Grom Social Enterprises (GROM) 10-Q 17 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 12, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-40409
Entity Registrant Name	Grom Social Enterprises, Inc.
Entity Central Index Key	0001662574
Entity Tax Identification Number	46-5542401
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	2060 NW Boca Raton Blvd.
Entity Address, Address Line Two	Suite #6
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	(561)
Local Phone Number	287-5776
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,497,302
Common Stock, par value $0.001
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	GROM
Security Exchange Name	NASDAQ
Warrants to purchase shares of Common Stock, par value $0.001 per share
Title of 12(b) Security	Warrants to purchase shares of Common Stock, par value $0.001 per share
Trading Symbol	GROMW
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 4,136,755	$ 3,871,176
Accounts receivable, net	826,394	1,162,230
Inventory, net	99,070	92,303
Prepaid expenses and other current assets	620,937	605,497
Total current assets	5,683,156	5,731,206
Operating lease right of use assets	1,019,237	1,069,222
Property and equipment, net	183,546	285,676
Goodwill	10,567,484	10,567,484
Intangible assets, net	5,321,725	5,364,231
Other assets	1,640,603	1,627,078
Total assets	24,415,751	24,644,897
Current liabilities:
Accounts payable	419,028	839,679
Accrued liabilities	302,863	378,954
Dividends payable	557,435	371,799
Advanced payments and deferred revenues	445,477	576,338
Convertible notes payable, net – current	536,780	503,465
Related party payables	50,000	50,000
Lease liabilities – current	254,577	269,681
Total current liabilities	2,566,160	2,989,916
Convertible notes payable, net of loan discounts	0	68,199
Lease liabilities	773,970	803,958
Other noncurrent liabilities	226,602	434,976
Total liabilities	3,566,732	4,297,049
Commitments and contingencies (Note 17)
Stockholders' Equity:
Common stock, $0.001 par value. 500,000,000 shares authorized; 7,339,677 and 2,514,858 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	7,340	2,515
Additional paid-in capital	104,609,026	101,726,355
Accumulated deficit	(85,802,343)	(83,472,412)
Accumulated other comprehensive loss	(136,493)	(166,129)
Total Grom Social Enterprises, Inc. stockholders' equity	18,686,812	18,099,611
Noncontrolling interests	2,162,207	2,248,237
Total stockholders' equity	20,849,019	20,347,848
Total liabilities and equity	24,415,751	24,644,897
Series A Preferred Stock [Member]
Stockholders' Equity:
Preferred Stock, Value, Issued	0	0
Series B Preferred Stock [Member]
Stockholders' Equity:
Preferred Stock, Value, Issued	0	0
Series C Preferred Stock [Member]
Stockholders' Equity:
Preferred Stock, Value, Issued	$ 9,282	$ 9,282

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	25,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	7,339,677	2,514,858
Common stock, shares outstanding	7,339,677	2,514,858
Series A 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	0	0
Preferred stock, shares outstanding	0	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	0	0
Preferred stock, shares outstanding	0	0
Series C 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	9,281,809	9,281,809
Preferred stock, shares outstanding	9,281,809	9,281,809

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Sales	$ 1,199,643	$ 1,231,125
Cost of goods sold	659,506	916,949
Gross profit	540,137	314,176
Operating expenses:
Depreciation and amortization	153,190	64,450
Selling, general and administrative	1,875,360	1,694,819
Professional fees	276,920	404,066
Total operating expenses	2,305,470	2,163,335
Loss from operations	(1,765,333)	(1,849,159)
Other income (expense)
Interest income (expense), net	(480,778)	(1,631,022)
Other gains (losses)	15,786	23,736
Total other income (expense)	(464,992)	(1,607,286)
Loss before income taxes	(2,230,325)	(3,456,445)
Provision for income taxes (benefit)	0	0
Net loss	(2,230,325)	(3,456,445)
Loss attributable to noncontrolling interests	(86,030)	(79,838)
Net loss attributable to Grom Social Enterprises, Inc. stockholders	(2,144,295)	(3,376,607)
Dividends to Series C preferred stockholders	185,636	176,844
Net loss attributable to Grom Social Enterprises, Inc. common stockholders	(2,329,931)	(3,553,451)
Comprehensive loss:
Net loss	(2,230,325)	(3,456,445)
Foreign currency translation adjustment	29,636	(3,718)
Comprehensive loss	(2,200,689)	(3,460,163)
Comprehensive loss attributable to noncontrolling interests	(86,030)	(79,838)
Comprehensive loss attributable to Grom Social Enterprises, Inc. common stockholders	$ (2,114,659)	$ (3,380,325)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Earnings Per Share, Basic	$ (0.43)	$ (7.59)
Earnings Per Share, Diluted	$ (0.43)	$ (7.59)
Weighted Average Number of Shares Outstanding, Basic	5,448,105	468,458
Weighted Average Number of Shares Outstanding, Diluted	5,448,105	468,458

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series B [Member]	Preferred Stock Series C [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2021			$ 9,400	$ 434	$ 89,863,573	$ (66,404,190)	$ (30,755)	$ 2,682,339	$ 26,120,801
Beginning balance, shares at Dec. 31, 2021			9,400,309	433,631
Net loss						(3,376,607)		(79,838)	(3,456,445)
Change in foreign currency translation							(3,718)		(3,718)
Conversion of Series C preferred stock into common stock			$ (39)	$ 1	38
Conversion of Series C preferred stock into common stock, shares			(39,500)
Conversion of Series C preferred stock into common stock, shares				686
Dividends declared for Series C preferred stock						(176,844)			(176,844)
Issuance of common stock as payment for Series C preferred stock dividends payable				$ 6	459,062				459,068
Issuance of common stock as payment for Series C preferred stock dividends payable, shares				5,842
Issuance of common stock in exchange for consulting, professional and other services				$ 2	76,820				76,822
Issuance of common stock in exchange for consulting, professional and other services, shares				2,486
Conversion of note principal and accrued interest into common stock				$ 192	4,124,808				4,125,000
Conversion of note principal and accrued interest into common stock, shares				191,912
Recognition of beneficial conversion features related to notes payable					363,329				363,329
Stock based compensation expense related to stock options					48,142				48,142
Ending balance, value at Mar. 31, 2022			$ 9,361	$ 635	94,935,772	(69,957,641)	(34,473)	2,602,501	27,556,155
Ending balance, shares at Mar. 31, 2022			9,360,809	634,557
Beginning balance, value at Dec. 31, 2022			$ 9,282	$ 2,515	101,726,355	(83,472,412)	(166,129)	2,248,237	20,347,848
Beginning balance, shares at Dec. 31, 2022			9,281,809	2,514,858
Net loss						(2,144,295)		(86,030)	(2,230,325)
Change in foreign currency translation							29,636		29,636
Conversion of Series C preferred stock into common stock
Dividends declared for Series C preferred stock						(185,636)			(185,636)
Issuance of common stock in connection with sales made under private offerings				$ 100	2,448,259				2,448,359
Issuance of common stock in connection with sales made under private offerings, shares				100,000
Issuance of common stock in connection with the exercise of common stock purchase warrants				$ 4,702	7,607				12,309
Issuance of common stock in connection with the exercise of common stock purchase warrants, shares				4,701,485
Issuance of common stock in exchange for consulting, professional and other services				$ 23	31,945				31,968
Issuance of common stock in exchange for consulting, professional and other services, shares				23,334
Issuance of common stock purchase warrants as consideration for waiver of a financing covenant					350,038				350,038
Stock based compensation expense related to stock options					44,822				44,822
Ending balance, value at Mar. 31, 2023			$ 9,282	$ 7,340	$ 104,609,026	$ (85,802,343)	$ (136,493)	$ 2,162,207	$ 20,849,019
Ending balance, shares at Mar. 31, 2023			9,281,809	7,339,677

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (2,230,325)	$ (3,456,445)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	206,834	130,830
Amortization of debt discount	5,206	1,621,313
Amortization of right-of-use assets	72,869	82,644
Provision for doubtful accounts	7,149	0
Common stock purchase warrants issued for financing costs	350,039	0
Common stock issued in exchange for fees and services	31,968	76,822
Retirement benefit cost	46,363	0
Stock based compensation	44,822	48,142
Loss on disposal of property and equipment	559	0
Changes in operating assets and liabilities:
Accounts receivable	328,687	201,832
Inventory	(6,768)	(4,172)
Prepaid expenses and other current assets	(15,441)	(46,245)
Other assets	(107,977)	(118,594)
Accounts payable	(469,751)	(70,542)
Accrued liabilities	(29,489)	39,250
Advanced payments and deferred revenues	(130,862)	(8,273)
Income taxes payable and other noncurrent liabilities	(208,373)	(3,091)
Operating lease liabilities	(68,066)	(94,167)
Net cash used in operating activities	(2,172,556)	(1,600,696)
Cash flows from investing activities:
Purchase of property and equipment	(15,193)	(25,825)
Proceeds from the sale of property and equipment	4,688	0
Net cash used in investing activities	(10,505)	(25,825)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	2,448,359	0
Proceeds from exercise of common stock purchase warrants, net of issuance costs	12,309	0
Proceeds from issuance of convertible notes	0	1,444,000
Repayments of convertible notes	(40,089)	(35,968)
Repayments of loans payable	0	(31,510)
Net cash provided by financing activities	2,420,579	1,376,522
Effect of exchange rates on cash and cash equivalents	28,061	(8,834)
Net increase (decrease) in cash and cash equivalents	265,579	(258,833)
Cash and cash equivalents at beginning of period	3,871,176	6,530,161
Cash and cash equivalents at end of period	4,136,755	6,271,328
Supplemental disclosure of cash flow information:
Cash paid for interest	6,917	11,796
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash investing and financing activities:
Common stock issued to reduce dividends payable to Series C preferred stockholders	0	459,068
Common stock warrants issued in connection with convertible promissory notes	0	363,329
Conversion of note principal and accrued interest into common stock	0	4,125,000
Dividends payable to Series C preferred stockholders	$ 185,636	$ 176,844

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2023
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. The Company is focused on (i) 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, (ii) creating, acquiring, and developing the commercial potential of Kids & Family entertainment properties and associated business opportunities, (iii) providing world class animation services, and (iv) offering protective web filtering solutions to block unwanted or inappropriate content. The Company operates its business through the following five operating subsidiaries: · Grom Social, Inc. (“Grom Social”), incorporated in the State of Florida on March 5, 2012, operates the Company’s social media network designed for children under the age of 13 years. · TD Holdings Limited (“TD Holdings”), incorporated in Hong Kong on September 15, 2005, operates through its two wholly-owned subsidiaries: (i) Top Draw Animation Hong Kong Limited, a Hong Kong corporation, and (ii) Top Draw Animation, Inc. (“Top Draw” or “TDA”), a Philippines corporation. The group’s principal service-based activities are the production of animated films and televisions series. · Grom Educational Services, Inc. (“GES”), incorporated in the State of Florida on January 17, 2017, operates the Company’s web filtering services provided to schools and government agencies. · Grom Nutritional Services, Inc. (“GNS”), incorporated in the State of Florida on April 19, 2017, intends to market and distribute nutritional supplements to children. It has been nonoperational since its inception. · Curiosity Ink Media, LLC (“Curiosity”), organized in the State of Delaware on January 9, 2017, develops, acquires, builds, grows and maximizes the short, mid and long-term commercial potential of kids and family entertainment properties and associated business opportunities. The Company owns 100% of each of Grom Social, TD Holdings, GES and GNS, and 80% of Curiosity. The Company is headquartered in Boca Raton, Florida with offices in Los Angeles, California; Salt Lake City, Utah; Norcross, Georgia; and Manila, Philippines.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	2. GOING CONCERN The condensed consolidated financial statements of the Company have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business. Based on current operating levels, the Company will need to raise additional funds by selling additional equity or incurring debt. On a consolidated basis, the Company has incurred significant operating losses since its inception. As of March 31, 2023, The Company has an accumulated deficit of $ 85.8 2.2 The Company has funded its operations primarily through sales of its common stock in public markets, proceeds from the exercise of warrants to purchase common stock, and the sale of convertible notes. Future capital requirements will depend on many factors, including the (i) rate of revenue growth, (ii) expansion of sales and marketing activities, (iii) timing and extent of spending on content development efforts, and (iv) market acceptance of the Company’s content, products and services. The Company’s management intends to raise additional funds through the issuance of equity securities or debt to enable the Company to meet its obligations for the twelve-month period. However, there can be no assurance that, in the event the Company requires additional financing, such financing will be available at terms acceptable to the Company, if at all. Failure to generate sufficient cash flows from operations and/or raise additional capital could have a material adverse effect on the Company’s ability to achieve its intended business objectives. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months from the date of this report. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 experienced significant disruptions to its business and operations due to circumstances related to COVID-19, and delays caused government-imposed quarantines, office closings and travel restrictions, which affected 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 88% of the Company’s total revenues on a consolidated basis, was forced to close its offices for significant periods of time from March 2020 through December 2021. In response to the outbreak and business disruption, the Company 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 also implemented a range of actions aimed at temporarily reducing costs and preserving liquidity. In January 2022, the Company started to recall artists and employees to return to the studio. It is currently operating at 50% seat capacity. The outbreak 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. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. For the three months ended March 31, 2023, the condensed consolidated financial statements include the accounts of the Company and its operating subsidiaries Grom Social, TD Holdings, GES, GNS, and Curiosity. The Company recognizes noncontrolling interest related to its less-than-wholly-owned subsidiary, Curiosity, as equity in the consolidated financial statements separate from the parent entity’s equity. The net loss attributable to noncontrolling interest is included in net loss in the condensed consolidated statements of operations and comprehensive loss. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary for a fair presentation of financial position and results of operations. All such adjustments, which include intercompany balances and transactions 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, 2022, as presented in the Company’s Annual Report on Form 10-K filed on April 17, 2023 with the SEC. Certain amounts for the prior year period have been reclassified to conform to current year’s presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The most significant estimates relate to revenue recognition, valuation of accounts receivable, goodwill and other long-lived assets, 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. Update to Significant Accounting Policies There have been no new or material changes to the significant accounting policies discussed in the Company’s audited financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC on April 17, 2023, that are of significance, or potential significance, to the Company.

REVENUES

REVENUES	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUES	4. REVENUES The Company recognizes revenue from contracts with customers in accordance with FASB ASC 606. The Company’s main types of revenue contracts consists of the following: Animation Revenue 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 aftereffects. 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. Web Filtering Revenue Web filtering revenue from subscription sales is recognized on a pro-rata basis over the subscription period. Typically, a subscriber purchases a computer appliance 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 appliance 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. Produced and Licensed Content Revenue Produced and licensed content revenues are generated from the licensing of internally-produced films and episodic television programs. Each individual film or television series episode delivered represents a separate performance obligation and revenues are recognized when the episode is made available to the licensee for exhibition. For license agreements containing multiple deliverables, revenues are allocated based on the relative standalone selling price of each film or episode of a television series, which is based on licenses for comparable films or series within the marketplace. Agreements to license programming are often long term, with collection terms ranging from one to five years. The advanced billing component for licensed content is initially recorded as deferred revenue and subsequently recognized as revenue upon completion of the performance obligation in accordance with the terms of licensing agreement. Publishing Revenue The Company has engaged the services of a third-party entity to manage the printing, publishing and distribution of the Company’s publishing content. In accordance with the terms agreed with the third party, the Company’s revenue is recognized as 50% of revenue from sales per title after the third-party vendor earns back the costs to develop, author, publish, market, promote and distribute each title, inclusive of any royalties owed to rights holders, following a six month period in market to allow for returns. Publishing revenues are eligible for recognition upon the completion of a six-month sales period to provide for any potential returns and notification from the third-party entity that it has earned back all of its related publishing costs. Other Revenue Other revenue corresponds to ecommerce sales, commercial services, and subscription and advertising revenue from the Grom Social mobile application. The following table depicts the disaggregated revenue listed above within the Sales caption in the condensed consolidated statements of operations: Schedule of disaggregated revenue Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Animation $ 1,057,669 $ 1,048,613 Web Filtering 90,810 182,244 Publishing 10,101 – Other 41,063 268 Total Sales $ 1,199,643 $ 1,231,125 The following table sets forth the components of the Company’s accounts receivable and advanced payments and deferred revenues at March 31, 2023, and December 31, 2022: Schedule of accounts receivable March 31, 2023 December 31, 2022 Billed accounts receivable $ 317,619 $ 607,524 Unbilled accounts receivable 553,900 592,932 Allowance for doubtful accounts (45,125 ) (38,226 ) Total accounts receivable, net $ 826,394 $ 1,162,230 Total advanced payments and deferred revenues $ 445,477 $ 576,338 During the three months ended March 31, 2023, the Company had three customers that accounted for 76.3 65.9 At March 31, 2023, the Company had three customers that accounted for 78.9 73.6 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.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORY	5. INVENTORY Inventory consists of costs incurred to produce animated content for third party customers. Costs incurred to produce the animated content for customers, which include direct production costs, production overhead and supplies are recognized as work-in-progress inventory. As animated content is completed in accordance with the terms stated by the customer, inventory is classified as finished products and subsequently recognized as cost of services as animated content is accepted by and available to the customer. Carrying amounts of animated content are recorded at the lower of cost or net realizable value. Cost is determined using a weighted average cost method for direct production costs, productions overhead and supplies used for completing animation projects. As of March 31, 2023 and December 31, 2022, the Company’s inventory totaled $ 99,070 92,303 85,830 85,324 13,240 6,979

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	6. PROPERTY AND EQUIPMENT The following table sets forth the components of the Company’s property and equipment at March 31, 2023 and December 31, 2022: Schedule of property and equipment March 31, 2023 December 31, 2022 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Computers, software and office equipment $ 2,554,434 $ (2,470,748 ) $ 83,686 $ 2,774,308 $ (2,651,872 ) $ 122,436 Machinery and equipment 177,916 (173,642 ) 4,274 189,641 (182,180 ) 7,461 Vehicles 11,995 (11,995 ) – 41,112 (35,504 ) 5,608 Furniture and fixtures 383,379 (369,159 ) 14,220 409,996 (391,783 ) 18,213 Leasehold improvements 1,100,013 (1,018,647 ) 81,366 1,172,501 (1,065,148 ) 107,353 Total fixed assets 4,227,737 (4,044,191 ) 183,546 4,587,558 (4,326,487 ) 261,071 Capital assets not subject to depreciation: Construction in progress – – – 24,605 – 24,605 Total fixed assets $ 4,227,737 $ (4,044,191 ) $ 183,546 $ 4,612,163 $ (4,326,487 ) $ 285,676 For the three months ended March 31, 2023 and 2022, the Company recorded depreciation expense of $ 69,876 92,674

OTHER ASSETS

OTHER ASSETS	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER ASSETS	7. OTHER ASSETS The following table sets forth the components of the Company’s other assets at March 31, 2023 and December 31, 2022: Schedule Of Other Assets March 31, 2023 December 31, 2022 Capitalized website development costs $ 963,664 $ 1,057,312 Prepublication costs 166,112 164,042 Produced and licensed content costs 436,549 325,966 Deposits 74,278 72,027 Other noncurrent assets – 7,731 Total other assets $ 1,640,603 $ 1,627,078 Capitalized Website Development Costs The Company capitalizes certain costs associated with the development of its Santa.com website after the preliminary project stage is complete and until the website is ready for its intended use. Planning and operating costs are expensed as incurred. Capitalization begins when the preliminary project stage is complete, project plan is defined, functionalities are determined and internal and external resources are identified. Qualified costs incurred during the operating stage of our software applications relating to upgrades and enhancements are capitalized to the extent it is probable that they will result in added functionality, while costs that cannot be separated between maintenance of, and minor upgrades and enhancements to the websites are expensed as incurred. Capitalized website costs are amortized on a straight-line basis over their estimated useful life of three years beginning with the time when it is ready for intended use. Amounts amortized are presented through cost of sales. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Prepublication Costs Prepublication costs include costs incurred to create and develop the art, prepress, editorial, digital conversion and other content required for the creation of the master copy of a book or other media. Prepublication costs are amortized on a straight-line basis over a two- to five-year period based on expected future revenue. The Company regularly reviews the recoverability of the capitalized costs based on expected future revenues. Produced and Licensed Content Costs Produced and licensed content costs include capitalizable direct costs, production overhead, interest and development costs and are stated at the lower of cost, less accumulated amortization, or fair value. Marketing, distribution and general and administrative costs are expensed as incurred. Film, television and direct to consumers through streaming services production and residual costs are expensed over the product life cycle based upon the ratio of the current period’s revenues to estimated remaining total revenues (Ultimate Revenues) for each production. For film productions and direct to consumer services, Ultimate Revenues include revenues from all sources that will be earned within ten years from the date of the initial release. For television series, Ultimate Revenues include revenues that will be earned within ten years from delivery of the first episode, or if still in production, five years from delivery of the most recent episode, if later. Costs of film, television and direct to consumer productions are subject to regular recoverability assessments, which compare the estimated fair values with the unamortized costs. The Company bases these fair value measurements on the Company’s assumptions about how market participants would price the assets at the balance sheet date, which may be different than the amounts ultimately realized in future periods. The amount by which the unamortized costs of film and television productions exceed their estimated fair values is written off. Costs for projects that have been abandoned are written off. Projects that have not been set for production within three years are also written off unless management has committed to a plan to proceed with the project and is actively working on and funding the project. The following tables set forth the components of the Company’s capitalized costs at March 31, 2023 and December 31, 2022: Schedule of capitalized cost March 31, 2023 December 31, 2022 Gross Carrying Value Accumulated Net Book Gross Carrying Value Accumulated Net Book Prepublication costs $ 168,398 $ (2,286 ) $ 166,112 $ 165,524 $ (1,482 ) $ 164,042 Produced and licensed content costs 436,549 – 436,549 325,966 – 325,966 Capitalized website development costs 1,123,772 (160,108 ) 963,664 1,123,772 (66,460 ) 1,057,312 Total capitalized costs $ 1,728,720 $ (162,394 ) $ 1,566,325 $ 1,615,262 $ (67,942 ) $ 1,547,320 For the three months ended March 31, 2023 and 2022, the Company recorded amortization expense of $ 94,452 0

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
Leases
LEASES	8. LEASES The Company has entered into operating leases primarily for office space. These leases have original terms which range from two years to six years, and often include one or more options to renew or in the case of equipment rental, to purchase the equipment. During the three months ended March 31, 2023, the Company did no The future minimum payment obligations at March 31, 2023 for operating leases are as follows: Schedule of future minimum lease payment Remainder of 2023 $ 287,404 2024 280,112 2025 281,663 2026 228,798 2027 240,239 Thereafter – Total future minimum payment obligations 1,318,216 Less: Imputed interest (289,669 ) Present value of lease liabilities $ 1,028,547 These operating leases are listed as separate line items on the Company's Consolidated Balance Sheets 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 Consolidated Balance Sheets. 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 right-of-use assets and related lease liabilities are as follows: Schedule of operating right-of-use assets Three Months Ended Cash paid for operating lease liabilities $ 95,300 Weighted-average remaining lease term in years 3.1 Weighted-average discount rate 10 For the three months ended March 31, 2023 and 2022, the Company recorded rent expenses related to lease obligations of $ 100,102 105,340

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONS	9. BUSINESS COMBINATIONS Acquisition of Curiosity Ink Media, LLC On July 29, 2021, the Company entered into a membership interest purchase agreement (the “Purchase Agreement”) with Curiosity Ink Media LLC, a Delaware limited liability company (“Curiosity”) and the holders of all of Curiosity’s outstanding membership interests (the “Sellers”), for the purchase of 80 On August 19, 2021, pursuant to the terms of the Purchase Agreement, the Company consummated the Acquisition and acquired the Purchased Interests in consideration for the issuance to the Sellers of an aggregate of 1,771,883 Pursuant to the Purchase Agreement, the Company also paid $ 400,000 8 278,000 The Curiosity Note is convertible into shares of common stock of the Company at a conversion price of $3.28 per share but may not be converted if, after giving effect to such conversion, the noteholder and its affiliates would beneficially own in excess of 9.99% of the Company’s outstanding common stock. The Curiosity Note may be prepaid at any time, in whole or in part. The Curiosity Note is subordinate to the Company’s senior indebtedness. The Sellers also have the ability to earn up to $17,500,000 (payable 50% in cash and 50% in stock) upon the achievement of certain performance milestones as of December 31, 2025. In addition to the tangible assets, goodwill totaling $ 14,271,969 Schedule of consideration paid Consideration Paid: Cash consideration $ 400,000 Common stock issued 5,421,962 Convertible notes 278,000 Contingent purchase consideration 5,586,493 Total consideration $ 11,686,455 The amounts in the table below represent the allocation of the purchase price. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Cash and cash equivalents $ 26,408 Inventory 65,734 Produced and licensed content cost 187,920 Goodwill and intangible assets 14,271,969 Accounts payable (113,462 ) Noncontrolling interest (2,752,114 ) Total identifiable assets acquired, and liabilities assumed $ 11,686,455 During the year ended December 31, 2022, the Company finalized the purchase price allocation, during the permissible measurement period, and obtained new fair value information for certain identifiable intangible assets related to its acquisition of Curiosity. The revised purchase price allocation decreased goodwill by $ 468,426 468,426 The following table summarizes the individually identifiable intangible assets subsequently recognized: Schedule of identifiable intangible assets Licensing agreements $ 341,728 Books and stories content 126,698 Total identifiable intangible assets $ 468,426

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	10. 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 March 31, 2023 and December 31, 2022, the carrying amount of the Company’s goodwill was $ 10,567,484 The following table sets forth the components of the Company’s intangible assets at March 31, 2023 and December 31, 2022: Schedule of intangible assets March 31, 2023 December 31, 2022 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 $ 1,526,282 $ (1,030,241 ) $ 496,041 $ 1,526,282 $ (992,083 ) $ 534,199 Licensing agreement 19.60 341,728 (28,989 ) 312,739 341,728 (24,641 ) 317,087 Subtotal 1,868,010 (1,059,230 ) 808,780 1,868,010 (1,016,724 ) 851,286 Intangible assets not subject to amortization: Books and stories content 126,698 – 126,698 126,698 – 126,698 Trade names 4,386,247 – 4,386,247 4,386,247 – 4,386,247 Total intangible assets $ 6,380,955 $ (1,059,230 ) $ 5,321,725 $ 6,380,955 $ (1,016,724 ) $ 5,364,231 For the three months ended March 31, 2023 and 2022, the Company recorded amortization expense of $ 42,505 38,157 The following table provides information regarding estimated remaining amortization expense for intangible assets subject to amortization for each of the following years ending December 31: Schedule of amortization Remainder of 2023 $ 127,516 2024 170,022 2025 170,022 2026 93,708 2027 17,394 Thereafter 230,118 Total remaining intangible assets subject to amortization $ 808,780

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	11. ACCRUED LIABILITIES The following table sets forth the components of the Company’s accrued liabilities at March 31, 2023 and December 31, 2022: Schedule accrued liabilities March 31, 2023 December 31, 2022 Executive and employee compensation $ 92,981 $ 102,151 Interest on convertible notes and promissory notes 92,457 84,292 Other accrued expenses and liabilities 117,425 192,511 Total accrued liabilities $ 302,863 $ 378,954

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND PAYABLES	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND PAYABLES	12. RELATED PARTY TRANSACTIONS AND PAYABLES Darren Marks’s Family The Company has engaged the family of Darren Marks, its Chief Executive Officer, to assist in the development of the Grom Social mobile app. These individuals create and produce original short form content focusing on social responsibility, anti-bullying, digital citizenship, unique blogs, and special events. Sarah Marks, the wife of Mr. Marks, and Zach Marks, Luke Marks, Jack Marks, Dawson Marks, Caroline Marks and Victoria Marks, each Mr. Marks’s children, are, or have been, employed by or independently contracted with the Company. As of March 31, 2023, Zach and Luke Marks were employed by Grom Social as its Founder and Content Creator, and Content Coordinator, respectively, and receive annual salaries of $ 103,000 30,000 For the three months ended March 31, 2023 and 2022, the Marks family was paid a total of $ 33,250 30,000 Compensation for services provided by members of the Marks family is expected to continue for the foreseeable future. Liabilities Due to Executive Officers and Directors On July 11, 2018, our director Dr. Thomas Rutherford loaned the Company $ 50,000 10 August 11, 2018 1,233 As of March 31, 2023 and December 31, 2022, the aggregate related party payables balance was $ 73,616 72,383 23,616 22,383

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLAN	13. EMPLOYEE BENEFIT PLAN The Company’s subsidiary, Top Draw Animation, has an unfunded, non-contributory defined benefit plan covering its permanent employees. Under the existing regulatory framework, the Company is required to pay eligible employees at least the minimum regulatory benefit upon retirement, which provides a retirement benefit equal to 22.5 days’ pay for every year of credited service, subject to age and service requirements. The regulatory benefit is paid in a lump sum upon retirement. The existing regulatory framework does not require minimum funding of the plan. Retirement benefit expenses and liabilities are determined in accordance with an actuarial study made for the plan utilizing the net interest approach which disaggregates the defined benefit cost into the following components: service costs (cost of services received); net interest (financing effect of paying for benefits in advance or in arrears); and remeasurements (period-to-period fluctuations in the amounts of defined benefit obligations and plan assets). Under the net interest approach, service cost and net interest on the defined benefit liability (asset) are both recognized in the statement of operations, while remeasurements of the defined benefit liability (asset) are recognized in other comprehensive income. Remeasurements recognized in other comprehensive income shall not be reclassified to profit or loss in a subsequent period. The amount of the defined benefit liability reported under other noncurrent liabilities in the consolidated balance sheet is determined as follows: Defined benefit liability March 31, 2023 December 31, 2022 Benefit obligation $ 226,602 $ 434,974 Plan assets – – Total $ 226,602 $ 434,974 The components of the accumulated benefit cost to be recognized under selling, general and administrative expense in consolidated statement of operations are the service cost (current service cost, past service cost or credit and settlement gains or losses) and net interest expense on the net defined benefit liability: Components of accumulated benefit cost March 31, 2023 March 31, 2022 Current service cost $ 56,630 $ 2,471 Net interest expense 5,374 – Total $ 59,004 $ 2,471 The change in the accumulated benefit cost in the consolidated balance sheet for the three months ended March 31, 2023 is as follows: Schedule of changes in accumulated benefit cost 2023 Balance, January 1 $ 434,974 Foreign currency translation 8,185 Expense recognized in other comprehensive income 59,004 Remeasurement on actuarial gain (loss) recognized (48,683 ) Contributions paid (226,878 ) Balance, March 31 $ 226,602 The cumulative amount of actuarial gains recognized in other comprehensive income for the three months ended March 31, 2023 and 2022 is as follows: Schedule of actuarial gains 2023 2022 Balance, January 1 $ (37,303 ) $ 60,518 Foreign currency translation – – Actuarial gain (loss) (46,307 ) – Balance, March 31 83,610 60,518 Tax effect 20,903 (12,439 ) Cumulative actuarial gain (loss), net of tax $ (62,707 ) $ 48,079 The assumptions used to determine retirement benefits for the three months ended March 31, 2023 are as follows: Assumption used to determine retirement benefits March 31, 2023 Discount rate 6.44% Salary increase rate 2.00%

CONVERTIBLE NOTES

CONVERTIBLE NOTES	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
CONVERTIBLE NOTES	14. CONVERTIBLE NOTES The following tables set forth the components of the Company’s convertible notes as of March 31, 2023 and December 31, 2022: Schedule of convertible debt March 31, 2023 December 31, 8% Unsecured Convertible Note (Curiosity) $ 278,000 $ 278,000 12% Senior Convertible Notes with Original Issuance Discounts (OID Notes) 75,000 75,000 12% Senior Secured Convertible Notes (TDH Secured Notes) 171,219 204,907 12% Senior Secured Convertible Notes (Additional Secured Notes) 32,518 38,932 Loan discounts (19,957 ) (25,164 ) Total convertible notes, net 536,780 571,664 Less: current portion of convertible notes, net (536,780 ) (503,465 ) Convertible notes, net $ – $ 68,199 8% Unsecured Convertible Notes – Curiosity On July 29, 2021, the Company entered into a membership interest purchase agreement with Curiosity and the holders of all of Curiosity’s outstanding membership interests, for the purchase of 80% of Curiosity’s outstanding membership interests from the sellers. Pursuant to the purchase agreement, the Company issued 8% eighteen-month convertible promissory notes in the aggregate principal amount $ 278,000 98.40 As of March 31, 2023, the principal balance of the Curiosity note was $ 278,000 10% Senior Secured Convertible Note with Original Issuance Discount (L1) On September 14, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with L1 Capital Global Master Fund (“L1”) pursuant to which it issued (i) a 10% original issue discount senior secured convertible note in the principal amount of $ 4,400,000 5 27,109 126.00 3,960,000 On October 20, 2021, the Company and L1 entered into an amended and restated purchase agreement which increased the amount of the Second Tranche Financing from $1,500,000 to $ 6,000,000 During the three months ended March 31, 2022, the Company issued an aggregate 191,192 4,125,000 As of March 31, 2023, the principal balance of L1 Note was $ 0 10% Senior Secured Convertible Note with Original Issuance Discount (L1– Second Tranche) On January 20, 2022 (the “Second Tranche Closing”), the Company and LI Capital closed on the Second Tranche of the offering, resulting in the issuance of (i) a $ 1,750,000 10 10,123 126.00 1,575,000 175,000 In connection with the Second Tranche Closing, the Company paid to EF Hutton a fee of $ 126,000 The Second Tranche Note is convertible into common stock of the Company at a rate of $126.00 per share (the “Conversion Price”) into 13,889 shares of common stock (the “Second Tranche Conversion Shares”) and, is repayable in equal monthly installments of $111,563 commencing on the date that the SEC declares a registration statement with respect to the resale of such shares effective, with all remaining amounts due on July 20, 2023. The Second Tranche Note is repayable by payment of cash, or, at the discretion of the Company and if the below listed “Equity Conditions” are met, by issuance of shares of the common stock at a price of 95% of the lowest daily VWAP during the ten-trading day period prior to the respective monthly redemption dates (with a floor of $57.60) multiplied by 102% of the amount due on such date. In the event that the ten-trading day VWAP drops below $57.60 the Company will have the right to pay in stock at such ten-trading day VWAP with any shortfall paid in cash. The Conversion Price may be adjusted in the event of dilutive issuances but in no event to less than $16.20 (the “Monthly Conversion Price”). The Company’s right to make monthly payments in stock in lieu of cash for the Second Tranche Note is conditioned on certain conditions (the “Equity Conditions”). The Equity Conditions required to be met each month in order to redeem the Second Tranche Note with stock in lieu of a monthly cash payment, among other conditions set forth therein, include without limitation, that a registration statement be in effect with respect to the resale of the shares issuable upon conversion or redemption of the Second Tranche Note (or, that an exemption under Rule 144 is available), that no default be in effect, that the average daily trading volume of the Company’s common stock would have to be at least $ 550,000 Other provisions of the Second Tranche Note, which is similar in terms to the First Tranche Note, include that the Second Tranche Note Conversion Price is subject to full anti-dilution price protections in the event of financings that are below the Conversion Price with a floor of $ 16.20 In the event of an Event of Default as defined in the notes, if the stock price is below the Conversion Price at the time of default and only for so long as a default is continuing, the Second Tranche Notes would be convertible at a rate of 80% of the lowest VWAP in the ten prior trading days, provided, that if the default is cured the default conversion rate elevates back to the normal Conversion Price As part of the Second Tranche Closing, the Company issued Second Tranche Warrants exercisable for five years from the date of issuance, at $ 126.00 The Second Tranche Note continues to be subject to (i) the repayment and performance guarantees by the subsidiaries of the Company pursuant to a subsidiary guaranty and, (ii) the Security Agreement pursuant to which the LI Capital was granted a security interest in all of the assets of the Company and certain of its subsidiaries, each as entered into in connection with the First Tranche closing on September 14, 2021. During the year ended December 31, 2022, the Company issued an aggregate 108,025 shares of common stock and repaid $1,146,901 in cash to L1 upon the conversion of $1,750,000 of outstanding principal. As of March 31, 2023, the principal balance of the Second Tranche Notes was $ 0 10% Secured Convertible Notes with Original Issuance Discounts (“OID Notes”) During the year ended December 31, 2017, the Company issued a series of secured, convertible notes with original issuance discounts to accredited investors. The notes were issued with original issuance discounts of 10.0%, bear interest at a rate of 10% per annum (payable semiannually in cash), and carry a two-year term with a fixed conversion price of $748.80. As of March 31, 2023, the remaining principal balance of these notes was $ 25,000 During the year ended December 31, 2018, the Company issued a series of secured, convertible notes with original issuance discounts to accredited investors. The notes were issued with original issuance discounts of 20.0%, bear interest at a rate of 10% per annum (payable semiannually in cash), and carry a two-year term with a fixed conversion price of $480.00. As of March 31, 2023, the remaining principal balance of these notes was $ 50,000 As of March 31, 2023, the aggregate principal balance of these notes was $ 75,000 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 March 16, 2024 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 $96.00 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 $96.00. Accordingly, an aggregate of 6,250 420,000 As of March 31, 2023, the principal balance of the was $ 171,219 and the remaining balance on the associated loan discounts was $ 16,771 . 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 12 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 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 $96.00 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 $96.00. Accordingly, an aggregate of 2,208 148,000 As of March 31, 2023, the principal balance of the was $ 32,518 and the remaining balance on the associated loan discounts 3,186 . Future Minimum Principal Payments The remaining principal repayments based upon the maturity dates of the Company’s borrowings for each of the next five years are as follows: Schedule of future debt maturity payments Remainder of 2023 $ 480,651 2024 76,086 Total future minimum principal payments $ 556,737

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	15. INCOME TAXES In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon currently known facts and circumstances and applies that rate to its year-to-date earnings or losses. The Company’s effective tax rate is based on expected income and statutory tax rates and takes into consideration permanent differences between financial statement and tax return income applicable to the Company in the various jurisdictions in which the Company operates. The effect of discrete items, such as changes in estimates, changes in rates or tax status, and unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the result of new judicial interpretations or regulatory or tax law changes. The Company’s interim effective tax rate, inclusive of discrete items, for the three-month periods ended March 31, 2023 and 2022 was 0

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	16. STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 25,000,000 0.001 Series A Preferred Stock As of March 31, 2023 and December 31, 2022, the Company had no Series B Preferred Stock As of March 31, 2023 and December 31, 2022, the Company had no Series C Preferred Stock On May 20, 2021, the Company filed with the Secretary of State of the State of Florida a Certificate of Designation of Preferences, Rights and Limitations of Series C Stock designating 10,000,000 shares as Series C Preferred Stock (the “Series C Stock”). The Series C 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 6-month anniversary of the issuance of the shares of Series C Preferred Stock, convert such shares into common stock at a conversion rate of $57.60 per share. In addition, the Company may, at any time after the issuance of the shares, convert any or all of the outstanding shares of Series C Preferred Stock at a conversion rate of $57.60 per share. Each share of Series C Stock entitles the holder to 1.5625 votes for each share of Series C Stock. The consent of the holders of at least two-thirds of the shares of Series C Stock is required for the amendment to any of the terms of the Series C Stock, to create any additional class of stock unless the stock ranks junior to the Series C Stock, to make any distribution or dividend on any securities ranking junior to the Series C 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 C Stock at the rate of 8% per annum of the stated value of $1.00 per share and are payable in arrears quarterly commencing 90 days from issuance. The dividend shall be payable in shares of common stock (a “PIK Dividend”) and are be due and payable on the date on which such PIK Dividend was declared. Upon a liquidation, dissolution or winding up of the Company, the holders of the Series C 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 C Stock upon a liquidation until Series C stockholders receive their liquidation preference. The holders of 66 2/3% of the then outstanding shares of Series C 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 January 24, 2022, the Company issued 686 39,500 As of March 31, 2023 and December 31, 2022, the Company had 9,281,809 For the three months ended March 31, 2023, the Company declared cumulative dividends totaling $ 185,636 Common Stock The Company is authorized to issue 500,000,000 0.001 7,339,677 2,514,858 Reverse Stock Split On October 4, 2022, the Board and shareholders approved the granting of authority to the Board to amend the Company’s articles of incorporation to effect a reverse stock split of the issued and outstanding shares of its common stock, by a ratio of no less than 1-for-2 and no more than 1-for-30, with the exact ratio to be determined by the Board in its sole discretion, and with such reverse stock split to be effective at such time and date, if at all, as determined by the Board in its sole discretion. On December 9, 2022, the Board effected a 1-for-30 PIPE Offering and Related Waiver On January 25, 2023, the Company consummated a private investment in public equity financing (the “PIPE Offering”) pursuant to the terms of the Securities Purchase Agreement, dated January 25, 2023, as amended (the “2023 SPA”), by and between it and the purchaser named therein (the “2023 SPA Selling Stockholder”) and issued (i) 100,000 1,327,434 2,323,010 1,227,434 2.26 In connection with the PIPE Offering, the Company entered into a waiver agreement (the “Waiver”) with L1 Capital Global Opportunities Master Fund (“L1”) waiving certain provisions of the Securities Purchase Agreement, dated as of September 14, 2021 (the “2021 SPA”), by and between it and L1. Pursuant to the terms of the Waiver, L1 waived certain provisions of the 2021 SPA and in consideration thereof, the Company (i) issued 150,000 50,000 The Purchase Warrants are immediately exercisable for $ 2.26 0.01 Pursuant to the 2023 SPA, the Company is obligated to hold a special stockholders’ meeting no later than 60 days following the date of the 2023 SPA to solicit the approval of the issuance of the shares of common stock, Warrants and the shares of common stock underlying the Warrants in compliance with the rules of the Nasdaq Stock Market (without regard to any limitations on exercise set forth in the Purchase Warrant Agreement or the prefunded warrant agreement (the “Prefunded Warrant Agreement”). On March 27, 2023, the Company held a virtual special meeting of stockholders, and at the meeting, the issuance of the securities in compliance with the rules of the Nasdaq Stock Market has been approved. In connection with the PIPE Offering, the Company entered into a Registration Rights Agreement with the Purchasers, dated January 25, 2023 (the “Registration Rights Agreement”). The Registration Rights Agreement provides that we shall file a registration statement covering the resale of all of the Registrable Securities (as defined in the Registration Rights Agreement) with the SEC no later than the 7th calendar day following the date of the Registration Rights Agreement, and have the registration statement declared effective by the SEC as promptly as possible after the filing thereof, but in any event no later than the 30th calendar day following the date of the Registration Rights Agreement, or in the event of a “full review” by the SEC, the 45th day following the date of the Registration Rights Agreement. On February 2, 2023, the Company filed the registration statement, and on February 9, 2023, the registration statement was declared effective by the SEC. Common Stock Issued in Exchange for Consulting, Professional and Other Services During the three months ended March 31, 2023, the Company issued 23,334 31,968 During the three months ended March 31, 2022, the Company issued 2,486 76,822 Common Stock Issued in Connection with the Conversion of Note Principal and Accrued Interest During the three months ended March 31 2022, the Company issued 191,192 4,125,000 Common Stock Issued in Connection with Series C Stock Dividends During the three months ended March 31, 2022, the Company issued 5,842 459,068 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 March 31, 2023 and December 31, 2022. All warrants are exercisable for a period of three to five years from the date of issuance: Schedule of warrants Number of Warrants Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Yrs.) Balance January 1, 2022 141,572 $ 132.00 1.75 Warrants issued 4,280,355 3.20 Warrants exercised (279,069 ) – Warrants forfeited (5,678 ) – December 31, 2022 4,137,180 7.29 4.89 Warrants issued 3,812,944 2.26 Warrants exercised (5,770,379 ) – Warrants forfeited – – Balance March 31, 2023 2,179,745 $ 10.66 4.73 On January 31, 2023, in connection with the PIPE Offering described above, the Company issued 1,327,434 2,323,010 2.26 0.85 The Purchase Warrants were valued using the Black-Scholes option pricing model with the following average assumptions: the Company’s stock price on the date of the issuance ($ 2.15 0 176.6 3.6 1,387,429 On January 31, 2023, the Company also issued 150,000 262,500 2.15 0 176.6 3.6 1 350,039 During the three months ended March 31, 2023, the Company issued 1,262,787 1,262,787 12,309 During the three months ended March 31, 2023, the Company also issued 3,438,698 4,507,592 As of March 31, 2023, the outstanding stock purchase warrants had an aggregate intrinsic value of $ 0 Stock Options The following table represents all outstanding and exercisable stock options as of March 31, 2023. Schedule of options Year Issued Options Options Options Vested Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) 2013 8,058 (869 ) 7,189 7,189 $ 230.40 0.47 2018 62 – 62 62 748.80 0.08 2021 6,950 – 6,950 2,317 89.40 3.33 Total 15,070 (869 ) 14,201 9,568 $ 163.68 1.86 During the three months ended March 31, 2023 and 2022, the Company recorded $ 44,822 48,142 As of March 31, 2023, the total unrecognized cost of stock-based compensation related to stock options was $ 124,130 1.3 As of March 31, 2023, the outstanding stock options had an aggregate intrinsic value of $ 0

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	17. COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company and its subsidiaries are subject to various pending and potential legal actions, arbitration proceedings, claims, investigations, examinations, regulatory proceedings, information gathering requests, subpoenas, inquiries and matters relating to compliance with laws and regulations (collectively, legal proceedings). Based on the Company’s current knowledge, and taking into consideration its legal expenses, the Company does not believe it is a party to, nor are any of its subsidiaries the subject of, any legal proceeding that would have a material adverse effect on the Company’s consolidated financial condition or liquidity. See also Note 8 (“Leases”). See also Note 9 (“Business Combinations”). See also Note 15 (“Income Taxes”).

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	18. SUBSEQUENT EVENTS On April 14, 2023, the Company issued 493,000 shares of common stock upon the cashless exercise of 580,000 purchase warrants. On April 21, 2023, the Company repaid $50,000 of note principal to Dr. Thomas Rutherford, one of its directors. On April 26, 2023, the Company issued 223,125 shares of common stock upon the cashless exercise of 262,500 purchase warrants. On April 28, 2023, the Company issued 493,000 shares of common stock upon the cashless exercise of 580,000 purchase warrants.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
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 experienced significant disruptions to its business and operations due to circumstances related to COVID-19, and delays caused government-imposed quarantines, office closings and travel restrictions, which affected 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 88% of the Company’s total revenues on a consolidated basis, was forced to close its offices for significant periods of time from March 2020 through December 2021. In response to the outbreak and business disruption, the Company 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 also implemented a range of actions aimed at temporarily reducing costs and preserving liquidity. In January 2022, the Company started to recall artists and employees to return to the studio. It is currently operating at 50% seat capacity. The outbreak 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.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conjunction with the instructions to Form 10-Q of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted. For the three months ended March 31, 2023, the condensed consolidated financial statements include the accounts of the Company and its operating subsidiaries Grom Social, TD Holdings, GES, GNS, and Curiosity. The Company recognizes noncontrolling interest related to its less-than-wholly-owned subsidiary, Curiosity, as equity in the consolidated financial statements separate from the parent entity’s equity. The net loss attributable to noncontrolling interest is included in net loss in the condensed consolidated statements of operations and comprehensive loss. These condensed consolidated financial statements include all of the adjustments, which in the opinion of management are necessary for a fair presentation of financial position and results of operations. All such adjustments, which include intercompany balances and transactions 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, 2022, as presented in the Company’s Annual Report on Form 10-K filed on April 17, 2023 with the SEC. Certain amounts for the prior year period have been reclassified to conform to current year’s presentation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The most significant estimates relate to revenue recognition, valuation of accounts receivable, goodwill and other long-lived assets, 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.
Update to Significant Accounting Policies	Update to Significant Accounting Policies There have been no new or material changes to the significant accounting policies discussed in the Company’s audited financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC on April 17, 2023, that are of significance, or potential significance, to the Company.

REVENUES (Tables)

REVENUES (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenue	Schedule of disaggregated revenue Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Animation $ 1,057,669 $ 1,048,613 Web Filtering 90,810 182,244 Publishing 10,101 – Other 41,063 268 Total Sales $ 1,199,643 $ 1,231,125
Schedule of accounts receivable	Schedule of accounts receivable March 31, 2023 December 31, 2022 Billed accounts receivable $ 317,619 $ 607,524 Unbilled accounts receivable 553,900 592,932 Allowance for doubtful accounts (45,125 ) (38,226 ) Total accounts receivable, net $ 826,394 $ 1,162,230 Total advanced payments and deferred revenues $ 445,477 $ 576,338

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment March 31, 2023 December 31, 2022 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Computers, software and office equipment $ 2,554,434 $ (2,470,748 ) $ 83,686 $ 2,774,308 $ (2,651,872 ) $ 122,436 Machinery and equipment 177,916 (173,642 ) 4,274 189,641 (182,180 ) 7,461 Vehicles 11,995 (11,995 ) – 41,112 (35,504 ) 5,608 Furniture and fixtures 383,379 (369,159 ) 14,220 409,996 (391,783 ) 18,213 Leasehold improvements 1,100,013 (1,018,647 ) 81,366 1,172,501 (1,065,148 ) 107,353 Total fixed assets 4,227,737 (4,044,191 ) 183,546 4,587,558 (4,326,487 ) 261,071 Capital assets not subject to depreciation: Construction in progress – – – 24,605 – 24,605 Total fixed assets $ 4,227,737 $ (4,044,191 ) $ 183,546 $ 4,612,163 $ (4,326,487 ) $ 285,676

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule Of Other Assets	Schedule Of Other Assets March 31, 2023 December 31, 2022 Capitalized website development costs $ 963,664 $ 1,057,312 Prepublication costs 166,112 164,042 Produced and licensed content costs 436,549 325,966 Deposits 74,278 72,027 Other noncurrent assets – 7,731 Total other assets $ 1,640,603 $ 1,627,078
Schedule of capitalized cost	Schedule of capitalized cost March 31, 2023 December 31, 2022 Gross Carrying Value Accumulated Net Book Gross Carrying Value Accumulated Net Book Prepublication costs $ 168,398 $ (2,286 ) $ 166,112 $ 165,524 $ (1,482 ) $ 164,042 Produced and licensed content costs 436,549 – 436,549 325,966 – 325,966 Capitalized website development costs 1,123,772 (160,108 ) 963,664 1,123,772 (66,460 ) 1,057,312 Total capitalized costs $ 1,728,720 $ (162,394 ) $ 1,566,325 $ 1,615,262 $ (67,942 ) $ 1,547,320

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
Schedule of future minimum lease payment	Schedule of future minimum lease payment Remainder of 2023 $ 287,404 2024 280,112 2025 281,663 2026 228,798 2027 240,239 Thereafter – Total future minimum payment obligations 1,318,216 Less: Imputed interest (289,669 ) Present value of lease liabilities $ 1,028,547
Schedule of operating right-of-use assets	Schedule of operating right-of-use assets Three Months Ended Cash paid for operating lease liabilities $ 95,300 Weighted-average remaining lease term in years 3.1 Weighted-average discount rate 10

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of consideration paid	Schedule of consideration paid Consideration Paid: Cash consideration $ 400,000 Common stock issued 5,421,962 Convertible notes 278,000 Contingent purchase consideration 5,586,493 Total consideration $ 11,686,455
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Cash and cash equivalents $ 26,408 Inventory 65,734 Produced and licensed content cost 187,920 Goodwill and intangible assets 14,271,969 Accounts payable (113,462 ) Noncontrolling interest (2,752,114 ) Total identifiable assets acquired, and liabilities assumed $ 11,686,455
Schedule of identifiable intangible assets	Schedule of identifiable intangible assets Licensing agreements $ 341,728 Books and stories content 126,698 Total identifiable intangible assets $ 468,426

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Schedule of intangible assets March 31, 2023 December 31, 2022 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 $ 1,526,282 $ (1,030,241 ) $ 496,041 $ 1,526,282 $ (992,083 ) $ 534,199 Licensing agreement 19.60 341,728 (28,989 ) 312,739 341,728 (24,641 ) 317,087 Subtotal 1,868,010 (1,059,230 ) 808,780 1,868,010 (1,016,724 ) 851,286 Intangible assets not subject to amortization: Books and stories content 126,698 – 126,698 126,698 – 126,698 Trade names 4,386,247 – 4,386,247 4,386,247 – 4,386,247 Total intangible assets $ 6,380,955 $ (1,059,230 ) $ 5,321,725 $ 6,380,955 $ (1,016,724 ) $ 5,364,231
Schedule of amortization	Schedule of amortization Remainder of 2023 $ 127,516 2024 170,022 2025 170,022 2026 93,708 2027 17,394 Thereafter 230,118 Total remaining intangible assets subject to amortization $ 808,780

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule accrued liabilities	Schedule accrued liabilities March 31, 2023 December 31, 2022 Executive and employee compensation $ 92,981 $ 102,151 Interest on convertible notes and promissory notes 92,457 84,292 Other accrued expenses and liabilities 117,425 192,511 Total accrued liabilities $ 302,863 $ 378,954

EMPLOYEE BENEFIT PLAN (Tables)

EMPLOYEE BENEFIT PLAN (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Defined benefit liability	Defined benefit liability March 31, 2023 December 31, 2022 Benefit obligation $ 226,602 $ 434,974 Plan assets – – Total $ 226,602 $ 434,974
Components of accumulated benefit cost	Components of accumulated benefit cost March 31, 2023 March 31, 2022 Current service cost $ 56,630 $ 2,471 Net interest expense 5,374 – Total $ 59,004 $ 2,471
Schedule of changes in accumulated benefit cost	Schedule of changes in accumulated benefit cost 2023 Balance, January 1 $ 434,974 Foreign currency translation 8,185 Expense recognized in other comprehensive income 59,004 Remeasurement on actuarial gain (loss) recognized (48,683 ) Contributions paid (226,878 ) Balance, March 31 $ 226,602
Schedule of actuarial gains	Schedule of actuarial gains 2023 2022 Balance, January 1 $ (37,303 ) $ 60,518 Foreign currency translation – – Actuarial gain (loss) (46,307 ) – Balance, March 31 83,610 60,518 Tax effect 20,903 (12,439 ) Cumulative actuarial gain (loss), net of tax $ (62,707 ) $ 48,079
Assumption used to determine retirement benefits	Assumption used to determine retirement benefits March 31, 2023 Discount rate 6.44% Salary increase rate 2.00%

CONVERTIBLE NOTES (Tables)

CONVERTIBLE NOTES (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of convertible debt	Schedule of convertible debt March 31, 2023 December 31, 8% Unsecured Convertible Note (Curiosity) $ 278,000 $ 278,000 12% Senior Convertible Notes with Original Issuance Discounts (OID Notes) 75,000 75,000 12% Senior Secured Convertible Notes (TDH Secured Notes) 171,219 204,907 12% Senior Secured Convertible Notes (Additional Secured Notes) 32,518 38,932 Loan discounts (19,957 ) (25,164 ) Total convertible notes, net 536,780 571,664 Less: current portion of convertible notes, net (536,780 ) (503,465 ) Convertible notes, net $ – $ 68,199
Schedule of future debt maturity payments	Schedule of future debt maturity payments Remainder of 2023 $ 480,651 2024 76,086 Total future minimum principal payments $ 556,737

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of warrants	Schedule of warrants Number of Warrants Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Yrs.) Balance January 1, 2022 141,572 $ 132.00 1.75 Warrants issued 4,280,355 3.20 Warrants exercised (279,069 ) – Warrants forfeited (5,678 ) – December 31, 2022 4,137,180 7.29 4.89 Warrants issued 3,812,944 2.26 Warrants exercised (5,770,379 ) – Warrants forfeited – – Balance March 31, 2023 2,179,745 $ 10.66 4.73
Schedule of options	Schedule of options Year Issued Options Options Options Vested Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) 2013 8,058 (869 ) 7,189 7,189 $ 230.40 0.47 2018 62 – 62 62 748.80 0.08 2021 6,950 – 6,950 2,317 89.40 3.33 Total 15,070 (869 ) 14,201 9,568 $ 163.68 1.86

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated Deficit	$ 85,802,343		$ 83,472,412
Net cash used in operating activities	$ 2,172,556	$ 1,600,696

REVENUES (Details - Revenue by

REVENUES (Details - Revenue by segment) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total Sales	$ 1,199,643	$ 1,231,125
Animation [Member]
Total Sales	1,057,669	1,048,613
Web Filtering [Member]
Total Sales	90,810	182,244
Publishing [Member]
Total Sales	10,101	0
Other Revenue [Member]
Total Sales	$ 41,063	$ 268

REVENUES (Details - Accounts Re

REVENUES (Details - Accounts Receivable) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Billed accounts receivable	$ 317,619	$ 607,524
Unbilled accounts receivable	553,900	592,932
Allowance for doubtful accounts	(45,125)	(38,226)
Total accounts receivable, net	826,394	1,162,230
Total advanced payments and deferred revenues	$ 445,477	$ 576,338

REVENUES (Details Narrative)

REVENUES (Details Narrative) - Customer Concentration Risk [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Three Customers [Member] | Revenue Benchmark [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage	76.30%	65.90%
Three Customers [Member] | Accounts Receivable [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage	78.90%
Two Customers [Member] | Accounts Receivable [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage			73.60%

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory, Net	$ 99,070	$ 92,303
Inventory work-in-progress	85,830	85,324
Inventory finished goods	$ 13,240	$ 6,979

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,227,737	$ 4,612,163
Accumulated depreciation	(4,044,191)	(4,326,487)
Property and equipment, net	183,546	285,676
Computers Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,554,434	2,774,308
Accumulated depreciation	(2,470,748)	(2,651,872)
Property and equipment, net	83,686	122,436
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	177,916	189,641
Accumulated depreciation	(173,642)	(182,180)
Property and equipment, net	4,274	7,461
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,995	41,112
Accumulated depreciation	(11,995)	(35,504)
Property and equipment, net	0	5,608
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	383,379	409,996
Accumulated depreciation	(369,159)	(391,783)
Property and equipment, net	14,220	18,213
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,100,013	1,172,501
Accumulated depreciation	(1,018,647)	(1,065,148)
Property and equipment, net	81,366	107,353
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	0	24,605
Accumulated depreciation	0	0
Property and equipment, net	$ 0	$ 24,605

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 69,876	$ 92,674

OTHER ASSETS (Details - Schedul

OTHER ASSETS (Details - Schedule of other assets) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized website development costs	$ 963,664	$ 1,057,312
Prepublication costs	166,112	164,042
Produced and licensed content costs	436,549	325,966
Deposits	74,278	72,027
Other noncurrent assets	0	7,731
Total other assets	$ 1,640,603	$ 1,627,078

OTHER ASSETS (Details - Sched_2

OTHER ASSETS (Details - Schedule of capitalized costs) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Website development costs	$ 1,728,720	$ 1,615,262
Accumulated Amortization	(162,394)	(67,942)
Net Book Value	1,566,325	1,547,320
Prepublication Costs [Member]
Property, Plant and Equipment [Line Items]
Website development costs	168,398	165,524
Accumulated Amortization	(2,286)	(1,482)
Net Book Value	166,112	164,042
Produced And Licensed Content [Member]
Property, Plant and Equipment [Line Items]
Website development costs	436,549	325,966
Accumulated Amortization	0	0
Net Book Value	436,549	325,966
Capitalized Website Development Costs [Member]
Property, Plant and Equipment [Line Items]
Website development costs	1,123,772	1,123,772
Accumulated Amortization	(160,108)	(66,460)
Net Book Value	$ 963,664	$ 1,057,312

OTHER ASSETS (Details Narrative

OTHER ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization expense	$ 94,452	$ 0

LEASES (Details - Future minimu

LEASES (Details - Future minimum payment obligations)	Mar. 31, 2023 USD ($)
Leases
Remainder of 2023	$ 287,404
2024	280,112
2025	281,663
2026	228,798
2027	240,239
Thereafter	0
Total future minimum payment obligations	1,318,216
Less: Imputed interest	(289,669)
Present value of lease liabilities	$ 1,028,547

LEASES (Details - Operating rig

LEASES (Details - Operating right-of-use assets and related lease liabilities)	3 Months Ended
	Mar. 31, 2023 USD ($)
Leases
Cash paid for operating lease liabilities	$ 95,300
Weighted-average remaining lease term (in years)	3 years 1 month 6 days
Weighted-average discount rate	10%

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases
Operating lease right of use assets	$ 0
Operating Lease, Expense	$ 100,102	$ 105,340

BUSINESS COMBINATIONS (Details

BUSINESS COMBINATIONS (Details - Consideration paid) - Curiosity Ink Media L L C [Member]	Aug. 19, 2021 USD ($) shares
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 400,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	5,421,962
Notes Issued	$ 278,000
Contingent purchase consideration	5,586,493
Business Combination, Consideration Transferred	$ 11,686,455

BUSINESS COMBINATIONS (Detail_2

BUSINESS COMBINATIONS (Details - Recognized identifiable assets and liabilities) - Curiosity Ink Media L L C [Member]	Aug. 19, 2021 USD ($)
Business Combination, Separately Recognized Transactions [Line Items]
Cash and cash equivalents	$ 26,408
Inventory	65,734
Produced and licensed content cost	187,920
Goodwill And Intangible Assets	14,271,969
Accounts payable	(113,462)
Noncontrolling interest	(2,752,114)
Total identifiable assets acquired, and liabilities assumed	$ 11,686,455

BUSINESS COMBINATIONS (Detail_3

BUSINESS COMBINATIONS (Details - Intangible assets)	Mar. 31, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	$ 468,426
Licensing Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	341,728
Books And Stories Content [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	$ 126,698

BUSINESS COMBINATIONS (Detail_4

BUSINESS COMBINATIONS (Details Narrative) - USD ($)		3 Months Ended
	Aug. 19, 2021	Mar. 31, 2023	Dec. 31, 2022	Jul. 29, 2021
Business Acquisition [Line Items]
Goodwill		$ 10,567,484	$ 10,567,484
Curiosity Ink Media [Member]
Business Acquisition [Line Items]
Stock issued for acquisition, shares	1,771,883
Long-Term Debt, Gross	$ 400,000
Debt Instrument, Interest Rate, Effective Percentage	8%
Note issued on acquisition	$ 278,000
Goodwill	$ 14,271,969
Decrease in goodwill		468,426
Increase in intangible assets		$ 468,426
Curiosity Ink Media [Member]
Business Acquisition [Line Items]
Purchase of outstanding interest percentage				80%

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details - Intangibles) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, gross	$ 1,868,010	$ 1,868,010
Accumulated amortization	(1,059,230)	(1,016,724)
Indefinite lived intangible asset	808,780	851,286
Total intangible assets	6,380,955	6,380,955
Total Accumulated Amortization	(1,059,230)	(1,016,724)
Total intangible assets	5,321,725	5,364,231
Books And Stories Content [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	0	0
Indefinite lived intangible asset	126,698	126,698
Indefinite-Lived Intangible Assets (Excluding Goodwill)	126,698	126,698
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	0	0
Indefinite lived intangible asset	4,386,247	4,386,247
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 4,386,247	4,386,247
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	10 years
Finite intangible assets, gross	$ 1,526,282	1,526,282
Accumulated amortization	(1,030,241)	(992,083)
Indefinite lived intangible asset	$ 496,041	534,199
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life	19 years 7 months 6 days
Finite intangible assets, gross	$ 341,728	341,728
Accumulated amortization	(28,989)	(24,641)
Indefinite lived intangible asset	$ 312,739	$ 317,087

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS (Details - Amortization schedule) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 127,516
2024	170,022
2025	170,022
2026	93,708
2027	17,394
Thereafter	230,118
Total remaining intangible assets subject to amortization	$ 808,780	$ 851,286

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 10,567,484		$ 10,567,484
Amortization of Intangible Assets	$ 42,505	$ 38,157

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Executive and employee compensation	$ 92,981	$ 102,151
Interest on convertible notes and promissory notes	92,457	84,292
Other accrued expenses and liabilities	117,425	192,511
Total accrued liabilities	$ 302,863	$ 378,954

RELATED PARTY TRANSACTIONS AN_2

RELATED PARTY TRANSACTIONS AND PAYABLES (Details Narrative) - USD ($)		3 Months Ended		12 Months Ended
	Jul. 11, 2018	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Zach Marks [Member]
Related Party Transaction [Line Items]
Annual salary				$ 103,000
Luke Marks [Member]
Related Party Transaction [Line Items]
Annual salary				30,000
Marks Family [Member]
Related Party Transaction [Line Items]
Annual salary		$ 33,250	$ 30,000
Rutherford [Member]
Related Party Transaction [Line Items]
Accounts payable, related parties	$ 50,000
Debt interest rate	10%
Maturity date	Aug. 11, 2018
Interest expense		1,233	$ 1,233
Executive Officers And Directors [Member]
Related Party Transaction [Line Items]
Accounts payable, related parties		73,616		72,383
Accounts payable, related parties		$ 23,616		$ 22,383

EMPLOYEE BENEFIT PLAN (Details

EMPLOYEE BENEFIT PLAN (Details - Defined benefit liability) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Benefit obligation	$ 226,602	$ 434,974
Plan assets	0	0
Total	$ 226,602	$ 434,974

EMPLOYEE BENEFIT PLAN (Detail_2

EMPLOYEE BENEFIT PLAN (Details - Accumulated benefit cost) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement Benefits [Abstract]
Current service cost	$ 56,630	$ 2,471
Net interest expense	5,374	0
Total	$ 59,004	$ 2,471

EMPLOYEE BENEFIT PLAN (Detail_3

EMPLOYEE BENEFIT PLAN (Details - Changes in accumulated benefit cost)	3 Months Ended
	Mar. 31, 2023 USD ($)
Retirement Benefits [Abstract]
Balance, January 1	$ 434,974
Foreign currency translation	8,185
Expense recognized in other comprehensive income	59,004
Remeasurement on actuarial gain (loss) recognized	(48,683)
Contributions paid	(226,878)
Balance, March 31	$ 226,602

EMPLOYEE BENEFIT PLAN (Detail_4

EMPLOYEE BENEFIT PLAN (Details - Actuarial gains) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Other comprehensive income (loss)	$ (136,493)		$ (166,129)
Top Draw Animation [Member]
Other comprehensive income (loss)	83,610	$ 60,518	$ (37,303)
Foreign currency translation	0	0
Actuarial gain (loss)	(46,307)	0
Tax effect	20,903	(12,439)
Actuarial gain (loss)	$ (62,707)	$ 48,079
Subsidiaries [Member]
Other comprehensive income (loss)				$ 60,518

EMPLOYEE BENEFIT PLAN (Detail_5

EMPLOYEE BENEFIT PLAN (Details - Assumptions)	Mar. 31, 2023
Retirement Benefits [Abstract]
Discount rate	6.44%
Salary increase rate	2%

CONVERTIBLE NOTES (Details - Co

CONVERTIBLE NOTES (Details - Convertible debentures) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Convertible Debt, Current	$ (536,780)	$ (503,465)
Convertible Debt, Noncurrent	0	68,199
Unsecured Convertible Notes Curiosity [Member]
Debt Instrument [Line Items]
Convertible debt, gross	278,000	278,000
Convertible Debentures [Member]
Debt Instrument [Line Items]
Convertible debt, gross	536,780	571,664
Debt Instrument, Unamortized Discount	(19,957)	(25,164)
Convertible Debentures [Member] | Secured Convertible Notes O I D [Member]
Debt Instrument [Line Items]
Convertible debt, gross	75,000	75,000
Convertible Debentures [Member] | Senior Secured Convertible T D H Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross	171,219	204,907
Convertible Debentures [Member] | Senior Secured Convertible Additional Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross	$ 32,518	$ 38,932

CONVERTIBLE NOTES (Details - De

CONVERTIBLE NOTES (Details - Debt maturities)	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
Remainder of 2023	$ 480,651
2024	76,086
Total future minimum principal payments	$ 556,737

CONVERTIBLE NOTES (Details Narr

CONVERTIBLE NOTES (Details Narrative) - USD ($)				1 Months Ended		3 Months Ended
	Oct. 20, 2021	Sep. 14, 2021	Jul. 29, 2021	Jan. 20, 2022	Mar. 16, 2020	Mar. 31, 2023	Mar. 31, 2022	Mar. 16, 2020	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 10.66			$ 7.29	$ 132
Proceeds from Convertible Debt						$ 0	$ 1,444,000
Original issue discount				$ 175,000
Debt Instrument, Face Amount						550,000
Original Tdh Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross						$ 126,000
Second Tranche [Member]
Debt Instrument [Line Items]
Conversion price						$ 126
First Tranche [Member]
Debt Instrument [Line Items]
Conversion price						$ 16.20
Unsecured Convertible Notes Curiosity [Member]
Debt Instrument [Line Items]
Convertible note						$ 278,000			$ 278,000
L 1 Capital Secured Note [Member]
Debt Instrument [Line Items]
Debt converted, shares issued							191,192
Debt Conversion, Original Debt, Amount						4,125,000
Senior Ten Percentage Secured Convertible Note With Original Issuance Discount L 1 [Member]
Debt Instrument [Line Items]
Convertible debt, gross						0	$ 0
Number of securities called by each warrant				10,123
Convertible note						0	$ 0
Senior Ten Percentage Secured Convertible Note With Original Issuance Discount L 1 [Member] | Second Tranche [Member]
Debt Instrument [Line Items]
Proceeds from Convertible Debt				$ 1,750,000
Secured 10 Conv Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross						25,000
Debt interest rate				10%
Secured Convertible Notes Issued 2018 [Member]
Debt Instrument [Line Items]
Convertible debt, gross						50,000
Secured Convertible Notes Issued 2017 And 2018 [Member]
Debt Instrument [Line Items]
Convertible note						75,000
Secured 12 Conv Notes [Member] | Orginal T D H Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross					$ 3,000,000			$ 3,000,000
Secured 12 Conv Notes [Member] | T D H Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross						171,219
Stock issued with debt, shares								6,250
Stock issued with debt, value								$ 420,000
Unamortized discount						16,771
Secured 12 Conv Notes [Member] | Additional Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross					$ 1,060,000	32,518		$ 1,060,000
Debt interest rate					12%			12%
Debt maturity date					Mar. 16, 2024
Stock issued with debt, shares								2,208
Stock issued with debt, value								$ 148,000
Unamortized discount						3,186
Purchase Agreement [Member] | Unsecured Convertible Notes Curiosity [Member]
Debt Instrument [Line Items]
Convertible debt, gross			$ 278,000
Conversion price			$ 98.40
Convertible debt, gross						$ 278,000
Securities Purchase Agreement [Member] | L 1 Capital Secured Note [Member]
Debt Instrument [Line Items]
Convertible debt, gross		$ 4,400,000
Warrants and Rights Outstanding, Term		5 years
Number of securities called by each warrant		27,109
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 126
Securities Purchase Agreement [Member] | L 1 Capital Secured Note [Member] | First Tranche Financing [Member]
Debt Instrument [Line Items]
Exchange shares value		$ 3,960,000
Securities Purchase Agreement [Member] | L 1 Capital Secured Note [Member] | Second Tranche Financing [Member]
Debt Instrument [Line Items]
Proceeds from Convertible Debt	$ 6,000,000
Securities Purchase Agreement [Member] | Senior Ten Percentage Secured Convertible Note With Original Issuance Discount L 1 [Member]
Debt Instrument [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 126
Securities Purchase Agreement [Member] | Senior Ten Percentage Secured Convertible Note With Original Issuance Discount L 1 [Member] | Second Tranche Financing [Member]
Debt Instrument [Line Items]
Exchange shares value				$ 1,575,000
Third Amendment [Member] | Secured 12 Conv Notes [Member] | Original Tdh Notes [Member]
Debt Instrument [Line Items]
Debt maturity date								Mar. 16, 2024

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	0%	0%

STOCKHOLDERS' EQUITY (Details -

STOCKHOLDERS' EQUITY (Details - Warrant activity) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Equity [Abstract]
Warrants outstanding, beginning balance	4,137,180	141,572
Weighted Average Exercise Price, Warrants outstanding, beginning balance	$ 7.29	$ 132
Average Remaining Contractual Term, Warrants outstanding	4 years 8 months 23 days	4 years 10 months 20 days	1 year 9 months
Warrants issued	3,812,944	4,280,355
Weighted Average Exercise Price, Warrants issued	$ 2.26	$ 3.20
Warrants exercised	(5,770,379)	(279,069)
Weighted Average Exercise Price, Warrants exercised	$ 0	$ 0
Warrants forfeited	0	(5,678)
Weighted Average Exercise Price, Warrants forfeited	$ 0	$ 0
Warrants outstanding, ending balance	2,179,745	4,137,180	141,572
Weighted Average Exercise Price, Warrants outstanding, ending balance	$ 10.66	$ 7.29	$ 132

STOCKHOLDERS' EQUITY (Details_2

STOCKHOLDERS' EQUITY (Details - Option Activity) - Equity Option [Member]	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	15,070
Options forfeited	(869)
Options outstanding	14,201
Vested options	9,568
Weighted average exercise price | $ / shares	$ 163.68
Weighted average remaining life	1 year 10 months 9 days
Options Issued 2013 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	8,058
Options forfeited	(869)
Options outstanding	7,189
Vested options	7,189
Weighted average exercise price | $ / shares	$ 230.40
Weighted average remaining life	5 months 19 days
Options Issued 2018 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	62
Options forfeited	0
Options outstanding	62
Vested options	62
Weighted average exercise price | $ / shares	$ 748.80
Weighted average remaining life	29 days
Options Issued 2021 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	6,950
Options forfeited	0
Options outstanding	6,950
Vested options	2,317
Weighted average exercise price | $ / shares	$ 89.40
Weighted average remaining life	3 years 3 months 29 days

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			1 Months Ended		3 Months Ended
	Jan. 24, 2022	Oct. 04, 2020	Jan. 31, 2023	Jan. 25, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, shares authorized					25,000,000
Preferred stock, par value					$ 0.001
Common stock, shares authorized					500,000,000		500,000,000
Common stock, par value					$ 0.001		$ 0.001
Common stock, shares issued					7,339,677		2,514,858
Common stock, shares outstanding					7,339,677		2,514,858
Reverse stock split		1-for-30
Warrant exericse price					$ 10.66		$ 7.29	$ 132
Stock issued for services, value					$ 31,968	$ 76,822
Stock price			$ 2.15		$ 2.15
Expected dividend yield			0%		0%
Volatility rate			176.60%		176.60%
Risk-free interest rate			3.60%		3.60%
Warrants fair value					$ 1,387,429
Expected term			1 year
Fair value of purchase warrant			$ 350,039
Intrinsic value					0
Stock based compensation expenses					44,822	$ 48,142
Uunrecognized cost of stock-based compensation					$ 124,130
Rrecognized weighted average period					1 year 3 months 18 days
Intrinsic value					$ 0
Warrant [Member]
Class of Stock [Line Items]
Warrant exericse price			$ 0.85
Warrant issued			1,327,434
Warrant purchase			2,323,010
Warrants exercisable			$ 2.26
Warrant 1 [Member]
Class of Stock [Line Items]
Warrant issued			150,000
Warrant purchase			262,500
Common Stock [Member]
Class of Stock [Line Items]
Conversion of Stock, Shares Issued						686
Stock issued for services, shares					23,334	2,486
Stock issued for services, value					$ 23	$ 2
Number of shares issued upon exercise, warrants					1,262,787
Number of shares issued other					3,438,698
Purchase warrants					4,507,592
Pre Funded Warrants [Member]
Class of Stock [Line Items]
Number of shares issued upon exercise, warrants					1,262,787
Number of shares issued upon exercise, value					$ 12,309
Conv Debt And Interest [Member]
Class of Stock [Line Items]
Issuance of common stock in connection with the amendment of terms of promissory notes, shares					191,192
Issuance of common stock in connection with the amendment of terms of promissory notes, value					$ 4,125,000
Contractors [Member]
Class of Stock [Line Items]
Stock issued for services, shares					23,334	2,486
Stock issued for services, value					$ 31,968	$ 76,822
Securities Purchase Agreement [Member] | L 1 Capital Global [Member]
Class of Stock [Line Items]
Number of shares purchase				150,000
Payment for fee				$ 50,000
Purchase Warrant Agreement [Member]
Class of Stock [Line Items]
Warrant exericse price				$ 0.01
Common Stocks [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Number of shares issued				100,000
Number of shares purchase				2,323,010
Warrants [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Number of shares issued				1,327,434
Number of shares purchase				1,227,434
Warrant purchase price				$ 2.26
Warrants [Member] | Purchase Warrant Agreement [Member]
Class of Stock [Line Items]
Warrant exericse price				$ 2.26
Series C Preferred Converted [Member]
Class of Stock [Line Items]
Conversion of Stock, Shares Issued	686
Conversion of Stock, Shares Converted	39,500
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized					10,000,000		10,000,000
Preferred stock, par value					$ 0.001		$ 0.001
Preferred stock, shares issued					0		0
Preferred stock, shares outstanding					0		0
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized					10,000,000		10,000,000
Preferred stock, par value					$ 0.001		$ 0.001
Preferred stock, shares issued					0		0
Preferred stock, shares outstanding					0		0
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized					10,000,000		10,000,000
Preferred stock, par value					$ 0.001		$ 0.001
Preferred stock, shares issued					9,281,809		9,281,809
Preferred stock, shares outstanding					9,281,809		9,281,809
Declared cumulative dividends					$ 185,636
Series C Preferred Stock Dividend [Member]
Class of Stock [Line Items]
Issuance Of Common Stock In Connection With Issuance Of Preferred Stock Dividend Shares					5,842
Issuance Of Common Stock In Connection With Issuance Of Preferred Stock Dividend Value					$ 459,068