OMNIQ (OMQS) 10-Q 21 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 18, 2018
Document and Entity Information
Entity Registrant Name	Quest Solution, Inc.
Entity Central Index Key	278,165
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		39,673,631
Trading Symbol	QUES
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 244,596	$ 24,634
Restricted Cash	381,494	684,610
Accounts receivable, net	9,418,463	6,387,734
Inventory, net	2,141,855	439,720
Prepaid expenses	2,411,851	476,840
Other current assets	30,251	126,187
Total current assets	14,628,510	8,139,725
Fixed assets, net	85,951	92,803
Goodwill	10,114,164	10,114,164
Trade name, net	2,215,231	2,359,481
Customer Relationships, net	5,029,759	5,310,938
Other assets	37,063	39,512
Total assets	32,110,678	26,056,623
Current liabilities
Accounts payable and accrued liabilities	18,226,932	13,239,810
Accrued interest on note payable	43,323	38,430
Line of credit	4,832,353	3,667,417
Accrued payroll and sales tax	2,790,539	1,531,233
Deferred revenue, net		761,194
Current portion of note payable	2,275,404	3,429,025
Notes payable, related parties	106,500	106,500
Other current liabilities	156,957	121,117
Total current liabilities	28,432,008	22,894,726
Long term liabilities
Note payable, related party	3,222,900	3,222,900
Accrued interest, related party	185,862	165,014
Long term portion of note payable	130,294	130,294
Deferred revenue, net		452,024
Other long term liabilities	486,538	439,833
Total liabilities	32,457,602	27,304,791
Stockholders’ (deficit)
Common stock; $0.001 par value; 100,000,000 shares designated, 39,673,631 and 36,828,371 shares outstanding of March 31, 2018 and December 31, 2017, respectively.	39,673	36,828
Common stock to be repurchased by the Company	(230,490)	(230,490)
Additional paid-in capital	35,177,970	34,495,659
Accumulated (deficit)	(35,338,906)	(35,554,994)
Total stockholders’ (deficit)	(346,924)	(1,248,168)
Total liabilities and stockholders’ (deficit)	32,110,678	26,056,623
Series A Preferred Stock [Member]
Stockholders’ (deficit)
Preferred stock value
Series B Preferred Stock [Member]
Stockholders’ (deficit)
Preferred stock value
Series C Preferred Stock [Member]
Stockholders’ (deficit)
Preferred stock value	$ 4,829	$ 4,829

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Common stock, par value	$ 0.001	$ 0.001
Common shares designated	100,000,000	100,000,000
Common stock, shares outstanding	39,673,631	36,828,371
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares designated	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares designated	1	1
Preferred stock, shares outstanding	0	0
Series C Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares designated	15,000,000	15,000,000
Preferred stock, shares outstanding	3,143,530	3,143,530
Preferred stock, liquidation preference	$ 1	$ 1
Cumulative dividend price per share	$ 0.06	$ 0.06

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Total Revenues	$ 15,180,547	$ 14,437,556
Cost of goods sold
Cost of goods sold	12,014,454	11,445,609
Total costs of goods sold	12,014,454	11,445,609
Gross profit	3,166,093	2,991,947
Operating expenses
General and administrative	476,855	412,945
Salary and employee benefits	2,602,565	1,945,883
Depreciation and amortization	437,398	442,400
Professional fees	292,862	103,277
Total operating expenses	3,809,680	2,904,505
Income (loss) from operations	(643,587)	87,442
Other income (expenses):
Interest expense	(294,765)	(355,658)
Other (expenses) income	2,544	(6,042)
Total other expenses	(292,221)	(361,700)
Net loss before Income Taxes	(935,808)	(274,258)
Provision for Income Taxes
Current	(13,197)	(56,900)
Total Provision for Income Taxes	(13,197)	(56,900)
Net loss attributable to Quest Solution Inc.	(949,005)	(331,158)
Less: Preferred stock – Series C dividend	(48,124)	(46,507)
Net loss attributable to the common stockholders	$ (997,129)	$ (377,665)
Net loss per share - basic	$ (0.03)	$ (0.01)
Net loss per share from continuing operations - basic	$ (0.03)	$ (0.01)
Weighted average number of common shares outstanding - basic	37,125,286	35,141,560

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from continuing operating activities:
Net loss	$ (949,005)	$ (331,158)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Stock based compensation	685,155	26,756
Topic 606 Cumulative Adjustment	1,213,217
Depreciation and amortization	486,652	442,400
Changes in operating assets and liabilities:
(Increase) / decrease in accounts receivable	(3,030,729)	4,296,425
(Increase) / decrease in prepaid	(1,935,011)	(65,259)
(Increase) in inventory	(1,702,135)	(97,572)
Increase / (Decrease) in accounts payable and accrued liabilities	4,987,122	(889,466)
Increase in accrued interest and accrued liabilities, related party	25,741	166,962
(Decrease) in deferred revenue, net	(1,213,218)	(14,064)
Increase in accrued payroll and sales taxes payable	1,259,306	107,955
Decrease in other assets	98,385	419,411
Increase in other liabilities	34,421	14,568
Net cash (used in) provided by operating activities	(40,098)	4,076,958
Cash flows from investing activities:
(Increase) / decrease in restricted cash	303,116	2,639
Purchase of property and equipment	(54,371)	(1,120)
Net cash  provided by investing activities	248,745	1,519
Cash flows from financing activities:
Proceeds from shares sold		6,924
Increase in notes funding		85,000
Proceeds (payments) from line of credit	1,164,936	(2,474,840)
Payment of notes/loans payable	(1,153,621)	(1,707,919)
Net cash provided by (used) in financing activities	11,315	(4,090,835)
Net increase (decrease) in cash	219,962	(12,358)
Cash, beginning of period	24,634	289,480
Cash, end of period	244,596	277,122
Cash paid for interest		166,256
Cash paid for taxes
Supplementary for non-cash flow information:
Stock issued for services	208,800	876
Stock options issued	472,675	25,880
Shares to be repurchased	$ (230,490)	$ (230,490)

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The interim consolidated financial statements of Quest Solution, Inc. include the combined accounts of Quest Marketing, Inc., an Oregon Corporation, and Quest Exchange Ltd., a Canadian based holding company. On December 31, 2016, the Company merged BCS in Quest Marketing to form one US legal entity as part of its streamlining efforts. The interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2017 and notes thereto included in the Company’s Form 10-K filed with the SEC on May 8, 2018. The Company follows the same accounting policies in the preparation of interim reports, except for the adoption of ASC Topic 606, Revenue from Contracts with Customers. The Company operates in one segment. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of Quest Solution, Inc. is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management who is responsible for the integrity and objectivity of the financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements. Adoption of New Accounting Pronouncement in Fiscal 2018 In May 2014, the FASB issued new revenue recognition guidance under ASU 2014-09 that supersedes the existing revenue recognition guidance under U.S. Generally Accepted Accounting Principles (“GAAP”). The new standard, ASC Topic 606, focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of ASC Topic 606, the new standard, is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations (ASU 2016-08); 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016-10); 3) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016-11); and 4) additional guidance and practical expedients in response to identified implementation issues (ASU 2016-12). The Company took into the guidance provided in these ASUs related to revenue recognition. The Company has adopted ASC Topic 606 as of January 1, 2018 using the modified retrospective transition approach, in which the cumulative effect of applying the standard would be recognized at the date of initial application. An adjustment to decrease deferred revenue in the amount of $1,213,218 was established on the date of adoption relating to amounts deferred related to extended service contract sales through December 31, 2017. Prior to adoption of ASC Topic 606 net revenue from the sales of these contracts would be recognized immediately since the Company has no continuing obligation related to the sale of these products if the new guidance had been applied in the past. As a result of the adoption the Company recognizes revenue from extended service contracts on a net versus gross basis in the consolidated statements of operations. The Company recognized the cumulative effect of initially applying ASC Topic 606 as an adjustment of $1,213,218 of net deferred revenue to the opening balance of accumulated deficit. Deferred net revenue on December 31, 2017 $ 1,213,218 Accumulated deficit on December 31, 2017 $ (35,554,994 ) Accumulated deficit on January 1, 2018 $ (34,341,776 ) Net loss on March 31, 2018 $ (949,005 ) Less: Preferred stock - Series C dividend $ (48,125 ) Accumulated deficit on March 31, 2018 $ (35,338,906 ) Under this approach, revenue for 2017 is reported in the consolidated statements of operations and comprehensive income on the historical basis, and revenue for 2018 is reported in the consolidated statements of operations and comprehensive income under ASC Topic 606. A comparison of revenue for 2018 periods to the historical basis is included below. The Company acknowledges that the required adoption of ASC Topic 606 could have a material effect on annual revenue or net income from continuing operations on an ongoing basis. For the three months ended March 31 Topic 606 Topic 605 Topic 606 Topic 605 2018 2018 % 2017 Variance from 2017 Variance from 2017 Revenues Total revenues 15,180,547 15,302,514 0.80 % 14,437,556 742,991 864,958 Total costs of goods sold 12,014,454 12,304,443 2.36 % 11,445,609 568,845 858,834 Gross profit 3,166,093 2,998,071 (5.60 % ) 2,991,947 174,146 6,124 RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This new standard will be effective for the Company on January 1, 2018; however, early adoption is permitted with prospective application to any business development transaction. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In February 2016, the FASB issued ASU 2016-02 amended the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S GAAP, the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. The Company has evaluated other recent pronouncements and believes that none of them will have a material effect on the Company’s financial statements. CASH Cash consists of petty cash, checking, savings, and money market accounts. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of March 31, 2018 and December 31, 2017. The Company maintains its cash in bank deposit accounts which, at times, may exceed federal insured limits. The Company has restricted cash on deposit with a federally insured bank in the amount of $381,494 at March 31, 2018. This cash is security and collateral for a corporate credit card agreement with a bank and for deposit against a letter of credit issued for executive life insurance policies owned by the Company. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. The Company evaluates its estimates and assumptions on a regular basis. The Company uses historical experience and various other assumptions that are believed to be reasonable under the circumstances to form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may materially differ from these estimates and assumptions used in preparation of the consolidated financial statements. ACCOUNTS RECEIVABLE Accounts receivable are carried at their estimated collectible amounts. The Company provides allowances for uncollectible accounts receivable equal to the estimated collection losses that will be incurred in collection of all receivables. Accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. The Company’s management determines which accounts are past due and if deemed uncollectible, the Company charges off the receivable in the period the determination is made. The Company generally requires no collateral to secure its ordinary accounts receivable. Based on management’s evaluation, accounts receivable has a balance in the allowance for doubtful accounts of $12,501 and $12,501 for the three months ended March 31, 2018 and for the year ended December 31, 2017, respectively. GOODWILL AND INTANGIBLE ASSETS Intangible assets are stated at cost, net of accumulated amortization. The assets are being amortized on the straight-line method over useful lives ranging from 3 to 7 years. Amortization expense for the period ended March 31, 2018 and December 31, 2017 was $425,429 and $1,701,714, respectively. March 31, 2018 December 31, 2017 Goodwill $ 10,114,164 $ 10,114,164 Trade Names 4,390,000 4,390,000 Customer Relationships 9,190,000 9,190,000 Accumulated amortization (6,335,010 ) (5,909,581 ) Intangibles, net $ 17,359,154 $ 17,784,583 The future amortization expense on the Trade Names and Customer Relationships are as follows: Years ended December 31, 2018 $ 1,254,170 2019 1,471,714 2020 1,471,714 2021 1,405,792 2022 786,000 Thereafter 855,600 Total $ 7,244,990 Goodwill Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested annually at December 31 for impairment. The annual qualitative or quantitative assessments involve determining an estimate of the fair value of reporting units in order to evaluate whether an impairment of the current carrying amount of goodwill exists. A qualitative assessment evaluates whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test. The first step of a quantitative goodwill impairment test compares the fair value of the reporting unit to its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss may be recognized. The amount of impairment loss is determined by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount. If the carrying amount exceeds the implied fair value then an impairment loss is recognized equal to that excess. No impairment charges have been recorded as a result of the Company’s annual impairment assessments. The Company has adopted the provisions of ASU 2017-04—Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit’s carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. Thus, ASU 2017-04 permits an entity to record a goodwill impairment that is entirely or partly due to a decline in the fair value of other assets that, under existing GAAP, would not be impaired or have a reduced carrying amount. Furthermore, the ASU removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Accordingly, the goodwill of reporting unit or entity with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit/entity may indicate that goodwill is impaired. We test our goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our testing determines the recorded amount of goodwill exceeds the fair value. Our annual measurement date for testing goodwill impairment is December 31. None of the goodwill is deductible for income tax purposes. Intangibles Intangible assets with finite useful lives consist of Trademark and customer lists and are amortized on a straight-line basis over their estimated useful lives, which range from two to seven years. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. There was no impairment recorded for the three months ended March 31, 2018. ADVERTISING The Company generally expenses advertising costs as incurred. During the three month periods ended March 31, 2018 and 2017, the Company spent $39,008 and $188,077 on advertising (marketing, trade show and store front expense), net of co-operative rebates, respectively. The Company received rebates on advertising from co-operative advertising agreements with several vendors and suppliers. These rebates have been recorded as a reduction to the related advertising and marketing expense in the periods they are received. INVENTORY Substantially all inventory consists of raw materials and finished goods and are valued based upon first-in first-out (“FIFO”) cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on a detailed evaluation of inventory relative to any potential slow moving products or discontinued items as well as the market conditions for the specific inventory items. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides a hierarchy for inputs used in measuring fair value that prioritize the use of observable inputs over the use of unobservable inputs, when such observable inputs are available. The three levels of inputs that may be used to measure fair value are as follows: ● Level 1 - Quoted prices in active markets for identical assets or liabilities. ● Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in Markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. ● Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observable inputs may result in a reclassification of assets and liabilities within the three levels of the hierarchy outlined above. NET LOSS PER COMMON SHARE Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net loss per common share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive. The weighted-average number of common shares outstanding for computing basic EPS for the three months ended March 31, 2018 and 2017 were 37,125,286 and 35,141,560, respectively. Diluted net loss per share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities are antidilutive. Dilutive securities are excluded from the computation of diluted net loss per share because such securities have no anti-dilutive impact due to losses reported. FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Company are presented in U.S. dollars. The functional currency for the Company is U.S. dollars. Transactions in currencies other than the functional currency are recorded using the appropriate exchange rate at the time of the transaction. All of the Company’s continuing operations are conducted in U.S. dollars. The Company owns a non-operating subsidiary in Canada, from which it has no activity since October 1, 2016. Reclassifications and adjustments

Going Concern

Going Concern	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 – GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As of March 31, 2018, the Company had a working capital deficit of $13,803,498 and an accumulated deficit of $35,338,906. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis. Management’s plan to eliminate the going concern situation includes, but is not limited to, the continuation of improving cash flow, maintaining moderate cost reductions (subsequent to aggressive cost reduction actions already taken in 2017 and in the first quarter of 2018), the creation of additional sales and profits across its product lines, and the obtaining of sufficient financing to restructure current debt in a manner more in line with the Company’s improving cash flow and cost reduction successes. The matters that resulted in 2017, having substantial doubt about the Company’s ability to continue as a going concern, have been somewhat mitigated by the successful debt reduction settlements finalized in December of 2017 as detailed in the Company’s Annual Report on Form 10-K filed on May 8, 2018. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Concentrations	NOTE 3 – CONCENTRATIONS Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, accounts receivable, and accounts payable. Beginning January 1, 2015, all of our cash balances were insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per depositor at each financial institution. This coverage is available at all FDIC member institutions. The Company uses Wells Fargo Bank, which is an FDIC insured institution. The restricted cash in the amount of $381,494 at March 31, 2018 is in excess of the FDIC limit. For the three months and year ended March 31, 2018 and December 31, 2017, one customer accounted for 30.5% and 15.7% of the Company’s revenues, respectively. Accounts receivable at March 31, 2018 and December 31, 2017 are made up of trade receivables due from customers in the ordinary course of business. One customer made up 20.5% and another customer 15.7% of the trade accounts receivable balances at March 31, 2018 and December 31, 2017, respectively. Accounts payable are made up of payables due to vendors in the ordinary course of business at March 31, 2018 and December 31, 2017. One vendor made up 59.4% and 70.1%, respectively of the outstanding balance, which represented greater than 10% of accounts payable at March 31, 2018 and December 31, 2017, respectively.

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Accounts Receivable	NOTE 4 – ACCOUNTS RECEIVABLE At March 31, 2018 and December 31, 2017, accounts receivable consisted of the following: March 31, 2018 December 31, 2017 Trade Accounts Receivable $ 9,430,964 $ 6,400,235 Less Allowance for doubtful accounts (12,501 ) (12,501 ) Total Accounts Receivable (net) $ 9,418,463 $ 6,387,734

Inventory

Inventory	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventory	NOTE 5 – INVENTORY At March 31, 2018 and December 31, 2017, inventories consisted of the following: March 31, 2018 December 31, 2017 Equipment and clearing service $ 2,031,138 $ 329,003 Raw Materials 31,697 31,697 Finished Goods 79,020 79,020 Total inventories $ 2,141,855 $ 439,720

Fixed Assets

Fixed Assets	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Fixed assets	NOTE 6 – FIXED ASSETS Fixed assets are stated at cost, net of accumulated depreciation. Depreciation expense for the period ended March 31, 2018 and December 31, 2017 was $11,969 and $61,223, respectively March 31, 2018 December 31, 2017 Equipment $ 2,914,760 2,909,642 Furniture and Fixtures 316,853 316,853 Leasehold improvements 151,553 151,553 Accumulated depreciation (3,297,215 ) (3,285,245 ) Fixed Assets, net $ 85,951 92,803

Other Liabilities

Other Liabilities	3 Months Ended
	Mar. 31, 2018
Other Liabilities Disclosure [Abstract]
Other Liabilities	NOTE 7 – OTHER LIABILITIES At March 31, 2018 and December 31, 2017, other liabilities consisted of the following: March 31, 2018 December 31, 2017 Unearned Incentive from credit cards $ - $ 77,307 Key Man life Insurance liability 150,146 150,146 Dividend payable 336,392 289,687 Others 156,957 43,811 583,753 560,951 Less Current Portion (156,957 ) (121,118 ) Total long term other liabilities $ 486,538 $ 439,833

Credit Facilities and Line of C

Credit Facilities and Line of Credit	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Credit Facilities and Line of Credit	NOTE 8 – CREDIT FACILITIES AND LINE OF CREDIT On July 1, 2016, the Company entered into a Factoring and Security Agreement (the “FASA”) with Action Capital Corporation (“Action”) to establish a sale of accounts facility, whereby the Company may obtain short-term financing by selling and assigning to Action acceptable accounts receivable. Pursuant to the FASA, the outstanding principal amount of advances made by Action to the Company at any time shall not exceed $5,000,000. Action will reserve and withhold an amount in a reserve account equal to 5% of the face amount of each account purchased under the FASA. The balance outstanding under the Action credit line at March 31, 2018 was $4,832,353 and at December 31, 2017 $3,667,417 which includes accrued interest. The per annum interest rate with respect to the daily average balance of unpaid advances outstanding under the FASA (computed on a monthly basis) will be equal to the “Prime Rate” of Wells Fargo Bank N.A. plus 2%, plus a monthly fee equal to 0.75% of such average outstanding balance. The Company shall also pay all other costs incurred by Action under the FASA, including all bank fees. The FASA will continue in full force and effect unless terminated by either party upon 30 days’ prior written notice. Performance of the Company’s obligations under the FASA is secured by a security interest in certain collateral of the Company. The FASA includes customary representations and warranties and default provisions for transactions of this type.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Notes Payable	NOTE 9 - NOTES PAYABLE Notes payable at March 31, 2018 and December 31, 2017, consists of the following: March 31, 2018 December 31, 2017 Supplier Note Payable $ 1,976,915 $ 3,208,534 Insurance Note 77,998 - All Other 350,785 350,785 Total 2,405,698 3,559,319 Less current portion (2,275,404 ) (3,429,025 ) Long Term Notes Payable $ 130,294 $ 130,294 Future maturities of notes payable as of March 31, 2018 are as follows; 2018 $ 2,275,404 2019 130,294 Total $ 2,405,698 In connection with the BCS’ acquisition the Company assumed a related party note payable to the former CTO of the RFID division of BCS. The note is payable in equal monthly installments of $4,758 beginning October 31, 2014 and ended October 2018. The loan bears interest at 1.89% and is unsecured and subordinated to the Company’s bank debt. The balance on this loan at March 31, 2018 was $130,294 of which all of it was classified as long term. In July 2016, the holder of the note signed a subordination agreement with the Supplier of the Secured Promissory Note and Action Capital, whereby the noteholder agrees to subordinate its right to payment of capital and interest until the Supplier with the Secured Promissory Note is reimbursed in full. On July 18, 2016, the Company and the supplier entered into that certain Secured Promissory Note, with an effective date of July 1, 2016, in the principal amount of $12,492,137. The USD Note accrues interest at 12% per annum and is payable in six consecutive monthly installments of principal and accrued interest in a minimum principal amount of $250,000 each, with any remaining principal and accrued interest due and payable on December 31, 2016. ● On November 30, 2016, the Company entered into an Amendment Agreement to the secured Promissory Note whereby the maturity date was extended to March 31, 2017 and the monthly installments of principal and accrued interest were increased to $400,000 commencing December 15, 2016 with any remaining principal and accrued interest due and payable on March 31, 2017. The Amendment also provides that the Company will make an additional principal payment of $300,000 by December 15, 2016. ● On March 31, 2017, the Company entered into a Second Amendment Agreement to the secured Promissory Note whereby the maturity date was extended to September 30, 2017 whereby any remaining principal and accrued interest is due and payable on September 30, 2017. The Amendment also provides that the Company will continue to make monthly installments of principal and accrued interest in a minimum principal amount of $400,000 each. ● On September 30, 2017, the Company entered into a Third Amendment Agreement to the secured Promissory Note whereby the maturity date was extended to October 31, 2017. The Amendment also provides that the Company will continue to make monthly installments of principal and accrued interest in a minimum principal amount of $600,000 each. ● On November 15 th st st ● On February 14, 2018 the Company entered into a Fifth Amendment extended the maturity date to March 31 st

Subordinated Notes Payable

Subordinated Notes Payable	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Subordinated Notes Payable	NOTE 10 – SUBORDINATED NOTES PAYABLE Notes and loans payable consisted of the following: March 31, 2018 December 31, 2017 Note payable – Quest acquisition restructure $ 930,000 $ 930,000 Note payable – BCS acquisition restructure 1,200,000 1,200,000 Quest Preferred Stock note payable 1,199,400 1,199,400 Total notes payable $ 3,329,400 $ 3,329,400 For the three months ended March 31, 2018 and 2017, the Company recorded interest expense in connection with these notes in the amount of $20,232 and $160,790, respectively. The note payable for acquisition of Quest was issued on January 9, 2014 in conjunction with the acquisition of Quest Marketing, Inc. The initial interest rate was 1.89%, subsequent to December 31, 2015; the interest was increased to 6% and is due in 2018. Principal and interest payments have been postponed. In addition, on June 17, 2016, the Company entered into Promissory Note Conversion Agreement with one of the Noteholders whereby $684,000 of the promissory note was converted into 684,000 shares of Series C Preferred Stock. As part of the transaction, the related debt discount of $171,000 was recorded against Additional paid in capital. As part of the acquisition of Quest Marketing, the Company engaged an independent valuation analysis to do a valuation of the purchase accounting. In July 2016, the holders of the notes signed subordination agreements with the Supplier of the Secured Promissory Note and Action, whereby the noteholders agree to subordinate their rights and payments until the Supplier with the Secured Promissory Note is reimbursed in full. As a result, the balance on this loan and related accrued interest at December 31, 2016 were all classified as long term. The note payable for acquisition of BCS was issued on November 21, 2014 in conjunction with the acquisition of BCS. The current interest is at 1.89% and is due in 2018. This note is convertible into Common Stock at $2.00 per share, subject to board approval such that no debt holder can own more than 5% of the outstanding shares. Principal $ and interest payments have been postponed. In July 2016, the holders of the notes signed subordination agreements with the Supplier of the Secured Promissory Note and Action, whereby the noteholder agree to subordinate its right and payment of capital and interest until the Supplier with the Secured Promissory Note is reimbursed in full. As a result, the balance on this loan and related accrued interest at December 31, 2016 were all classified as long term. The Quest preferred stock 6% note payable is in conjunction with the promissory note issued in October 2015 related to the redemption and cancelation of 100% of the issued and outstanding Series A preferred stock as well as 3,400,000 stock options that had been issued to a now former employee. The principal payments have been postponed. In June 2016, the holder of the note granted the Company a forgiveness of debt in the amount of $75,000 which was recorded as an increase in the additional paid in capital because it was a related party transaction. In addition, on June 17, 2016, the Company entered into a Promissory Note Conversion Agreement with the Noteholder whereby $1,800,000 of the promissory note was converted into 1,800,000 shares of Series C Preferred Stock. In July 2016, the holders of the notes signed subordination agreements with the Supplier of the Secured Promissory Note and Action, whereby the noteholder agree to subordinate its right and payment of capital and interest until the Supplier with the Secured Promissory Note is reimbursed in full. As a result, the balance on this loan and related accrued interest at December 31, 2016 were all classified as long term. On February 28, 2018, the Company finalized two settlement agreements with David and Kathy Marin (the “Marin Settlement Agreements”) which have an effective date of December 30, 2017. Pursuant to the first Marin Settlement Agreement (the “Marin Settlement Agreement I”), the Company and the Marins agreed to reduce the Company’s purchase price for all of the capital stock of Bar Code Specialties, Inc., which was acquired by the Company from the Marins in November 2014. In the 2014 acquisition, the Company had issued David Marin a promissory note for $11,000,000 of which an aggregate of $10,696,465.17 (the “Owed Amount”) was outstanding as of February 26, 2018 which includes accrued interest earned but not paid. Pursuant to the Marin Settlement Agreement I, the amount of the indebtedness owed to Marin was reduced by $9,495,465.17 bringing the total amount owed to $1,201,000. Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $2,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million. The Marins agreed to release their security interest against the Company. In connection with the $9,495,465.17 reduction in the purchase price, the Company issued the Marins 3 year warrants to purchase an aggregate of 3,000,000 shares of Common Stock at an exercise price of $0.20 per share. On February 28, 2018, the Company finalized an additional settlement agreement with the Marins (the “Marin Settlement Agreement II”) whereby the Company settled a promissory note owed to the Marins in the original principal amount of $100,000 which currently had a balance of $111,064.69 in its entirety in exchange for an aggregate of 85,000 shares of the Company’s Series C Preferred Stock. The Series C Preferred Stock has a liquidation value and conversion price of $1.00 per share and automatically converts into Common Stock at $1.00 per share in the event that the Company’s common stock has a closing price of $1.50 per share for 20 consecutive trading days. The preferred stock pays a 6% dividend commencing two years from issuance. During the first two years, the Series C Preferred stock shall neither pay or accrue the dividend. The Company also agreed to transfer title to a vehicle that was being utilized by Mr. Marin to David Marin. In exchange therefor, the $100,000 Note and the accrued interest thereon was cancelled in its entirety. The effective date of the agreement is December 30, 2017. On February 22, 2018, the Company finalized a settlement agreement with Kurt Thomet whereby the Company settled its indebtedness to Mr. Thomet in the current amount of $5,437,136.40 in full in exchange for 60 monthly payments of $12,500 each commencing the earlier of (i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $21,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million. In addition, the Company issued Mr. Thomet an aggregate of 500,000 shares of restricted common stock and 1,000,000 shares of Series C Preferred Stock with the same rights and restrictions as described above in the description of the Marin Settlement II Agreement. The effective date of the agreement is December 30, 2017. On February 19, 2018, the Company finalized a settlement agreement with George Zicman whereby the Company settled its indebtedness to Mr. Zicman in the current amount of $1,304,198.55 in full in exchange for 60 monthly payments of $3,000 each commencing the earlier of (i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $2,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million. In addition, the Company issued Mr. Zicman an aggregate of 100,000 shares of common stock and 600,000 shares of Series C Preferred Stock with the same rights and restrictions as described above in the description of the Marin Settlement Agreement II. The effective date of the agreement is December 30, 2017. The repayment of the subordinated notes payable at March 31, 2018 is as follows: 2018 $ 106,500 2018 894,000 2019 894,000 2020 894,000 Thereafter 1,213,500 Total $ 4,002,000

Stockholders' Deficit

Stockholders' Deficit	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Stockholders' Deficit	NOTE 11 – STOCKHOLDERS’ DEFICIT PREFERRED STOCK Series A As of March 31, 2018, there were 1,000,000 Series A preferred shares designated and 0 Series A preferred shares outstanding. The board of directors had previously set the voting rights for the preferred stock at 1 share of preferred to 250 common shares. Series B As of March 31, 2018 there was 1 preferred share designated and 0 preferred shares outstanding. Effective on September 30, 2016, with the divestiture of Quest Solution Canada Inc., the one share was redeemed by the Company and retired. Series C As of March 31, 2018, there were 15,000,000 Series C preferred share authorized and 4,828,530 Series C preferred share outstanding. It has preferential rights above common shares and the Series B preferred shares and is entitled to receive a quarterly dividend at a rate of $0.06 per share per annum. As part of a debt settlement agreement effective December 30, 2017, 1,685,000 shares were issued with the quarterly dividend at a rate of $.06 per share per annum were waived for a period of 24 months, with no dividends being accrued or paid. Each Series C preferred share outstanding is convertible into one (1) share of common stock of Quest Solution, Inc. COMMON STOCK In April 2017, the Company issued 640,000 shares to the Chief Executive Officer as a signing bonus under his Employment Agreement. In addition, the Company issued 70,000 shares to the Chief Financial Officer as additional fees pursuant to his Contractor Agreement. On June 30, 2017, the Company issued 87,500 shares to board members in relation to the vesting schedule agreed to during 4 th On August 2, 2017, the Company authorized the issuance of 600,000 shares of common stock as part of a consulting agreement with Carlos Jaime Nissensohn. The shares were issued in November, 2017 On December 30, 2017, the Company authorized the issuance of 600,000 shares of common stock valued at $59,400, as part of a debt extinguishment agreement with two related parties. The common shares were issued on March 9, 2018. On March 08, 2018 and pursuant to the Plan, the Company granted a grand total of 1,700,000 Shares, as well as options to purchase up to 7,000,000 Shares (the “Options”) with an exercise price equal to the closing price of the Company’s common stock on Wednesday, March 07, 2018, $0.12 per share. A total of 1,000,000 Shares and 3,200,000 Options were issued to the Company’s Board of Directors as follows: ● Shai Lustgarten (Chairman of the Board) received 1,000,000 Shares and 2,000,000 Options; ● Andrew J. Macmillan received 400,000 Options; ● Yaron Shalem received 400,000 Options; and ● Niv Nissenson received 400,000 Options. On March 08, 2018 and pursuant to the Plan, the Company granted 500,000 Shares to its Chief Financial Officer Benjamin Kemper. On March 08, 2018, the Company issued 500,000 shares of the Company’s common stock, par value $0.001, to Mr. Carlos J Nissensohn, who is the father of Niv Nissensohn, a director of the Company, pursuant to a consulting agreement (the “Consulting Agreement”) dated August 02, 2017 which was previously filed with the SEC on the Company’s Form 8-K dated August, 04, 2017. On March 08,2018, the Company issued 200,000 shares of the Company’s common stock to the JSM SOC-DIG LP. As of March 31, 2018, the Company had 39,673,631 common shares outstanding. Warrants and Stock Options On March 08, 2018, the Company adopted an Equity Incentive Plan (the “Plan”), as an incentive, to retain in the employ of and as directors, officers, consultants, advisors and employees to the Company. Ten million (10,000,000) shares of the Corporation’s common stock, par value $0.001 (the “Shares”), was set aside and reserved for issuance pursuant to the Plan. Warrants March 31, 2018 March 31, 2017 Number of warrants Weighted Average Exercise Price Number of warrants Weighted Average Exercise Price Balance, beginning of period 5,905,000 $ 0.21 1,405,000 $ 0.52 Warrants granted - - - - Warrants expired (300,000 ) 1.00 - - Warrants cancelled, forfeited - - - - Warrants exercised - - - - Balance, end of period 5,605,000 $ 0.21 1,405,000 $ 0.52 Exercisable warrants 4,885,000 $ 0.23 1,405,000 $ 0.52 Outstanding warrants as of March 31, 2018 are as follows: Range of Exercise Prices Weighted Average residual life span (in years) Outstanding Warrants Weighted Average Exercise Price Exercisable Warrants Weighted Average Exercise Price $ 0.20 2.75 3,000,000 $ 0.20 3,000,000 $ 0.20 $ 0.25 0.01 205,000 $ 0.25 205,00 $ 0.25 $ 0.11 3.34 1,500,000 $ 0.11 750,000 $ 0.11 $ 1.00 0.25 900,000 $ 1.00 900,000 $ 1.00 $ 0.11 to 1.00 2.38 5,605,000 $ 0.21 4,855,000 $ 0.23 Warrants outstanding at March 31, 2018 and 2017 have the following expiry date and exercise prices: Expiry Date Exercise Prices March 31, 2018 March 31, 2017 March 22,2018 $ 1.00 - 300,000 April 1, 2018 $ 0.25 900,000 900,000 April 30, 2018 $ 0.25 5,000 5,000 July 1, 2018 $ 1.00 200,000 200,000 December 30, 2020 $ 0.20 3,000,000 - August 2, 2021 $ 0.11 1,500,000 - 5,605,000 1,405,000 Share Purchase Option Plan The Company has a stock option plan adopted in on November 17, 2014 and an equity incentive plan adopted March 8, 2018 whereby the Board of Directors, may grant to directors, officers, employees, or consultants of the Company shares of common stock as well as options to acquire common shares. The Board of Directors of the Company has the authority to determine the terms, limits, restrictions and conditions of the grant of options, to interpret the plan and make all decisions relating thereto. The plan was adopted by the Company’s Board of Directors in order to provide an inducement and serve as a long term incentive program. The maximum number of common shares that may be reserved for issuance under the Plan was set at 20,000,000. The option exercise price is established by the Board of Directors and may not be lower than the market price of the common shares at the time of grant. The options may be exercised during the option period determined by the Board of Directors, which may vary, but will not exceed ten years from the date of the grant. There are 20,000,000 of the Company’s common shares which may be issued pursuant to the exercise of share options granted under the Plan. As at March 31, 2018, the Company had issued options, allowing for the subscription of 16,353,000 common shares of its share capital. Stock Options March 31, 2018 March 31, 2017 Number of stock options Weighted Average Exercise Price Number of stock options Weighted Average Exercise Price Balance, beginning of period 9,625,000 $ 0.21 2,644,000 $ 0.49 Stock options granted 6,800,000 $ 0.12 700,000 $ 0.09 Stock options expired 72,000 $ 0.37 - - Stock options cancelled, forfeited - - - - Stock options exercised - - - - Balance, end of period 16,353,000 $ 0.17 3,344,000 $ 0.41 Exercisable stock options 10,167,666 $ 0.20 2,252,334 $ 0.45 For the three months ended March 31, 2018, the Company granted a total of 6,800,000 stock options, 1,200,000 stock options were granted to three Board members and 2,000,000 stock options were granted to the Chief Executive Officer, 200,000 to Company’s legal counsel. Outstanding stock options as of March 31, 2018 are as follows: Range of Exercise Prices Weighted Average residual life span (in years) Outstanding Stock Options Weighted Average Exercise Price Exercisable Stock Options Weighted Average Exercise Price $ 0.075 to 0.09 3.91 2,981,000 $ 0.08 2,220,666 $ 0.08 $ 0.11 3.34 3,500,000 $ 0.11 2,625,000 $ 0.11 $ 0.12 4.93 6,800,000 $ 0.12 2,500,000 $ 0.12 $ 0.145 9.51 500,000 $ 0.145 500,000 $ 0.145 $ 0.33 to 0.38 0.17 72,000 $ 0.36 72,000 $ 0.36 $ 0.50 6.65 2,500,000 $ 0.50 2,250,000 $ 0.50 $ 0.075 to 0.50 4.79 16,353,000 $ 0.17 10,167,666 $ 0.20 Stock options outstanding at March 31, 2018, and 2017 have the following expiry date and exercise prices: Expiry Date Exercise Prices March 31, 2018 March 31, 2017 April 27, 2018 $ 0.38 36,000 36,000 July 9, 2018 $ 0.33 36,000 36,000 August 2, 2021 $ 0.11 3,500,000 - February 17, 2022 $ 0.075 760,333 760,333 February 17, 2022 $ 0.09 1,520,667 1,520,667 March 30, 2022 $ 0.09 700,000 700,000 March 5, 2023 $ 0.12 6,800,000 - November 20, 2024 $ 0.50 2,500,000 2,500,000 October 2, 2027 $ 0.145 500,000 - 16,353,000 5,553,000 Stock compensation expense is $681,475 for the three months ended March 31, 2018 and $26,756 for the three months ended March 31, 2017.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Litigation	NOTE 12 – LITIGATION The Company was sued by Kurt Thomet for breach of obligations related to the outstanding debt obligations remaining from the promissory note executed on January 18, 2014 and subsequent amendments. The lawsuit was withdrawn in February 2018 with the restructure of debt made subsequent to the 2017 year end, but effective December 30, 2018. The company is not a party to any other pended material legal proceeding. To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company. To the knowledge of management, no director, executive officer or affiliate of the Company, any owner of record or beneficially of more than five percent of the Company’s Common Stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 13 – RELATED PARTY TRANSACTIONS The Company leased a building from the former owner of BCS for $9,000 per month, the lease was terminated on April 30, 2018. In addition, on August 2, 2017, the Company entered into a Consulting agreement with Carlos J. Nissensohn, a family member of a Director of the Company. The terms and condition of the contract are as follows: ● 24 month term with 90 day termination notice by the Company ● A monthly fee of $15,000 and a one-time signatory fee of 600,000 restricted shares ● 1,500,000 warrants to buy shares at $0.11 having a four year life and a vesting period of 12 months in 4 quarterly and equal installments, subject to continuous service to the Company ● In case the Company procures debt financing during the term of this agreement, without any equity component, Mr. Nissensohn shall be entitled to 3% of the gross funds raised, however if the Company is required to pay a success fee to another external entity, then Mr. Nissensohn shall be entitled to only 2% of the gross funds raised ● In addition to the above, in the event of an equity financing resulting in gross proceeds of at least $3,000,000 to the Company within 24 months of the date the contract, Mr. Nissensohn shall further be entitled to certain warrants to be granted by the Company which upon their exercise pursuant to their terms, Mr. Nissensohn shall be entitled to receive QUEST shares which represent 3% of the QUEST issued share capital immediately prior to the consummation of such investment. The warrants will carry an exercise price per warrant/share representing 100% of the closing price per share as closed in the equity financing. This section and the issue of the warrant by QUEST are subject to the approval of the Board of Directors of QUEST. However, if the Board does not approve the issuance of warrants; then Mr. Nissensohn will be entitled to a fee with the equivalent value based on a Black Scholes valuation ● In addition to the above, Mr. Nissensohn will be entitled to a $ st ● In addition to the aforementioned, in the event that Company shall close any M&A transaction with a third party target, Mr. Nissensohn shall be entitled to a success fee in the amount equal to 3% of the total transaction price, in any combination of cash and shares that will be determined by QUEST On February 28, 2018, the Company finalized two settlement agreements with David and Kathy Marin (the “Marin Settlement Agreements”) which have an effective date of December 30, 2017. Pursuant to the first Marin Settlement Agreement (the “Marin Settlement Agreement I”), the Company and the Marins agreed to reduce the Company’s purchase price for all of the capital stock of Bar Code Specialties, Inc., which was acquired by the Company from the Marins in November 2014. In the 2014 acquisition, the Company had issued David Marin a promissory note for $11,000,000 of which an aggregate of $10,696,465.17 (the “Owed Amount”) was outstanding as of February 26, 2018 which includes accrued interest earned but not paid. Pursuant to the Marin Settlement I Agreement, the amount of the indebtedness owed to Marin was reduced by $9,495,465.17 bringing the total amount owed to $1,201,000. Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $2,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million. The Marins have agreed to release their security interest against the Company. In connection with the $9,495,465.17 reduction in the purchase price, the Company issued the Marins 3 year warrants to purchase an aggregate of 3,000,000 shares of Common Stock at an exercise price of $0.20 per-share. On February 28, 2018, the Company finalized an additional settlement agreement with the Marins (the “Marin Settlement Agreement II”) whereby the Company settled a promissory note owed to the Marins in the original principal amount of $100,000 which currently had a balance of $111,064.69 in its entirety in exchange for an aggregate of 85,000 shares of the Company’s Series C Preferred Stock. The Series C Preferred Stock has a liquidation value and conversion price of $1.00 per share and automatically converts into Common Stock at $1.00 per share in the event that the Company’s common stock has a closing price of $1.50 per share for 20 consecutive trading days. The preferred stock pays a 6% dividend commencing two years from issuance. During the first two years, the Series C Preferred stock shall neither pay or accrue the dividend. The Company also agreed to transfer title to a vehicle that was being utilized by Mr. Marin to David Marin. In exchange therefor, the $100,000 Note and the accrued interest thereon was cancelled in its entirety. The effective date of the agreement is December 30, 2017. On February 22, 2018, the Company finalized a settlement agreement with Kurt Thomet whereby the Company settled its indebtedness to Mr. Thomet in the current amount of $5,437,136.40 in full in exchange for 60 monthly payments of $12,500 each commencing the earlier of (i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $21,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million. In addition, the Company issued Mr. Thomet an aggregate of 500,000 shares of restricted common stock and 1,000,000 shares of Series C Preferred Stock with the same rights and restrictions as described above in the description of the Marin Settlement II Agreement. The effective date of the agreement is December 30, 2017. On February 19, 2018, the Company finalized a settlement agreement with George Zicman whereby the Company settled its indebtedness to Mr. Zicman in the current amount of $1,304,198.55 in full in exchange for 60 monthly payments of $3,000 each commencing the earlier of (i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $2,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million. In addition, the Company issued Mr. Zicman an aggregate of 100,000 shares of common stock and 600,000 shares of Series C Preferred Stock with the same rights and restrictions as described above in the description of the Marin Settlement II Agreement. The effective date of the agreement is December 30, 2017. Each of the Marins, Thomet and Zicman entered into a voting agreement with the Company whereby they agreed to vote any shares of common stock beneficially owned by them as directed by the Company’s CEO and also agreed to a leakout restriction whereby they each agreed not to sell more than 10% of the common stock beneficially owned during any 30-day period.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 14 – SUBSEQUENT EVENTS There are no subsequent events.

Basis of Presentation and Sum20

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Principles of Consolidation	BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The interim consolidated financial statements of Quest Solution, Inc. include the combined accounts of Quest Marketing, Inc., an Oregon Corporation, and Quest Exchange Ltd., a Canadian based holding company. On December 31, 2016, the Company merged BCS in Quest Marketing to form one US legal entity as part of its streamlining efforts. The interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2017 and notes thereto included in the Company’s Form 10-K filed with the SEC on May 8, 2018. The Company follows the same accounting policies in the preparation of interim reports, except for the adoption of ASC Topic 606, Revenue from Contracts with Customers. The Company operates in one segment. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018.
Adoption of New Accounting Pronouncement in Fiscal 2018	Adoption of New Accounting Pronouncement in Fiscal 2018 In May 2014, the FASB issued new revenue recognition guidance under ASU 2014-09 that supersedes the existing revenue recognition guidance under U.S. Generally Accepted Accounting Principles (“GAAP”). The new standard, ASC Topic 606, focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of ASC Topic 606, the new standard, is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1) clarification of the implementation guidance on principal versus agent considerations (ASU 2016-08); 2) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016-10); 3) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016-11); and 4) additional guidance and practical expedients in response to identified implementation issues (ASU 2016-12). The Company took into the guidance provided in these ASUs related to revenue recognition. The Company has adopted ASC Topic 606 as of January 1, 2018 using the modified retrospective transition approach, in which the cumulative effect of applying the standard would be recognized at the date of initial application. An adjustment to decrease deferred revenue in the amount of $1,213,218 was established on the date of adoption relating to amounts deferred related to extended service contract sales through December 31, 2017. Prior to adoption of ASC Topic 606 net revenue from the sales of these contracts would be recognized immediately since the Company has no continuing obligation related to the sale of these products if the new guidance had been applied in the past. As a result of the adoption the Company recognizes revenue from extended service contracts on a net versus gross basis in the consolidated statements of operations. The Company recognized the cumulative effect of initially applying ASC Topic 606 as an adjustment of $1,213,218 of net deferred revenue to the opening balance of accumulated deficit. Deferred net revenue on December 31, 2017 $ 1,213,218 Accumulated deficit on December 31, 2017 $ (35,554,994 ) Accumulated deficit on January 1, 2018 $ (34,341,776 ) Net loss on March 31, 2018 $ (949,005 ) Less: Preferred stock - Series C dividend $ (48,125 ) Accumulated deficit on March 31, 2018 $ (35,338,906 ) Under this approach, revenue for 2017 is reported in the consolidated statements of operations and comprehensive income on the historical basis, and revenue for 2018 is reported in the consolidated statements of operations and comprehensive income under ASC Topic 606. A comparison of revenue for 2018 periods to the historical basis is included below. The Company acknowledges that the required adoption of ASC Topic 606 could have a material effect on annual revenue or net income from continuing operations on an ongoing basis. For the three months ended March 31 Topic 606 Topic 605 Topic 606 Topic 605 2018 2018 % 2017 Variance from 2017 Variance from 2017 Revenues Total revenues 15,180,547 15,302,514 0.80 % 14,437,556 742,991 864,958 Total costs of goods sold 12,014,454 12,304,443 2.36 % 11,445,609 568,845 858,834 Gross profit 3,166,093 2,998,071 (5.60 % ) 2,991,947 174,146 6,124
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This new standard will be effective for the Company on January 1, 2018; however, early adoption is permitted with prospective application to any business development transaction. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In February 2016, the FASB issued ASU 2016-02 amended the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S GAAP, the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. The Company has evaluated other recent pronouncements and believes that none of them will have a material effect on the Company’s financial statements.
Cash	CASH Cash consists of petty cash, checking, savings, and money market accounts. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of March 31, 2018 and December 31, 2017. The Company maintains its cash in bank deposit accounts which, at times, may exceed federal insured limits. The Company has restricted cash on deposit with a federally insured bank in the amount of $381,494 at March 31, 2018. This cash is security and collateral for a corporate credit card agreement with a bank and for deposit against a letter of credit issued for executive life insurance policies owned by the Company.
Use of Estimates	USE OF ESTIMATES The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. The Company evaluates its estimates and assumptions on a regular basis. The Company uses historical experience and various other assumptions that are believed to be reasonable under the circumstances to form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may materially differ from these estimates and assumptions used in preparation of the consolidated financial statements.
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable are carried at their estimated collectible amounts. The Company provides allowances for uncollectible accounts receivable equal to the estimated collection losses that will be incurred in collection of all receivables. Accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. The Company’s management determines which accounts are past due and if deemed uncollectible, the Company charges off the receivable in the period the determination is made. The Company generally requires no collateral to secure its ordinary accounts receivable. Based on management’s evaluation, accounts receivable has a balance in the allowance for doubtful accounts of $12,501 and $12,501 for the three months ended March 31, 2018 and for the year ended December 31, 2017, respectively.
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Intangible assets are stated at cost, net of accumulated amortization. The assets are being amortized on the straight-line method over useful lives ranging from 3 to 7 years. Amortization expense for the period ended March 31, 2018 and December 31, 2017 was $425,429 and $1,701,714, respectively. March 31, 2018 December 31, 2017 Goodwill $ 10,114,164 $ 10,114,164 Trade Names 4,390,000 4,390,000 Customer Relationships 9,190,000 9,190,000 Accumulated amortization (6,335,010 ) (5,909,581 ) Intangibles, net $ 17,359,154 $ 17,784,583 The future amortization expense on the Trade Names and Customer Relationships are as follows: Years ended December 31, 2018 $ 1,254,170 2019 1,471,714 2020 1,471,714 2021 1,405,792 2022 786,000 Thereafter 855,600 Total $ 7,244,990 Goodwill Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested annually at December 31 for impairment. The annual qualitative or quantitative assessments involve determining an estimate of the fair value of reporting units in order to evaluate whether an impairment of the current carrying amount of goodwill exists. A qualitative assessment evaluates whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step quantitative goodwill impairment test. The first step of a quantitative goodwill impairment test compares the fair value of the reporting unit to its carrying amount including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss may be recognized. The amount of impairment loss is determined by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount. If the carrying amount exceeds the implied fair value then an impairment loss is recognized equal to that excess. No impairment charges have been recorded as a result of the Company’s annual impairment assessments. The Company has adopted the provisions of ASU 2017-04—Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit’s carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. Thus, ASU 2017-04 permits an entity to record a goodwill impairment that is entirely or partly due to a decline in the fair value of other assets that, under existing GAAP, would not be impaired or have a reduced carrying amount. Furthermore, the ASU removes “the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test.” Instead, all reporting units, even those with a zero or negative carrying amount will apply the same impairment test. Accordingly, the goodwill of reporting unit or entity with zero or negative carrying values will not be impaired, even when conditions underlying the reporting unit/entity may indicate that goodwill is impaired. We test our goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our testing determines the recorded amount of goodwill exceeds the fair value. Our annual measurement date for testing goodwill impairment is December 31. None of the goodwill is deductible for income tax purposes. Intangibles Intangible assets with finite useful lives consist of Trademark and customer lists and are amortized on a straight-line basis over their estimated useful lives, which range from two to seven years. The estimated useful lives associated with finite-lived intangible assets are consistent with the estimated lives of the associated products and may be modified when circumstances warrant. Such assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. There was no impairment recorded for the three months ended March 31, 2018.
Advertising	ADVERTISING The Company generally expenses advertising costs as incurred. During the three month periods ended March 31, 2018 and 2017, the Company spent $39,008 and $188,077 on advertising (marketing, trade show and store front expense), net of co-operative rebates, respectively. The Company received rebates on advertising from co-operative advertising agreements with several vendors and suppliers. These rebates have been recorded as a reduction to the related advertising and marketing expense in the periods they are received.
Inventory	INVENTORY Substantially all inventory consists of raw materials and finished goods and are valued based upon first-in first-out (“FIFO”) cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on a detailed evaluation of inventory relative to any potential slow moving products or discontinued items as well as the market conditions for the specific inventory items.
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides a hierarchy for inputs used in measuring fair value that prioritize the use of observable inputs over the use of unobservable inputs, when such observable inputs are available. The three levels of inputs that may be used to measure fair value are as follows: ● Level 1 - Quoted prices in active markets for identical assets or liabilities. ● Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in Markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. ● Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observable inputs may result in a reclassification of assets and liabilities within the three levels of the hierarchy outlined above.
Net Loss Per Common Share	NET LOSS PER COMMON SHARE Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic net loss per common share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued, unless doing so is anti-dilutive. The weighted-average number of common shares outstanding for computing basic EPS for the three months ended March 31, 2018 and 2017 were 37,125,286 and 35,141,560, respectively. Diluted net loss per share of common stock is the same as basic net loss per share of common stock because the effects of potentially dilutive securities are antidilutive. Dilutive securities are excluded from the computation of diluted net loss per share because such securities have no anti-dilutive impact due to losses reported.
Foreign Currency Translation	FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Company are presented in U.S. dollars. The functional currency for the Company is U.S. dollars. Transactions in currencies other than the functional currency are recorded using the appropriate exchange rate at the time of the transaction. All of the Company’s continuing operations are conducted in U.S. dollars. The Company owns a non-operating subsidiary in Canada, from which it has no activity since October 1, 2016. Reclassifications and adjustments

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Adoption of New Accounting Pronouncements	Deferred net revenue on December 31, 2017 $ 1,213,218 Accumulated deficit on December 31, 2017 $ (35,554,994 ) Accumulated deficit on January 1, 2018 $ (34,341,776 ) Net loss on March 31, 2018 $ (949,005 ) Less: Preferred stock - Series C dividend $ (48,125 ) Accumulated deficit on March 31, 2018 $ (35,338,906 ) Under this approach, revenue for 2017 is reported in the consolidated statements of operations and comprehensive income on the historical basis, and revenue for 2018 is reported in the consolidated statements of operations and comprehensive income under ASC Topic 606. A comparison of revenue for 2018 periods to the historical basis is included below. The Company acknowledges that the required adoption of ASC Topic 606 could have a material effect on annual revenue or net income from continuing operations on an ongoing basis. For the three months ended March 31 Topic 606 Topic 605 Topic 606 Topic 605 2018 2018 % 2017 Variance from 2017 Variance from 2017 Revenues Total revenues 15,180,547 15,302,514 0.80 % 14,437,556 742,991 864,958 Total costs of goods sold 12,014,454 12,304,443 2.36 % 11,445,609 568,845 858,834 Gross profit 3,166,093 2,998,071 (5.60 % ) 2,991,947 174,146 6,124
Schedule of Goodwill and Intangible Assets	Amortization expense for the period ended March 31, 2018 and December 31, 2017 was $425,429 and $1,701,714, respectively. March 31, 2018 December 31, 2017 Goodwill $ 10,114,164 $ 10,114,164 Trade Names 4,390,000 4,390,000 Customer Relationships 9,190,000 9,190,000 Accumulated amortization (6,335,010 ) (5,909,581 ) Intangibles, net $ 17,359,154 $ 17,784,583
Schedule of Amortized Expense	The future amortization expense on the Trade Names and Customer Relationships are as follows: Years ended December 31, 2018 $ 1,254,170 2019 1,471,714 2020 1,471,714 2021 1,405,792 2022 786,000 Thereafter 855,600 Total $ 7,244,990

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of Accounts Receivable Net	At March 31, 2018 and December 31, 2017, accounts receivable consisted of the following: March 31, 2018 December 31, 2017 Trade Accounts Receivable $ 9,430,964 $ 6,400,235 Less Allowance for doubtful accounts (12,501 ) (12,501 ) Total Accounts Receivable (net) $ 9,418,463 $ 6,387,734

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	At March 31, 2018 and December 31, 2017, inventories consisted of the following: March 31, 2018 December 31, 2017 Equipment and clearing service $ 2,031,138 $ 329,003 Raw Materials 31,697 31,697 Finished Goods 79,020 79,020 Total inventories $ 2,141,855 $ 439,720

Fixed Assets (Tables)

Fixed Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Fixed Assets	Depreciation expense for the period ended March 31, 2018 and December 31, 2017 was $11,969 and $61,223, respectively March 31, 2018 December 31, 2017 Equipment $ 2,914,760 2,909,642 Furniture and Fixtures 316,853 316,853 Leasehold improvements 151,553 151,553 Accumulated depreciation (3,297,215 ) (3,285,245 ) Fixed Assets, net $ 85,951 92,803

Other Liabilities (Tables)

Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Other Liabilities Disclosure [Abstract]
Schedule of Other Liabilities	At March 31, 2018 and December 31, 2017, other liabilities consisted of the following: March 31, 2018 December 31, 2017 Unearned Incentive from credit cards $ - $ 77,307 Key Man life Insurance liability 150,146 150,146 Dividend payable 336,392 289,687 Others 156,957 43,811 583,753 560,951 Less Current Portion (156,957 ) (121,118 ) Total long term other liabilities $ 486,538 $ 439,833

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable at March 31, 2018 and December 31, 2017, consists of the following: March 31, 2018 December 31, 2017 Supplier Note Payable $ 1,976,915 $ 3,208,534 Insurance Note 77,998 - All Other 350,785 350,785 Total 2,405,698 3,559,319 Less current portion (2,275,404 ) (3,429,025 ) Long Term Notes Payable $ 130,294 $ 130,294
Schedule of Future Maturities of Note Payable	Future maturities of notes payable as of March 31, 2018 are as follows; 2018 $ 2,275,404 2019 130,294 Total $ 2,405,698

Subordinated Notes Payable (Tab

Subordinated Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Subordinated Notes Payable	Notes and loans payable consisted of the following: March 31, 2018 December 31, 2017 Note payable – Quest acquisition restructure $ 930,000 $ 930,000 Note payable – BCS acquisition restructure 1,200,000 1,200,000 Quest Preferred Stock note payable 1,199,400 1,199,400 Total notes payable $ 3,329,400 $ 3,329,400
Schedule of Future Maturities of Subordinated Notes Payable	The repayment of the subordinated notes payable at March 31, 2018 is as follows: 2018 $ 106,500 2018 894,000 2019 894,000 2020 894,000 Thereafter 1,213,500 Total $ 4,002,000

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of Stock Options Warrants	The following table summarizes information about warrants granted during the three month periods ended March 31, 2018 and 2017: March 31, 2018 March 31, 2017 Number of warrants Weighted Average Exercise Price Number of warrants Weighted Average Exercise Price Balance, beginning of period 5,905,000 $ 0.21 1,405,000 $ 0.52 Warrants granted - - - - Warrants expired (300,000 ) 1.00 - - Warrants cancelled, forfeited - - - - Warrants exercised - - - - Balance, end of period 5,605,000 $ 0.21 1,405,000 $ 0.52 Exercisable warrants 4,885,000 $ 0.23 1,405,000 $ 0.52
Schedule of Outstanding Warrants	Outstanding warrants as of March 31, 2018 are as follows: Range of Exercise Prices Weighted Average residual life span (in years) Outstanding Warrants Weighted Average Exercise Price Exercisable Warrants Weighted Average Exercise Price $ 0.20 2.75 3,000,000 $ 0.20 3,000,000 $ 0.20 $ 0.25 0.01 205,000 $ 0.25 205,00 $ 0.25 $ 0.11 3.34 1,500,000 $ 0.11 750,000 $ 0.11 $ 1.00 0.25 900,000 $ 1.00 900,000 $ 1.00 $ 0.11 to 1.00 2.38 5,605,000 $ 0.21 4,855,000 $ 0.23
Schedule of Warrants Outstanding, Expiry Date and Exercise Prices	Warrants outstanding at March 31, 2018 and 2017 have the following expiry date and exercise prices: Expiry Date Exercise Prices March 31, 2018 March 31, 2017 March 22,2018 $ 1.00 - 300,000 April 1, 2018 $ 0.25 900,000 900,000 April 30, 2018 $ 0.25 5,000 5,000 July 1, 2018 $ 1.00 200,000 200,000 December 30, 2020 $ 0.20 3,000,000 - August 2, 2021 $ 0.11 1,500,000 -
Schedule of Stock Options Granted	The following table summarizes information about stock options granted during the three months ended March 31, 2017 and 2016: March 31, 2018 March 31, 2017 Number of stock options Weighted Average Exercise Price Number of stock options Weighted Average Exercise Price Balance, beginning of period 9,625,000 $ 0.21 2,644,000 $ 0.49 Stock options granted 6,800,000 $ 0.12 700,000 $ 0.09 Stock options expired 72,000 $ 0.37 - - Stock options cancelled, forfeited - - - - Stock options exercised - - - - Balance, end of period 16,353,000 $ 0.17 3,344,000 $ 0.41 Exercisable stock options 10,167,666 $ 0.20 2,252,334 $ 0.45
Schedule of Outstanding Stock Options	Outstanding stock options as of March 31, 2018 are as follows: Range of Exercise Prices Weighted Average residual life span (in years) Outstanding Stock Options Weighted Average Exercise Price Exercisable Stock Options Weighted Average Exercise Price $ 0.075 to 0.09 3.91 2,981,000 $ 0.08 2,220,666 $ 0.08 $ 0.11 3.34 3,500,000 $ 0.11 2,625,000 $ 0.11 $ 0.12 4.93 6,800,000 $ 0.12 2,500,000 $ 0.12 $ 0.145 9.51 500,000 $ 0.145 500,000 $ 0.145 $ 0.33 to 0.38 0.17 72,000 $ 0.36 72,000 $ 0.36 $ 0.50 6.65 2,500,000 $ 0.50 2,250,000 $ 0.50 $ 0.075 to 0.50 4.79 16,353,000 $ 0.17 10,167,666 $ 0.20
Schedule of Stock Options, Expiry Date and Exercise Prices	Stock options outstanding at March 31, 2018, and 2017 have the following expiry date and exercise prices: Expiry Date Exercise Prices March 31, 2018 March 31, 2017 April 27, 2018 $ 0.38 36,000 36,000 July 9, 2018 $ 0.33 36,000 36,000 August 2, 2021 $ 0.11 3,500,000 - February 17, 2022 $ 0.075 760,333 760,333 February 17, 2022 $ 0.09 1,520,667 1,520,667 March 30, 2022 $ 0.09 700,000 700,000 March 5, 2023 $ 0.12 6,800,000 - November 20, 2024 $ 0.50 2,500,000 2,500,000 October 2, 2027 $ 0.145 500,000 - 16,353,000 5,553,000

Basis of Presentation and Sum29

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jan. 01, 2015
Cash equivalents
Cash on deposit in federally insured bank	381,494			$ 250,000
Allowance for doubtful accounts	12,501	12,501	$ 12,501
Amortization expense	425,429		$ 1,701,714
Impairment charges
Advertising expense	$ 39,008	$ 188,077
Weighted average number of common shares outstanding	37,125,286	35,141,560
Minimum [Member] | Trade Names and Customer Lists [Member]
Finite-lived intangible asset, useful life	3 years
Maximum [Member] | Trade Names and Customer Lists [Member]
Finite-lived intangible asset, useful life	7 years
Accounting Standards Update 2014-09 [Member]
Cumulative effect of accumulated deficit	$ 1,213,218

Basis of Presentation and Sum30

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Adoption of New Accounting Pronouncements (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Deferred net revenue			$ 1,213,218
Accumulated deficit on beginning	$ (35,554,994)
Net loss on end	(949,005)	$ (331,158)	(331,158)
Less: Preferred stock - Series C dividend	48,124	46,507
Accumulated deficit on end	(35,338,906)		(35,554,994)
Revenues	15,180,547	14,437,556
Total costs of goods sold	12,014,454	11,445,609
Gross profit	$ 3,166,093	2,991,947
Revenue, percentage	0.80%
Costs of goods sold, percentage	2.36%
Gross profit, percentage	(5.60%)
Accounting Standards Update 2014-09 [Member]
Accumulated deficit on beginning	$ (34,341,776)
Net loss on end	(949,005)
Less: Preferred stock - Series C dividend	(48,125)
Accumulated deficit on end	(35,338,906)		$ (34,341,776)
Topic 606 [Member]
Revenues	15,180,547
Total costs of goods sold	12,014,454
Gross profit	3,166,093
Topic 605 [Member]
Revenues	15,302,514
Total costs of goods sold	12,304,443
Gross profit	$ 2,998,071
Topic 606 Variance [Member]
Revenues		742,991
Total costs of goods sold		568,845
Gross profit		174,146
Topic 605 Variance [Member]
Revenues		864,958
Total costs of goods sold		858,834
Gross profit		$ 6,124

Basis of Presentation and Sum31

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Goodwill and Intangible Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accumulated amortization	$ (6,335,010)	$ (5,909,581)
Intangibles, net	17,359,154	17,784,583
Goodwill [Member]
Intangibles gross	10,114,164	10,114,164
Trade Names [Member]
Intangibles gross	4,390,000	4,390,000
Customer Relationships [Member]
Intangibles gross	$ 9,190,000	$ 9,190,000

Basis of Presentation and Sum32

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Amortized Expense (Details)	Mar. 31, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2,018	$ 1,254,170
2,019	1,471,714
2,020	1,471,714
2,021	1,405,792
2,022	786,000
Thereafter	855,600
Total	$ 7,244,990

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficit	$ 13,803,498
Accumulated deficit	$ 35,338,906	$ 35,554,994

Concentrations (Details Narrati

Concentrations (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Jan. 01, 2015
Cash on deposit in FDIC	$ 381,494		$ 250,000
Revenue [Member] | One Customer [Member]
Percentage of concentration risk	30.50%	15.70%
Accounts Receivable [Member] | One Customer [Member]
Percentage of concentration risk	20.50%	15.70%
Accounts Payable [Member] | One Vendor [Member]
Percentage of concentration risk	59.40%	70.10%
Accounts Payable [Member] | One Vendor [Member] | Minimum [Member]
Percentage of concentration risk	10.00%	10.00%

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable Net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Receivables [Abstract]
Trade Accounts Receivable	$ 9,430,964	$ 6,400,235
Less Allowance for doubtful accounts	(12,501)	(12,501)	$ (12,501)
Total Accounts Receivable (net)	$ 9,418,463	$ 6,387,734

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Equipment and clearing service	$ 2,031,138	$ 329,003
Raw Materials	31,697	31,697
Finished Goods	79,020	79,020
Total inventories	$ 2,141,855	$ 439,720

Fixed Assets (Details Narrative

Fixed Assets (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 11,969	$ 61,223

Fixed Assets - Schedule of Fixe

Fixed Assets - Schedule of Fixed Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Equipment	$ 2,914,760	$ 2,909,642
Furniture and Fixtures	316,853	316,853
Leasehold improvements	151,553	151,553
Accumulated depreciation	(3,297,215)	(3,285,245)
Fixed Assets, net	$ 85,951	$ 92,803

Other Liabilities - Schedule of

Other Liabilities - Schedule of Other Liabilities (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Unearned Incentive from credit Cards		$ 77,307
Key Man life Insurance liability	150,146	150,146
Dividend payable	336,392	289,687
Others	156,957	43,811
Other liabilities	583,753	560,951
Less Current Portion	(156,957)	(121,117)
Total long term other liabilities	$ 486,538	$ 439,833

Credit Facilities and Line of40

Credit Facilities and Line of Credit (Details Narrative) - USD ($)	Jul. 02, 2016	Mar. 31, 2018	Dec. 31, 2017
Line of credit, balance		$ 4,832,353	$ 3,667,417
Factoring and Security Agreement [Member] | Prime Rate [Member]
Percentage of average outstanding balance	2.00%
Factoring and Security Agreement [Member] | Action Capital Corporation [Member]
Percentage of reserve account	5.00%
Percentage of average outstanding balance	0.75%
Factoring and Security Agreement [Member] | Action Capital Corporation [Member] | Maximum [Member]
Debt instrument face amount	$ 5,000,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	Feb. 14, 2018	Nov. 15, 2017	Sep. 30, 2017	Mar. 31, 2017	Nov. 30, 2016	Jul. 18, 2016	Mar. 31, 2018	Dec. 31, 2017	Dec. 15, 2016	Nov. 21, 2014
Notes payable							$ 2,405,698	$ 3,559,319
Secured Promissory Note [Member]
Debt instruments periodic payment						$ 250,000
Debt instruments interest rate						12.00%
Debt instrument face amount						$ 12,492,137
Debt instrument due date						Dec. 31, 2016
Secured Promissory Note [Member] | Amendment Agreement [Member]
Debt instrument face amount									$ 300,000
Debt instrument due date					Mar. 31, 2017
Debt instrument, increase, accrued interest					$ 400,000
Secured Promissory Note [Member] | Second Amendment Agreement [Member]
Debt instrument face amount				$ 400,000
Debt instrument due date				Sep. 30, 2017
Secured Promissory Note [Member] | Third Amendment Agreement [Member]
Debt instrument face amount			$ 600,000
Debt instrument due date			Oct. 31, 2017
Secured Promissory Note [Member] | Fourth Amendment Agreement [Member]
Debt instrument face amount	$ 400,000	$ 600,000
Debt instrument due date	Mar. 31, 2018	Dec. 31, 2017
BCS Acquisition [Member]
Debt instruments periodic payment							$ 4,758
Debt instruments interest rate							1.89%			1.89%
BCS Acquisition [Member] | Debt [Member]
Notes payable							$ 130,294

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Total notes payable	$ 2,405,698	$ 3,559,319
Less: current portion	(2,275,404)	(3,429,025)
Long Term Notes Payable	130,294	130,294
Supplier Note Payable [Member]
Total notes payable	1,976,915	3,208,534
Insurance Note [Member]
Total notes payable	77,998
All Other [Member]
Total notes payable	$ 350,785	$ 350,785

Notes Payable - Schedule of Fut

Notes Payable - Schedule of Future Maturities of Note Payable (Details) - Notes Payable [Member]	Mar. 31, 2018USD ($)
2,018	$ 2,275,404
2,019	130,294
Total	$ 2,405,698

Subordinated Notes Payable (Det

Subordinated Notes Payable (Details Narrative)

Mar. 08, 2018USD ($)

Feb. 28, 2018USD ($)Number$ / sharesshares

Feb. 22, 2018USD ($)Number

Feb. 19, 2018USD ($)Number

Jun. 17, 2016USD ($)shares

Nov. 21, 2014$ / shares

Jan. 09, 2014

Jun. 30, 2016USD ($)

Oct. 31, 2015shares

Mar. 31, 2018USD ($)

Mar. 31, 2017USD ($)

Dec. 31, 2014USD ($)Number$ / sharesshares

Interest expense

$ 20,232

$ 160,790

Stock issued during the period

$ 200,000

Series A Preferred Stock [Member]

Debt instruments interest increase

6.00%

Percentage of redemption and cancelation

100.00%

Number of option issued | shares

3,400,000

Promissory Note Conversion Agreement [Member] | Noteholders [Member]

Forgiveness of debt

$ 75,000

Promissory Note Conversion Agreement [Member] | Noteholders [Member] | Series C Preferred Stock [Member]

Debt instrument conversion of shares amount

$ 1,800,000

Debt instrument conversion of shares | shares

1,800,000

Marin Settlement Agreement I [Member] | David Marin [Member]

Forgiveness of debt

$ 9,495,465

$ 9,495,465

Debt instrument face amount

11,000,000

Debt owed amount

$ 1,201,000

$ 1,201,000

Date of agreement

Feb. 28, 2018

Debt instrument description

Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $1,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million.

Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $2,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million.

Number of monthly installments | Number

60

60

Debt monthly payment

$ 20,000

$ 20,000

Debt default, amount

$ 11,000,000

Warrants term

3 years

3 years

Number of warrants to purchase common stock | shares

3,000,000

3,000,000

Exercise price of warrants | $ / shares

$ 0.20

Marin Settlement Agreement I [Member] | David Marin [Member] | Owed Amount [Member]

Debt owed amount

$ 10,696,465

$ 10,696,465

Exercise price of warrants | $ / shares

$ 0.20

Marin Settlement Agreement II [Member] | David Marin [Member]

Debt instrument conversion of shares amount

$ 111,065

Debt instrument conversion of shares | shares

85,000

Debt convertible price per share | $ / shares

$ 1

Debt instrument face amount

$ 100,000

Date of agreement

Feb. 28, 2018

Shares issued, price per share | $ / shares

$ 1

Marin Settlement Agreement II [Member] | David Marin [Member] | Series C Preferred Stock [Member]

Debt instrument conversion of shares amount

$ 111,065

Debt instrument conversion of shares | shares

85,000

Debt convertible price per share | $ / shares

$ 1

Shares issued, price per share | $ / shares

1

Debt instrument, convertible, stock price | $ / shares

$ 1.50

Debt instrument, convertible, consecutive trading days | Number

20

Preferred Stock, Dividend Rate, Percentage

6.00%

Value of note and accrued interest cancelled

$ 100,000

Settlement Agreement [Member] | Kurt Thomet [Member]

Date of agreement

Feb. 22, 2018

Debt instrument description

(i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $21,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million.

Number of monthly installments | Number

60

Debt monthly payment

$ 12,500

Aggregate indebtness

5,437,136

Number of restricted common stock shares value

500,000

Settlement Agreement [Member] | Kurt Thomet [Member] | Series C Preferred Stock [Member]

Stock issued during the period

1,000,000

Settlement Agreement [Member] | George Zicman [Member]

Aggregate indebtness

$ 1,304,199

Settlement Agreement [Member] | Goerge Zicman [Member]

Date of agreement

Feb. 19, 2018

Debt instrument description

(i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $2,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million.

Number of monthly installments | Number

60

Debt monthly payment

$ 3,000

Number of restricted common stock shares value

100,000

Stock issued during the period

100,000

Settlement Agreement [Member] | Goerge Zicman [Member] | Series C Preferred Stock [Member]

Stock issued during the period

600,000

Quest Marketing, Inc [Member] | Promissory Note Conversion Agreement [Member] | Noteholders [Member] | Series C Preferred Stock [Member]

Debt instrument conversion of shares amount

$ 684,000

Debt instrument conversion of shares | shares

684,000

Debt discount

$ 171,000

Scansource, Inc [Member] | Marin Settlement Agreement I [Member] | David Marin [Member]

Debt default, amount

2,800,000

2,800,000

Reduction in debt default amount

$ 2,000,000

$ 2,000,000

Scansource, Inc [Member] | Settlement Agreement [Member] | Kurt Thomet [Member]

Debt default, amount

21,800,000

Reduction in debt default amount

$ 2,000,000

Scansource, Inc [Member] | Settlement Agreement [Member] | Goerge Zicman [Member]

Debt default, amount

2,800,000

Reduction in debt default amount

$ 2,000,000

Quest Marketing, Inc [Member]

Debt instruments interest rate

1.89%

Debt instruments interest increase

6.00%

Debt due date description

2,018

BCS Acquisition [Member]

Debt instruments interest rate

1.89%

1.89%

Debt due date description

2,018

Debt convertible price per share | $ / shares

$ 2

Percentage of outstanding shares

5.00%

Debt monthly payment

$ 4,758

Subordinated Notes Payable - Sc

Subordinated Notes Payable - Schedule of Subordinated Notes Payable (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Total notes payable	$ 3,329,400	$ 3,329,400
Note Payable Quest Acquisition Restructure [Member]
Total notes payable	930,000	930,000
Note Payable BCS Acquisition Restructure [Member]
Total notes payable	1,200,000	1,200,000
Quest Preferred Stock Note Payable [Member]
Total notes payable	$ 1,199,400	$ 1,199,400

Subordinated Notes Payable - 46

Subordinated Notes Payable - Schedule of Future Maturities of Subordinated Notes Payable (Details) - Subordinated Notes Payable [Member]	Mar. 31, 2018USD ($)
2,018	$ 106,500
2,019	894,000
2,020	894,000
2,021	894,000
Thereafter	1,213,500
Total	$ 4,002,000

Stockholders' Deficit (Details

Stockholders' Deficit (Details Narrative) - USD ($)	Mar. 08, 2018	Dec. 30, 2017	Aug. 02, 2017	Jun. 30, 2017	Apr. 30, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 07, 2018	Dec. 31, 2017	Nov. 17, 2014
Dividend paid						$ 336,392			$ 289,687
Stock issued during the period, shares	500,000
Stock issued during the period	$ 200,000
Exercise of stock option shares granted						6,800,000	700,000
Common stock, par value						$ 0.001			$ 0.001
Common stock, shares outstanding						39,673,631			36,828,371
Stock compensation expense						$ 681,475	$ 26,756
Warrants and Stock Options [Member]
Common stock, par value	$ 0.001
Maximum number of common shares reserved for issuance	10,000,000
Chief Executive Officer [Member]
Exercise of stock option shares granted						2,000,000
Board of Directors [Member]
Stock issued during the period, shares	1,000,000
Exercise of stock option shares granted	3,200,000
Benjamin Kemper [Member]
Stock issued during the period, shares	500,000
Three Directors [Member]
Exercise of stock option shares granted						1,200,000
Legal Counsel [Member]
Exercise of stock option shares granted						200,000
Settlement Agreement [Member]
Dividend rate per annum		$ 0.06
Debt settlement effective shares issued		1,685,000
Dividend paid
Employment Agreement [Member] | Chief Executive Officer [Member]
Stock issued during the period, shares					640,000
Contractor Agreement [Member] | Chief Executive Officer [Member]
Stock issued during the period, shares					70,000
Consulting Agreement [Member] | Carlos J. Nissensohn [Member]
Number of shares issued for employees, shares			600,000
2018 Equity Incentive Plan [Member]
Price per share								$ 0.12
2018 Equity Incentive Plan [Member] | Maximum [Member]
Exercise of stock option shares granted	7,000,000
Board of Directors [Member]
Preferred stock voting rights						The board of directors had previously set the voting rights for the preferred stock at 1 share of preferred to 250 common shares.
Stock issued during the period, shares				87,500
Board of Directors [Member] | Share Purchase Option Plan [Member]
Exercise of stock option shares granted						20,000,000
Maximum number of common shares reserved for issuance										20,000,000
Common stock shares subscribed						16,353,000
Independent Board [Member]
Restricted common shares				100,000
Two Parties [Member] | Debt Reduction Agreement [Member]
Stock issued during the period, shares		600,000
Stock issued during the period		$ 59,400
Shai Lustgarten [Member]
Stock issued during the period, shares	1,000,000
Exercise of stock option shares granted	2,000,000
Andrew J. Macmillan [Member]
Exercise of stock option shares granted	400,000
Yaron Shalem [Member]
Exercise of stock option shares granted	400,000
Niv Nissenson [Member]
Exercise of stock option shares granted	400,000
Series A Preferred Stock [Member]
Preferred stock shares designated						1,000,000			1,000,000
Preferred stock shares outstanding						0			0
Series B Preferred Stock [Member]
Preferred stock shares designated						1			1
Preferred stock shares outstanding						0			0
Series C Preferred Stock [Member]
Preferred stock shares designated						15,000,000			15,000,000
Preferred stock shares outstanding						3,143,530			3,143,530
Dividend rate per annum						$ 0.06			$ 0.06

Stockholders' Deficit - Schedul

Stockholders' Deficit - Schedule of Stock Options Warrants (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Number of warrants balance, beginning of period	5,905,000	1,405,000
Number of warrants, granted
Number of warrants, expired	(300,000)
Number of warrants, cancelled, forfeited
Number of warrants, exercised
Number of warrants, balance end of period	5,605,000	1,405,000
Number of warrants, exercisable	4,885,000	1,405,000
Weighted Average Exercise Price balance, beginning of period	$ 0.21	$ 0.52
Weighted Average Exercise Price, granted
Weighted Average Exercise Price, expired	1
Weighted Average Exercise Price, cancelled, forfeited
Weighted Average Exercise Price, exercised
Weighted Average Exercise Price balance, end of period	0.21	0.52
Weighted Average Exercise Price, exercisable	$ 0.23	$ 0.52

Stockholders' Deficit - Sched49

Stockholders' Deficit - Schedule of Outstanding Warrants (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Range of Exercise Prices, Lower Range Limit	$ 0.11
Range of Exercise Prices, Upper Range Limit	$ 1
Weighted Average residual life span (in years)	2 years 4 months 17 days
Outstanding Warrants | shares	5,605,000
Weighted Average Exercise Price	$ 0.21
Exercisable Warrants | shares	4,855,000
Weighted Average Exercise Price	$ 0.23
Exercise Price Range 1 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.20
Weighted Average residual life span (in years)	2 years 9 months
Outstanding Warrants | shares	3,000,000
Weighted Average Exercise Price	$ 0.20
Exercisable Warrants | shares	3,000,000
Weighted Average Exercise Price	$ 0.20
Exercise Price Range 2 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.25
Weighted Average residual life span (in years)	4 days
Outstanding Warrants | shares	205,000
Weighted Average Exercise Price	$ 0.25
Exercisable Warrants | shares	20,500
Weighted Average Exercise Price	$ 0.25
Exercise Price Range 3 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.11
Weighted Average residual life span (in years)	3 years 4 months 2 days
Outstanding Warrants | shares	1,500,000
Weighted Average Exercise Price	$ 0.11
Exercisable Warrants | shares	750,000
Weighted Average Exercise Price	$ 0.11
Exercise Price Range 4 [Member]
Range of Exercise Prices, Upper Range Limit	$ 1
Weighted Average residual life span (in years)	2 months 30 days
Outstanding Warrants | shares	900,000
Weighted Average Exercise Price	$ 1
Exercisable Warrants | shares	900,000
Weighted Average Exercise Price	$ 1

Stockholders' Deficit - Sched50

Stockholders' Deficit - Schedule of Warrants Outstanding, Expiry Date and Exercise Prices (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Warrant outstanding	5,905,000	1,405,000
March 22, 2018 [Member]
Warrant expiry Date	Mar. 22, 2018	Mar. 22, 2018
Warrant exercise Prices	$ 1	$ 1
Warrant outstanding		300,000
April 1, 2018 [Member]
Warrant expiry Date	Apr. 1, 2018	Apr. 1, 2018
Warrant exercise Prices	$ 0.25	$ 0.25
Warrant outstanding	900,000	900,000
April 30, 2018 [Member]
Warrant expiry Date	Apr. 30, 2018	Apr. 30, 2018
Warrant exercise Prices	$ 0.25	$ 0.25
Warrant outstanding	5,000	5,000
July 1, 2018 [Member]
Warrant expiry Date	Jul. 1, 2018	Jul. 1, 2018
Warrant exercise Prices	$ 1	$ 1
Warrant outstanding	200,000	200,000
December 30, 2020 [Member]
Warrant expiry Date	Dec. 30, 2020	Dec. 30, 2020
Warrant exercise Prices	$ 0.20	$ 0.20
Warrant outstanding	3,000,000
August 2, 2021 [Member]
Warrant expiry Date	Aug. 2, 2021	Aug. 2, 2021
Warrant exercise Prices	$ 0.11	$ 0.11
Warrant outstanding	1,500,000

Stockholders' Deficit - Sched51

Stockholders' Deficit - Schedule of Stock Options Granted (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Equity [Abstract]
Number of stock options balance, beginning of period	9,625,000	2,644,000
Number of stock options, granted	6,800,000	700,000
Number of stock options, expired	72,000
Number of stock options, cancelled, forfeited
Number of stock options, exercised
Number of stock options balance, end of period	16,353,000	3,344,000
Number of stock options, exercisable	10,167,666	2,252,334
Weighted average exercise price balance, beginning of period	$ 0.21	$ 0.49
Weighted average exercise price, stock options granted	0.12	0.09
Weighted average exercise price, stock options expired	0.37
Weighted average exercise price, stock options cancelled, forfeited
Weighted average exercise price, stock options exercised
Weighted average exercise price balance, end of period	0.17	0.41
Weighted average exercise price, exercisable	$ 0.20	$ 0.45

Stockholders' Deficit - Sched52

Stockholders' Deficit - Schedule of Outstanding Stock Options (Details) - Stock Options [Member]	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Range of Exercise Prices, Lower Range Limit	$ 0.075
Range of Exercise Prices, Upper Range Limit	$ 0.50
Weighted Average residual life span (in years)	4 years 9 months 14 days
Outstanding Stock Options | shares	16,353,000
Weighted Average Exercise Price	$ 0.17
Exercisable Stock Options | shares	10,167,666
Weighted Average Exercise Price	$ 0.20
Exercise Price Range 1 [Member]
Range of Exercise Prices, Lower Range Limit	0.075
Range of Exercise Prices, Upper Range Limit	$ 0.09
Weighted Average residual life span (in years)	3 years 10 months 28 days
Outstanding Stock Options | shares	2,981,000
Weighted Average Exercise Price	$ 0.08
Exercisable Stock Options | shares	2,220,666
Weighted Average Exercise Price	$ 0.08
Exercise Price Range 2 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.11
Weighted Average residual life span (in years)	3 years 4 months 2 days
Outstanding Stock Options | shares	3,500,000
Weighted Average Exercise Price	$ 0.11
Exercisable Stock Options | shares	2,625,000
Weighted Average Exercise Price	$ 0.11
Exercise Price Range 3 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.12
Weighted Average residual life span (in years)	4 years 11 months 4 days
Outstanding Stock Options | shares	6,800,000
Weighted Average Exercise Price	$ 0.12
Exercisable Stock Options | shares	2,500,000
Weighted Average Exercise Price	$ 0.12
Exercise Price Range 4 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.145
Weighted Average residual life span (in years)	9 years 6 months 3 days
Outstanding Stock Options | shares	500,000
Weighted Average Exercise Price	$ 0.145
Exercisable Stock Options | shares	500,000
Weighted Average Exercise Price	$ 0.145
Exercise Price Range 5 [Member]
Range of Exercise Prices, Lower Range Limit	0.33
Range of Exercise Prices, Upper Range Limit	$ 0.38
Weighted Average residual life span (in years)	2 months 1 day
Outstanding Stock Options | shares	72,000
Weighted Average Exercise Price	$ 0.36
Exercisable Stock Options | shares	72,000
Weighted Average Exercise Price	$ 0.36
Exercise Price Range 6 [Member]
Range of Exercise Prices, Upper Range Limit	$ 0.50
Weighted Average residual life span (in years)	6 years 7 months 24 days
Outstanding Stock Options | shares	2,500,000
Weighted Average Exercise Price	$ 0.50
Exercisable Stock Options | shares	2,250,000
Weighted Average Exercise Price	$ 0.50

Stockholders' Deficit - Sched53

Stockholders' Deficit - Schedule of Stock Options, Expiry Date and Exercise Prices (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Stock option exercise prices	$ 0.17	$ 0.41	$ 0.21	$ 0.49
Stock option outstanding	16,353,000	3,344,000	9,625,000	2,644,000
Stock Options [Member]
Stock option outstanding	16,353,000	5,553,000
April 27, 2018 [Member]
Stock option expiry date	Apr. 27, 2018	Apr. 27, 2018
Stock option exercise prices	$ 0.38	$ 0.38
Stock option outstanding	36,000	36,000
July 9, 2018 [Member]
Stock option expiry date	Jul. 9, 2018	Jul. 9, 2018
Stock option exercise prices	$ 0.33	$ 0.33
Stock option outstanding	36,000	36,000
August 2, 2021 [Member]
Stock option expiry date	Aug. 2, 2021	Aug. 2, 2021
Stock option exercise prices	$ 0.11	$ 0.11
Stock option outstanding	3,500,000
February 17, 2022 [Member]
Stock option expiry date	Feb. 17, 2022	Feb. 17, 2022
Stock option exercise prices	$ 0.075	$ 0.075
Stock option outstanding	760,333	760,333
February 17, 2022 One [Member]
Stock option expiry date	Feb. 17, 2022
Stock option exercise prices	$ 0.09	$ 0.09
Stock option outstanding	1,520,667	1,520,667
March 30, 2022 [Member]
Stock option expiry date	Mar. 30, 2022	Mar. 30, 2022
Stock option exercise prices	$ 0.09	$ 0.09
Stock option outstanding	700,000	700,000
March 5, 2023 [Member]
Stock option expiry date	Mar. 5, 2023	Mar. 5, 2022
Stock option exercise prices	$ 0.12	$ 0.12
Stock option outstanding	6,800,000
November 20, 2024 [Member]
Stock option expiry date	Nov. 20, 2024	Nov. 20, 2024
Stock option exercise prices	$ 0.50	$ 0.50
Stock option outstanding	2,500,000	2,500,000
October 2, 2027 [Member]
Stock option expiry date	Oct. 2, 2027	Oct. 2, 2027
Stock option exercise prices	$ 0.145	$ 0.145
Stock option outstanding	500,000
February 17, 2022 One [Member]
Stock option expiry date		Feb. 17, 2022

Litigation (Details Narrative)

Litigation (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Maximum [Member]
Percentage of beneficially in common stock interest adverse	5.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	Mar. 08, 2018USD ($)	Feb. 28, 2018USD ($)Number$ / sharesshares	Feb. 22, 2018USD ($)Number	Feb. 19, 2018USD ($)Number	Aug. 02, 2017USD ($)$ / sharesshares	Mar. 31, 2018USD ($)	Dec. 31, 2014USD ($)Number$ / sharesshares
Stock issued during the period	$ 200,000
Minimum [Member]
Ownership percentage						10.00%
Consulting Agreement [Member] | Carlos J. Nissensohn [Member]
Debt monthly payment					$ 15,000
One time signatory fee of restricted stock | shares					600,000
Number of warrant shares | shares					1,500,000
Warrant exercise price per share | $ / shares					$ 0.11
Warrant term					4 years
Equity component description					In case the Company procures debt financing during the term of this agreement, without any equity component, Mr. Nissensohn shall be entitled to 3% of the gross funds raised, however if the Company is required to pay a success fee to another external entity, then Mr. Nissensohn shall be entitled to only 2% of the gross funds raised
Proceeds from equity financing					$ 3,000,000
Share capital percentage					3.00%
Warrant exercise price percentage					100.00%
Payment of financing					$ 50,000
Total transaction price percentage					3.00%
Marin Settlement Agreement I [Member] | David Marin [Member]
Debt monthly payment		$ 20,000					$ 20,000
Warrant exercise price per share | $ / shares							$ 0.20
Debt default, amount		11,000,000
Debt owed amount		1,201,000					$ 1,201,000
Forgiveness of debt		$ 9,495,465					$ 9,495,465
Debt instrument description		Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $1,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million.					Section 3.1 of the original note was amended to provide that the Company shall pay the Marins 60 monthly payments of $20,000 each commencing the earlier of (i) October 26, 2018 and (ii) the date that the Company’s obligation to Scansource, Inc., currently in the amount of $2,800,000 is satisfied and all amounts currently in default under the credit agreement with Scansource (currently approximately $ 6.0 Million) is reduced to $2.0 million.
Number of monthly installments | Number		60					60
Warrants term		3 years					3 years
Number of warrants to purchase common stock | shares		3,000,000					3,000,000
Debt instrument face amount							$ 11,000,000
Marin Settlement Agreement I [Member] | David Marin [Member] | Owed Amount [Member]
Warrant exercise price per share | $ / shares		$ 0.20
Debt owed amount		$ 10,696,465					10,696,465
Marin Settlement Agreement II [Member] | David Marin [Member]
Debt instrument face amount		100,000
Debt instrument conversion of shares amount		$ 111,065
Debt instrument conversion of shares | shares		85,000
Debt convertible price per share | $ / shares		$ 1
Shares issued, price per share | $ / shares		$ 1
Marin Settlement Agreement II [Member] | David Marin [Member] | Series C Preferred Stock [Member]
Debt instrument conversion of shares amount		$ 111,065
Debt instrument conversion of shares | shares		85,000
Debt convertible price per share | $ / shares		$ 1
Shares issued, price per share | $ / shares		1
Debt instrument, convertible, stock price | $ / shares		$ 1.50
Debt instrument, convertible, consecutive trading days | Number		20
Preferred Stock, Dividend Rate, Percentage		6.00%
Value of note and accrued interest cancelled		$ 100,000
Settlement Agreement [Member] | Kurt Thomet [Member]
Debt monthly payment			$ 12,500
Debt instrument description			(i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $21,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million.
Number of monthly installments | Number			60
Aggregate indebtness			$ 5,437,136
Number of restricted common stock shares value			500,000
Settlement Agreement [Member] | Kurt Thomet [Member] | Series C Preferred Stock [Member]
Stock issued during the period			1,000,000
Settlement Agreement [Member] | George Zicman [Member]
Aggregate indebtness				$ 1,304,199
Settlement Agreement [Member] | Goerge Zicman [Member]
Debt monthly payment				$ 3,000
Debt instrument description				(i) October 26, 2018 or (ii) the date when the Company’s obligation under its promissory note with Scansource, Inc. currently in the amount of $2,800,000 is satisfied and all amounts currently due under the credit agreement with Scansource (currently approximately $6.0 million) is reduced to $2.0 million.
Number of monthly installments | Number				60
Number of restricted common stock shares value				$ 100,000
Stock issued during the period				100,000
Settlement Agreement [Member] | Goerge Zicman [Member] | Series C Preferred Stock [Member]
Stock issued during the period				600,000
Bar Code Specialties Inc. [Member]
Rent expense, per month						$ 9,000
Lease termination date						Apr. 30, 2018
Scansource, Inc [Member] | Marin Settlement Agreement I [Member] | David Marin [Member]
Debt default, amount		2,800,000					2,800,000
Reduction in debt default amount		$ 2,000,000					$ 2,000,000
Scansource, Inc [Member] | Settlement Agreement [Member] | Kurt Thomet [Member]
Debt default, amount			21,800,000
Reduction in debt default amount			$ 2,000,000
Scansource, Inc [Member] | Settlement Agreement [Member] | Goerge Zicman [Member]
Debt default, amount				2,800,000
Reduction in debt default amount				$ 2,000,000