reorganization or consolidation of the Company into or with another corporation, not affiliated with said majority, or other similar transaction or series of related transactions in which more than 50% of the voting power of the Company is disposed of in exchange for property, rights or securities distributed to holders thereof by the acquiring person, firm or other entity, or the sale of all or substantially all of the assets of the Company.

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Going Concern	Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. On a consolidated basis, the Company has incurred significant operating losses since inception. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company has raised capital through private placements, convertible debentures and officer loans as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans in order to fund its operations.
Impact of COVID-19	Impact of COVID-19 On January 30, 2020, the World Health Organization announced a global health emergency because of the spread of a new strain of the novel coronavirus (“COVID-19”). On March 11, 2020, the World Health Organization declared the outbreak of COVID-19, a global pandemic. COVID-19 has and continues to significantly affect the United States and global economies. The Company has experienced significant disruptions to its business and operations due to circumstances related to COVID-19, and as a result of delays caused government-imposed quarantines, office closings and travel restrictions, which affect both the Company’s and its service providers. The Company has significant operations in Manila, Philippines, which was locked down by the government on March 12, 2020 due to concerns related to the spread of COVID-19. As a result of the Philippines government’s call to contain COVID-19, the Company’s animation studio, located in Manila, Philippines, which accounts for approximately 90% of the Company’s total revenues on a consolidated basis, has been closed. In response to the outbreak and business disruption, the Company has instituted employee safety protocols to contain the spread, including domestic and international travel restrictions, work-from-home practices, extensive cleaning protocols, social distancing and various temporary closures of its administrative offices and production studio. The Company has implemented a range of actions aimed at temporarily reducing costs and preserving liquidity. The outbreak has and may continue to spread, which could materially impact the Company’s business. The full extent of potential impacts on the Company’s business, financing activities and the global economy will depend on future developments, which cannot be predicted due to the uncertain nature of the continued COVID-19 pandemic, government mandated shut downs, and its adverse effects, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. These effects could have a material adverse impact on the Company’s business, operations, financial condition and results of operations.
Management's Representation of Interim Financial Statements	Management’s Representation of Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto at December 31, 2019, as presented in the Company’s Annual Report on Form 10-K filed on June 30, 2020 with the SEC.
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and are expressed in United States dollars. For the three and six months ended June 30, 2020, the condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries Grom Social, TD Holdings, GES, GNS, and IAL. All intercompany accounts and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to revenue recognition, valuation of accounts receivable and inventories, purchase price allocation of acquired businesses, impairment of long-lived assets and goodwill, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Other Assets and Deferred Costs – Contracts with Customers Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. The Company adopted this ASU in accordance with the modified retrospective method, effective January 1, 2018 for all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. Under the applicable revenue recognition guidance for fiscal 2017 and prior years, these transactions were recognized when the amounts were billed to the customer. As a result of the Company’s transition to ASC 606, the Company recorded a net change in beginning retained earnings of $263,741 on January 1, 2018 due to the cumulative effect of adopting ASC 606.
Animation Revenue	Animation Revenue For the six months ended June 30, 2020 and 2019, the Company recorded a total of $2,687,614 and $3,707,458, respectively, of animation revenue from contracts with customers. Animation revenue is primarily generated from contracts with customers for preproduction and production services related to the development of animated movies and television series. Preproduction activities include producing storyboards, location design, model and props design, background color and color styling. Production focuses on library creation, digital asset management, background layout scene assembly, posing, animation and after effects. The Company provides services under fixed-price contracts. Under fixed-price contracts, the Company agrees to perform the specified work for a pre-determined price. To the extent actual costs vary from estimated costs, the Company’s profit may increase, decrease, or result in a loss. The Company identifies a contract under ASC 606 once (i) it is approved by all parties, (ii) the rights of the parties are identified, (iii) the payment terms are identified, (iv) the contract has commercial substance, and (v) collectability of consideration is probable. The Company evaluates the services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. The services in the Company’s contracts are distinct from one another as the referring parties typically can direct all, limited, or single portions of the various preproduction and production activities required to create and design and entire episode to us and we therefore have a history of developing standalone selling prices for all of these distinct components. Accordingly, our contracts are typically accounted for as containing multiple performance obligations. The Company determines the transaction price for each contract based on the consideration it expects to receive for the distinct services being provided under the contract. The Company recognizes revenue as performance obligations are satisfied and the customer obtains control of the services. In determining when performance obligations are satisfied, the Company considers factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of the Company’s revenue is recognized over time as it performs under the contract due to the contractual terms present in each contract which irrevocably transfer control of the work product to the customer as the services are performed. For performance obligations recognized over time, revenue is recognized based on the extent of progress made towards completion of the performance obligation. The Company uses the percentage-of-completion cost-to-cost measure of progress because it best depicts the transfer of control to the customer as the Company incurs costs against its contracts. Under the percentage-of-completion cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation. The percentage-of-completion cost-to-cost method requires management to make estimates and assumptions that affect the reported amounts of contract assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to the total estimated amount of costs that will be incurred for a project or job.
Webfiltering Revenue	Web Filtering Revenue For the six months ended June 30, 2020 and 2019, the Company recorded a total of $349,998 and $330,052, respectively, of web filtering revenue from contracts with customers. Web filtering revenue from subscription sales is recognized on a pro-rata basis over the subscription period. Typically, a subscriber purchases computer hardware and a software and support service license for a period of use between one year to five years. The subscriber is billed in full at the time of the sale. The Company immediately recognizes revenue attributable to the computer hardware as it is non-refundable and control passes to the customer. The advanced billing component for software and service is initially recorded as deferred revenue and subsequently recognized as revenue on a straight-line basis over the subscription period.
Contract Assets and Liabilities	Contract Assets and Liabilities Animation revenue contracts vary with movie contracts typically allowing for progress billings over the contract term while other episodic development activities are typically billable upon delivery of the performance obligation for an episode. These episodic activities typically create unbilled contract assets between episode delivery dates while movies can create contract assets or liabilities based on the progress of activities versus the arranged billing schedule. Revenues from web filtering contracts are all billed in advance and therefore represent contract liabilities until fully recognized on a ratable basis over the contract life. The following table depicts the composition of our contract assets and liabilities as of June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Animation contract assets $ 458,912 $ 513,388 Web filtering contract assets 74,073 24,937 Other contract assets 7,337 7,337 Total contract assets $ 540,332 $ 545,662 Animation contract liabilities $ 254,115 $ 51,054 Web filtering contract liabilities 557,426 564,528 Other contract liabilities 11,500 11,500 Total contract liabilities $ 823,041 $ 627,082
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations except as noted below: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842)

2. Summary of Significant Acc_3

2. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Schedule of contract assets and liabilities	The following table depicts the composition of our contract assets and liabilities as of June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Animation contract assets $ 458,912 $ 513,388 Web filtering contract assets 74,073 24,937 Other contract assets 7,337 7,337 Total contract assets $ 540,332 $ 545,662 Animation contract liabilities $ 254,115 $ 51,054 Web filtering contract liabilities 557,426 564,528 Other contract liabilities 11,500 11,500 Total contract liabilities $ 823,041 $ 627,082

3. Accounts Receivable (Tables)

3. Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Schedule of accounts receivable	The following table sets forth the components of the Company’s accounts receivable at June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Billed accounts receivable $ 474,066 $ 353,778 Unbilled accounts receivable 109,103 233,869 Allowance for doubtful accounts (42,837 ) (41,985 ) Total accounts receivable, net $ 540,332 $ 545,662

4. Property and Equipment (Tabl

4. Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	The following table sets forth the components of the Company’s property and equipment at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Computers, software and office equipment $ 2,237,985 $ (2,031,810 ) $ 206,175 $ 2,184,327 $ (1,882,567 ) $ 301,760 Machinery and equipment 181,397 (138,015 ) 43,382 175,761 (125,272 ) 50,489 Vehicles 160,927 (91,602 ) 69,325 158,849 (77,133 ) 81,716 Furniture and fixtures 412,644 (343,078 ) 69,566 399,512 (323,771 ) 75,741 Leasehold improvements 1,110,372 (830,340 ) 280,032 1,081,076 (764,070 ) 317,006 Total fixed assets 4,103,325 (3,434,845 ) 668,480 3,999,525 (3,172,813 ) 826,712 Capital assets not subject to depreciation: Construction in progress 25,949 – 25,949 25,433 – 25,433 Total fixed assets $ 4,129,274 $ (3,434,845 ) $ 694,429 $ 4,024,958 $ (3,172,813 ) $ 852,145

5. Leases (Tables)

5. Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of operating lease liabilities	Information related to the Company's operating ROU assets and related lease liabilities are as follows: Three Months Ended Cash paid for operating lease liabilities $ 177,883 Weighted-average remaining lease term 2.6 Weighted-average discount rate 10% Minimum future lease payments $ 906,888 The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending December 31: 2020 $ 263,253 2021 304,326 2022 302,781 2023 25,990 2024 and thereafter – $ 896,350

6. Goodwill and Intangible As_2

6. Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The following table sets forth the components of the Company’s intangible assets at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Intangible assets subject to amortization: Customer relationships 10.00 $ 1,600,286 $ (636,214 ) $ 963,872 $ 1,600,286 $ (556,400 ) $ 1,043,886 Web filtering software 5.00 1,134,435 (794,105 ) 340,331 1,134,435 (680,661 ) 453,774 Subtotal – 2,734,721 (1,430,519 ) 1,304,202 2,734,721 (1,237,061 ) 1,497,660 Intangible assets not subject to amortization: Trade names – 4,455,595 – 4,455,595 4,455,595 – 4,455,595 Total intangible assets – $ 7,190,316 $ (1,430,519 ) $ 5,759,797 $ 7,190,316 $ (1,237,061 ) $ 5,953,255
Schedule of amortization	The following table provides information regarding estimated amortization expense for intangible assets subject to amortization for each of the following years ending December 31: 2020 $ 386,916 2021 386,916 2022 160,029 2023 160,029 2024 160,029 Thereafter 243,742 $ 1,497,660

7. Accrued Liabilities (Tables)

7. Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Payables and Accruals [Abstract]
Schedule of accrued liabilities	The following table sets forth the components of the Company’s accrued liabilities at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Executive and employee compensation $ 1,492,487 $ 1,237,531 Interest on convertible debentures and promissory notes 274,823 314,309 Other accrued expenses and liabilities 70,133 99,641 Total accrued liabilities $ 1,837,443 $ 1,651,482

9. Convertible Notes (Tables)

9. Convertible Notes (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of convertible debt	The following tables set forth the components of the Company’s convertible notes as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 10% Unsecured Convertible Redeemable Notes – Variable Conversion Price $ 176,364 $ 100,000 10% Secured Convertible Notes with Original Issuance Discounts 664,473 664,473 12% Senior Secured Convertible Notes (Newbridge) 210,286 289,143 12% Senior Secured Convertible Notes (Original TDH Notes) 983,666 4,000,000 12% Senior Secured Convertible Notes (TDH Secured Notes) 2,954,265 505,000 12% Senior Secured Convertible Notes (Additional Secured Notes) 1,057,781 – Loan discounts (616,182 ) (224,958 ) Total convertible notes, net 5,430,653 5,333,658 Less: current portion of convertible notes, net (2,904,825 ) (4,828,658 ) Convertible notes, net $ 2,525,828 $ 505,000
Schedule of future debt maturity payments	The principal repayments based upon the maturity dates of the Company’s borrowings for each of the next five years are as follows: 2020 $ 1,929,452 2021 $ 1,758,149 2022 $ 1,046,862 2023 $ 1,179,630 2024 $ 210,666

10. Stockholders' Equity (Table

10. Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Schedule of warrants	The following table reflects all outstanding and exercisable warrants at June 30, 2020 and December 31, 2019. All warrants are exercisable for a period of five years from the date of issuance: Number of Warrants Outstanding Weighted Average Exercise Price Weighted Average Contractual Life (Yrs.) Balance January 1, 2019 781,910 $ 1.36 1.38 Warrants issued 5,450,000 $ 0.25 Warrants exercised – $ – Warrants forfeited (567,166 ) $ – December 31, 2019 5,664,744 $ 0.28 1.79 Warrants issued 500,000 $ 0.10 Warrants exercised – $ – Warrants forfeited – $ – Balance June 30, 2020 6,164,744 $ 0.26 1.52
Schedule of options	The following table represents all outstanding and exercisable stock options as of June 30, 2020. Year Issued Options Options Options Vested Strike Price Weighted Average Remaining Life (Yrs.) 2013 7,735,350 (834,000 ) 6,901,350 6,901,350 $ 0.24 3.47 2015 11,467,500 (11,467,500 ) – – $ 0.36 – 2016 5,421,000 – 5,421,000 5,421,000 $ 0.78 0.94 2018 60,000 – 60,000 60,000 $ 0.78 3.08 Total 24,683,850 (12,301,500 ) 12,282,348 12,282,348 $ 0.48 1.69

2. Summary of Significant Acc_4

2. Summary of Significant Accounting Policies (Details - Contract Assets and Liabilities) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Contract assets	$ 540,332	$ 545,662
Contract liabilities	823,041	627,082
Animation Contracts [Member]
Contract assets	458,912	513,388
Contract liabilities	254,115	51,054
Web Filtering Contract [Member]
Contract assets	74,073	24,937
Contract liabilities	557,426	564,528
Other Contracts [Member]
Contract assets	7,337	7,337
Contract liabilities	$ 11,500	$ 11,500

2. Summary of Significant Acc_5

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 1,746,979	$ 2,075,081	$ 3,039,218	$ 4,041,941
Animation Revenue [Member]
Revenue			2,687,614	3,707,458
Web Filtering Revenue [Member]
Revenue			$ 349,998	$ 330,052

3. Accounts Receivable (Details

3. Accounts Receivable (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Billed accounts receivable	$ 474,066	$ 353,778
Unbilled accounts receivable	109,103	233,869
Allowance for doubtful accounts	(42,837)	(41,985)
Total accounts receivable, net	$ 540,322	$ 545,662

3. Accounts Receivable (Detai_2

3. Accounts Receivable (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Provision for doubtful accounts	$ 0		$ 41,985
Sales Revenue, Net [Member] | Three Customers [Member]
Concentration percentage	76.90%	42.30%
Accounts Receivable [Member] | One Customer [Member]
Concentration percentage	51.90%	38.70%

4. Property and Equipment (Deta

4. Property and Equipment (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Property and equipment, gross	$ 4,129,274	$ 4,024,958
Accumulated depreciation	(3,434,845)	(3,172,813)
Property and equipment, net	694,429	852,145
Computers, Software and Office Equipment [Member]
Property and equipment, gross	2,237,985	2,184,327
Accumulated depreciation	(2,031,810)	(1,882,567)
Property and equipment, net	206,175	301,760
Machinery and Equipment [Member]
Property and equipment, gross	181,397	175,761
Accumulated depreciation	(138,015)	(125,272)
Property and equipment, net	43,382	50,489
Vehicles [Member]
Property and equipment, gross	160,927	158,849
Accumulated depreciation	(91,602)	(77,133)
Property and equipment, net	69,325	81,716
Furniture and Fixtures [Member]
Property and equipment, gross	412,644	399,512
Accumulated depreciation	(343,078)	(323,771)
Property and equipment, net	69,566	75,741
Leasehold Improvements [Member]
Property and equipment, gross	1,110,372	1,081,076
Accumulated depreciation	(830,340)	(764,070)
Property and equipment, net	280,032	317,006
Construction in Progress [Member]
Property and equipment, gross	25,949	25,433
Accumulated depreciation	0	0
Property and equipment, net	$ 25,949	$ 25,433

4. Property and Equipment (De_2

4. Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 195,741	$ 255,341

5. Leases (Details)

5. Leases (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Leases [Abstract]
Cash paid for operting lease liabilities	$ 177,883
Weighted-average remaining lease term	2 years 7 months 6 days
Weighted average discount rate	10.00%
Minimum future lease payments	$ 906,888
Future lease payment 2020	263,253
Future lease payment 2021	304,326
Future lease payment 2022	302,781
Future lease payment 2023	25,990
Future lease payment 2024 and thereafter	0
Total	$ 896,350

5. Leases (Details Narrative)

5. Leases (Details Narrative)	6 Months Ended
	Jun. 30, 2020USD ($)
Leases [Abstract]
Lease costs	$ 181,987

6. Goodwill and Intangible As_3

6. Goodwill and Intangible Assets (Details - Intangibles) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Finite intangible assets, gross	$ 2,734,721	$ 2,734,721
Accumulated amortization	(1,430,519)	(1,237,061)
Finite intangible assets, net	1,304,202	1,497,660
Total intangible assets, gross	7,190,316	7,190,316
Total intangible assets	5,759,797	5,953,255
Trade Names [Member]
Indefinite lived intangible asset	4,455,595	4,455,595
Customer Relationships [Member]
Finite intangible assets, gross	1,600,286	1,600,286
Accumulated amortization	(636,214)	(556,400)
Finite intangible assets, net	$ 963,872	1,043,886
Amortization period	10 years
NetSpective Webfiltering Software [Member]
Finite intangible assets, gross	$ 1,134,435	1,134,435
Accumulated amortization	(794,105)	(680,661)
Finite intangible assets, net	$ 340,331	$ 453,774
Amortization period	5 years

6. Goodwill and Intangible As_4

6. Goodwill and Intangible Assets (Details - Amortization schedule) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Future amortization 2020		$ 386,916
Future amortization 2021		386,916
Future amortization 2022		160,029
Future amortization 2023		160,029
Future amortization 2024		160,029
Future amortization Thereafter		243,742
Future amortization total	$ 1,304,202	$ 1,497,660

6. Goodwill and Intangible As_5

6. Goodwill and Intangible Assets (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 8,853,261		$ 8,853,261
Amortization expense	$ 193,458	$ 193,458

7. Accrued Liabilities (Details

7. Accrued Liabilities (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Executive and employee compensation	$ 1,492,487	$ 1,237,531
Interest on convertible debentures and promissory notes	274,823	314,309
Other accrued expenses and liabilities	70,133	99,641
Total accrued liabilities	$ 1,832,235	$ 1,651,482

8. Related Party Payables (Deta

8. Related Party Payables (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Accounts payable, related parties	$ 310,582		$ 462,137
Marks LLC [Member]
Accounts payable, related parties	101,596		215,122
Leiner LLC [Member]
Accounts payable, related parties	173,429		210,929
Rutherford [Member]
Accounts payable, related parties			$ 50,000
Zachary [Member]
Wages and salaries	$ 21,000	$ 33,750
Sarah [Member]
Wages and salaries		12,600
Luke [Member]
Wages and salaries		14,400
Jack [Member]
Wages and salaries		1,800
Victoria [Member]
Wages and salaries		2,250
Caroline [Member]
Wages and salaries		$ 3,750

9. Convertible Notes (Details -

9. Convertible Notes (Details - Convertible debentures) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Total convertible notes, net	$ 5,430,653	$ 5,333,658
Convertible debt, current	(2,904,825)	(4,828,656)
Convertible debt, net	2,525,828	505,000
Convertible Debentures [Member]
Unamortized discount	(616,182)	(224,958)
Convertible Debentures [Member] | Unsecured Convertible Redeemable Note [Member]
Convertible debt, gross	176,364	100,000
Convertible Debentures [Member] | Secured Convertible Notes OID [Member]
Convertible debt, gross	664,473	664,473
Convertible Debentures [Member] | Senior Secured Convertible Newbridge [Member]
Convertible debt, gross	210,286	289,143
Convertible Debentures [Member] | Senior Secured Convertible Original TDH Notes [Member]
Convertible debt, gross	983,666	4,000,000
Convertible Debentures [Member] | Senior Secured Convertible TDH Notes [Member]
Convertible debt, gross	2,954,265	505,000
Convertible Debentures [Member] | Senior Secured Convertible Additional Secured Notes [Member]
Convertible debt, gross	$ 1,057,781	$ 0

9. Convertible Notes (Details_2

9. Convertible Notes (Details - Debt maturities)	Jun. 30, 2020USD ($)
Debt Disclosure [Abstract]
2020	$ 1,929,452
2021	1,758,149
2022	1,046,862
2023	1,179,630
2024	$ 210,666

9. Convertible Notes (Details N

9. Convertible Notes (Details Narrative) - USD ($)	Jan. 15, 2019	Jan. 03, 2018	Mar. 01, 2020	Jun. 30, 2020	Mar. 16, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019
Proceeds from convertible debt							$ 3,655,000	$ 0
Amortization of loan discount							221,306	269,349
Derivative liability				$ 91,517			91,517				$ 77,584
Gain (loss) on extinguishment of debt				0		$ 0	$ 0	$ (363,468)
Unsecured Convertible Redeemable Note [Member]
Debt initial date							Jul. 9, 2019
Debt face amount				100,000			$ 100,000
Debt maturity date							Jul. 9, 2020
Proceeds from convertible debt			$ 100,000				$ 95,000
Debt Instrument, Fee				$ 5,000			$ 5,000
Debt interest rate			10.00%	10.00%			10.00%
Beneficial conversion feature			$ 44,129				$ 51,730
Derivative liability				$ 85,410			85,410
Debt discount				43,270			43,270
Derivative expense							42,140
Gain on Derivative							13,933
Convertible Notes Payable [Member] | OID Notes 2 [Member]
Convertible debt, gross				297,250			297,250
Proceeds from convertible debt									$ 1,313,485
Debt interest rate									10.00%
Original issue discount									$ 131,348
Convertible Notes Payable [Member] | OID Notes 2 [Member] | Inducement to lend [Member]
Stock issued with convertible debt, shares								328,371
Stock issued with convertible debt, value								$ 198,259
Convertible Notes Payable [Member] | OID Notes 1 [Member]
Convertible debt, gross				311,223			311,223
Proceeds from convertible debt										$ 601,223
Debt interest rate										10.00%
Original issue discount										$ 60,122
Convertible Notes Payable [Member] | OID Notes 1 [Member] | Inducement to lend [Member]
Stock issued with convertible debt, shares										150,305
Stock issued with convertible debt, value										$ 78,321
Convertible Notes Payable [Member] | OID Notes 3 [Member]
Convertible debt, gross				56,000			56,000
Proceeds from convertible debt									$ 356,000
Debt interest rate									10.00%
Original issue discount									$ 71,200
Unamortized discount				942			942
Convertible Notes Payable [Member] | OID Notes 3 [Member] | Inducement to lend [Member]
Stock issued with convertible debt, shares								203,000
Stock issued with convertible debt, value								$ 62,269
Convertible Notes Payable [Member] | Newbridge Offering [Member]
Convertible debt, gross				210,286			210,286
Debt face amount				$ 552,000			$ 552,000
Debt interest rate				12.00%			12.00%
Stock issued with convertible debt, shares							730,974
Unamortized discount				$ 73,574			$ 73,574
TDH Acquisition Agreement [Member] | First Amendment [Member]
Debt maturity date		Jul. 1, 2019
Debt interest rate		10.00%
Earnout period maturity date		Dec. 31, 2019
TDH Acquisition Agreement [Member] | First Amendment [Member] | TDH Sellers [Member]
Stock issued with convertible debt, shares	800,000	800,000
Stock issued with convertible debt, value	$ 220,000	$ 480,000
TDH Acquisition Agreement [Member] | Second Amendment [Member]
Debt maturity date	Apr. 2, 2020
Debt conversion price per share	$ 0.27
Gain (loss) on extinguishment of debt							$ (363,468)
TDH Acquisition Agreement [Member] | ThirdAmendment [Member]
Debt maturity date					Jun. 30, 2021
Debt interest rate					12.00%
Stock issued with convertible debt, shares					2,954,265		983,666
Debt converted, amount converted					$ 361,767
Convertible Debentures [Member]
Unamortized discount				616,182			$ 616,182				224,958
Convertible Debentures [Member] | Senior Secured Convertible TDH Notes [Member]
Convertible debt, gross				$ 2,954,265			$ 2,954,265				505,000
Debt initial date							Mar. 16, 2020
Debt maturity date							Mar. 16, 2024
Debt interest rate				12.00%			12.00%
Debt discount				$ 389,375			$ 389,375
Debt converted, amount converted							$ 420,000
Debt converted, shares issued							6,000,000
Debt conversion price per share				$ 0.07			$ 0.07
Convertible Debentures [Member] | Senior Secured Convertible Additional Secured Notes [Member]
Convertible debt, gross				$ 1,057,781			$ 1,057,781				$ 0
Debt initial date							Mar. 16, 2020
Debt maturity date							Mar. 16, 2024
Debt interest rate				12.00%			12.00%
Debt discount				$ 137,579			$ 137,579
Debt converted, amount converted							$ 148,000
Debt converted, shares issued							2,120,000
Debt conversion price per share				$ 0.07			$ 0.07

10. Stockholders' Equity (Detai

10. Stockholders' Equity (Details - Warrant activity) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of warrants
Warrants outstanding, beginning balance	5,664,744	781,910
Warrants issued	500,000	5,450,000
Warrants exercised	0	0
Warrants forfeited	0	(567,166)
Warrants outstanding, ending balance	6,164,744	5,664,744	781,910
Weighted Average Exercise Price
Weighted Average Exercise Price, Warrants outstanding, beginning balance	$ 0.28	$ 1.36
Weighted Average Exercise Price, Warrants issued	0.1	0.25
Weighted Average Exercise Price, Warrants exercised
Weighted Average Exercise Price, Warrants forfeited
Weighted Average Exercise Price, Warrants outstanding, ending balance	$ 0.26	$ 0.28	$ 1.36
Average Remaining Contractual Term, Warrants outstanding	1 year 6 months 7 days	1 year 9 months 14 days	1 year 4 months 17 days

10. Stockholders' Equity (Det_2

10. Stockholders' Equity (Details - Option Activity) - Options [Member]	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Options issued	24,683,850
Options forfeited	(12,301,500)
Options outstanding	12,282,348
Vested options	12,282,348
Strike price | $ / shares	$ 0.48
Weighted average remaining life	1 year 8 months 9 days
Option 1 [Member]
Options issued	7,735,350
Options forfeited	(834,000)
Options outstanding	6,901,350
Vested options	6,901,350
Strike price | $ / shares	$ 0.24
Weighted average remaining life	3 years 5 months 20 days
Option 2 [Member]
Options issued	11,467,500
Options forfeited	(11,467,500)
Options outstanding	0
Vested options	0
Strike price | $ / shares	$ 0.36
Weighted average remaining life
Option 3 [Member]
Options issued	5,421,000
Options forfeited	0
Options outstanding	5,421,000
Vested options	5,421,000
Strike price | $ / shares	$ 0.78
Weighted average remaining life	11 months 8 days
Option 4 [Member]
Options issued	60,000
Options forfeited	0
Options outstanding	60,000
Vested options	60,000
Strike price | $ / shares	$ 0.78
Weighted average remaining life	3 years 29 days

10. Stockholders' Equity (Det_3

10. Stockholders' Equity (Details Narrative) - USD ($)	Aug. 06, 2020	Aug. 04, 2020	Apr. 02, 2019	Mar. 11, 2019	Jun. 19, 2020	Feb. 27, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Feb. 22, 2019
Stock issued for services, value							$ 141,700	$ 109,352	$ 382,205	$ 458,997
Deemed dividend							$ 0	100,694	$ 0	740,899
Common stock							184,084,636		184,084,636		167,382,807
Issuance of common stock in connection with the amendment of terms of promissory note(s), value										220,000
Stock based compensation							$ 46,400	$ 16,200	$ 62,600	32,400
Series A Preferred Stock [Member]
Preferred stock, shares authorized							2,000,000		2,000,000		2,000,000	2,000,000
Preferred stock, par value							$ 0.001		$ 0.001		$ 0.001	$ 0.001
Deemed dividend										740,899
Preferred stock, shares issued							925,000		925,000		0
Preferred stock, shares outstanding							925,000		925,000		0
Series B Preferred Stock [Member]
Preferred stock, shares authorized							10,000,000		10,000,000		10,000,000
Preferred stock, par value		$ 1					$ 0.001		$ 0.001		$ 0.001
Stock issued for services,shares		10,000,000
Preferred stock, shares issued							250,000		250,000		0
Preferred stock, shares outstanding							250,000		250,000		0
Stock conversion description		Any of the Series B Stock then outstanding at a 50% discount to the 30-day VWAP
Dividend Rate, Percentage		8.00%
Options [Member]
Stock based compensation									$ 0	$ 0
Convertible debt and interest [Member]
Stock issued for conversion of securities, shares									508,585
Stock issued for conversion of securities, value									$ 30,000
Amended Promissory Note [Member]
Issuance of common stock in connection with the amendment of terms of promissory note(s), shares									800,000
Issuance of common stock in connection with the amendment of terms of promissory note(s), value									$ 220,000
Convertible Debentures [Member]
Issuance of common stock in connection with the issuance of convertible debenture(s), shares									10,869,677	80,130
Issuance of common stock in connection with the issuance of convertible debenture(s), value									$ 736,014	$ 18,932
Loans Payable and Other Accrued Obligations [Member]
Issuance of common stock in lieu of cash for loans payable and other accrued obligations, shares									500,000	99,720
Issuance of common stock in lieu of cash for loans payable and other accrued obligations, value									$ 50,000	$ 26,940
Employees, Officers and Director [Member]
Stock issued for compensation, shares									420,000
Stock issued for compensation, value									$ 35,600
Private Placement [Member]
Common stock								1,233,333		1,233,333
Warrants issued to purchase								1,233,333		1,233,333
Exercise price								$ 0.30		$ 0.30
Proceeds from private placement										$ 185,000
Consultants and Other Professionals [Member]
Stock issued for services,shares									4,403,567	1,876,782
Stock issued for services, value									$ 382,205	$ 458,997
Accredited Investors [Member]
Restricted shares			625,000	2,000,000
Accredited Investors [Member] | Series A Preferred Stock [Member]
Stock issued for services,shares			125,000	400,000		400,000
Stock issued for services, value			$ 125,000	$ 400,000		$ 400,000
Accredited Investors [Member] | Series B Preferred Stock [Member]
Stock issued for services,shares	250,000
Stock issued for services, value					$ 250,000

11. Commitments and Contingen_2

11. Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2020USD ($)
NetSpective Division [Member]
Operating lease payment frequency	monthly
Operating lease payment	$ 2,100
Lease expiration date	Dec. 31, 2023
Boca Raton, Florida [Member]
Operating lease payment frequency	monthly
Operating lease payment	$ 4,000
Lease expiration date	Oct. 31, 2021
Manila, Philippines [Member]
Operating lease payment frequency	monthly
Operating lease payment	$ 24,000
Lease expiration date	Dec. 31, 2022