| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE－3 SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES The accompanying
unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described
in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. •
Basis of presentation The
Company has prepared the accompanying condensed financial statements pursuant to the rules and regulations of the Securities and Exchange
Commission (the “SEC”) for interim financial reporting. These financial statements are unaudited and, in our opinion, include
all adjustments consisting of normal recurring adjustments and accruals necessary for a fair presentation of our condensed balance sheets,
statements of operations and other comprehensive loss, statements of stockholders’ deficit and cash flows for the periods presented.
Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2022 due to various
factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations
of the SEC. These condensed financial statements should be read in conjunction with the 2021 audited financial statements and accompanying
notes filed with the SEC. •
Emerging Growth Company We
are an “emerging growth company” under the JOBS Act. For as long as we are an “emerging growth company,” we are
not required to: (i) comply with any new or revised financial accounting standards that have different effective dates for public and
private companies until those standards would otherwise apply to private companies, (ii) provide an auditor’s attestation report
on management’s assessment of the effectiveness of internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley
Act, (iii) comply with any new requirements adopted by the Public Company Accounting Oversight Board (“PCAOB”) requiring
mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional
information about the audit and the financial statements of the issuer or (iv) comply with any new audit rules adopted by the PCAOB after
April 5, 2012, unless the SEC determines otherwise. However, we have elected to “opt out” of the extended transition period
discussed in (i) and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of
such standards are required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such
extended transition period for compliance with new or revised accounting standards is irrevocable. •
Use of estimates and assumptions In
preparing these condensed consolidated financial statements, management
makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses
during the years reported. Actual results may differ from these estimates. If actual results significantly differ from the Company’s
estimates, the Company’s financial condition and results of operations could be materially impacted. Significant estimates in the
period include the allowance for doubtful accounts on accounts, assumptions used in assessing right of use assets, valuation and useful
lives of intangible assets, valuation of common stock and stock warrants, stock option valuations, imputed interest on due to related
parties, business acquisition allocation of purchase consideration, and deferred tax valuation allowance. •
Basis of consolidation The
condensed consolidated financial statements include the financial statements of the Company and its subsidiary. All significant inter-company
balances and transactions within the Company have been eliminated upon consolidation. •
Business Combination The
Company follows Accounting Standards Codification (“ASC”) ASC Topic 805, Business Combinations (“ASC 805”) and
ASC Topic 810-10-65, Consolidation. ASC Topic 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill
acquired in a business combination to be recorded at “fair value.” The statement applies to all business combinations, including
combinations among mutual entities and combinations by contract alone. Under ASC Topic 805, all business combinations are accounted for
by applying the acquisition method. Accounting for goodwill requires significant management estimates and judgment. Management performs
periodic reviews of the carrying value of goodwill to determine whether events and circumstances indicate that an impairment in value
may have occurred. A variety of factors could cause the carrying value of goodwill to become impaired. A write-down of the carrying value
of goodwill could result in a non-cash charge, which could have an adverse effect on the Company’s results of operations. •
Noncontrolling interest The
Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling
interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss
attributable to the its noncontrolling interest be clearly identified and presented on the face of the consolidated statements of operations
and comprehensive loss. •
Segment Reporting ASC
Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent
with the Company’s internal organization structure as well as information about geographical areas, business segments and major
customers in consolidated financial statements. The Company currently operates in two reportable operating segments: (i) e-commerce and
(ii) Merchant POS. •
Cash and cash equivalents Cash
and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions
and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. As of
March 31, 2022 and December 31, 2021, the cash and cash equivalent was amounted to $ 30,967,561
and $ 23,264,777 ,
respectively. The
Company currently has bank deposits with financial institutions in the U.S. which does not exceed FDIC insurance limits. FDIC insurance
provides protection for bank deposits up to $ 250,000 ,
so there were uninsured balance of $ 10,725,021 and $ 13,699,082
in parent entity as of March 31, 2022 and December
31, 2021, respectively. In addition, the Company has uninsured bank deposits with a financial institution outside the U.S. All uninsured
bank deposits are held at high quality credit institutions. •
Accounts receivable Accounts
receivable are recorded at the invoiced amount and do not bear interest, which are due within contractual payment terms, generally 30
to 90 days from completion of service. Credit is extended based on evaluation of a customer’s financial condition, the customer credit-worthiness
and their payment history. Accounts receivable outstanding longer than the contractual payment terms are considered past due. Past due
balances over 90 days and over a specified amount are reviewed individually for collectibility. At the end of fiscal year, the Company
specifically evaluates individual customer’s financial condition, credit history, and the current economic conditions to monitor
the progress of the collection of accounts receivables. The Company considers the allowance for doubtful accounts for any estimated losses
resulting from the inability of its customers to make required payments. For the receivables that are past due or not being paid according
to payment terms, the appropriate actions are taken to exhaust all means of collection, including seeking legal resolution in a court
of law. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for
recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March
31, 2022 and December 31, 2021, the allowance for doubtful accounts amounted to $ 0
and $ 0 ,
respectively. •
Inventories Inventories
are stated at the lower of cost or net realizable value, cost being determined on a first-in-first-out method. Costs include hardware
equipment and peripheral costs which are purchased from the Company’s suppliers as merchanized goods. The Company provides inventory
allowances based on excess and obsolete inventories determined principally by customer demand. During the three months ended March 31,
2022 and 2021, the Company recorded an allowance for obsolete inventories of $0 and $0, respectively. The inventories was amounted to
$267,409 and $221,068 at March 31, 2022 and December 31, 2021, respectively. •
Prepaid Expenses Prepaid
expenses represent future expenses paid in advance , until the associated benefits are realized, the future expense remains at current
asset within the next twelve months and non-current asset after twelve months.. Since prepaid expenses are categorized as “current
and non-current” assets, the benefits associated with the products or services paid for upfront are expected to be used for the
next twelve months and thereafter. Once the benefits of the assets are gradually realized, the prepaid expense is reduced as the asset
is expensed off on the statement of operations. •
Property, plant and equipment Plant
and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated
on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking
into account their estimated residual values:
Schedule of Expected useful
life
Expected
useful lives
Computer
equipment 3
years
Office
equipment 5
years
Renovation 5
years Expenditures
for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation
are removed from the accounts and any resulting gain or loss is recognized in the results of operations. •
Impairment of long-lived assets In
accordance with the provisions of ASC Topic 360, “ Impairment or Disposal of Long-Lived Assets •
Revenue recognition The
Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU
2014-09”). Under ASU 2014-09, the Company applies the following five steps in order to determine the appropriate amount of revenue
to be recognized as it fulfills its obligations under each of its agreements:
• identify
the contract with a customer;
• identify
the performance obligations in the contract;
• determine
the transaction price;
• allocate
the transaction price to performance obligations in the contract; and
• recognize
revenue as the performance obligation is satisfied. The
Company generates its revenues from a diversified a mix of e-commerce activities (B2C) and the services providing to merchants for their
business growth (B2B), which are operated under two business segments of e-Commerce (previously mentioned as Consumer Facing Business)
and Merchant POS (previously mentioned as Merchant Facing Business). The
Company’s performance obligation includes providing the connectivity among merchants and consumers, generally through an online
ordering platform. The platform allows merchants to create account, place menu and track their sale reports on the merchant facing application.
The platform also allows the consumers to create account and make orders from merchants on the consumer facing application. The platform
allows delivering company to accept online delivery request and ship order from merchant to consumer. The
Company also has online lifestyle platform to enable the consumers to purchase high-end brands of all categories under its own brand
name of “Leflair”. Under the deployment of the Company’s smart search engine, consumers search or review their favorite
brands among hundreds of choices in Apparel, Bags & Shoes, Accessories, Health & Beauty, Home & Lifestyle, International,
Women, Men and Kids & Babies categories. The platform also allows consumers to order from hundreds of vendor choices with personalized
promotions based on purchase history and location. The platform has also partnered up with a Vietnam-based delivery company, Tikinow,
to offer seamless delivery of product from merchant to consumer’s home or office at the touch of a button. Consumers can place
orders for delivery or collect at the Company’s logistics center. e-Commerce
1) Customer
placed orders on the website / app, sales orders report will be generated in the system. The Company will inform its business partners
proceed to packaging to the logistic partner warehouse and therefore, logistic partner delivered to the end customer. The sales is
recognized when the delivery is completed by the shipper to the end customer. Sale of products are offered with a limited
right of return ranging from 3 to 30 days, from the date of purchase and not subject to no product warranty. The Company is considered
as a principal in this e-commerce transaction and reported revenue in gross basis as the Company takes the responsibility for fulfillment,
retaining the risk for collection, and establishing the price of the products. During
the three months ended March 31, 2022 and 2021, the Company has generated the revenue of $ 434,141
and $ 0
respectively, in the Lifestyle sector. Merchant
POS Software
sales consist of:
1) Subscription
fees consist of the fees that the Company charge merchants to get on the Merchant Marketing Program.
2) The
Company provides optional add-on software services which includes Analytics and Chat box capabilities at a fixed fee per month.
3) The
Company collects commissions when they sell third party hardware and equipment (cashier stations, waiter tablets and printers) to
merchants. During
the three months ended March 31, 2022 and 2021, the Company has generated $ 10,949
and $ 9,240 ,
respectively revenue from this stream. Hardware
sales — the Company generally is involved with the sale of on-premise appliances and end-point devices. The single performance
obligation is to transfer the hardware product (which is to be installed with its licensed software integral to the functionality of
the hardware product). The entire transaction price is allocated to the hardware product and is generally recognized as revenue at the
time of delivery because the customer obtains control of the product at that point in time. It is concluded that control generally transfers
at that point in time because the customer has title to the hardware, physical possession, and a present obligation to pay for the hardware.
Payments for hardware contracts are generally due 30 to 90 days after shipment of the hardware product. The
Company records revenues from the sales of third-party products on a “gross” basis pursuant to ASC Topic 606-10 Revenue Recognition
– Revenue from Contracts with Customers, when the Company controls the specified good before it is transferred to the end customer
and have the risks and rewards as principal in the transaction, such as responsibility for fulfillment, retaining the risk for collection,
and establishing the price of the products. If these indicators have not been met, or if indicators of net revenue reporting specified
in ASC Topic 606-10 are present in the arrangement, revenue is recognized net of related direct costs. Software
subscription fee — The Company’s performance obligation includes providing connectivity to software, generally through a
monthly subscription, where the Company typically satisfies its performance obligations prior to the submission of invoices to the customer
for such services. The Company’s software sale arrangements grant customers the right to access and use the software products which
are to be installed with the relevant hardware for connectivity at the outset of an arrangement, and to be entitled to both technical
support and software upgrades and enhancements during the term of the agreement. The term of the subscription period is generally 12
months, with the automatic renewal of another one year, and the subscription license service is billed monthly, quarterly or annually.
Sales are generally recorded in the month the service is provided. For clients who are billed on an annual basis, deferred revenue is
recorded and amortized over the life of the contract. Payments are generally due 30 to 90 days after delivery of the software licenses. The
Company records its revenues, net of value added taxes (“VAT”), which is levied at the rate of 10% on the invoiced value
of sales. Contract
assets In
accordance with ASC Topic 606-10-45-3, contract asset is when the Company’s right to payment for goods and services already transferred
to a customer if that right to payment is conditional on something other than the passage of time. The Company will recognize a contract
asset when it has fulfilled a contract obligation but must perform other obligations before being entitled to payment. There
were no contract
assets at March 31, 2022 and December 31, 2021. Contract
liabilities In
accordance with ASC Topic 606-10-45-2, a contract liability is Company’s obligation to transfer goods or services to a customer
when the customer prepays consideration or when the customer’s consideration is due for goods and services that the Company will
yet provide whichever happens earlier. Contract
liabilities represent amounts collected from, or invoiced to, customers in excess of revenues recognized, primarily from the billing
of annual subscription agreements. The value of contract liabilities will increase or decrease based on the timing of invoices and recognition
of revenue. The Company’s contract liability balance was $ 18,644
and $ 25,229
at March 31, 2022 and December 31, 2021, respectively. •
Software development costs In
accordance with the relevant FASB accounting guidance regarding the development of software to be sold, leased, or marketed, the Company
expenses such costs as they are incurred until technological feasibility has been established, at and after which time these costs are
capitalized until the product is available for general release to customers. Once the technological feasibility is established per ASC
Topic 985-20, the Company capitalizes costs associated with the acquisition or development of major software for internal and external
use in the balance sheet. Costs incurred to enhance the Company’s software products, after general market release of the services
using the products, is expensed in the period they are incurred. The Company only capitalizes subsequent additions, modifications or
upgrades to internally developed software to the extent that such changes allow the software to perform a task it previously did not
perform. The Company also expenses website costs as incurred. Research
and development expenditures in the development of its own software are charged to operations as incurred. Based on the software development
process, technological feasibility is established upon completion of a working model, which also requires certification and extensive
testing. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general
release are immaterial. For the three months ended March 31, 2022 and 2021, the software development costs were $ 19,548
and $ 30,161 ,
respectively. •
Cost of sales Cost
of sales under online ordering consist of the cost of merchandizes ordered by the consumers and the related shipping and handling costs,
which are directly attributable to the sales of online ordering. Cost
of sales under software sales consist of the cost of software and payroll, which are directly attributable to the sales of software. Cost
of sales under hardware sales consist of the cost of hardware and payroll, which are directly attributable to the sales of hardware. •
Shipping and handling costs No
shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s
suppliers or distributors for merchant POS business. Except
for e-Commerce business, the shipping and handling costs billed to customers are recorded in sales. Shipping costs incurred by the Company
are recorded in cost of sales. •
Sales and marketing Sales
and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel,
and the costs of advertising, promotions, seminars, and other programs. Advertising costs are expensed as incurred. Advertising expense
was $ 196,102 and
$ 900 for
the three months ended March 31, 2022 and 2021, respectively. •
Product warranties The
Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based
upon historical sales trends and warranties provided by the Company’s suppliers, the Company has concluded that no warranty liability
is required as of March 31, 2022 and December 31, 2021. To date, product allowance and returns have been minimal and, based on its experience,
the Company believes that returns of its products will continue to be minimal. •
Income tax The
Company adopted the ASC 740 Income Tax The
estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying
balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred
tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. The
Company and its wholly-owned foreign subsidiary, is subject to income taxes in the jurisdictions in which it operates. Significant judgment
is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax audit
issues based on the Company’s current understanding of the tax law. Where the final tax outcome of these matters is different from
the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination
is made. •
Uncertain tax positions The
Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC
740 provisions of Section 740-10-25 for the three months ended March 31, 2022 and 2021. •
Foreign currencies translation and transactions The
reporting currency of the Company is United States Dollar ("US$") and the accompanying consolidated financial statements have
been expressed in US$. In addition, the Company’s subsidiary is operating in the Republic of Vietnam, Singapore and India and maintains
its books and record in its local currency, Vietnam Dong (“VND”), Singapore Dollar (“SGD”), Indian Rupee (“INR”)
and Philippine Pesos (“PESO”), respectively, which are the functional currency as being the primary currency of the economic
environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries
whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”,
using the exchange rate on the balance sheet date. Shareholders’ equity is translated using the historical rates. Revenues and
expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements
of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of changes
in shareholder’s equity. Translation
of amounts from SGD into US$ has been made at the following exchange rates for the three months ended March 31, 2022 and 2021: Schedule
of Foreign currencies translation and transactions
Schedule of Foreign currencies
translation and transactions
March
31, 2022 March
31, 2021
Period-end
SGD:US$ exchange rate $ 0.73848 $ 0.74317
Period
average SGD:US$ exchange rate $ 0.73928 $ 0.75039 Translation
of amounts from VND into US$ has been made at the following exchange rates for the three months ended March 31, 2022 and 2021:
March
31, 2022 March
31, 2021
Period-end
VND$:US$ exchange rate $ 0.000044 $ 0.000043
Period
average VND$:US$ exchange rate $ 0.000044 $ 0.000043 Translation
of amounts from INR into US$ has been made at the following exchange rates for the three months ended March 31, 2022 and 2021:
March
31, 2022 March
31, 2021
Period-end
INR$:US$ exchange rate $ 0.013218 $ 0.013631
Period
average INR$:US$ exchange rate $ 0.013290 $ 0.013692 Translation
of amounts from PESO into US$ has been made at the following exchange rates for the three months ended March 31, 2022 and 2021:
March
31, 2022 March
31, 2021
Period-end
PESO$:US$ exchange rate $ 0.019278 N/A
Period
average PESO$:US$ exchange rate $ 0.019379 N/A Translation
gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency
are translated, as the case may be, at the rate on the date of the transaction and included in the results of operations as incurred. •
Comprehensive income ASC
Topic 220, “ Comprehensive Income •
Earning per share Basic
per share amounts are calculated using the weighted average shares outstanding during the year, excluding unvested restricted stock units.
The Company uses the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the
treasury stock method, only “in the money” dilutive instruments impact the diluted calculations in computing diluted earnings
per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive
options assuming the proceeds would be used to repurchase shares at average market prices for the years. For
the three months ended March 31, 2022 and 2021, diluted weighted-average common shares outstanding is equal to basic weighted-average
common shares, due to the Company’s net loss position. Hence, no common stock equivalents were included in the computation of diluted
net loss per share since such inclusion would have been antidilutive. Schedule
of computation of diluted net loss per share
Schedule of computation of diluted net loss
per share
Three
months ended March 31,
2022 2021
Net
loss attributable to Society Pass Incorporated $ (6,548,378 ) $ (2,756,980 )
Weighted
average common shares outstanding – Basic and diluted 21,892,111 18,534,000
Net
loss per share – Basic and diluted $ (0.30 ) $ (0.15 ) The
following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding,
because such securities had an antidilutive impact: Schedule
of Common stock issued
Schedule of Common stock issued
Three
months ended March 31, Three
month ended March 31,
2022 2021
Series
A Convertible Preferred Stock (a) — 8,000
Series
B Convertible Preferred Stock — 1,911,000
Series
B-1 Convertible Preferred Stock — 120,000
Series
C Convertible Preferred Stock — 282,750
Series
C-1 Convertible Preferred Stock — 5,014,500
Options
to purchase common stock (b) 1,945,270 —
Warrants
granted to underwriter 3,803,229 —
Warrants
granted with Series C-1 Convertible Preferred Stock (c) 1,068,000 2,945,250
Total
of common stock equivalents 6,816,499 10,281,500
(a) The
Series A the conversion formula is aggregate Stated Value divided by IPO price (State Value for each Series A preferred shares is
$1,000). These are 8,000 shares of Series A Preferred Stock issued and outstanding (10,000 shares are designated Series A). The conversion
formula would be $8 million (the aggregate stated value) divided by IPO price.
(b) The
Board of Directors have approved a 10-years option at an exercise price of $6.49 per share that will be exercisable at any time.
(c) The
expiry date of warrants granted with Series C-1 was extended to June 30, 2022. •
Leases The
Company adopted Topic 842, Leases ROU
assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation
to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on
the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company
generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term
of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives.
The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that
option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. In
accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building,
etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.).
Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based
on the respective relative fair values to the lease components and non-lease components. When
a lease is terminated before the expiration of the lease term, irrespective of whether the lease is classified as a finance lease or
an operating lease, the lessee would derecognize the ROU asset and corresponding lease liability. Any difference would be recognized
as a gain or loss related to the termination of the lease. Similarly, if a lessee is required to make any payments or receives any consideration
when terminating the lease, it would include such amounts in the determination of the gain or loss upon termination. As
of March 31, 2022 and December 31, 2021, the Company recorded the right of use asset of $ 807,869
and $ 627,968
respectively. •
Retirement plan costs Contributions
to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying consolidated
statements of operation as the related employee service is provided. •
Share-based compensation Pursuant
to ASU 2018-07, the Company follows ASC Topic 718, Compensation—Stock Compensation (“ASC 718”), which requires the
measurement and recognition of compensation expense for all share-based payment awards (employee or non-employee), are measured at grant-date
fair value of the equity instruments that an entity is obligated to issue. Restricted stock units are valued using the market price of
the Company’s common shares on the date of grant. The Company uses a Black-Scholes option model to estimate the fair value of employee
stock options at the date of grant. As of March 31, 2022, those shares issued and stock options granted for service compensations were
immediately vested, and therefore these amounts are thus recognized as expense with an offset to preferred or March 31, 2022 and 2021,
the stock-based compensations are recorded in the General and administrative expenses within the Consolidated Statements of Operations
and Other Comprehensive Loss.” •
Common stock awards The
Company grants common stock awards to employees and non-employees in exchange for services provided. The Company measures the fair value
of these awards using the fair value of the services provided or the fair value of the awards granted, whichever is more reliably measurable.
The fair value measurement date of these awards is generally the date the performance of services is complete. The fair value of the
awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the
settlement of services provided is recorded in the general and administrative expenses and charged to the same account as if such settlements
had been made in cash. The fair value of the Common Stock Awards to the Company’s |
