Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 25, 2022 | Jun. 30, 2021 | |
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | Financials restated | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-41117 | ||
Entity Registrant Name | MOBIQUITY TECHNOLOGIES, INC. | ||
Entity Central Index Key | 0001084267 | ||
Entity Tax Identification Number | 11-3427886 | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Address, Address Line One | 35 Torrington Lane | ||
Entity Address, City or Town | Shoreham | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11786 | ||
City Area Code | (516) | ||
Local Phone Number | 246-9422 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 22,629,950 | ||
Entity Common Stock, Shares Outstanding | 6,560,751 | ||
Auditor Name | BF Borgers CPA PC | ||
Auditor Firm ID | 5041 | ||
Auditor Location | Lakewood, CO | ||
Common Stock, $.001 par value [Member] | |||
Title of 12(b) Security | Common Stock, $.001 par value | ||
Trading Symbol | MOBQ | ||
Security Exchange Name | NASDAQ | ||
Common Stock Purchase Warrants [Member] | |||
Title of 12(b) Security | Common Stock Purchase Warrants | ||
Trading Symbol | MOBQW | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Re
Consolidated Balance Sheets (Restated) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 5,385,245 | $ 602,182 |
Accounts receivable, net | 388,112 | 1,698,719 |
Prepaid expenses and other current assets | 11,700 | 46,396 |
Total Current Assets | 5,785,057 | 2,347,297 |
Property and equipment (net of accumulated depreciation of $20,200 and $12,635, respectively) | 20,335 | 21,428 |
Goodwill | 1,352,865 | 1,352,865 |
Intangible assets (net of accumulated amortization of $4,156,657 and $3,355,922, respectively) | 1,247,019 | 5,647,754 |
Other assets | ||
Security deposits | 0 | 9,000 |
Investment in corporate stock | 0 | 91 |
Total Assets | 8,405,276 | 9,378,435 |
Current Liabilities | ||
Accounts payable and accrued expenses | 2,367,600 | 3,140,467 |
Notes payable | 656,504 | 901,283 |
Total Current Liabilities | 3,024,104 | 4,041,750 |
Long term portion convertible notes, net | 2,462,500 | 2,450,000 |
Total Liabilities | 5,486,604 | 6,491,750 |
Stockholders' Deficit | ||
Common stock: 100,000,000 authorized; $0.0001 par value 6,460,751 and 2,803,685 shares issued and outstanding at December 31, 2021 and December 31, 2020 | 652 | 282 |
Treasury stock $0.0001 par value 37,500 and 37,500 shares outstanding at December 31, 2021 and December 31, 2020 | (1,350,000) | (1,350,000) |
Additional paid in capital | 201,284,007 | 182,529,005 |
Accumulated deficit | (202,444,894) | (184,111,511) |
Total Stockholders' Equity | 2,918,672 | 2,886,685 |
Total Liabilities and Stockholders' Equity | 8,405,276 | 9,378,435 |
AAA Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred Stock, Value, Issued | 493,869 | 868,869 |
Preferred stock Series C [Member] | ||
Stockholders' Deficit | ||
Preferred Stock, Value, Issued | 0 | 15,000 |
Preferred Stock Series E [Member] | ||
Stockholders' Deficit | ||
Preferred Stock, Value, Issued | $ 4,935,040 | $ 4,935,040 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Restated) (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated depreciation, property and equipment | $ 20,200 | $ 12,635 |
Accumulated amortization, intangible assets | $ 4,156,657 | $ 3,355,922 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock shares issued | 6,460,751 | 2,803,685 |
Common stock outstanding | 6,460,751 | 2,803,685 |
Treasury Stock par value | $ 0.0001 | $ 0.0001 |
Treasury Stock shares outstanding | 37,500 | 37,500 |
AAA Preferred Stock [Member] | ||
Preferred Stock shares authorized | 4,930,000 | 5,000,000 |
Preferred Stock par value | $ 0.0001 | $ 0.0001 |
Preferred Stock shares issued | 31,413 | 56,413 |
Preferred stock shares outstanding | 31,413 | 56,413 |
Preferred stock Series C [Member] | ||
Preferred Stock shares authorized | 1,500 | 1,500 |
Preferred Stock par value | $ 0.0001 | $ 0.0001 |
Preferred Stock shares issued | 0 | 1,500 |
Preferred stock shares outstanding | 0 | 1,500 |
Preferred Stock Series E [Member] | ||
Preferred Stock shares authorized | 70,000 | 70,000 |
Preferred Stock par value | $ 80 | $ 80 |
Preferred Stock shares issued | 61,688 | 61,688 |
Preferred stock shares outstanding | 61,688 | 61,688 |
Consolidated Statements of Oper
Consolidated Statements of Operations of Comprehensive Loss (Restated) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 2,672,615 | $ 6,184,010 |
Cost of Revenues | 1,954,383 | 4,360,645 |
Gross Profit | 718,232 | 1,823,365 |
General and administrative expenses | 13,607,759 | 8,850,929 |
Loss from operations | (12,889,527) | (7,027,564) |
Other Income (Expenses) | ||
Impairment expense | (3,600,000) | (4,000,000) |
Interest Expense | (1,417,268) | (715,262) |
Amortization of debt discount/issue costs | (692,430) | 0 |
Forgiveness of SBA – PPP loan | 265,842 | 0 |
Unrealized gain (loss) on investments | 0 | (3,009) |
Total Other Income (Expense) | (5,443,856) | (4,718,271) |
Net Loss | $ (18,333,383) | $ (11,745,835) |
Consolidated Statements of Op_2
Consolidated Statements of Operations of Comprehensive Loss (Restated) (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Earnings Per Share, Basic | $ (5.47) | $ (4.63) |
Earnings Per Share, Diluted | $ (5.47) | $ (4.63) |
Weighted Average Number of Shares Outstanding, Basic | 3,351,335 | 2,537,811 |
Weighted Average Number of Shares Outstanding, Diluted | 3,351,335 | 2,537,811 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Restated) - USD ($) | Series A A A Preferred Stock [Member] | Mezzanine Preferred Stock [Member] | Series C Preferred Stocks [Member] | Series E Preferred Stocks [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balance, at January 1, 2020 (as restated) at Dec. 31, 2019 | $ 714,869 | $ 15,000 | $ 5,250,000 | $ 234 | $ 178,656,678 | $ (1,350,000) | $ (172,365,676) | $ 10,921,105 | |
Beginning balance, shares at Dec. 31, 2019 | 46,413 | 1,500 | 65,625 | 2,335,792 | 37,500 | ||||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2019 | $ 714,869 | $ 15,000 | $ 5,250,000 | $ 234 | 178,656,678 | $ (1,350,000) | (172,365,676) | 10,921,105 | |
Beginning balance, shares at Dec. 31, 2019 | 46,413 | 1,500 | 65,625 | 2,335,792 | 37,500 | ||||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2019 | $ 714,869 | $ 15,000 | $ 5,250,000 | $ 234 | 178,656,678 | $ (1,350,000) | (172,365,676) | 10,921,105 | |
Beginning balance, shares at Dec. 31, 2019 | 46,413 | 1,500 | 65,625 | 2,335,792 | 37,500 | ||||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2019 | $ 714,869 | $ 15,000 | $ 5,250,000 | $ 234 | 178,656,678 | $ (1,350,000) | (172,365,676) | 10,921,105 | |
Beginning balance, shares at Dec. 31, 2019 | 46,413 | 1,500 | 65,625 | 2,335,792 | 37,500 | ||||
Common stock issued for services | $ 3 | 547,448 | 547,451 | ||||||
Common stock issued for services, shares | 38,125 | ||||||||
Common stock issued for note conversion | 30,794 | 30,794 | |||||||
Common stock issued for note conversion, shares | 1,919 | ||||||||
Common stock issued for cash | $ 40 | 1,477,000 | 1,477,000 | ||||||
Common stock issued for cash, shares | 340,786 | ||||||||
Preferred stock series E | $ 154,000 | $ (314,960) | $ 1 | 160,959 | |||||
Preferred stock series E, shares | 10,000 | (3,937) | 9,843 | ||||||
Warrant conversions | $ 4 | 662,754 | 662,758 | ||||||
Warrant conversions, shares | 77,220 | ||||||||
Stock based compensation | 993,512 | 993,512 | |||||||
Net Loss | (11,745,835) | (11,745,835) | |||||||
Balance, at December 31, 2020 (as restated) at Dec. 31, 2020 | $ 868,869 | $ 868,869 | $ 15,000 | $ 4,935,040 | $ 282 | 182,529,005 | $ (1,350,000) | (184,111,511) | 2,886,685 |
Ending balance, shares at Dec. 31, 2020 | 56,413 | 56,413 | 1,500 | 61,688 | 2,803,685 | 37,500 | |||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2020 | $ 868,869 | $ 868,869 | $ 15,000 | $ 4,935,040 | $ 282 | 182,529,005 | $ (1,350,000) | (184,111,511) | 2,886,685 |
Beginning balance, shares at Dec. 31, 2020 | 56,413 | 56,413 | 1,500 | 61,688 | 2,803,685 | 37,500 | |||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2020 | $ 868,869 | $ 868,869 | $ 15,000 | $ 4,935,040 | $ 282 | 182,529,005 | $ (1,350,000) | (184,111,511) | 2,886,685 |
Beginning balance, shares at Dec. 31, 2020 | 56,413 | 56,413 | 1,500 | 61,688 | 2,803,685 | 37,500 | |||
Balance, at January 1, 2020 (as restated) at Dec. 31, 2020 | $ 868,869 | $ 868,869 | $ 15,000 | $ 4,935,040 | $ 282 | 182,529,005 | $ (1,350,000) | (184,111,511) | 2,886,685 |
Beginning balance, shares at Dec. 31, 2020 | 56,413 | 56,413 | 1,500 | 61,688 | 2,803,685 | 37,500 | |||
Common stock issued for services | $ 25 | 1,158,001 | 1,158,026 | ||||||
Common stock issued for services, shares | 265,000 | ||||||||
Stock issued for cash and warrants - net of offering costs of $974,000 (as restated) | $ 264 | 10,203,933 | 10,204,197 | ||||||
Stock issued for cash and warrants net of offering costs, shares | 2,631,764 | ||||||||
Stock based compensation | 4,635,224 | 4,635,224 | |||||||
Conversion of debt | 2,004,432 | ||||||||
Conversion of convertible debt to common stock | $ 24 | 1,347,134 | |||||||
Conversion of convertible debt to common stock, shares | 236,768 | ||||||||
Stock issued with debt recorded as a debt discount | $ 14 | 700,567 | 700,581 | ||||||
Stock issued with debt recorded as a debt discount, shares | 92,900 | ||||||||
Warrants issued for interest expense (as restated) | 320,188 | 320,188 | |||||||
Exercise of warrants for common stock (as restated) | $ 4 | (4) | |||||||
Exercise of warrants for common stock, shares | 49,384 | ||||||||
Conversion of Series AAA, preferred stock | $ (375,000) | $ 1 | 374,999 | ||||||
Conversion of Series AAA, preferred stock, shares | (25,000) | 25,000 | 6,250 | ||||||
Conversion of Series C, preferred stock | $ (15,000) | $ 38 | 14,962 | ||||||
Conversion of Series C, preferred stock, shares | (1,500) | 375,000 | |||||||
Net Loss | (18,333,383) | (18,333,383) | |||||||
Balance, at December 31, 2020 (as restated) at Dec. 31, 2021 | $ 493,869 | $ 4,935,040 | $ 652 | 201,284,007 | $ (1,350,000) | (202,444,894) | 2,918,672 | ||
Ending balance, shares at Dec. 31, 2021 | 31,413 | 61,688 | 6,460,751 | 37,500 | |||||
Balance, at December 31, 2020 (as restated) at Dec. 31, 2021 | $ 493,869 | $ 4,935,040 | $ 652 | $ 201,284,007 | $ (1,350,000) | $ (202,444,894) | $ 2,918,672 | ||
Ending balance, shares at Dec. 31, 2021 | 31,413 | 61,688 | 6,460,751 | 37,500 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Restated) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Net loss | $ (18,333,383) | $ (11,745,835) |
Adjustments to reconcile net loss to net cash used in operations | ||
Bad debt expense | 434,390 | 306,000 |
Depreciation | 7,565 | 6,271 |
Amortization of intangibles | 800,735 | 1,800,736 |
Amortization of debt discount/issue costs | 780,081 | 0 |
Recognition of share based compensation | 4,635,224 | 993,512 |
Stock issued for services | 1,158,026 | 547,451 |
Warrants issued for interest expense | 320,188 | 0 |
Impairment of intangibles | 3,600,000 | 4,000,000 |
Gain on forgiveness of PPP loan | (265,842) | 0 |
Change in fair value of marketable securities | 0 | 3,009 |
Changes in operating assets and liabilities | ||
Accounts receivable | 876,217 | 1,606,659 |
Prepaids and other | 43,788 | (26,196) |
Accounts payable and accrued expenses | (774,311) | (778,371) |
Net cash used in operating activities | (6,717,324) | (3,286,764) |
Investing activities | ||
Purchase of property and equipment | (6,472) | (6,599) |
Net cash used in investing activities | (6,472) | (6,599) |
Financing activities | ||
Proceeds from issuance of notes payable - net | 4,143,000 | 1,005,842 |
Repayments on notes payable | (2,840,337) | (490,115) |
Proceeds from exercise of common stock warrants | 0 | 662,754 |
Proceeds from stock and warrants issued for cash - net of offering costs | 10,204,197 | 1,477,000 |
Net cash provided by financing activities | 11,506,860 | 2,655,481 |
Net increase (decrease) in cash | 4,783,063 | (637,882) |
Cash - beginning of year | 602,182 | 1,240,064 |
Cash - end of year | 5,385,245 | 602,182 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 424,616 | 442,326 |
Cash paid for income tax | 2,065 | 7,272 |
Supplemental disclosure of non-cash investing and financing activities | ||
Conversion of Series AAA preferred stock to common stock | 375,000 | 0 |
Conversion of Series C preferred stock into common stock | 15,000 | 0 |
Conversion of Series E preferred stock into common stock | 314,960 | |
Exercise of warrants for common stock | 4 | 0 |
Conversion of convertible debt into common stock | $ 2,004,432 | $ 30,694 |
ORGANIZATION AND GOING CONCERN
ORGANIZATION AND GOING CONCERN | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND GOING CONCERN | NOTE 1 : ORGANIZATION AND GOING CONCERN We operate our business through two wholly owned subsidiaries, Advangelists, LLC and Mobiquity Networks, Inc. Our corporate structure is as follows: Subsidiaries Advangelists, LLC Advangelists LLC operates our ATOS platform business. We originally acquired a 48% membership interest and Glen Eagles Acquisition LP acquired a 52% membership interest in Advangelists in a merger transaction in December 2018 for consideration valued at $20 Million. At the time Glen Eagles was a shareholder of the Company, owning 412,500 shares of our common stock. The Company became, and remains, the sole manager of Advangelists following the merger with sole management power. In consideration for the merger: · Mobiquity issued warrants for 269,384 shares of common stock at an exercise price of $56 per share to the pre-merger Advangelists’ members, and, in February 2019, upon the attainment of the vesting threshold of Advangelists’ combined revenues for the months of December 2018 and January 2019 being at least $250,000, the Company transferred 9,209,722 shares of Gopher Protocol, Inc. common stock to the pre-merger Advangelists members. The Mobiquity warrants were valued at a total of $3,844,444, and the Gopher shares of common stock were valued at a total of $6,155,556. · Glen Eagles paid the pre-merger Advangelists members $10 million. $500,000 was paid at closing in cash (which the Company advanced on behalf of Glen Eagles without any agreement regarding repayment of the advance), and $9,500,000 was paid by Glen Eagles’ promissory note to Deepankar Katyal, as representative of pre-merger Advangelists members, payable in 19 monthly installments of $500,000 each. The Company acquired 3% of the Advangelists’ membership interests from Glen Eagles in April 2019 in satisfaction of the Company’s $500,000 closing payment advance to Glen Eagles, resulting in Mobiquity owning 51% and Glen Eagles owning 49% of Advangelists. In May 2019 the Company acquired the remaining 49% of Advangelists’ membership interests from Glen Eagles, becoming the 100% owner of Advangelists, in a transaction involving the Company, Glen Eagles, and Gopher Protocol, Inc. In that transaction, Gopher acquired the 49% Advangelists membership interest from Glen Eagles and assumed Glen Eagles’ promissory note to Deepankar Katyal, as representative of the pre-merger Advangelists owners, which had a remaining balance of $7,512,500, in satisfaction of indebtedness owed by Glen Eagles to Gopher. Concurrently with that transaction, the Company acquired the 49% of Advangelists membership interest from Gopher and assumed the promissory note in consideration. Additionally, warrants for 300,000 shares of Company common stock which are issuable upon the conversion of Mobiquity Class AAA preferred stock owned by Gopher were amended to provide for a cashless exercise. In September 2019, the assumed note, which then had a principal balance of $6,780,000, was amended and restated to provide that: · $5,250,000 of the principal was payable in 65,625 shares of the Company’s Class E Preferred Stock, which is convertible into 164,062.50 shares the Company’s common stock, plus warrants to purchase 82,031.25 Company shares of common stock, at an exercise price of $48 per share: and · $1,530,000 of the principal balance, plus all accrued and unpaid interest under the promissory note was payable in three monthly installments of $ 510,000 The promissory note was paid in full in November 2019. Mobiquity Networks, Inc. We have established Mobiquity Networks, Inc and have operated it since January 2011. Mobiquity Networks started and developed as a mobile advertising technology company focused on driving foot-traffic throughout its indoor network and has evolved and grown into a next generation data intelligence company. Mobiquity Networks operates our data intelligence platform business. Going Concern These condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. We have a history of losses and may continue to incur losses in the future, which could negatively impact the trading value of our common stock. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of management to raise additional equity capital through private and public offerings of its common stock, and the attainment of profitable operations. As of December 31, 2021, and 2020, the Company had an accumulated deficit (as restated) of $ 202,444,894 184,111,511 18,333,383 11,745,835 These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The recently acquired Advangelists LLC has also incurred losses and experienced negative cash flows from operations during the most recent fiscal year. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of management to raise additional capital through private and public offerings of its common stock, and the attainment of profitable operations. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Reverse Stock Split In September 2020, the Company filed a Certificate of Amendment the Articles of Incorporation with the Secretary of State of the state of New York to implement a 1 for 400 reverse stock-split Impacts of COVID-19 to Business and the general economy The Company’s financial condition and results of operations have been and may continue to be adversely affected by the COVID-19 pandemic. Since March 2020, COVID -19 has caused a material and substantial adverse impact on our general economy and our business operations. It has caused there to be a substantial decrease in our sales, cancellations of purchase orders and has resulted in accounts receivables not being timely paid as anticipated. Further, it has caused us to have concerns about our ability to meet our obligations as they become due and payable. In this respect, our business is directly dependent upon and correlates closely to the marketing levels and ongoing business activities of our existing clients. If material adverse developments in domestic and global economic and market conditions adversely affect our clients’ businesses, such as COVID-19, our business and results of operations could (and in the case of COVID-19) equally suffer. Our results of operations are affected directly by the level of business activity of our clients, which in turn is affected by the level of economic activity in the industries and markets that they serve. COVID-19 future widespread economic slowdowns in any of these markets, particularly in the United States, may negatively affect the businesses, purchasing decisions and spending of our clients and prospective clients, and payment of accounts receivable due us, which could result in reductions in our existing business as well as our new business development and difficulties in meeting our cash obligations as they become due. In the event of continued widespread economic downturn caused by COVID-19, we will likely continue to experience a reduction in projects, longer sales and collection cycles, deferral or delay of purchase commitments for our data products, processing functionality, software systems and services, and increased price competition, all of which could substantially adversely affect revenue and our ability to remain a going concern. In the event we remain a going concern, the impacts of the global emergence of Coronavirus disease (COVID-19) on our business, sources of revenues and then general economy, are currently not fully known. We are conducting business as usual with some modifications to employee work locations, and cancellation of certain marketing events, among other modifications. We lost a purchase order of more than one million dollars with major US sports organization. We have observed other companies taking precautionary and preemptive actions to address COVID-19 and companies may take further actions that alter their normal business operations. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal, state, or local authorities or that we determine are in the best interests of our employees, customers, partners, suppliers and stockholders. It is not clear what the potential effects any such alterations or modifications may have on our business, including the effects on our customers and prospects, although we do anticipate it to continue to negatively impact our financial results during fiscal years 2022 and 2023. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS The ATOS platform: · creates an automated marketplace of advertisers and publishers on digital media outlets to host online auctions to facilitate the sale of ad time slots (known as digital real estate) targeted at users while engaged on their connected TV, computer or mobile device, and · gives advertisers the capability to understand and interact with their audiences and engage them in a meaningful way by using ads in both image and video formats (known as rich media) to increase their customer base and foot traffic to their physical locations. Advangelists’ marketplace engages with approximately 10 billion advertisement opportunities per day. Our sales and marketing strategy is focused on creating a de-fragmented operating system that makes it considerably more efficient and effective for advertisers and publishers to transact with each other. Our goal is to create a standardized and transparent medium. Advangelists' technology is proprietary and has been developed internally. We own our technology. Risks Related to Our Financial Results and Financing Plans Management has plans to address the Company’s financial situation as follows: In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan related to technology. Management will continue to seek out equity and/or debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders and investors will continue to advance capital to the Company or that the new business operations will be profitable. In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company that will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s efforts to raise equity and debt at acceptable terms or that the planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations. Related Parties Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. We disclose related party transactions that are outside of normal compensatory agreements, such as salaries or board of director fees. We consider the following individuals / companies to be related parties as of December 31, 2021: Dean Julia - Principal Executive Officer President and Director Sean McDonnell - Chief Financial Officer Deepanker Katyal, Chief Executive Officer of Advangelists Sean Trepeta – President of Mobiquity Networks and Secretary of the Company Dr. Gene Salkind – Chairman of the Board of Directors Michael Wright – Board of Directors Anthony Iacovone – Board of Directors Peter Zurkow – Board of Directors PRINCIPLES OF CONSOLIDATION ESTIMATES CASH AND CASH EQUIVALENTS CONCENTRATION OF CREDIT RISK Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company’s customer base and their dispersion across geographic areas principally within the United States. The Company routinely addresses the financial strength of its customers and, consequently, believes that its receivable credit risk exposure is limited. Our current receivables at December 31, 2021 consist of 55 58 The Company places its temporary cash investments with high credit quality financial institutions. At times, the Company maintains bank account balances which exceed FDIC limits. As of December 31, 2021, and December 31, 2020, the Company exceeded FDIC limits by $ 5,103,273 114,986 REVENUE RECOGNITION The Company accounts for revenue recognition in accordance with accounting guidance codified as FASB ASC 606 “Revenue from Contracts with Customers” (“ASC 606”), as amended, regarding revenue from contracts with customers. Under the standard an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. Under ASC 606, revenue is recognized at the same point in time, upon delivery of services, under both ASC Topic 605 and Topic 606, as applicable under the terms of the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company’s rights to payments for services transferred to customers are conditional only on the passage of time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 90 days. ALLOWANCE FOR DOUBTFUL ACCOUNTS 820,990 386,600 PROPERTY AND EQUIPMENT LONG LIVED ASSETS Property, Plant and Equipment 3,600,000 4,000,000 Transactions with major customers During the year ended December 31, 2021, four customers accounted for approximately 31 42 During the year ended December 31, 2021, five customers accounted for approximately 55 58 ADVERTISING COSTS 1,454 1,400 ACCOUNTING FOR STOCK BASED COMPENSATION OFFERING COSTS (RESTATED) BENEFICIAL CONVERSION FEATURES INCOME TAXES RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS We adopted the lease standard ACS 842 effective January 1, 2019, and have elected to use January 1, 2019, as our date of initial application. Consequently, financial information will not be updated, and disclosures required under the new standard will not be provided for periods presented before January 1, 2019, as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. As of December 31, 2021, we are not a lessor or lessee under any lease arrangements. We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or result of operations. NET LOSS PER SHARE Basic net loss per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options and warrants. The number of common shares potentially issuable upon the exercise of certain options and warrants that were excluded from the diluted loss per common share calculation was approximately 4,925,000 RECLASSIFICATIONS (RESTATED) Certain prior year amounts have been reclassified for consistency with the current year presentation due to the restatement. |
RESTATEMENT
RESTATEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Restatement | |
RESTATEMENT | NOTE 3: RESTATEMENT The Company concluded it should restate its previously issued financial statements by amending its Amendment No. 1 to its Annual Report on Form 10-K, filed with the SEC on May 23, 2022. The restated financial statements are indicated as “Restated” in the financial statements and accompanying notes, as applicable. The restatements of the prior filings are the result of the following summarized transactions: During 2020 and 2021, certain holders of the Company’s convertible debt converted debt principal into shares of common stock, or the Company sold shares of its stock for cash. For certain of these transactions, the Company recorded a “loss on sale of stock" and increased additional paid-in capital representing the difference in the per share sale or conversion price of the stock and the per share market value of the stock at the date of the transactions. For these types of transactions, the Company should not have recorded any gain or loss for the difference in the per share issuance price and market value. The converted or sold value should be netted against the debt amount settled at original conversion terms, or cash received, with the offset recorded to additional paid-in capital. The restatement resulted in a reduction of net loss and additional paid-in capital. During Q2 2019, the Company granted a total of 23 million (57,500 post a 1-for-400 reverse stock split) warrant shares to three individuals which vest over a graded two-year period. The Company had been expensing, upon each graded vesting date, the fair value of the vested options as opposed to recognizing the expense straight-line over the entire vesting period for each vesting tranche. Further, the option was being expensed over a three-year vesting period, erroneously, as opposed to the contractual graded two-year vesting period. This resulted in significant differences in the timing of stock-based compensation recognition on an annual and quarterly basis. The Company had warrants outstanding at December 31, 2019 that were issued in conjunction with its AAA Preferred Stock (the "AAA warrants”). In early 2020, the warrant holders exercised 11,755,200 (29,388 post a 1-for-400 reverse stock split) warrant shares. The Company proceeded to record "warrant expense" for the fair value of the warrants on the date they were exercised. Per generally accepted accounting principles, the accounting for such warrants should be done as of their grant date, not their exercise date. When warrants are exercised for cash under the original terms of the warrant agreement, assuming they are classified as equity when issued, the Company should record common stock and additional paid-in capital only for the amount of proceeds received. In addition to the AAA warrants, certain warrants were exercised by two non-affiliated individuals. The Company subsequently issued additional common shares to the non-affiliated individuals under the warrant exercises based on a lower strike price, resulting in additional shares issued to the warrant holders. Any value associated with the modification of the warrant terms would be considered a deemed dividend and reflected within stockholders’ equity and not to other expense. During 2021, several debt holders received shares of common stock or an “equity kicker” in connection with the issuance of short-term promissory notes. The estimated value of the shares issued was reflected on the consolidated statements of operations as “loss on sale of stock". This should be presented as interest expense since the shares were issued with short-term promissory notes. MOBIQUITY TECHNOLOGIES, INC. Impact of the Restatement – December 31, 2020 Schedule of condensed financial statements As of December 31, 2020 Balance Sheet Data As Previously Reported Adjustment As Restated Additional paid in capital $ 184,586,420 $ (2,057,415 ) $ 182,529,005 Accumulated deficit $ (186,168,926 ) $ 2,057,415 $ (184,111,511 ) Total Stockholders' Equity $ 2,886,685 $ – $ 2,886,685 Year Ended December 31, 2020 Statement of Operations Data As Previously Reported Adjustment As Restated General and administrative $ 9,204,465 $ (353,536 ) $ 8,850,929 Total operating expenses $ 9,204,465 $ (353,536 ) $ 8,850,929 Loss from operations $ (7,381,100 ) $ 353,536 $ (7,027,564 ) Proceeds from sale of warrants $ 662,758 $ (662,758 ) $ – Warrant income (expense) $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (2,996,897 ) $ 2,996,897 $ – Unrealized gain (loss) on investments $ – $ (3,009 ) $ (3,009 ) Total other income (expense) - net $ (7,648,295 ) $ 2,930,024 $ (4,718,271 ) Net loss $ (15,032,404 ) $ 3,286,569 $ (11,745,835 ) Net loss per share - basic and diluted $ (5.92 ) $ (4.63 ) Year Ended December 31, 2020 Cash Flow Data As Previously Reported Adjustment As Restated Net loss $ (15,032,404 ) $ 3,286,569 $ (11,745,835 ) Stock-based compensation $ 1,347,048 $ (353,536 ) $ 993,512 Warrant expense $ 1,472,368 $ (1,472,368 ) $ – Loss on conversion of debt to common stock $ 30,694 $ (30,694 ) $ – Accounts payable and accrued expenses $ (778,375 ) $ 4 $ (778,371 ) Net cash used in operating activities $ (4,716,739 ) $ 1,429,975 $ (3,286,764 ) Proceeds from exercise of warrants $ – $ 662,754 $ 662,754 Repayments on notes payable $ (520,809 ) $ 30,694 $ (490,115 ) Common stock issued for cash, net $ 3,600,423 $ (2,123,423 ) $ 1,477,000 Net cash provided by financing activities $ 4,085,456 $ (1,429,975 ) $ 2,655,481 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,694 $ 30,694 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Impact of the Restatement – December 31, 2021 As of December 31, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 204,373,816 $ (3,089,809 ) $ 201,284,007 Accumulated deficit $ (205,534,703 ) $ 3,089,809 $ (202,444,894 ) Total Stockholders' Equity (Deficit) $ 2,918,672 $ – $ 2,918,672 Year Ended December 31, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated General and administrative expenses $ 13,982,877 $ (375,118 ) $ 13,607,759 Loss from operations $ (13,264,645 ) $ 375,118 $ (12,889,527 ) Loss on debt extinguishment $ (657,276 ) $ 657,276 $ – Total other income (expense) - net $ (6,101,132 ) $ 657,276 $ (5,443,856 ) Net loss $ (19,365,777 ) $ 1,032,394 $ (18,333,383 ) Net loss per share - basic and diluted $ (5.78 ) $ (5.47 ) Year Ended December 31, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (19,365,777 ) $ 1,032,394 $ (18,333,383 ) Stock-based compensation $ 5,010,342 $ (375,118 ) $ 4,635,224 Loss on conversion of debt to common stock $ 655,832 $ (655,832 ) $ – Net cash used in operating activities $ (6,717,324 ) $ – $ (6,717,324 ) Net cash provided by investing activities $ (6,472 ) $ – $ (6,472 ) Net cash provided by financing activities $ 11,506,860 $ – $ 11,506,860 Impact of the Restatement - Quarterly Interim Periods (Unaudited) Schedule of balance sheet data As of March 31, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 178,560,444 $ 1,604,482 $ 180,164,926 Accumulated deficit $ (173,572,315 ) $ (1,604,482 ) $ (175,176,797 ) Total Stockholders' Equity $ 9,303,275 $ – $ 9,303,275 As of June 30, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 180,625,860 $ (68,575 ) $ 180,557,285 Accumulated deficit $ (178,155,775 ) $ 68,575 $ (178,087,200 ) Total Stockholders' Equity $ 6,939,234 $ – $ 6,939,234 As of September 30, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 184,231,046 $ (2,101,143 ) $ 182,129,903 Accumulated deficit $ (182,116,945 ) $ 2,101,143 $ (180,015,802 ) Total Stockholders' Equity $ 6,583,288 $ – $ 6,583,288 As of March 31, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 185,234,064 $ 1,932,033 $ 183,302,031 Accumulated deficit $ (188,398,702 ) $ (1,932,033 ) $ (186,466,669 ) Total Stockholders' Equity $ 1,304,563 $ – $ 1,304,563 As of June 30, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 187,117,663 $ (2,652,133 ) $ 184,465,530 Accumulated deficit $ (190,992,325 ) $ 2,652,133 $ (188,340,192 ) Total Stockholders' Equity $ 594,559 $ – $ 594,559 As of September 30, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 189,498,056 $ (3,088,538 ) $ 186,409,518 Accumulated deficit $ (194,904,072 ) $ 3,088,538 $ (191,815,534 ) Total Stockholders' Equity (Deficit) $ (951,735 ) $ – $ (951,735 ) Schedule of operations Three Months Ended March 31, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Selling, general and administrative $ 1,485,080 $ (80,750 ) $ 1,404,330 Stock-based compensation $ – $ 490,468 $ 490,468 Total operating expenses $ 2,381,928 $ 409,718 $ 2,791,646 Loss from operations $ (2,225,740 ) $ (409,718 ) $ (2,635,458 ) Loss on sale of company stock $ (34,390 ) $ 34,390 $ – Unrealized gain (loss) on investments $ – $ (3,038 ) $ (3,038 ) Total other income (expense) - net $ (207,015 ) $ 31,352 $ (175,663 ) Net loss $ (2,435,793 ) $ (375,328 ) $ (2,811,121 ) Net loss per share - basic and diluted $ (0.00 ) $ (0.00 ) Three Months Ended June 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,276,870 $ (1,015,388 ) $ 261,482 Total operating expenses $ 3,553,285 $ (1,015,388 ) $ 2,537,897 Loss from operations $ (3,767,016 ) $ 1,015,388 $ (2,751,628 ) Warrant expense $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (58,775 ) $ 58,775 $ – Unrealized gain (loss) on investments $ – $ 28 $ 28 Total other income (expense) - net $ (816,472 ) $ 657,697 $ (158,775 ) Net loss $ (4,583,460 ) $ 1,673,057 $ (2,910,403 ) Net loss per share - basic and diluted $ (0.00 ) $ (0.00 ) Six Months Ended June 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Selling, general and administrative $ 3,149,691 $ (80,750 ) $ 3,068,941 Stock-based compensation $ 1,276,870 $ (524,920 ) $ 751,950 Total operating expenses $ 5,935,213 $ (605,670 ) $ 5,329,543 Loss from operations $ (5,992,756 ) $ 605,670 $ (5,387,086 ) Warrant expense $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (93,165 ) $ 93,165 $ – Unrealized gain (loss) on investments $ – $ (3,010 ) $ (3,010 ) Total other income (expense) - net $ (1,023,487 ) $ 689,049 $ (334,438 ) Net loss $ (7,019,253 ) $ 1,297,729 $ (5,721,524 ) Net loss per share - basic and diluted $ (0.01 ) $ (0.01 ) Three Months Ended September 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 54,589 $ 126,067 $ 180,656 Total operating expenses $ 2,078,382 $ 126,067 $ 2,204,449 Loss from operations $ (1,601,465 ) $ (126,067 ) $ (1,727,532 ) Warrant income (expense) $ 662,758 $ (662,758 ) $ – Loss on sale of company stock $ (2,821,393 ) $ 2,821,393 $ – Unrealized gain (loss) on investments $ – $ (23 ) $ (23 ) Total other income (expense) - net $ (2,359,682 ) $ 2,158,612 $ (201,070 ) Net loss $ (3,961,170 ) $ 2,032,568 $ (1,928,602 ) Net loss per share - basic and diluted $ (1.43 ) $ (0.70 ) Nine Months Ended September 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,331,459 $ (479,603 ) $ 851,856 Total operating expenses $ 8,013,595 $ (479,603 ) $ 7,533,992 Loss from operations $ (7,594,221 ) $ 479,603 $ (7,114,618 ) Warrant income (expense) $ 63,864 $ (63,864 ) $ – Loss on sale of company stock $ (2,914,558 ) $ 2,914,558 $ – Unrealized gain (loss) on investments $ – $ (3,033 ) $ (3,033 ) Total other income (expense) - net $ (3,383,169 ) $ 2,847,661 $ (535,508 ) Net loss $ (10,980,423 ) $ 3,330,297 $ (7,650,126 ) Net loss per share - basic and diluted $ (3.99 ) $ (2.78 ) Three Months Ended March 31, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 16,839 $ 125,382 $ 142,221 Total operating expenses $ 1,626,394 $ 125,382 $ 1,751,776 Loss from operations $ (2,041,801 ) $ (125,382 ) $ (2,167,183 ) Unrealized gain (loss) on investments $ – $ 40 $ 40 Total other income (expense) - net $ (188,015 ) $ 40 $ (187,975 ) Net loss $ (2,229,776 ) $ (125,382 ) $ (2,355,158 ) Net loss per share - basic and diluted $ (0.78 ) $ (0.82 ) Three Months Ended June 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 555,892 $ (500,500 ) $ 55,392 Total operating expenses $ 2,047,428 $ (500,500 ) $ 1,546,928 Loss from operations $ (2,156,513 ) $ 500,500 $ (1,656,013 ) Interest expense $ (215,162 ) $ (310,150 ) $ (525,312 ) Original issue discount $ (110,000 ) $ 110,000 $ – Loss on sale of company stock $ (419,750 ) $ 419,750 $ – Unrealized gain (loss) on investments $ – $ (40 ) $ (40 ) Loan forgiveness - SBA $ – $ 265,842 $ 265,842 Total other income (expense) - net $ (744,912 ) $ 485,402 $ (259,510 ) Net loss $ (2,593,623 ) $ 720,100 $ (1,873,523 ) Net loss per share - basic and diluted $ (0.87 ) $ (0.63 ) Six Months Ended June 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 572,731 $ (375,118 ) $ 197,613 Total operating expenses $ 3,631,822 $ (375,118 ) $ 3,256,704 Loss from operations $ (4,156,314 ) $ 375,118 $ (3,781,196 ) Interest expense $ (403,177 ) $ (310,150 ) $ (713,327 ) Original issue discount $ (110,000 ) $ 110,000 $ – Loan forgiveness - SBA $ – $ 265,842 $ 265,842 Loss on sale of company stock $ (419,750 ) $ 419,750 $ – Total other income (expense) - net $ (932,927 ) $ 485,442 $ (447,485 ) Net loss $ (4,823,399 ) $ 594,718 $ (4,228,681 ) Net loss per share - basic and diluted $ (1.65 ) $ (1.45 ) Three Months Ended September 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Interest expense $ (203,436 ) $ (605,880 ) $ (809,316 ) Original issue discount $ (605,880 ) $ 605,880 $ – Loss on sale of company stock $ (436,405 ) $ 436,405 $ – Total other income (expense) - net $ (1,245,703 ) $ 436,405 $ (809,298 ) Net loss $ (3,911,747 ) $ 436,405 $ (3,475,342 ) Net loss per share - basic and diluted $ (1.22 ) $ (1.09 ) Nine Months Ended September 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,289,899 $ (375,118 ) $ 914,781 Total operating expenses $ 6,179,909 $ (375,118 ) $ 5,804,791 Loss from operations $ (6,822,358 ) $ 375,118 $ (6,447,240 ) Interest expense $ (606,613 ) $ (916,030 ) $ (1,522,643 ) Original issue discount $ (715,880 ) $ 715,880 $ – Loss on sale of company stock $ (856,155 ) $ 856,155 $ – Total other income (expense) - net $ (2,178,630 ) $ 656,005 $ (1,522,625 ) Net loss $ (8,735,146 ) $ 1,031,123 $ (7,704,023 ) Net loss per share - basic and diluted $ (2.89 ) $ (2.54 ) Schedule of cash flow Three Months Ended March 31, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (2,435,793 ) $ (375,328 ) $ (2,811,121 ) Stock-based compensation $ – $ 490,468 $ 490,468 Warrant expense $ 403,268 $ (403,268 ) $ – Accounts payable and accrued expenses $ (639,237 ) $ (103,074 ) $ (742,311 ) Accrued expenses and other current liabilities $ (93,063 ) $ 93,063 $ – Accrued interest $ (10,011 ) $ 10,011 $ – Net cash used in operating activities $ (836,696 ) $ (288,128 ) $ (1,124,824 ) Series E preferred stock exchange for common stock $ (314,960 ) $ 314,960 $ – Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash used in investing activities $ (284,265 ) $ 284,265 $ – Preferred stock converted to common stock $ 314,960 $ (314,960 ) $ – Common stock issued under exercise of warrants $ – $ 288,128 $ 288,128 Cash paid on bank notes $ (263,173 ) $ 30,695 $ (232,478 ) Net cash provided by financing activities $ 301,787 $ 3,863 $ 305,650 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Six Months Ended June 30, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (7,019,253 ) $ 1,297,729 $ (5,721,524 ) Stock-based compensation $ 1,276,870 $ (524,920 ) $ 751,950 Warrant expense $ 1,354,817 $ (1,354,817 ) $ – Accounts payable and accrued expenses $ (625,562 ) $ (4,370 ) $ (629,932 ) Accrued expenses and other current liabilities $ (89,671 ) $ 89,671 $ – Accrued interest $ 85,301 $ (85,301 ) $ – Net cash used in operating activities $ (1,116,388 ) $ (582,008 ) $ (1,698,396 ) Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash provided by investing activities $ 30,695 $ (30,695 ) $ – Common stock issued under exercise of warrants $ – $ 582,008 $ 582,008 Cash paid on bank notes $ (462,694 ) $ 30,695 $ (431,999 ) Net cash provided by financing activities $ 282,694 $ 612,703 $ 895,397 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Nine Months Ended September 30, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (10,980,423 ) $ 3,330,297 $ (7,650,126 ) Stock-based compensation $ 1,331,459 $ (479,603 ) $ 851,856 Warrant expense $ 1,472,368 $ (1,472,368 ) $ – Accounts payable and accrued expenses $ (629,419 ) $ 86,203 $ (543,216 ) Accrued expenses and other current liabilities $ (95,310 ) $ 95,310 $ – Accrued interest $ 181,513 $ (181,513 ) $ – Net cash used in operating activities $ (4,490,623 ) $ 1,378,326 $ (3,112,297 ) Common stock issued for cash, net $ 3,338,084 $ (3,338,084 ) $ – Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash provided by (used in) investing activities $ 3,362,180 $ (3,368,779 ) $ (6,599 ) Common stock issued under exercise of warrants $ – $ 662,758 $ 662,758 Common stock issued for cash, net $ – $ 1,297,000 $ 1,297,000 Cash paid on bank notes $ (490,739 ) $ 30,695 $ (460,044 ) Net cash provided by financing activities $ 425,103 $ 1,990,453 $ 2,415,556 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Three Months Ended March 31, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (2,229,776 ) $ (125,382 ) $ (2,355,158 ) Stock-based compensation $ 16,839 $ 125,382 $ 142,221 Accounts payable and accrued expenses $ (275,686 ) $ 99,552 $ (176,134 ) Accrued expenses and other current liabilities $ 4,715 $ (4,715 ) $ – Accrued interest $ 94,837 $ (94,837 ) $ – Net cash used in operating activities $ (1,079,181 ) $ – $ (1,079,181 ) Common stock issued for cash, net $ 548,990 $ (548,990 ) $ – Net cash provided by investing activities $ 548,990 $ (548,990 ) $ – Common stock issued for cash, net $ – $ 548,990 $ 548,990 Net cash provided by financing activities $ 140,016 $ 548,990 $ 689,006 Six Months Ended June 30, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (4,823,399 ) $ 594,718 $ (4,228,681 ) Stock-based compensation $ 572,731 $ (375,118 ) $ 197,613 Stock issued with short-term convertible notes $ – $ 310,150 Gain on forgiveness of debt $ – $ (265,842 ) $ (265,842 ) Accounts payable and accrued expenses $ (519,474 ) $ 176,339 $ (343,135 ) Accrued expenses and other current liabilities $ (19,473 ) $ 19,473 $ – Accrued interest $ 195,810 $ (195,810 ) $ – Net cash used in operating activities $ (2,712,694 ) $ 263,910 $ (2,448,784 ) Common stock issued for cash, net $ 898,990 $ (898,990 ) $ – Original issue discount shares $ 268,150 $ (268,150 ) $ – Note conversion to common stock $ 671,602 $ (671,602 ) $ – Net cash provided by investing activities $ 1,838,742 $ (1,838,742 ) $ – Common stock issued for cash, net $ – $ 898,990 $ 898,990 Proceeds from issuance of notes payable, net $ 1,310,000 $ 510,000 $ 1,820,000 Gain on forgiveness of debt $ (265,842 ) $ 265,842 $ – Repayment of notes payable $ (598,816 ) $ (100,000 ) $ (698,816 ) Net cash provided by financing activities $ 445,342 $ 1,574,832 $ 2,020,174 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ 419,750 $ (419,750 ) $ – Common stock issued for services $ 110,000 $ (110,000 ) $ – Nine Months Ended September 30, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (8,735,146 ) $ 1,031,123 $ (7,704,023 ) Stock-based compensation $ 1,289,899 $ (375,118 ) $ 914,781 Stock issued with short-term convertible notes $ – $ 1,753,032 $ 1,753,032 Gain on forgiveness of debt $ – $ (265,842 ) $ (265,842 ) Accounts payable and accrued expenses $ (474,650 ) $ 273,037 $ (201,613 ) Accrued expenses and other current liabilities $ (28,882 ) $ 28,882 $ – Accrued interest $ 301,919 $ (301,919 ) $ – Net cash used in operating activities $ (5,060,535 ) $ 2,143,195 $ (2,917,340 ) Common stock issued for cash, net $ 898,990 $ (898,990 ) $ – Original issue discount shares $ 724,031 $ (724,031 ) $ – Note conversion to common stock $ 1,810,506 $ (1,810,506 ) $ – Net cash provided by investing activities $ 3,433,527 $ (3,433,527 ) $ – Common stock issued for cash, net $ – $ 898,990 $ 898,990 Proceeds from issuance of notes payable, net $ 2,643,000 $ 225,500 $ 2,868,500 Gain on forgiveness of debt $ (265,842 ) $ 265,842 $ – Repayment of notes payable $ (616,918 ) $ (100,000 ) $ (716,918 ) Net cash provided by financing activities $ 1,760,240 $ 1,290,332 $ 3,050,572 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ 419,750 $ (419,750 ) $ – |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 4: INTANGIBLE ASSETS The ATOS platform: · creates an automated marketplace of advertisers and publishers on digital media outlets to host online auctions to facilitate the sale of ad time slots (known as digital real estate) targeted at users while engaged on their connected TV, computer, or mobile device, and · gives advertisers the capability to understand and interact with their audiences and engage them in a meaningful way by the using ads in both image and video formats (known as rich media) to increase their customer base and foot traffic to their physical locations. The Company tests goodwill for impairment at least annually on December 31 st Our goodwill balance is not amortized to expense, instead it is tested for impairment at least annually. We perform our annual goodwill impairment analysis at the end of the fourth quarter. If events or indicators of impairment occur between annual impairment analyses, we perform an impairment analysis of goodwill at that date. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant asset. In testing for a potential impairment of goodwill, we: (1) verify there are no changes to our reporting units with goodwill balances; (2) allocate goodwill to our various reporting units to which the acquired goodwill relates; (3) determine the carrying value, or book value, of our reporting units, as some of the assets and liabilities related to each reporting unit are held by a corporate function; (4) estimate the fair value of each reporting unit using a discounted cash flow model; (5) reconcile the fair value of our reporting units in total to our market capitalization adjusted for a subjectively estimated control premium and other identifiable factors; (6) compare the fair value of each reporting unit to its carrying value; and (7) if the estimated fair value of a reporting unit is less than the carrying value, we must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business to calculate the implied fair value of the reporting unit’s goodwill and recognize an impairment charge if the implied fair value of the reporting unit’s goodwill is less than the carrying value. The Company recognized an impairment charge of $ 3,600,000 4,000,000 At each balance sheet date herein, definite-lived intangible assets primarily consist of customer relationships which are being amortized over their estimated useful lives of five years. The Company periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they will be removed from the accounts. These assets are reviewed for impairment or obsolescence when events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. The Company has no intangibles with indefinite lives. Schedule of intangible assets Useful Lives December 30, 2021 December 31, 2020 Customer relationships 5 $ 3,003,676 $ 3,003,676 ATOS Platform 5 2,400,000 6,000,000 5,403,676 9,003,676 Less accumulated amortization (4,156,657 ) (3,355,922 ) Net carrying value $ 1,247,019 $ 5,647,754 Future amortization, for the years ending December 31, is as follows: Schedule of future accumulated amortization schedule 2022 $ 603,976 2023 572,584 2024 70,459 Total $ 1,247,019 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 5: NOTES PAYABLE Summary of Notes payable: Summary of Notes payable: December 31, December 31, Mob-Fox US LLC (b) $ – $ 30,000 Dr. Salkind, et al (f) 2,562,500 2,550,000 Small Business Administration (a) 150,000 415,842 Subscription Agreements (d) 250,000 – Blue Lake Partners LLC Talos Victory Fund LLC (e) – – Business Capital Providers (c) 156,504 355,441 Total Debt 3,119,004 3,351,283 Current portion of debt 656,504 901,283 Long-term portion of debt $ 2,462,500 $ 2,450,000 __________________ (a) In May of 2020, the Companies applied and received Small Business Administration Cares Act loans due to the COVID-19 Pandemic. Each loan carries a five-year term, carrying a one percent interest rate. The loans turn into grants if the funds are use the for the SBA accepted purposes. The window to use the funds for the SBA specific purposes is a twenty-four-week period. If the funds are used for the allotted expenses the loans turn into grants with each loan being forgiven. The Company also received an Economic Injury Disaster Loan from the SBA which carries a thirty-year term, carrying a three-point seven five percent interest rate. During second quarter 2021 the Company applied for and received forgiveness for $ 265,842 (b) In October of 2020, the Company entered into an agreement with a vendor to accept $65,000 in full settlement of our payable due. A down payment of $15,000 at the signing of the agreement and five payments of $10,000 each, the loan was paid in full. (c) Business Capital Providers, Inc. purchased certain future receivables from the Company at a 26% discount under the following agreements on the following terms: Pursuant to a Merchant Agreement dated July 28, 2021, Business Capital Providers purchased $405,000 of future receivables for a purchase price of $300,000. Under the agreement, the Company agrees to have all receivables collected be deposited into a bank account from which the purchased receivables are remitted to Business Capital Providers daily, at the daily percentage of 9% of the daily banking deposits, or daily amounts of $2,531.25, for the term of 160 days. The Company is responsible for ensuring there are sufficient funds in the account to cover the daily payments. Under the agreement, the Company paid an origination fee of 5% of the purchase price. In the event of a default under the agreement, Business Capital Providers may institute an action to enforce its rights, including recovery of its costs of enforcement. Events of default under the agreement include, among others: the Company’s breach of any provision or representation under the agreement; failure to give 24 hours’ notice there will be insufficient funds to cover a daily remittance; the Company offers for sale or sells a substantial portion of its assets or its business; the Company uses other depository accounts, or closes or changes its depository account from which daily remittances are made; a material change in the Company’s operations; loss of a key employee, customer or supplier of the Company; any change in stock float, voting rights or issuance of voting shares; the Company’s failure to renew a real property lease; any Company default under another agreement with Business Capital Providers; or any form of bankruptcy filing or declaration by or for the Company. The Agreement further provides that in the event of a default, lieu of personal guarantees by any Company principals, or if otherwise mutually agreed, Business Capital Providers may convert any portion of amounts payable to it into shares of common stock of the Company at a price equal to 85% of the lowest volume weighted average price for each of the five trading days preceding the conversion date; provided that Business Capital Providers will not convert into shares that will result in it owning more than 4.99% of the Company’s then outstanding shares of common stock. Pursuant to a Merchant Agreement dated April 29, 2021, purchased $405,000 of future receivables for a purchase price of $300,000 on terms which are substantially the same as the July 28, 2021, Merchant Agreement, except that the daily percentage is 13% and the daily payment is $2,700 per day for a term of 150 business days all of which is fully satisfied. The Company previously entered into separate Merchant Agreements with Business Capital Providers on eight occasions prior to the April 29, 2021, Merchant Agreement, starting in June 2019, for an aggregate of $2,100,000 in financing, for a total cost of $2,835,000 at daily percentages, and daily payments, all of which were satisfied in full. On February 20, 2020, the Company entered into a fourth merchant agreement with Business Capital Providers, Inc. in the amount of $250,000 payable daily at $2,556.82, per payment for the term of 132 business days, loan paid in full. On June 12, 2020, the Company entered into a fifth merchant agreement with Business Capital Providers, Inc. in the amount of $250,000 payable daily at $2,556.82, per payment for the term of 132 business days. On August 11, 2020, the Company entered into a sixth merchant agreement with Business Capital Providers, Inc. in the amount of $250,000 payable daily at $2,556.82, per payment for a term of 132 business days, loan paid in full. On November 25, 2020, the Company entered into a seventh merchant agreement with Business Capital Providers, Inc. in the amount of $310,000 payable daily at $2,700.00, per payment for the term of 155 business days. On February 19, 2021, the Company entered into an eight-merchant agreement with Business Capital Providers, Inc. in the amount of $250,000 payable daily at $2,556.82, per payment for the term of 132 business days, loan is paid in full. On April 29, 2021, the Company entered into a ninth-merchant agreement with Business Capital Providers, Inc. in the amount of $300,000 payable daily at $2,700.00, per payment for the term of 150 business days. On July 28, 2021, the Company entered into a tenth-merchant agreement with Business Capital Providers, Inc. in the amount of $300,000 payable daily at $2,531.25, per payment for the term of 160 business days. (d) Nineteen private investors, who were unaffiliated shareholders of the Company and accredited investors as provided under Regulation D Rule 501 promulgated under the Securities Act of 1933, provided us convertible debt financing during the period May 2021 through September 2021 pursuant to subscription agreements as described below. (Certain of these investors provided us multiple investments in one or more of these convertible debt structures.): Nine of the lender-investors provided us an aggregate of $668,000 in convertible debt financing on the following terms: The lender-investors were issued shares of Company common stock valued at $6 per share equal to 5% of their investments as original issue discount. The debt maturity date is October 31, 2021. If the Company receives debt of equity financing of $200,000 or more, the debt is payable within two business days after the Company receives those funds. The maturity dates of six of these investors’ convertible debt was extended to December 31, 2021. The debt is convertible into shares of Company common stock at a conversion price of $6 per share at any time at the investor’ option until the maturity date. Three of the lender-investors provided us an aggregate of $ 200,000 The lender-investors were issued shares of Company common stock valued at $6 per share equal to 6,000 per $100,000 of principal loan, or on a pro-rata basis is less than $100,000 is loaned (effectively 6% of the amount loaned) as original issue discount. The debt is convertible into shares of Company common stock at a conversion price of $6 per share at any time at the investor’s option until the maturity date. These investors converted all of this convertible debt into a total of 40,000 154,500 Eleven of the lender-investors provided us an aggregate of $ 819,500 The investment amounts included 10% original issue discount. Accordingly, the total net principal proceeds of this debt that we received was $ 745,000 The investor may convert the debt at any time through the maturity date at a 30% discount to the volume weighted average price per share over the 60-day period prior to conversion, with a floor conversion price of $4 per share. The debt will automatically convert on July 1, 2022, at $4 per share if it is not repaid, or converted by the investor, prior to then. All of these investors converted a total of $ 819,500 156,761 Four of the lender-investors provided us $ 130,000 Interest at the annual rate of 10%, debt maturity date is June 30, 2022. The investor may convert the debt at any time through the maturity date at a 30% discount to the volume weighted average price per share over the 60-day period prior to conversion, with a floor conversion price of $4 per share. The debt will automatically convert on July 1, 2022, at $4 per share if it is not repaid, or converted by the investor, prior to then. One of these investors converted a total of $ 30,000 5,904 17,771 On April 14, 2021, through September 7, 2021, the Company entered into twenty-nine subscription convertible note agreements totaling $ 1,943,000 74,500 1,149,500 100,000 (e) In September 2021, the Company entered into securities purchase agreements 2021, with two accredited investors, Talos Victory Fund, LLC, and Blue Lake Partners LLC, pursuant to which the Company issued 10% promissory notes with a maturity date of September 20, 2022, in the aggregate principal amount of $ 1,125,000 56,250 Interest at the annual rate of 10%. The notes carry original issue discount of $ 112,500 The Company is required to make interim payments to the holders in the aggregate amount of $225,000, on or before March 18, 2022, towards the repayment of the balance of the notes. The Company may prepay the principal sum under the notes then outstanding plus accrued and unpaid interest in full at any time without any prepayment premium; however, the Company is required to pay a minimum amount of the first 12 months of interest under the notes. The holders may convert the notes and exercise the warrants into the Company’s common stock (subject to contractual beneficial ownership limitations of 4.99%). The holders have the right to convert the notes at any time into shares of common stock at a conversion price of $5.00 per share; provided, however, if the Company consummates a so-called up-listing offering to a national exchange within 180 days after the closing date, then the Note conversion price shall adjust to equal 70% of the price per share of common stock in that offering. The warrants may also be exercised at any time from date of issuance over a period of five years at the exercise price then in effect. The initial warrant exercise price shall equal $10.00 per share; provided however, if the Company consummates the up-listing offering within the 180-day period noted above, then the exercise price shall adjust to equal 130% of the price per share in that offering. The warrants contain cashless exercise provisions. Both the notes and the warrants contain customary anti-dilution provisions which could cause an adjustment to the conversion price of the notes and the exercise price of the warrants. The note holders were repaid in full in December of 2021. In December of 2021, each note holder exercised their warrants into a total of 104,262 The notes provide that so long as the Company has any obligations under the Notes, the Company will not, among other things: · Incur or guarantee any indebtedness which is senior or equal to the notes. · Redeem or repurchase any shares of stock, warrants, rights or options without the holders’ consent. · Sell, lease or otherwise dispose of a significant portion of its assets without the holders’ consent. · The notes contain customary events of default relating to, among other things, payment defaults, breach of representations and warranties, and breach of provisions of the notes or securities purchase agreements. · In an event of default under the notes, which has not been cured within any applicable cure period, if any, the notes shall become immediately due and payable and the Company shall pay to the holders an amount equal to the principal sum then outstanding plus accrued interest, multiplied by 125%. Additionally, upon the occurrence of an event of default, additional interest will accrue from the date of the event of default at the rate equal to the lower of 16% per annum or the highest rate permitted by law. On the closing date of this financing, the holders delivered the net amount of $910,000 of the purchase price to the Company in exchange for the notes (which was net of the original issue discount and other fees, and expenses relate to this financing). On October 19, 2021, the Company filed a Form S-1 Registration Statement (File no. 333-260364) with the Securities and Exchange Commission to raise over $10 million dollars in an underwritten public offering. The next day the Company filed an application to list our common stock on the NASDAQ Capital Market under the symbol “MOBQ.” This offering was completed on December 13, 2021, and the Company retired the loans of, Talos Victory Fund, LLC and Blue Lake Partners LLC out of the gross proceeds it received of approximately $10.3 million. Also, all warrants issued to Talos and Blue Lake were converted on a cashless exercise basis into 24,692 24,692 In the fourth quarter of 2021, Business Capital Providers assigned one of its Merchant Agreements and related debt described above to non-affiliated third parties, which subsequently converted $ 89,100 13,103 312,500 30,000 (f) On September 13, 2019, Dr. Gene Salkind, who is a director of the Company, and an affiliate of Dr. Salkind subscribed for 15% Senior Secured Convertible Promissory Notes and loaned the Company an aggregate of $2,300,000. These notes were amended and restated on December 31, 2019, by Amended and Restated 15% Senior Secured Convertible Promissory Notes which deferred interest payments from the date of the original notes to December 31, 2020 and added an aggregate interim payment of $250,000 payable on December 31, 2020 that covered the deferred interest payments. These notes were again amended and restated on April 1, 2021, by the Second Amended and Restated 15% Senior Secured Convertible Promissory Notes which reflected an additional principal amount of $150,000 loaned by Dr. Salkind, and also amended the interim payment date to December 31, 2021, and the conversion price from $32 to $4 per share. The notes are secured by the assets of the Company and its subsidiaries. The total amount loaned under the notes, as amended and restated, including the principal amount and the interim payment amount is $2,700,000, which was paid down to $2,562,500 in December 2021. The notes, as amended and restated, bear annual interest at 15% which is payable monthly in cash or, at the Salkind lenders’ option, in shares of the Company’s common stock. The principal amount under the Notes is due on September 30, 2029, and the interim payment is payable on December 31, 2021, unless, in either case, earlier converted into shares of our common stock under the terms of the notes, as described below. The outstanding principal plus any accrued and unpaid interest, and the interim payment under the notes, are convertible into shares of Company common stock at a conversion price of $4 per share at any time, until the notes are fully converted, on the following terms: · The Salkind lenders may convert the notes at any time. · The Company may convert the notes at any time that the trailing thirty (30) day volume weighted average price per share (as more particularly described in the Notes) of the Company’s common stock is above $400 per share. The notes contain customary events of default, which, if uncured, entitle the holders to accelerate payment of the principal and all accrued and unpaid interest under their notes. In connection with the subscription of the notes and upon conversion thereof (if at all), the Company will issue to each Salkind lender a warrant to purchase one share of the Company’s common stock for every two shares of common stock issuable upon conversion of the Notes, at an exercise price of $48 per share. The warrant exercise price was amended to $4 per share. In the second quarter of 2020, we halted required interest payments under the September 2019 and June 30, 2021, Notes to Dr. Salkind and his affiliate due to economic hardships stemming from a downturn in our business and the related decline of our revenue resulting from the COVID 19 pandemic. In December 2021, we paid $400,000 of accrued interest owed to Dr. Salkind and an affiliated entity. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6: INCOME TAXES The provision for income taxes for the years ended December 31, 2021, and 2020 is summarized as follows: Provision for income taxes 2021 2020 Current: Federal $ – $ – State – – Total Current – – Deferred: Federal – – State – – Total Deferred $ – $ – The Company has federal net operating loss carryforwards (“NOL’s) of $ 197,813,237 and $ 178,447,460 , respectively, which will be available to reduce future taxable income. The tax effects of temporary differences which give rise to deferred tax assets (liabilities) are summarized as follows: Schedule of deferred tax assets YEAR ENDED DECEMBER 31, 2021 2020 Deferred Tax Assets $ (14,691,000 ) $ (12,528,000 ) Less: Valuation Allowance 14,691,000 12,528,000 Net Deferred Tax Asset $ – $ – A reconciliation of the federal statutory rate to the Company’s effective tax rate is as follows: Reconciliation of federal statutory rate YEARS ENDED DECEMBER 31, 2021 2020 Federal Statutory Tax Rate 21.00% 21.00% State Taxes, net of Federal benefit 5.00% 5.00% Change in Valuation Allowance (26.00% ) (26.00% ) Total Tax Expense 0.00% 0.00% |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY (DEFICIT) | NOTE 7: STOCKHOLDERS’ EQUITY (DEFICIT) Shares Issued for Services During 2020, the Company issued 38,125 547,451 265,000 1,158,026 Shares issued for interest: During the years ended December 31, 2021 and 2020, the Company did not issue any shares for interest. Shares issued for upon conversion of warrants, notes and/or preferred stock: During 2020, one holder of our Series E Preferred Stock converted 3,937 9,843 4,921 48.00 25,000 6,250 During 2020, 77,220 49,384 During 2020, one note holder converted $ 30,694 1,919 5,000 Stock and Loan Transactions for Cash On April 8, 2021, the Company sold 16,667 6.00 On April 14, 2021, the Company received a short-term $ 100,000 100,000 2,500 On April 16, 2021, the Company sold 41,667 6.00 On April 21, 2021, the $ 100,000 41,667 6.00 On April 30, 2021, the Company issued a two-month loan to an investor in exchange for $ 100,000 105,000 10,000 On May 10, 2021, the Company received a short-term $ 100,000 105,000 5,000 On May 17, 2021, the Company received a short-term $ 100,000 100,000 6,000 On May 18, 2021, the Company received a short-term $ 100,000 100,000 5,000 On May 19, 2021, the Company received a short-term $ 50,000 50,000 3,000 On May 24, 2021, the Company received a short-term $ 50,000 50,000 3,000 On June 9, 2021, the Company received short-term $ 400,000 420,000 20,000 10,000 On June 18, 2021, the Company received short-term $ 120,000 132,000 12,000 On July 8, 2021, the Company received short-term $ 80,000 85,000 5,000 On July 14, 2021, the Company received short-term $ 75,000 82,500 7,500 On July 15, 2021, the Company received short-term $ 150,000 155,000 5,000 On July 29, 2021, the Company received a short term note of $ 300,000 On August 11, 2021, the Company received short-term $ 25,000 1,250 On August 12, 2021, the Company received short-term $ 200,000 10,000 On August 16, 2021, the Company received short-term $ 50,000 On August 25, 2021, the Company received short-term $ 43,000 2,150 On September 2, 2021, the Company received short-term $ 25,000 On September 7, 2021, the Company received short-term $ 50,000 55,000 5,000 On September 10, 2021, the Company received short-term $ 25,000 On September 15, 2021, the Company received short-term $ 50,000 55,000 5,000 On September 16, 2021, the Company received short-term $ 50,000 55,000 5,000 On September 30, 2021, Dr. Salkind, Chairman of the Board and principal stockholder, converted his 1500 375,000 375,000 In the fourth quarter of 2021, Business Capital Providers assigned one of its Merchant Agreements and related debt described above to non-affiliated third parties, which subsequently converted $89,100 in outstanding indebtedness into 13,103 common shares pursuant to their terms. On October 19, 2021, the Company filed a Form S-1 Registration Statement (File no. 333-260364) with the Securities and Exchange Commission to raise over $10 million dollars in an underwritten public offering. The next day the Company filed an application to list our common stock on the NASDAQ Capital Market under the symbol “MOBQ.” This offering was completed on December 13, 2021 and the Company retired the loans of, Talos Victory Fund, LLC and Blue Lake Partners LLC out of the gross proceeds it received of approximately $10.3 million. All warrants issued to Talos and Blue Lake were converted on a cashless exercise basis into 24,692 common shares and 24,692 common shares, respectively. The Company issued 2,481,928 common shares and 2,807,937 warrants in connection with the public offering with the warrants exercisable at $4.98 per share. The Company also issued 5-year warrants to purchase 74,458 common shares to the Underwriters exercisable at $5.1875 per share. The following are outstanding commitments as of December 31, 2021: · $5,250,000 of the principal balance remaining due under the Second Amended AVNG Note is payable by the delivery of (i) 65,625 shares of the Company’s newly designated Class E Preferred Stock, which is convertible into 164,063 post-split shares the Company’s common stock, and (ii) common stock purchase warrants to purchase 82,032 shares of the Company’s common stock, at an exercise price of $48.00 post-split per share (the “AVNG Warrant”). In February of 2020 one Class E Preferred Stock shareholder converted 3,937 shares were exchanged for 9,348, post-split shares of the Company’s Common Stock. Consulting Agreements On May 28, 2021, the Company entered into a consulting agreement with Sterling Asset Management to provide business advisory services. The company will provide assistance and recommendations to help build strategic partnerships, to provide the Company with advice regarding revenue opportunities, mergers and acquisitions. The six- month engagement commenced on May 28, 2021. The consultant receives 2,500 restricted common shares each month of the agreement and $75,000 cash payments. On December 13, 2021, the Company entered into a consulting agreement with 622 Capital LLC to provide business advisory services over a term of six months. The consultant received 100,000 100,000 |
OPTIONS AND WARRANTS (restated)
OPTIONS AND WARRANTS (restated) | 12 Months Ended |
Dec. 31, 2021 | |
Options And Warrants | |
OPTIONS AND WARRANTS (restated) | NOTE 8: OPTIONS AND WARRANTS (restated) The Company’s results for the years ended December 31, 2021, and 2020 include employee share-based compensation expense totaling $ 4,635,224 993,512 The following table summarizes stock-based compensation expense for the years ended December 31, 2021, and 2020: Schedule of stock based compensation expense Years Ended December 31, 2021 2020 Employee stock-based compensation – option grants $ 4,635,224 $ 993,512 |
STOCK OPTION PLANS
STOCK OPTION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTION PLANS | NOTE 9: STOCK OPTION PLANS During Fiscal 2005, the Company established, and the stockholders approved, an Employee Benefit and Consulting Services Compensation Plan (the “2005 Plan”) for the granting of up to 5,000 post-split non-statutory and incentive stock options and stock awards to directors, officers, consultants and key employees of the Company. On June 9, 2005, the Board of Directors amended the Plan to increase the number of stock options and awards to be granted under the Plan to 10,000 post-split shares. During Fiscal 2009, the Company established a plan of long-term stock-based compensation incentives for selected Eligible Participants of the Company covering 10,0000 post-split shares. This plan was adopted by the Board of Directors and approved by stockholders in October 2009 and shall be known as the 2009 Employee Benefit and Consulting Services Compensation Plan (the “2009 Plan”). In September 2013, the Company’s stockholders approved an increase in the number of shares covered by the 2009 Plan to 25,000 post-split shares. In February 2015, the Board approved, subject to stockholder approval within one year, an increase in the number of shares under the 2009 Plan to 50,000 post-split shares; however, stockholder approval was not obtained within the requisite one year and the anticipated increase in the 2009 Plan was canceled. In the first quarter of 2016, the Board approved, and stockholders ratified a 2016 Employee Benefit and Consulting Services Compensation Plan covering 25,000 post-split shares (the “2016 Plan”) and approving moving all options which exceeded the 2009 Plan limits to the 2016 Plan. In December 2018, the Board of Directors adopted and in February 2019. the stockholders ratified the 2018 Employee Benefit and Consulting Services Compensation Plan covering 75,000 post-split shares (the “2018 Plan”). On April 2, 2019, the Board approved the “2019 Plan” identical to the 2018 Plan, except that the 2019 Plan covers 150,000 post-split shares. The 2019 Plan required stockholder approval by April 2, 2020, in order to be able to grant incentive stock options under the 2019 Plan. On October 13, 2021, the Board approved the “2021 Plan” identical to the 2018 Plan, except that the 2019 Plan covers 1,100,000 post-split shares. The 2005, 2009, 2016, 2018, 2019 and 2021 plans are collectively referred to as the “Plans.” All stock options under the Plans are granted at or above the fair market value of the common stock at the grant date. Employee and non-employee stock options vest over varying periods and generally expire either 5 or 10 years from the grant date. The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. For option grants, the Company will take into consideration payments subject to Assumptions used Years Ended 2021 2020 Expected volatility 116.39 592.89 Expected dividend yield – – Risk-free interest rate 1.28 0.74 Expected term (in years) 10.00 5.00 Schedule of options outstanding Shares Weighted Weighted Aggregate Intrinsic Outstanding, January 1, 2021 302,849 $ 45.85 4.65 $ – Granted 835,000 19.85 2.90 – Exercised – – – – Cancelled & Expired (1,940 ) – – – Outstanding, December 31, 2021 1,135,909 $ 16.69 8.39 $ – Options exercisable, December 31, 2021 1,124,619 $ 16.59 8.39 $ – The weighted-average grant-date fair value of options granted during the years ended December 31, 2021, and 2020 was $ 19.85 35.75 The aggregate intrinsic value of options outstanding and options exercisable on December 31, 2021, is calculated as the difference between the exercise price of the underlying options and the market price of the Company's common stock for the shares that had exercise prices, that were lower than the $ 2.13 As of December 31, 2021, the fair value of unamortized compensation cost related to unvested stock option awards is $ 545,458 The weighted average assumptions made in calculating the fair value of warrants granted during the years ended December 31, 2021, and 2020 are as follows: Assumptions used Years Ended December 31, 2021 2020 Expected volatility 175.52 449.47 Expected dividend yield – – Risk-free interest rate 1.14 0.91 Expected term (in years) 5.83 5.83 Schedule of warrants outstanding Shares Weighted Weighted Aggregate Intrinsic Outstanding, January 1, 2021 471,557 $ 52.52 6.31 $ – Granted 3,439,157 9.46 4.30 – Exercised (104,262 ) – – – Expired (6,250 ) – – – Outstanding, December 31, 2021 3,800,202 $ 15.19 4.68 $ – Warrants exercisable, December 31, 2021 3,800,202 $ 15.19 4.68 $ – |
EXECUTIVE COMPENSATION
EXECUTIVE COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Executive Compensation | |
EXECUTIVE COMPENSATION | Note 10: EXECUTIVE COMPENSATION Effect of Pandemic As a result of our declining revenue, during the COVID-19 pandemic, our management team decided it was necessary to reduce overhead In April of 2020, due to the COVID-19 pandemic all employees’ salaries were reduced by 40% and we terminated one employee. In October of 2020, the employees pay reduction was reduced to a 20% reduction through the completion of our December 2021 public offering. Several employees were laid-off or resigned, all travel and advertising were suspended, and office space rent was suspended, allowing the entire staff to work remotely. As of December 17, 2021, all employees’ salaries were restored to pre-pandemic levels. Employment Agreements of Executives Dean Julia Dean Julia is employed as the Company’s Chief Executive Officer under an employment agreement with an initial term of three years which commenced on April 2, 2019. The agreement automatically renewed for an additional two years in January 2020 since the Company failed to terminate the agreement at least 90 days before termination of the initial term. Mr. Julia’s annual base salary is $360,000. In addition to his base salary, Mr. Julia is entitled to a quarterly bonus of at least 1% of gross revenue for each completed fiscal quarter, so long as the Company’s gross revenue meets or exceeds 75% of management’s stated goal. The quarterly bonus may be paid either in cash, common stock or stock options, at Mr. Julia’s election. Should his employment agreement be terminated prior to the end of any fiscal year for any reason, other than for cause by the Company, a pro rata portion of the quarterly bonus shall be paid within 30 days of termination. The Company's board of directors will determine a revenue target each year for the purpose of calculating the quarterly bonus in that year. Mr. Julia also received a signing bonus of vested 10-year options to purchase 62,500 shares, exercisable at $60 per share. Additionally, he is also entitled to 10-year options to purchase an additional 12,500 shares of common stock, exercisable at $60 per share, annually on April 1 st Paul Bauersfeld Paul Bauersfeld is employed as the Company’s Chief Technology Officer under an at-will employment agreement which commenced on April 2, 2019. Mr. Bauersfeld’s monthly salary is $25,000. Mr. Bauersfeld is entitled to a quarterly bonus of at least 1% of gross revenue for each completed fiscal quarter, so long as the Company’s gross revenue meets or exceeds management’s stated goal. The quarterly bonus may be paid either in cash, common stock or stock options, at Mr. Bauersfeld’s election. Should his employment agreement be terminated prior to the end of any fiscal year for any reason, other than for cause by the Company, a pro rata portion of the quarterly bonus shall be paid within 30 days of termination. The Company's board of directors will determine a revenue target each year for the purpose of calculating the quarterly bonus in that year. Mr. Bauersfeld also received a signing bonus of 10-year options to purchase 25,000 shares, exercisable at $60 per share; 35% of which vested immediately, 35% of which vested on April 2, 2020, and 30% of which vested on April 2, 2021. Mr. Bauersfeld is entitled to participate in the Company’s health plans as well as indemnification by the Company to the fullest extent permitted by law, and the Company’s certificate of incorporation and bylaws. Mr. Bauersfeld’s employment agreement contains customary non-competition and non-solicitation of Company customers or employees’ provisions during the term of the agreement. Although Mr. Bauersfeld’s employment agreement is at-will, the Company may terminate Mr. Bauersfeld’s employment for cause. In the event Mr. Bauersfeld’s employment agreement is terminated other than for cause by the Company, the Company will pay Mr. Bauersfeld severance pay equal to three months of his salary. Sean Trepeta Sean Trepeta is employed as President of our wholly owned subsidiary, Mobiquity Networks, Inc. under an at-will employment agreement which commenced on April 2, 2019. Mr. Trepeta’s monthly salary is $20,000. Mr. Trepeta is entitled to a quarterly bonus of at least 1% of gross revenue for each completed fiscal quarter, so long as the Company’s gross revenue meets or exceeds management’s stated goal. The quarterly bonus may be paid either in cash, common stock, or stock options, at Mr. Trepeta’s election. Should his employment agreement be terminated prior to the end of any fiscal year for any reason, other than for cause by the Company, a pro rata portion of the quarterly bonus shall be paid within 30 days of termination. The Company's board of directors will determine a revenue target each year for the purpose of calculating the quarterly bonus in that year. Mr. Trepeta also received a signing bonus of 10-year options to purchase 25,000 shares, exercisable at $60 per share; 35% of which vested immediately, 35% of which vested on April 2, 2020, and 30% of which vested on April 2, 2021. Mr. Trepeta is entitled to participate in the Company’s health plans as well as indemnification by the Company to the fullest extent permitted by law, and the Company’s certificate of incorporation and bylaws. Mr. Trepeta’s employment agreement contains customary non-competition and non-solicitation of Company customers or employees’ provisions during the term of the agreement. Although Mr. Trepeta’s employment agreement is at-will, the Company may terminate Mr. Trepeta’s employment for cause. In the event Mr. Trepeta’s employment agreement is terminated other than for cause by the Company, the Company will pay Mr. Trepeta severance pay equal to three months of his salary. Deepankar Katyal Deepankar Katyal is employed as Chief Executive Officer of our wholly owned subsidiary, Advangelists, LLC under employment agreement with Advangelists with a term of three years which commenced on December 7, 2018. The agreement was amended on September 13, 2019. (See Note 12 below.) Mr. Katyal’s annual base salary is $400,000. Mr. Katyal’s employment agreement, as amended, also provides the following compensation: · a bonus, payable in cash or common stock of the Company, equal to 1% of the Company’s gross revenue for each month during the 2019 fiscal year, subject to certain revenue thresholds as set forth in the agreement. Those revenue thresholds were not attained, and this bonus was not earned; · commissions equal to 10% of the net revenues derived from all New Katyal Managed Accounts (as defined in the agreement – being accounts directly introduced by Mr. Katyal or assigned to Employee in writing by the Manager of the Company); · options to purchase 37,500 shares of the Company’s common stock at an exercise price of $36.00 per share, of which 25,000 vested on September 13, 2019, the date Mr. Katyal’s employment agreement was amended, and 12,500 vested on September 13, 2020: and · one share of Company Series B Preferred Stock which was issued to Mr. Katyal. The Series B Preferred Stock, as a class, provided cash dividend rights, payable in cash, to the holders thereof in an aggregate amount equivalent to 10% of the annual gross revenue of Advangelists or the Company, whichever is higher, up to a maximum aggregate annual amount of $1,200,000, for each of its 2019 and 2020 fiscal years. As a holder of 50% of the Series B Preferred Stock, the maximum amount of annual dividends that Mr. Katyal would be entitled to $600,000. The Series B Preferred Stock rights, privileges, preferences, and restrictions was to terminate by its terms as of December 31, 2020; and, immediately upon declaration and payment of the dividend in respect of Mobiquity's 2020 fiscal year, Mobiquity was to withdraw such class from its authorized capital. The Series B Preferred Stock was subject to cancellation if Mr. Katyal terminated his employment without good reason or the Company terminated his employment for cause. Mr. Katyal did not receive any Series B Preferred Stock dividends and the Series B Preferred Stock was redeemed by the Company from Mr. Katyal in consideration for entering into the amendment of his employment agreement on September 13, 2019, and for no other consideration. During the term of the employment agreement, Mr. Katyal is entitled to a monthly allowance of up to $550 per month to cover lease or purchase finance costs of an automobile. Mr. Katyal’s employment agreement provides for indemnification by the Company to the fullest extent permitted by the Company’s certificate of incorporation and bylaws, as well as participation in all benefit plans, programs and perquisites as are generally provided by Advangelists to its employees, including medical, dental, life insurance, disability and 401(k) participation. Mr. Katyal’s employment agreement contains customary non-solicitation of Company customers or employees’ provisions during the term of the agreement and for one year after termination. The agreement provides for termination by Advangelists for cause upon 30 days’ prior written notice: and without cause after 60 days’ prior written notice. The employment agreement terminates automatically upon Mr. Katyal’s death, and it may also be terminated by Advangelists if Mr. Katyal is disabled for more than six consecutive months in any 12-month period—disability being the inability to substantially perform Mr. Katyal's duties and responsibilities by reason of mental or physical illness or injury. Mr. Katyal is entitled to terminate the agreement for “good reason”. If Mr. Katyal is terminated by Advangelists for cause, Advangelists is obligated only to pay Mr. Katyal amounts of base salary and expense reimbursements that were due or accrued prior to the termination date. If Mr. Katyal is terminated by Advangelists without cause, and provided Mr. Katyal is not in breach under the agreement, Advangelists is obligated to pay Mr. Katyal his compensation and expense reimbursements that would be payable to Mr. Katyal for the remainder of the contractual employment term had Mr. Katyal remained an employee. If Mr. Katyal’s employment is terminated as a result of his death, Advangelists is obligated to pay Mr. Katyal his salary though the date of termination, and his other compensation for the remainder of the contractual employment term had Mr. Katyal remained an employee. If Mr. Katyal’s employment is terminated as a result of his disability, provided Mr. Katyal provides a general release, Advangelists is obligated to pay Mr. Katyal his salary though the date of termination, and his other compensation for the remainder of the contractual employment term had Mr. Katyal remained an employee. If Mr. Katyal terminates his employment for good reason, and provided Mr. Katyal provides a general release, Advangelists is obligated to pay Mr. Katyal his compensation and expense reimbursements that would be payable to Mr. Katyal for the remainder of the contractual employment term had Mr. Katyal remained an employee. Mr. Kaytal’s employment agreement provides for assignment of ownership rights regarding intellectual property created by Mr. Katyal relating to the Company’s business. Sean McDonnell Sean McDonnell is employed as the Company’s Chief Executive Officer on a non-full-time basis as an employee at-will with no employment agreement. He has a monthly base salary of $11,000 and he is eligible to receive options and other bonuses at the discretion of the board. |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | NOTE 11: LITIGATION We are not a party to any pending material legal proceedings. The following matters were settled in the past two fiscal years. Washington Prime Group, Inc. (“WPG”), a successor in interest to Simon Property Group, L.P., commenced an action in the Marion Superior Court, County of Marion, State of Indiana against the Company in February 2020 alleging default on 36 commercial leases which the Company had entered into in 36 separate shopping mall locations across the United States for the placement of Mobiquity’s Bluetooth messaging system equipment in the shopping malls to send advertisements through to shoppers’ phones as they walked through mall common areas. WPG alleged damages from unpaid rent of $892,332. WPG sought a judgment from the court to collect the claimed unpaid rent plus attorneys’ fees and other costs of collection. The Company disputed the claim. On September 18, 2020, the parties entered into a settlement agreement with respect to this lawsuit. Under the settlement agreement, Mobiquity paid WPG $100,000.00 in five $20,000 monthly installments ending in January 2021 and mutual general releases were exchanged. In December 2019, Carter, Deluca & Farrell LP, a law firm, commenced an action in the Supreme Court of New York, County of Nassau, against the Company seeking $113,654 in past due legal fees allegedly owed. The Company disputed the amount owed to that firm. On March 13, 2021 the Company entered into a settlement agreement with the law firm and paid them $60,000 to settle the lawsuit. In July 2020, Fyber Monetization, an Israeli company in the business of digital advertising, commenced an action against the Company’s wholly owned subsidiary Advangelists LLC in the Magistrate’s Court in Tel Aviv, Israel. In its statement of claim, Fyber alleged that Advangelists owes Fyber license fees of $584,945 invoiced in June through November 3, of 2019 under a February 1, 2017, license agreement for the use of Fyber’s RTB technology and e-commerce platform with connects digital advertising media buyers and media sellers. In March 2022, this lawsuit was settled with the Company paying $ 120,000 In October 2020, FunCorp Limited, a Cypriot company which owns and operates social networking websites and mobile applications, commenced an action against the Company’s wholly owned subsidiary Advangelists LLC in Superior Court, State of Washington, County of King alleging Advangelists owed FunCorp for unpaid amounts due under an insertion order for placement of Advangelists’ advertisements on FunCorp’s iFunny website totaling $42,464 plus legal fees. Advangelists disputed the claim. In September 2021 the action was settled in payment of $ 44,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12: SUBSEQUENT EVENTS On January 4, 2022, Don Walker (“Trey”) Barrett III accepted the position of Chief Operations and Strategy Officer of Mobiquity Technologies, Inc. The Company entered into an Employment Agreement with Mr. Barrett, effective as of January 1, 2022, for an initial term of two years, which may be renewed for successive one-year terms, with an annual salary of $275,000. Mr. Barrett will be entitled to an annual bonus of up to 100% of his annual salary each year based on the attainment of performance standards, targets or goals which will be mutually agreed upon by the Company and Mr. Barrett. Mr. Barrett was granted non-statutory options to purchase up to 150,000 shares of common stock, at a price of $4.565 per share out of the Company’s 2021 Employee Benefit and Consulting Services Compensation Plan. The options will vest in three substantially equal annual installments of 50,000 shares each on the first, second and third anniversaries of the date of the Employment Agreement provided Mr. Barrett is employed by the Company on those dates, subject to acceleration if Mr. Barrett is terminated without cause, he resigns for good reason, or certain change of control events occur. Additionally, Mr. Barrett was granted 25,000 shares of restricted stock as a signing bonus pursuant to his Employment Agreement, and not out of any other plan, which will vest in full on the six-month anniversary of the date of his Employment Agreement provided he is employed by the Corporation on that date. Mr. Barrett’s employment Agreement contains customary provisions permitting the Company to terminate Mr. Barrett’s employment for cause or Mr. Barrett’s disability and entitling Mr. Barrett to terminate his employment for good reason, before the end of the contractual employment period. Under the Employment Agreement, Mr. Barrett would be entitled to payment of an amount equivalent to his annual salary for a period of 12 months after termination if his employment is terminated by the Company without cause or due to his disability, or Mr. Barrett terminates his employment for good reason. Additionally, if Mr. Barrett’s employment is not renewed at the end of the initial employment period or any renewal period, Mr. Barrett would be entitled to payment of an amount equivalent to his annual salary for a period of nine months after termination. On January 4, 2022, the Company entered into a new one-year employment agreement with Deepankar Katyal. His compensation and benefits under the new contract have not changed from the Agreement summarized in Note 10 above. On March 18, 2022, the Company terminated the Employment Agreement of Don (Trey) W. Barrett III for cause, and it will not incur any material early termination penalties (due to the fact the termination was for cause) On March 17, 2022, Anthony Iacovone resigned from the Company’s board of directors for personal reasons. On March 18, 2022, Anne S. Provost was elected to the board of directors to serve as an independent director and as a financial expert. Ms. Provost was also nominated to replace Mr. Iacovone on all three board committees, which consist of an Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee. On March 18, 2022, the board of directors approved the payment of $1,000 per month to be paid to each member of the board of directors for serving on the board and any committees thereof. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS The ATOS platform: · creates an automated marketplace of advertisers and publishers on digital media outlets to host online auctions to facilitate the sale of ad time slots (known as digital real estate) targeted at users while engaged on their connected TV, computer or mobile device, and · gives advertisers the capability to understand and interact with their audiences and engage them in a meaningful way by using ads in both image and video formats (known as rich media) to increase their customer base and foot traffic to their physical locations. Advangelists’ marketplace engages with approximately 10 billion advertisement opportunities per day. Our sales and marketing strategy is focused on creating a de-fragmented operating system that makes it considerably more efficient and effective for advertisers and publishers to transact with each other. Our goal is to create a standardized and transparent medium. Advangelists' technology is proprietary and has been developed internally. We own our technology. Risks Related to Our Financial Results and Financing Plans Management has plans to address the Company’s financial situation as follows: In the near term, management plans to continue to focus on raising the funds necessary to implement the Company’s business plan related to technology. Management will continue to seek out equity and/or debt financing to obtain the capital required to meet the Company’s financial obligations. There is no assurance, however, that lenders and investors will continue to advance capital to the Company or that the new business operations will be profitable. In the long term, management believes that the Company’s projects and initiatives will be successful and will provide cash flow to the Company that will be used to finance the Company’s future growth. However, there can be no assurances that the Company’s efforts to raise equity and debt at acceptable terms or that the planned activities will be successful, or that the Company will ultimately attain profitability. The Company’s long-term viability depends on its ability to obtain adequate sources of debt or equity funding to meet current commitments and fund the continuation of its business operations, and the ability of the Company to achieve adequate profitability and cash flows from operations to sustain its operations. Related Parties Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company. We disclose related party transactions that are outside of normal compensatory agreements, such as salaries or board of director fees. We consider the following individuals / companies to be related parties as of December 31, 2021: Dean Julia - Principal Executive Officer President and Director Sean McDonnell - Chief Financial Officer Deepanker Katyal, Chief Executive Officer of Advangelists Sean Trepeta – President of Mobiquity Networks and Secretary of the Company Dr. Gene Salkind – Chairman of the Board of Directors Michael Wright – Board of Directors Anthony Iacovone – Board of Directors Peter Zurkow – Board of Directors |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION |
ESTIMATES | ESTIMATES |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company’s customer base and their dispersion across geographic areas principally within the United States. The Company routinely addresses the financial strength of its customers and, consequently, believes that its receivable credit risk exposure is limited. Our current receivables at December 31, 2021 consist of 55 58 The Company places its temporary cash investments with high credit quality financial institutions. At times, the Company maintains bank account balances which exceed FDIC limits. As of December 31, 2021, and December 31, 2020, the Company exceeded FDIC limits by $ 5,103,273 114,986 |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company accounts for revenue recognition in accordance with accounting guidance codified as FASB ASC 606 “Revenue from Contracts with Customers” (“ASC 606”), as amended, regarding revenue from contracts with customers. Under the standard an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. Under ASC 606, revenue is recognized at the same point in time, upon delivery of services, under both ASC Topic 605 and Topic 606, as applicable under the terms of the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company’s rights to payments for services transferred to customers are conditional only on the passage of time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 90 days. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS 820,990 386,600 |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT |
LONG LIVED ASSETS | LONG LIVED ASSETS Property, Plant and Equipment 3,600,000 4,000,000 Transactions with major customers During the year ended December 31, 2021, four customers accounted for approximately 31 42 During the year ended December 31, 2021, five customers accounted for approximately 55 58 |
ADVERTISING COSTS | ADVERTISING COSTS 1,454 1,400 |
ACCOUNTING FOR STOCK BASED COMPENSATION | ACCOUNTING FOR STOCK BASED COMPENSATION |
OFFERING COSTS (RESTATED) | OFFERING COSTS (RESTATED) |
BENEFICIAL CONVERSION FEATURES | BENEFICIAL CONVERSION FEATURES |
INCOME TAXES | INCOME TAXES |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS We adopted the lease standard ACS 842 effective January 1, 2019, and have elected to use January 1, 2019, as our date of initial application. Consequently, financial information will not be updated, and disclosures required under the new standard will not be provided for periods presented before January 1, 2019, as these prior periods conform to the Accounting Standards Codification 840. We elected the package of practical expedients permitted under the transition guidance within the new standard. By adopting these practical expedients, we were not required to reassess (1) whether an existing contract meets the definition of a lease; (2) the lease classification for existing leases; or (3) costs previously capitalized as initial direct costs. As of December 31, 2021, we are not a lessor or lessee under any lease arrangements. We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or result of operations. |
NET LOSS PER SHARE | NET LOSS PER SHARE Basic net loss per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options and warrants. The number of common shares potentially issuable upon the exercise of certain options and warrants that were excluded from the diluted loss per common share calculation was approximately 4,925,000 |
RECLASSIFICATIONS (RESTATED) | RECLASSIFICATIONS (RESTATED) Certain prior year amounts have been reclassified for consistency with the current year presentation due to the restatement. |
RESTATEMENT (Tables)
RESTATEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restatement | |
Schedule of condensed financial statements | Schedule of condensed financial statements As of December 31, 2020 Balance Sheet Data As Previously Reported Adjustment As Restated Additional paid in capital $ 184,586,420 $ (2,057,415 ) $ 182,529,005 Accumulated deficit $ (186,168,926 ) $ 2,057,415 $ (184,111,511 ) Total Stockholders' Equity $ 2,886,685 $ – $ 2,886,685 Year Ended December 31, 2020 Statement of Operations Data As Previously Reported Adjustment As Restated General and administrative $ 9,204,465 $ (353,536 ) $ 8,850,929 Total operating expenses $ 9,204,465 $ (353,536 ) $ 8,850,929 Loss from operations $ (7,381,100 ) $ 353,536 $ (7,027,564 ) Proceeds from sale of warrants $ 662,758 $ (662,758 ) $ – Warrant income (expense) $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (2,996,897 ) $ 2,996,897 $ – Unrealized gain (loss) on investments $ – $ (3,009 ) $ (3,009 ) Total other income (expense) - net $ (7,648,295 ) $ 2,930,024 $ (4,718,271 ) Net loss $ (15,032,404 ) $ 3,286,569 $ (11,745,835 ) Net loss per share - basic and diluted $ (5.92 ) $ (4.63 ) Year Ended December 31, 2020 Cash Flow Data As Previously Reported Adjustment As Restated Net loss $ (15,032,404 ) $ 3,286,569 $ (11,745,835 ) Stock-based compensation $ 1,347,048 $ (353,536 ) $ 993,512 Warrant expense $ 1,472,368 $ (1,472,368 ) $ – Loss on conversion of debt to common stock $ 30,694 $ (30,694 ) $ – Accounts payable and accrued expenses $ (778,375 ) $ 4 $ (778,371 ) Net cash used in operating activities $ (4,716,739 ) $ 1,429,975 $ (3,286,764 ) Proceeds from exercise of warrants $ – $ 662,754 $ 662,754 Repayments on notes payable $ (520,809 ) $ 30,694 $ (490,115 ) Common stock issued for cash, net $ 3,600,423 $ (2,123,423 ) $ 1,477,000 Net cash provided by financing activities $ 4,085,456 $ (1,429,975 ) $ 2,655,481 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,694 $ 30,694 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 |
Schedule of balance sheet data | Schedule of balance sheet data As of March 31, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 178,560,444 $ 1,604,482 $ 180,164,926 Accumulated deficit $ (173,572,315 ) $ (1,604,482 ) $ (175,176,797 ) Total Stockholders' Equity $ 9,303,275 $ – $ 9,303,275 As of June 30, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 180,625,860 $ (68,575 ) $ 180,557,285 Accumulated deficit $ (178,155,775 ) $ 68,575 $ (178,087,200 ) Total Stockholders' Equity $ 6,939,234 $ – $ 6,939,234 As of September 30, 2020 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 184,231,046 $ (2,101,143 ) $ 182,129,903 Accumulated deficit $ (182,116,945 ) $ 2,101,143 $ (180,015,802 ) Total Stockholders' Equity $ 6,583,288 $ – $ 6,583,288 As of March 31, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 185,234,064 $ 1,932,033 $ 183,302,031 Accumulated deficit $ (188,398,702 ) $ (1,932,033 ) $ (186,466,669 ) Total Stockholders' Equity $ 1,304,563 $ – $ 1,304,563 As of June 30, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 187,117,663 $ (2,652,133 ) $ 184,465,530 Accumulated deficit $ (190,992,325 ) $ 2,652,133 $ (188,340,192 ) Total Stockholders' Equity $ 594,559 $ – $ 594,559 As of September 30, 2021 Balance Sheet Data (Unaudited) As Previously Reported Adjustment As Restated Additional paid in capital $ 189,498,056 $ (3,088,538 ) $ 186,409,518 Accumulated deficit $ (194,904,072 ) $ 3,088,538 $ (191,815,534 ) Total Stockholders' Equity (Deficit) $ (951,735 ) $ – $ (951,735 ) |
Schedule of operations | Schedule of operations Three Months Ended March 31, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Selling, general and administrative $ 1,485,080 $ (80,750 ) $ 1,404,330 Stock-based compensation $ – $ 490,468 $ 490,468 Total operating expenses $ 2,381,928 $ 409,718 $ 2,791,646 Loss from operations $ (2,225,740 ) $ (409,718 ) $ (2,635,458 ) Loss on sale of company stock $ (34,390 ) $ 34,390 $ – Unrealized gain (loss) on investments $ – $ (3,038 ) $ (3,038 ) Total other income (expense) - net $ (207,015 ) $ 31,352 $ (175,663 ) Net loss $ (2,435,793 ) $ (375,328 ) $ (2,811,121 ) Net loss per share - basic and diluted $ (0.00 ) $ (0.00 ) Three Months Ended June 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,276,870 $ (1,015,388 ) $ 261,482 Total operating expenses $ 3,553,285 $ (1,015,388 ) $ 2,537,897 Loss from operations $ (3,767,016 ) $ 1,015,388 $ (2,751,628 ) Warrant expense $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (58,775 ) $ 58,775 $ – Unrealized gain (loss) on investments $ – $ 28 $ 28 Total other income (expense) - net $ (816,472 ) $ 657,697 $ (158,775 ) Net loss $ (4,583,460 ) $ 1,673,057 $ (2,910,403 ) Net loss per share - basic and diluted $ (0.00 ) $ (0.00 ) Six Months Ended June 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Selling, general and administrative $ 3,149,691 $ (80,750 ) $ 3,068,941 Stock-based compensation $ 1,276,870 $ (524,920 ) $ 751,950 Total operating expenses $ 5,935,213 $ (605,670 ) $ 5,329,543 Loss from operations $ (5,992,756 ) $ 605,670 $ (5,387,086 ) Warrant expense $ (598,894 ) $ 598,894 $ – Loss on sale of company stock $ (93,165 ) $ 93,165 $ – Unrealized gain (loss) on investments $ – $ (3,010 ) $ (3,010 ) Total other income (expense) - net $ (1,023,487 ) $ 689,049 $ (334,438 ) Net loss $ (7,019,253 ) $ 1,297,729 $ (5,721,524 ) Net loss per share - basic and diluted $ (0.01 ) $ (0.01 ) Three Months Ended September 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 54,589 $ 126,067 $ 180,656 Total operating expenses $ 2,078,382 $ 126,067 $ 2,204,449 Loss from operations $ (1,601,465 ) $ (126,067 ) $ (1,727,532 ) Warrant income (expense) $ 662,758 $ (662,758 ) $ – Loss on sale of company stock $ (2,821,393 ) $ 2,821,393 $ – Unrealized gain (loss) on investments $ – $ (23 ) $ (23 ) Total other income (expense) - net $ (2,359,682 ) $ 2,158,612 $ (201,070 ) Net loss $ (3,961,170 ) $ 2,032,568 $ (1,928,602 ) Net loss per share - basic and diluted $ (1.43 ) $ (0.70 ) Nine Months Ended September 30, 2020 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,331,459 $ (479,603 ) $ 851,856 Total operating expenses $ 8,013,595 $ (479,603 ) $ 7,533,992 Loss from operations $ (7,594,221 ) $ 479,603 $ (7,114,618 ) Warrant income (expense) $ 63,864 $ (63,864 ) $ – Loss on sale of company stock $ (2,914,558 ) $ 2,914,558 $ – Unrealized gain (loss) on investments $ – $ (3,033 ) $ (3,033 ) Total other income (expense) - net $ (3,383,169 ) $ 2,847,661 $ (535,508 ) Net loss $ (10,980,423 ) $ 3,330,297 $ (7,650,126 ) Net loss per share - basic and diluted $ (3.99 ) $ (2.78 ) Three Months Ended March 31, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 16,839 $ 125,382 $ 142,221 Total operating expenses $ 1,626,394 $ 125,382 $ 1,751,776 Loss from operations $ (2,041,801 ) $ (125,382 ) $ (2,167,183 ) Unrealized gain (loss) on investments $ – $ 40 $ 40 Total other income (expense) - net $ (188,015 ) $ 40 $ (187,975 ) Net loss $ (2,229,776 ) $ (125,382 ) $ (2,355,158 ) Net loss per share - basic and diluted $ (0.78 ) $ (0.82 ) Three Months Ended June 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 555,892 $ (500,500 ) $ 55,392 Total operating expenses $ 2,047,428 $ (500,500 ) $ 1,546,928 Loss from operations $ (2,156,513 ) $ 500,500 $ (1,656,013 ) Interest expense $ (215,162 ) $ (310,150 ) $ (525,312 ) Original issue discount $ (110,000 ) $ 110,000 $ – Loss on sale of company stock $ (419,750 ) $ 419,750 $ – Unrealized gain (loss) on investments $ – $ (40 ) $ (40 ) Loan forgiveness - SBA $ – $ 265,842 $ 265,842 Total other income (expense) - net $ (744,912 ) $ 485,402 $ (259,510 ) Net loss $ (2,593,623 ) $ 720,100 $ (1,873,523 ) Net loss per share - basic and diluted $ (0.87 ) $ (0.63 ) Six Months Ended June 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 572,731 $ (375,118 ) $ 197,613 Total operating expenses $ 3,631,822 $ (375,118 ) $ 3,256,704 Loss from operations $ (4,156,314 ) $ 375,118 $ (3,781,196 ) Interest expense $ (403,177 ) $ (310,150 ) $ (713,327 ) Original issue discount $ (110,000 ) $ 110,000 $ – Loan forgiveness - SBA $ – $ 265,842 $ 265,842 Loss on sale of company stock $ (419,750 ) $ 419,750 $ – Total other income (expense) - net $ (932,927 ) $ 485,442 $ (447,485 ) Net loss $ (4,823,399 ) $ 594,718 $ (4,228,681 ) Net loss per share - basic and diluted $ (1.65 ) $ (1.45 ) Three Months Ended September 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Interest expense $ (203,436 ) $ (605,880 ) $ (809,316 ) Original issue discount $ (605,880 ) $ 605,880 $ – Loss on sale of company stock $ (436,405 ) $ 436,405 $ – Total other income (expense) - net $ (1,245,703 ) $ 436,405 $ (809,298 ) Net loss $ (3,911,747 ) $ 436,405 $ (3,475,342 ) Net loss per share - basic and diluted $ (1.22 ) $ (1.09 ) Nine Months Ended September 30, 2021 Statement of Operations Data (Unaudited) As Previously Reported Adjustment As Restated Stock-based compensation $ 1,289,899 $ (375,118 ) $ 914,781 Total operating expenses $ 6,179,909 $ (375,118 ) $ 5,804,791 Loss from operations $ (6,822,358 ) $ 375,118 $ (6,447,240 ) Interest expense $ (606,613 ) $ (916,030 ) $ (1,522,643 ) Original issue discount $ (715,880 ) $ 715,880 $ – Loss on sale of company stock $ (856,155 ) $ 856,155 $ – Total other income (expense) - net $ (2,178,630 ) $ 656,005 $ (1,522,625 ) Net loss $ (8,735,146 ) $ 1,031,123 $ (7,704,023 ) Net loss per share - basic and diluted $ (2.89 ) $ (2.54 ) |
Schedule of cash flow | Schedule of cash flow Three Months Ended March 31, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (2,435,793 ) $ (375,328 ) $ (2,811,121 ) Stock-based compensation $ – $ 490,468 $ 490,468 Warrant expense $ 403,268 $ (403,268 ) $ – Accounts payable and accrued expenses $ (639,237 ) $ (103,074 ) $ (742,311 ) Accrued expenses and other current liabilities $ (93,063 ) $ 93,063 $ – Accrued interest $ (10,011 ) $ 10,011 $ – Net cash used in operating activities $ (836,696 ) $ (288,128 ) $ (1,124,824 ) Series E preferred stock exchange for common stock $ (314,960 ) $ 314,960 $ – Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash used in investing activities $ (284,265 ) $ 284,265 $ – Preferred stock converted to common stock $ 314,960 $ (314,960 ) $ – Common stock issued under exercise of warrants $ – $ 288,128 $ 288,128 Cash paid on bank notes $ (263,173 ) $ 30,695 $ (232,478 ) Net cash provided by financing activities $ 301,787 $ 3,863 $ 305,650 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Six Months Ended June 30, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (7,019,253 ) $ 1,297,729 $ (5,721,524 ) Stock-based compensation $ 1,276,870 $ (524,920 ) $ 751,950 Warrant expense $ 1,354,817 $ (1,354,817 ) $ – Accounts payable and accrued expenses $ (625,562 ) $ (4,370 ) $ (629,932 ) Accrued expenses and other current liabilities $ (89,671 ) $ 89,671 $ – Accrued interest $ 85,301 $ (85,301 ) $ – Net cash used in operating activities $ (1,116,388 ) $ (582,008 ) $ (1,698,396 ) Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash provided by investing activities $ 30,695 $ (30,695 ) $ – Common stock issued under exercise of warrants $ – $ 582,008 $ 582,008 Cash paid on bank notes $ (462,694 ) $ 30,695 $ (431,999 ) Net cash provided by financing activities $ 282,694 $ 612,703 $ 895,397 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Nine Months Ended September 30, 2020 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (10,980,423 ) $ 3,330,297 $ (7,650,126 ) Stock-based compensation $ 1,331,459 $ (479,603 ) $ 851,856 Warrant expense $ 1,472,368 $ (1,472,368 ) $ – Accounts payable and accrued expenses $ (629,419 ) $ 86,203 $ (543,216 ) Accrued expenses and other current liabilities $ (95,310 ) $ 95,310 $ – Accrued interest $ 181,513 $ (181,513 ) $ – Net cash used in operating activities $ (4,490,623 ) $ 1,378,326 $ (3,112,297 ) Common stock issued for cash, net $ 3,338,084 $ (3,338,084 ) $ – Note conversion to common stock $ 30,695 $ (30,695 ) $ – Net cash provided by (used in) investing activities $ 3,362,180 $ (3,368,779 ) $ (6,599 ) Common stock issued under exercise of warrants $ – $ 662,758 $ 662,758 Common stock issued for cash, net $ – $ 1,297,000 $ 1,297,000 Cash paid on bank notes $ (490,739 ) $ 30,695 $ (460,044 ) Net cash provided by financing activities $ 425,103 $ 1,990,453 $ 2,415,556 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ – $ 30,695 $ 30,695 Conversion of Series E preferred stock to shares of common stock $ – $ 314,960 $ 314,960 Three Months Ended March 31, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (2,229,776 ) $ (125,382 ) $ (2,355,158 ) Stock-based compensation $ 16,839 $ 125,382 $ 142,221 Accounts payable and accrued expenses $ (275,686 ) $ 99,552 $ (176,134 ) Accrued expenses and other current liabilities $ 4,715 $ (4,715 ) $ – Accrued interest $ 94,837 $ (94,837 ) $ – Net cash used in operating activities $ (1,079,181 ) $ – $ (1,079,181 ) Common stock issued for cash, net $ 548,990 $ (548,990 ) $ – Net cash provided by investing activities $ 548,990 $ (548,990 ) $ – Common stock issued for cash, net $ – $ 548,990 $ 548,990 Net cash provided by financing activities $ 140,016 $ 548,990 $ 689,006 Six Months Ended June 30, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (4,823,399 ) $ 594,718 $ (4,228,681 ) Stock-based compensation $ 572,731 $ (375,118 ) $ 197,613 Stock issued with short-term convertible notes $ – $ 310,150 Gain on forgiveness of debt $ – $ (265,842 ) $ (265,842 ) Accounts payable and accrued expenses $ (519,474 ) $ 176,339 $ (343,135 ) Accrued expenses and other current liabilities $ (19,473 ) $ 19,473 $ – Accrued interest $ 195,810 $ (195,810 ) $ – Net cash used in operating activities $ (2,712,694 ) $ 263,910 $ (2,448,784 ) Common stock issued for cash, net $ 898,990 $ (898,990 ) $ – Original issue discount shares $ 268,150 $ (268,150 ) $ – Note conversion to common stock $ 671,602 $ (671,602 ) $ – Net cash provided by investing activities $ 1,838,742 $ (1,838,742 ) $ – Common stock issued for cash, net $ – $ 898,990 $ 898,990 Proceeds from issuance of notes payable, net $ 1,310,000 $ 510,000 $ 1,820,000 Gain on forgiveness of debt $ (265,842 ) $ 265,842 $ – Repayment of notes payable $ (598,816 ) $ (100,000 ) $ (698,816 ) Net cash provided by financing activities $ 445,342 $ 1,574,832 $ 2,020,174 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ 419,750 $ (419,750 ) $ – Common stock issued for services $ 110,000 $ (110,000 ) $ – Nine Months Ended September 30, 2021 Cash Flow Data (Unaudited) As Previously Reported Adjustment As Restated Net loss $ (8,735,146 ) $ 1,031,123 $ (7,704,023 ) Stock-based compensation $ 1,289,899 $ (375,118 ) $ 914,781 Stock issued with short-term convertible notes $ – $ 1,753,032 $ 1,753,032 Gain on forgiveness of debt $ – $ (265,842 ) $ (265,842 ) Accounts payable and accrued expenses $ (474,650 ) $ 273,037 $ (201,613 ) Accrued expenses and other current liabilities $ (28,882 ) $ 28,882 $ – Accrued interest $ 301,919 $ (301,919 ) $ – Net cash used in operating activities $ (5,060,535 ) $ 2,143,195 $ (2,917,340 ) Common stock issued for cash, net $ 898,990 $ (898,990 ) $ – Original issue discount shares $ 724,031 $ (724,031 ) $ – Note conversion to common stock $ 1,810,506 $ (1,810,506 ) $ – Net cash provided by investing activities $ 3,433,527 $ (3,433,527 ) $ – Common stock issued for cash, net $ – $ 898,990 $ 898,990 Proceeds from issuance of notes payable, net $ 2,643,000 $ 225,500 $ 2,868,500 Gain on forgiveness of debt $ (265,842 ) $ 265,842 $ – Repayment of notes payable $ (616,918 ) $ (100,000 ) $ (716,918 ) Net cash provided by financing activities $ 1,760,240 $ 1,290,332 $ 3,050,572 Supplemental disclosure of non-cash investing and financing activities Common stock issued for conversion of convertible notes $ 419,750 $ (419,750 ) $ – |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets Useful Lives December 30, 2021 December 31, 2020 Customer relationships 5 $ 3,003,676 $ 3,003,676 ATOS Platform 5 2,400,000 6,000,000 5,403,676 9,003,676 Less accumulated amortization (4,156,657 ) (3,355,922 ) Net carrying value $ 1,247,019 $ 5,647,754 |
Schedule of future accumulated amortization schedule | Schedule of future accumulated amortization schedule 2022 $ 603,976 2023 572,584 2024 70,459 Total $ 1,247,019 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Notes payable: | Summary of Notes payable: Summary of Notes payable: December 31, December 31, Mob-Fox US LLC (b) $ – $ 30,000 Dr. Salkind, et al (f) 2,562,500 2,550,000 Small Business Administration (a) 150,000 415,842 Subscription Agreements (d) 250,000 – Blue Lake Partners LLC Talos Victory Fund LLC (e) – – Business Capital Providers (c) 156,504 355,441 Total Debt 3,119,004 3,351,283 Current portion of debt 656,504 901,283 Long-term portion of debt $ 2,462,500 $ 2,450,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | Provision for income taxes 2021 2020 Current: Federal $ – $ – State – – Total Current – – Deferred: Federal – – State – – Total Deferred $ – $ – |
Schedule of deferred tax assets | Schedule of deferred tax assets YEAR ENDED DECEMBER 31, 2021 2020 Deferred Tax Assets $ (14,691,000 ) $ (12,528,000 ) Less: Valuation Allowance 14,691,000 12,528,000 Net Deferred Tax Asset $ – $ – |
Reconciliation of federal statutory rate | Reconciliation of federal statutory rate YEARS ENDED DECEMBER 31, 2021 2020 Federal Statutory Tax Rate 21.00% 21.00% State Taxes, net of Federal benefit 5.00% 5.00% Change in Valuation Allowance (26.00% ) (26.00% ) Total Tax Expense 0.00% 0.00% |
OPTIONS AND WARRANTS (restate_2
OPTIONS AND WARRANTS (restated) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Options And Warrants | |
Schedule of stock based compensation expense | Schedule of stock based compensation expense Years Ended December 31, 2021 2020 Employee stock-based compensation – option grants $ 4,635,224 $ 993,512 |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions used | Assumptions used Years Ended 2021 2020 Expected volatility 116.39 592.89 Expected dividend yield – – Risk-free interest rate 1.28 0.74 Expected term (in years) 10.00 5.00 |
Schedule of options outstanding | Schedule of options outstanding Shares Weighted Weighted Aggregate Intrinsic Outstanding, January 1, 2021 302,849 $ 45.85 4.65 $ – Granted 835,000 19.85 2.90 – Exercised – – – – Cancelled & Expired (1,940 ) – – – Outstanding, December 31, 2021 1,135,909 $ 16.69 8.39 $ – Options exercisable, December 31, 2021 1,124,619 $ 16.59 8.39 $ – |
Schedule of warrants outstanding | Schedule of warrants outstanding Shares Weighted Weighted Aggregate Intrinsic Outstanding, January 1, 2021 471,557 $ 52.52 6.31 $ – Granted 3,439,157 9.46 4.30 – Exercised (104,262 ) – – – Expired (6,250 ) – – – Outstanding, December 31, 2021 3,800,202 $ 15.19 4.68 $ – Warrants exercisable, December 31, 2021 3,800,202 $ 15.19 4.68 $ – |
Warrant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions used | Assumptions used Years Ended December 31, 2021 2020 Expected volatility 175.52 449.47 Expected dividend yield – – Risk-free interest rate 1.14 0.91 Expected term (in years) 5.83 5.83 |
ORGANIZATION AND GOING CONCERN
ORGANIZATION AND GOING CONCERN (Details Narrative) - USD ($) | 12 Months Ended | ||
Sep. 09, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 202,444,894 | $ 184,111,511 | |
Net Income (Loss) Attributable to Parent | 18,333,383 | $ 11,745,835 | |
Stockholders' Equity, Reverse Stock Split | 1 for 400 reverse stock-split | ||
Advangelists L L C [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Unpaid interest | $ 510,000 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||
Cash over FDIC insurance limits | $ 5,103,273 | $ 114,986 |
Allowance for doubtful accounts | 820,990 | 386,600 |
Impairment charge | 3,600,000 | 4,000,000 |
Advertising costs | $ 1,454 | $ 1,400 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,925,000 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Six Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 55% | 58% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 55% | 58% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 31% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 42% |
RESTATEMENT (Details)
RESTATEMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additional paid in capital | $ 201,284,007 | $ 182,529,005 | |||||||||||
Accumulated deficit | (202,444,894) | (184,111,511) | |||||||||||
Total Stockholders' Equity | 2,918,672 | 2,886,685 | $ 10,921,105 | ||||||||||
General and administrative | 13,607,759 | 8,850,929 | |||||||||||
Loss from operations | (12,889,527) | (7,027,564) | |||||||||||
Unrealized gain (loss) on investments | 0 | (3,009) | |||||||||||
Total other income (expense) - net | (5,443,856) | (4,718,271) | |||||||||||
Net loss | (18,333,383) | (11,745,835) | |||||||||||
Net loss | (18,333,383) | (11,745,835) | |||||||||||
Stock-based compensation | 4,635,224 | 993,512 | |||||||||||
Accounts payable and accrued expenses | (774,311) | (778,371) | |||||||||||
Net cash used in operating activities | (6,717,324) | (3,286,764) | |||||||||||
Proceeds from exercise of warrants | 10,204,197 | 1,477,000 | |||||||||||
Net cash provided by financing activities | $ 11,506,860 | 2,655,481 | |||||||||||
Previously Reported [Member] | |||||||||||||
Additional paid in capital | $ 189,498,056 | $ 187,117,663 | $ 185,234,064 | $ 184,231,046 | $ 180,625,860 | $ 178,560,444 | $ 187,117,663 | $ 180,625,860 | $ 189,498,056 | $ 184,231,046 | 184,586,420 | ||
Accumulated deficit | (194,904,072) | (190,992,325) | (188,398,702) | (182,116,945) | (178,155,775) | (173,572,315) | (190,992,325) | (178,155,775) | (194,904,072) | (182,116,945) | (186,168,926) | ||
Total Stockholders' Equity | (951,735) | 594,559 | 1,304,563 | 6,583,288 | 6,939,234 | 9,303,275 | 594,559 | 6,939,234 | (951,735) | 6,583,288 | 2,886,685 | ||
General and administrative | 9,204,465 | ||||||||||||
Total operating expenses | 2,047,428 | 1,626,394 | 2,078,382 | 3,553,285 | 2,381,928 | 5,935,213 | 6,179,909 | 8,013,595 | 9,204,465 | ||||
Loss from operations | (2,156,513) | (2,041,801) | (1,601,465) | (3,767,016) | (2,225,740) | (5,992,756) | (6,822,358) | (7,594,221) | (7,381,100) | ||||
Proceeds from sale of warrants | 662,758 | ||||||||||||
Warrant income (expense) | 662,758 | 63,864 | (598,894) | ||||||||||
Loss on sale of company stock | (436,405) | (419,750) | (2,821,393) | (58,775) | (34,390) | (419,750) | (93,165) | (856,155) | (2,914,558) | (2,996,897) | |||
Unrealized gain (loss) on investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Total other income (expense) - net | (1,245,703) | (744,912) | (188,015) | (2,359,682) | (816,472) | (207,015) | (932,927) | (1,023,487) | (3,383,169) | (7,648,295) | |||
Net loss | $ (3,911,747) | $ (2,593,623) | $ (2,229,776) | $ (3,961,170) | $ (4,583,460) | $ (2,435,793) | $ (4,823,399) | $ (7,019,253) | $ (8,735,146) | $ (10,980,423) | $ (15,032,404) | ||
Net loss per share - basic and diluted | $ (1.22) | $ (0.87) | $ (0.78) | $ (1.43) | $ 0 | $ 0 | $ (1.65) | $ (0.01) | $ (2.89) | $ (3.99) | $ (5.92) | ||
Net loss | $ (2,229,776) | $ (2,435,793) | $ (4,823,399) | $ (7,019,253) | $ (8,735,146) | $ (10,980,423) | $ (15,032,404) | ||||||
Stock-based compensation | $ 555,892 | 16,839 | $ 54,589 | $ 1,276,870 | 0 | 572,731 | 1,276,870 | 1,289,899 | 1,347,048 | ||||
Warrant expense | (598,894) | (598,894) | 1,472,368 | ||||||||||
Loss on conversion of debt to common stock | 30,694 | ||||||||||||
Accounts payable and accrued expenses | (275,686) | (639,237) | (519,474) | (625,562) | (474,650) | (629,419) | (778,375) | ||||||
Net cash used in operating activities | (1,079,181) | (836,696) | (2,712,694) | (1,116,388) | (5,060,535) | (4,490,623) | (4,716,739) | ||||||
Proceeds from exercise of warrants | 0 | ||||||||||||
Repayments on notes payable | (520,809) | ||||||||||||
Common stock issued for cash, net | 548,990 | 898,990 | 898,990 | 3,338,084 | 3,600,423 | ||||||||
Net cash provided by financing activities | 140,016 | 301,787 | 445,342 | 282,694 | 1,760,240 | 425,103 | 4,085,456 | ||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||||
Common stock issued for conversion of convertible notes | 0 | 419,750 | 0 | 419,750 | 0 | 0 | |||||||
Conversion of Series E preferred stock to shares of common stock | 0 | 0 | 0 | 0 | |||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||||||
Additional paid in capital | $ (3,088,538) | (2,652,133) | 1,932,033 | (2,101,143) | (68,575) | 1,604,482 | (2,652,133) | (68,575) | (3,088,538) | (2,101,143) | (2,057,415) | ||
Accumulated deficit | 3,088,538 | 2,652,133 | (1,932,033) | 2,101,143 | 68,575 | (1,604,482) | 2,652,133 | 68,575 | 3,088,538 | 2,101,143 | 2,057,415 | ||
Total Stockholders' Equity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
General and administrative | (353,536) | ||||||||||||
Total operating expenses | (500,500) | 125,382 | 126,067 | (1,015,388) | 409,718 | (605,670) | (375,118) | (479,603) | (353,536) | ||||
Loss from operations | 500,500 | (125,382) | (126,067) | 1,015,388 | (409,718) | 605,670 | 375,118 | 479,603 | 353,536 | ||||
Proceeds from sale of warrants | (662,758) | ||||||||||||
Warrant income (expense) | (662,758) | (63,864) | 598,894 | ||||||||||
Loss on sale of company stock | 436,405 | 419,750 | 2,821,393 | 58,775 | 34,390 | 419,750 | 93,165 | 856,155 | 2,914,558 | 2,996,897 | |||
Unrealized gain (loss) on investments | (40) | 40 | (23) | 28 | (3,038) | (3,010) | (3,033) | (3,009) | |||||
Total other income (expense) - net | 436,405 | 485,402 | 40 | 2,158,612 | 657,697 | 31,352 | 485,442 | 689,049 | 2,847,661 | 2,930,024 | |||
Net loss | 436,405 | 720,100 | (125,382) | 2,032,568 | 1,673,057 | (375,328) | 594,718 | 1,297,729 | 1,031,123 | 3,330,297 | 3,286,569 | ||
Net loss | (125,382) | (375,328) | 594,718 | 1,297,729 | 1,031,123 | 3,330,297 | 3,286,569 | ||||||
Stock-based compensation | (500,500) | 125,382 | 126,067 | (1,015,388) | 490,468 | (375,118) | (524,920) | (375,118) | (353,536) | ||||
Warrant expense | 598,894 | 598,894 | (1,472,368) | ||||||||||
Loss on conversion of debt to common stock | (30,694) | ||||||||||||
Accounts payable and accrued expenses | 99,552 | (103,074) | 176,339 | (4,370) | 273,037 | 86,203 | 4 | ||||||
Net cash used in operating activities | 0 | (288,128) | 263,910 | (582,008) | 2,143,195 | 1,378,326 | 1,429,975 | ||||||
Proceeds from exercise of warrants | 662,754 | ||||||||||||
Repayments on notes payable | 30,694 | ||||||||||||
Common stock issued for cash, net | (548,990) | (898,990) | (898,990) | (3,338,084) | (2,123,423) | ||||||||
Net cash provided by financing activities | 548,990 | 3,863 | 1,574,832 | 612,703 | 1,290,332 | 1,990,453 | (1,429,975) | ||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||||
Common stock issued for conversion of convertible notes | 30,695 | (419,750) | 30,695 | (419,750) | 30,695 | 30,694 | |||||||
Conversion of Series E preferred stock to shares of common stock | 314,960 | 314,960 | 314,960 | 314,960 | |||||||||
As Restated [Member] | |||||||||||||
Additional paid in capital | 186,409,518 | 184,465,530 | 183,302,031 | 182,129,903 | 180,557,285 | 180,164,926 | 184,465,530 | 180,557,285 | 186,409,518 | 182,129,903 | 182,529,005 | ||
Accumulated deficit | (191,815,534) | (188,340,192) | (186,466,669) | (180,015,802) | (178,087,200) | (175,176,797) | (188,340,192) | (178,087,200) | (191,815,534) | (180,015,802) | (184,111,511) | ||
Total Stockholders' Equity | (951,735) | 594,559 | 1,304,563 | 6,583,288 | 6,939,234 | 9,303,275 | 594,559 | 6,939,234 | (951,735) | 6,583,288 | 2,886,685 | ||
General and administrative | 8,850,929 | ||||||||||||
Total operating expenses | 1,546,928 | 1,751,776 | 2,204,449 | 2,537,897 | 2,791,646 | 5,329,543 | 5,804,791 | 7,533,992 | 8,850,929 | ||||
Loss from operations | (1,656,013) | (2,167,183) | (1,727,532) | (2,751,628) | (2,635,458) | (5,387,086) | (6,447,240) | (7,114,618) | (7,027,564) | ||||
Proceeds from sale of warrants | 0 | ||||||||||||
Warrant income (expense) | 0 | 0 | 0 | ||||||||||
Loss on sale of company stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Unrealized gain (loss) on investments | (40) | 40 | (23) | 28 | (3,038) | (3,010) | (3,033) | (3,009) | |||||
Total other income (expense) - net | (809,298) | (259,510) | (187,975) | (201,070) | (158,775) | (175,663) | (447,485) | (334,438) | (535,508) | (4,718,271) | |||
Net loss | $ (3,475,342) | $ (1,873,523) | $ (2,355,158) | $ (1,928,602) | $ (2,910,403) | $ (2,811,121) | $ (4,228,681) | $ (5,721,524) | $ (7,704,023) | $ (7,650,126) | $ (11,745,835) | ||
Net loss per share - basic and diluted | $ (1.09) | $ (0.63) | $ (0.82) | $ (0.70) | $ 0 | $ 0 | $ (1.45) | $ (0.01) | $ (2.54) | $ (2.78) | $ (4.63) | ||
Net loss | $ (2,355,158) | $ (2,811,121) | $ (4,228,681) | $ (5,721,524) | $ (7,704,023) | $ (7,650,126) | $ (11,745,835) | ||||||
Stock-based compensation | $ 55,392 | 142,221 | $ 180,656 | $ 261,482 | 490,468 | 197,613 | 751,950 | 914,781 | 993,512 | ||||
Warrant expense | $ 0 | 0 | 0 | ||||||||||
Loss on conversion of debt to common stock | 0 | ||||||||||||
Accounts payable and accrued expenses | (176,134) | (742,311) | (343,135) | (629,932) | (201,613) | (543,216) | (778,371) | ||||||
Net cash used in operating activities | (1,079,181) | (1,124,824) | (2,448,784) | (1,698,396) | (2,917,340) | (3,112,297) | (3,286,764) | ||||||
Proceeds from exercise of warrants | 662,754 | ||||||||||||
Repayments on notes payable | (490,115) | ||||||||||||
Common stock issued for cash, net | 0 | 0 | 0 | 0 | 1,477,000 | ||||||||
Net cash provided by financing activities | $ 689,006 | 305,650 | 2,020,174 | 895,397 | 3,050,572 | 2,415,556 | 2,655,481 | ||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||||
Common stock issued for conversion of convertible notes | 30,695 | $ 0 | 30,695 | $ 0 | 30,695 | 30,694 | |||||||
Conversion of Series E preferred stock to shares of common stock | $ 314,960 | $ 314,960 | $ 314,960 | $ 314,960 |
RESTATEMENT (Details - Balance
RESTATEMENT (Details - Balance Sheet - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Additional paid in capital | $ 201,284,007 | $ 182,529,005 | |||||||
Accumulated deficit | (202,444,894) | (184,111,511) | |||||||
Total Stockholders' Equity (Deficit) | $ 2,918,672 | 2,886,685 | $ 10,921,105 | ||||||
Previously Reported [Member] | |||||||||
Additional paid in capital | $ 189,498,056 | $ 187,117,663 | $ 185,234,064 | 184,586,420 | $ 184,231,046 | $ 180,625,860 | $ 178,560,444 | ||
Accumulated deficit | (194,904,072) | (190,992,325) | (188,398,702) | (186,168,926) | (182,116,945) | (178,155,775) | (173,572,315) | ||
Total Stockholders' Equity (Deficit) | (951,735) | 594,559 | 1,304,563 | 2,886,685 | 6,583,288 | 6,939,234 | 9,303,275 | ||
Revision of Prior Period, Adjustment [Member] | |||||||||
Additional paid in capital | (3,088,538) | (2,652,133) | 1,932,033 | (2,057,415) | (2,101,143) | (68,575) | 1,604,482 | ||
Accumulated deficit | 3,088,538 | 2,652,133 | (1,932,033) | 2,057,415 | 2,101,143 | 68,575 | (1,604,482) | ||
Total Stockholders' Equity (Deficit) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
As Restated [Member] | |||||||||
Additional paid in capital | 186,409,518 | 184,465,530 | 183,302,031 | 182,529,005 | 182,129,903 | 180,557,285 | 180,164,926 | ||
Accumulated deficit | (191,815,534) | (188,340,192) | (186,466,669) | (184,111,511) | (180,015,802) | (178,087,200) | (175,176,797) | ||
Total Stockholders' Equity (Deficit) | $ (951,735) | $ 594,559 | $ 1,304,563 | $ 2,886,685 | $ 6,583,288 | $ 6,939,234 | $ 9,303,275 |
RESTATEMENT (Details - Operatio
RESTATEMENT (Details - Operations) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation | $ 4,635,224 | $ 993,512 | ||||||||||
Loss from operations | (12,889,527) | (7,027,564) | ||||||||||
Unrealized gain (loss) on investments | 0 | (3,009) | ||||||||||
Total other income (expense) - net | (5,443,856) | (4,718,271) | ||||||||||
Net loss | (18,333,383) | (11,745,835) | ||||||||||
Interest expense | $ (1,417,268) | (715,262) | ||||||||||
Previously Reported [Member] | ||||||||||||
Selling, general and administrative | $ 1,485,080 | $ 3,149,691 | ||||||||||
Stock-based compensation | $ 555,892 | $ 16,839 | $ 54,589 | $ 1,276,870 | 0 | $ 572,731 | 1,276,870 | $ 1,289,899 | 1,347,048 | |||
Total operating expenses | 2,047,428 | 1,626,394 | 2,078,382 | 3,553,285 | 2,381,928 | 5,935,213 | 6,179,909 | $ 8,013,595 | 9,204,465 | |||
Loss from operations | (2,156,513) | (2,041,801) | (1,601,465) | (3,767,016) | (2,225,740) | (5,992,756) | (6,822,358) | (7,594,221) | (7,381,100) | |||
Loss on sale of company stock | $ (436,405) | (419,750) | (2,821,393) | (58,775) | (34,390) | (419,750) | (93,165) | (856,155) | (2,914,558) | (2,996,897) | ||
Unrealized gain (loss) on investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Total other income (expense) - net | (1,245,703) | (744,912) | (188,015) | (2,359,682) | (816,472) | (207,015) | (932,927) | (1,023,487) | (3,383,169) | (7,648,295) | ||
Net loss | $ (3,911,747) | $ (2,593,623) | $ (2,229,776) | $ (3,961,170) | $ (4,583,460) | $ (2,435,793) | $ (4,823,399) | $ (7,019,253) | $ (8,735,146) | $ (10,980,423) | $ (15,032,404) | |
Net loss per share - basic and diluted | $ (1.22) | $ (0.87) | $ (0.78) | $ (1.43) | $ 0 | $ 0 | $ (1.65) | $ (0.01) | $ (2.89) | $ (3.99) | $ (5.92) | |
Warrant expense | $ (598,894) | $ (598,894) | $ 1,472,368 | |||||||||
Warrant income (expense) | $ 662,758 | $ 63,864 | (598,894) | |||||||||
Stock-based compensation | 1,331,459 | |||||||||||
Interest expense | $ (203,436) | $ (215,162) | $ (403,177) | $ (606,613) | ||||||||
Original issue discount | (605,880) | (110,000) | (110,000) | (715,880) | ||||||||
Loan forgiveness - SBA | 0 | 0 | ||||||||||
Total operating expenses | 3,631,822 | |||||||||||
Loss from operations | (4,156,314) | |||||||||||
Total other income (expense) - net | (2,178,630) | |||||||||||
Revision of Prior Period, Adjustment [Member] | ||||||||||||
Selling, general and administrative | $ (80,750) | (80,750) | ||||||||||
Stock-based compensation | (500,500) | $ 125,382 | 126,067 | (1,015,388) | 490,468 | (375,118) | (524,920) | (375,118) | (353,536) | |||
Total operating expenses | (500,500) | 125,382 | 126,067 | (1,015,388) | 409,718 | (605,670) | (375,118) | (479,603) | (353,536) | |||
Loss from operations | 500,500 | (125,382) | (126,067) | 1,015,388 | (409,718) | 605,670 | 375,118 | 479,603 | 353,536 | |||
Loss on sale of company stock | 436,405 | 419,750 | 2,821,393 | 58,775 | 34,390 | 419,750 | 93,165 | 856,155 | 2,914,558 | 2,996,897 | ||
Unrealized gain (loss) on investments | (40) | 40 | (23) | 28 | (3,038) | (3,010) | (3,033) | (3,009) | ||||
Total other income (expense) - net | 436,405 | 485,402 | 40 | 2,158,612 | 657,697 | 31,352 | 485,442 | 689,049 | 2,847,661 | 2,930,024 | ||
Net loss | 436,405 | 720,100 | (125,382) | 2,032,568 | 1,673,057 | (375,328) | 594,718 | 1,297,729 | 1,031,123 | 3,330,297 | 3,286,569 | |
Warrant expense | 598,894 | 598,894 | (1,472,368) | |||||||||
Warrant income (expense) | (662,758) | (63,864) | 598,894 | |||||||||
Stock-based compensation | (479,603) | |||||||||||
Interest expense | (605,880) | (310,150) | (310,150) | (916,030) | ||||||||
Original issue discount | 605,880 | 110,000 | 110,000 | 715,880 | ||||||||
Loan forgiveness - SBA | 265,842 | 265,842 | ||||||||||
Total operating expenses | (375,118) | |||||||||||
Loss from operations | 375,118 | |||||||||||
Total other income (expense) - net | 656,005 | |||||||||||
As Restated [Member] | ||||||||||||
Selling, general and administrative | 1,404,330 | 3,068,941 | ||||||||||
Stock-based compensation | 55,392 | 142,221 | 180,656 | 261,482 | 490,468 | 197,613 | 751,950 | 914,781 | 993,512 | |||
Total operating expenses | 1,546,928 | 1,751,776 | 2,204,449 | 2,537,897 | 2,791,646 | 5,329,543 | 5,804,791 | 7,533,992 | 8,850,929 | |||
Loss from operations | (1,656,013) | (2,167,183) | (1,727,532) | (2,751,628) | (2,635,458) | (5,387,086) | (6,447,240) | (7,114,618) | (7,027,564) | |||
Loss on sale of company stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Unrealized gain (loss) on investments | (40) | 40 | (23) | 28 | (3,038) | (3,010) | (3,033) | (3,009) | ||||
Total other income (expense) - net | (809,298) | (259,510) | (187,975) | (201,070) | (158,775) | (175,663) | (447,485) | (334,438) | (535,508) | (4,718,271) | ||
Net loss | $ (3,475,342) | $ (1,873,523) | $ (2,355,158) | $ (1,928,602) | $ (2,910,403) | $ (2,811,121) | $ (4,228,681) | $ (5,721,524) | $ (7,704,023) | $ (7,650,126) | $ (11,745,835) | |
Net loss per share - basic and diluted | $ (1.09) | $ (0.63) | $ (0.82) | $ (0.70) | $ 0 | $ 0 | $ (1.45) | $ (0.01) | $ (2.54) | $ (2.78) | $ (4.63) | |
Warrant expense | $ 0 | $ 0 | $ 0 | |||||||||
Warrant income (expense) | $ 0 | $ 0 | $ 0 | |||||||||
Stock-based compensation | $ 851,856 | |||||||||||
Interest expense | $ (809,316) | $ (525,312) | $ (713,327) | $ (1,522,643) | ||||||||
Original issue discount | $ 0 | 0 | 0 | 0 | ||||||||
Loan forgiveness - SBA | $ 265,842 | 265,842 | ||||||||||
Total operating expenses | 3,256,704 | |||||||||||
Loss from operations | $ (3,781,196) | |||||||||||
Total other income (expense) - net | $ (1,522,625) |
RESTATEMENT (Details 3)
RESTATEMENT (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss | $ (18,333,383) | $ (11,745,835) | |||||||||
Stock-based compensation | 4,635,224 | 993,512 | |||||||||
Accounts payable and accrued expenses | (774,311) | (778,371) | |||||||||
Net cash used in operating activities | (6,717,324) | (3,286,764) | |||||||||
Net cash provided by investing activities | (6,472) | (6,599) | |||||||||
Net cash provided by financing activities | 11,506,860 | 2,655,481 | |||||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Repayment of notes payable | $ (2,840,337) | (490,115) | |||||||||
Previously Reported [Member] | |||||||||||
Net loss | $ (2,229,776) | $ (2,435,793) | $ (4,823,399) | $ (7,019,253) | $ (8,735,146) | $ (10,980,423) | (15,032,404) | ||||
Stock-based compensation | $ 555,892 | 16,839 | $ 54,589 | $ 1,276,870 | 0 | 572,731 | 1,276,870 | 1,289,899 | 1,347,048 | ||
Warrant expense | 403,268 | 1,354,817 | 1,472,368 | ||||||||
Accounts payable and accrued expenses | (275,686) | (639,237) | (519,474) | (625,562) | (474,650) | (629,419) | (778,375) | ||||
Accrued expenses and other current liabilities | 4,715 | (93,063) | (19,473) | (89,671) | (28,882) | (95,310) | |||||
Accrued interest | 94,837 | (10,011) | 195,810 | 85,301 | 301,919 | 181,513 | |||||
Net cash used in operating activities | (1,079,181) | (836,696) | (2,712,694) | (1,116,388) | (5,060,535) | (4,490,623) | (4,716,739) | ||||
Series E preferred stock exchange for common stock | (314,960) | ||||||||||
Note conversion to common stock | 30,695 | 671,602 | 30,695 | 1,810,506 | 30,695 | ||||||
Net cash provided by investing activities | 548,990 | (284,265) | 1,838,742 | 30,695 | 3,433,527 | 3,362,180 | |||||
Preferred stock converted to common stock | 314,960 | ||||||||||
Common stock issued under exercise of warrants | 0 | 0 | |||||||||
Cash paid on bank notes | (263,173) | (462,694) | (490,739) | ||||||||
Net cash provided by financing activities | 140,016 | 301,787 | 445,342 | 282,694 | 1,760,240 | 425,103 | 4,085,456 | ||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Common stock issued for conversion of convertible notes | 0 | 419,750 | 0 | 419,750 | 0 | 0 | |||||
Conversion of Series E preferred stock to shares of common stock | 0 | 0 | 0 | 0 | |||||||
Stock-based compensation | 1,331,459 | ||||||||||
Common stock issued for cash, net | 548,990 | 898,990 | 898,990 | 3,338,084 | 3,600,423 | ||||||
Common stock issued for cash, net | 0 | 0 | 0 | 0 | |||||||
Stock issued with short-term convertible notes | 0 | 0 | |||||||||
Gain on forgiveness of debt | 0 | 0 | |||||||||
Original issue discount shares | 268,150 | 724,031 | |||||||||
Proceeds from issuance of notes payable, net | 1,310,000 | 2,643,000 | |||||||||
Gain on forgiveness of debt | (265,842) | (265,842) | |||||||||
Repayment of notes payable | (598,816) | (616,918) | |||||||||
Common stock issued for services | 110,000 | ||||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||||
Net loss | (125,382) | (375,328) | 594,718 | 1,297,729 | 1,031,123 | 3,330,297 | 3,286,569 | ||||
Stock-based compensation | (500,500) | 125,382 | 126,067 | (1,015,388) | 490,468 | (375,118) | (524,920) | (375,118) | (353,536) | ||
Warrant expense | (403,268) | (1,354,817) | (1,472,368) | ||||||||
Accounts payable and accrued expenses | 99,552 | (103,074) | 176,339 | (4,370) | 273,037 | 86,203 | 4 | ||||
Accrued expenses and other current liabilities | (4,715) | 93,063 | 19,473 | 89,671 | 28,882 | 95,310 | |||||
Accrued interest | (94,837) | 10,011 | (195,810) | (85,301) | (301,919) | (181,513) | |||||
Net cash used in operating activities | 0 | (288,128) | 263,910 | (582,008) | 2,143,195 | 1,378,326 | 1,429,975 | ||||
Series E preferred stock exchange for common stock | 314,960 | ||||||||||
Note conversion to common stock | (30,695) | (671,602) | (30,695) | (1,810,506) | (30,695) | ||||||
Net cash provided by investing activities | (548,990) | 284,265 | (1,838,742) | (30,695) | (3,433,527) | (3,368,779) | |||||
Preferred stock converted to common stock | (314,960) | ||||||||||
Common stock issued under exercise of warrants | 288,128 | 582,008 | 662,758 | ||||||||
Cash paid on bank notes | 30,695 | 30,695 | 30,695 | ||||||||
Net cash provided by financing activities | 548,990 | 3,863 | 1,574,832 | 612,703 | 1,290,332 | 1,990,453 | (1,429,975) | ||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Common stock issued for conversion of convertible notes | 30,695 | (419,750) | 30,695 | (419,750) | 30,695 | 30,694 | |||||
Conversion of Series E preferred stock to shares of common stock | 314,960 | 314,960 | 314,960 | 314,960 | |||||||
Stock-based compensation | (479,603) | ||||||||||
Common stock issued for cash, net | (548,990) | (898,990) | (898,990) | (3,338,084) | (2,123,423) | ||||||
Common stock issued for cash, net | 548,990 | 898,990 | 898,990 | 1,297,000 | |||||||
Stock issued with short-term convertible notes | 310,150 | 1,753,032 | |||||||||
Gain on forgiveness of debt | (265,842) | (265,842) | |||||||||
Original issue discount shares | (268,150) | (724,031) | |||||||||
Proceeds from issuance of notes payable, net | 510,000 | 225,500 | |||||||||
Gain on forgiveness of debt | 265,842 | 265,842 | |||||||||
Repayment of notes payable | (100,000) | (100,000) | |||||||||
Common stock issued for services | (110,000) | ||||||||||
As Restated [Member] | |||||||||||
Net loss | (2,355,158) | (2,811,121) | (4,228,681) | (5,721,524) | (7,704,023) | (7,650,126) | (11,745,835) | ||||
Stock-based compensation | $ 55,392 | 142,221 | $ 180,656 | $ 261,482 | 490,468 | 197,613 | 751,950 | 914,781 | 993,512 | ||
Warrant expense | 0 | 0 | 0 | ||||||||
Accounts payable and accrued expenses | (176,134) | (742,311) | (343,135) | (629,932) | (201,613) | (543,216) | (778,371) | ||||
Accrued expenses and other current liabilities | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Accrued interest | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in operating activities | (1,079,181) | (1,124,824) | (2,448,784) | (1,698,396) | (2,917,340) | (3,112,297) | (3,286,764) | ||||
Series E preferred stock exchange for common stock | 0 | ||||||||||
Note conversion to common stock | 0 | 0 | 0 | 0 | 0 | ||||||
Net cash provided by investing activities | 0 | 0 | 0 | 0 | 0 | (6,599) | |||||
Preferred stock converted to common stock | 0 | ||||||||||
Common stock issued under exercise of warrants | 288,128 | 582,008 | 662,758 | ||||||||
Cash paid on bank notes | (232,478) | (431,999) | (460,044) | ||||||||
Net cash provided by financing activities | 689,006 | 305,650 | 2,020,174 | 895,397 | 3,050,572 | 2,415,556 | 2,655,481 | ||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||
Common stock issued for conversion of convertible notes | 30,695 | 0 | 30,695 | 0 | 30,695 | 30,694 | |||||
Conversion of Series E preferred stock to shares of common stock | $ 314,960 | $ 314,960 | 314,960 | 314,960 | |||||||
Stock-based compensation | 851,856 | ||||||||||
Common stock issued for cash, net | 0 | 0 | 0 | 0 | $ 1,477,000 | ||||||
Common stock issued for cash, net | $ 548,990 | 898,990 | 898,990 | $ 1,297,000 | |||||||
Stock issued with short-term convertible notes | 1,753,032 | ||||||||||
Gain on forgiveness of debt | (265,842) | (265,842) | |||||||||
Original issue discount shares | 0 | 0 | |||||||||
Proceeds from issuance of notes payable, net | 1,820,000 | 2,868,500 | |||||||||
Gain on forgiveness of debt | 0 | 0 | |||||||||
Repayment of notes payable | (698,816) | $ (716,918) | |||||||||
Common stock issued for services | $ 0 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | $ 5,403,676 | $ 9,003,676 |
Accumulated amortization | (4,156,657) | (3,355,922) |
Intangible assets, net | $ 1,247,019 | 5,647,754 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Intangible asset, gross | $ 3,003,676 | 3,003,676 |
ATOS Platform [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Intangible asset, gross | $ 2,400,000 | $ 6,000,000 |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 603,976 | |
2023 | 572,584 | |
2024 | 70,459 | |
Total | $ 1,247,019 | $ 5,647,754 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ATOS [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill impairment | $ 3,600,000 | $ 4,000,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total Debt | $ 3,119,004 | $ 3,351,283 |
Current portion of debt | 656,504 | 901,283 |
Long-term portion of debt | 2,462,500 | 2,450,000 |
Mob-Fox US LLC [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 0 | 30,000 |
Dr Salkind [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 2,562,500 | 2,550,000 |
Small Business Administration [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 150,000 | 415,842 |
Subscription Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 250,000 | 0 |
Blue Lake Partners LLC Talos Victory Fund LLC [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 0 | 0 |
Business Capital Providers [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 156,504 | $ 355,441 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 07, 2021 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||||
Proceeds from Convertible Debt | $ 4,143,000 | $ 1,005,842 | ||||
Long-term Debt | $ 3,119,004 | 3,119,004 | 3,351,283 | |||
Small Business Administration [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt forgiveness | $ 265,842 | |||||
Long-term Debt | 150,000 | 150,000 | 415,842 | |||
Business Capital Providers [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 156,504 | 156,504 | 355,441 | |||
Business Capital Providers [Member] | Twenty Nine Subscriptions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 1,943,000 | |||||
Business Capital Providers [Member] | Twelve Notes [Member] | Twenty Nine Subscriptions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original issue discount | 74,500 | |||||
Business Capital Providers [Member] | One Note [Member] | Twenty Nine Subscriptions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Convertible Debt | 100,000 | |||||
Business Capital Providers [Member] | Non Affiliated Third Party [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | $ 89,100 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 13,103 | |||||
Business Capital Providers [Member] | Three Lender Investors [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | $ 200,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 40,000 | |||||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 154,500 | |||||
Business Capital Providers [Member] | Eleven Lender Investors [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | $ 819,500 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 156,761 | |||||
Debt Instrument, Face Amount | $ 819,500 | |||||
Proceeds from Convertible Debt | $ 745,000 | |||||
Business Capital Providers [Member] | Four Lender Investors [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 130,000 | |||||
Business Capital Providers [Member] | Four Lender Investors [Member] | One Out Of Four Lender Investor [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | $ 30,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 5,904 | |||||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 17,771 | |||||
Business Capital Providers [Member] | Sixteen Notes [Member] | Twenty Nine Subscriptions [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Amount | 1,149,500 | |||||
Blue Lake Partners Talos Victory Fund 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 1,125,000 | |||||
Blue Lake Partners LLC Talos Victory Fund LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 112,500 | |||||
Warrants issued | 56,250 | |||||
Long-term Debt | $ 0 | $ 0 | $ 0 | |||
Blue Lake Partners LLC Talos Victory Fund LLC [Member] | Warrants Converted [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 104,262 | |||||
Talos Victory Fund [Member] | Warrants Converted [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Conversion of Stock, Shares Issued | 24,692 | |||||
Blue Lake Partners [Member] | Warrants Converted [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Conversion of Stock, Shares Issued | 24,692 | |||||
Non Affiliated Person [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original issue discount | 30,000 | $ 30,000 | ||||
Long-term Debt | $ 312,500 | $ 312,500 |
INCOME TAXES (Details-Provision
INCOME TAXES (Details-Provision) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total Current | 0 | 0 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Total Deferred | $ 0 | $ 0 |
INCOME TAXES (Details-Deferred
INCOME TAXES (Details-Deferred tax assets) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets | $ (14,691,000) | $ (12,528,000) |
Less: Valuation Allowance | 14,691,000 | 12,528,000 |
Net Deferred Tax Asset | $ 0 | $ 0 |
INCOME TAXES (Details-Federal S
INCOME TAXES (Details-Federal Statutory Rate) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal Statutory Tax Rate | 21% | 21% |
State Taxes, net of Federal benefit | 5% | 5% |
Change in Valuation Allowance | (26.00%) | (26.00%) |
Total Tax Expense | 0% | 0% |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 197,813,237 | $ 178,447,460 |
STOCKHOLDERS_ EQUITY (DEFICIT)
STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Aug. 12, 2021 | Dec. 31, 2021 | Apr. 14, 2021 | Apr. 08, 2021 | May 10, 2021 | Apr. 30, 2021 | Apr. 21, 2021 | Apr. 16, 2021 | Jun. 09, 2021 | May 24, 2021 | May 19, 2021 | May 18, 2021 | May 17, 2021 | Jul. 15, 2021 | Jul. 14, 2021 | Jul. 08, 2021 | Jun. 18, 2021 | Aug. 11, 2021 | Sep. 07, 2021 | Aug. 25, 2021 | Aug. 16, 2021 | Sep. 16, 2021 | Sep. 15, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 10, 2021 | Sep. 02, 2021 | Jul. 29, 2021 | |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued for services, value | $ 1,158,026 | $ 547,451 | ||||||||||||||||||||||||||
Share price | $ 2.13 | $ 2.13 | ||||||||||||||||||||||||||
Short term loan | $ 100,000 | $ 300,000 | ||||||||||||||||||||||||||
Sale Of Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Share price | $ 6 | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 41,667 | |||||||||||||||||||||||||||
Note holder [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Debt converted, amount converted | $ 30,694 | |||||||||||||||||||||||||||
Debt converted, shares issued | 1,919 | |||||||||||||||||||||||||||
Proceeds from Other Equity | $ 5,000 | |||||||||||||||||||||||||||
One Investor [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of restricted common stock sold | 16,667 | |||||||||||||||||||||||||||
Share price | $ 6 | |||||||||||||||||||||||||||
One Investor 2 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 100,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 2,500 | |||||||||||||||||||||||||||
Repayments of Short-term Debt | $ 100,000 | |||||||||||||||||||||||||||
One Investor 3 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of restricted common stock sold | 41,667 | |||||||||||||||||||||||||||
Share price | $ 6 | |||||||||||||||||||||||||||
One Investor 4 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Debt converted, amount converted | $ 105,000 | |||||||||||||||||||||||||||
Debt converted, shares issued | 10,000 | |||||||||||||||||||||||||||
Stock issued for exchanges of loan | $ 100,000 | |||||||||||||||||||||||||||
One Investor 5 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 100,000 | |||||||||||||||||||||||||||
Short term loan | 105,000 | |||||||||||||||||||||||||||
Origination fee | $ 5,000 | |||||||||||||||||||||||||||
One Investor 6 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 100,000 | |||||||||||||||||||||||||||
Short term loan | $ 100,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 6,000 | |||||||||||||||||||||||||||
One Investor 7 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 100,000 | |||||||||||||||||||||||||||
Short term loan | $ 100,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 5,000 | |||||||||||||||||||||||||||
One Investor 8 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 50,000 | |||||||||||||||||||||||||||
Short term loan | $ 50,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 3,000 | |||||||||||||||||||||||||||
One Investor 9 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 50,000 | |||||||||||||||||||||||||||
Short term loan | $ 50,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 3,000 | 1,250 | ||||||||||||||||||||||||||
Three Investors [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 400,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 10,000 | |||||||||||||||||||||||||||
Origination fee | $ 20,000 | |||||||||||||||||||||||||||
Proceed from issuance of debt | $ 420,000 | |||||||||||||||||||||||||||
Two Investors [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 200,000 | $ 120,000 | $ 43,000 | |||||||||||||||||||||||||
Origination fee | $ 7,500 | 12,000 | ||||||||||||||||||||||||||
Proceed from issuance of debt | $ 132,000 | |||||||||||||||||||||||||||
Two Investors 1 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 80,000 | |||||||||||||||||||||||||||
Origination fee | 5,000 | |||||||||||||||||||||||||||
Proceed from issuance of debt | $ 85,000 | |||||||||||||||||||||||||||
Two Investors 2 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | 75,000 | |||||||||||||||||||||||||||
Proceed from issuance of debt | $ 82,500 | |||||||||||||||||||||||||||
Two Investors 3 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 150,000 | |||||||||||||||||||||||||||
Origination fee | 5,000 | |||||||||||||||||||||||||||
Proceed from issuance of debt | $ 155,000 | |||||||||||||||||||||||||||
One Investor 10 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 25,000 | |||||||||||||||||||||||||||
Two Investor [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 10,000 | 2,150 | ||||||||||||||||||||||||||
One Investor 11 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 50,000 | |||||||||||||||||||||||||||
One Investor 12 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 25,000 | |||||||||||||||||||||||||||
One Investor 13 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 55,000 | |||||||||||||||||||||||||||
Short term loan | $ 50,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 5,000 | |||||||||||||||||||||||||||
One Investor 14 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Short term loan | $ 25,000 | |||||||||||||||||||||||||||
One Investor 15 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 55,000 | |||||||||||||||||||||||||||
Short term loan | $ 50,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 5,000 | |||||||||||||||||||||||||||
One Investor 16 [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Proceeds from Short-term Debt | $ 55,000 | |||||||||||||||||||||||||||
Short term loan | $ 50,000 | |||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 5,000 | |||||||||||||||||||||||||||
Capital 622 [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 100,000 | |||||||||||||||||||||||||||
Alchemy Advisory LLC [Member] | Consulting Agreement [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Number of restricted common stock issued for loan origination fee | 100,000 | |||||||||||||||||||||||||||
Mezzanine Preferred Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued for services, value | ||||||||||||||||||||||||||||
Conversion of preferred stock series AAA, shares | 25,000 | |||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued for services, shares | 265,000 | 38,125 | ||||||||||||||||||||||||||
Stock issued for services, value | $ 25 | $ 3 | ||||||||||||||||||||||||||
Conversion of preferred stock series AAA, shares | 6,250 | |||||||||||||||||||||||||||
Warrant conversions | 49,384 | |||||||||||||||||||||||||||
Debt converted, amount converted | $ 24 | |||||||||||||||||||||||||||
Debt converted, shares issued | 236,768 | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 340,786 | |||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock issued for services, shares | 265,000 | 38,125 | ||||||||||||||||||||||||||
Stock issued for services, value | $ 1,158,026 | $ 547,451 | ||||||||||||||||||||||||||
Common Stock [Member] | Preferred Stock Series E [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 3,937 | |||||||||||||||||||||||||||
Stock converted, common shares issued | 9,843 | |||||||||||||||||||||||||||
Common Stock [Member] | Warrants [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 77,220 | |||||||||||||||||||||||||||
Common Stock [Member] | Dr Salkind [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock converted, common shares issued | 375,000 | |||||||||||||||||||||||||||
Warrant [Member] | Preferred Stock Series E [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock converted, warrants issued | 4,921 | |||||||||||||||||||||||||||
Warrant exercise price | $ 48 | |||||||||||||||||||||||||||
Series C Preferred Stock [Member] | Dr Salkind [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 1,500 | |||||||||||||||||||||||||||
Warrants [Member] | Dr Salkind [Member] | ||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||
Stock converted, common shares issued | 375,000 |
OPTIONS AND WARRANTS (Details)
OPTIONS AND WARRANTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employees [Member] | Equity Option [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Total stock-based compensation expense | $ 4,635,224 | $ 993,512 |
OPTIONS AND WARRANTS (restate_3
OPTIONS AND WARRANTS (restated) (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Options And Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 4,635,224 | $ 993,512 |
STOCK OPTION PLANS (Details - A
STOCK OPTION PLANS (Details - Assumptions) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 116.39% | 592.89% |
Expected dividend yield | 0% | 0% |
Risk-free interest rate | 1.28% | 0.74% |
Expected term (in years) | 10 years | 5 years |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 175.52% | 449.47% |
Expected dividend yield | 0% | 0% |
Risk-free interest rate | 1.14% | 0.91% |
Expected term (in years) | 5 years 9 months 29 days | 5 years 9 months 29 days |
STOCK OPTION PLANS (Details- Op
STOCK OPTION PLANS (Details- Option Activity) - Equity Option [Member] | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding - beginning | shares | 302,849 |
Weighted average exercise price - beginning | $ / shares | $ 45.85 |
Weighted average contractural term | 4 years 7 months 24 days |
Aggregate intrinsic value - beginning | $ | $ 0 |
Shares granted | shares | 835,000 |
Weighted average exercise price - shares granted | $ / shares | $ 19.85 |
Weighted average contractural term -granted | 2 years 10 months 24 days |
Aggregate intrinsic value - granted | $ | $ 0 |
Shares exercised | shares | 0 |
Weighted average exercise price - shares Exercised | $ / shares | $ 0 |
Aggregate intrinsic value - Exercised | $ | $ 0 |
Shares cancelled and expired | shares | (1,940) |
Weighted average exercise price - shares Cancelled | $ / shares | $ 0 |
Aggregate intrinsic value - Cancelled & Expired | $ | $ 0 |
Shares outstanding - ending | shares | 1,135,909 |
Weighted average exercise price - ending | $ / shares | $ 16.69 |
Weighted average contractural term | 8 years 4 months 20 days |
Aggregate intrinsic value - ending | $ | $ 0 |
Shares exercisable | shares | 1,124,619 |
Weighted average exercise price - exercisable | $ / shares | $ 16.59 |
Weighted average contractural term - exercisable | 8 years 4 months 20 days |
Aggregate intrinsic value - exercisable | $ | $ 0 |
STOCK OPTION PLANS (Details-War
STOCK OPTION PLANS (Details-Warrants Outstanding) - Warrant [Member] | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants outstanding - beginning | shares | 471,557 |
Weighted average exercise price - beginning | $ 52.52 |
Weighted average contractural term | 6 years 3 months 21 days |
Aggregate intrinsic value - beginning | $ | $ 0 |
Warrants granted | shares | 3,439,157 |
Weighted average exercise price - shares granted | $ 9.46 |
Weighted average contractural term - granted | 4 years 3 months 18 days |
Aggregate intrinsic value - granted | $ 0 |
Warrants exercised | shares | (104,262) |
Weighted average exercise price - shares Exercised | $ 0 |
Aggregate intrinsic value - Exercised | $ | $ 0 |
Warrants cancelled and expired | shares | (6,250) |
Weighted average exercise price - shares Cancelled | $ 0 |
Aggregate intrinsic value - Expired | $ | $ 0 |
Warrants outstanding - ending | shares | 3,800,202 |
Weighted average exercise price - ending | $ 15.19 |
Weighted average contractural term | 4 years 8 months 4 days |
Aggregate intrinsic value - ending | $ | $ 0 |
Warrants exercisable | shares | 3,800,202 |
Weighted average exercise price - exercisable | $ 15.19 |
Weighted average contractural term - exercisable | 4 years 8 months 4 days |
Aggregate intrinsic value - exercisable | $ | $ 0 |
STOCK OPTION PLANS (Details Nar
STOCK OPTION PLANS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock closing price | $ 2.13 | |
Unamortized compensation cost related to stock option awards | $ 545,458 | |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.85 | $ 35.75 |
LITIGATION (Details Narrative)
LITIGATION (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fyber Monetization [Member] | Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Expense | $ 120,000 | |
Advangelists [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Expense | $ 44,000 |