Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | None | ||
Entity Information [Line Items] | |||
Entity Registrant Name | PALTALK, INC. | ||
Entity Central Index Key | 0001355839 | ||
Entity File Number | 001-38717 | ||
Entity Tax Identification Number | 20-3191847 | ||
Entity Incorporation, State or Country Code | DE | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 14,682,997 | ||
Entity Contact Personnel [Line Items] | |||
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 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | (212) | ||
Local Phone Number | 967-5120 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | PALT | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 9,222,157 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | Marcum llp |
Auditor Firm ID | 688 |
Auditor Location | New York, NY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 13,568,049 | $ 14,739,933 |
Accounts receivable, net of allowances of $23,326 and $3,648 as of December 31, 2023 and 2022, respectively | 92,704 | 122,297 |
Employee retention tax credit receivable, net | 114,212 | |
Prepaid expense and other current assets | 990,634 | 543,199 |
Total current assets | 14,765,599 | 15,405,429 |
Operating lease right-of-use asset | 77,005 | 159,181 |
Goodwill | 6,326,250 | 6,326,250 |
Intangible assets, net | 2,704,477 | 3,526,811 |
Other assets | 13,937 | 13,937 |
Total assets | 23,887,268 | 25,431,608 |
Current liabilities: | ||
Accounts payable | 792,053 | 1,013,637 |
Accrued expenses and other current liabilities | 226,120 | 225,193 |
Contingent consideration | 85,000 | |
Operating lease liabilities, current portion | 77,005 | 82,176 |
Deferred subscription revenue | 2,043,362 | 2,257,452 |
Total current liabilities | 3,138,540 | 3,663,458 |
Operating lease liabilities, non-current portion | 77,005 | |
Deferred tax liability | 614,041 | 716,903 |
Total liabilities | 3,752,581 | 4,457,366 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
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 December 31, 2023 and 2022, respectively | 9,864 | 9,864 |
Treasury stock, 641,963 and 636,771 shares repurchased as of December 31, 2023 and 2022, respectively | (1,199,337) | (1,192,124) |
Additional paid-in capital | 36,208,728 | 35,973,735 |
Accumulated deficit | (14,884,568) | (13,817,233) |
Total stockholders’ equity | 20,134,687 | 20,974,242 |
Total liabilities and stockholders’ equity | $ 23,887,268 | $ 25,431,608 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Net of allowances (in Dollars) | $ 23,326 | $ 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, shares repurchased | 641,963 | 636,771 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | ||
Total revenue | $ 10,979,844 | $ 10,989,545 |
Costs and expenses | ||
Costs of revenue | 3,238,243 | 2,823,570 |
Sales and marketing expense | 878,657 | 1,571,275 |
Product development expense | 4,860,607 | 5,934,433 |
General and administrative expense | 4,072,580 | 4,311,815 |
Impairment loss on digital tokens | 7,262 | |
Total costs and expenses | 13,050,087 | 14,648,355 |
Loss from operations | (2,070,243) | (3,658,810) |
Interest income, net | 639,611 | 74,895 |
Other income, net | 343,045 | |
Loss from operations before income tax benefit | (1,087,587) | (3,583,915) |
Income tax benefit | 20,252 | 171,665 |
Net loss | $ (1,067,335) | $ (3,412,250) |
Net loss per share of common stock: | ||
Basic (in Dollars per share) | $ (0.12) | $ (0.35) |
Diluted (in Dollars per share) | $ (0.12) | $ (0.35) |
Weighted average number of shares of common stock used in calculating net loss per share of common stock: | ||
Basic (in Shares) | 9,222,206 | 9,638,567 |
Diluted (in Shares) | 9,222,206 | 9,638,567 |
Subscription Revenue | ||
Revenues | ||
Total revenue | $ 10,646,700 | $ 10,662,691 |
Advertising Revenue | ||
Revenues | ||
Total revenue | $ 333,144 | $ 326,854 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Shares | Treasury Shares | Stock Amount | 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 | 333,825 | 333,825 | ||||
Repurchases of common stock | (997,924) | (997,924) | ||||
Repurchases of common stock (in Shares) | (604,808) | |||||
Net income (loss) | (3,412,250) | (3,412,250) | ||||
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) | 9,227,349 | |||
Stock-based compensation expense | 234,993 | $ 234,993 | ||||
Repurchases of common stock | (7,213) | (7,213) | ||||
Repurchases of common stock (in Shares) | (5,192) | |||||
Net income (loss) | (1,067,335) | (1,067,335) | ||||
Balance at Dec. 31, 2023 | $ 9,864 | $ (1,199,337) | $ 36,208,728 | $ (14,884,568) | $ 20,134,687 | |
Balance (in Shares) at Dec. 31, 2023 | 9,864,120 | (641,963) | 9,222,157 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (1,067,335) | $ (3,412,250) |
Adjustments to reconcile net loss from operations to net cash used in operating activities: | ||
Depreciation of property and equipment | 69,599 | |
Amortization of intangible assets | 822,334 | 601,264 |
Amortization of operating lease right-of-use assets | 82,176 | 80,310 |
Impairment loss on digital tokens | 7,262 | |
Income tax benefit | 20,252 | |
Deferred tax liability | (123,114) | (171,665) |
Stock-based compensation | 234,993 | 333,825 |
Bad debt expense | 49,274 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (19,681) | 31,151 |
Operating lease liability | (82,176) | (80,310) |
Employee retention tax credit receivable, net | (114,212) | |
Prepaid expense and other current assets | (447,435) | (303,941) |
Accounts payable, accrued expenses and other current liabilities | (220,657) | (453,928) |
Deferred subscription revenue | (214,090) | 341,959 |
Net cash used in operating activities | (1,079,671) | (2,956,724) |
Cash flows from investing activities: | ||
Acquisition of ManyCam assets | (2,700,000) | |
Acquisition related costs of ManyCam assets | (242,279) | |
Payment of contingent consideration | (85,000) | |
Net cash used in investing activities | (85,000) | (2,942,279) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (7,213) | (997,924) |
Net cash used in financing activities | (7,213) | (997,924) |
Net decrease in cash and cash equivalents | (1,171,884) | (6,896,927) |
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 | 13,568,049 | 14,739,933 |
Supplemental disclosure of cash flow information: | ||
Deferred tax liability associated with the acquisition of ManyCam assets | 904,253 | |
Accrued contingent consideration | $ 85,000 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business The accompanying 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 are 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 8 patents. 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 have affected, and may continue to affect, the Company’s ability to target new customers as well as keep existing customers engaged and may ultimately have a correlating effect on its users’ discretionary spending. Additionally, the closures of certain banks in 2023 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 create additional market and economic uncertainty, which could affect the Company’s industry. Employee Retention Tax Credit Under the provisions of the extension of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), the Company was eligible for a refundable employee retention tax credit (the “ERTC”) subject to certain criteria. During the year ended December 31, 2023, the Company applied for the ERTC and recorded a receivable in the amount of $343,045, net of related costs, which was recognized in the Company’s condensed consolidated statement of operations as other income. As of December 31, 2023, the Company received an aggregate of $294,833, which was recorded as a reduction of the receivable on our condensed consolidated balance sheet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the requirements of the Security and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated upon consolidation. Recent Accounting Standards In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures In June 2016, the Financial Accounting Standards Board 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. During the year ended December 31, 2023, there were no critical accounting estimates made by management that would have a material effect on the financial statements. During the year ended December 31, 2022, the most significant accounting estimate inherent in the preparation of the financial statements included the discount rates and weighted average costs of capital used in the fair value of the ManyCam intangible assets and in assigning their respective useful lives. These fair values and estimates were based on a number of factors, including a valuation from an independent third party. Revenue Recognition In accordance with Accounting Standards and Codifications (“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 years ended December 31, 2023 and 2022, subscriptions were offered in durations of one-, 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 consolidated balance sheets. Deferred revenue at December 31, 2022 was $2,257,452, which was subsequently recognized as subscription revenue during the year ended December 31, 2023. The ending balance of deferred revenue at December 31, 2023 was $2,043,362. 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 consolidated statements of operations. Virtual gift revenue is presented as deferred revenue in the consolidated balance sheets until virtual gifts are redeemed. Virtual gift revenue was $4,522,461 and $4,550,864 for the years ended December 31, 2023 and 2022, respectively. The ending balance of deferred revenue from virtual gifts at December 31, 2023 and 2022 was $374,696 and $393,433, respectively. Net (Loss) Income Per Share Basic earnings and net (loss) income per share are computed by dividing the net (loss) income 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 Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds. The Company maintains cash in bank accounts which, at times, may exceed federally insured limits. As part of its cash management process, the Company periodically reviews the relative credit standing of these banks. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible. Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. The Company evaluates its goodwill for impairment in accordance with ASC 350, Intangibles – Goodwill and Other (as amended by ASU 2017-04) The Company tests the recorded amount of goodwill for impairment on an annual basis on December 31 of each fiscal year or more frequently if there are indicators that the fair value of the goodwill exceeds its carrying amount. The Company has one reporting unit. The Company performed a qualitative assessment and concluded that no impairment existed as of December 31, 2023 and 2022. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred taxes in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC No. 740, Accounting for Income Taxes The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of income. Accrued interest and penalties would be included on the related tax liability line in the accompanying consolidated balance sheets. The Company’s policy for global intangible low-taxed income is to treat, as a period cost, when incurred. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The IR Act was not applicable to the Company in the current year given that repurchases of stock were below the threshold required to be subject to taxation. Intangible Assets The Company’s acquired amortizable intangible assets primarily consist of the ManyCam assets acquired in June 2022, which consist of internally developed software, intellectual property (trade names, trademarks and URLs) and subscriber relationships/ customer lists. The Company’s intangible assets represent definite lived intangible assets, which are being amortized on a straight-line basis over their estimated useful lives as follows: Patents 20 years Trade names, trademarks, product names, URLs 5-10 years Internally developed software 5-7 years Non-compete agreements 3 years Subscriber/customer relationships 3-12 years The Company reviews intangible assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. No impairments were recorded on intangible assets as no impairment indicators were noted for the periods presented in these consolidated financial statements. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | 3. Intangible Assets, Net Intangible assets, net consisted of the following for the periods presented: December 31, 2023 2022 Gross Accumulated Net Gross Accumulated Net Patents $ 50,000 $ (36,250 ) $ 13,750 $ 50,000 $ (33,750 ) $ 16,250 Trade names, trademarks, product names, URLs 1,022,425 (644,390 ) 378,035 1,022,425 (562,114 ) 460,311 Internally developed software 4,180,005 (2,478,408 ) 1,701,597 4,180,005 (2,165,550 ) 2,014,455 Subscriber/customer relationships 3,553,102 (2,942,007 ) 611,095 3,553,102 (2,517,307 ) 1,035,795 Total intangible assets $ 8,805,532 $ (6,101,055 ) $ 2,704,477 $ 8,805,532 $ (5,278,721 ) $ 3,526,811 During the year ended December 31, 2023, in connection with the previously acquired ManyCam assets and pursuant to the securities purchase agreement related to such asset acquisition, the Company made an earn-out payment of $85,000 because the sales of the ManyCam software, less chargebacks and refunds, in the six-month period following the closing of the acquisition exceeded $600,000 but were less than $700,000. Amortization expense for the years ended December 31, 2023 and 2022 was $822,334 and $601,264, respectively. The aggregate amortization expense for each of the next five years and thereafter is estimated to be $821,687 in 2024, $568,529 in 2025, $382,133 in 2026, $382,133 in 2027, $382,133 in 2028, and $167,862 thereafter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 4. Income Taxes The Organization for Economic Co-operation and Development (OECD) Pillar Two Model Rules are intended to apply for tax years beginning in 2024. The Pillar Two Model Rules establishes a global minimum tax of 15% for multinational companies with consolidated revenue above €750 million. Many foreign jurisdictions have adopted the Pillar Two Model Rules and other foreign jurisdictions are in the process of enacting legislation to adopt it. The Company does not expect to be impacted by the Pillar Two Model Rules as it will not meet the consolidated revenue threshold in the near term. The components of loss before income tax benefit are as follows: December 31, 2023 2022 Domestic Operations $ (498,673 ) $ (2,683,143 ) Foreign Operations (588,914 ) (900,772 ) $ (1,087,587 ) $ (3,583,915 ) The Company’s benefit for income taxes is comprised of the following: December 31, 2023 2022 Current Federal $ - $ - State and local 6,579 15,685 Foreign 76,031 - Total Current 82,610 15,685 Deferred Federal - - State and local - - Foreign (102,862 ) (187,350 ) Change in Valuation Allowance - - Total Deferred (102,862 ) (187,350 ) Total Benefit $ (20,252 ) $ (171,665 ) The Company’s effective tax rate differs from the U.S. federal statutory income tax rate of 21 3 2023 2022 Income tax benefit at federal statutory rate 21.0 % 21.0 % Permanent Differences - % - % State and local taxes (1.8 )% (0.7 )% Valuation allowance (10.5 )% (7.6 )% Deferred tax adjustment (1.9 )% - % Share based compensation (6.4 )% (7.8 )% Foreign Income Tax Rate Differential 1.1 % 0.5 % Other 0.5 % (0.6 )% Effective tax rate 2.0 % 4.8 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2023 2022 Deferred Tax Assets: U.S. federal and state net operating losses $ 2,939,449 $ 3,436,822 Foreign net operating losses - 103,375 Share-based compensation 480,773 511,603 Amortization of intangible assets 429,651 583,727 Rent 17,291 36,413 Capitalized IRC §174 costs 1,972,960 1,134,472 Tax credits 62,969 62,969 Other 285,245 257,473 Subtotal 6,188,338 6,126,854 Less Valuation Allowance: (6,099,163 ) (5,984,591 ) Total Deferred Tax Assets 89,175 142,263 Deferred Tax Liabilities: Amortization of intangible assets (615,452 ) (820,279 ) Property and equipment (12,850 ) (31,262 ) Other (74,914 ) (7,625 ) Total Deferred Tax Liabilities (703,216 ) (859,166 ) Net Deferred Tax Liability $ (614,041 ) $ (716,903 ) In assessing the Company’s ability to recover its deferred tax assets, the Company evaluated whether it is more likely than not that some portion or the entire deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible and/or net operating losses can be utilized. The Company considered all positive and negative evidence when determining the amount of the net deferred tax assets that are more likely than not to be realized. This evidence includes, but is not limited to, historical earnings, scheduled reversal of taxable temporary differences, tax planning strategies and projected future taxable income. A significant piece of objective negative evidence evaluated was cumulative loss incurred over the three-year period ended December 31, 2023. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on the weight of available evidence, the Company determined that its U.S. deferred tax assets are not realizable on a more-likely-than-not basis and has recorded a valuation allowance against its net U.S. deferred tax assets. The Company’s valuation allowance increased by $114,572 during 2023. The Company will continue to evaluate its deferred tax assets to determine whether any changes in circumstances could affect the realization of their future benefit. If it is determined in future periods that portions of the Company’s deferred income tax assets satisfy the realization standards, the valuation allowance will be reduced accordingly. As of December 31, 2023, the Company has U.S. federal net operating loss carryforwards of approximately $12.8 million, of which $10.4 million continue to be subject to a severe annual limitation under Section 382. Approximately $1.3 million of the $2.4 million not subject to limitation under Section 382 may be used to offset 100% of future taxable income but expire in 2036-2037, if not utilized. The remaining $1.1 million not subject to limitation under Section 382 may be used to offset 80% of future taxable income and can be carried forward indefinitely. The Company applies the applicable authoritative guidance which prescribes a comprehensive model for the manner in which a company should recognize, measure, present and disclose in its financial statements all material uncertain tax positions that the Company has taken or expects to take on a tax return. As of December 31, 2023, the Company has no uncertain tax positions. As such, there are no uncertain tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months from December 31, 2023. The open tax years for the federal income tax return are 2020 through 2023. The state income tax returns have varying statutes of limitations. The open tax years relating to any of the Company’s federal and state net operating losses begin in 2020. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following for the periods presented: December 31, 2023 2022 Compensation, benefits and payroll taxes $ 91,250 $ 114,000 Other accrued expenses 134,870 111,193 Total accrued expenses and other current liabilities $ 226,120 $ 225,193 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [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 121,930 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 December 31, 2023, there were 665,335 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 years ended: December 31, 2023 2022 Expected volatility 155 – 161 % 173 – 182 % Expected life of option 5.2 – 6.2 5.2 – 6.2 Risk free interest rate 4.26 % 2.53 % Expected dividend yield 0.0 % 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 tables summarize stock option activity during the year ended December 31, 2023: Weighted Average Number of Exercise Options Price Outstanding at January 1, 2023 622,074 $ 3.71 Granted 149,000 $ 1.89 Exercised during period - - Forfeited or canceled, during the period (26,270 ) $ 1.77 Expired, during the period (3,990 ) $ 21.60 Outstanding at December 31, 2023 740,814 $ 3.32 Exercisable at December 31, 2023 550,164 $ 3.72 At December 31, 2023, there was $338,194 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted average period of 2.94 years. On December 31, 2023, the aggregate intrinsic value of stock options that were outstanding and exercisable was $136,971 and $79,371, respectively. On December 31, 2022, the aggregate intrinsic value of stock options that were outstanding and exercisable was $9,360. 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 year ended December 31, 2023, the Company granted stock options to members of the Board of Directors (other than Mr. Cook) 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 ten years. In addition to the foregoing, the Company granted a stock option to Mr. Cook to purchase an aggregate of 100,000 shares of common stock at an exercise price of $1.86. The stock option vests in four equal annual installments beginning on the first anniversary of the date of the grant and has a term of ten years. During the year ended December 31, 2023, the Company also granted options to employees to purchase an aggregate of 25,000 shares of common stock. These options have a vesting date ranging between the grant date and up to 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 years ended December 31, 2023 and 2022 was $268,200 and $636,957, respectively. Stock-based compensation expense for the Company’s stock options included in the consolidated statements of operations was as follows: Years Ended December 31, 2023 2022 Cost of revenue $ 11,750 $ 19,500 Sales and marketing expense 2,004 2,056 Product development expense 29,946 24,748 General and administrative expense 191,293 287,521 Total stock-based compensation expense $ 234,993 $ 333,825 Treasury Shares The Board of Directors approved a stock repurchase plan for up to $1,750,000 of the Company’s outstanding common stock (the “Stock Repurchase Plan”), effective as of March 29, 2022 and expiring on the one-year anniversary of such date. Under the Stock Repurchase Plan, shares may be repurchased from time-to-time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b5-1 programs, and the Stock Repurchase Plan may be suspended or discontinued at any time. The actual timing, number and value of shares repurchased will be determined by a committee of the Board of Directors at its discretion and will depend on a number of factors, including the market price of the Company’s common stock, general market and economic conditions, alternative investment opportunities and other corporate considerations. The Stock Repurchase Plan expired on March 29, 2023 pursuant to its terms and has not been renewed. As of December 31, 2023, the Company had 641,963 shares of its common stock classified as treasury shares on the Company’s consolidated balance sheets. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net (Loss) Income Per Share [Abstract] | |
Net (Loss) Income Per Share | 7. Net (Loss) Income Per Share Basic earnings and net (loss) income per share are computed by dividing the net (loss) income 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: Years Ended December 31, 2023 2022 Net loss from operations – basic and diluted $ (1,067,335 ) $ (3,412,250 ) Weighted average shares outstanding – basic 9,222,206 9,638,567 Weighted average shares outstanding – diluted 9,222,206 9,638,567 Per share data: Basic from operations $ (0.12 ) $ (0.35 ) Diluted from operations $ (0.12 ) $ (0.35 ) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 8. Leases Operating Leases On June 7, 2016, the Company entered into a lease agreement with Jericho Executive Center LLC for office space at 30 Jericho Executive Plaza in Jericho, New York, which commenced on September 1, 2016 and ran through November 30, 2021. The Company’s monthly office rent payments under the lease are currently approximately $7,081 per month. 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 modification resulted in an increase its ROU assets and lease liabilities of $0.2 million, using a discount rate of 2.30%. As of December 31, 2023, the Company had no long-term leases that were classified as financing leases. As of December 31, 2023, the Company did not have additional operating and financing leases that had not yet commenced. At December 31, 2023, the Company had operating lease liabilities of approximately $77,005 and right-of-use assets of approximately $77,005, which are included in the consolidated balance sheets. Total rent expense for the year ended December 31, 2023 was $82,447, of which $6,000 was sublease income. Total rent expense for the year ended December 31, 2022 was $83,084, of which $6,000 was sublease income. Rent expense is recorded under general and administrative expense in the consolidated statements of operations. The following table summarizes the Company’s operating leases for the periods presented: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: $ 82,176 $ 80,310 Weighted average assumptions: Remaining lease term 0.9 1.9 Discount rate 2.3 % 2.3 % As of December 31, 2023, future minimum payments under non-cancelable operating leases were as follows: For the years ending December 31, Amount 2024 $ 77,894 Total 77,894 Less: present value adjustment (889 ) Present value of minimum lease payments $ 77,005 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies 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 “Court”). 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. On June 29, 2023, the Court held a pretrial conference and denied Cisco’s motion for summary judgment. The trial is expected to be held in April of 2024. 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 December 31, 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 10. Subsequent Events Management has evaluated subsequent events or transactions occurring through the date the consolidated financial statements were issued and determined that no other events or transactions are required to be disclosed herein. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (1,067,335) | $ (3,412,250) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 14, 2023, Jason Katz, our Chief Executive Officer and a member of the Board of Directors, adopted a Rule 10b5-1 trading arrangement (the “10b5-1 Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The 10b5-1 Plan provides for the sale of up to 80,000 shares of our common stock at specified market prices, commencing on the later of (i) March 14, 2024 and (ii) the second trading day following disclosure of our financial results on Form 10-K for the fiscal year and quarter ended December 31, 2023, and ending March 15, 2025. The 10b5-1 Plan was subsequently terminated on February 7, 2024, and no sales were made pursuant to the 10b5-1 Plan. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jason Katz [Member] | |
Trading Arrangements, by Individual | |
Name | Jason Katz |
Title | Chief Executive Officer and a member of the Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Aggregate Available | 80,000 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the requirements of the Security and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated upon consolidation. |
Recent Accounting Standards | Recent Accounting Standards In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures In June 2016, the Financial Accounting Standards Board 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. During the year ended December 31, 2023, there were no critical accounting estimates made by management that would have a material effect on the financial statements. During the year ended December 31, 2022, the most significant accounting estimate inherent in the preparation of the financial statements included the discount rates and weighted average costs of capital used in the fair value of the ManyCam intangible assets and in assigning their respective useful lives. These fair values and estimates were based on a number of factors, including a valuation from an independent third party. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standards and Codifications (“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 years ended December 31, 2023 and 2022, subscriptions were offered in durations of one-, 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 consolidated balance sheets. Deferred revenue at December 31, 2022 was $2,257,452, which was subsequently recognized as subscription revenue during the year ended December 31, 2023. The ending balance of deferred revenue at December 31, 2023 was $2,043,362. 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 consolidated statements of operations. Virtual gift revenue is presented as deferred revenue in the consolidated balance sheets until virtual gifts are redeemed. Virtual gift revenue was $4,522,461 and $4,550,864 for the years ended December 31, 2023 and 2022, respectively. The ending balance of deferred revenue from virtual gifts at December 31, 2023 and 2022 was $374,696 and $393,433, respectively. |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic earnings and net (loss) income per share are computed by dividing the net (loss) income 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 |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds. The Company maintains cash in bank accounts which, at times, may exceed federally insured limits. As part of its cash management process, the Company periodically reviews the relative credit standing of these banks. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible. |
Goodwill | Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. The Company evaluates its goodwill for impairment in accordance with ASC 350, Intangibles – Goodwill and Other (as amended by ASU 2017-04) The Company tests the recorded amount of goodwill for impairment on an annual basis on December 31 of each fiscal year or more frequently if there are indicators that the fair value of the goodwill exceeds its carrying amount. The Company has one reporting unit. The Company performed a qualitative assessment and concluded that no impairment existed as of December 31, 2023 and 2022. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred taxes in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC No. 740, Accounting for Income Taxes The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of income. Accrued interest and penalties would be included on the related tax liability line in the accompanying consolidated balance sheets. The Company’s policy for global intangible low-taxed income is to treat, as a period cost, when incurred. |
Inflation Reduction Act of 2022 | Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The IR Act was not applicable to the Company in the current year given that repurchases of stock were below the threshold required to be subject to taxation. |
Intangible Assets | Intangible Assets The Company’s acquired amortizable intangible assets primarily consist of the ManyCam assets acquired in June 2022, which consist of internally developed software, intellectual property (trade names, trademarks and URLs) and subscriber relationships/ customer lists. The Company’s intangible assets represent definite lived intangible assets, which are being amortized on a straight-line basis over their estimated useful lives as follows: Patents 20 years Trade names, trademarks, product names, URLs 5-10 years Internally developed software 5-7 years Non-compete agreements 3 years Subscriber/customer relationships 3-12 years The Company reviews intangible assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets might not be recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. No impairments were recorded on intangible assets as no impairment indicators were noted for the periods presented in these consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Intangible Assets Represent Definite Lived Intangible Assets | The Company’s intangible assets represent definite lived intangible assets, which are being amortized on a straight-line basis over their estimated useful lives as follows: Patents 20 years Trade names, trademarks, product names, URLs 5-10 years Internally developed software 5-7 years Non-compete agreements 3 years Subscriber/customer relationships 3-12 years |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following for the periods presented: December 31, 2023 2022 Gross Accumulated Net Gross Accumulated Net Patents $ 50,000 $ (36,250 ) $ 13,750 $ 50,000 $ (33,750 ) $ 16,250 Trade names, trademarks, product names, URLs 1,022,425 (644,390 ) 378,035 1,022,425 (562,114 ) 460,311 Internally developed software 4,180,005 (2,478,408 ) 1,701,597 4,180,005 (2,165,550 ) 2,014,455 Subscriber/customer relationships 3,553,102 (2,942,007 ) 611,095 3,553,102 (2,517,307 ) 1,035,795 Total intangible assets $ 8,805,532 $ (6,101,055 ) $ 2,704,477 $ 8,805,532 $ (5,278,721 ) $ 3,526,811 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Components of Loss Before Income Tax Benefit | The components of loss before income tax benefit are as follows: December 31, 2023 2022 Domestic Operations $ (498,673 ) $ (2,683,143 ) Foreign Operations (588,914 ) (900,772 ) $ (1,087,587 ) $ (3,583,915 ) |
Schedule of Company’s Benefit for Income Taxes | The Company’s benefit for income taxes is comprised of the following: December 31, 2023 2022 Current Federal $ - $ - State and local 6,579 15,685 Foreign 76,031 - Total Current 82,610 15,685 Deferred Federal - - State and local - - Foreign (102,862 ) (187,350 ) Change in Valuation Allowance - - Total Deferred (102,862 ) (187,350 ) Total Benefit $ (20,252 ) $ (171,665 ) |
Schedule of Company’s Effective Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate | The Company’s effective tax rate differs from the U.S. federal statutory income tax rate of 21 3 2023 2022 Income tax benefit at federal statutory rate 21.0 % 21.0 % Permanent Differences - % - % State and local taxes (1.8 )% (0.7 )% Valuation allowance (10.5 )% (7.6 )% Deferred tax adjustment (1.9 )% - % Share based compensation (6.4 )% (7.8 )% Foreign Income Tax Rate Differential 1.1 % 0.5 % Other 0.5 % (0.6 )% Effective tax rate 2.0 % 4.8 % |
Schedule of Significant Components of the Company’s Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2023 2022 Deferred Tax Assets: U.S. federal and state net operating losses $ 2,939,449 $ 3,436,822 Foreign net operating losses - 103,375 Share-based compensation 480,773 511,603 Amortization of intangible assets 429,651 583,727 Rent 17,291 36,413 Capitalized IRC §174 costs 1,972,960 1,134,472 Tax credits 62,969 62,969 Other 285,245 257,473 Subtotal 6,188,338 6,126,854 Less Valuation Allowance: (6,099,163 ) (5,984,591 ) Total Deferred Tax Assets 89,175 142,263 Deferred Tax Liabilities: Amortization of intangible assets (615,452 ) (820,279 ) Property and equipment (12,850 ) (31,262 ) Other (74,914 ) (7,625 ) Total Deferred Tax Liabilities (703,216 ) (859,166 ) Net Deferred Tax Liability $ (614,041 ) $ (716,903 ) |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following for the periods presented: December 31, 2023 2022 Compensation, benefits and payroll taxes $ 91,250 $ 114,000 Other accrued expenses 134,870 111,193 Total accrued expenses and other current liabilities $ 226,120 $ 225,193 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Schedule of Black-Scholes Pricing Model to Estimate the Fair Value | The following table summarizes the assumptions used in the Black-Scholes pricing model to estimate the fair value of the options granted during the years ended: December 31, 2023 2022 Expected volatility 155 – 161 % 173 – 182 % Expected life of option 5.2 – 6.2 5.2 – 6.2 Risk free interest rate 4.26 % 2.53 % Expected dividend yield 0.0 % 0.0 % |
Schedule of Stock Option Activity | The following tables summarize stock option activity during the year ended December 31, 2023: Weighted Average Number of Exercise Options Price Outstanding at January 1, 2023 622,074 $ 3.71 Granted 149,000 $ 1.89 Exercised during period - - Forfeited or canceled, during the period (26,270 ) $ 1.77 Expired, during the period (3,990 ) $ 21.60 Outstanding at December 31, 2023 740,814 $ 3.32 Exercisable at December 31, 2023 550,164 $ 3.72 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for the Company’s stock options included in the consolidated statements of operations was as follows: Years Ended December 31, 2023 2022 Cost of revenue $ 11,750 $ 19,500 Sales and marketing expense 2,004 2,056 Product development expense 29,946 24,748 General and administrative expense 191,293 287,521 Total stock-based compensation expense $ 234,993 $ 333,825 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net (Loss) Income Per Share [Abstract] | |
Schedule of Net (Loss) Income Per Share | The following table summarizes the net loss per share calculation for the periods presented: Years Ended December 31, 2023 2022 Net loss from operations – basic and diluted $ (1,067,335 ) $ (3,412,250 ) Weighted average shares outstanding – basic 9,222,206 9,638,567 Weighted average shares outstanding – diluted 9,222,206 9,638,567 Per share data: Basic from operations $ (0.12 ) $ (0.35 ) Diluted from operations $ (0.12 ) $ (0.35 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases | The following table summarizes the Company’s operating leases for the periods presented: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities: $ 82,176 $ 80,310 Weighted average assumptions: Remaining lease term 0.9 1.9 Discount rate 2.3 % 2.3 % |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | As of December 31, 2023, future minimum payments under non-cancelable operating leases were as follows: For the years ending December 31, Amount 2024 $ 77,894 Total 77,894 Less: present value adjustment (889 ) Present value of minimum lease payments $ 77,005 |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization and Description of Business [Abstract] | ||
Net of related costs | $ 343,045 | |
Aggregate value | $ 294,833 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Aug. 16, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Deferred revenue | $ 374,696 | $ 393,433 | |
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. | ||
Revenues | $ 10,979,844 | 10,989,545 | |
U.S. federal tax percentage | 1% | ||
Excise tax percentage | 1% | ||
Virtual Gift [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Revenues | $ 4,522,461 | 4,550,864 | |
Subscription Revenue [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Deferred revenue | $ 2,043,362 | $ 2,257,452 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Trade names, trademarks, product names, URLs [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Trade names, trademarks, product names, URLs [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Patents [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Non-compete agreements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Subscriber/customer relationships [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Subscriber/customer relationships [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 12 years |
Internally developed software [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Internally developed software [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets Represent Definite Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets, Net (Details) [Line Items] | ||
Asset acquisition | $ 85,000 | |
Amortization expense | 822,334 | $ 601,264 |
Amortization expense - 2024 | 821,687 | |
Amortization expense - 2025 | 568,529 | |
Amortization expense - 2026 | 382,133 | |
Amortization expense - 2027 | 382,133 | |
Amortization expense - 2028 | 382,133 | |
Amortization expense - thereafter | 167,862 | |
Minimum [Member] | ||
Intangible Assets, Net (Details) [Line Items] | ||
Acquisition exceeded | 600,000 | |
Maximum [Member] | ||
Intangible Assets, Net (Details) [Line Items] | ||
Acquisition exceeded | $ 700,000 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,805,532 | $ 8,805,532 |
Accumulated Amortization | (6,101,055) | (5,278,721) |
Net Carrying Amount | 2,704,477 | 3,526,811 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,000 | 50,000 |
Accumulated Amortization | (36,250) | (33,750) |
Net Carrying Amount | 13,750 | 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 | (644,390) | (562,114) |
Net Carrying Amount | 378,035 | 460,311 |
Internally developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,180,005 | 4,180,005 |
Accumulated Amortization | (2,478,408) | (2,165,550) |
Net Carrying Amount | 1,701,597 | 2,014,455 |
Subscriber/customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,553,102 | 3,553,102 |
Accumulated Amortization | (2,942,007) | (2,517,307) |
Net Carrying Amount | $ 611,095 | $ 1,035,795 |
Income Taxes (Details)
Income Taxes (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2023 EUR (€) | Dec. 31, 2022 | Dec. 31, 2023 USD ($) | |
Income Taxes [Abstract] | |||
Global minimum tax rate | 15% | ||
Consolidated revenue tax (in Euro) | € | € 750 | ||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 21% | 21% | |
Valuation allowance (in Dollars) | $ | $ 114,572 | ||
Operating loss carry forwards description | As of December 31, 2023, the Company has U.S. federal net operating loss carryforwards of approximately $12.8 million, of which $10.4 million continue to be subject to a severe annual limitation under Section 382. Approximately $1.3 million of the $2.4 million not subject to limitation under Section 382 may be used to offset 100% of future taxable income but expire in 2036-2037, if not utilized. The remaining $1.1 million not subject to limitation under Section 382 may be used to offset 80% of future taxable income and can be carried forward indefinitely. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Components of Loss Before Income Tax Benefit - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Components of Loss Before Income Tax Benefit [Abstract] | ||
Domestic Operations | $ (498,673) | $ (2,683,143) |
Foreign Operations | (588,914) | (900,772) |
Total loss before income tax | $ (1,087,587) | $ (3,583,915) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Company’s Benefit for Income Taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
Federal | ||
State and local | 6,579 | 15,685 |
Foreign | 76,031 | |
Total Current | 82,610 | 15,685 |
Deferred | ||
Federal | ||
State and local | ||
Foreign | (102,862) | (187,350) |
Change in Valuation Allowance | ||
Total Deferred | (102,862) | (187,350) |
Total Benefit | $ (20,252) | $ (171,665) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Company’s Effective Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Company’s Effective Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate [Abstract] | ||
Income tax benefit at federal statutory rate | 21% | 21% |
Permanent Differences | ||
State and local taxes | (1.80%) | (0.70%) |
Valuation allowance | (10.50%) | (7.60%) |
Deferred tax adjustment | (1.90%) | |
Share based compensation | (6.40%) | (7.80%) |
Foreign Income Tax Rate Differential | 1.10% | 0.50% |
Other | 0.50% | (0.60%) |
Effective tax rate | 2% | 4.80% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Significant Components of the Company’s Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets: | ||
U.S. federal and state net operating losses | $ 2,939,449 | $ 3,436,822 |
Foreign net operating losses | 103,375 | |
Share-based compensation | 480,773 | 511,603 |
Amortization of intangible assets | 429,651 | 583,727 |
Rent | 17,291 | 36,413 |
Capitalized IRC §174 costs | 1,972,960 | 1,134,472 |
Tax credits | 62,969 | 62,969 |
Other | 285,245 | 257,473 |
Subtotal | 6,188,338 | 6,126,854 |
Less Valuation Allowance: | (6,099,163) | (5,984,591) |
Total Deferred Tax Assets | 89,175 | 142,263 |
Deferred Tax Liabilities: | ||
Amortization of intangible assets | (615,452) | (820,279) |
Property and equipment | (12,850) | (31,262) |
Other | (74,914) | (7,625) |
Total Deferred Tax Liabilities | (703,216) | (859,166) |
Net Deferred Tax Liability | $ (614,041) | $ (716,903) |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Compensation, benefits and payroll taxes | $ 91,250 | $ 114,000 |
Other accrued expenses | 134,870 | 111,193 |
Total accrued expenses and other current liabilities | $ 226,120 | $ 225,193 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity (Details) [Line Items] | ||
Total unrecognized compensation expense | $ 338,194 | |
Weighted average period | 2 years 11 months 8 days | |
Aggregate intrinsic value of stock options, outstanding | $ 136,971 | $ 9,360 |
Aggregate intrinsic value of stock options, exercisable | $ 79,371 | |
Exercise price | ||
Aggregate fair value of options granted | $ 268,200 | $ 636,957 |
Common stock outstanding | $ 1,750,000 | |
Common stock, treasury shares | 641,963 | 636,771 |
Employee Stock [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Purchase an aggregate of common stock | 25,000 | |
Exercise price | $ 1.94 | |
Board of Directors Chairman [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Purchase an aggregate of common stock | 24,000 | |
Exercise price of common stock | $ 1.94 | |
Mr. Cook [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Purchase an aggregate of common stock | 100,000 | |
Exercise price of common stock | $ 1.86 | |
2011 Plan [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Number of shares issued under plan | 121,930 | |
2016 Plan [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Number of shares issued under plan | 1,300,000 | |
Percentage of common stock delivered pursuant to incentive stock options | 100% | |
Number of stock available for future issuance | 665,335 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of Black-Scholes Pricing Model to Estimate the Fair Value | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity (Details) - Schedule of Black-Scholes Pricing Model to Estimate the Fair Value [Line Items] | ||
Risk free interest rate | 4.26% | 2.53% |
Expected dividend yield | 0% | 0% |
Minimum [Member] | ||
Stockholders' Equity (Details) - Schedule of Black-Scholes Pricing Model to Estimate the Fair Value [Line Items] | ||
Expected volatility | 155% | 173% |
Expected life of option (in years) | 5 years 2 months 12 days | 5 years 2 months 12 days |
Maximum [Member] | ||
Stockholders' Equity (Details) - Schedule of Black-Scholes Pricing Model to Estimate the Fair Value [Line Items] | ||
Expected volatility | 161% | 182% |
Expected life of option (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stockholders' Equity (Details_2
Stockholders' Equity (Details) - Schedule of Stock Option Activity | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Schedule of Stock Option Activity [Abstract] | |
Number of Options, Outstanding beginning balance | shares | 622,074 |
Weighted Average Exercise Price, Outstanding beginning balance | $ / shares | $ 3.71 |
Number of Options, Granted | shares | 149,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 1.89 |
Number of Options, Exercised during period | shares | |
Weighted Average Exercise Price, Exercised during period | $ / shares | |
Number of Options, Forfeited or canceled, during the period | shares | (26,270) |
Weighted Average Exercise Price, Forfeited or canceled, during the period | $ / shares | $ 1.77 |
Number of Options, Exercised during period | shares | (3,990) |
Weighted Average Exercise Price, Exercised during period | $ / shares | $ 21.6 |
Number of Options, Outstanding ending balance | shares | 740,814 |
Weighted Average Exercise Price, Outstanding ending balance | $ / shares | $ 3.32 |
Number of Options, Exercisable | shares | 550,164 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 3.72 |
Stockholders' Equity (Details_3
Stockholders' Equity (Details) - Schedule of Stock-Based Compensation Expense - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 234,993 | $ 333,825 |
Cost of revenue [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 11,750 | 19,500 |
Sales and marketing expense [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,004 | 2,056 |
Product development expense [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 29,946 | 24,748 |
General and administrative expense [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 191,293 | $ 287,521 |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Net (Loss) Income Per Share [Abstract] | ||
Exercise of outstanding stock options | 740,814 | 622,074 |
Net (Loss) Income Per Share (_2
Net (Loss) Income Per Share (Details) - Schedule of Net (Loss) Income Per Share - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Net (Loss) Income Per Share [Abstract] | ||
Net loss from operations – basic | $ (1,067,335) | $ (3,412,250) |
Weighted average shares outstanding – basic | 9,222,206 | 9,638,567 |
Weighted average shares outstanding – diluted | 9,222,206 | 9,638,567 |
Per share data: | ||
Basic from operations | $ (0.12) | $ (0.35) |
Diluted from operations | $ (0.12) | $ (0.35) |
Net (Loss) Income Per Share (_3
Net (Loss) Income Per Share (Details) - Schedule of Net (Loss) Income Per Share (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Net (Loss) Income Per Share [Abstract] | ||
Net (loss) from operations – diluted | $ (1,067,335) | $ (3,412,250) |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases (Textual) | ||
Rent payments | $ 82,447 | $ 83,084 |
Operating lease, description | 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. | |
Lease liabilities | $ 200,000 | |
Discount rate | 2.30% | |
Operating lease liabilities | $ 77,005 | 82,176 |
Operating Lease, Right-of-Use Asset | 77,005 | 159,181 |
Sublease income | 6,000 | $ 6,000 |
Office Building [Member] | ||
Leases (Textual) | ||
Rent payments | $ 7,081 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Leases - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Operating Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities: | $ 82,176 | $ 80,310 |
Weighted average assumptions: | ||
Remaining lease term | 10 months 24 days | 1 year 10 months 24 days |
Discount rate | 2.30% | 2.30% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases [Abstract] | ||
2024 | $ 77,894 | |
Total | 77,894 | |
Less: present value adjustment | (889) | |
Present value of minimum lease payments | $ 77,005 | $ 82,176 |