Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41526 | |
Entity Registrant Name | CASTELLUM, INC. | |
Entity Central Index Key | 0001877939 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 27-4079982 | |
Entity Address, Address Line One | 3 Bethesda Metro Center | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 301 | |
Local Phone Number | 961-4895 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | CTM | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,539,342 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash | $ 1,853,388 | $ 2,017,915 |
Accounts receivable | 8,465,979 | 5,414,401 |
Contract asset | 591,055 | |
Prepaid expenses and other current assets | 310,569 | 185,824 |
Total current assets | 10,629,936 | 8,209,195 |
Fixed assets, net | 190,942 | 145,792 |
NON-CURRENT ASSETS: | ||
Deferred tax asset | 610,033 | |
Right of use asset - operating lease | 65,503 | 132,690 |
Intangible assets, net | 7,131,860 | 7,595,599 |
Goodwill | 15,533,964 | 14,062,964 |
Total non-current assets | 22,731,327 | 22,401,286 |
TOTAL ASSETS | 33,552,205 | 30,756,273 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 1,644,838 | 1,437,827 |
Accrued payroll and payroll related expenses | 2,106,252 | 1,511,622 |
Contract liability | 82,583 | |
Due to seller | 591,003 | 200,000 |
Obligation to issue common and preferred stock | 125,000 | 25,000 |
Contingent consideration | 275,000 | |
Contingent earnout | 1,121,000 | 257,000 |
Derivative liabilities | 789,000 | 0 |
Revolving credit facility | 300,025 | |
Current portion of notes payable, net of discount | 1,960,402 | 1,279,390 |
Current portion of lease liability - operating lease | 47,617 | 111,999 |
Total current liabilities | 8,767,720 | 5,097,838 |
NON-CURRENT LIABILITIES | ||
Lease liability - operating lease, net of current portion | 16,743 | 18,715 |
Note payable - related party, net of current portion | 400,000 | 400,000 |
Convertible promissory notes - related parties, net of discount, net of current portion | 696,826 | 2,805,184 |
Notes payable, net of discount, net of current portion | 6,512,019 | 7,112,419 |
Total non-current liabilities | 7,625,588 | 10,336,318 |
Total Liabilities | 16,393,308 | 15,434,156 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value, $0.0001, 150,000,000 shares authorized, 24,788,132 and 19,960,632 issued and outstanding as of September 30, 2022 and December 31, 2021, respectively. | 2,479 | 1,996 |
Additional paid in capital | 37,546,787 | 26,405,126 |
Accumulated deficit | (20,391,341) | (11,086,016) |
Total stockholders' equity | 17,158,897 | 15,322,117 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 33,552,205 | 30,756,273 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock, Value, Issued | 588 | 588 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock, Value, Issued | 307 | 361 |
Series C Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock, Value, Issued | $ 77 | $ 62 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Jul. 19, 2021 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred stock, par value | $ 0.0001 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | 0.0001 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 | |
Common Stock, Shares, Issued | 24,788,132 | 19,960,632 | |
Common stock, shares outstanding | 24,788,132 | 19,960,632 | |
Series A Preferred Stock [Member] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued | 5,875,000 | 5,875,000 | |
Preferred stock, shares outstanding | 5,875,000 | 5,875,000 | |
Series B Preferred Stock [Member] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares issued | 3,075,000 | 3,610,000 | |
Preferred stock, shares outstanding | 3,075,000 | 3,610,000 | |
Series C Preferred Stock [Member] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 770,000 | 620,000 | |
Preferred stock, shares outstanding | 770,000 | 620,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES | $ 11,120,712 | $ 7,378,094 | $ 32,166,104 | $ 15,587,246 |
COST OF REVENUES | 6,474,261 | 4,309,439 | 18,698,820 | 8,921,153 |
GROSS PROFIT | 4,646,451 | 3,068,655 | 13,467,284 | 6,666,093 |
OPERATING EXPENSES | ||||
Indirect costs | 2,130,513 | 738,239 | 7,458,319 | 1,512,370 |
Overhead | 407,804 | 248,540 | 1,167,346 | 431,987 |
General and administrative expenses | 3,297,319 | 6,682,034 | 9,633,064 | 10,389,922 |
Loss from change in fair value of contingent earnout | 864,000 | 0 | 864,000 | 0 |
Total operating expenses | 6,699,636 | 7,668,813 | 19,122,729 | 12,334,279 |
LOSS FROM OPERATIONS BEFORE OTHER INCOME (EXPENSE) | (2,053,185) | (4,600,158) | (5,655,445) | (5,668,186) |
OTHER INCOME (EXPENSE) | ||||
Realized gain on investment | 0 | 0 | 0 | 38,851 |
Gain on disposal of fixed assets | 0 | 0 | 303 | 0 |
Change in fair value of derivative liability | 76,000 | 0 | (97,000) | 0 |
Interest expense, net of interest income | (978,314) | (648,175) | (2,579,915) | (1,838,032) |
Total other income (expense) | (902,314) | (648,175) | (2,676,612) | (1,799,181) |
LOSS FROM OPERATIONS BEFORE BENEFIT FOR INCOME TAXES | (2,995,499) | (5,248,333) | (8,332,057) | (7,467,367) |
BENEFIT FROM INCOME TAXES | (159,025) | 328,735 | (902,820) | 890,995 |
NET LOSS | (3,114,524) | (4,919,598) | (9,234,877) | (6,576,372) |
Less: Preferred Stock Dividends | 29,911 | 3,320 | 70,447 | 3,320 |
NET LOSS TO COMMON SHAREHOLDERS | $ (3,144,435) | $ (4,922,918) | $ (9,305,324) | $ (6,579,692) |
NET LOSS PER SHARE | ||||
Net loss per share, basic | $ (0.12) | $ (0.26) | $ (0.39) | $ (0.38) |
Net loss per share, diluted | $ (0.12) | $ (0.26) | $ (0.39) | $ (0.38) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 25,868,849 | 18,679,462 | 23,621,551 | 17,414,469 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 25,868,849 | 18,679,462 | 23,621,551 | 17,414,469 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement Of Changes In Stockholders' Equity - USD ($) | Total | Series C Preferred Subscription Agreements [Member] | MFSI [Member] | LSG [Member] | Merrison [Member] | SSI [Member] | Warrant | Common Stock | Common Stock Series C Preferred Subscription Agreements [Member] | Common Stock MFSI [Member] | Common Stock LSG [Member] | Common Stock Merrison [Member] | Common Stock SSI [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] Series C Preferred Subscription Agreements [Member] | Additional Paid-in Capital [Member] MFSI [Member] | Additional Paid-in Capital [Member] LSG [Member] | Additional Paid-in Capital [Member] Merrison [Member] | Additional Paid-in Capital [Member] SSI [Member] | Additional Paid-in Capital [Member] Warrant | Subscription Receivables [Member] | Subscription Receivables [Member] Series C Preferred Subscription Agreements [Member] | Accumulated Deficit [Member] | Series A Preferred Preferred Stock | Series B Preferred Preferred Stock | Series C Preferred Preferred Stock | Series C Preferred Preferred Stock Series C Preferred Subscription Agreements [Member] | Series C Preferred Common Stock |
Balance Beginning at Dec. 31, 2020 | $ 2,608,526 | $ 1,541 | $ 6,133,332 | $ (3,527,296) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Beginning, Shares at Dec. 31, 2020 | 15,411,264 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Stock-based compensation - options | 263,610 | 263,610 | ||||||||||||||||||||||||||
Stock-based compensation - warrants | $ 188,186 | $ 188,186 | ||||||||||||||||||||||||||
Net loss for the period | (829,532) | (829,532) | ||||||||||||||||||||||||||
Balance Ending at Mar. 31, 2021 | 2,230,790 | $ 1,541 | 6,585,128 | (4,356,828) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Ending, Shares at Mar. 31, 2021 | 15,411,264 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Balance Beginning at Dec. 31, 2020 | 2,608,526 | $ 1,541 | 6,133,332 | (3,527,296) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Beginning, Shares at Dec. 31, 2020 | 15,411,264 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Net loss for the period | (6,579,692) | |||||||||||||||||||||||||||
Balance Ending at Sep. 30, 2021 | 9,986,471 | $ 1,942 | 20,190,516 | (100,000) | (10,106,988) | $ 588 | $ 361 | $ 52 | ||||||||||||||||||||
Balance Ending, Shares at Sep. 30, 2021 | 19,427,287 | 5,875,000 | 3,610,000 | 520,000 | ||||||||||||||||||||||||
Balance Beginning at Dec. 31, 2020 | 2,608,526 | $ 1,541 | 6,133,332 | (3,527,296) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Beginning, Shares at Dec. 31, 2020 | 15,411,264 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements, Shares | 620,000 | 62,000 | ||||||||||||||||||||||||||
Balance Ending at Dec. 31, 2021 | 15,322,117 | $ 1,996 | 26,405,126 | (11,086,016) | $ 588 | $ 361 | $ 62 | |||||||||||||||||||||
Balance Ending, Shares at Dec. 31, 2021 | 19,960,632 | 5,875,000 | 3,610,000 | 620,000 | ||||||||||||||||||||||||
Balance Beginning at Mar. 31, 2021 | 2,230,790 | $ 1,541 | 6,585,128 | (4,356,828) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Beginning, Shares at Mar. 31, 2021 | 15,411,264 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Shares issued in acquisition | $ 1,782,437 | $ 111 | $ 1,782,326 | |||||||||||||||||||||||||
Shares issued in acquisition, Shares | 1,114,023 | |||||||||||||||||||||||||||
Cancellation of shares in acquisition of MFSI | $ (400,000) | $ (25) | $ (399,975) | |||||||||||||||||||||||||
Cancellation of shares in acquisition of MFSI, Shares | (250,000) | |||||||||||||||||||||||||||
Stock-based compensation - options | 407,271 | 407,271 | ||||||||||||||||||||||||||
Net loss for the period | (827,242) | (827,242) | ||||||||||||||||||||||||||
Balance Ending at Jun. 30, 2021 | 3,193,256 | $ 1,627 | 8,374,750 | (5,184,070) | $ 588 | $ 361 | ||||||||||||||||||||||
Balance Ending, Shares at Jun. 30, 2021 | 16,275,287 | 5,875,000 | 3,610,000 | |||||||||||||||||||||||||
Shares issued in acquisition | $ 1,700,000 | $ 5,149,500 | $ 50 | $ 260 | $ 1,699,950 | $ 5,149,240 | ||||||||||||||||||||||
Shares issued in acquisition, Shares | 500,000 | 2,600,000 | ||||||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements | $ 420,000 | $ 5 | $ 519,943 | $ (100,000) | $ 52 | |||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements, Shares | 52,000 | 520,000 | ||||||||||||||||||||||||||
Stock-based compensation - options | 1,600,217 | 1,600,217 | ||||||||||||||||||||||||||
Stock-based compensation - warrants | 2,846,416 | 2,846,416 | ||||||||||||||||||||||||||
Net loss for the period | (4,922,918) | (4,922,918) | ||||||||||||||||||||||||||
Balance Ending at Sep. 30, 2021 | 9,986,471 | $ 1,942 | 20,190,516 | (100,000) | (10,106,988) | $ 588 | $ 361 | $ 52 | ||||||||||||||||||||
Balance Ending, Shares at Sep. 30, 2021 | 19,427,287 | 5,875,000 | 3,610,000 | 520,000 | ||||||||||||||||||||||||
Balance Beginning at Dec. 31, 2021 | 15,322,117 | $ 1,996 | 26,405,126 | (11,086,016) | $ 588 | $ 361 | $ 62 | |||||||||||||||||||||
Balance Beginning, Shares at Dec. 31, 2021 | 19,960,632 | 5,875,000 | 3,610,000 | 620,000 | ||||||||||||||||||||||||
Shares issued for services, net of amounts prepaid | 6,188 | $ 1 | 6,187 | |||||||||||||||||||||||||
Shares issued for services, net of amounts prepaid, Shares | 7,500 | |||||||||||||||||||||||||||
Shares issued in exercise of stock options | 12,000 | $ 2 | 11,998 | |||||||||||||||||||||||||
Shares issued in exercise of stock options, Shares | 15,000 | |||||||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements | $ 150,000 | $ 2 | $ 149,983 | $ 15 | ||||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements, Shares | 15,000 | 150,000 | ||||||||||||||||||||||||||
Stock-based compensation - options | 875,640 | 875,640 | ||||||||||||||||||||||||||
Stock-based compensation - restricted shares | 30,937 | 30,937 | ||||||||||||||||||||||||||
Net loss for the period | (1,406,715) | (1,406,715) | ||||||||||||||||||||||||||
Balance Ending at Mar. 31, 2022 | 14,990,167 | $ 2,001 | 27,479,871 | (12,492,731) | $ 588 | $ 361 | $ 77 | |||||||||||||||||||||
Balance Ending, Shares at Mar. 31, 2022 | 19,998,132 | 5,875,000 | 3,610,000 | 770,000 | ||||||||||||||||||||||||
Balance Beginning at Dec. 31, 2021 | 15,322,117 | $ 1,996 | 26,405,126 | (11,086,016) | $ 588 | $ 361 | $ 62 | |||||||||||||||||||||
Balance Beginning, Shares at Dec. 31, 2021 | 19,960,632 | 5,875,000 | 3,610,000 | 620,000 | ||||||||||||||||||||||||
Shares issued in acquisition, Shares | 600,000 | |||||||||||||||||||||||||||
Shares issued for services, net of amounts prepaid, Shares | 15,000 | |||||||||||||||||||||||||||
Shares issued in exercise of stock options, Shares | 15,000 | |||||||||||||||||||||||||||
Shares issued for cash in Series C Preferred Subscription Agreements, Shares | 150,000 | 15,000 | ||||||||||||||||||||||||||
Net loss for the period | (9,305,324) | |||||||||||||||||||||||||||
Balance Ending at Sep. 30, 2022 | 17,158,897 | $ 2,479 | 37,546,787 | (20,391,341) | $ 588 | $ 307 | $ 77 | |||||||||||||||||||||
Balance Ending, Shares at Sep. 30, 2022 | 24,788,132 | 5,875,000 | 3,075,000 | 770,000 | ||||||||||||||||||||||||
Balance Beginning at Mar. 31, 2022 | 14,990,167 | $ 2,001 | 27,479,871 | (12,492,731) | $ 588 | $ 361 | $ 77 | |||||||||||||||||||||
Balance Beginning, Shares at Mar. 31, 2022 | 19,998,132 | 5,875,000 | 3,610,000 | 770,000 | ||||||||||||||||||||||||
Shares issued in acquisition | $ 2,280,000 | $ 60 | $ 2,279,940 | |||||||||||||||||||||||||
Shares issued in acquisition, Shares | 600,000 | |||||||||||||||||||||||||||
Shares issued for services, net of amounts prepaid | 11,940 | $ 1 | 11,939 | |||||||||||||||||||||||||
Shares issued for services, net of amounts prepaid, Shares | 7,500 | |||||||||||||||||||||||||||
Shares issued for cash, including fair value adjustment | 593,000 | $ 125 | 592,875 | |||||||||||||||||||||||||
Shares issued for cash, including fair value adjustment , Shares | 1,250,000 | |||||||||||||||||||||||||||
Shares issued for commitment fees | 59,300 | $ 12 | 59,288 | |||||||||||||||||||||||||
Shares issued for commitment fees, Shares | 125,000 | |||||||||||||||||||||||||||
Shares issued to satisfy obligation to issue common stock | 533,750 | $ 13 | 533,737 | |||||||||||||||||||||||||
Shares issued to satisfy obligation to issue common stock, Shares | 132,500 | |||||||||||||||||||||||||||
Common shares issued in conversion of Series B Preferred Stock | $ 267 | (213) | $ (54) | |||||||||||||||||||||||||
Common shares issued in conversion of Series B Preferred Stock, Shares | 2,675,000 | (535,000) | ||||||||||||||||||||||||||
Stock-based compensation - options | 1,117,335 | 1,117,335 | ||||||||||||||||||||||||||
Stock-based compensation - warrants | 1,603,219 | $ 1,603,219 | ||||||||||||||||||||||||||
Stock-based compensation - restricted shares | 30,938 | 30,938 | ||||||||||||||||||||||||||
Gain on extinguishment of related party convertible note | 2,667,903 | 2,667,903 | ||||||||||||||||||||||||||
Net loss for the period | (4,754,175) | (4,754,175) | ||||||||||||||||||||||||||
Balance Ending at Jun. 30, 2022 | 19,133,377 | $ 2,479 | 36,376,832 | (17,246,906) | $ 588 | $ 307 | $ 77 | |||||||||||||||||||||
Balance Ending, Shares at Jun. 30, 2022 | 24,788,132 | 5,875,000 | 3,075,000 | 770,000 | ||||||||||||||||||||||||
Stock-based compensation - options | 1,139,018 | 1,139,018 | ||||||||||||||||||||||||||
Stock-based compensation - warrants | ||||||||||||||||||||||||||||
Stock-based compensation - restricted shares | 30,937 | 30,937 | ||||||||||||||||||||||||||
Gain on extinguishment of related party convertible note | ||||||||||||||||||||||||||||
Net loss for the period | (3,144,435) | (3,144,435) | ||||||||||||||||||||||||||
Balance Ending at Sep. 30, 2022 | $ 17,158,897 | $ 2,479 | $ 37,546,787 | $ (20,391,341) | $ 588 | $ 307 | $ 77 | |||||||||||||||||||||
Balance Ending, Shares at Sep. 30, 2022 | 24,788,132 | 5,875,000 | 3,075,000 | 770,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOW FROM OPERATING ACTIVIITES | ||
Net loss | $ (9,234,877) | $ (6,576,372) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 1,520,329 | 1,126,047 |
Amortization of discounts, premium and deferred costs | 1,869,152 | 1,342,181 |
Stock-based compensation | 4,906,152 | 5,305,700 |
Deferred tax provision | 610,033 | (1,025,852) |
Gain (Loss) on Disposition of Assets | (303) | |
Financing fee and bank charges for note payable and advances on revolving credit line | 3,775 | |
Realized gain on investment | 0 | (38,851) |
Lease cost | 833 | 476 |
Legal fees paid out of proceeds from a note payable | 30,000 | |
Change in fair value of contingent earnout | 864,000 | |
Change in fair value of derivative liability | 97,000 | |
Changes in assets and liabilities | ||
Accounts receivable | (2,637,969) | 144,601 |
Prepaid expenses and other current assets | (58,051) | (2,014) |
Contract asset (liability) | 673,638 | (569,610) |
Payment of transaction costs in acquisition of SSI | 0 | (50,500) |
Accounts payable and accrued expenses | 801,641 | 511,806 |
Net cash (used in) provided by operating activities | (554,647) | 167,612 |
CASH FLOWS FROM INVESTING ACTIVITES | ||
Cash paid in acquisition of LSG | (250,000) | |
Sale of investment | 365,572 | |
Purchase of fixed assets | (92,436) | (5,346) |
Net cash (used in) provided by investing activities | (342,436) | 835,989 |
CASH FLOWS FROM FINANCING ACTIVITES | ||
Proceeds from revolving credit line | 300,000 | |
Proceeds from issuance of preferred and common stock | 625,000 | 420,000 |
Proceeds from notes payable | 1,470,000 | |
Preferred stock dividend | (70,449) | (3,320) |
Proceeds from exercise of stock options | 12,000 | |
Repayment of convertible note payable - related parties | (500,000) | (70,000) |
Repayment of amounts due to seller | (160,000) | |
Repayment of line of credit, net | (3,460) | |
Repayment of note payable | (943,995) | (104,244) |
Net cash provided by financing activities | 732,556 | 238,976 |
NET (DECREASE) INCREASE IN CASH | (164,527) | 1,242,577 |
CASH - BEGINNING OF PERIOD | 2,017,915 | 2,412,382 |
CASH - END OF PERIOD | 1,853,388 | 3,654,959 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest expense | 559,234 | 474,414 |
Cash paid for income taxes | 16,400 | |
SUMMARY OF NON-CASH ACTIVITIES: | ||
Debt discount on note payable applied to obligation to issue common stock | 500,000 | |
Adjustment to contingent consideration and customer relationships | 275,000 | |
Gain on extinguishment of convertible note payable - related party applied to APIC | 2,667,903 | |
Common shares issued for obligation to issue common stock | 533,750 | |
Derivative liability recognized as discount of note payable | 692,000 | |
Deferred issuance costs recognized for note payable | 59,300 | |
Fair value adjustment recognized on issuance of common stock in Securities Purchase Agreement | 93,000 | |
Common shares issued in conversion of Series B Preferred shares | $ 5,350 | |
Cancellation of shares offsetting acquisition of MFSI | 400,000 | |
MFSI [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITES | ||
Cash received in acquisition | 93,240 | |
Merrison [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITES | ||
Cash received in acquisition | 183,588 | |
SSI [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITES | ||
Cash received in acquisition | $ 198,935 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | NOTE 1: NATURE OF OPERATIONS Castellum, Inc. (the “Company”) is focused on acquiring and growing technology companies in the areas of information technology, electronic warfare, information warfare and cybersecurity with businesses in the governmental and commercial markets. Services include intelligence analysis, software development, software engineering, program management, strategic planning, information assurance and cybersecurity and policy along with analysis support. These services, which largely focus on securing data and establishing related policies, are applicable to customers in the federal government, financial services, healthcare and other users of large data applications. The services can be delivered to legacy, customer owned networks or customers who rely upon cloud-based infrastructures. The Company has worked with multiple business brokers and contacts within its business network to identify potential acquisitions. S · Corvus Consulting, LLC (“Corvus”), · Mainnerve Federal Services, Inc. dba MFSI Government Group (“MFSI), · Merrison Technologies, LLC (“Merrison”), · Specialty Systems, Inc. (“SSI”), · the business assets of Pax River from The Albers Group (“Pax River”), and · Lexington Solutions Group, LLC (“LSG”). With the exception of Pax River, all of these acquisitions were considered business combinations under Topic 805 Business Combinations On July 19, 2021, the Company filed a Certificate of Amendment with the State of Nevada to change the par value of all common and preferred stock to be $0.0001. All changes to the par value dollar amount for these classes of stock and adjustment to additional paid in capital have been made retroactively. On April 7, 2022, the Company filed a Certificate of Amendment for its Series A Preferred Stock to (a) provide for an annualized dividend of $0.0125 per share to be paid monthly; (b) amend the conversion ratio for each share of Series A Preferred Stock to convert into 2 shares of common stock instead of 20 shares of common stock; and (c) providing for the Company to have the option to repurchase the Series A Preferred Stock at any time at a price of $1 per share. The events related to COVID-19, the disease caused by the novel coronavirus (SARS-CoV-2) and its variants, have had significant health, economic, and market impacts and may have short-term and long-term adverse effects on our business that we cannot predict as the global pandemic continues to evolve. The extent and effectiveness of responses by governments and other organizations also cannot be predicted. Our ability to access the capital markets and maintain existing operations has been little affected during the COVID-19 pandemic. Going forward any possible adverse effects on the business are uncertain given any possible limitations on available financing and how we conduct business with our customers and vendors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The interim condensed consolidated financial statements of the Company and its subsidiaries and the accompanying notes included in this Quarterly Report are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the condensed consolidated financial statements have been included. Such adjustments are of a normal, recurring nature. The unaudited interim condensed consolidated financial statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The condensed consolidated financial statements include the accounts of Castellum, Inc. and its subsidiaries, collectively referred to as “the Company”. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company owns 100% of the equity interests of each of its subsidiaries. The excess of the consideration paid over the net assets acquired in these business combinations was first attributed to identified intangible assets with the remainder being applied to goodwill. All goodwill other than that acquired in the acquisition of LSG is not deductible for tax purposes. The LSG-related goodwill is tax deductible. On October 13, 2022, the Company completed a $3,000,000 public offering, a 1:20 reverse stock split of its common shares, and an uplisting to the NYSE American exchange. All share and per share figures related to the common stock, have been retroactively adjusted in accordance with SEC Staff Accounting Bulletin (SAB) Topic 4C. Business Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions. The Company maintains one operating and reportable segment, which is the delivery of products and services in the areas of information technology, electronic warfare, information warfare , Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, management’s estimate of provisions required for uncollectible accounts receivable, the acquired value of the intangible assets, impaired value of intangible assets, liabilities to accrue, cost incurred in the satisfaction of performance obligations, fair value for consideration elements of business combinations, permanent and temporary differences related to income taxes and determination of the fair value of stock awards. Actual results could differ from those estimates. Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers The Company accounts for a contract with a customer that is within the scope of this Topic only when the five steps of revenue recognition under ASC 606 are met. The five core principles will be evaluated for each service provided by the Company and is further supported by applicable guidance in ASC 606 to support the Company’s recognition of revenue. Revenue is derived primarily from services provided to the Federal government. The Company enters into agreements with customers that create enforceable rights and obligations and for which it is probable that the Company will collect the consideration to which it will be entitled as services and solutions are transferred to the customer. The Company also evaluates whether two or more agreements should be accounted for as one single contract. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. The Company estimates variable consideration as the most likely amount to which the Company expects to be entitled limited to the extent that it is probable that a significant reversal will not occur in a subsequent period. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. For most contracts, the customers require the Company to perform several tasks in providing an integrated output and, hence, each of these contracts are deemed as having only one performance obligation. When contracts are separated into multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. This evaluation requires professional judgment, and it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, the Company generally uses the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between when payment by the client and the transfer of promised services to the client occur will be less than one year. The Company currently generates its revenue from three different types of contractual arrangements: cost plus fixed fee (“CPFF”), firm-fixed-price contracts (“FFP”) and time-and-materials (“T&M”) contracts. The Company generally recognizes revenue over time as control is transferred to the customer, based on the extent of progress towards satisfaction of the performance obligation. The selection of the method used to measure progress requires judgment and is dependent on the contract type and the nature of the goods or services to be provided. For CPFF contracts, the Company uses input progress measures to derive revenue based on hours worked on contract performance as follows: direct costs plus Defense Contract Audit Agency (“ DCAA ”) approved provisional burdens plus fee. The provisional indirect rates are adjusted and billed at actual at year end. Revenue from FFP contracts is generally recognized ratably over the contract term, using a time-based measure of progress, even if billing is based on other metrics or milestones, including specific deliverables. For T&M contracts, the Company uses input progress measures to estimate revenue earned based on hours worked on contract performance at negotiated billing rates, plus direct costs and indirect cost burdens associated with materials and the direct expenses incurred in performance of the contract. These arrangements generally qualify for the “right-to-invoice” practical expedient where revenue is recognized in proportion to billable consideration. FFP Level-Of-Effort contracts are substantially similar to T&M contracts except that the Company is required to deliver a specified level of effort over a stated period. For these contracts, the Company estimates revenue earned using contract hours worked at negotiated bill rates as the Company delivers the contractually required workforce. Revenue generated by Contract Support Service contracts is recognized over time as services are provided, based on the transfer of control. Revenue generated by FFP contracts is recognized over time as performance obligations are satisfied. Most contracts do not contain variable consideration and contract modifications are generally minimal. For these reasons, there is not a significant impact of electing these transition practical expedients. Revenue generated from contracts with Federal, state, and local governments, from these contracts is recorded over time, rather than at a point in time. Under the Contract Support Services contracts, the Company performs software design work as it is assigned by the customer, and bills the customer, generally semi-monthly, on either a CPFF or T&M basis, as labor hours are expended. Certain other government contracts for software development have specific deliverables and are structured as FFP contracts, which are generally billed as the performance obligations under the contract are met. Revenue recognition under FFP contracts require judgment to allocate the transaction price to the performance obligations. Contracts may have terms up to five years. Contract accounting requires judgment relative to assessing risks and estimating contract revenue and costs and assumptions for schedule and technical issues. Due to the size and nature of contracts, estimates of revenue and costs are subject to a number of variables. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization and determining whether realization is probable. Estimates of total contract revenue and costs are continuously monitored during the term of the contract and are subject to revision as the contract progresses. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. The Company accounts for contract costs in accordance with ASC Topic 340-40, Contracts with Customers The following table disaggregates the Company’s revenue by contract type for the nine months ended September 30: 2022 2021 Revenue: Time and material $ 17,924,100 $ 10,860,224 Firm fixed price 3,607,597 2,820,041 Cost plus fixed fee 10,634,407 1,837,869 Other - 69,112 Total $ 32,166,104 $ 15,587,246 Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of certain of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Valuations derived from various models are subject to ongoing internal and external verification and review. The model used incorporates market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” Under current GAAP, an equity-linked financial instrument that otherwise is not required to be classified as a liability under the guidance Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging Generally, for warrants and conversion options embedded in financial instruments that are deemed to have a debt host (assuming the underlying shares are readily convertible to cash or the contract provides for net settlement such that the embedded conversion option meets the definition of a derivative). This results in a reporting entity being required to classify the freestanding financial instrument or the bifurcated conversion option as a liability, which the entity must measure at fair value initially and at each subsequent reporting date. The amendments in this Update revise the guidance for instruments with embedded features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity Accounting for Income Taxes Income taxes are accounted for under the asset and liability method. We estimate our income taxes in each of the jurisdictions where the Company operates. This process involves estimating our current tax expense or benefit together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When assessing the realizability of deferred tax assets, we consider if it is more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment, we consider the availability of loss carryforwards, projected reversals of deferred tax liabilities, projected future taxable income, and ongoing prudent and feasible tax planning strategies. We are subject to income taxes in the federal and state tax jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. Management evaluates its tax positions on a quarterly basis. The Company files income tax returns in the US Federal tax jurisdiction and various state tax jurisdictions. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service (“IRS”) and state taxing authorities, generally for three years after they were filed. Share-Based Compensation The Company follows ASC 718 Compensation – Stock Compensation Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting The Company adopted ASU 2016-09 Improvements to Employee Share-Based Payment Accounting Fair Value of Financial Instruments ASC 825 Financial Instruments Earnings (Loss) Per Share of Common Stock Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding , as well as a warrant to purchase 1,080,717 shares of common stock for a total aggregate exercise price of $1 granted in connection with the $5,600,000 note payable maturing September 30, 2024, as the cash consideration for the holder/grantee to receive common shares was determined to be nonsubstantive . Diluted earnings per share (“EPS”) include additional dilution from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options and all other warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented, so only the basic weighted average number of common shares are used in the computations. The Company subtracts dividends on preferred stock when calculating earnings (loss) per share. Recent Accounting Pronouncements The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | NOTE 3: ACQUISITIONS The Company has completed the following acquisitions to achieve its business purposes as discussed in Note 1. As the acquisitions made by the Company in 2021 and 2022 were of the common stock or membership interests of the companies, certain assets in some of the acquisitions (intangible assets and goodwill) are not considered deductible for tax purposes. MFSI The Company entered into a definitive merger agreement with MFSI, effective as of January 1, 2021. This acquisition closed on February 11, 2021. This acquisition was accounted for as a business combination whereby MFSI became a 100% owned subsidiary of the Company. The following represents the assets and liabilities acquired in this acquisition: Cash $ 93,240 Accounts receivable 33,540 Unbilled receivable 45,316 Other assets 329,509 Right of use asset – operating lease 14,862 Customer relationships 348,000 Non-compete agreement 4,000 Goodwill 685,072 Deferred tax liability (97,419 ) Line of credit (12,249 ) Lease liability – operating lease (13,862 ) Accounts payable and accrued expenses (47,572 ) Net assets acquired $ 1,382,437 The consideration paid for the acquisition of MFSI was as follows: Common stock $ 1,382,437 The MFSI acquisition has been accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the MFSI acquisition, and historical and current market data. The excess of the purchase price over the total of the estimated fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed is recognized as goodwill. In order to determine the fair values of tangible and intangible assets acquired and liabilities assumed for MFSI, we have engaged a third-party independent valuation specialist. The Company had estimated the preliminary purchase price allocations based on historical inputs and data as of January 1, 2021. The Company had a valuation prepared by an independent consultant. Upon the finalization of the valuation of MFSI, the Company reclassified $352,000 from goodwill into other intangible assets. There were no transactions costs that were material to this transaction. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The Company had reclassified a portion of the goodwill upon the finalization of an independent valuation report during the year ended December 31, 2021. Merrison The Company entered into a definitive merger agreement with Merrison, effective as of August 5, 2021. This acquisition was accounted for as a business combination whereby Merrison became a 100% owned subsidiary of the Company. The following represents the assets and liabilities acquired in this acquisition: Cash $ 183,588 Accounts receivable and unbilled receivables 391,049 Customer relationships 322,000 Non-compete agreements 7,000 Trademarks 164,000 Backlog 115,000 Goodwill 780,730 Deferred tax liability (243,730 ) Accounts payable and accrued expenses (102,354 ) Net assets acquired $ 1,617,283 The consideration paid for the acquisition of Merrison was as follows: Common stock $ 1,595,000 Cash 22,283 $ 1,617,283 The Merrison acquisition has been accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the Merrison acquisition, and historical and current market data. The excess of the purchase price over the total of the estimated fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed is recognized as goodwill. In order to determine the fair values of tangible and intangible assets acquired and liabilities assumed for Merrison, we have engaged a third-party independent valuation specialist. The Company had estimated the preliminary purchase price allocations based on historical inputs and data as of August 5, 2021. The preliminary allocation of the purchase price is based on the best information available and is pending, amongst other things: (i) the finalization of the valuations and useful lives for the intangible assets acquired; (ii) finalization of the valuation of accounts payable and accrued expenses; and (iii) finalization of the fair value of non-cash consideration. Upon finalization of the valuation, the Company allocated $608,000 from goodwill to other intangible assets. There was a $105,000 adjustment in total purchase consideration upon finalization of the valuations that was applied to goodwill. There were no transaction costs that were material to this transaction. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The Company had reclassified a portion of the goodwill upon the finalization of an independent valuation report during the year ended December 31, 2021. There have been no additional adjustments in the nine months ended September 30, 2022. Pax River The Company entered into an acquisition agreement with The Albers Group, LLC, on October 22, 2021 which closed November 16, 2021 for certain assets represented by the Pax River business. This acquisition was accounted for as an asset purchase by the Company. The following represents the assets acquired in this acquisition: Customer relationships (contracts) (a) $ 2,400,000 Net assets acquired $ 2,400,000 The consideration paid for the acquisition of The Albers Group assets was as follows: Common stock $ 1,925,000 Contingent consideration represented by obligation to issue shares (a) 275,000 Cash (included in amounts due to seller as of December 31, 2021) (b) 200,000 $ 2,400,000 (a) It was determined that on March 31, 2022, that the requirements under section 1.5(b) of the acquisition agreement had not been achieved, and as a result the contingent consideration to issue the additional 68,750 (b) As of September 30, 2022, $160,000 was paid to the seller and the balance owed as of September 30, 2022 is $40,000. Lexington Solutions Group (“LSG”) On April 15, 2022, the Company entered into Amendment No. 1 to Business Acquisition Agreement (“LSG Business Acquisition Agreement”) with LSG to acquire the assets of LSG. This LSG Business Acquisition Agreement superseded the Business Acquisition Agreement originally entered into on February 11, 2022. Under the terms of the LSG Business Acquisition Agreement, the Company acquired assets and assumed liabilities of LSG for consideration as follows: (a) 625,000 shares of common stock (600,000 shares paid at closing (issued on May 4, 2022) and 25,000 shares to be held and due within three business days of payment of the second tranche of cash described below); and (b) cash payments as follows: $250,000 due at closing (“initial cash payment”); $250,000 plus or minus any applicable post-closing adjustments paid on the date that is six months after the closing date (“second tranche”) (paid in October 2022); and $280,000 that is due no later than December 31, 2022. The following represents the assets and liabilities acquired in this acquisition: Receivable from Seller $ 413,609 Due from Employee/Travel Advance 5,000 Miscellaneous license 2,394 Customer relationships 785,000 Non-compete agreements 10,000 Backlog 489,000 Goodwill 1,471,000 Net assets acquired $ 3,176,003 The consideration paid for the acquisition of LSG was as follows: Common stock (600,000 shares issued May 4, 2022) $ 2,280,000 Holdback shares (25,000 shares due six months after the closing date) (in obligation to issue common stock) 95,000 Cash 250,000 Due to seller (cash) 551,003 $ 3,176,003 The LSG acquisition has been accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the LSG acquisition, and historical and current market data. The excess of the purchase price over the total of the estimated fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed is recognized as goodwill. To determine the fair values of tangible and intangible assets acquired and liabilities assumed for LSG, we have engaged a third-party independent valuation specialist. The Company had received a valuation from its specialist and recorded the value of the assets and liabilities acquired based on historical inputs and data as of April 15, 2022. The allocation of the purchase price is based on the best information available. The Company paid $44,752 in transaction costs of LSG. During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. There have been no adjustments in the nine months ended September 30, 2022. For all acquisitions disclosed, there were no transaction costs that were not recognized as an expense. The following table shows unaudited pro-forma results for the nine months ended September 30, 2022 and 2021, as if the acquisitions of Merrison, SSI, and LSG had occurred on January 1, 2021. These unaudited pro forma results of operations are based on the historical financial statements of each of the companies. For the nine months ended September 30, 2022 Revenues $ 33,685,580 Net loss $ (7,843,711 ) Net loss per share - basic $ (0.33 ) For the nine months ended September 30, 2021 Revenues $ 20,333,508 Net loss $ (127,660 ) Net loss per share - basic $ (0.00 ) During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The Company had reclassified a portion of the goodwill upon the finalization of an independent valuation report during the year ended December 31, 2021. There have been no additional adjustments in the nine months ended September 30, 2022. SSI The Company entered into a definitive merger agreement with SSI, effective as of August 12, 2021. This acquisition was accounted for as a business combination whereby SSI became a 100% owned subsidiary of the Company. The following represents the assets and liabilities acquired in this acquisition: Cash $ 998,935 Accounts receivable and unbilled receivables 2,222,004 Prepaid expenses 147,600 Other asset 6,750 Furniture and equipment 148,931 Right of use asset – operating lease 169,063 Customer relationships 3,102,000 Non-compete agreements 65,000 Trademarks 367,000 Backlog 50,000 Goodwill 8,461,150 Deferred tax liability (880,150 ) Lease liability – operating lease (167,333 ) Contract liability (226,591 ) Accounts payable and accrued expenses (1,134,509 ) Net assets acquired $ 13,329,850 Total consideration for the acquisition of SSI was as follows: Common stock $ 7,872,850 Seller note 400,000 Cash 800,000 Contingent earnout 257,000 Lender financing 4,000,000 $ 13,329,850 The SSI acquisition has been accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total acquisition consideration price was allocated to the assets acquired and liabilities assumed based on their preliminary estimated fair values. The fair value measurements utilize estimates based on key assumptions of the SSI acquisition, and historical and current market data. The excess of the purchase price over the total of the estimated fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed is recognized as goodwill. In order to determine the fair values of tangible and intangible assets acquired and liabilities assumed for SSI, we have engaged a third-party independent valuation specialist. The Company had estimated the preliminary purchase price allocations based on historical inputs and data as of August 12, 2021. The preliminary allocation of the purchase price is based on the best information available and is pending, amongst other things: (i) the finalization of the valuations and useful lives for the intangible assets acquired; (ii) finalization of the valuation of accounts payable and accrued expenses; and (iii) finalization of the fair value of non-cash consideration as well as any earnout to be paid out in cash if achieved by the Company per the merger agreement. Upon finalization of the valuation, the Company allocated $3,584,000 from goodwill to other intangible assets. The Company paid $50,500 in transaction costs of SSI. There was a $2,608,661 adjustment in total purchase consideration upon finalization of the valuations that was applied to goodwill. |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 4: FIXED ASSETS Fixed assets consisted of the following as of September 30, 2022 (unaudited) and December 31, 2021: September 30, 2022 December 31, 2021 Equipment $ 96,986 $ 60,148 Furniture 32,574 32,574 Software 44,746 - Leasehold improvements 83,266 75,265 Total fixed assets 257,572 167,987 Accumulated depreciation (66,630 ) (22,195 ) Fixed assets, net $ 190,942 $ 145,792 Depreciation expense for the nine months ended September 30, 2022, and 2021 was $47,589 and $7,329, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | NOTE 5: INTANGIBLE ASSETS AND GOODWILL Intangible assets consisted of the following as of September 30, 2022 (unaudited) and December 31, 2021: September 30, 2022 December 31, Customer relationships 4.5– 15 years $ 9,535,000 $ 9,025,000 Trade name 4.5 years 266,000 266,000 Trademark 10-15 years 533,863 533,863 Backlog 2-5 years 1,436,000 947,000 Non-compete agreement 3-5 years 684,000 674,000 12,454,863 11,445,863 Accumulated amortization (5,323,003 ) (3,850,264 ) Intangible assets, net $ 7,131,860 $ 7,595,599 The intangible assets with the exception of the trademarks were recorded as part of the acquisitions of Corvus, MFSI, Merrison, SSI, and LSG. Amortization expense for the nine months ended September 30, 2022 and 2021, was $1,472,740 and $1,123,590, respectively, and the intangible assets are being amortized based on the estimated future lives as noted above. On March 31, 2022, $275,000 of customer relationships was adjusted for the contingent consideration that is no longer required to be paid for the acquisition related to The Albers Group. Future amortization of the intangible assets for the next five years as of September 30 are as follows: September 30, 2023 $ 1,969,588 September 30, 2024 1,653,245 September 30, 2025 985,482 September 30, 2026 721,751 September 30, 2027 526,950 Thereafter 1,274,844 Total $ 7,131,860 The activity of goodwill for the nine months ended September 30, 2022 (unaudited) and year ended December 31, 2021, is as follows: 2022 2021 Balance – beginning of period $ 14,062,964 $ 4,136,011 Additions 1,471,000 9,926,953 Disposals - - Impairment - - $ 15,533,964 $ 14,062,964 When the Company acquires a controlling financial interest through a business combination, the Company uses the acquisition method of accounting to allocate the purchase consideration to the assets acquired and liabilities assumed, which are recorded at fair value. Any excess of purchase consideration over the net fair value of the net assets acquired is recognized as goodwill. The additions of goodwill in the respective periods relate to the acquisitions made by the Company. The Company has not disposed of any entities, nor has the Company recognized impairment on the goodwill in these periods. |
Convertible Promissory Notes -
Convertible Promissory Notes - Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes Payable [Abstract] | |
Convertible Promissory Notes – Related Parties | NOTE 6: CONVERTIBLE PROMISSORY NOTES – RELATED PARTIES The Company entered into convertible promissory notes – related parties as follows as of September 30, 2022 (unaudited) and December 31, 2021: September December Convertible note payable with a trust related to one of the Company’s directors, convertible at $0.26 per share, at 5% interest (extinguished on April 4, 2022 for new note) (a) $ - 4,209,617 Convertible note payable with a trust related to one of the Company’s directors, convertible at $0.26 per share, at 5% interest (amended April 4, 2022) 3,709,617 - Total Convertible Notes Payable – Related Parties $ 3,709,617 $ 4,209,617 Add: Premiums recorded on convertible note due to fair value adjustment at date of acquisition of Corvus - 2,569 Less: BCF Discount (3,012,791 ) (1,407,002 ) $ 696,826 $ 2,805,184 Interest expense which includes amortization of discount and premium for the nine months ended September 30, 2022 and 2021 was $1,205,123 and $1,218,979, respectively. Accrued interest on the notes payable at September 30, 2022 is $110,749. The amount of the BCF discount recorded was evaluated for characteristics of liability or equity and was determined to be equity under ASC 470 and ASC 480. The Company recognized this as additional paid in capital, and the discount is being amortized over the life of the note. (a) On February 1, 2021, the two promissory notes with The Buckhout Charitable Remainder Trust (Laurie Buckhout – Trustee), were combined into one new note in the principal balance of $4,279,617, that has a new maturity date of February 1, 2024. The interest rate remains at 5% per annum, and the note now includes monthly principal payments of $10,000. The conversion terms have remained at $0.26 per share. It was determined that under ASC 470, the debt amendment was considered a modification. Then again on August 12, 2021, the convertible note was amended to remove the principal payments and extend the debt further to September 30, 2024. It was determined that under ASC 470, the debt amendment was considered an extinguishment. The result of the extinguishment netted a gain of $2,667,903 that was recorded as additional paid in capital as the transaction was with a related party. On April 4, 2022, the Company entered into a letter agreement with The Buckhout Charitable Remainder Trust (Laurie Buckhout – Trustee) whereby the Company made a partial repayment of $500,000 (“First Payment”) to reduce the note from $4,209,617 to $3,709,617. originally intended to make a second payment (“Second Payment”) of $2,709,617 at the time of an anticipated secondary offering, initially expected to occur on or about August 1, 2022, subject to extensions through October 31, 2022. However, given the timing of our secondary offering, the Second Payment did not occur during the third quarter of 2022 and the Company negotiated an extension to October 31, The Company shall accrue interest commencing March 1, 2022, however, no payment of interest is due through October 31, 2022. The First Payment of $500,000 was paid from proceeds from Crom Cortana Fund, LLC (“Crom”) as part of a unit agreement under the Securities Purchase Agreement (“SPA”) entered into with Crom on April 4, 2022. Refer to subsequent events in Note 17 under Part 1, Item 1, Unaudited Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional payment details. The Company entered into an Amended and Restated Convertible Promissory Note (issued on April 4, 2022) (“Amendment #2 – BCT”) which summarizes the terms of the letter agreement. As the amendment resulted in an accounting extinguishment, the remaining note balance along with all unamortized discounts and premiums associated with the note were extinguished with the resulting gain being reflected in additional paid in capital as this is a related party transaction. The Company recorded the Amendment #2 – BCT and the discount on April 4, 2022, and amortizing the discount through the life of the note based on the effective interest method. The entire convertible promissory note – related parties balance is reflected in long-term liabilities . |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2022 | |
Notes Payable [Abstract] | |
Notes Payable | NOTE 7: NOTES PAYABLE The Company entered into notes payable as follows as of September 30, 2022 (unaudited) and December 31, 2021: September December Note payable at 7% originally due November 2023, now maturing September 30, 2024 (a) $ 5,600,000 $ 5,600,000 Note payable at 10% interest dated February 28, 2022 and matures the earlier of (i) September 30, 2024 or (ii) the acceleration of the obligations as contemplated under the promissory note including the successful completion of an equity offering of at least $15,000,000 (b) 500,000 - Convertible note payable, convertible at $1.60 per share, at 7%, maturing April 4, 2023 (c) 1,050,000 - Term note payable , at prime plus 3% interest , applied on a deferred basis (7.75% at September 30, 2022 and 6.25% at December 31, 2021) maturing August 11, 2024 2,644,280 3,588,374 0 Total Notes Payable 9,794,380 9,188,374 Less: Debt Discount (1,321,959 ) (796,565 ) $ 8,472,421 $ 8,391,809 (a) on August 12, 2021, the note payable was amended to extend the debt to September 30, 2024. It was determined that under ASC 470, the debt amendment was considered a modification. (b) on February 28, 2022, the Company was obligated to issue 125,000 shares of common stock as further consideration for making this loan to the Company. The shares were issued in April 2022. (c) on April 4, 2022, the Company entered into a Securities Purchase Agreement (“SPA”) with Crom. The SPA includes (a) a Convertible Promissory Note dated April 4, 2022 in the amount of $1,050,000 at 7% interest per annum. This note matures April 4, 2023 (one-year) and is convertible at a conversion price of $1.60 per share; (b) the issuance of 656,250 warrants that mature April 4, 2027, with an exercise price of $1.84 per share; and (c) the issuance of 1,250,000 common shares at $0.40 per share ($500,000), the proceeds of which were paid to The Buckhout Charitable Remainder Trust for the First Payment. In addition, Crom was issued 125,000 common shares as further inducement to enter into the SPA. The Company analyzed the debt instrument with Crom, under ASC 815-10, and determined that the conversion option should be separated from the host debt instrument (i.e., bifurcated) and classified as a derivative liability, along with the value of the warrants as a derivative liability at the inception date of April 4, 2022. The fair value of the derivative liabilities at inception were reflected as a discount on the note, along with an original issue discount of $50,000, and the discount of $93,000 on the 1,250,000 shares of common stock issued to Crom that had a fair value of $593,000 which exceeded the $500,000 paid by Crom that will be amortized over the life of the note (one year). The derivative liability is marked to market each reporting period, and the Company recognized a loss on the change in fair value of the derivative liabilities of $173,000 from April 4, 2022 to September 30, 2022. Interest expense which includes amortization of discount for the nine months ended September 30, 2022 and 2021 was $1,325,885 and $608,706, respectively. Accrued interest on the notes payable as of September 30, 2022 is $27,525. The note payable repayment schedule, net of discounts for the next three years as of September 30 is as follows: September 30, 2023 $ 1,960,121 September 30, 2024 6,512,300 Total $ 8,472,421 |
Note Payable - Related Party
Note Payable - Related Party | 9 Months Ended |
Sep. 30, 2022 | |
NOTE PAYABLE RELATED PARTY [Abstract] | |
Note Payable - Related Party | NOTE 8: NOTE PAYABLE – RELATED PARTY The Company entered into a note payable with a related party in August 2021 with balances as of September 30, 2022 (unaudited) and December 31, 2021, as follows: September 30, December 31, Note payable at 5% due December 31, 2024, in connection with the acquisition of SSI $ 400,000 $ 400,000 Interest expense for the nine months ended September 30, 2022 and 2021 was $14,959 and $2,685, respectively. The entire note payable – related party balance is reflected in long-term liabilities. |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | NOTE 9: REVOLVING CREDIT FACILITY On April 4, 2022, the Company secured a $950,000 revolving credit facility with Live Oak Bank (“Revolving Credit Facility”) . The Revolving Credit Facility matures on March 28, 2029, and draws on it are charged interest at the rate of prime plus 2.75% per annum. Interest is payable monthly. On April 12, 2022, the Company was advanced $300,025 under the Revolving Credit Facility . The Company incurred $19,351 in interest in the nine months ended September 30, 2022, of which $11,971 is accrued for as of September 30, 2022. |
Due To Seller
Due To Seller | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Due To Seller | NOTE 10: DUE TO SELLER In connection with the acquisition of assets in The Albers Group, LLC transaction, the Company is obligated to pay $200,000. This amount will be paid over a ten-month period which commenced February 2022. The $200,000 is non-interest bearing and is reflected as a current liability on the Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021 under “Due to S . As stated in Note 3, in connection with the acquisition of LSG, the Company is obligated to pay $551,003. This amount will be paid in two tranches over a ten (10) month period, with the first tranche of $271,003 paid six (6) months after the closing date and the second tranche of $280,000 paid ten (10) months after the closing date. The payment of $271,003 consists of a $250,000 payment plus a $21,003 closing adjustment. The $551,003 is non-interest bearing and is reflected as a current liability on the Condensed Consolidated Balance Sheets as of September 30, 2022. As of September 30, 2022 (unaudited), the balance due for this obligation was $551,003 , and $271,003 was paid in October 2022. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | NOTE 11: STOCKHOLDERS’ EQUITY (DEFICIT) On July 19, 2021, the Company filed a Certificate of Amendment with the State of Nevada to change the par value of all common and preferred stock to all be $0.0001. All changes to the par value dollar amount for these classes of stock and adjustment to additional paid in capital have been made retroactively. Preferred Stock The Company has 50,000,000 shares of preferred stock authorized. The Company has designated a Series A Preferred Stock, Series B Preferred Stock and as of July 16, 2021 , Series A Preferred Stock The Company has designated 10,000,000 shares of Series A Preferred Stock, par value of $0.0001. As of September 30, 2022 and December 31, 2021, the Company has 5,875,000 shares of Series A Preferred Stock issued and outstanding, respectively. The 5,875,000 shares were issued to former officers of the Company in settlement of debt. On April 7, 2022, the Company amended the Certificate of Designation for its Series A Preferred Stock to (a) provide for an annualized dividend of $0.0125 per share to be paid monthly; (b) amend the conversion ratio for each share of Series A Preferred Stock to convert into 2 shares of common stock instead of 20 shares of common stock; and (c) provide for the Company to have the option to repurchase the Series A Preferred Stock at any time at a price of $1 per share. In connection with the Amendment to the Certificate of Designation, the former officers entered into a letter agreement dated April 4, 2022 with Crom and the Company for Crom to purchase 1,750,000 shares of Common Stock from the former officers for $455,000, the proceeds of which were paid direct ly public offering. For the nine months ended September 30, 2022, the Company recognized $36,719 in Series A dividends, of which $30,569 has been paid as of September 30, 2022. Series B Preferred Stock The Company has designated 10,000,000 shares of Series B Preferred Stock, par value of $0.0001. As of September 30, 2022 and December 31, 2021, the Company has 3,075,000 and 3,610,000 shares of Series B Preferred Stock issued and outstanding, respectively. The 3,610,000 shares were issued to directors of the Company and a third party in June 2019. Each share of Series B Preferred Stock converts into 5 shares of common stock and has 10,000 votes per preferred share. In the nine months ended September 30, 2022, there were 535,000 shares of Series B Preferred Stock converted into 2,675,000 common shares. Series C Preferred Stock The Company has designated 10,000,000 shares of Series C Preferred Stock, par value of $0.0001 (effective July 19, 2021). In the nine months ended September 30, 2022, the Company raised $150,000 for 150,000 shares of Series C Preferred Stock along with 15,000 common shares. In the year ended December 31, 2021, the Company raised $620,000 for 620,000 shares of Series C Preferred Stock along with 62,000 common shares. Each share of the Series C Preferred Stock is convertible into 0.625 common shares, and the Series C Preferred Stock pays a $.06 dividend per Series C Preferred share . The dividend commenced accruing when the Series C Preferred Shares were fully designated and issued. For the nine months ended September 30, 2022, the Company has preferred stock dividends recognized of $33,825 of which all have been paid The holders of the Series C Preferred Stock under their subscription agreements were issued 0.1 of a share of common stock for each share of preferred stock which they purchased. As a result, the Company issued 77,000 common shares for the 770,000 Series C Preferred shares purchased. Common Stock The Company has 3,000,000,000 shares of common stock, par value $0.0001 authorized. The Company has 24,788,132 and 19,960,632 shares issued and outstanding as of September 30, 2022 (unaudited) and December 31, 2021, respectively. The Company issued the following common shares in the nine months ended September 30, 2022: The Company issued 15,000 shares of common stock in accordance with the Series C Preferred Stock subscription agreements. The Company issued 15,000 shares of common stock in the exercise of stock options. The Company issued 7,500 shares of common stock that vest over twelve months to an advisory board member. The Company issued 2,675,000 shares of common stock in conversion of 535,000 Series B Preferred shares. The Company issued 125,000 shares of common stock to Crom for entering into the SPA. The Company expensed this as a financing fee and include the amount in interest expense in the condensed consolidated statements of operations for the nine months ended September 30, 2022; and 125,000 shares of common stock for entering into the Eisiminger note. The Company issued 1,250,000 shares of common stock to Crom for $500,000 cash. The Company issued 600,000 shares of common stock as described in Note 3, “Acquisitions” to the selling shareholder of LSG. The Company issued 15,000 shares of common stock for services to vendors . The Company issued the following common shares in the year ended December 31, 2021: The Company issued 1,114,023 common shares in the acquisition of MFSI which were issued April 29, 2021 and June 15, 2021. In addition, upon the issuance of these shares the Company has cancelled 250,000 shares on May 12, 2021 that were previously issued to MFSI and returned those shares to treasury, with a reduction to equity of $400,000. On August 6, 2021, the Company issued 500,000 shares in the acquisition of Merrison, and on August 25, 2021, the Company issued 2,600,000 shares in the acquisition of SSI. The Company issued 32,095 additional shares in October 2021 for payment of the working capital surplus delivered to the Company in the SSI acquisition. In September through December 2021, the Company issued 62,000 shares of common stock in accordance with the Series C Preferred Stock subscription agreements. In November 2021, the Company issued 481,250 shares of common stock in the SSI acquisition of certain assets of The Albers Group LLC. In December 2021, 10,000 shares of common stock were issued in the exercise of stock options for $8,000. Warrants The following represents a summary of warrants for the nine months ended September 30, 2022 and the year ended December 31, 2021: Nine Months Ended Year Ended Number Weighted Number Weighted Beginning balance 3,161,568 $ 1.60 1,090,717 $ 0.00 Granted 1,017,268 2.60 2,070,851 2.40 Exercised Cashless - - - - Forfeited - - - - Expired - - - - Ending balance 4,178,836 $ 1.79 3,161,568 $ 1.60 Warrants exercisable 4,178,836 3,161,568 Intrinsic value of warrants $ 10,468,925 $ 5,706,473 Weighted Average Remaining Contractual Life (Years) 5.26 During the nine months ended September 30, 2022, the Company granted 361,017 warrants to two of its officers at $3.80 per share that expire May 2, 2029 valued at $1,603,219 as well as 656,250 warrants with a n exercise price of $1.84 that expire April 4, 2027 to Crom as part of the SPA with them dated April 4, 2022, and during the nine months ended September 30, 2021, the Company granted 130,000 warrants to two of its officers at $1.60 per share that expire January 20, 2028 valued at $188,186. The warrants were issued as part of a bonus achieved under the respective employment agreements for two of the officers of the Company. On August 20, 2021, the Company granted 320,000 ( each) warrants to two of its officers at $3.40 per share that expire August 20, 2028 valued at $775,792 ( $387,896 each ) 1,450,850 ( each) warrants at $2.00 per share that expire August 20, 2028 valued at $2,070,624 ( $1,035,312 each). These were warrants granted pursuant to the terms of their employment agreements as a bonus for the acquisition of both Merrison and SSI. All of the warrants have been fully expensed through September 30, 2022. Options The Company on November 9, 2021, approved the Stock Incentive Plan, that authorizes the Company to grant up to 2,500,000 shares. Prior to this date, the granting of options was not done in accordance with a stock option plan. As of September, 30, 2022 no stock options have been granted under the Stock Incentive Plan. The following represents a summary of options for the nine months ended September 30, 2022 and the year ended December 31, 2021: Nine Months Ended Year Ended Number Weighted Number Weighted Beginning balance 4,594,688 $ 2.094 1,856,250 $ 0.80 Granted 2,535,000 3.60 4,087,500 2.40 Exercised (15,000 ) (0.80 ) (10,000 ) (0.80 ) Forfeited (289,688 ) (0.60 ) (1,339,062 ) (0.60 ) Expired - - - - Ending balance 6,825,000 $ 0.1368 4,594,688 $ 2.094 Vested options 1,610,506 1,410,938 Nonvested options 5,214,494 3,183,750 Intrinsic value of options $ 12,876,650 $ 6,140,313 Weighted Average Remaining Contractual Life (Years) 6.14 6.21 Stock based compensation expense for the nine months ended September 30, 2022 and 2021 was $3,131,993 and $2,271,097, respectively, which is comprised of $2,733,718 a The vesting of these grants run through December 2026. The Company uses the Black-Scholes method for valuing the expense related to the grants. See below for the criteria used for each of the respective periods. For the Nine Months Ended September 30, 2022 In January 2022, the Company granted a total of 725,000 stock options to four individuals as follows: (a) 50,000 service based options vest over 12 months at a strike price of $3.40 per share for a period of 7 years (expire December 31, 2028); (b) 25,000 service based options vest immediately at a strike price of $3.40 per share for a period of 7 years (expire December 31, 2028); (c) 150,000 options (75,000 service based options that vest over four years On February 15, 2022, 15,000 stock options were exercised for $12,000. In April 2022, the Company granted a total of 1,810,000 stock options to two individuals as follows: (a) 10,000 stock options at a strike price of $3.40 for a period of 7 years (expire March 31, 2029) to a consultant that vested upon the completion of the services he provided in completion of the year end audit; and (b) 1,800,000 stock options to our Chief Financial Officer at a strike price of $3.80 for a period of 7 years (expire April 24, 2029). For the Nine Months Ended September 30, 2021 In January 2021, the Company granted 150,000 stock options to advisors (125,000) and an employee (25,000), that are service-based options that vest over a one-year period. The options have a strike price of $1.60 per share and expire seven years from the grant date (December 31, 2027). In February 2021, the Company granted an advisor 50,000 stock options that are service-based options that vest immediately. The options have a strike price of $1.00 per share and expire seven years from the grant date (February 20, 2028). In March 2021, the Company granted an advisor 50,000 stock options that are service-based options that vest over a one-year period. The options have a strike price of $1.80 per share and expire seven years from the grant date (March 11, 2028). In April 2021, the Company granted an advisor 150,000 stock options that are that are half time-based half performance-based In July 2021, the Company granted the Chief Growth Officer 1,500,000 stock options that are half half e a In August 2021, the Company granted 12,500 options at a n price of $3.40 per share to a consultant of MFSI for services performed. These options vested immediately, and mature August 31, 2028. In September 2021, the Company granted to the former owner of Merrison, 150,000 stock options (effective August 6, 2021) that are half h alf an exercise price of $3.40 per share under his e a In September 2021, the Company granted 900,000 stock options half - based and half - Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated using the Black-Scholes valuation model. The following assumptions were used for the periods as follows: Nine Months September 30, Year December 31, Expected term 7 years 7 years Expected volatility 114 – 126 135 – 177 % Expected dividend yield - - Risk-free interest rate 2.00 – 2.85 0.10 % |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 12: Fair Value Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP sets forth a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels are as follows: Level 1 – defined as observable inputs, such as quoted market prices in active markets. Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 – defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. Our financial assets and liabilities subject to the three-level fair value hierarchy consist principally of cash and cash equivalents, accounts receivable, accounts payable, contingent consideration and derivative liabilities. The estimated fair value of cash and cash equivalents, accounts receivable and accounts payable approximates their carrying value. The Company issued common stock, a convertible note and warrants in a SPA with Crom (“Derivative Instruments”). The Company evaluated the conversion option in the convertible note and the warrants to determine proper accounting treatment and determined them to be Derivative Instruments. The Derivative Instruments identified have been accounted for utilizing ASC 815 “Derivatives and Hedging.” The contingent earnout included in total consideration for the SSI acquisition, included in current liabilities on the Condensed Consolidated Balance Sheets, is measured at fair value on a recurring basis using the present value approach, which incorporates factors such as revenue growth and forecasted adjusted EBITDA to estimate expected value. Changes in fair value of the contingent earnout are recorded as gains or losses on revaluation in other income (expense) on the Condensed Consolidated Statements of Operations. The Company determined that the significant inputs used to value the derivative liabilities and the contingent earnout fall within Level 3 of the fair value hierarchy. As a result, the Company has determined that the valuation of its derivative liabilities and contingent earnout are classified in Level 3 of the fair value hierarchy as shown in the table below: Fair Value Measurements at September 30, 2022 Level 1 Level 2 Level 3 Total Crom Derivative Liabilities $ - $ - $ 789,000 $ 789,000 Contingent Earnout $ - $ - $ 1,121,000 $ 1,121,000 Total $ - $ - $ 1,910,000 $ 1,910,000 Fair Value Measurements at December 31, 2021 Level 1 Level 2 Level 3 Total Crom Derivative Liabilities $ - $ - $ - $ - Contingent Earnout $ - $ - $ 257,000 $ 257,000 Total $ - $ - $ 257,000 $ 257,000 The Company’s derivative liabilities as of September 30, 2022 and December 31, 2021 associated with the Derivative Instruments are as follows. September 30, December 31, Inception Fair value of conversion option of Crom Cortana Fund LLC convertible note $ (345,000 ) $ - $ (314,000 ) Fair value of 656,250 warrants on April 4, 2022 (444,000 ) - (378,000 ) $ (789,000 ) $ - (692,000 ) During the nine months ended September 30, 2022 and 2021, the Company recognized changes in the fair value of the derivative liabilities of $(97,000) and $0, respectively Activity related to the derivative liabilities for the nine months ended September 30, 2022 is as follows: Beginning balance as of December 31, 2021 $ - Issuances of convertible note/warrants – derivative liabilities (692,000 ) Warrants exchanged for common stock - Change in fair value of warrant derivative liabilities (97,000 ) Ending balance as of September 30, 2022 $ (789,000 ) Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each Derivative Instrument is estimated using a binomial valuation model. The following assumptions were used for the periods as follows: September Inception – Expected term – conversion option 0.51 years 1 year Expected term - warrants 4.51 years 5 years Stock price as of Measurement Date $ 4.30 $ 3.80 Equity volatility - unadjusted 284.80 % 278.80 % Volatility haircut 5.00 % 5.00 % Selected volatility – post haircut 115.0 % 112.60 % Senior unsecured synthetic credit rating CCC + CCC + B- market yield 7.90 % 4.50 % OAS differential between CCC+ and B- bonds 458 383 bps Risk adjusted rate 12.50 % 8.30 % Risk-free interest rate 3.90 % 1.70 % |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations | NOTE 13: CONCENTRATIONS Concentration of Credit Risk. generally For the nine months ended September 30, 2022 and 2021, the Company had three customers representing 57% and 53% of revenue earned, respectively. Any customer that represents 10% or greater of total revenue represents a risk. The Company also has four and three customers that represent 72% and 69% of the total accounts receivable as of September 30, 2022 (unaudited) and December 31, 2021, respectively. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 14: RELATED-PARTY TRANSACTIONS In June 2021, the Company raised $220,000 for 220,000 shares of the to be designated Series C Preferred Stock along with 22,000 common shares from the newly hired Chief Growth Officer of the Company. In January 2021, August 2021, November 2021 and April 2022, the Company granted warrants to two of its officers pursuant to the employment agreements with these officers as a bonus for closing the MFSI, Merrison, SSI, Pax River ( assets purchased from The Albers Group, LLC) and LSG transactions. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 15: COMMITMENTS The Company since April 2020 has entered in a series of e a three e a On April 1, 2020, the Company entered into Employment Agreements with both Mark Fuller and Jay Wright. The agreements have a term of three years. Pursuant to the agreements, each Employee has a base salary of $240,000 per year and may be increased to $25,000 per month upon reaching an annualized revenue run rate of $25,000,000 or greater, $30,000 per month upon reaching an annualized revenue of $50,000,000 or greater, or $40,000 per month upon reaching an annualized revenue run rate of $75,000,000 or greater. The Company shall pay to the two officers a cash bonus equal to the lesser of (i) one percent (1%) of the trailing twelve months revenues of each company acquired during the term of the employment agreement, or (ii) four percent (4%) of the trailing twelve month earnings before interest, tax, depreciation, and amortization (“EBITDA”) of each business acquired during the term of the employment agreement, provided that, for a bonus to be due, such acquisition must be accretive to the Company on both a revenue per share and EBITDA per share basis. Additionally, the Company shall issue 1 warrant to each Employee for each $1 of revenue acquired in any such acquisition with a 7-year term and a strike price equal to the price used in such acquisition or if no stock is used, the 30-day moving average closing price of the Company’s stock. An additional bonus of $50,000 and 500,000 warrants with a $2.00 strike price shall be paid to each Employee upon the Company commencing trading on either tier of Nasdaq or the NYSE, and an additional bonus of $125,000 and 1,250,000 warrants with a $2.40 strike price shall be paid to each Employee upon the Company joining the Russell 3000 and/or Russell 2000 stock index(ices). On July 1, 2021, the Company entered into an Employment Agreement with its Chief Growth Officer for a period of four years, expiring June 30, 2025. Pursuant to the agreements, the Employee has a base salary of $250,000 per year and may be increased to $25,000 per month upon the Navy division reaching an annualized revenue run rate of $25,000,000 or greater, $30,000 per month upon the Navy division reaching an annualized revenue of $60,000,000 or greater, or $40,000 per month upon the Navy division reaching an annualized revenue run rate of $100,000,000 or greater. The Chief Growth Officer is entitled to a bonus at the discretion of the Board of Directors annually. In addition, the Chief Growth Officer was granted 1,500,000 stock options, which 750,000 are considered time based grants over a vesting period of four years; and 750,000 are performance based grants as follows: (a) 250,000 upon the closing of an acquisition in the Navy division of a company with annualized revenue of $12 million or greater; (b) 250,000 upon the Navy division achieving $25 million in revenue and $2.5 million in EBITDA in any 12 month period; and (c) 250,000 upon the overall Company achieving $100 million in revenue run rate based on quarterly performance (i.e. $25 million in any calendar quarter). On August 5, 2021, the Company and the former executive of Merrison entered into an Employment Agreement for a period of three years through August 5, 2024. Under the Employment Agreement, the executive shall be paid a base salary of $220,000 annually and receive 150,000 stock options. In addition, the executive will be provided a bonus of $80,000 payable annually on August 31 each year, starting August 31, 2022, if and only if Merrison maintains an annualized net income of $500,000 for the one-year period ending on the applicable August 31. On August 12, 2021, the Company entered into several Employment Agreements for three-year On April 25, 2022, the Company entered into an employment agreement with David Bell, its Chief Financial Additionally, Mr. Bell shall be eligible to earn a performance bonus (the “Bell Performance Bonus”) at the discretion of the Board of the Company with target bonuses that are the following percentages of Bell Base Salary based on certain performance criteria set forth in the employment agreement: (i) 50% of Bell Base Salary of less than $35,000 per month; (ii) 60% of Bell Base Salary of $35,000 to less than $40,000 per month; and (iii) 100% of Bell Base Salary of $40,000 or more per month. The performance criteria include (a) ensure on time filing of all periodic filings (Form 10Q and Form 10K) and event driven filings (Form 13(d), Section 16 filings (forms 3 and 4) and Form 8K); (b) ensure on time filings and payment of all federal, state and local tax obligations; and (c) prepare an annual consolidated draft budget based on subsidiary budgets by October 31 each year. Mr. Bell is entitled to earn an additional bonus of (i) $50,000 and 500,000 warrants to purchase the Company’s common stock with an exercise price of $2.00 upon the Company’s common stock trading on any tier of the Nasdaq or the New York Stock Exchange (which occurred on October 13, 2022), and (ii) $100,000 and 750,000 warrants to purchase the Company’s common stock with an exercise price of $0.12 upon the Company joining the Russell 3000 and/or Russell 2000 stock index(ices). The Board of the Company may pay an additional bonus (separate from any target) in its sole discretion. As an additional incentive for entering into the employment agreement, Mr. Bell was granted 1,800,000 stock options to purchase the Company’s common stock at an exercise price of $3.80 per share. The price amount is subject to adjustment in the event of a forward or reverse stock split, stock dividend or other similar mechanism. The stock options vest ratably over the first 36 months of employment with the Company. In the event of a change in control of the Company, unvested options shall not vest unless (i) Mr. Bell is not given a commensurate position in the resulting organization, or (ii) the change in control transaction results in a price to stockholders of at least $.40 per share. The agreement entitles Mr. Bell to receive various employee benefits generally made available to other officers and senior executives of the Company . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 16: INCOME TAXES The Company's quarterly provision for income taxes is measured using an estimated annual effective tax rate adjusted for discrete items that occur within the quarter. For the three months ended September 30, 2022, the effective tax rate was (10.5) % % A full valuation allowance was established in the second quarter of 2022 due to the uncertainty of the utilization of deferred tax assets in future periods. In evaluating the Company’s ability to realize the deferred tax assets, management considered all available positive and negative evidence, including cumulative historic earnings, reversal of temporary difference, projected taxable income and tax planning strategies. The Company’s negative evidence, largely related to the Company's historical net losses, currently outweighs its positive evidence of future taxable income therefore it is more-likely-than-not that the Company will not realize a significant portion of our deferred tax assets. The amount of the deferred tax asset to be realized in the future could however be adjusted if objective negative evidence is no longer present. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 17: SUBSEQUENT EVENTS The Company evaluated subsequent events after September 30, 2022 through the date of the issuance of these financial statements and has determined there have been no subsequent events for which disclosure is required other than as discussed below: · On October 13, 2022, the Company effectuated the Reverse Stock Split and commenced trading of its common stock on the NYSE American LLC. · On October 17, 2022, the Company closed on its public offering of 1,500,000 shares of common stock consisting of 1,350,000 shares sold by the Company and 150,000 shares sold by certain selling stockholders, at a public offering price of $2.00 per share. In connection therewith, the Company issu ed 1,231 shares of common stock to stockholders with fractional shares resulting from the reverse stock split. · On October 17, 2022 the Company issued a total of 15,375,000 Common Stock in connection with the conversion of all its Series B preferred stock outstanding in connection with its public offering. · In October 2022, t he Company made an advanced principal payment of $500,000 to The Buckhout Charitable Remainder Trust. · In October 2022 , · In November 2022, t |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The interim condensed consolidated financial statements of the Company and its subsidiaries and the accompanying notes included in this Quarterly Report are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the condensed consolidated financial statements have been included. Such adjustments are of a normal, recurring nature. The unaudited interim condensed consolidated financial statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The condensed consolidated financial statements include the accounts of Castellum, Inc. and its subsidiaries, collectively referred to as “the Company”. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company owns 100% of the equity interests of each of its subsidiaries. The excess of the consideration paid over the net assets acquired in these business combinations was first attributed to identified intangible assets with the remainder being applied to goodwill. All goodwill other than that acquired in the acquisition of LSG is not deductible for tax purposes. The LSG-related goodwill is tax deductible. On October 13, 2022, the Company completed a $3,000,000 public offering, a 1:20 reverse stock split of its common shares, and an uplisting to the NYSE American exchange. All share and per share figures related to the common stock, have been retroactively adjusted in accordance with SEC Staff Accounting Bulletin (SAB) Topic 4C. |
Business Segments | Business Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, the Chief Executive Officer, reviews consolidated results of operations to make decisions. The Company maintains one operating and reportable segment, which is the delivery of products and services in the areas of information technology, electronic warfare, information warfare , |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, management’s estimate of provisions required for uncollectible accounts receivable, the acquired value of the intangible assets, impaired value of intangible assets, liabilities to accrue, cost incurred in the satisfaction of performance obligations, fair value for consideration elements of business combinations, permanent and temporary differences related to income taxes and determination of the fair value of stock awards. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers The Company accounts for a contract with a customer that is within the scope of this Topic only when the five steps of revenue recognition under ASC 606 are met. The five core principles will be evaluated for each service provided by the Company and is further supported by applicable guidance in ASC 606 to support the Company’s recognition of revenue. Revenue is derived primarily from services provided to the Federal government. The Company enters into agreements with customers that create enforceable rights and obligations and for which it is probable that the Company will collect the consideration to which it will be entitled as services and solutions are transferred to the customer. The Company also evaluates whether two or more agreements should be accounted for as one single contract. When determining the total transaction price, the Company identifies both fixed and variable consideration elements within the contract. The Company estimates variable consideration as the most likely amount to which the Company expects to be entitled limited to the extent that it is probable that a significant reversal will not occur in a subsequent period. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. For most contracts, the customers require the Company to perform several tasks in providing an integrated output and, hence, each of these contracts are deemed as having only one performance obligation. When contracts are separated into multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. This evaluation requires professional judgment, and it may impact the timing and pattern of revenue recognition. If multiple performance obligations are identified, the Company generally uses the cost plus a margin approach to determine the relative standalone selling price of each performance obligation. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between when payment by the client and the transfer of promised services to the client occur will be less than one year. The Company currently generates its revenue from three different types of contractual arrangements: cost plus fixed fee (“CPFF”), firm-fixed-price contracts (“FFP”) and time-and-materials (“T&M”) contracts. The Company generally recognizes revenue over time as control is transferred to the customer, based on the extent of progress towards satisfaction of the performance obligation. The selection of the method used to measure progress requires judgment and is dependent on the contract type and the nature of the goods or services to be provided. For CPFF contracts, the Company uses input progress measures to derive revenue based on hours worked on contract performance as follows: direct costs plus Defense Contract Audit Agency (“ DCAA ”) approved provisional burdens plus fee. The provisional indirect rates are adjusted and billed at actual at year end. Revenue from FFP contracts is generally recognized ratably over the contract term, using a time-based measure of progress, even if billing is based on other metrics or milestones, including specific deliverables. For T&M contracts, the Company uses input progress measures to estimate revenue earned based on hours worked on contract performance at negotiated billing rates, plus direct costs and indirect cost burdens associated with materials and the direct expenses incurred in performance of the contract. These arrangements generally qualify for the “right-to-invoice” practical expedient where revenue is recognized in proportion to billable consideration. FFP Level-Of-Effort contracts are substantially similar to T&M contracts except that the Company is required to deliver a specified level of effort over a stated period. For these contracts, the Company estimates revenue earned using contract hours worked at negotiated bill rates as the Company delivers the contractually required workforce. Revenue generated by Contract Support Service contracts is recognized over time as services are provided, based on the transfer of control. Revenue generated by FFP contracts is recognized over time as performance obligations are satisfied. Most contracts do not contain variable consideration and contract modifications are generally minimal. For these reasons, there is not a significant impact of electing these transition practical expedients. Revenue generated from contracts with Federal, state, and local governments, from these contracts is recorded over time, rather than at a point in time. Under the Contract Support Services contracts, the Company performs software design work as it is assigned by the customer, and bills the customer, generally semi-monthly, on either a CPFF or T&M basis, as labor hours are expended. Certain other government contracts for software development have specific deliverables and are structured as FFP contracts, which are generally billed as the performance obligations under the contract are met. Revenue recognition under FFP contracts require judgment to allocate the transaction price to the performance obligations. Contracts may have terms up to five years. Contract accounting requires judgment relative to assessing risks and estimating contract revenue and costs and assumptions for schedule and technical issues. Due to the size and nature of contracts, estimates of revenue and costs are subject to a number of variables. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization and determining whether realization is probable. Estimates of total contract revenue and costs are continuously monitored during the term of the contract and are subject to revision as the contract progresses. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. The Company accounts for contract costs in accordance with ASC Topic 340-40, Contracts with Customers The following table disaggregates the Company’s revenue by contract type for the nine months ended September 30: 2022 2021 Revenue: Time and material $ 17,924,100 $ 10,860,224 Firm fixed price 3,607,597 2,820,041 Cost plus fixed fee 10,634,407 1,837,869 Other - 69,112 Total $ 32,166,104 $ 15,587,246 |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of certain of the convertible instruments are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Valuations derived from various models are subject to ongoing internal and external verification and review. The model used incorporates market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income (loss). With the issuance of the July 2017 FASB ASU 2017-11, “Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815),” Under current GAAP, an equity-linked financial instrument that otherwise is not required to be classified as a liability under the guidance Topic 480 is evaluated under the guidance in Topic 815, “ Derivatives and Hedging Generally, for warrants and conversion options embedded in financial instruments that are deemed to have a debt host (assuming the underlying shares are readily convertible to cash or the contract provides for net settlement such that the embedded conversion option meets the definition of a derivative). This results in a reporting entity being required to classify the freestanding financial instrument or the bifurcated conversion option as a liability, which the entity must measure at fair value initially and at each subsequent reporting date. The amendments in this Update revise the guidance for instruments with embedded features in Subtopic 815-40, “ Derivatives and Hedging—Contracts in Entity’s Own Equity |
Accounting for Income Taxes | Accounting for Income Taxes Income taxes are accounted for under the asset and liability method. We estimate our income taxes in each of the jurisdictions where the Company operates. This process involves estimating our current tax expense or benefit together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When assessing the realizability of deferred tax assets, we consider if it is more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment, we consider the availability of loss carryforwards, projected reversals of deferred tax liabilities, projected future taxable income, and ongoing prudent and feasible tax planning strategies. We are subject to income taxes in the federal and state tax jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. Management evaluates its tax positions on a quarterly basis. The Company files income tax returns in the US Federal tax jurisdiction and various state tax jurisdictions. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service (“IRS”) and state taxing authorities, generally for three years after they were filed. |
Share-Based Compensation | Share-Based Compensation The Company follows ASC 718 Compensation – Stock Compensation Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting The Company adopted ASU 2016-09 Improvements to Employee Share-Based Payment Accounting |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825 Financial Instruments |
Earnings (Loss) Per Share of Common Stock | Earnings (Loss) Per Share of Common Stock Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding , as well as a warrant to purchase 1,080,717 shares of common stock for a total aggregate exercise price of $1 granted in connection with the $5,600,000 note payable maturing September 30, 2024, as the cash consideration for the holder/grantee to receive common shares was determined to be nonsubstantive . Diluted earnings per share (“EPS”) include additional dilution from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options and all other warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented, so only the basic weighted average number of common shares are used in the computations. The Company subtracts dividends on preferred stock when calculating earnings (loss) per share. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Company's Revenue By Contract Type | The following table disaggregates the Company’s revenue by contract type for the nine months ended September 30: 2022 2021 Revenue: Time and material $ 17,924,100 $ 10,860,224 Firm fixed price 3,607,597 2,820,041 Cost plus fixed fee 10,634,407 1,837,869 Other - 69,112 Total $ 32,166,104 $ 15,587,246 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Assets Acquired | The following represents the assets acquired in this acquisition: Customer relationships (contracts) (a) $ 2,400,000 Net assets acquired $ 2,400,000 The consideration paid for the acquisition of The Albers Group assets was as follows: Common stock $ 1,925,000 Contingent consideration represented by obligation to issue shares (a) 275,000 Cash (included in amounts due to seller as of December 31, 2021) (b) 200,000 $ 2,400,000 (a) It was determined that on March 31, 2022, that the requirements under section 1.5(b) of the acquisition agreement had not been achieved, and as a result the contingent consideration to issue the additional 68,750 (b) As of September 30, 2022, $160,000 was paid to the seller and the balance owed as of September 30, 2022 is $40,000. |
Schedule of Business Acquisition, Pro Forma Information | These unaudited pro forma results of operations are based on the historical financial statements of each of the companies. For the nine months ended September 30, 2022 Revenues $ 33,685,580 Net loss $ (7,843,711 ) Net loss per share - basic $ (0.33 ) For the nine months ended September 30, 2021 Revenues $ 20,333,508 Net loss $ (127,660 ) Net loss per share - basic $ (0.00 ) |
MFSI [Member] | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities Acquired | The following represents the assets and liabilities acquired in this acquisition: Cash $ 93,240 Accounts receivable 33,540 Unbilled receivable 45,316 Other assets 329,509 Right of use asset – operating lease 14,862 Customer relationships 348,000 Non-compete agreement 4,000 Goodwill 685,072 Deferred tax liability (97,419 ) Line of credit (12,249 ) Lease liability – operating lease (13,862 ) Accounts payable and accrued expenses (47,572 ) Net assets acquired $ 1,382,437 The consideration paid for the acquisition of MFSI was as follows: Common stock $ 1,382,437 |
Merrison [Member] | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities Acquired | The following represents the assets and liabilities acquired in this acquisition: Cash $ 183,588 Accounts receivable and unbilled receivables 391,049 Customer relationships 322,000 Non-compete agreements 7,000 Trademarks 164,000 Backlog 115,000 Goodwill 780,730 Deferred tax liability (243,730 ) Accounts payable and accrued expenses (102,354 ) Net assets acquired $ 1,617,283 The consideration paid for the acquisition of Merrison was as follows: Common stock $ 1,595,000 Cash 22,283 $ 1,617,283 |
SSI [Member] | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities Acquired | The following represents the assets and liabilities acquired in this acquisition: Cash $ 998,935 Accounts receivable and unbilled receivables 2,222,004 Prepaid expenses 147,600 Other asset 6,750 Furniture and equipment 148,931 Right of use asset – operating lease 169,063 Customer relationships 3,102,000 Non-compete agreements 65,000 Trademarks 367,000 Backlog 50,000 Goodwill 8,461,150 Deferred tax liability (880,150 ) Lease liability – operating lease (167,333 ) Contract liability (226,591 ) Accounts payable and accrued expenses (1,134,509 ) Net assets acquired $ 13,329,850 Total consideration for the acquisition of SSI was as follows: Common stock $ 7,872,850 Seller note 400,000 Cash 800,000 Contingent earnout 257,000 Lender financing 4,000,000 $ 13,329,850 |
Lexington Solutions Group [Member] | |
Business Acquisition [Line Items] | |
Schedule of Assets and Liabilities Acquired | The following represents the assets and liabilities acquired in this acquisition: Receivable from Seller $ 413,609 Due from Employee/Travel Advance 5,000 Miscellaneous license 2,394 Customer relationships 785,000 Non-compete agreements 10,000 Backlog 489,000 Goodwill 1,471,000 Net assets acquired $ 3,176,003 The consideration paid for the acquisition of LSG was as follows: Common stock (600,000 shares issued May 4, 2022) $ 2,280,000 Holdback shares (25,000 shares due six months after the closing date) (in obligation to issue common stock) 95,000 Cash 250,000 Due to seller (cash) 551,003 $ 3,176,003 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Fixed Assets | Fixed assets consisted of the following as of September 30, 2022 (unaudited) and December 31, 2021: September 30, 2022 December 31, 2021 Equipment $ 96,986 $ 60,148 Furniture 32,574 32,574 Software 44,746 - Leasehold improvements 83,266 75,265 Total fixed assets 257,572 167,987 Accumulated depreciation (66,630 ) (22,195 ) Fixed assets, net $ 190,942 $ 145,792 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following as of September 30, 2022 (unaudited) and December 31, 2021: September 30, 2022 December 31, Customer relationships 4.5– 15 years $ 9,535,000 $ 9,025,000 Trade name 4.5 years 266,000 266,000 Trademark 10-15 years 533,863 533,863 Backlog 2-5 years 1,436,000 947,000 Non-compete agreement 3-5 years 684,000 674,000 12,454,863 11,445,863 Accumulated amortization (5,323,003 ) (3,850,264 ) Intangible assets, net $ 7,131,860 $ 7,595,599 |
Schedule of Future Amortization of Intangible Assets | Future amortization of the intangible assets for the next five years as of September 30 are as follows: September 30, 2023 $ 1,969,588 September 30, 2024 1,653,245 September 30, 2025 985,482 September 30, 2026 721,751 September 30, 2027 526,950 Thereafter 1,274,844 Total $ 7,131,860 |
Schedule of Goodwill | The activity of goodwill for the nine months ended September 30, 2022 (unaudited) and year ended December 31, 2021, is as follows: 2022 2021 Balance – beginning of period $ 14,062,964 $ 4,136,011 Additions 1,471,000 9,926,953 Disposals - - Impairment - - $ 15,533,964 $ 14,062,964 |
Convertible Promissory Notes _2
Convertible Promissory Notes - Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes Payable [Abstract] | |
Schedule of convertible promissory notes, Related party | The Company entered into convertible promissory notes – related parties as follows as of September 30, 2022 (unaudited) and December 31, 2021: September December Convertible note payable with a trust related to one of the Company’s directors, convertible at $0.26 per share, at 5% interest (extinguished on April 4, 2022 for new note) (a) $ - 4,209,617 Convertible note payable with a trust related to one of the Company’s directors, convertible at $0.26 per share, at 5% interest (amended April 4, 2022) 3,709,617 - Total Convertible Notes Payable – Related Parties $ 3,709,617 $ 4,209,617 Add: Premiums recorded on convertible note due to fair value adjustment at date of acquisition of Corvus - 2,569 Less: BCF Discount (3,012,791 ) (1,407,002 ) $ 696,826 $ 2,805,184 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Notes Payable [Abstract] | |
Schedule of notes payable | The Company entered into notes payable as follows as of September 30, 2022 (unaudited) and December 31, 2021: September December Note payable at 7% originally due November 2023, now maturing September 30, 2024 (a) $ 5,600,000 $ 5,600,000 Note payable at 10% interest dated February 28, 2022 and matures the earlier of (i) September 30, 2024 or (ii) the acceleration of the obligations as contemplated under the promissory note including the successful completion of an equity offering of at least $15,000,000 (b) 500,000 - Convertible note payable, convertible at $1.60 per share, at 7%, maturing April 4, 2023 (c) 1,050,000 - Term note payable , at prime plus 3% interest , applied on a deferred basis (7.75% at September 30, 2022 and 6.25% at December 31, 2021) maturing August 11, 2024 2,644,280 3,588,374 0 Total Notes Payable 9,794,380 9,188,374 Less: Debt Discount (1,321,959 ) (796,565 ) $ 8,472,421 $ 8,391,809 |
Schedule of repayment, net of discounts | The note payable repayment schedule, net of discounts for the next three years as of September 30 is as follows: September 30, 2023 $ 1,960,121 September 30, 2024 6,512,300 Total $ 8,472,421 |
Note Payable - Related Party (T
Note Payable - Related Party (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
NOTE PAYABLE RELATED PARTY [Abstract] | |
Schedule of notes payable to related party [Table Text Block] | The Company entered into a note payable with a related party in August 2021 with balances as of September 30, 2022 (unaudited) and December 31, 2021, as follows: September 30, December 31, Note payable at 5% due December 31, 2024, in connection with the acquisition of SSI $ 400,000 $ 400,000 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of warrants | The following represents a summary of warrants for the nine months ended September 30, 2022 and the year ended December 31, 2021: Nine Months Ended Year Ended Number Weighted Number Weighted Beginning balance 3,161,568 $ 1.60 1,090,717 $ 0.00 Granted 1,017,268 2.60 2,070,851 2.40 Exercised Cashless - - - - Forfeited - - - - Expired - - - - Ending balance 4,178,836 $ 1.79 3,161,568 $ 1.60 Warrants exercisable 4,178,836 3,161,568 Intrinsic value of warrants $ 10,468,925 $ 5,706,473 Weighted Average Remaining Contractual Life (Years) 5.26 |
Schedule of options | The following represents a summary of options for the nine months ended September 30, 2022 and the year ended December 31, 2021: Nine Months Ended Year Ended Number Weighted Number Weighted Beginning balance 4,594,688 $ 2.094 1,856,250 $ 0.80 Granted 2,535,000 3.60 4,087,500 2.40 Exercised (15,000 ) (0.80 ) (10,000 ) (0.80 ) Forfeited (289,688 ) (0.60 ) (1,339,062 ) (0.60 ) Expired - - - - Ending balance 6,825,000 $ 0.1368 4,594,688 $ 2.094 Vested options 1,610,506 1,410,938 Nonvested options 5,214,494 3,183,750 Intrinsic value of options $ 12,876,650 $ 6,140,313 Weighted Average Remaining Contractual Life (Years) 6.14 6.21 |
Schedule of Stock Options, Valuation Assumptions | The following assumptions were used for the periods as follows: Nine Months September 30, Year December 31, Expected term 7 years 7 years Expected volatility 114 – 126 135 – 177 % Expected dividend yield - - Risk-free interest rate 2.00 – 2.85 0.10 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of derivative liabilities and the contingent earnout fall | Fair Value Measurements at September 30, 2022 Level 1 Level 2 Level 3 Total Crom Derivative Liabilities $ - $ - $ 789,000 $ 789,000 Contingent Earnout $ - $ - $ 1,121,000 $ 1,121,000 Total $ - $ - $ 1,910,000 $ 1,910,000 Fair Value Measurements at December 31, 2021 Level 1 Level 2 Level 3 Total Crom Derivative Liabilities $ - $ - $ - $ - Contingent Earnout $ - $ - $ 257,000 $ 257,000 Total $ - $ - $ 257,000 $ 257,000 |
Summary of derivative liabilities | The Company’s derivative liabilities as of September 30, 2022 and December 31, 2021 associated with the Derivative Instruments are as follows. September 30, December 31, Inception Fair value of conversion option of Crom Cortana Fund LLC convertible note $ (345,000 ) $ - $ (314,000 ) Fair value of 656,250 warrants on April 4, 2022 (444,000 ) - (378,000 ) $ (789,000 ) $ - (692,000 ) |
Summary of change in the fair value of the derivative liabilities | Activity related to the derivative liabilities for the nine months ended September 30, 2022 is as follows: Beginning balance as of December 31, 2021 $ - Issuances of convertible note/warrants – derivative liabilities (692,000 ) Warrants exchanged for common stock - Change in fair value of warrant derivative liabilities (97,000 ) Ending balance as of September 30, 2022 $ (789,000 ) |
Summary of fair value measurements | Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each Derivative Instrument is estimated using a binomial valuation model. The following assumptions were used for the periods as follows: September Inception – Expected term – conversion option 0.51 years 1 year Expected term - warrants 4.51 years 5 years Stock price as of Measurement Date $ 4.30 $ 3.80 Equity volatility - unadjusted 284.80 % 278.80 % Volatility haircut 5.00 % 5.00 % Selected volatility – post haircut 115.0 % 112.60 % Senior unsecured synthetic credit rating CCC + CCC + B- market yield 7.90 % 4.50 % OAS differential between CCC+ and B- bonds 458 383 bps Risk adjusted rate 12.50 % 8.30 % Risk-free interest rate 3.90 % 1.70 % |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) - $ / shares | Oct. 13, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jul. 19, 2021 |
Nature Of Operations [Line Items] | ||||
Preferred stock par or stated value per share | $ 0.0001 | |||
Common stock par or stated value per share | $ 0.0001 | $ 0.0001 | 0.0001 | |
Preferred stock dividend per share | 0.0125 | |||
Preferred stock repurchase price per share | $ 1 | |||
Stock split ratio | 2 shares of common stock instead of 20 shares of common stock | |||
Certificate Of Amendment [Member] | ||||
Nature Of Operations [Line Items] | ||||
Preferred stock par or stated value per share | 0.0001 | |||
Common stock par or stated value per share | $ 0.0001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Company's Revenue By Contract Type (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 32,166,104 | $ 15,587,246 |
Time And Material [Member] | ||
Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,924,100 | 10,860,224 |
Firm Fixed Price [Member] | ||
Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,607,597 | 2,820,041 |
Cost Plus Fixed Fee [Member] | ||
Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,634,407 | 1,837,869 |
Other [Member] | ||
Accounting Policies [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 69,112 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Oct. 13, 2022 USD ($) | Sep. 30, 2022 USD ($) Segments $ / shares shares | Dec. 31, 2021 Segments | |
Accounting Policies [Line Items] | |||
Number of operating segments | Segments | 1 | 1 | |
Number of reporting segments | Segments | 1 | 1 | |
Class of warrants or rights number of securities covered by warrants or rights | shares | 1,080,717 | ||
Class of warrants or rights exercise price of warrants or rights | $ / shares | $ 1 | ||
Stock split ratio | 2 shares of common stock instead of 20 shares of common stock | ||
Minimum percentage of the largest amount of tax benefit likely to be realized upon ultimate settlement with the related tax authority | 50% | ||
IPO [Member] | Subsequent Event [Member] | CISD [Member] | |||
Accounting Policies [Line Items] | |||
Proceeds from issuance of common stock | $ | $ 3,000,000 | ||
Stock split ratio | 1:20 | ||
The Company [Member] | |||
Accounting Policies [Line Items] | |||
Noncontrolling interest, Ownership percentage by parent | 100% | ||
Notes Payable Due Two Thousand And Twenty Four [Member] | |||
Accounting Policies [Line Items] | |||
Debt instrument gross | $ | $ 5,600,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | May 04, 2022 | Apr. 15, 2022 | Aug. 12, 2021 | Aug. 05, 2021 | Feb. 11, 2021 | Jan. 01, 2021 |
MFSI [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition effective date of acquisition | Feb. 11, 2021 | |||||
Business acquisition percentage of voting interests acquired | 100% | |||||
Business combination reclassification from goodwill into other intangible assets upon finalization of valuation | $ 352,000 | |||||
Merrison [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition effective date of acquisition | Aug. 05, 2021 | |||||
Business acquisition percentage of voting interests acquired | 100% | |||||
Business combination reclassification from goodwill into other intangible assets upon finalization of valuation | $ 608,000 | |||||
Goodwill purchase accounting adjustments | 105,000 | |||||
Payment to acquire business, gross | $ 22,283 | |||||
SSI [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition effective date of acquisition | Aug. 12, 2021 | |||||
Business acquisition percentage of voting interests acquired | 100% | |||||
Business combination reclassification from goodwill into other intangible assets upon finalization of valuation | $ 3,584,000 | |||||
Goodwill purchase accounting adjustments | 2,608,661 | |||||
Business combination transaction costs incurred | 50,500 | |||||
Payment to acquire business, gross | $ 800,000 | |||||
Lexington Solutions Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination transaction costs incurred | $ 44,752 | |||||
Business combination equity interests issued or issuable number of shares | 625,000 | |||||
Stock issued during the period shares acquisition | 600,000 | |||||
Business combination contingent consideration payable in shares | 25,000 | |||||
Payment to acquire business, gross | $ 250,000 | |||||
Lexington Solutions Group [Member] | Tranche One [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination cash consideration payable | 250,000 | |||||
Lexington Solutions Group [Member] | Tranche Two [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination cash consideration payable | $ 280,000 |
Acquisitions - Schedule of Asse
Acquisitions - Schedule of Assets and Liabilities Acquired (Detail) - USD ($) | Apr. 15, 2022 | Aug. 12, 2021 | Aug. 05, 2021 | Jan. 01, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||||
Furniture and equipment | $ 257,572 | $ 167,987 | |||||
Goodwill | $ 15,533,964 | $ 14,062,964 | $ 4,136,011 | ||||
MFSI [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 93,240 | ||||||
Accounts receivable | 33,540 | ||||||
Unbilled receivable | 45,316 | ||||||
Other assets | 329,509 | ||||||
Right of use asset – operating lease | 14,862 | ||||||
Goodwill | 685,072 | ||||||
Deferred tax liability | (97,419) | ||||||
Line of credit | (12,249) | ||||||
Lease liability – operating lease | (13,862) | ||||||
Accounts payable and accrued expenses | (47,572) | ||||||
Net assets acquired | 1,382,437 | ||||||
The consideration paid for the acquisition | |||||||
Common stock | 1,382,437 | ||||||
MFSI [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 348,000 | ||||||
MFSI [Member] | Non-compete Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | $ 4,000 | ||||||
Merrison [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 183,588 | ||||||
Accounts receivable and unbilled receivables | 391,049 | ||||||
Goodwill | 780,730 | ||||||
Deferred tax liability | (243,730) | ||||||
Accounts payable and accrued expenses | (102,354) | ||||||
Net assets acquired | 1,617,283 | ||||||
The consideration paid for the acquisition | |||||||
Common stock | 1,595,000 | ||||||
Cash | 22,283 | ||||||
Total | 1,617,283 | ||||||
Merrison [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 322,000 | ||||||
Merrison [Member] | Non-compete Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 7,000 | ||||||
Merrison [Member] | Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 164,000 | ||||||
Merrison [Member] | Backlog [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | $ 115,000 | ||||||
SSI [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash | $ 998,935 | ||||||
Accounts receivable and unbilled receivables | 2,222,004 | ||||||
Prepaid expenses | 147,600 | ||||||
Other assets | 6,750 | ||||||
Furniture and equipment | 148,931 | ||||||
Right of use asset – operating lease | 169,063 | ||||||
Goodwill | 8,461,150 | ||||||
Deferred tax liability | (880,150) | ||||||
Lease liability – operating lease | (167,333) | ||||||
Contract liability | (226,591) | ||||||
Accounts payable and accrued expenses | (1,134,509) | ||||||
Net assets acquired | 13,329,850 | ||||||
The consideration paid for the acquisition | |||||||
Common stock | 7,872,850 | ||||||
Seller note | 400,000 | ||||||
Cash | 800,000 | ||||||
Contingent earnout/Holdback shares | 257,000 | ||||||
Lender financing | 4,000,000 | ||||||
Total | 13,329,850 | ||||||
SSI [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 3,102,000 | ||||||
SSI [Member] | Non-compete Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 65,000 | ||||||
SSI [Member] | Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 367,000 | ||||||
SSI [Member] | Backlog [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | $ 50,000 | ||||||
Lexington Solutions Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Receivable from Seller | $ 413,609 | ||||||
Due from Employee/Travel Advance | 5,000 | ||||||
Goodwill | 1,471,000 | ||||||
Net assets acquired | 3,176,003 | ||||||
The consideration paid for the acquisition | |||||||
Common stock | 2,280,000 | ||||||
Cash | 250,000 | ||||||
Contingent earnout/Holdback shares | 95,000 | ||||||
Due to seller (cash) | 551,003 | ||||||
Total | 3,176,003 | ||||||
Lexington Solutions Group [Member] | Miscellaneous License [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 2,394 | ||||||
Lexington Solutions Group [Member] | Customer Relationships [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 785,000 | ||||||
Lexington Solutions Group [Member] | Non-compete Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | 10,000 | ||||||
Lexington Solutions Group [Member] | Backlog [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles | $ 489,000 |
Acquisitions - Schedule of As_2
Acquisitions - Schedule of Assets and Liabilities Acquired (Parenthetical) (Detail) - Lexington Solutions Group [Member] - shares | May 04, 2022 | Apr. 15, 2022 |
Asset Acquisition [Line Items] | ||
Business acquisition, equity interest issued or issuable, number of shares | 625,000 | |
Common Stock [Member] | ||
Asset Acquisition [Line Items] | ||
Business acquisition, equity interest issued or issuable, number of shares | 600,000 | |
Holdback Shares [Member] | ||
Asset Acquisition [Line Items] | ||
Business acquisition, equity interest issued or issuable, number of shares | 25,000 |
Acquisitions - Schedule of As_3
Acquisitions - Schedule of Assets Acquired (Detail) - Pax River [Member] | 1 Months Ended |
Nov. 16, 2021 USD ($) | |
Asset Acquisition [Line Items] | |
Customer relationships (contracts) | $ 2,400,000 |
Net assets acquired | 2,400,000 |
Common stock | 1,925,000 |
Contingent consideration represented by obligation to issue shares | 275,000 |
Cash (included in amounts due to seller as of December 31, 2021) | 200,000 |
Consideration transferred | $ 2,400,000 |
Acquisitions - Schedule of As_4
Acquisitions - Schedule of Assets Acquired (Parenthetical) (Detail) - USD ($) | 9 Months Ended | ||
Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Asset Acquisition [Line Items] | |||
Finite lived intangible assets net | $ 7,131,860 | $ 7,595,599 | |
Pax River [Member] | |||
Asset Acquisition [Line Items] | |||
Payment settled to the acquiree of assets | 160,000 | ||
Remaining amount owed to the acquire of assets | 40,000 | ||
Customer Relationships [Member] | Pax River [Member] | |||
Asset Acquisition [Line Items] | |||
Finite lived intangible assets purchase accounting adjustments | $ 275,000 | 275,000 | |
Finite lived intangible assets net | $ 2,125,000 |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisition, Pro Forma Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenues | $ 33,685,580 | $ 20,333,508 |
Net loss | $ (7,843,711) | $ (127,660) |
Net loss per share - basic | $ (0.33) | $ 0 |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 257,572 | $ 167,987 |
Accumulated depreciation | (66,630) | (22,195) |
Fixed assets, net | 190,942 | 145,792 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 96,986 | 60,148 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 32,574 | 32,574 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 44,746 | 0 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 83,266 | $ 75,265 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 47,589 | $ 7,329 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 12,454,863 | $ 11,445,863 |
Accumulated amortization | (5,323,003) | (3,850,264) |
Intangible assets, net | 7,131,860 | 7,595,599 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 9,535,000 | 9,025,000 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 4 years 6 months | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 15 years | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 4 years 6 months | |
Intangible assets, gross | $ 266,000 | 266,000 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 533,863 | 533,863 |
Trademarks [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 10 years | |
Trademarks [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 15 years | |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,436,000 | 947,000 |
Backlog [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 2 years | |
Backlog [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years | |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 684,000 | $ 674,000 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 3 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful life | 5 years |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Amortization of intangible assets | $ 1,472,740 | $ 1,123,590 | |
Customer Relationships [Member] | Pax River [Member] | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, purchase accounting adjustments | $ 275,000 | $ 275,000 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Future Amortization of Intangible Assets (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
September 30, 2023 | $ 1,969,588 | |
September 30, 2024 | 1,653,245 | |
September 30, 2025 | 985,482 | |
September 30, 2026 | 721,751 | |
September 30, 2027 | 526,950 | |
Thereafter | 1,274,844 | |
Intangible assets, net | $ 7,131,860 | $ 7,595,599 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Goodwill (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance – beginning of period | $ 14,062,964 | $ 4,136,011 |
Additions | 1,471,000 | 9,926,953 |
Disposals | ||
Impairment | ||
Balance – ending of period | $ 15,533,964 | $ 14,062,964 |
Convertible Promissory Notes _3
Convertible Promissory Notes - Related Parties - Schedule of Convertible Promissory Notes, Related party (Detail) - Convertible note payable to related party [Member] - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total Convertible Notes Payable – Related Parties | $ 3,709,617 | $ 4,209,617 | |
Add: Premiums recorded on convertible note due to fair value adjustment at date of acquisition of Corvus | 0 | 2,569 | |
Less: BCF Discount | (3,012,791) | (1,407,002) | |
Total | 696,826 | 2,805,184 | |
Conversion price 0.26 per share [Member] | |||
Debt Instrument [Line Items] | |||
Total Convertible Notes Payable – Related Parties | [1] | 0 | 4,209,617 |
Convertible debt pursuant to debt amendment conversion price 0.26 per share [Member] | |||
Debt Instrument [Line Items] | |||
Total Convertible Notes Payable – Related Parties | $ 3,709,617 | $ 0 | |
[1]On February 1, 2021, the two promissory notes with The Buckhout Charitable Remainder Trust (Laurie Buckhout – Trustee), were combined into one new note in the principal balance of $4,279,617, that has a new maturity date of February 1, 2024. The interest rate remains at 5% per annum, and the note now includes monthly principal payments of $10,000. The conversion terms have remained at $0.26 per share. It was determined that under ASC 470, the debt amendment was considered a modification. Then again on August 12, 2021, the convertible note was amended to remove the principal payments and extend the debt further to September 30, 2024. It was determined that under ASC 470, the debt amendment was considered an extinguishment. The result of the extinguishment netted a gain of $2,667,903 that was recorded as additional paid in capital as the transaction was with a related party. |
Convertible Promissory Notes _4
Convertible Promissory Notes - Related Parties - Schedule of Convertible Promissory Notes, Related party (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Apr. 04, 2022 | Mar. 01, 2022 | Aug. 12, 2021 | Feb. 01, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | ||||||||||
Adjustment to additional paid in capital | $ 2,667,903 | |||||||||
Repayment of convertible debt | $ 500,000 | $ 70,000 | ||||||||
Proceeds from the issuance of medium term notes | 1,470,000 | |||||||||
Crom [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from the issuance of medium term notes | 500,000 | |||||||||
Convertible note payable to related party [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long term debt gross | $ 3,709,617 | $ 3,709,617 | $ 4,209,617 | |||||||
Convertible note payable to related party [Member] | Conversion price 0.26 per share [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible note payable, convertible Price | $ 0.26 | $ 0.26 | $ 0.26 | |||||||
Promissory note, interest rate | 5% | 5% | 5% | |||||||
Long term debt gross | [1] | $ 0 | $ 0 | $ 4,209,617 | ||||||
Convertible note payable to related party [Member] | Conversion price 0.26 per share [Member] | Buckhout Charitable Remainder Trust [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible note payable, convertible Price | $ 0.26 | |||||||||
Promissory note, interest rate | 5% | |||||||||
Promissory note, principal balance | $ 4,279,617 | |||||||||
Promissory note, maturity date | Feb. 01, 2024 | |||||||||
Promissory note, monthly principal | $ 10,000 | |||||||||
Adjustment to additional paid in capital | $ 2,667,903 | |||||||||
Repayment of convertible debt | $ 500,000 | |||||||||
Long term debt gross | $ 4,209,617 | |||||||||
Convertible note payable to related party [Member] | Conversion price 0.26 per share [Member] | Buckhout Charitable Remainder Trust [Member] | Debt instrument amendment agreement one [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Promissory note, maturity date | Sep. 30, 2024 | |||||||||
Convertible note payable to related party [Member] | Convertible debt pursuant to debt amendment conversion price 0.26 per share [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible note payable, convertible Price | $ 0.26 | $ 0.26 | $ 0.26 | |||||||
Promissory note, interest rate | 5% | 5% | 5% | |||||||
Long term debt gross | $ 3,709,617 | $ 3,709,617 | $ 0 | |||||||
Convertible note payable to related party [Member] | Convertible debt pursuant to debt amendment conversion price 0.26 per share [Member] | Buckhout Charitable Remainder Trust [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Promissory note, interest rate | $ 0 | |||||||||
Long term debt gross | 3,709,617 | 3,709,617 | ||||||||
Debt instrument periodic payment terms balloon payment to be paid | $ 2,709,617 | $ 2,709,617 | ||||||||
[1]On February 1, 2021, the two promissory notes with The Buckhout Charitable Remainder Trust (Laurie Buckhout – Trustee), were combined into one new note in the principal balance of $4,279,617, that has a new maturity date of February 1, 2024. The interest rate remains at 5% per annum, and the note now includes monthly principal payments of $10,000. The conversion terms have remained at $0.26 per share. It was determined that under ASC 470, the debt amendment was considered a modification. Then again on August 12, 2021, the convertible note was amended to remove the principal payments and extend the debt further to September 30, 2024. It was determined that under ASC 470, the debt amendment was considered an extinguishment. The result of the extinguishment netted a gain of $2,667,903 that was recorded as additional paid in capital as the transaction was with a related party. |
Convertible Promissory Notes _5
Convertible Promissory Notes - Related Parties - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||
Accrued interest payable current | $ 27,525 | |
Convertible note payable to related party [Member] | Convertible debt pursuant to debt amendment conversion price 0.26 per share [Member] | ||
Debt Instrument [Line Items] | ||
Interest Expense | 1,205,123 | $ 1,218,979 |
Accrued interest payable current | $ 110,749 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Notes Payable (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Notes Payable [Line Items] | |||
Total Notes Payable | $ 9,794,380 | $ 9,188,374 | |
Less: Debt Discount | (1,321,959) | (796,565) | |
Total | 8,472,421 | 8,391,809 | |
Notes Payable | |||
Schedule Of Notes Payable [Line Items] | |||
Total Notes Payable | [1] | 5,600,000 | 5,600,000 |
Promissory Note | |||
Schedule Of Notes Payable [Line Items] | |||
Total Notes Payable | [2] | 500,000 | 0 |
Convertible Notes Payable | |||
Schedule Of Notes Payable [Line Items] | |||
Total Notes Payable | [3] | 1,050,000 | 0 |
Term Note Payable [Member] | |||
Schedule Of Notes Payable [Line Items] | |||
Total Notes Payable | $ 2,644,280 | $ 3,588,374 | |
[1]on August 12, 2021, the note payable was amended to extend the debt to September 30, 2024. It was determined that under ASC 470, the debt amendment was considered a modification.[2]on February 28, 2022, the Company was obligated to issue 125,000 shares of common stock as further consideration for making this loan to the Company. The shares were issued in April 2022.[3]on April 4, 2022, the Company entered into a Securities Purchase Agreement (“SPA”) with Crom. The SPA includes (a) a Convertible Promissory Note dated April 4, 2022 in the amount of $1,050,000 at 7% interest per annum. This note matures April 4, 2023 (one-year) and is convertible at a conversion price of $1.60 per share; (b) the issuance of 656,250 warrants that mature April 4, 2027, with an exercise price of $1.84 per share; and (c) the issuance of 1,250,000 common shares at $0.40 per share ($500,000), the proceeds of which were paid to The Buckhout Charitable Remainder Trust for the First Payment. In addition, Crom was issued 125,000 common shares as further inducement to enter into the SPA. The Company analyzed the debt instrument with Crom, under ASC 815-10, and determined that the conversion option should be separated from the host debt instrument (i.e., bifurcated) and classified as a derivative liability, along with the value of the warrants as a derivative liability at the inception date of April 4, 2022. The fair value of the derivative liabilities at inception were reflected as a discount on the note, along with an original issue discount of $50,000, and the discount of $93,000 on the 1,250,000 shares of common stock issued to Crom that had a fair value of $593,000 which exceeded the $500,000 paid by Crom that will be amortized over the life of the note (one year). The derivative liability is marked to market each reporting period, and the Company recognized a loss on the change in fair value of the derivative liabilities of $173,000 from April 4, 2022 to September 30, 2022. |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Notes Payable (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Apr. 04, 2022 | Aug. 12, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Feb. 28, 2022 | |
Debt Instrument [Line Items] | |||||||||
Common Stock, Shares, Issued | 24,788,132 | 24,788,132 | 24,788,132 | 19,960,632 | |||||
Exercise Price of Warrants or Rights | $ 1 | $ 1 | $ 1 | ||||||
Fair Value of Derivatives Liabilities | $ 789,000 | $ 789,000 | $ 789,000 | $ 0 | |||||
Change in Fair Value of Derivatives Liabilities | $ (76,000) | $ 0 | $ 173,000 | $ 97,000 | $ 0 | ||||
Notes Payable, Other Payables [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Sep. 30, 2024 | Sep. 30, 2024 | |||||||
Interest Rate | 7% | 7% | 7% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 7.75% | 6.25% | |||||||
Convertible Notes Payable [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Apr. 04, 2023 | ||||||||
Debt Instrument, Issuance Date | Apr. 04, 2022 | ||||||||
Convertible Notes Payable | $ 1,050,000 | $ 1,050,000 | $ 1,050,000 | ||||||
Interest Rate | 7% | 7% | 7% | ||||||
Debt Instrument, Term | 1 year | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 1.6 | $ 1.6 | $ 1.6 | ||||||
Warrant issued | 656,250 | 656,250 | 656,250 | ||||||
Warrants and Rights Outstanding, Maturity Date | Apr. 04, 2027 | Apr. 04, 2027 | Apr. 04, 2027 | ||||||
Exercise Price of Warrants or Rights | $ 1.84 | $ 1.84 | $ 1.84 | ||||||
Stock issued during period, shares, new issues | 1,250,000 | ||||||||
Shares Issued, Price Per Share | $ 0.4 | $ 0.4 | $ 0.4 | ||||||
Stock Issued During Period, Value, New Issues | $ 500,000 | ||||||||
Debt Conversion, Original Debt, Amount | $ 50,000 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3% | ||||||||
Convertible Notes Payable [Member] | Crom [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Stock issued during period, shares, new issues | 125,000 | ||||||||
Debt Conversion, Converted Instrument, Amount | $ 93,000 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,250,000 | ||||||||
Fair Value of Derivatives Liabilities | $ 593,000 | $ 593,000 | $ 593,000 | ||||||
Related Party Transaction, Amounts of Transaction | $ 500,000 | ||||||||
Promissory Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Sep. 30, 2024 | ||||||||
Common Stock, Shares, Issued | 15,000,000 | 15,000,000 | 15,000,000 | 125,000 | |||||
Debt Instrument, Issuance Date | Feb. 28, 2022 | ||||||||
Interest Rate | 10% | 10% | 10% | ||||||
Notes Payable to Banks [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Aug. 11, 2024 |
Notes Payable - Schedule of Rep
Notes Payable - Schedule of Repayment, Net of Discounts (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Note Payable Repayment Schedule, Net Of Discounts [Line Items] | ||
Total | $ 8,472,421 | $ 8,391,809 |
Notes Payable And Convertible Notes Payable [Member] | ||
Schedule Of Note Payable Repayment Schedule, Net Of Discounts [Line Items] | ||
September 30, 2023 | 1,960,121 | |
September 30, 2024 | 6,512,300 | |
Total | $ 8,472,421 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Notes Payable [Line Items] | ||
Interest Expense, Debt | $ 1,325,885 | $ 608,706 |
Accrued interest payable current | $ 27,525 |
Note Payable - Related Party -
Note Payable - Related Party - Schedule Of Notes Payable To Related Party (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
SSI [Member] | ||
Schedule of notes payable to related party [Line Items] | ||
Notes Payable, Related Parties | $ 400,000 | $ 400,000 |
Note Payable - Related Party _2
Note Payable - Related Party - Additional Information (Details) - Note payable [Member] - USD ($) | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of notes payable to related party [Line Items] | ||||
Interest Expense, Related Party | $ 14,959 | $ 2,685 | ||
SSI [Member] | ||||
Schedule of notes payable to related party [Line Items] | ||||
Interest Rate | 5% | 5% | 5% | |
Debt instrument, maturity date | Dec. 31, 2024 | Dec. 31, 2024 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) | 9 Months Ended | ||
Apr. 04, 2022 | Sep. 30, 2022 | Apr. 12, 2022 | |
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 300,025 | ||
Line of credit facility, increase, accrued interest | $ 19,351 | ||
Line of credit facility, accrued interest | $ 11,971 | ||
Live Oak Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Long-term line of credit | $ 950,000 | ||
Debt instrument, maturity date | Mar. 28, 2029 | ||
Debt instrument, basis spread on variable rate | 2.75% |
Due To Seller - Additional Info
Due To Seller - Additional Information (Detail) - USD ($) | 1 Months Ended | |||
Oct. 31, 2022 | Feb. 28, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Asset Acquisition, Contingent Consideration, Liability, Current | $ 275,000 | |||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 551,003 | |||
Business Combination, Contingent Consideration, Liability, Current | 1,121,000 | 257,000 | ||
The Albers Group, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Asset Acquisition, Contingent Consideration, Liability, Current | 200,000 | 200,000 | ||
The Albers Group, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Transaction Costs | $ 200,000 | |||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 40,000 | $ 200,000 | ||
LSG Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Transaction Costs | 551,003 | |||
Payments to Acquire Businesses, Gross | $ 271,003 | 271,003 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | 250,000 | |||
Business Combination, Consideration Transferred, Other | 21,003 | |||
Business Combination, Contingent Consideration, Liability, Current | 551,003 | |||
LSG Acquisition [Member] | first tranche [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | 271,003 | |||
LSG Acquisition [Member] | Second Tranche [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 280,000 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Schedule of warrants (Detail) - Warrant [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number | ||
Beginning balance | 3,161,568 | 1,090,717 |
Granted | 1,017,268 | 2,070,851 |
Exercised Cashless | 0 | 0 |
Forfeited | 0 | 0 |
Expired | 0 | 0 |
Ending balance | 4,178,836 | 3,161,568 |
Warrants exercisable | 4,178,836 | 3,161,568 |
Intrinsic value of warrants | $ | $ 10,468,925 | $ 5,706,473 |
Weighted Average Remaining Contractual Life (Years) | 5 years 3 months 3 days | |
Weighted Average Exercise Price | ||
Beginning balance | $ / shares | $ 1.6 | $ 0 |
Granted | $ / shares | 2.6 | 2.4 |
Exercised Cashless | $ / shares | 0 | 0 |
Forfeited | $ / shares | 0 | 0 |
Expired | $ / shares | 0 | 0 |
Ending balance | $ / shares | $ 1.79 | $ 1.6 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Schedule of options (Detail) - Share-Based Payment Arrangement, Option [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number | ||
Beginning balance | 4,594,688 | 1,856,250 |
Granted | 2,535,000 | 4,087,500 |
Exercised | (15,000) | (10,000) |
Forfeited | (289,688) | (1,339,062) |
Expired | 0 | 0 |
Ending balance | 6,825,000 | 4,594,688 |
Vested options | 1,610,506 | 1,410,938 |
Nonvested options | 5,214,494 | 3,183,750 |
Intrinsic value of options | $ | $ 12,876,650 | $ 6,140,313 |
Weighted Average Remaining Contractual Life (Years) | 6 years 1 month 20 days | 6 years 2 months 15 days |
Weighted Average Exercise Price | ||
Beginning balance | $ / shares | $ 2.094 | $ 0.8 |
Granted | $ / shares | 3.6 | 2.4 |
Exercised | $ / shares | (0.8) | (0.8) |
Forfeited | $ / shares | (0.6) | (0.6) |
Expired | $ / shares | 0 | 0 |
Ending balance | $ / shares | $ 0.1368 | $ 2.094 |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) - Schedule of Stock Options, Valuation Assumptions (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Expected term | 7 years | 7 years |
Expected volatility minimum | 114% | 135% |
Expected volatility maximum | 126% | 177% |
Expected dividend yield | 0% | 0% |
Risk-free interest rate minimum | 2% | |
Risk-free interest rate maximum | 2.85% | |
Risk-free interest rate | 0.10% |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Apr. 07, 2022 | Feb. 15, 2022 | Aug. 25, 2021 | Aug. 20, 2021 | Aug. 06, 2021 | May 12, 2021 | Jun. 19, 2019 | Apr. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Apr. 04, 2022 | Nov. 09, 2021 | Jul. 19, 2021 | |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Preferred stock par or stated value per share | 0.0001 | |||||||||||||||||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||||||||||||||
Preferred stock, redemption price per share | $ 1 | |||||||||||||||||||||||||||
Payment of dividend on preferred stock | $ 30,569 | |||||||||||||||||||||||||||
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||||||||||
Common stock, shares, issued | 19,960,632 | 19,960,632 | 24,788,132 | 19,960,632 | ||||||||||||||||||||||||
Common stock, shares outstanding | 19,960,632 | 19,960,632 | 24,788,132 | 19,960,632 | ||||||||||||||||||||||||
Stock issued during period, value, stock options exercised | $ 12,000 | |||||||||||||||||||||||||||
Stock based compensation expense | $ 3,131,993 | $ 2,271,097 | ||||||||||||||||||||||||||
Class of warrants or rights exercise price of warrants or rights | $ 1 | |||||||||||||||||||||||||||
Deferred compensation liability, current and noncurrent | $ 15,647,325 | |||||||||||||||||||||||||||
Service Based Grants | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock based compensation expense | 2,733,718 | 929,384 | ||||||||||||||||||||||||||
Deferred compensation liability, current and noncurrent | 11,894,583 | |||||||||||||||||||||||||||
Performance Shares | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock based compensation expense | 398,275 | $ 1,341,713 | ||||||||||||||||||||||||||
Deferred compensation liability, current and noncurrent | $ 3,752,742 | |||||||||||||||||||||||||||
Stock Incentive Plan | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,500,000 | |||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 0 | |||||||||||||||||||||||||||
Service Based And Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation arrangement by share based payment award, options, exercises in period | 15,000 | |||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 1,810,000 | 725,000 | 150,000 | |||||||||||||||||||||||||
Share based compensation by share based award exercise in period aggregate fair value | $ 12,000 | |||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation arrangement by share based payment award, options, exercises in period | 10,000 | 15,000 | 15,000 | |||||||||||||||||||||||||
Stock issued during period, shares, issued for services | 7,500 | 7,500 | 15,000 | |||||||||||||||||||||||||
Stock issued during period, value, stock options exercised | $ 8,000 | $ 2 | ||||||||||||||||||||||||||
Common Stock | LSG Acquisition | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, acquisitions | 600,000 | 600,000 | ||||||||||||||||||||||||||
Common Stock | MFSI | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, acquisitions | 1,114,023 | |||||||||||||||||||||||||||
Stock issued during period, issuance date, description | April 29, 2021 and June 15, 2021 | |||||||||||||||||||||||||||
Stock cancelled during period, shares | 250,000 | |||||||||||||||||||||||||||
Stock cancelled during period, value | $ 400,000 | |||||||||||||||||||||||||||
Common Stock | Merrison | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, acquisitions | 500,000 | |||||||||||||||||||||||||||
Common Stock | SSI | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, acquisitions | 2,600,000 | 481,250 | 32,095 | |||||||||||||||||||||||||
Common Stock | Eisiminger Note [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Common stock, shares subscribed but unissued | 125,000 | |||||||||||||||||||||||||||
Common Stock | Vest Over Twelve Months | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, issued for services | 7,500 | |||||||||||||||||||||||||||
Warrant | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 2,070,624 | |||||||||||||||||||||||||||
Series C Preferred Stock Subscription Agreements | Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 62,000 | 15,000 | ||||||||||||||||||||||||||
Crom | Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 1,250,000 | |||||||||||||||||||||||||||
Stock issued during period, shares, issued for services | 125,000 | |||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ 500,000 | |||||||||||||||||||||||||||
Crom | Warrant | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants issued | 656,250 | |||||||||||||||||||||||||||
Officer | Warrant | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants issued | 361,017 | 130,000 | ||||||||||||||||||||||||||
Class of warrants or rights exercise price of warrants or rights | $ 1.6 | $ 3.8 | $ 1.6 | |||||||||||||||||||||||||
Class of warrant or right, date from which warrants or rights exercisable | May 02, 2029 | Jan. 20, 2028 | ||||||||||||||||||||||||||
Warrants and rights outstanding | $ 188,186 | $ 1,603,219 | $ 188,186 | |||||||||||||||||||||||||
Officer | Warrant | Tranche One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Class of warrants or rights exercise price of warrants or rights | $ 3.4 | |||||||||||||||||||||||||||
Warrants and rights outstanding | $ 775,792 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 320,000 | |||||||||||||||||||||||||||
Warrants and rights outstanding, maturity date | Aug. 20, 2028 | |||||||||||||||||||||||||||
Officer | Warrant | Tranche Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Class of warrants or rights exercise price of warrants or rights | $ 2 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 1,450,850 | |||||||||||||||||||||||||||
Warrants and rights outstanding, maturity date | Aug. 20, 2028 | |||||||||||||||||||||||||||
Officer | Crom | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Class of warrants or rights exercise price of warrants or rights | $ 1.84 | |||||||||||||||||||||||||||
Class of warrant or right, date from which warrants or rights exercisable | Apr. 04, 2027 | |||||||||||||||||||||||||||
Officer One | Warrant | Tranche One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants and rights outstanding | $ 387,896 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 160,000 | |||||||||||||||||||||||||||
Officer One | Warrant | Tranche Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants and rights outstanding | $ 1,035,312 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 725,425 | |||||||||||||||||||||||||||
Officer Two | Warrant | Tranche One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants and rights outstanding | $ 387,896 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 160,000 | |||||||||||||||||||||||||||
Officer Two | Warrant | Tranche Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Warrants and rights outstanding | $ 1,035,312 | |||||||||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 725,425 | |||||||||||||||||||||||||||
Individual One | Service Based And Performance Based Options | Tranche One | Service Based Options | Subtranche One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 50,000 | |||||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 12 months | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Individual Two | Service Based And Performance Based Options | Tranche Two | Service Based Options | Subtranche Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 25,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Individual Two | Service Based And Performance Based Options | Tranche Three | Service Based Options | Subtranche Three | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Individual Two | Service Based And Performance Based Options | Tranche Three | Performance Based Options | Subtranche Three | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Individual Three | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | |||||||||||||||||||||||||||
Individual Three | Service Based And Performance Based Options | Tranche Three | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 150,000 | |||||||||||||||||||||||||||
Individual Three | Service Based And Performance Based Options | Tranche Three | Service Based Options | Subtranche Three | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | |||||||||||||||||||||||||||
Individual Four | Service Based And Performance Based Options | Tranche Four | Subtranche Four | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 500,000 | |||||||||||||||||||||||||||
Individual Four | Service Based And Performance Based Options | Tranche Four | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Individual Four | Service Based And Performance Based Options | Tranche Four | Service Based Options | Subtranche Four | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 250,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Individual Four | Service Based And Performance Based Options | Tranche Four | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 250,000 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2028 | |||||||||||||||||||||||||||
Annual turnover to be achieved for vesting of stock options | $ 18,000,000 | |||||||||||||||||||||||||||
Net income as a percentage of turnover to be achieved | 7% | |||||||||||||||||||||||||||
Consultant | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 10,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Mar. 31, 2029 | |||||||||||||||||||||||||||
Chief Financial Officer | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 1,800,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.8 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Apr. 24, 2029 | |||||||||||||||||||||||||||
Advisor | Service Based And Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 150,000 | |||||||||||||||||||||||||||
Advisor | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | 50,000 | 50,000 | 125,000 | ||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 1 year | 1 year | ||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 1.8 | $ 1.8 | $ 1 | $ 1.6 | ||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | 7 years | 7 years | 7 years | ||||||||||||||||||||||||
Share based compensation by share based award expiration date | Mar. 31, 2028 | Mar. 11, 2028 | Feb. 20, 2028 | Dec. 31, 2027 | ||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Advisor | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 1.8 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Mar. 31, 2028 | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Share-Based Payment Arrangement, Employee | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 25,000 | |||||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 1 year | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 1.6 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Dec. 31, 2027 | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 1,500,000 | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 750,000 | |||||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 4 years | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 1.6 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Jun. 30, 2028 | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 750,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 1.6 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Jun. 30, 2028 | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | Performance Based Options | Milestone One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 250,000 | |||||||||||||||||||||||||||
Estimated revenue per annum | $ 12,000,000 | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | Performance Based Options | Milestone Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 250,000 | |||||||||||||||||||||||||||
Estimated revenue per annum | $ 25,000,000 | |||||||||||||||||||||||||||
Estimated earnings before interest tax depreciation and amortization | $ 2,500,000 | |||||||||||||||||||||||||||
Chief Growth Officer [Member] | Service Based And Performance Based Options | Performance Based Options | Milestone Three | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 250,000 | |||||||||||||||||||||||||||
Estimated revenue per annum | $ 100,000,000 | |||||||||||||||||||||||||||
Estimated revenue per quarter | $ 25,000,000 | |||||||||||||||||||||||||||
Consultant Of MFSI | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 12,500 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Aug. 31, 2028 | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 150,000 | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | |||||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 3 years | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 75,000 | |||||||||||||||||||||||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.4 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration period | 7 years | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | Performance Based Options | Milestone One | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 25,000 | |||||||||||||||||||||||||||
Estimated growth of revenue percentage per annum | 15% | |||||||||||||||||||||||||||
Estimated growth of earnings before interest tax depreciation and amortization percentage per annum | 15% | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | Performance Based Options | Milestone Two | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 25,000 | |||||||||||||||||||||||||||
Net profit percentage estimate per annum | 15% | |||||||||||||||||||||||||||
Former Owner Of Merrison | Service Based And Performance Based Options | Performance Based Options | Milestone Three | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 25,000 | |||||||||||||||||||||||||||
Period within which an employee requisition shall be filled | 45 days | |||||||||||||||||||||||||||
Three Individual Employees Of SSI | Service Based And Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 900,000 | |||||||||||||||||||||||||||
Three Individual Employees Of SSI | Service Based And Performance Based Options | Service Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 450,000 | |||||||||||||||||||||||||||
Share based compensation by share based award vesting period of stock options | 48 months | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Aug. 10, 2028 | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Three Individual Employees Of SSI | Service Based And Performance Based Options | Performance Based Options | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share based compensation by share based award options granted during the period | 450,000 | |||||||||||||||||||||||||||
Share based compensation by share based award expiration date | Aug. 10, 2028 | |||||||||||||||||||||||||||
Share based compensation by share based award options vesting percentage | 50% | |||||||||||||||||||||||||||
Series A Preferred | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Preferred stock par or stated value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||
Preferred stock, shares issued | 5,875,000 | 5,875,000 | 5,875,000 | 5,875,000 | ||||||||||||||||||||||||
Preferred stock, shares outstanding | 5,875,000 | 5,875,000 | 5,875,000 | 5,875,000 | ||||||||||||||||||||||||
Preferred stock, dividend rate, per dollar amount | $ 0.0125 | |||||||||||||||||||||||||||
Convertible preferred stock, shares issued upon conversion | 2 | |||||||||||||||||||||||||||
Preferred stock, redemption price per share | $ 1 | |||||||||||||||||||||||||||
Dividends, preferred stock | $ 36,719 | |||||||||||||||||||||||||||
Series A Preferred | Crom | Letter Agreement | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Common stock, shares subscribed but unissued | 1,750,000 | |||||||||||||||||||||||||||
Common stock, value, subscriptions | $ 455,000 | |||||||||||||||||||||||||||
Series A Preferred | Previously Reported | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Convertible preferred stock, shares issued upon conversion | 20 | |||||||||||||||||||||||||||
Series A Preferred | Former Officer | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Preferred stock, shares issued | 5,875,000 | |||||||||||||||||||||||||||
Series B Preferred | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Preferred stock par or stated value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||
Preferred stock, shares issued | 3,610,000 | 3,610,000 | 3,075,000 | 3,610,000 | ||||||||||||||||||||||||
Preferred stock, shares outstanding | 3,610,000 | 3,610,000 | 3,075,000 | 3,610,000 | ||||||||||||||||||||||||
Convertible preferred stock, shares issued upon conversion | 5 | |||||||||||||||||||||||||||
Preferred stock, voting rights | 10,000 | |||||||||||||||||||||||||||
Series B Preferred | Preferred Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 3,610,000 | |||||||||||||||||||||||||||
Conversion of stock, shares converted | 535,000 | |||||||||||||||||||||||||||
Series B Preferred | Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Conversion of stock, shares issued | 2,675,000 | |||||||||||||||||||||||||||
Series C Preferred | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Preferred stock par or stated value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||||
Preferred stock, shares issued | 620,000 | 620,000 | 770,000 | 620,000 | ||||||||||||||||||||||||
Preferred stock, shares outstanding | 620,000 | 620,000 | 770,000 | 620,000 | ||||||||||||||||||||||||
Preferred stock, dividend rate, per dollar amount | $ 0.06 | |||||||||||||||||||||||||||
Convertible preferred stock, shares issued upon conversion | 0.625 | |||||||||||||||||||||||||||
Series C Preferred | Preferred Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 150,000 | 620,000 | ||||||||||||||||||||||||||
Conversion of stock, shares converted | 770,000 | |||||||||||||||||||||||||||
Series C Preferred | Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, shares, new issues | 15,000 | 62,000 | ||||||||||||||||||||||||||
Conversion of stock, shares issued | 77,000 | |||||||||||||||||||||||||||
Series C Preferred | Preferred Stock Along With Common Stock | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued during period, value, new issues | $ 150,000 | $ 620,000 | ||||||||||||||||||||||||||
Preferred Class A [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Dividends, preferred stock, cash | $ 33,825 |
Fair Value - Summary of Derivat
Fair Value - Summary of Derivative Liabilities and the Contingent Earn out Fall (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crom Derivative Liabilities | $ 789,000 | $ 0 |
Contingent Earnout | 1,121,000 | 257,000 |
Total | 1,910,000 | 257,000 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crom Derivative Liabilities | 0 | 0 |
Contingent Earnout | 0 | 0 |
Total | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crom Derivative Liabilities | 0 | 0 |
Contingent Earnout | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Crom Derivative Liabilities | 789,000 | 0 |
Contingent Earnout | 1,121,000 | 257,000 |
Total | $ 1,910,000 | $ 257,000 |
Fair Value - Summary of Deriv_2
Fair Value - Summary of Derivative liabilities (Detail) - USD ($) | Sep. 30, 2022 | Apr. 04, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | |||
Derivative liabilities | $ (789,000) | $ (692,000) | $ 0 |
Convertible note [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | (345,000) | (314,000) | 0 |
Warrants [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | $ (444,000) | $ (378,000) | $ 0 |
Fair Value - Summary of Deriv_3
Fair Value - Summary of Derivative liabilities (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Apr. 04, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||||
Fair value of warrants | $ (76,000) | $ 0 | $ 173,000 | $ 97,000 | $ 0 | |
Warrants [Member] | ||||||
Derivative [Line Items] | ||||||
Fair value of warrants | $ 656,250 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Change in fair value of derivative liabilities | $ 76,000 | $ 0 | $ (173,000) | $ (97,000) | $ 0 |
Fair Value - Summary of Change
Fair Value - Summary of Change in the Fair Value of the Derivative Liabilities (Detail) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance as of December 31, 2021 | $ 0 |
Issuances of convertible note/warrants – derivative liabilities | (692,000) |
Warrants exchanged for common stock | 0 |
Change in fair value of warrant derivative liabilities | (97,000) |
Ending balance as of September 30, 2022 | $ (789,000) |
Fair Value - Summary of Fair Va
Fair Value - Summary of Fair Value Measurements (Detail) | 9 Months Ended | |
Apr. 04, 2022 yr | Sep. 30, 2022 yr | |
Measurement Input Expected Term Conversion Option [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 1 | 0.51 |
Measurement Input Expected Term Warrants [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 5 | 4.51 |
Measurement Input, Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 3.8 | 4.3 |
Measurement Input, Option Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 2.788 | 2.848 |
Measurement Input Volatility Haircut [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.05 | 0.05 |
Measurement Input Volatility Post Haircut [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 1.126 | 1.15 |
Measurement Input Senior unsecured Synthetic Credit Rating [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | CCC+ | CCC+ |
Measurement Input B Market Yield [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 4.5 | 7.9 |
Measurement Input OAS Differential Between CCC and B Bonds [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.0383 | 0.0458 |
Measurement Input, Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.083 | 0.125 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.017 | 0.039 |
Concentrations - Additional Inf
Concentrations - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Two Customers [Member] | Revenue, Product and Service Benchmark [Member] | Revenue from Rights Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 57% | ||
Three Customers [Member] | Revenue, Product and Service Benchmark [Member] | Revenue from Rights Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 53% | ||
Three Customers [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total account receivable | 69% | ||
Four Customers [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total account receivable | 72% | ||
Customer [Member] | Revenue, Product and Service Benchmark [Member] | Revenue from Rights Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10% |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Stock issued during period, Value, Issued for services | $ 11,940 | $ 6,188 | ||
Common Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock issued during period, Value, Issued for services | $ 1 | $ 1 | ||
Stock issued during period, Shares, Issued for services | 7,500 | 7,500 | 15,000 | |
Chief Growth Officer [Member] | Series C Preferred Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock issued during period, Value, Issued for services | $ 220,000 | |||
Stock issued during period, Shares, Issued for services | 220,000 | |||
Chief Growth Officer [Member] | Common Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock issued during period, Shares, Issued for services | 22,000 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||
Apr. 25, 2022 | Apr. 01, 2022 | Aug. 12, 2021 | Aug. 05, 2021 | Jul. 01, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Employment agreements, End date | Jun. 30, 2025 | ||||||
Class of warrant or right, Exercise price of warrants or rights | $ 1 | ||||||
Options [Member] | |||||||
Number of options granted | 2,535,000 | 4,087,500 | |||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.6 | $ 2.4 | |||||
The Change in Control Transaction [Member] | |||||||
Share price | $ 40 | ||||||
Less Than 35,000 Per Month [Member] | |||||||
Annual base salary | $ 35,000 | ||||||
Less Than 35,000 Per Month [Member] | Bell Performance Bonus [Member] | |||||||
Deferred compensation arrangement with individual, Cash awards granted, Percentage | 50% | ||||||
35,000 to Less Than 40,000 Per Month [Member] | Bell Performance Bonus [Member] | |||||||
Deferred compensation arrangement with individual, Cash awards granted, Percentage | 60% | ||||||
40,000 or More Per Month [Member] | |||||||
Annual base salary | $ 40,000 | ||||||
40,000 or More Per Month [Member] | Bell Performance Bonus [Member] | |||||||
Deferred compensation arrangement with individual, Cash awards granted, Percentage | 100% | ||||||
David Bell,Chief Financial Officer [Member] | Warrant [Member] | |||||||
Bonus warrants | 500,000 | ||||||
Class of warrant or right, Exercise price of warrants or rights | $ 2 | ||||||
David Bell,Chief Financial Officer [Member] | Warrant [Member] | Upon the Company Joining the Russell 3000 Andor Russell 2000 stock index(ices) [Member] | |||||||
Class of warrant or right, Exercise price of warrants or rights | $ 0.12 | ||||||
David Bell,Chief Financial Officer [Member] | Deferred Bonus [Member] | |||||||
Deferred compensation arrangement with individual, Cash award granted, Amount | $ 50,000 | ||||||
David Bell,Chief Financial Officer [Member] | Deferred Bonus [Member] | Upon the Company Joining the Russell 3000 Andor Russell 2000 stock index(ices) [Member] | |||||||
Deferred compensation arrangement with individual, Cash award granted, Amount | $ 100,000 | ||||||
Bonus warrants | 750,000 | ||||||
Employment Agreement [Member] | Management Personnel One [Member] | |||||||
Number of options received by personnel as per agreement | 300,000 | ||||||
Employment Agreement [Member] | Management Personnel Two [Member] | |||||||
Number of options received by personnel as per agreement | 300,000 | ||||||
Employment Agreement [Member] | Management Personnel Three [Member] | |||||||
Number of options received by personnel as per agreement | 300,000 | ||||||
Employment Agreement [Member] | Warrant [Member] | Commencing Trading On Tier Of NASDAQ OR NYSE [Member] | |||||||
Bonus warrants | 500,000 | ||||||
Strike price | $ 2 | ||||||
Employment Agreement [Member] | Warrant [Member] | After Joining Russel 3000 and Russel 2000 Stock Indices [Member] | |||||||
Bonus warrants | 1,250,000 | ||||||
Strike price | $ 2.4 | ||||||
Employment Agreement [Member] | Deferred Bonus [Member] | Commencing Trading On Tier Of NASDAQ OR NYSE [Member] | |||||||
Deferred compensation arrangement with individual, Cash award granted, Amount | $ 50,000 | ||||||
Employment Agreement [Member] | Deferred Bonus [Member] | After Joining Russel 3000 and Russel 2000 Stock Indices [Member] | |||||||
Deferred compensation arrangement with individual, Cash award granted, Amount | $ 125,000 | ||||||
Employment Agreement [Member] | David Bell,Chief Financial Officer [Member] | |||||||
Employment agreements, Renewal terms | The employment agreement has a term of three years and five days and automatically renews for successive one-year periods | ||||||
Number of days within which advance notice for intent not to renew has to be provided | 90 days | ||||||
Annual base salary | $ 275,000 | ||||||
Number of options granted | 1,800,000 | ||||||
Share based compensation arrangements by share based payment award, options, grants in period, weighted average exercise price | $ 3.8 | ||||||
Vesting period | 36 months | ||||||
Employment Agreement [Member] | David Bell,Chief Financial Officer [Member] | Upon Achieving An Annualized Revenue Run Rate Of 75,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | 35,000 | ||||||
Description of event determining per month increase in annual base salary committed | the Company achieving an annualized revenue run rate of $75,000,000 or greater | ||||||
Employment Agreement [Member] | David Bell,Chief Financial Officer [Member] | Upon Reaching an Annualized Revenue Run Rate of 150,000,000 or greater and EBITDA Margin of No Less Than 7 [Member] | |||||||
Per month increase in annual base salary committed | 40,000 | ||||||
Description of event determining per month increase in annual base salary committed | the Company reaching an annualized revenue run rate of $150,000,000 or greater and EBITDA margin of no less than 7% | ||||||
Employment Agreement [Member] | David Bell,Chief Financial Officer [Member] | Upon Reaching an Annualized Revenue Run Rate of 300,000,000 or Greater and Adjusted EBITDA Margin of No Less Than 8 [Member] | |||||||
Per month increase in annual base salary committed | 45,000 | ||||||
Description of event determining per month increase in annual base salary committed | the Company reaching an annualized revenue run rate of $300,000,000 or greater and adjusted EBITDA margin of no less than 8% | ||||||
Employment Agreement [Member] | David Bell,Chief Financial Officer [Member] | Upon Achieving An Annualized Revenue Run Rate Of 50,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 25,000 | ||||||
Description of event determining per month increase in annual base salary committed | the Company achieving an annualized revenue run rate of $50,000,000 or greater | ||||||
Employment Agreement [Member] | Mark Fuller and Jay Wright [Member] | |||||||
Employment Agreements, Term | 3 years | ||||||
Percentage of the trailing twelve months revenues of each company acquired during the term of the agreement paid as cash bonus | 1% | ||||||
Percentage of the trailing twelve month EBITDA of each business acquired during the term of the employment agreement paid as cash bonus | 4% | ||||||
Warrants and rights outstanding, Term | 7 years | ||||||
Class of warrant or right, exercise price of warrants or rights, description | strike price equal to the price used in such acquisition or if no stock is used, the 30-day moving average closing price of the Company’s stock | ||||||
Employment Agreement [Member] | Mark Fuller [Member] | |||||||
Annual base salary | $ 240,000 | ||||||
Number of warrant issued for each dollar amount of revenue acquired in any acquisition | 1 | ||||||
Employment Agreement [Member] | Mark Fuller [Member] | Upon Achieving An Annualized Revenue Run Rate Of 75,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 40,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue run rate of $75,000,000 or greater | ||||||
Employment Agreement [Member] | Mark Fuller [Member] | Upon Reaching An Annualized Revenue Run Rate Of 25,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 25,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue run rate of $25,000,000 or greater | ||||||
Employment Agreement [Member] | Mark Fuller [Member] | Upon Reaching An Annualized Revenue Of $50,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 30,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue of $50,000,000 or greater | ||||||
Employment Agreement [Member] | Jay Wright [Member] | |||||||
Annual base salary | $ 240,000 | ||||||
Number of warrant issued for each dollar amount of revenue acquired in any acquisition | 1 | ||||||
Employment Agreement [Member] | Jay Wright [Member] | Upon Achieving An Annualized Revenue Run Rate Of 75,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 40,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue run rate of $75,000,000 or greater | ||||||
Employment Agreement [Member] | Jay Wright [Member] | Upon Reaching An Annualized Revenue Run Rate Of 25,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 25,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue run rate of $25,000,000 or greater | ||||||
Employment Agreement [Member] | Jay Wright [Member] | Upon Reaching An Annualized Revenue Of $50,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 30,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon reaching an annualized revenue of $50,000,000 or greater | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | |||||||
Annual base salary | $ 250,000 | ||||||
Employment Agreements, Term | 4 years | ||||||
Employment Agreements Expiration Date | Jun. 30, 2025 | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Options [Member] | |||||||
Number of options granted | 1,500,000 | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Time Based Options [Member] | |||||||
Number of options granted | 750,000 | ||||||
Vesting period | 4 years | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Performance Based Options [Member] | |||||||
Number of options granted | 750,000 | ||||||
Number of options grants upon closing of acquisition | 250,000 | ||||||
Annualized Revenue Required to grant options upon clsoing of acquisition | $ 12,000,000 | ||||||
Number of options grant upon achieving the revenue and ebitda amounts | 250,000 | ||||||
Achievement of revenue required to grant options | $ 25,000,000 | ||||||
EBITDA required to grant options in any twelve month period | $ 2,500,000 | ||||||
Number of options grant upon overall achievement of revenue run rate based on quarterly performance | 250,000 | ||||||
Achievement of revenue run rate based on quarterly performance to grant options | $ 100,000,000 | ||||||
Achievement of revenue run rate in any calendar quarter to grant options | 25,000,000 | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Navy Division Reaching An Annualized Revenue Run Rate Of 25,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 25,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon the Navy division reaching an annualized revenue run rate of $25,000,000 or greater | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Navy Division Reaching An Annualized Revenue Run Rate Of 60,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 30,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon the Navy division reaching an annualized revenue of $60,000,000 or greater | ||||||
Employment Agreement [Member] | Chief Growth Officer [Member] | Navy Division Reaching An Annualized Revenue Run Rate Of 100,000,000 Or Greater [Member] | |||||||
Per month increase in annual base salary committed | $ 40,000 | ||||||
Description of event determining per month increase in annual base salary committed | upon the Navy division reaching an annualized revenue run rate of $100,000,000 or greater | ||||||
Employment Agreement [Member] | Former Executive Of Merrison [Member] | |||||||
Annual base salary | $ 220,000 | ||||||
Employment Agreements, Term | 3 years | ||||||
Employment Agreements Expiration Date | Aug. 05, 2024 | ||||||
As per agreement,number of stock options entitled to receive | 150,000 | ||||||
Bonus payable annually as per agreement | $ 80,000 | ||||||
Annualized net income required to maintain for one year period ending on applicable date to eligible of bonus | $ 500,000 | ||||||
Employment Agreement [Member] | Two Executives Of SSI As Well As Three Management Personnel [Member] | Management Personnel Three [Member] | |||||||
Employment Agreements, Term | 3 years | ||||||
Minimum [Member] | |||||||
Employment agreements, General term | 3 years | ||||||
Minimum [Member] | 35,000 to Less Than 40,000 Per Month [Member] | |||||||
Annual base salary | $ 35,000 | ||||||
Maximum [Member] | |||||||
Employment agreements, General term | 4 years | ||||||
Maximum [Member] | 35,000 to Less Than 40,000 Per Month [Member] | |||||||
Annual base salary | $ 40,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, Percent | (10.50%) | 6.30% | (12.70%) | 11.90% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | 1 Months Ended | ||||
Oct. 17, 2022 | Apr. 15, 2022 | Nov. 30, 2022 | Oct. 31, 2022 | Sep. 30, 2022 | |
Lexington Solutions Group [Member] | |||||
Subsequent Event [Line Items] | |||||
Payment to acquire business, gross | $ 250,000 | ||||
Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion | 5 | ||||
Subsequent Event [Member] | Eisiminger Note [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, Periodic payment, Principal | $ 100,000 | ||||
Subsequent Event [Member] | Lexington Solutions Group [Member] | Second Tranche [Member] | |||||
Subsequent Event [Line Items] | |||||
Payment to acquire business, gross | $ 250,000 | ||||
Subsequent Event [Member] | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Stock issued during period, Shares, reverse stock splits | 1,231 | ||||
Subsequent Event [Member] | Buckhout Charitable Remainder Trust [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, Periodic payment, Principal | $ 500,000 | ||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion | 15,375,000 | ||||
Subsequent Event [Member] | IPO [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock issued during period, Shares, New issues | 1,500,000 | ||||
Sale of stock, price per share | $ 2 | ||||
Subsequent Event [Member] | IPO [Member] | Company [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock issued during period, Shares, New issues | 1,350,000 | ||||
Subsequent Event [Member] | IPO [Member] | Stockholders [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock issued during period, Shares, New issues | 150,000 |