Grom Social Enterprises (GROM) 10-Q 18 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
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		9,044,361
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 ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 2,211,658	$ 3,871,176
Accounts receivable, net	658,648	1,162,230
Inventory, net	87,040	92,303
Prepaid expenses and other current assets	632,582	605,497
Total current assets	3,589,928	5,731,206
Operating lease right of use assets	932,181	1,069,222
Property and equipment, net	122,541	285,676
Goodwill, net	10,567,484	10,567,484
Intangible assets, net	5,279,220	5,364,231
Other assets	1,570,432	1,627,078
Total assets	22,061,786	24,644,897
Current liabilities:
Accounts payable	659,124	839,679
Accrued liabilities	292,521	378,954
Dividends payable	743,071	371,799
Advanced payments and deferred revenues	374,295	576,338
Convertible notes payable, net – current	500,696	503,465
Related party payables	0	50,000
Lease liabilities – current	232,913	269,681
Total current liabilities	2,802,620	2,989,916
Convertible notes payable, net of loan discounts	0	68,199
Lease liabilities	713,220	803,958
Other noncurrent liabilities	233,433	434,976
Total liabilities	3,749,273	4,297,049
Commitments and contingencies (Note 16)
Stockholders' Equity:
Common stock, $0.001 par value. 500,000,000 shares authorized; 9,044,361 and 2,514,858 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	9,044	2,515
Additional paid-in capital	104,652,143	101,726,355
Accumulated deficit	(88,202,102)	(83,472,412)
Accumulated other comprehensive loss	(168,267)	(166,129)
Total Grom Social Enterprises, Inc. stockholders' equity	16,300,100	18,099,611
Noncontrolling interests	2,012,413	2,248,237
Total stockholders' equity	18,312,513	20,347,848
Total liabilities and equity	22,061,786	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	Jun. 30, 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	9,044,361	2,514,858
Common stock, shares outstanding	9,044,361	2,514,858
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Sales	$ 956,498	$ 1,139,582	$ 2,156,141	$ 2,370,707
Cost of goods sold	730,200	947,459	1,389,706	1,864,408
Gross profit	226,298	192,123	766,435	506,299
Operating expenses:
Depreciation and amortization	152,008	64,163	305,198	128,613
Selling, general and administrative	2,061,738	1,778,696	3,937,098	3,473,515
Professional fees	338,395	299,941	615,315	704,007
Total operating expenses	2,552,141	2,142,800	4,857,611	4,306,135
Loss from operations	(2,325,843)	(1,950,677)	(4,091,176)	(3,799,836)
Other income (expense)
Interest income (expense), net	(20,311)	(1,314,508)	(501,089)	(2,945,530)
Loss on settlement of derivative liabilities	0	(39,624)	0	(39,624)
Unrealized gain on change in fair value of derivative liabilities	0	57,124	0	57,124
Other gains (losses)	(17,762)	48,305	(1,976)	72,041
Total other income (expense)	(38,073)	(1,248,703)	(503,065)	(2,855,989)
Loss before income taxes	(2,363,916)	(3,199,380)	(4,594,241)	(6,655,825)
Provision for income taxes (benefit)	0	0	0	0
Net loss	(2,363,916)	(3,199,380)	(4,594,241)	(6,655,825)
(Loss) attributable to noncontrolling interests	(149,794)	(91,025)	(235,824)	(170,863)
Net loss attributable to Grom Social Enterprises, Inc. stockholders	(2,214,122)	(3,108,355)	(4,358,417)	(6,484,962)
Dividends to Series C preferred stockholders	185,637	187,216	371,273	364,060
Net loss attributable to Grom Social Enterprises, Inc. common stockholders	(2,399,759)	(3,295,571)	(4,729,690)	(6,849,022)
Comprehensive loss:
Foreign currency translation adjustment	(31,774)	(53,303)	(2,138)	(57,021)
Comprehensive loss	(2,395,690)	(3,252,683)	(4,596,379)	(6,712,846)
Comprehensive loss attributable to noncontrolling interests	(149,794)	(91,025)	(235,824)	(170,863)
Comprehensive loss attributable to Grom Social Enterprises, Inc. common stockholders	$ (2,245,896)	$ (3,161,658)	$ (4,360,555)	$ (6,541,983)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Earnings Per Share, Basic	$ (0.27)	$ (5.25)	$ (0.67)	$ (12.51)
Earnings Per Share, Diluted	$ (0.27)	$ (5.25)	$ (0.67)	$ (12.51)
Weighted Average Number of Shares Outstanding, Basic	8,911,657	627,736	7,110,731	547,681
Weighted Average Number of Shares Outstanding, Diluted	8,911,657	627,736	7,110,731	547,681

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	$ 0	$ 0	$ 9,400	$ 434	$ 89,863,573	$ (66,404,190)	$ (30,755)	$ 2,682,339	$ 26,120,801
Beginning balance, shares at Dec. 31, 2021	0	0	9,400,309	433,631
Net loss						(6,484,962)		(170,863)	(6,655,825)
Change in foreign currency translation							(57,021)		(57,021)
Dividends declared for Series C preferred stock						(364,060)			(364,060)
Issuance of common stock as payment for Series C preferred stock dividends payable				$ 12	646,511				646,523
Issuance of common stock as payment for Series C preferred stock dividends payable, shares				11,737
Issuance of common stock in exchange for consulting, professional and other services				$ 4	95,478				95,482
Issuance of common stock in exchange for consulting, professional and other services, shares				3,950
Conversion of note principal and accrued interest into common stock				$ 220	4,574,779				4,574,999
Conversion of note principal and accrued interest into common stock, shares				219,690
Stock based compensation expense related to stock options					137,383				137,383
Conversion of Series C preferred stock into common stock			$ (39)	$ 1	38	0	0	0	0
Conversion of Series C preferred stock into common stock, shares			(39,500)	686
Recognition of beneficial conversion features related to notes payable					363,329				363,329
Ending balance, value at Jun. 30, 2022	$ 0	$ 0	$ 9,361	$ 671	95,681,091	(73,253,212)	(87,776)	2,511,476	24,861,611
Ending balance, shares at Jun. 30, 2022	0	0	9,360,809	669,694
Beginning balance, value at Mar. 31, 2022	$ 0	$ 0	$ 9,361	$ 636	94,935,770	(69,957,641)	(34,473)	2,602,501	27,556,154
Beginning balance, shares at Mar. 31, 2022	0	0	9,360,809	634,557
Net loss						(3,108,355)		(91,025)	(3,199,380)
Change in foreign currency translation							(53,303)		(53,303)
Dividends declared for Series C preferred stock						(187,216)			(187,216)
Issuance of common stock as payment for Series C preferred stock dividends payable				$ 6	187,449				187,455
Issuance of common stock as payment for Series C preferred stock dividends payable, shares				5,895
Issuance of common stock in exchange for consulting, professional and other services				$ 1	18,659				18,660
Issuance of common stock in exchange for consulting, professional and other services, shares				1,464
Conversion of note principal and accrued interest into common stock				$ 28	449,972				450,000
Conversion of note principal and accrued interest into common stock, shares				27,778
Stock based compensation expense related to stock options					89,241				89,241
Ending balance, value at Jun. 30, 2022	$ 0	$ 0	$ 9,361	$ 671	95,681,091	(73,253,212)	(87,776)	2,511,476	24,861,611
Ending balance, shares at Jun. 30, 2022	0	0	9,360,809	669,694
Beginning balance, value at Dec. 31, 2022	$ 0	$ 0	$ 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	0	0	9,281,809	2,514,858
Net loss						(4,358,417)		(235,824)	(4,594,241)
Change in foreign currency translation							(2,138)		(2,138)
Dividends declared for Series C preferred stock						(371,273)			(371,273)
Issuance of common stock in connection with sales made under private offerings				100	2,448,259				2,448,359
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
Stock based compensation expense related to stock options
Issuance of common stock in connection with the exercise of common stock purchase warrants, shares				6,406,169
Conversion of Series C preferred stock into common stock
Issuance of common stock in connection with sales made under private offerings, shares				100,000
Issuance of common stock purchase warrants as consideration for waiver of a financing covenant					350,038				350,038
Issuance of common stock in connection with the exercise of common stock purchase warrants				6,406	5,903				12,309
Stock based compensation expense related to stock options					89,643				89,643
Ending balance, value at Jun. 30, 2023	$ 0	$ 0	$ 9,282	$ 9,044	104,652,143	(88,202,102)	(168,267)	2,012,413	18,312,513
Ending balance, shares at Jun. 30, 2023	0	0	9,281,809	9,044,361
Beginning balance, value at Mar. 31, 2023	$ 0	$ 0	$ 9,282	$ 7,340	104,609,026	(85,802,343)	(136,493)	2,162,207	20,849,019
Beginning balance, shares at Mar. 31, 2023	0	0	9,281,809	7,339,677
Net loss						(2,214,122)		(149,794)	(2,363,916)
Change in foreign currency translation							(31,774)		(31,774)
Dividends declared for Series C preferred stock						(185,637)			(185,637)
Stock based compensation expense related to stock options					44,821				44,821
Issuance of common stock in connection with the exercise of common stock purchase warrants				1,704	(1,704)
Ending balance, value at Jun. 30, 2023	$ 0	$ 0	$ 9,282	$ 9,044	$ 104,652,143	$ (88,202,102)	$ (168,267)	$ 2,012,413	$ 18,312,513
Ending balance, shares at Jun. 30, 2023	0	0	9,281,809	9,044,361

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (4,594,241)	$ (6,655,825)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	402,349	265,804
Amortization of debt discount	10,413	1,852,816
Amortization of right-of-use assets	72,869	190,117
Provision for doubtful accounts	6,075	0
Common stock issued for financing costs	350,038	0
Common stock issued in exchange for fees and services	31,968	95,482
Derivative expense	0	1,052,350
Retirement benefit cost	18,201	0
Stock based compensation	89,643	137,383
Loss on disposal of property and equipment	549	2,296
Loss on settlement of derivative liability	0	39,624
Unrealized gain on change in fair value of derivative liabilities	0	(57,124)
Changes in operating assets and liabilities:
Accounts receivable	497,508	287,341
Inventory	5,262	(83,237)
Prepaid expenses and other current assets	(27,086)	(174,109)
Other assets	(132,258)	(291,170)
Accounts payable	(229,653)	(180,381)
Accrued liabilities	(39,832)	127,903
Advanced payments and deferred revenues	(203,043)	208,716
Income taxes payable and other noncurrent liabilities	(201,542)	(3,974)
Operating lease liabilities	(68,066)	(197,243)
Net cash used in operating activities	(4,010,846)	(3,383,231)
Cash flows from investing activities:
Purchase of property and equipment	(16,822)	(47,377)
Proceeds from the sale of property and equipment	4,601	14,069
Net cash used in investing activities	(12,221)	(33,308)
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	(81,380)	(72,623)
Repayments of loans payable	0	(34,846)
Repayments of related party payables	(50,000)	0
Settlement of derivative liabilities	0	(295,539)
Net cash provided by financing activities	2,329,288	1,040,992
Effect of exchange rates on cash and cash equivalents	34,263	20,149
Net decrease in cash and cash equivalents	(1,659,516)	(2,355,398)
Cash and cash equivalents at beginning of period	3,871,174	6,530,161
Cash and cash equivalents at end of period	2,211,658	4,174,763
Supplemental disclosure of cash flow information:
Cash paid for interest	12,619	21,780
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	646,523
Common stock warrants issued in connection with convertible promissory notes	0	363,329
Conversion of note principal and accrued interest into common stock	0	4,574,999
Dividends payable to Series C preferred stockholders	371,273	187,216
Operating lease right-of-use assets obtained in exchange for lease liabilities	$ 0	$ 80,478

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	1. NATURE OF OPERATIONS Grom Social Enterprises, Inc. (the “Company” or “Grom”), was incorporated in the State of Florida under the name “Illumination America, Inc.” Grom is a media, technology and entertainment company that focuses 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 conducts its business through the following subsidiaries: · Grom Social, Inc. (“Grom Social”), incorporated in the State of Florida on March 5, 2012, operates Grom’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, (“Top Draw HK”), and (ii) Top Draw Animation, Inc., a Philippines corporation, (“Top Draw Philippines”). The group’s principal activity is the production of animated films and television series. · Grom Educational Services, Inc. (“GES”), incorporated in the State of Florida on January 17, 2017, operates Grom’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. GNS has been nonoperational since its inception. · Curiosity Ink Media, LLC (“CIM”), organized in the State of Delaware on January 5, 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. Grom owns 100% of each of Grom Social, TD Holdings, GES and GNS, and 80% of CIM.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 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 June 30, 2023, the Company has an accumulated deficit of $ 88.2 4.0 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	6 Months Ended
	Jun. 30, 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 significantly affected 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 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 86.9% 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. The Company has recalled artists and employees to return to the studio, which is currently operating at 41% seat capacity. Approximately 37% of the studio’s employees and contractors currently work from home. While restrictions have eased, the virus may continue to mutate and 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 virus, 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 and six months ended June 30, 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 the 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 the 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 to a fair presentation of financial position and results of operations. All such adjustments, which includes 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. Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with FASB ASC 260, Earnings per Share which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method, and convertible preferred stock and convertible debt using the if-converted method. These potentially dilutive shares include 5,266 161,143 9,504 174,235 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	6 Months Ended
	Jun. 30, 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 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 television programs. Licensed internally-produced films and television programming, each individual film or 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 months 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 June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Animation $ 815,148 $ 1,025,966 $ 1,872,817 $ 2,074,579 Web Filtering 116,574 113,472 207,384 295,716 Publishing – – 10,101 – Other 24,776 144 65,839 412 Total Sales $ 956,498 $ 1,139,582 $ 2,156,141 $ 2,370,707 The following table sets forth the components of the Company’s accounts receivable and advanced payments and deferred revenues at June 30, 2023, and December 31, 2022: Schedule of accounts receivable June 30, 2023 December 31, 2022 Billed accounts receivable $ 171,721 $ 607,524 Unbilled accounts receivable 531,228 592,932 Allowance for doubtful accounts (44,301 ) (38,226 ) Total accounts receivable, net $ 658,648 $ 1,162,230 Total advanced payments and deferred revenues $ 374,295 $ 576,338 During the three and six months ended June 30, 2023, the Company had two and three customers, respectively, that accounted for 73.9 57.3 78.1 81.7 At June 30, 2023, the Company had two customers that accounted for 79.2 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	6 Months Ended
	Jun. 30, 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 to 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 June 30, 2023 and December 31, 2022, the Company’s inventory totaled $ 87,040 92,303 85,382 85,324 1,658 6,979

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 2022: Schedule of property and equipment June 30, 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 $ 2,510,394 $ (2,467,440 ) $ 42,954 $ 2,774,308 $ (2,651,872 ) $ 122,436 Machinery and equipment 174,666 (171,835 ) 2,831 189,641 (182,180 ) 7,461 Vehicles 11,776 (11,776 ) – 41,112 (35,504 ) 5,608 Furniture and fixtures 376,834 (365,765 ) 11,069 409,996 (391,783 ) 18,213 Leasehold improvements 1,079,920 (1,014,233 ) 65,687 1,172,501 (1,065,148 ) 107,353 Total fixed assets 4,153,590 (4,031,049 ) 122,541 4,587,558 (4,326,487 ) 261,071 Capital assets not subject to depreciation: Construction in progress – – – 24,605 – 24,605 Total fixed assets $ 4,153,590 $ (4,031,049 ) $ 122,541 $ 4,612,163 $ (4,326,487 ) $ 285,676 For the three months ended June 30, 2023 and 2022, the Company recorded depreciation expense of $ 58,559 80,373 128,435 173,047

OTHER ASSETS

OTHER ASSETS	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 2022: Schedule Of Other Assets June 30, 2023 December 31, 2022 Capitalized website development costs $ 870,017 $ 1,057,312 Prepublication costs 174,545 164,042 Produced and licensed content costs 452,949 325,966 Deposits 72,921 72,027 Other noncurrent assets – 7,731 Total other assets $ 1,570,432 $ 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 June 30, 2023 and December 31, 2022: Schedule of capitalized cost June 30, 2023 December 31, 2022 Gross Carrying Value Accumulated Net Book Gross Carrying Value Accumulated Net Book Prepublication costs $ 177,635 $ (3,090 ) $ 174,545 $ 165,524 $ (1,482 ) $ 164,042 Produced and licensed content costs 452,949 – 452,949 325,966 – 325,966 Capitalized website development costs 1,123,772 (253,755 ) 870,017 1,123,772 (66,460 ) 1,057,312 Total capitalized costs $ 1,754,356 $ (256,845 ) $ 1,497,511 $ 1,615,262 $ (67,942 ) $ 1,547,320 For the three months ended June 30, 2023 and 2022, the Company recorded amortization expense of $ 94,451 499 188,903 499

LEASES

LEASES	6 Months Ended
	Jun. 30, 2023
Leases
LEASES	8. LEASES The Company has entered into operating leases primarily for office space. These leases have 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 six months ended June 30, 2023, the Company did no The following table presents the future minimum payment obligations and aggregate present value of lease liabilities for operating leases as of June 30, 2023: Schedule of future minimum lease payment Remainder of 2023 $ 189,580 2024 275,894 2025 277,235 2026 225,200 2027 236,461 Thereafter – Total future lease payments 1,204,370 Less: Imputed interest (258,237 ) Present value of lease liabilities $ 946,133 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 Six Months Ended Cash paid for operating lease liabilities $ 190,600 Weighted-average remaining lease term in years 2.6 Weighted-average discount rate 10 For the three months ended June 30, 2023 and 2022, the Company recorded rent expenses related to lease obligations of $ 100,102 115,292 200,204 220,632

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	9. 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. The following table sets forth the changes in the carrying amount of the Company’s goodwill as of June 30, 2023 and December 31, 2022: Schedule of goodwill Balance, January 1, 2022 $ 22,376,025 Measurement Period Adjustment (468,426 ) Impairment charge (11,340,115 ) Balance, December 31, 2022 10,567,484 Impairments and other adjustments – Balance, June 30, 2023 $ 10,567,484 At December 31, 2022, the Company performed its annual impairment tests as prescribed by ASC 350 on the carrying value of its goodwill and recorded aggregate impairment charges of $ 11,340,115 6,202,888 5,137,227 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: Summary of changes in intangible assets Licensing agreements $ 341,728 Books and stories content 126,698 Total identifiable intangible assets $ 468,426 At June 30, 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 June 30, 2023 and December 31, 2022: Schedule of intangible assets June 30, 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 $ (1,068,397 ) $ 457,885 $ 1,526,282 $ (992,083 ) $ 534,199 Licensing agreement 19.60 341,728 (33,338 ) 308,390 341,728 (24,641 ) 317,087 Subtotal 1,868,010 (1,101,735 ) 766,275 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 $ (1,101,735 ) $ 5,279,220 $ 6,380,955 $ (1,016,724 ) $ 5,364,231 For the three months ended June 30, 2023 and 2022, the Company recorded amortization expense of $ 42,505 80,373 85,011 173,047 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 $ 85,011 2024 170,022 2025 170,022 2026 93,708 2027 17,394 Thereafter 230,118 Total remaining intangible assets subject to amortization $ 766,275

ACCRUED LIABILITIES

ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	10. ACCRUED LIABILITIES The following table sets forth the components of the Company’s accrued liabilities at June 30, 2023 and December 31, 2022: Schedule accrued liabilities June 30, 2023 December 31, 2022 Executive and employee compensation $ 115,671 $ 102,151 Interest on convertible notes and promissory notes 101,231 84,292 Other accrued expenses and liabilities 75,619 192,511 Total accrued liabilities $ 292,521 $ 378,954

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND PAYABLES	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND PAYABLES	11. 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 website and mobile application. 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 June 30, 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 and $30,000, respectively. For the three months ended June 30, 2023 and 2022, the Marks family was paid a total of $ 32,500 30,000 67,917 30,000 Compensation for services provided by 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 50,000 As of June 30, 2023 and December 31, 2022, the aggregate related party payables balance was $ 23,904 72,383 23,904 22,383

CONVERTIBLE NOTES

CONVERTIBLE NOTES	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
CONVERTIBLE NOTES	12. CONVERTIBLE NOTES The following tables set forth the components of the Company’s convertible notes as of June 30, 2023 and December 31, 2022: Schedule of convertible debt June 30, 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) 136,510 204,907 12% Senior Secured Convertible Notes (Additional Secured Notes) 25,937 38,932 Loan discounts (14,751 ) (25,165 ) Total convertible notes, net 500,696 571,664 Less: current portion of convertible notes, net (500,696 ) (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 June 30, 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 27,109 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 34,706 During the year ended December 31, 2022, the Company issued an aggregate 191,192 4,125,000 As of June 30, 2023, the principal balance 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 L1 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 During the year ended December 31, 2022, the Company issued an aggregate 108,025 1,146,901 1,750,000 As of June 30, 2023, the principal balance 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 June 30, 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 June 30, 2023, the remaining principal balance of these notes was $ 50,000 As of June 30, 2023, the 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 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 June 30, 2023, the principal balance of these notes was $ 136,510 12,396 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 June 30, 2023, the principal balance of these notes was $ 25,937 2,355 Future Minimum Principal Payments The remaining future 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 $ 439,760 2024 75,687 2025 and thereafter – Total Convertible notes principal amount payable. $ 515,447

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLAN	13. EMPLOYEE BENEFIT PLAN The Company’s subsidiary, Top Draw Animation, Inc., 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 Company’s Consolidated Balance Sheet is determined as follows: Schedule of defined benefit liability June 30, 2023 December 31, 2022 Benefit obligation $ 233,433 $ 434,974 Plan assets – – Total $ 233,433 $ 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: Schedule of components of accumulated benefit cost June 30, 2023 June 30, 2022 Current service cost $ 9,164 $ 2,471 Net interest expense 8,857 – Total $ 18,021 $ 2,471 The change in the accumulated benefit cost in the Company’s Condensed Consolidated Balance Sheet for the six months ended June 30, 2023 is as follows: Schedule of changes in accumulated benefit cost 2023 Balance, January 1 $ 434,974 Foreign currency translation 2,398 Expense recognized in other comprehensive income 18,021 Remeasurement on actuarial gain (loss) recognized (44,351 ) Contributions paid (177,609 ) Balance, June 30 $ 233,433 The cumulative amount of actuarial gains recognized in other comprehensive income for the six months ended June 30, 2023 and 2022 is as follows: Schedule of actuarial gains 2023 2022 Balance, January 1 $ (36,682 ) $ 60,518 Foreign currency translation – – Actuarial gain (loss) (42,733 ) – Balance, June 30 79,405 60,518 Tax effect 19,851 (12,439 ) Cumulative actuarial gain (loss), net of tax $ (59,544 ) $ 48,079 The assumptions used to determine retirement benefits for the six months ended June 30, 2023 are as follows: Schedule of assumption used to determine retirement benefits June 30, 2023 Discount rate 6.22% Salary increase rate 2.00%

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	14. 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 and six months ended June 30, 2023 and 2022 was 0

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	15. STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 25,000,000 0.001 Series A Preferred Stock As of June 30, 2023 and December 31, 2022, the Company had no Series B Preferred Stock As of June 30, 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 June 30, 2023 and December 31, 2022, the Company had 9,281,809 For the three months and six ended June 30, 2023, the Company declared cumulative dividends totaling $ 187,216 371,273 Common Stock The Company is authorized to issue 500,000,000 0.001 9,044,361 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 placement (the “PIPE Offering”) pursuant to the terms of the Securities Purchase Agreement dated as of January 25, 2023 (the “2023 SPA”) that it entered into with institutional investors, in which the Company 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 (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 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 Purchase Agreement to solicit the approval of the issuance of the shares, Warrants and the shares of common stock underlying the Warrants in compliance with the rules of The Nasdaq Stock Market LLC (without regard to any limitations on exercise set forth in the Warrants or the Pre-Funded Warrants. On March 27, 2023, the Company held a special meeting of stockholders and the stockholders approved the PIPE Offering. 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. The Registration Statement was filed and declared effective by the SEC on February 9, 2023. Common Stock Issued in Exchange for Consulting, Professional and Other Services During the three and six months ended June 30, 2023, the Company issued 0 23,334 0 31,968 During the three and six months ended June 30, 2022, the Company issued 1,464 3,950 18,660 95,482 Common Stock Issued in Connection with the Conversion of Convertible Note Principal and Accrued Interest During the three and six months ended June 30, 2022, the Company issued 27,778 219,960 450,000 4,575,000 Common Stock Issued in Connection with Series C Stock Dividends During the three and six months ended June 30, 2022, the Company issued 5,895 11,737 187,455 646,523 Stock Purchase Warrants Stock purchase warrants are accounted for as equity in accordance with ASC 480, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock, Distinguishing Liabilities from Equity The following table reflects all outstanding and exercisable warrants at June 30, 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 (7,775,889 ) – Warrants forfeited – – Balance June 30, 2023 174,235 $ 107.32 3.24 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 six months ended June 30, 2023, the Company issued 1,262,787 1,262,787 12,309 During the six months ended June 30, 2023, the Company also issued 5,143,382 6,513,102 As of June 30, 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 June 30, 2023: Schedule of options Year Issued Options Options Options Vested Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) 2013 8,058 (870 ) 7,188 7,188 $ 230.40 0.22 2018 62 (62 ) – – – – 2021 6,950 – 6,950 2,317 $ 89.40 3.08 Total 15,070 (932 ) 14,138 9,505 $ 161.08 1.62 During the three and six months ended June 30, 2023, the Company recorded $ 44,821 89,643 89,241 137,383 As of June 30, 2023, the total unrecognized cost of stock-based compensation related to stock options was $ 97,308 1.08 As of June 30, 2023, the outstanding stock options had an aggregate intrinsic value of $ 0

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	16. 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 14 (“Income Taxes”).

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, Subsequent Events Reverse Stock Split On August 8, 2023, the Company’s shareholders approved the granting of authority to the Company’s Board of Directors (“Board”) to amend its 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-20, 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.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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 significantly affected 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 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 86.9% 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. The Company has recalled artists and employees to return to the studio, which is currently operating at 41% seat capacity. Approximately 37% of the studio’s employees and contractors currently work from home. While restrictions have eased, the virus may continue to mutate and 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 virus, 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 and six months ended June 30, 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 the 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 the 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 to a fair presentation of financial position and results of operations. All such adjustments, which includes 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.
Basic and Diluted Net Income (Loss) Per Share	Basic and Diluted Net Income (Loss) Per Share The Company computes net income (loss) per share in accordance with FASB ASC 260, Earnings per Share which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period using the treasury stock method, and convertible preferred stock and convertible debt using the if-converted method. These potentially dilutive shares include 5,266 161,143 9,504 174,235
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)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenue	Schedule of disaggregated revenue Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Animation $ 815,148 $ 1,025,966 $ 1,872,817 $ 2,074,579 Web Filtering 116,574 113,472 207,384 295,716 Publishing – – 10,101 – Other 24,776 144 65,839 412 Total Sales $ 956,498 $ 1,139,582 $ 2,156,141 $ 2,370,707
Schedule of accounts receivable	Schedule of accounts receivable June 30, 2023 December 31, 2022 Billed accounts receivable $ 171,721 $ 607,524 Unbilled accounts receivable 531,228 592,932 Allowance for doubtful accounts (44,301 ) (38,226 ) Total accounts receivable, net $ 658,648 $ 1,162,230 Total advanced payments and deferred revenues $ 374,295 $ 576,338

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment June 30, 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 $ 2,510,394 $ (2,467,440 ) $ 42,954 $ 2,774,308 $ (2,651,872 ) $ 122,436 Machinery and equipment 174,666 (171,835 ) 2,831 189,641 (182,180 ) 7,461 Vehicles 11,776 (11,776 ) – 41,112 (35,504 ) 5,608 Furniture and fixtures 376,834 (365,765 ) 11,069 409,996 (391,783 ) 18,213 Leasehold improvements 1,079,920 (1,014,233 ) 65,687 1,172,501 (1,065,148 ) 107,353 Total fixed assets 4,153,590 (4,031,049 ) 122,541 4,587,558 (4,326,487 ) 261,071 Capital assets not subject to depreciation: Construction in progress – – – 24,605 – 24,605 Total fixed assets $ 4,153,590 $ (4,031,049 ) $ 122,541 $ 4,612,163 $ (4,326,487 ) $ 285,676

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule Of Other Assets	Schedule Of Other Assets June 30, 2023 December 31, 2022 Capitalized website development costs $ 870,017 $ 1,057,312 Prepublication costs 174,545 164,042 Produced and licensed content costs 452,949 325,966 Deposits 72,921 72,027 Other noncurrent assets – 7,731 Total other assets $ 1,570,432 $ 1,627,078
Schedule of capitalized cost	Schedule of capitalized cost June 30, 2023 December 31, 2022 Gross Carrying Value Accumulated Net Book Gross Carrying Value Accumulated Net Book Prepublication costs $ 177,635 $ (3,090 ) $ 174,545 $ 165,524 $ (1,482 ) $ 164,042 Produced and licensed content costs 452,949 – 452,949 325,966 – 325,966 Capitalized website development costs 1,123,772 (253,755 ) 870,017 1,123,772 (66,460 ) 1,057,312 Total capitalized costs $ 1,754,356 $ (256,845 ) $ 1,497,511 $ 1,615,262 $ (67,942 ) $ 1,547,320

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
Schedule of future minimum lease payment	Schedule of future minimum lease payment Remainder of 2023 $ 189,580 2024 275,894 2025 277,235 2026 225,200 2027 236,461 Thereafter – Total future lease payments 1,204,370 Less: Imputed interest (258,237 ) Present value of lease liabilities $ 946,133
Schedule of operating right-of-use assets	Schedule of operating right-of-use assets Six Months Ended Cash paid for operating lease liabilities $ 190,600 Weighted-average remaining lease term in years 2.6 Weighted-average discount rate 10

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	Schedule of goodwill Balance, January 1, 2022 $ 22,376,025 Measurement Period Adjustment (468,426 ) Impairment charge (11,340,115 ) Balance, December 31, 2022 10,567,484 Impairments and other adjustments – Balance, June 30, 2023 $ 10,567,484
Summary of changes in intangible assets	Summary of changes in intangible assets Licensing agreements $ 341,728 Books and stories content 126,698 Total identifiable intangible assets $ 468,426
Schedule of intangible assets	Schedule of intangible assets June 30, 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 $ (1,068,397 ) $ 457,885 $ 1,526,282 $ (992,083 ) $ 534,199 Licensing agreement 19.60 341,728 (33,338 ) 308,390 341,728 (24,641 ) 317,087 Subtotal 1,868,010 (1,101,735 ) 766,275 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 $ (1,101,735 ) $ 5,279,220 $ 6,380,955 $ (1,016,724 ) $ 5,364,231 For the three months ended June 30, 2023 and 2022, the Company recorded amortization expense of $ 42,505 80,373 85,011 173,047 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	Schedule of amortization Remainder of 2023 $ 85,011 2024 170,022 2025 170,022 2026 93,708 2027 17,394 Thereafter 230,118 Total remaining intangible assets subject to amortization $ 766,275

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule accrued liabilities	Schedule accrued liabilities June 30, 2023 December 31, 2022 Executive and employee compensation $ 115,671 $ 102,151 Interest on convertible notes and promissory notes 101,231 84,292 Other accrued expenses and liabilities 75,619 192,511 Total accrued liabilities $ 292,521 $ 378,954

CONVERTIBLE NOTES (Tables)

CONVERTIBLE NOTES (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of convertible debt	Schedule of convertible debt June 30, 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) 136,510 204,907 12% Senior Secured Convertible Notes (Additional Secured Notes) 25,937 38,932 Loan discounts (14,751 ) (25,165 ) Total convertible notes, net 500,696 571,664 Less: current portion of convertible notes, net (500,696 ) (503,465 ) Convertible notes, net $ – $ 68,199
Schedule of future debt maturity payments	Schedule of future debt maturity payments Remainder of 2023 $ 439,760 2024 75,687 2025 and thereafter – Total Convertible notes principal amount payable. $ 515,447

EMPLOYEE BENEFIT PLAN (Tables)

EMPLOYEE BENEFIT PLAN (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of defined benefit liability	Schedule of defined benefit liability June 30, 2023 December 31, 2022 Benefit obligation $ 233,433 $ 434,974 Plan assets – – Total $ 233,433 $ 434,974
Schedule of components of accumulated benefit cost	Schedule of components of accumulated benefit cost June 30, 2023 June 30, 2022 Current service cost $ 9,164 $ 2,471 Net interest expense 8,857 – Total $ 18,021 $ 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 2,398 Expense recognized in other comprehensive income 18,021 Remeasurement on actuarial gain (loss) recognized (44,351 ) Contributions paid (177,609 ) Balance, June 30 $ 233,433
Schedule of actuarial gains	Schedule of actuarial gains 2023 2022 Balance, January 1 $ (36,682 ) $ 60,518 Foreign currency translation – – Actuarial gain (loss) (42,733 ) – Balance, June 30 79,405 60,518 Tax effect 19,851 (12,439 ) Cumulative actuarial gain (loss), net of tax $ (59,544 ) $ 48,079
Schedule of assumption used to determine retirement benefits	Schedule of assumption used to determine retirement benefits June 30, 2023 Discount rate 6.22% Salary increase rate 2.00%

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 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 (7,775,889 ) – Warrants forfeited – – Balance June 30, 2023 174,235 $ 107.32 3.24
Schedule of options	Schedule of options Year Issued Options Options Options Vested Weighted Average Exercise Price Weighted Average Remaining Life (Yrs.) 2013 8,058 (870 ) 7,188 7,188 $ 230.40 0.22 2018 62 (62 ) – – – – 2021 6,950 – 6,950 2,317 $ 89.40 3.08 Total 15,070 (932 ) 14,138 9,505 $ 161.08 1.62

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated Deficit	$ 88,202,102		$ 83,472,412
Net cash used in operating activities	$ 4,010,846	$ 3,383,231

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Jun. 30, 2023 shares
Convertible Notes And Accrued Interest [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,266
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	161,143
Vested Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,504
Stock Purchase Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	174,235

REVENUES (Details - Revenue by

REVENUES (Details - Revenue by segment) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total Sales	$ 956,498	$ 1,139,582	$ 2,156,141	$ 2,370,707
Animation [Member]
Total Sales	815,148	1,025,966	1,872,817	2,074,579
Web Filtering [Member]
Total Sales	116,574	113,472	207,384	295,716
Publishing [Member]
Total Sales	0	0	10,101	0
Other Revenue [Member]
Total Sales	$ 24,776	$ 144	$ 65,839	$ 412

REVENUES (Details - Accounts Re

REVENUES (Details - Accounts Receivable) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Billed accounts receivable	$ 171,721	$ 607,524
Unbilled accounts receivable	531,228	592,932
Allowance for doubtful accounts	(44,301)	(38,226)
Total accounts receivable, net	658,648	1,162,230
Total advanced payments and deferred revenues	$ 374,295	$ 576,338

REVENUES (Details Narrative)

REVENUES (Details Narrative) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Three Customers [Member] | Revenue Benchmark [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage	73.90%	78.10%	57.30%	81.70%
Four Customers [Member] | Revenue Benchmark [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage	73.90%	78.10%	57.30%	81.70%
Two Customers [Member] | Accounts Receivable [Member]
Disaggregation of Revenue [Line Items]
Concentration percentage			79.20%		73.60%

INVENTORY (Details Narrative)

INVENTORY (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory, Net	$ 87,040	$ 92,303
Inventory work-in-progress	85,382	85,324
Inventory finished goods	$ 1,658	$ 6,979

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,153,590	$ 4,612,163
Accumulated depreciation	(4,031,049)	(4,326,487)
Property and equipment, net	122,541	285,676
Computers Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,510,394	2,774,308
Accumulated depreciation	(2,467,440)	(2,651,872)
Property and equipment, net	42,954	122,436
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	174,666	189,641
Accumulated depreciation	(171,835)	(182,180)
Property and equipment, net	2,831	7,461
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,776	41,112
Accumulated depreciation	(11,776)	(35,504)
Property and equipment, net	0	5,608
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	376,834	409,996
Accumulated depreciation	(365,765)	(391,783)
Property and equipment, net	11,069	18,213
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,079,920	1,172,501
Accumulated depreciation	(1,014,233)	(1,065,148)
Property and equipment, net	65,687	107,353
Total Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,153,590	4,587,558
Accumulated depreciation	(4,031,049)	(4,326,487)
Property and equipment, net	122,541	261,071
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 58,559	$ 80,373	$ 128,435	$ 173,047

OTHER ASSETS (Details - Schedul

OTHER ASSETS (Details - Schedule of other assets) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized website development costs	$ 870,017	$ 1,057,312
Prepublication costs	174,545	164,042
Produced and licensed content costs	452,949	325,966
Deposits	72,921	72,027
Other noncurrent assets	0	7,731
Total other assets	$ 1,570,432	$ 1,627,078

OTHER ASSETS (Details - Sched_2

OTHER ASSETS (Details - Schedule of capitalized costs) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Website development costs	$ 1,754,356	$ 1,615,262
Accumulated Amortization	(256,845)	(67,942)
Net Book Value	1,497,511	1,547,320
Prepublication Costs [Member]
Property, Plant and Equipment [Line Items]
Website development costs	177,635	165,524
Accumulated Amortization	(3,090)	(1,482)
Net Book Value	174,545	164,042
Produced And Licensed Content [Member]
Property, Plant and Equipment [Line Items]
Website development costs	452,949	325,966
Accumulated Amortization	0	0
Net Book Value	452,949	325,966
Capitalized Website Development Costs [Member]
Property, Plant and Equipment [Line Items]
Website development costs	1,123,772	1,123,772
Accumulated Amortization	(253,755)	(66,460)
Net Book Value	$ 870,017	$ 1,057,312

OTHER ASSETS (Details Narrative

OTHER ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization expense	$ 94,451	$ 499	$ 188,903	$ 499

LEASES (Details - Future minimu

LEASES (Details - Future minimum payment obligations)	Jun. 30, 2023 USD ($)
Leases
Remainder of 2023	$ 189,580
2024	275,894
2025	277,235
2026	225,200
2027	236,461
Thereafter	0
Total future lease payments	1,204,370
Less: Imputed interest	(258,237)
Present value of lease liabilities	$ 946,133

LEASES (Details - Operating rig

LEASES (Details - Operating right-of-use assets and related lease liabilities)	6 Months Ended
	Jun. 30, 2023 USD ($)
Leases
Cash paid for operating lease liabilities	$ 190,600
Weighted-average remaining lease term (in years)	2 years 7 months 6 days
Weighted-average discount rate	10%

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases
Operating lease right of use assets	$ 0		$ 0
Operating Lease, Expense	$ 100,102	$ 115,292	$ 200,204	$ 220,632

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details - Goodwill) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 10,567,484	$ 10,567,484	$ 22,376,025
Measurement period adjustment		(468,426)
Impairment and other adjustments	$ 0	$ (11,340,115)

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS (Details - Change in intangible assets)	12 Months Ended
	Dec. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	$ 468,426
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	341,728
Books And Stories Content [Member]
Finite-Lived Intangible Assets [Line Items]
Total identifiable intangible assets	$ 126,698

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS (Details - Intangibles) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, gross	$ 1,868,010	$ 1,868,010
Accumulated amortization	(1,101,735)	(1,016,724)
Finite lived intangible asset	766,275	851,286
Total intangible assets	6,380,955	6,380,955
Total Accumulated Amortization	(1,101,735)	(1,016,724)
Total intangible assets	5,279,220	5,364,231
Books And Stories Content [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite lived intangible asset, gross	126,698	126,698
Indefinite lived intangible asset	126,698	126,698
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite lived intangible asset, gross	4,386,247	4,386,247
Indefinite lived intangible asset	$ 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	(1,068,397)	(992,083)
Finite lived intangible asset	$ 457,885	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	(33,338)	(24,641)
Finite lived intangible asset	$ 308,390	$ 317,087

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS (Details - Amortization schedule) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 85,011
2024	170,022
2025	170,022
2026	93,708
2027	17,394
Thereafter	230,118
Total remaining intangible assets subject to amortization	$ 766,275	$ 851,286

GOODWILL AND INTANGIBLE ASSET_6

GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, Impairment Loss			$ 0		$ 11,340,115
Decrease in goodwill					468,426
Increase in intangible assets					468,426
Goodwill	$ 10,567,484		10,567,484		10,567,484	$ 22,376,025
Amortization of Intangible Assets	$ 42,505	$ 80,373	$ 85,011	$ 173,047
T D Holdings Ltd [Member]
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, Impairment Loss					6,202,888
Curiosity Ink Media [Member]
Indefinite-Lived Intangible Assets [Line Items]
Goodwill, Impairment Loss					$ 5,137,227

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Executive and employee compensation	$ 115,671	$ 102,151
Interest on convertible notes and promissory notes	101,231	84,292
Other accrued expenses and liabilities	75,619	192,511
Total accrued liabilities	$ 292,521	$ 378,954

RELATED PARTY TRANSACTIONS AN_2

RELATED PARTY TRANSACTIONS AND PAYABLES (Details Narrative) - USD ($)			3 Months Ended		6 Months Ended
	Apr. 21, 2023	Jul. 11, 2018	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Repayments of Related Party Debt					$ 50,000	$ 0
Marks Family [Member]
Related Party Transaction [Line Items]
Wages paid			$ 32,500	$ 30,000	67,917	$ 30,000
Rutherford [Member]
Related Party Transaction [Line Items]
Notes Payable		$ 50,000
Debt interest rate		10%
Maturity date		Aug. 11, 2018
Repayments of Related Party Debt	$ 50,000
Executive Officers And Directors [Member]
Related Party Transaction [Line Items]
Accounts payable, related parties			23,904		23,904		$ 72,383
Accounts payable, related parties			$ 23,904		$ 23,904		$ 22,383

CONVERTIBLE NOTES (Details - Co

CONVERTIBLE NOTES (Details - Convertible debentures) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Convertible Debt, Current	$ (500,696)	$ (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	500,696	571,664
Debt Instrument, Unamortized Discount	(14,751)	(25,165)
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	136,510	204,907
Convertible Debentures [Member] | Senior Secured Convertible Additional Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross	$ 25,937	$ 38,932

CONVERTIBLE NOTES (Details - De

CONVERTIBLE NOTES (Details - Debt maturities)	Jun. 30, 2023 USD ($)
Debt Disclosure [Abstract]
Remainder of 2023	$ 439,760
2024	75,687
2025 and thereafter	0
Total Convertible notes principal amount payable.	$ 515,447

CONVERTIBLE NOTES (Details Narr

CONVERTIBLE NOTES (Details Narrative) - USD ($)					6 Months Ended		12 Months Ended
	Jan. 20, 2022	Oct. 20, 2021	Sep. 14, 2021	Mar. 16, 2020	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Oct. 21, 2021	Jul. 29, 2021
Debt Instrument [Line Items]
Proceeds from Convertible Debt					$ 0	$ 1,444,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 107.32		$ 7.29	$ 132
Original issue discount	$ 175,000
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							108,025
Repayments of Notes Payable							$ 1,146,901
Debt Conversion, Original Debt, Amount							$ 1,750,000
Senior Ten Percentage Secured Convertible Note With Original Issuance Discount L 1 [Member]
Debt Instrument [Line Items]
Convertible debt, gross					0
Number of securities called by each warrant	10,123
Convertible note					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
Secured 12 Conv Notes [Member] | T D H Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross					136,510
Stock issued with debt, shares				6,250
Stock issued with debt, value				$ 420,000
Unamortized discount					12,396
Secured 12 Conv Notes [Member] | Additional Secured Notes [Member]
Debt Instrument [Line Items]
Convertible debt, gross				$ 1,060,000	25,937
Debt interest rate				12%
Stock issued with debt, shares				2,208
Stock issued with debt, value				$ 148,000
Unamortized discount					$ 2,355
Debt maturity date				Mar. 16, 2024
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
Number of securities called by each warrant			27,109
Debt converted, shares issued							191,192
Debt Conversion, Converted Instrument, Amount							$ 4,125,000
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]
Number of securities called by each warrant									34,706
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

EMPLOYEE BENEFIT PLAN (Details

EMPLOYEE BENEFIT PLAN (Details - Defined benefit liability) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Benefit obligation	$ 233,433	$ 434,974
Plan assets	0	0
Total	$ 233,433	$ 434,974

EMPLOYEE BENEFIT PLAN (Detail_2

EMPLOYEE BENEFIT PLAN (Details - Accumulated benefit cost) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Current service cost	$ 9,164	$ 2,471
Net interest expense	8,857	0
Total	$ 18,021	$ 2,471

EMPLOYEE BENEFIT PLAN (Detail_3

EMPLOYEE BENEFIT PLAN (Details - Changes in accumulated benefit cost)	6 Months Ended
	Jun. 30, 2023 USD ($)
Retirement Benefits [Abstract]
Balance, January 1	$ 434,974
Foreign currency translation	2,398
Expense recognized in other comprehensive income	18,021
Remeasurement on actuarial gain (loss) recognized	(44,351)
Contributions paid	(177,609)
Balance, June 30	$ 233,433

EMPLOYEE BENEFIT PLAN (Detail_4

EMPLOYEE BENEFIT PLAN (Details - Actuarial gains) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Other comprehensive income (loss), beginning	$ (166,129)
Other comprehensive income (loss), ending	(168,267)
Top Draw Animation [Member]
Other comprehensive income (loss), beginning	(36,682)	$ 60,518
Foreign currency translation	0	0
Actuarial gain (loss)	(42,733)	0
Other comprehensive income (loss), ending	79,405	60,518
Tax effect	19,851	(12,439)
Actuarial gain (loss)	$ (59,544)	$ 48,079

EMPLOYEE BENEFIT PLAN (Detail_5

EMPLOYEE BENEFIT PLAN (Details - Assumptions)	Jun. 30, 2023
Retirement Benefits [Abstract]
Discount rate	6.22%
Salary increase rate	2%

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	0%

STOCKHOLDERS' EQUITY (Details -

STOCKHOLDERS' EQUITY (Details - Warrant activity) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 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	3 years 2 months 26 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	(7,775,889)	(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	174,235	4,137,180	141,572
Weighted Average Exercise Price, Warrants outstanding, ending balance	$ 107.32	$ 7.29	$ 132

STOCKHOLDERS' EQUITY (Details_2

STOCKHOLDERS' EQUITY (Details - Option Activity) - Equity Option [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	15,070
Options forfeited	(932)
Options outstanding	14,138
Vested options	9,505
Weighted average exercise price | $ / shares	$ 161.08
Weighted average remaining life	1 year 7 months 13 days
Option 1 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	8,058
Options forfeited	(870)
Options outstanding	7,188
Vested options	7,188
Weighted average exercise price | $ / shares	$ 230.40
Weighted average remaining life	2 months 19 days
Options Issued 2018 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options issued	62
Options forfeited	(62)
Options outstanding	0
Vested options	0
Weighted average exercise price | $ / shares	$ 0
Option 3 [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 29 days

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 24, 2022	Oct. 04, 2020	Jan. 31, 2023	Jan. 25, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, shares authorized					25,000,000		25,000,000
Preferred stock, par value					$ 0.001		$ 0.001
Common stock, shares authorized					500,000,000		500,000,000		500,000,000
Common stock, par value					$ 0.001		$ 0.001		$ 0.001
Common stock, shares issued					9,044,361		9,044,361		2,514,858
Common stock, shares outstanding					9,044,361		9,044,361		2,514,858
Reverse stock split		1-for-30
Stock issued for services, value						$ 18,660	$ 31,968	$ 95,482
Warrant exericse price					$ 107.32		$ 107.32		$ 7.29	$ 132
Stock price			$ 2.15		$ 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		$ 1,387,429
Expected term			1 year
Fair value of purchase warrant			$ 350,039
Stock based compensation expenses					44,821	$ 89,241	89,643	$ 137,383
Uunrecognized cost of stock-based compensation					97,308		$ 97,308
Rrecognized weighted average period							1 year 29 days
Intrinsic value					$ 0		$ 0
Warrant [Member]
Class of Stock [Line Items]
Warrant issued			1,327,434
Warrant purchase			2,323,010
Warrants exercisable			$ 2.26
Warrant exericse price			$ 0.85
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 Converted								686
Stock issued for services, shares						1,464	23,334	3,950
Stock issued for services, value						$ 1	$ 23	$ 4
Number of shares issued upon exercise, warrants							1,262,787
Number of shares issued other							5,143,382
Purchase warrants					6,513,102		6,513,102
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						27,778		219,960
Issuance of common stock in connection with the amendment of terms of promissory notes, value						$ 450,000		$ 4,575,000
Contractors [Member]
Class of Stock [Line Items]
Stock issued for services, shares					0	1,464	23,334	3,950
Stock issued for services, value					$ 0	$ 18,660	$ 31,968	$ 95,482
Securities Purchase Agreement [Member] | L 1 Capital Global [Member]
Class of Stock [Line Items]
Stock Repurchased During Period, Shares				150,000
Payments for Other Fees				$ 50,000
Common Stocks [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Shares, Issued				100,000
Stock Repurchased During Period, Shares				2,323,010
Warrants [Member] | Securities Purchase Agreement [Member]
Class of Stock [Line Items]
Shares, Issued				1,327,434
Stock Repurchased During Period, Shares				1,227,434
[custom:WarrantPurchasePrice-0]				$ 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					2,000,000		2,000,000		2,000,000
Preferred stock, par value					$ 0.001		$ 0.001		$ 0.001
Preferred stock, shares issued					0		0		0
Preferred stock, shares outstanding					0		0		0
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized					10,000,000		10,000,000		10,000,000
Preferred stock, par value					$ 0.001		$ 0.001		$ 0.001
Preferred stock, shares issued					0		0		0
Preferred stock, shares outstanding					0		0		0
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized					10,000,000		10,000,000		10,000,000
Preferred stock, par value					$ 0.001		$ 0.001		$ 0.001
Preferred stock, shares issued					9,281,809		9,281,809		9,281,809
Preferred stock, shares outstanding					9,281,809		9,281,809		9,281,809
Declared cumulative dividends					$ 187,216		$ 371,273
Series C Preferred Stock Dividend [Member]
Class of Stock [Line Items]
Issuance Of Common Stock In Connection With Issuance Of Preferred Stock Dividend Shares					5,895		11,737
Issuance Of Common Stock In Connection With Issuance Of Preferred Stock Dividend Value					$ 187,455		$ 646,523