Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | PALTALK, INC. | |
Trading Symbol | PALT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 9,222,157 | |
Amendment Flag | false | |
Entity Central Index Key | 0001355839 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-38717 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3191847 | |
Entity Address, Address Line One | 30 Jericho Executive Plaza Suite 400E | |
Entity Address, City or Town | Jericho | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11753 | |
City Area Code | (212) | |
Local Phone Number | 967-5120 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 13,929,729 | $ 14,739,933 |
Accounts receivable, net of allowances of $3,648 as of March 31, 2023 and December 31, 2022 | 107,115 | 122,297 |
Prepaid expense and other current assets | 422,667 | 543,199 |
Total current assets | 14,459,511 | 15,405,429 |
Operating lease right-of-use asset | 138,814 | 159,181 |
Goodwill | 6,326,250 | 6,326,250 |
Intangible assets, net | 3,321,227 | 3,526,811 |
Other assets | 13,937 | 13,937 |
Total assets | 24,259,739 | 25,431,608 |
Current liabilities: | ||
Accounts payable | 802,399 | 1,013,637 |
Accrued expenses and other current liabilities | 124,864 | 225,193 |
Operating lease liabilities, current portion | 82,769 | 82,176 |
Contingent Consideration | 85,000 | 85,000 |
Deferred subscription revenue | 2,162,841 | 2,257,452 |
Total current liabilities | 3,257,873 | 3,663,458 |
Operating lease liabilities, non-current portion | 56,045 | 77,005 |
Deferred tax liability | 661,949 | 716,903 |
Total liabilities | 3,975,867 | 4,457,366 |
Commitments and contingencies (Note 9) | ||
Common stock, $0.001 par value, 25,000,000 shares authorized, 9,864,120 shares issued and 9,222,157 and 9,227,349 shares outstanding as of March 31, 2023 and December 31, 2022, respectively | 9,864 | 9,864 |
Treasury stock, 641,963 and 636,771 shares outstanding as of March 31, 2023 and December 31, 2022, respectively | (1,199,337) | (1,192,124) |
Additional paid-in capital | 36,028,876 | 35,973,735 |
Accumulated deficit | (14,555,531) | (13,817,233) |
Total stockholders’ equity | 20,283,872 | 20,974,242 |
Total liabilities and stockholders’ equity | $ 24,259,739 | $ 25,431,608 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Net of allowances (in Dollars) | $ 3,648 | $ 3,648 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 9,864,120 | 9,864,120 |
Common stock, shares outstanding | 9,222,157 | 9,227,349 |
Treasury stock | 641,963 | 636,771 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Subscription revenue | $ 2,505,670 | $ 2,846,339 |
Advertising revenue | 58,347 | 80,362 |
Total revenues | 2,564,017 | 2,926,701 |
Costs and expenses: | ||
Cost of revenue | 802,475 | 652,096 |
Sales and marketing expense | 254,868 | 411,482 |
Product development expense | 1,248,582 | 1,530,141 |
General and administrative expense | 1,167,111 | 1,046,148 |
Total costs and expenses | 3,473,036 | 3,639,867 |
Loss from operations | (909,019) | (713,166) |
Interest income (expense), net | 121,167 | (1,862) |
Other expense | (7,886) | |
Loss from operations before provision for income taxes | (787,852) | (722,914) |
Income tax benefit (expense) | 49,554 | (16,031) |
Net loss | $ (738,298) | $ (738,945) |
Net loss per share of common stock: | ||
Basic (in Dollars per share) | $ (0.08) | $ (0.08) |
Diluted (in Dollars per share) | $ (0.08) | $ (0.08) |
Weighted average number of shares of common stock used in calculating net loss per share of common stock: | ||
Basic (in Shares) | 9,222,356 | 9,832,157 |
Diluted (in Shares) | 9,222,356 | 9,832,157 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Common Shares | Treasury Shares | Additional Paid- in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 9,864 | $ (194,200) | $ 35,639,910 | $ (10,404,983) | $ 25,050,591 |
Balance (in Shares) at Dec. 31, 2021 | 9,864,120 | (31,963) | |||
Stock-based compensation expense | 152,471 | 152,471 | |||
Net loss | (738,945) | (738,945) | |||
Balance at Mar. 31, 2022 | $ 9,864 | $ (194,200) | 35,792,381 | (11,143,928) | 24,464,117 |
Balance (in Shares) at Mar. 31, 2022 | 9,864,120 | (31,963) | |||
Balance at Dec. 31, 2022 | $ 9,864 | $ (1,192,124) | 35,973,735 | (13,817,233) | 20,974,242 |
Balance (in Shares) at Dec. 31, 2022 | 9,864,120 | (636,771) | |||
Stock-based compensation expense | 55,141 | 55,141 | |||
Repurchases of common stock | $ (7,213) | (7,213) | |||
Repurchases of common stock (in Shares) | (5,192) | ||||
Net loss | (738,298) | (738,298) | |||
Balance at Mar. 31, 2023 | $ 9,864 | $ (1,199,337) | $ 36,028,876 | $ (14,555,531) | $ 20,283,872 |
Balance (in Shares) at Mar. 31, 2023 | 9,864,120 | (641,963) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (738,298) | $ (738,945) |
Adjustments to reconcile net loss from operations to net cash used in operating activities: | ||
Depreciation of property and equipment | 30,098 | |
Amortization of intangible assets | 205,584 | 46,166 |
Amortization of operating lease right-of-use assets | 20,367 | 19,905 |
Stock-based compensation | 55,141 | 152,471 |
Deferred tax (expense) benefit | (49,554) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 15,182 | 44,360 |
Operating lease liability | (20,367) | (19,905) |
Prepaid [income] (expense) and other current assets | 120,532 | (37,842) |
Accounts payable, accrued expenses and other current liabilities | (316,967) | (659,622) |
Deferred subscription revenue | (94,611) | (69,640) |
Net cash (used in) provided by operating activities | (802,991) | (1,232,954) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (7,213) | |
Net cash (used in) provided by financing activities | (7,213) | |
Net (decrease) increase in cash and cash equivalents | (810,204) | (1,232,954) |
Balance of cash and cash equivalents at beginning of period | 14,739,933 | 21,636,860 |
Balance of cash and cash equivalents at end of period | 13,929,729 | 20,403,906 |
Supplemental disclosure of cash flow information: Non-cash investing and financing activities: | ||
Taxes | ||
Write-off of property and equipment | $ 1,475,649 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Overview The accompanying condensed consolidated financial statements include Paltalk, Inc. and its wholly owned subsidiaries, A.V.M. Software, Inc., Paltalk Software Inc., Paltalk Holdings, Inc., Tiny Acquisition Inc., Camshare, Inc., Fire Talk LLC, Vumber LLC and ManyCam ULC (collectively, the “Company”). The Company is a communications software innovator that powers multimedia social applications. The Company’s product portfolio includes Paltalk, Camfrog and Tinychat, which together host a large collection of video-based communities. The Company’s other products include ManyCam and Vumber. ManyCam is a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing apps and distance learning tools. Vumber is a telecommunications services provider that enables users to communicate privately by having multiple phone numbers with any area code through which calls can be forwarded to a user’s existing telephone number. The Company has an over 20-year history of technology innovation and holds 10 patents. ManyCam Asset Acquisition On June 9, 2022 (the “Effective Date”), the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) by and among the Company, ManyCam ULC, an unlimited liability company incorporated under the laws of the Province of Alberta and a wholly owned subsidiary of the Company (the “Purchaser”), Visicom Media Inc., a Canadian corporation (“Visicom”), and 2434936 Alberta ULC, an unlimited liability company incorporated under the laws of the Province of Alberta (“Target NewCo”), pursuant to which the Purchaser purchased, effective as of the Effective Date, all of the issued and outstanding shares of Target NewCo (the “ManyCam Acquisition”). Prior to the ManyCam Acquisition, Target NewCo held all assets related to, or used by Visicom in connection with, the business of developing and distributing virtual webcam driver software, including virtual backgrounds and/or “masks” or other camera effects (other than the Excluded Contracts (as defined in the Securities Purchase Agreement)), whether tangible or intangible, including, but not limited to, Target NewCo’s ManyCam software (“ManyCam”) and related source code, customer lists, customer relationships and all associated customer information, contracts with contractors and suppliers, brand names, trade secrets, trademarks, trade names, designs, copyrights, websites, all URLs, goodwill and intellectual property associated with each of the foregoing (collectively, the “Conveyed Assets”). The Company concluded that the Conveyed Assets were not considered a business for purposes of Regulation S-X and Accounting Standards Codification (“ASC”) 805, Business Combinations. The Purchaser acquired the Conveyed Assets for a cash purchase price of $2.7 million (the “Cash Consideration”). In addition to the Cash Consideration, Visicom was entitled to receive an additional payment of up to $600,000 (the “Earn-Out Payment”) based on the sales of the ManyCam software less chargebacks and refunds (“Gross Sales”) in the six-month period following the closing (the “Earn-Out Period”) as follows: (i) if the Gross Sales during the Earn-Out Period were greater than $800,000, the Earn-Out Payment shall be $600,000, (ii) if the Gross Sales during the Earn-Out Period were greater than $700,000 but less than $800,000, the Earn-Out Payment would have been $300,000, (iii) if the Gross Sales during the Earn-Out Period were greater than $600,000 but less than $700,000, the Earn-Out Payment would have been $150,000 and (iv) if the Gross Sales during the Earn-Out Period did not exceed $600,000, then Visicom would not be paid any portion of the Earn-Out Payment. Gross Sales during the Earn-Out Period exceeded $600,000 but were less than $700,000. Pursuant to the terms of that certain Letter Agreement, by and between Visicom, the Purchaser and the Company, dated February 24, 2023, the Company made an Earn-Out Payment to Visicom in the amount of $85,000 in the second quarter of 2023 (the “Adjusted Earn-Out Payment”). The Company recorded a liability in the amount of the Adjusted Earn-Out Payment, with a corresponding adjustment to the cost basis of the Conveyed Assets. On June 30, 2022, the Company entered into a License Agreement with Visicom (the “License Agreement”), pursuant to which the Company agreed to distribute, at the discretion and direction of Visicom, a specified number of ManyCam software updates to certain license holders to whom Visicom has previously granted a “lifetime” license to ManyCam software. As consideration for distributing the software updates, Visicom paid the Company an initial upfront nonrefundable payment of $65,000. The License Agreement provides that Visicom may purchase additional licenses at prices specified therein. Other than providing a one-time, limited license to Visicom for the distribution of ManyCam software updates pursuant to the terms of the License Agreement, the Company does not have any obligation to provide support or service to the licensee end users. Impact of Macro-Economic Factors The Company’s results of operations have been and may continue to be, negatively impacted by macro-economic factors, including the timing of economic recessions and/or recovery and the overall inflationary environment. Prolonged periods of inflation may affect the Company’s ability to target new customers as well as keep existing customers engaged and may ultimately have a correlating effect on the Company’s users’ discretionary spending. Additionally, the recent closures of certain banks and their placement into receivership with the Federal Deposit Insurance Corporation created bank-specific and broader financial institution liquidity challenges and concerns. Future adverse developments with respect to specific financial institutions or the broader financial services industry may lead to additional market and economic uncertainty, which could affect our industry. Basis of Presentation The condensed consolidated financial statements included in this report have been prepared on a going concern basis in accordance with generally accepted accounting principles in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The Company has not included certain information and notes required by GAAP for complete financial statements pursuant to those rules and regulations, although it believes that the disclosure included herein is adequate to make the information presented not misleading. The condensed consolidated financial statements contained herein should be read in conjunction with the Company’s audited consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 23, 2023 (the “Form 10-K”). In the opinion of management, the accompanying unaudited condensed consolidated financial information contains all normal and recurring adjustments necessary to fairly present the condensed consolidated balance sheets and statements of operations, cash flows and changes in stockholders’ equity of the Company for the interim periods presented. The Company’s historical results are not necessarily indicative of future operating results, and the results for the three months ended March 31, 2023 are not necessarily indicative of results for the year ending December 31, 2023, or for any other period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies During the three months ended March 31, 2023, there were no significant changes made to the Company’s significant accounting policies. For a detailed discussion about the Company’s significant accounting policies, see the Form 10-K. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326). Topic 326 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. The Company adopted ASU 2016-13 on January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s financial position, results of operations or cash flows. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimate inherent in the preparation of our financial statements include the discount rates and weighted average costs of capital used in the fair value of the ManyCam assets and in assigning their respective useful lives. These fair values and estimates were based on a number of factors, including a valuation by an independent third party. Revisions to the Company’s estimates may result in increases or decreases to revenues and income and are reflected in the condensed consolidated financial statements in the periods in which they are first identified. If the Company’s estimates indicate that a contract loss will be incurred, a loss provision is recorded in the period in which the loss first becomes probable and can be reasonably estimated. Contract losses are the amount by which the estimated costs of the contract exceed the estimated total revenue that will be generated by the contract and are included in cost of revenues in the Company’s condensed consolidated statements of operations. There were no contract losses for the periods presented. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers Subscription Revenue The Company generates subscription revenue primarily from monthly premium subscription services. Subscription revenues are presented net of refunds, credits, and known and estimated credit card chargebacks. During the three months ended March 31, 2023 and 2022, subscriptions were offered in durations of one-, three-, six- twelve-and twenty four-month terms. All subscription fees, however, are paid by credit card at the origination of the subscription regardless of the term of the subscription. Revenues from multi-month subscriptions are recognized on a straight-line basis over the period where the service is offered to the customer, indicated by length of the subscription term purchased. The unearned portion of subscription revenue is presented as deferred revenue in the accompanying condensed consolidated balance sheets. Deferred revenue at December 31, 2022 was $2,257,452, of which $770,540 was subsequently recognized as subscription revenue during the three months ended March 31, 2023. The ending balance of deferred revenue at March 31, 2023 and 2022 was $2,162,841 and $1,845,853 respectively. In addition, the Company offers virtual gifts to its users. Users may purchase credits in $5, $10 or $20 increments that can be redeemed for a host of virtual gifts such as a rose, a beer or a car, among other items. These gifts are given among users to enhance communication and are typically redeemed within 30 days of purchase. Upon purchase, the virtual gifts are credited to the users’ account and are under the users’ control. Virtual gift revenue is recognized upon the users’ redemption of virtual gifts at the fixed transaction price and included in subscription revenue in the accompanying condensed consolidated statements of operations. Virtual gift revenue is presented as deferred revenue in the condensed consolidated balance sheets until virtual gifts are redeemed. Virtual gift revenue was $1,010,200 and $1,269,537 for the three months ended March 31, 2023, and 2022, respectively. The ending balance of deferred revenue from virtual gifts at March 31, 2023 and 2022 was $334,629 and $331,804, respectively. Advertising Revenue The Company generates advertising revenue from the display of advertisements on its products through contractual agreements with third parties that are based on the number of advertising impressions delivered. Measurements of impressions include when a customer clicks an advertisement (CPC basis), views an advertisement impression (CPM basis), or registers for an external website via an advertisement by clicking on or through the application (CPA basis). Advertising revenue is dependent upon traffic as well as the advertising inventory placed on the Company’s products. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 3. Intangible Assets, Net Intangible assets, net consisted of the following at March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Patents $ 50,000 $ (34,375 ) $ 15,625 $ 50,000 $ (33,750 ) $ 16,250 Trade names, trademarks product names, URLs 1,022,425 (582,684 ) 439,741 1,022,425 (562,114 ) 460,311 Internally developed software 4,180,005 (2,243,764 ) 1,936,241 4,180,005 (2,165,550 ) 2,014,455 Subscriber/customer relationships 3,553,102 (2,623,482 ) 929,620 3,553,102 (2,517,307 ) 1,035,794 Total intangible assets $ 8,805,532 $ (5,484,305 ) $ 3,321,227 $ 8,805,532 $ (5,278,721 ) $ 3,526,811 Amortization expense for the three months ended March 31, 2023 was $205,584, as compared to $46,166 for the three months ended March 31, 2022. The aggregate amortization expense for each of the next five years and thereafter is estimated to be $616,749 for the remainder of 2023, $821,687 in 2024, $568,529 in 2025, $382,133 in 2026, $382,133 in 2027 and $549,996 thereafter. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following for the periods presented: March 31, December 31, 2023 2022 (unaudited) Compensation, benefits and payroll taxes $ - $ 114,000 Other accrued expenses 124,864 111,193 Total accrued expenses and other current liabilities $ 124,864 $ 225,193 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s provision for income taxes consists of federal, foreign, and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary. As of March 31, 2023, the Company’s conclusion regarding the realizability of its U.S. deferred tax assets had not changed, and the Company has continued to maintain a full valuation allowance against them. For the three months ended March 31, 2023, the Company recorded an income tax benefit of $49,554. The effective tax rate for the three months ended March 31, 2023 was 6.64% which differs from the statutory rate of 21% as the Company has concluded that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis. For the three months ended March 31, 2022, the Company recorded an income tax provision of $16,031. The effective tax rate for the three months ended March 31, 2022 was (2.22)%. The effective tax rate differs from the statutory rate of 21% as the Company has concluded that its deferred tax assets are not realizable on a more-likely-than-not basis. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity The Paltalk, Inc. Amended and Restated 2011 Long-Term Incentive Plan (the “2011 Plan”) was terminated as to future awards on May 16, 2016. A total of 31,548 shares of the Company’s common stock may be issued pursuant to outstanding options awarded under the 2011 Plan; however, no additional awards may be granted under such plan. The Paltalk, Inc. 2016 Long-Term Incentive Plan (“the 2016 Plan”) was adopted by the Company’s stockholders on May 16, 2016 and permits the Company to award stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights, and other stock-based awards and cash-based incentive awards to its employees (including an employee who is also a director or officer under certain circumstances), non-employee directors and consultants. The maximum number of shares of common stock that may be issued pursuant to awards under the 2016 Plan is 1,300,000 shares, 100% of which may be issued pursuant to incentive stock options. In addition, the maximum number of shares of common stock that may be issued under the 2016 Plan may be increased by an indeterminate number of shares of common stock underlying outstanding awards issued under the 2011 Plan that are forfeited, expired, cancelled or settled in cash. As of March 31, 2023, there were 762,336 shares available for future issuance under the 2016 Plan. Stock Options The following table summarizes the assumptions used in the Black-Scholes pricing model to estimate the fair value of the options granted during the three months ended March 31, 2023: Expected volatility 161.44 % Expected life of option (in years) 5.2 – 6.23 Risk free interest rate 3.58 – 3.59 % Expected dividend yield 0.0 % The expected life of the options is the period of time over which employees and non-employees are expected to hold their options prior to exercise. The expected life of options has been determined using the “simplified” method as prescribed by Staff Accounting Bulletin 110, which uses the midpoint between the vesting date and the end of the contractual term. The volatility of the Company’s common stock is calculated using the Company’s historical volatilities beginning at the grant date and going back for a period of time equal to the expected life of the award. The Company estimates potential forfeitures of stock awards and adjusts recorded stock-based compensation expense accordingly. The Company estimates pre-vesting forfeitures primarily based on the Company’s historical experience and is adjusted to reflect actual forfeitures as the stock-based awards vest. The following table summarizes stock option activity during the three months ended March 31, 2023: Weighted Average Number of Exercise Options Price Stock Options: Outstanding at January 1, 2023 622,074 $ 3.71 Granted during the period 49,000 1.94 Cancelled/Forfeited, during the period (20,100 ) 1.51 Expired, during the period (819 ) 25.48 Outstanding at March 31, 2023 650,155 $ 3.62 Exercisable at March 31, 2023 484,295 $ 4.05 At March 31, 2023, there was $368,055 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted average period of 3.02 years. On March 31, 2023, the aggregate intrinsic value of stock options that were outstanding and exercisable was $59,506 and $44,744, respectively. On March 31, 2022, the aggregate intrinsic value of stock options that were outstanding and exercisable was $118,415 and $88,040, respectively. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the fair value of such awards as of the period-end date. During the three months ended March 31, 2023, the Company granted stock options to members of the Board of Directors to purchase an aggregate of 24,000 shares of common stock at an exercise price of $1.94 per share. The stock options vest in four equal quarterly installments on the last day of each calendar quarter in 2023 and have a term of 10 years. During the three months ended March 31, 2023, the Company also granted options to employees to purchase an aggregate of 25,000 shares of common stock. These options have varying vesting dates ranging between the grant date and four years, have a term of ten years and have an exercise price of $1.94. The aggregate fair value for the options granted during the three months ended March 31, 2023 and 2022 was $90,380 and $636,957, respectively. Stock-based compensation expense for the Company’s stock options included in the condensed consolidated statements of operations was as follows: Three Months Ended March 31, 2023 2022 Cost of revenue $ 2,215 $ 12,864 Sales and marketing expense 639 119 Product development expense 6,873 3,469 General and administrative expense 45,414 136,019 Total stock-based compensation expense $ 55,141 $ 152,471 Treasury Shares As of March 31, 2023 and December 31, 2022, the Company had 641,963, and 636,771, shares of its common stock, respectively, classified as treasury shares on the Company’s consolidated balance sheets. During the three months ended March 31, 2023 5,192 shares of common stock had been repurchased by the Company pursuant to the Stock Repurchase Plan at an average purchase price of $1.39. |
Net Loss Share
Net Loss Share | 3 Months Ended |
Mar. 31, 2023 | |
Net Loss Share [Abstract] | |
Net Loss Share | 7. Net Loss Share Basic earnings and net loss per share are computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period as defined by ASC Topic 260, Earnings Per Share The following table summarizes the net loss per share calculation for the periods presented: Three Months Ended 2023 2022 Net loss from operations – basic and diluted $ (738,298 ) $ (738,945 ) Weighted average shares outstanding – basic 9,222,356 9,832,157 Weighted average shares outstanding – diluted 9,222,356 9,832,157 Per share data: Basic from operations $ (0.08 ) $ (0.08 ) Diluted from operations $ (0.08 ) $ (0.08 ) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 8 Leases On April 9, 2021, the Company entered into a lease extension agreement with Jericho Executive Center LLC for the office space at 30 Jericho Executive Plaza in Jericho, New York, which commenced on December 1, 2021 and runs through November 30, 2024. The Company’s monthly office rent payments under the lease are currently approximately $7,081 per month. As of March 31, 2023, the Company had no long-term leases that were classified as financing leases. As of March 31, 2023, the Company did not have additional operating and financing leases that had not yet commenced. As of March 31, 2023, the Company had operating lease liabilities of approximately $139,000 and ROU assets of approximately $139,000, which are included in the condensed consolidated balance sheets. Total rent expense for the three months ended March 31, 2023 was $20,448, of which $1,500 was sublease income. Total rent expense for three months ended March 31, 2022 was $23,332 of which $1,500 was sublease income. Rent expense is recorded under general and administrative expense in the condensed consolidated statements of operations. The following table summarizes the Company’s operating leases for the periods presented: Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: $ 20,367 $ 19,905 Weighted average assumptions: Remaining lease term 1.7 2.7 Discount rate 2.3 % 2.3 % As of March 31, 2023, future minimum payments under non-cancelable operating leases were as follows: For the year ending December 31, Amount 2023 63,731 2024 77,894 Total $ 141,625 Less: present value adjustment (2,811 ) Present value of minimum lease payments $ 138,814 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Officer Employment Agreements On March 23, 2022, the Company entered into Amended and Restated Employment Agreements with the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), which amended and restated their existing employment agreements with the Company dated October 7, 2016 and December 9, 2019, respectively. The agreements are each for terms of one year with auto renewal provisions. Except for adjustments to base salaries, all other terms and conditions of the prior employment agreements between the Company and the CEO and CFO remained in full force and effect. The Amended and Restated Employment Agreement for the CEO is retroactive to February 2021. The Amended and Restated Employment Agreement for the CFO is retroactive to January 2022. Aggregate commitments of base salaries under the Amended and Restated Employment Agreements for each of 2022 and 2023 totaled $490,000. Should the agreements be renewed for 2024 and beyond, the aggregate base salary commitments would total $510,000 per year. Patent Litigation On July 23, 2021, a wholly owned subsidiary of the Company, Paltalk Holdings, Inc., filed a patent infringement lawsuit against WebEx Communications, Inc., Cisco WebEx LLC, and Cisco Systems, Inc. (collectively, “Cisco”), in the U.S. District Court for the Western District of Texas. The Company alleges that certain of Cisco’s products have infringed U.S. Patent No. 6,683,858, and that the Company is entitled to damages. A Markman hearing took place on February 24, 2022. On September 7, 2022, the United States Patent Office issued a reexamination of U.S. Patent No. 6,683,858, and on January 19, 2023, the Examiner issued an Ex Parte Reexamination Certificate, ending the reexamination and confirming the patentability of claims 1-10 of U.S. Patent No. 6,683,858. A trial is scheduled for early third quarter of 2023. Legal Proceedings The Company may be included in legal proceedings, claims and assessments arising in the ordinary course of business. The Company evaluates the need for a reserve for specific legal matters based on the probability of an unfavorable outcome and the reasonability of an estimable loss. No reserve was deemed necessary as of March 31, 2023. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Management has evaluated subsequent events or transactions occurring through the date the condensed consolidated financial statements were issued and determined that no events or transactions are required to be disclosed herein. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326). Topic 326 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. The Company adopted ASU 2016-13 on January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s financial position, results of operations or cash flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimate inherent in the preparation of our financial statements include the discount rates and weighted average costs of capital used in the fair value of the ManyCam assets and in assigning their respective useful lives. These fair values and estimates were based on a number of factors, including a valuation by an independent third party. Revisions to the Company’s estimates may result in increases or decreases to revenues and income and are reflected in the condensed consolidated financial statements in the periods in which they are first identified. If the Company’s estimates indicate that a contract loss will be incurred, a loss provision is recorded in the period in which the loss first becomes probable and can be reasonably estimated. Contract losses are the amount by which the estimated costs of the contract exceed the estimated total revenue that will be generated by the contract and are included in cost of revenues in the Company’s condensed consolidated statements of operations. There were no contract losses for the periods presented. |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers Subscription Revenue The Company generates subscription revenue primarily from monthly premium subscription services. Subscription revenues are presented net of refunds, credits, and known and estimated credit card chargebacks. During the three months ended March 31, 2023 and 2022, subscriptions were offered in durations of one-, three-, six- twelve-and twenty four-month terms. All subscription fees, however, are paid by credit card at the origination of the subscription regardless of the term of the subscription. Revenues from multi-month subscriptions are recognized on a straight-line basis over the period where the service is offered to the customer, indicated by length of the subscription term purchased. The unearned portion of subscription revenue is presented as deferred revenue in the accompanying condensed consolidated balance sheets. Deferred revenue at December 31, 2022 was $2,257,452, of which $770,540 was subsequently recognized as subscription revenue during the three months ended March 31, 2023. The ending balance of deferred revenue at March 31, 2023 and 2022 was $2,162,841 and $1,845,853 respectively. In addition, the Company offers virtual gifts to its users. Users may purchase credits in $5, $10 or $20 increments that can be redeemed for a host of virtual gifts such as a rose, a beer or a car, among other items. These gifts are given among users to enhance communication and are typically redeemed within 30 days of purchase. Upon purchase, the virtual gifts are credited to the users’ account and are under the users’ control. Virtual gift revenue is recognized upon the users’ redemption of virtual gifts at the fixed transaction price and included in subscription revenue in the accompanying condensed consolidated statements of operations. Virtual gift revenue is presented as deferred revenue in the condensed consolidated balance sheets until virtual gifts are redeemed. Virtual gift revenue was $1,010,200 and $1,269,537 for the three months ended March 31, 2023, and 2022, respectively. The ending balance of deferred revenue from virtual gifts at March 31, 2023 and 2022 was $334,629 and $331,804, respectively. Advertising Revenue The Company generates advertising revenue from the display of advertisements on its products through contractual agreements with third parties that are based on the number of advertising impressions delivered. Measurements of impressions include when a customer clicks an advertisement (CPC basis), views an advertisement impression (CPM basis), or registers for an external website via an advertisement by clicking on or through the application (CPA basis). Advertising revenue is dependent upon traffic as well as the advertising inventory placed on the Company’s products. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | March 31, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Patents $ 50,000 $ (34,375 ) $ 15,625 $ 50,000 $ (33,750 ) $ 16,250 Trade names, trademarks product names, URLs 1,022,425 (582,684 ) 439,741 1,022,425 (562,114 ) 460,311 Internally developed software 4,180,005 (2,243,764 ) 1,936,241 4,180,005 (2,165,550 ) 2,014,455 Subscriber/customer relationships 3,553,102 (2,623,482 ) 929,620 3,553,102 (2,517,307 ) 1,035,794 Total intangible assets $ 8,805,532 $ (5,484,305 ) $ 3,321,227 $ 8,805,532 $ (5,278,721 ) $ 3,526,811 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | March 31, December 31, 2023 2022 (unaudited) Compensation, benefits and payroll taxes $ - $ 114,000 Other accrued expenses 124,864 111,193 Total accrued expenses and other current liabilities $ 124,864 $ 225,193 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule black-scholes pricing model to estimate the fair value | Expected volatility 161.44 % Expected life of option (in years) 5.2 – 6.23 Risk free interest rate 3.58 – 3.59 % Expected dividend yield 0.0 % |
Schedule of stock option activity | Weighted Average Number of Exercise Options Price Stock Options: Outstanding at January 1, 2023 622,074 $ 3.71 Granted during the period 49,000 1.94 Cancelled/Forfeited, during the period (20,100 ) 1.51 Expired, during the period (819 ) 25.48 Outstanding at March 31, 2023 650,155 $ 3.62 Exercisable at March 31, 2023 484,295 $ 4.05 |
Schedule of stock-based compensation expense | Three Months Ended March 31, 2023 2022 Cost of revenue $ 2,215 $ 12,864 Sales and marketing expense 639 119 Product development expense 6,873 3,469 General and administrative expense 45,414 136,019 Total stock-based compensation expense $ 55,141 $ 152,471 |
Net Loss Share (Tables)
Net Loss Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Net Loss Share [Abstract] | |
Schedule of net loss share | Three Months Ended 2023 2022 Net loss from operations – basic and diluted $ (738,298 ) $ (738,945 ) Weighted average shares outstanding – basic 9,222,356 9,832,157 Weighted average shares outstanding – diluted 9,222,356 9,832,157 Per share data: Basic from operations $ (0.08 ) $ (0.08 ) Diluted from operations $ (0.08 ) $ (0.08 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of operating leases | Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: $ 20,367 $ 19,905 Weighted average assumptions: Remaining lease term 1.7 2.7 Discount rate 2.3 % 2.3 % |
Schedule of future minimum payments under non-cancelable operating leases | For the year ending December 31, Amount 2023 63,731 2024 77,894 Total $ 141,625 Less: present value adjustment (2,811 ) Present value of minimum lease payments $ 138,814 |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Organization and Description of Business [Abstract] | |||
Conveyed assets | $ 2,700,000 | ||
Earn-out payment | $ 600,000 | ||
Cash consideration description | (i) if the Gross Sales during the Earn-Out Period were greater than $800,000, the Earn-Out Payment shall be $600,000, (ii) if the Gross Sales during the Earn-Out Period were greater than $700,000 but less than $800,000, the Earn-Out Payment would have been $300,000, (iii) if the Gross Sales during the Earn-Out Period were greater than $600,000 but less than $700,000, the Earn-Out Payment would have been $150,000 and (iv) if the Gross Sales during the Earn-Out Period did not exceed $600,000, then Visicom would not be paid any portion of the Earn-Out Payment. | ||
Adjusted earn-out Payment amount | $ 85,000 | ||
Nonrefundable payment | $ 65,000 | ||
Minimum [Member] | |||
Organization and Description of Business [Abstract] | |||
Earn-out period amount | $ 600,000 | ||
Maximum [Member] | |||
Organization and Description of Business [Abstract] | |||
Earn-out period amount | $ 700,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Deferred revenue | $ 2,162,841 | $ 1,845,853 | $ 2,257,452 |
Subscription revenue | $ 770,540 | ||
Subscription revenue, description | In addition, the Company offers virtual gifts to its users. Users may purchase credits in $5, $10 or $20 increments that can be redeemed for a host of virtual gifts such as a rose, a beer or a car, among other items. | ||
Virtual gift revenue | $ 1,010,200 | 1,269,537 | |
Subscription Revenue [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Virtual gift revenue | $ 334,629 | $ 331,804 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets, Net (Details) [Line Items] | ||
Amortization expense | $ 205,584 | $ 46,166 |
Intangible Assets, [Member] | ||
Intangible Assets, Net (Details) [Line Items] | ||
Aggregate amortization expense 2022 | 616,749 | |
Aggregate amortization expense 2023 | 821,687 | |
Aggregate amortization expense 2024 | 568,529 | |
Aggregate amortization expense 2025 | 382,133 | |
Aggregate amortization expense 2026 | 382,133 | |
Aggregate amortization expense for thereafter | $ 549,996 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,805,532 | $ 8,805,532 |
Accumulated Amortization | (5,484,305) | (5,278,721) |
Net Carrying Amount | 3,321,227 | 3,526,811 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,000 | 50,000 |
Accumulated Amortization | (34,375) | (33,750) |
Net Carrying Amount | 15,625 | 16,250 |
Trade names, trademarks product names, URLs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,022,425 | 1,022,425 |
Accumulated Amortization | (582,684) | (562,114) |
Net Carrying Amount | 439,741 | 460,311 |
Internally developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,180,005 | 4,180,005 |
Accumulated Amortization | (2,243,764) | (2,165,550) |
Net Carrying Amount | 1,936,241 | 2,014,455 |
Subscriber/customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,553,102 | 3,553,102 |
Accumulated Amortization | (2,623,482) | (2,517,307) |
Net Carrying Amount | $ 929,620 | $ 1,035,794 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Compensation, benefits and payroll taxes | $ 114,000 | |
Other accrued expenses | 124,864 | 111,193 |
Total accrued expenses and other current liabilities | $ 124,864 | $ 225,193 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit (in Dollars) | $ 49,554 | |
Effective tax rate | 6.64% | (2.22%) |
Effective tax rate from statutory rate | 21% | 21% |
Income tax provision (in Dollars) | $ 16,031 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Stockholders' Equity (Details) [Line Items] | ||||
Total unrecognized compensation expense | $ 368,055 | |||
Weighted average period | 3 years 7 days | |||
Aggregate intrinsic value of stock options, outstanding | $ 59,506 | $ 118,415 | ||
Aggregate intrinsic value of stock options, exercisable | $ 44,744 | 88,040 | ||
Purchase an aggregate of common stock (in Shares) | 24,000 | |||
Exercise price of common stock (in Dollars per share) | $ 1.94 | |||
Purchase an aggregate of shares to common stock (in Shares) | 25,000 | |||
Exercise price (in Dollars per share) | $ 1.94 | |||
Aggregate fair value of options granted | $ 90,380 | $ 636,957 | ||
Common stock outstanding | $ 1,750,000 | |||
Common stock, treasury shares (in Shares) | 641,963 | 636,771 | ||
Repurchased shares of common stock | $ 5,192 | |||
Purchase price per share (in Dollars per share) | $ 1.39 | |||
2011 Plan [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Number of shares issued under plan (in Shares) | 31,548 | |||
2016 Plan [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Number of shares issued under plan (in Shares) | 1,300,000 | |||
Percentage of common stock delivered pursuant to incentive stock options | 100% | |||
Number of stock available for future issuance (in Shares) | 762,336 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of black-scholes pricing model to estimate the fair value | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity (Details) - Schedule of black-scholes pricing model to estimate the fair value [Line Items] | |
Expected volatility | 161.44% |
Expected dividend yield | 0% |
Minimum [Member] | |
Stockholders' Equity (Details) - Schedule of black-scholes pricing model to estimate the fair value [Line Items] | |
Expected life of option (in years) | 5 years 2 months 12 days |
Risk free interest rate | 3.58% |
Maximum [Member] | |
Stockholders' Equity (Details) - Schedule of black-scholes pricing model to estimate the fair value [Line Items] | |
Expected life of option (in years) | 6 years 2 months 23 days |
Risk free interest rate | 3.59% |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of stock option activity | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Stock Options: | |
Number of Options, Outstanding beginning balance | shares | 622,074 |
Weighted Average Exercise Price, Outstanding beginning balance | $ / shares | $ 3.71 |
Number of Options, Granted | shares | 49,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 1.94 |
Number of Options, Cancelled/Forfeited, during the period | shares | (20,100) |
Weighted Average Exercise Price, Cancelled/Forfeited, during the period | $ / shares | $ 1.51 |
Number of Options, Expired, during the period | shares | (819) |
Weighted Average Exercise Price, Expired, during the period | $ / shares | $ 25.48 |
Number of Options, Outstanding ending balance | shares | 650,155 |
Weighted Average Exercise Price, Outstanding ending balance | $ / shares | $ 3.62 |
Number of Options, Exercisable | shares | 484,295 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 4.05 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of stock-based compensation expense - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of stock-based compensation expense [Abstract] | ||
Total stock compensation expense | $ 55,141 | $ 152,471 |
Cost of revenue [Member] | ||
Schedule of stock-based compensation expense [Abstract] | ||
Total stock compensation expense | 2,215 | 12,864 |
Sales and marketing expense [Member] | ||
Schedule of stock-based compensation expense [Abstract] | ||
Total stock compensation expense | 639 | 119 |
Product development expense [Member] | ||
Schedule of stock-based compensation expense [Abstract] | ||
Total stock compensation expense | 6,873 | 3,469 |
General and administrative expense [Member] | ||
Schedule of stock-based compensation expense [Abstract] | ||
Total stock compensation expense | $ 45,414 | $ 136,019 |
Net Loss Share (Details)
Net Loss Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Loss Share [Abstract] | ||
Exercise of outstanding stock options | 650,155 | 679,515 |
Net Loss Share (Details) - Sche
Net Loss Share (Details) - Schedule of net loss per share - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of net (loss) income per share [Abstract] | ||
Net loss from operations – basic and diluted | $ (738,298) | $ (738,945) |
Weighted average shares outstanding – basic | 9,222,356 | 9,832,157 |
Weighted average shares outstanding – diluted | 9,222,356 | 9,832,157 |
Per share data: | ||
Basic from operations | $ (0.08) | $ (0.08) |
Diluted from operations | $ (0.08) | $ (0.08) |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | ||
Apr. 09, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases (Textual) | |||
Operating lease, description | On April 9, 2021, the Company entered into a lease extension agreement with Jericho Executive Center LLC for the office space at 30 Jericho Executive Plaza in Jericho, New York, which commenced on December 1, 2021 and runs through November 30, 2024. | ||
Rent payments under the lease | $ 7,081 | ||
Operating lease liabilities | 139,000 | ||
Right of use asset | 139,000 | ||
Rent expenses | 20,448 | $ 23,332 | |
Sublease income | $ 1,500 | $ 1,500 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating leases - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of operating leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities: | $ 20,367 | $ 19,905 |
Weighted average assumptions: | ||
Remaining lease term | 1 year 8 months 12 days | 2 years 8 months 12 days |
Discount rate | 2.30% | 2.30% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of future minimum payments under non-cancelable operating leases | Mar. 31, 2023 USD ($) |
Schedule of future minimum payments under non-cancelable operating leases [Abstract] | |
2023 | $ 63,731 |
2024 | 77,894 |
Total | 141,625 |
Less: present value adjustment | (2,811) |
Present value of minimum lease payments | $ 138,814 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Commitments and Contingencies (Details) [Line Items] | |
Annualized base salary | $ 510,000 |
CEO and CFO [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Annualized base salary | $ 490,000 |