Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 16, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | DLT RESOLUTION, INC | |
Entity Central Index Key | 0001420368 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | No | |
Document Period End Date | Jun. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 22,667,537 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-148546 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 20-8248213 | |
Entity Address Address Line 1 | 5940 S. Rainbow Blvd. | |
Entity Address Address Line 2 | Ste 400-32132 | |
Entity Address City Or Town | Las Vegas | |
Entity Address State Or Province | NV | |
Entity Address Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 796-6363 | |
Entity Interactive Data Current | No |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 15,906 | $ 7,666 |
Accounts receivable, net of allowance for doubtful accounts of $44,730 at June 30, 2021 and $0 at December 31, 2020 | 193,253 | 346,948 |
Prepaid expenses and other current assets | 103,935 | 111,141 |
Total current assets | 313,094 | 465,755 |
Property, plant and equipment, net of accumulated depreciation | 70,877 | 77,000 |
Operating lease - right of use asset | 4,590 | 7,814 |
Intangible assets, net of accumulated amortization | 1,881,337 | 2,016,645 |
Goodwill | 982,745 | 955,854 |
Total assets | 3,252,643 | 3,523,068 |
Current liabilities | ||
Bank overdraft | 24,660 | 30,577 |
Accounts payable and accrued liabilities | 666,696 | 634,914 |
Accounts payable, related party | 15,000 | 15,000 |
Interest payable, related party | 45,238 | 41,565 |
Related party payables | 20,892 | 20,884 |
Note payable, related party | 81,500 | 81,500 |
Notes payable, current portion | 112,867 | 109,778 |
Lease obligation - operating lease | 4,186 | 6,268 |
Total current liabilities | 971,039 | 940,486 |
Notes payable, net of current portion | 5,000 | 5,000 |
Other long term liability | 845,000 | 1,887,711 |
Lease obligation - operating lease, net of current portion | 0 | 998 |
Total liabilities | 1,821,039 | 2,834,195 |
Stockholders' equity | ||
Common stock, $0.001 par value; 275,000,000 shares authorized; 26,926,287 and 25,926,287 issued; 23,111,287 and 22,111,287 outstanding at June 30, 2021 and December 31, 2020 | 26,926 | 25,926 |
Common stock subscribed | 14,000 | 14,000 |
Additional paid-in capital | 6,762,010 | 4,913,010 |
Other comprehensive income | 74,836 | 816,396 |
Treasury stock, 3,815,000 shares as of June 30, 2021 and December 31, 2020, at cost | (5,300) | (5,300) |
Accumulated deficit | (5,504,868) | (5,139,159) |
Total stockholders' equity | 1,431,604 | 688,873 |
Total liabilities and stockholders' equity | 3,252,643 | 3,523,068 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock value | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock value | $ 64,000 | $ 64,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Stockholders' deficit | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 26,926,287 | 25,926,287 |
Common stock, shares outstanding | 23,111,287 | 22,111,287 |
Treasury stock shares | 3,815,000 | 3,815,000 |
Series A Convertible Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 25,000 |
Preferred stock, shares outstanding | 0 | 25,000 |
Series B Convertible Preferred Stock [Member] | ||
Stockholders' deficit | ||
Preferred stock, shares par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 64,000 | 64,000 |
Preferred stock, shares outstanding | 64,000 | 64,000 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unaudited Condensed Consolidated Statements of Operations | ||||
Revenue | $ 415,331 | $ 549,453 | $ 855,414 | $ 977,800 |
Cost of revenue and operating expenses | ||||
Cost of revenue | 370,045 | 263,828 | 733,591 | 502,514 |
General and administrative | 142,309 | 172,643 | 230,823 | 368,888 |
Depreciation and amortization | 105,632 | 151,765 | 205,736 | 267,033 |
Professional fees | (20,095) | 31,850 | 45,788 | 64,421 |
Goodwill impairment loss | 0 | (4,768) | 0 | 154,419 |
Total operating expenses | 289,946 | 614,804 | 1,215,938 | 1,364,629 |
Loss from operations | (182,560) | (65,351) | (360,524) | (386,829) |
Other expense | ||||
Foreign exchange loss | (10) | (3) | (55) | (3) |
Interest expense | (2,836) | (11,482) | (5,130) | (18,906) |
Total other expense | (2,846) | (11,485) | (5,185) | (18,909) |
Net loss | $ (185,406) | $ (76,836) | $ (365,709) | $ (405,738) |
Basic loss per common share - net loss | $ (0.01) | $ 0 | $ (0.01) | $ (0.02) |
Diluted loss per common share - net loss | $ (0.01) | $ 0 | $ (0.01) | $ (0.02) |
Weighted average basic shares outstanding | 26,381,843 | 25,926,287 | 26,154,065 | 25,676,802 |
Weighted average diluted shares outstanding | 26,381,843 | 25,926,287 | 26,154,065 | 25,676,802 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unaudited Condensed Consolidated Statements of Comprehensive Loss | ||||
Net loss | $ (185,406) | $ (76,836) | $ (365,709) | $ (405,738) |
Other comprehensive loss | ||||
Gain on adjusted value of other long-term liability | (310,000) | (230,000) | (610,000) | 24 |
Foreign currency translation adjustment | (100,017) | (84,001) | (131,560) | (299,352) |
Total other comprehensive loss | (410,017) | (314,001) | (741,560) | (299,328) |
Comprehensive loss | $ (595,423) | $ (29,339) | $ (1,107,269) | $ (705,066) |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Changes in Stockholders Equity - USD ($) | Total | Series B Preferred Stocks [Member] | Common Stock [Member] | Common Stock Subscribed | Additional Paid-In Capital | Treasury Stock [Member] | Other comprehensive income [Member] | Accumulated Deficit [Member] |
Balance, shares at Dec. 31, 2019 | 64,000 | 24,395,037 | ||||||
Balance, amount at Dec. 31, 2019 | $ (368,300) | $ 64,000 | $ 24,395 | $ 0 | $ 4,218,265 | $ (5,300) | $ (34,430) | $ (4,635,230) |
Issuance of common stock for acquisition, shares | 1,500,000 | |||||||
Issuance of common stock for acquisition, amount | 2,400,000 | 0 | $ 1,500 | 0 | 2,398,500 | 0 | 0 | 0 |
Issuance of common stock for cash proceeds, shares | 31,250 | |||||||
Issuance of common stock for cash proceeds, amount | 25,000 | $ 31 | 0 | 24,969 | 0 | 0 | 0 | |
Foreign currency translation adjustment | (299,352) | 0 | 0 | 0 | 0 | 0 | (299,352) | 0 |
Gain on adjusted value of other long-term liability | 24 | 0 | 0 | 0 | 0 | 0 | 24 | 0 |
Net loss | (405,738) | $ 0 | $ 0 | 0 | 0 | 0 | 0 | (405,738) |
Balance, shares at Jun. 30, 2020 | 64,000 | 25,926,287 | ||||||
Balance, amount at Jun. 30, 2020 | 1,365,634 | $ 64,000 | $ 25,926 | 14,000 | 6,641,734 | (5,300) | (333,758) | (5,040,968) |
Balance, shares at Dec. 31, 2020 | 64,000 | 25,926,287 | ||||||
Balance, amount at Dec. 31, 2020 | 688,873 | $ 64,000 | $ 25,926 | 14,000 | 4,913,010 | (5,300) | 816,396 | (5,139,159) |
Issuance of common stock for acquisition, shares | 1,000,000 | |||||||
Issuance of common stock for acquisition, amount | 1,850,000 | 0 | $ 1,000 | 0 | 1,849,000 | 0 | 0 | 0 |
Foreign currency translation adjustment | (131,560) | 0 | 0 | 0 | 0 | 0 | (131,560) | 0 |
Gain on adjusted value of other long-term liability | (610,000) | |||||||
Net loss | (365,709) | 0 | 0 | 0 | 0 | 0 | (365,709) | |
Loss on adjusted value of other long-term liability | (610,000) | $ 0 | $ 0 | 0 | 0 | 0 | (610,000) | 0 |
Balance, shares at Jun. 30, 2021 | 64,000 | 26,926,287 | ||||||
Balance, amount at Jun. 30, 2021 | $ 1,431,604 | $ 64,000 | $ 26,926 | $ 14,000 | $ 6,762,010 | $ (5,300) | $ 74,836 | $ (5,504,868) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (365,709) | $ (405,738) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 205,737 | 267,034 |
Goodwill impairment loss | 0 | 154,419 |
Changes in operating assets and liabilities | ||
Accounts receivable | 163,185 | (113,666) |
Lease obligation | (3,284) | (3,233) |
Interest payable, related party | 3,673 | 3,688 |
Accounts payable and accrued liabilities | 21,461 | 70,296 |
Repayments to related parties | (38,323) | (25,772) |
Prepaid expenses and other current assets | 10,437 | 0 |
Net cash used in operating activities | (2,823) | (52,972) |
Net cash used in investing activities | ||
Purchase of equipment | 0 | (749) |
Net cash used in investing activities | 0 | (749) |
Cash flows from financing activities | ||
Proceeds from notes payable | 0 | 86,631 |
Proceeds from (repayment of) bank overdrafts | 9,420 | (48,538) |
Proceeds from sale of common stock | 0 | 25,000 |
Proceeds from sale of common stock subscription | 0 | 14,000 |
Net cash provided by financing activities | 9,420 | 77,093 |
Net change in cash | 6,597 | 23,373 |
Effect of exchange rate on cash | 1,643 | 1,351 |
Cash at beginning of period | 7,666 | 13,140 |
Cash at end of period | 15,906 | 37,864 |
Supplemental cash flow information | ||
Cash paid for interest | 0 | 0 |
Cash paid for income taxes | 0 | 0 |
Non-cash investing and financing activities | ||
Other long term liability entered into for acquisition of Union Strategies, Inc. | 0 | 1,370,000 |
Common shares issued for acquisition of Union Strategies, Inc. | 1,850,000 | 2,400,000 |
Net of Union Strategies, Inc. assets acquired and liabilities assumed | $ 0 | $ 4,000,000 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Significant Accounting Policies | |
Note 1 - Organization and Significant Accounting Policies | Note 1 – Organization and Significant Accounting Policies DLT Resolution Inc. (“DLT, the “Company”, “we” and “our”) operates in three high-tech industry segments: Blockchain Applications; Telecommunications; and Data Services which includes Image Capture, Data Collection, Data Phone Center Services, and Payment Processing. The Company offers secure data management, Information Technology (IT) and other telecommunications services in Canada and the United States. The Company operates a Health Information Exchange providing the ability to request and retrieve medical information and records while meeting all of today’s Security & Compliance demands for HIPAA, PIPEDA and PHIPA. Through our acquisition of Union Strategies, Inc. (“USI”), the Company operates a business focused on designing, installing and maintaining telephony, data, video, storage, and LAN/WAN networks. USI’s clients encompass K-12 and higher education institutions, trades industry organizations, and local government entities having memberships ranging from 100 to 10,000 people that utilize products and services that USI provides by deploying a variety of technologies to keep client networks up and running efficiently. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flow from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management’s plans in regards to this matter include raising additional equity financing and borrowing funds under a private credit facility and/or other credit sources. Interim Condensed Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and in conformity with the instructions to Form 10-Q and Article 8 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these condensed consolidated financial statements are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements included in this document have been prepared on the same basis as the annual consolidated financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with US GAAP and SEC regulations for interim financial statements. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that we will have for any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to those statements for the year ended December 31, 2020 included in our Annual Report on Form 10-K as filed with the SEC on May 10, 2021. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income taxes Income taxes are provided for using the liability method of accounting in accordance with FASB ASC Topic 740 (formally SFAS No. 109 “Accounting for Income Taxes”). A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. At June 30, 2021, there were no uncertain tax positions that require accrual. Revenue Recognition The Company follows ASC 606 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue upon the transfer of promised services to customers in amounts that reflect the consideration to which the Company expects to be entitled the transfer of services. The Company considers revenue earned when all the following criteria are met: (i) the contract with the customer has been identified, (ii) the performance obligations have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to the performance obligations, and (v) the performance obligations have been satisfied. The Company primarily generates revenues through the sale of products through its website and at industry tradeshows. Net Income (Loss) Per Share Net loss per share is calculated in accordance with FASB ASC topic 260. Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period, assuming conversion or exercise of all potentially dilutive securities outstanding during each reporting period presented. Potentially dilutive securities are not presented or used in the computation of diluted loss per share on the statement of operations for periods when the Company incurs net losses, as their effect would be anti-dilutive. As of June 30, 2021 and 2020, the Company had 64,000 shares of Series B Convertible Preferred Stock issued and outstanding, which were convertible into 12,800 shares of the Company’s common stock. As of June 30, 2020, the Company expects to issue an additional 500,000 restricted common shares of stock from a recent acquisition. See Note 2. Foreign Currency Translation The functional currency of the Company’s subsidiaries in Canada is the Canadian Dollar. The subsidiaries’ assets and liabilities have been translated to U.S. dollars using exchange rates of 0.806190 and 0.784129 in effect at the balance sheet dates of June 30, 2021 and December 31, 2020, respectively. Unaudited condensed consolidated statements of operations amounts have been translated using the annual weighted average exchange rates of 0.814408 for the six months ended June 30, 2021 and 0.721915 for the six months ended June 30, 2020. Resulting gains or losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in other income (expense). Foreign currency transaction losses recognized for the six-month periods ended June 30, 2021 and 2020 were ($55) and ($3), respectively. Fair Value of Financial Instruments Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of non-performance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values. Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions | |
Note 2 - Acquisitions | Note 2 – Acquisitions Acquisition of 1922861 Ontario Inc. On April 12, 2018, the Company entered into and closed the transactions contemplated by the definitive asset purchase agreement and plan of re-organization by and among the Company, 1922861 Ontario Inc. a corporation organized under the laws of Ontario (“ 1922861 Ontario Inc. In addition to the consideration on closing, an additional 500,000 restricted shares of Company Common Stock may potentially be issued upon the acquired base generating CAD $500,000 in cumulated gross sales with a 10% pre-tax profit. The Company has allotted 24 months to achieve this milestone. There is full acceleration to allow for full vesting as quickly as the cumulative sales milestones are reached. The Company applied the acquisition method to the business combination and valued each of the assets acquired (cash, accounts receivable, equipment, customer relationships, software, domain names and non-compete agreements) and liabilities assumed (accounts payable and related party payable) at fair value as of the acquisition date. The carrying values of cash, accounts receivable, accounts payable and related party payable were deemed to be fair value as of the acquisition date. The Company determined the fair value of the equipment to be historical net book value. The preliminary allocation of the purchase price was based on estimates of the fair value of the assets and liabilities assumed based on provisional amounts. However, the allocation of excess purchase and the amounts allocated to intangible assets are now as per valuation of assets and liabilities performed by independent valuer. Under the purchase agreement, the Company issued 1,000,000 shares of Common Stock valued at $417,815 and committed to issue an additional 500,000 shares of Common Stock at certain milestones, which was determined to have a fair value with mark to market pricing of DLT closing stock price as of December 31, 2020 and June 30, 2021. The obligation to issue the 500,000 shares of Company Common Stock is shown as an “other long-term liabilities” on the face of the balance sheet and was valued at $845,000 and $647,711 as of June 30, 2021 and December 31, 2020, respectively. The following table shows the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: ASSETS ACQUIRED Accounts receivable $ 18,663 Customer list 103,255 Developed technology 321,679 Domain and trade name 3,971 Non-compete 37,330 Goodwill 169,896 TOTAL ASSETS ACQUIRED $ 654,794 LIABILITIES ASSUMED Accounts payable 22,197 HST payable 2,147 TOTAL LIABILITIES ASSUMED 24,344 NET ASSETS ACQUIRED $ 630,450 Acquisition of Union Strategies Inc. On January 30, 2020, the Company entered into transactions contemplated by the definitive share for share exchange agreement and plan of re-organization (the “Purchase Agreement”) by and among the Company, Union Strategies. Inc. (“USI”), the stockholders of USI and other parties signatory thereto to acquire all the issued and outstanding capital stock of USI for 1,500,000 shares of the Company’s restricted Common Stock (the “Closing Shares”). The acquisition resulted in USI becoming a wholly-owned subsidiary of the Company. In the event that USI’s gross revenue for 2020 exceeds CAD $3,100,000 and it generates a minimum $75,000 in EBITDA (the “Performance Targets”), the Company agreed to issue an additional 1,000,000 shares of restricted Company Common Stock (“the Contingent Shares”) as additional purchase price consideration, which the Company estimates is probable that the Performance Targets will be achieved. Based on the $1.60 closing share price of the Company’s Common Stock on January 30, 2020, the Closing Shares are valued at $2,400,000 and the Contingent Shares are valued at $1,600,000, for a total purchase price consideration of $4,000,000. The Company applied the acquisition method to the business combination and valued each of the assets acquired and liabilities assumed at fair value as of the acquisition date. The carrying values of accounts receivable, property and equipment, right to use asset, accounts payable, HST payable, accrued liabilities and lease obligation were deemed to be fair value as of the acquisition date. The preliminary allocation of the purchase price is based on estimates of the fair value of the assets and liabilities assumed based on provisional amounts. However, the estimates of the fair value of the assets acquired and liabilities assumed are subject to revision based on the results of their valuation performed by an independent valuer. Under the purchase agreement, the Company issued 1,500,000 shares of Common Stock and committed to issue an additional 1,000,000 shares of Common Stock at certain milestones, which was determined to have a fair value with mark to market pricing of DLT closing stock price as of December 31, 2020 and May 20, 2021, being the date that the Company issued the 1,000,000 shares. The obligation to issue the 1,000,000 shares of Company Common Stock is shown as an “other long-term liabilities” on the face of the balance sheet and was valued at $0 and $1,240,000 as of June 30, 2021 and December 31, 2020, respectively. The following table shows the estimated fair values of USI’s assets acquired and liabilities assumed at the January 30, 2020 date of acquisition: ASSETS ACQUIRED Accounts receivable, net $ 163,138 Property and equipment, net 91,506 Right to use asset, net 14,001 Customer list 2,073,740 Developed technology 2,073,740 TOTAL ASSETS ACQUIRED $ 4,416,126 LIABILITIES ASSUMED Accounts payable, HST payable and accrued liabilities 402,582 Lease obligation 13,544 TOTAL LIABILITIES ASSUMED 416,126 NET ASSETS ACQUIRED $ 4,000,000 Pro Forma The following table presents the unaudited pro forma results of the Company for the years ended December 31, 2019 and 2018 as if the acquisitions of USI and the combined 1922861 Ontario Inc. and DLT Resolution Corp. occurred on January 1, 2018. The pro forma results include estimates and assumptions which management believes are necessary. However, pro forma results do not include an anticipated cost savings or their effects of the planned integration of USI and 1922861 Ontario Inc. and are not necessarily indicative of the result that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future. The unaudited pro forma revenue and net loss for USI was approximately $2,730,000 and $175,000, respectively, for 2019. The unaudited pro forma revenue and net income for USI was approximately $2,700,000 and $88,000, respectively, for 2018. The unaudited pro forma revenue and net loss for the combined 1922861 Ontario Inc. and DLT Resolution Corp. was approximately $953,000 and $374,000, respectively, for the year ended December 31, 2018. The pro forma information includes adjustments for the amortization of intangible assets. Year ended December 31, 2019 2018 (unaudited) (unaudited) Revenue $ 3,193,000 $ 3,653,000 Net loss (1,730,000 ) (802,000 ) USI and 1922861 Ontario Inc. did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and net losses. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets | |
Note 3 - Goodwill and Intangible Assets | Note 3 – Goodwill and Intangible Assets Due to a sustained decline in the market capitalization of our common stock during the first quarter of 2020, we performed an interim goodwill impairment test. Management considered that, along with other possible factors affecting the assessment of the Company’s reporting unit for the purposes of performing a goodwill impairment assessment, including management assumptions about expected future revenue forecasts and discount rates, changes in the overall economy, trends in the stock price, estimated control premium, other operating conditions, and the effect of changes in estimates and assumptions that could materially affect the determination of fair value and goodwill. As a result of the significant decline in the current market capitalization despite any of the other positive factors contemplated and relatively little change in our ongoing business operations, the outcome of this goodwill impairment test resulted in a charge for the impairment of goodwill of $159,419 recorded in the unaudited condensed consolidated financial statements for the six months ended June 30, 2020. We amortize identifiable intangible assets on a straight-line basis over their estimated useful lives. As of June 30, 2021 and December 31, 2020, identifiable intangibles were as follows: June 30, 2021 December 31, 2020 Developed technology $ 469,202 $ 456,363 Customer relationships 1,036,760 1,008,390 Website 119,000 119,000 Domain and trade name 141,889 138,007 Non-compete 868,266 844,507 Accumulated amortization (753,780 ) (549,622 ) Total intangible assets, net $ 1,881,337 $ 2,016,645 Expected future amortization expense related to identifiable intangibles based on our carrying amount as of June 30, 2021 for the following five years is as follows (in thousands): For the Twelve Months ended June 30, 2021 $ 339,767 2022 332,906 2023 332,906 2024 316,778 2025 116,259 Thereafter 442,721 $ 1,881,337 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Note 4 - Notes Payable | Note 4 – Notes Payable On August 1, 2017, the Company issued a non-interest bearing $5,000 note payable due on July 1, 2019 to a third party in exchange for Company Common Stock held by the third party. As of June 30, 2020, the note is unpaid. |
Other Long-term Liabilities
Other Long-term Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Long-term Liabilities | |
Note 5 - Other Long-term Liabilities | Note 5 – Other Long-term Liabilities Other long-term liabilities consist of the Company’s obligations to issue shares of its Common Stock pursuant to recent acquisitions. See Note 2. As of June 30, 2021, other long-term liabilities consisted of $84,000 for shares issuable for the Acquisition of 1922861 Ontario Inc. As of December 31, 2020, total other long-term liabilities consisted of $647,711 for shares issuable for the Acquisition of 1922861 Ontario Inc. and $1,240,000 for the shares issuable for the acquisition of USI. On May 20, 2021, the Company issued 1,000,000 shares of its Common Stock to extinguish the liability in connection with the USI acquisition. The remaining liability is subject to mark to market accounting based on the market price of DLT shares of Common Stock and will be extinguished once the shares are issued. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity | |
Note 6 - Stockholders' Equity | Note 6 – Stockholders’ Equity Common Stock On January 13, 2020, the Company issued 31,250 shares of restricted Company Common Stock to a third party individual in a stock subscription agreement for $25,000 in cash. On January 13, 2020, the Company issued 1,500,000 shares of restricted Common Stock pursuant to the Purchase Agreement to acquire USI. On May 20, 2021, the Company issued 1,000,000 shares of its Common Stock to extinguish the liability in connection with the USI acquisition. See Note 2. Common stock subscribed The Company sold a subscription to purchase 14,000 shares of its Common Stock for $14,000 on April 24, 2020. To date, the shares have not been issued to the purchaser. Series A Convertible Preferred Stock The Company is authorized to issue 5,000,000 shares of Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock can be converted to common shares at the option of the holder at a rate of $0.10 per share. There were no shares of series A convertible preferred stock issued and outstanding as of June 30, 2021 and December 31, 2020. Series B Convertible Preferred Stock The Company is authorized to issue 500,000 shares of Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock can be converted to common shares at the option of the holder at a rate of $0.20 per share. There were 64,000 shares of series B convertible preferred stock issued and outstanding as of June 30, 2021 and December 31, 2020. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | |
Note 7 - Related Party Transactions | Note 7 - Related Party Transactions No compensation was incurred for the services of the Company’s directors or executives during the periods ended June 30, 20201 and 2020. As of June 30, 2021 and December 31, 2020, the Company had outstanding amounts payable to a related party payables of $20,892 and $20,884. The obligations are unsecured, non-interest bearing, due on demand and payable in Canadian dollars, with the change in the liability from December 31, 2020 to June 30, 2021 attributable to the change in the exchange rate for U.S. and Canadian dollars. The Company has a note payable to a related party as settlement for consulting services. The note carries interest of 9% compounded annually and is due on demand. As of June 30, 2021 and December 31, 2020, $81,500 of principal and $45,238 and $41,565, of accrued interest was due, respectively. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2021 | |
Concentrations | |
Note 8 - Concentrations | Note 8 – Concentrations During the three-month and six-month periods ended June 30, 2021 and 2020, no single customer accounted for more than 10% of our total revenue for the respective periods. As of June 30, 2021, one customer had an outstanding accounts receivable balance that was 21% of our total accounts receivable at that time. As of December 31, 2020, one customer had an outstanding accounts receivable balance that was 15% of our total accounts receivable at that time. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Note 9 - Commitments and Contingencies | Note 9 – Commitments and Contingencies Leases Commitment Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. USI has an operating lease for its Edmonton, Canada facility that started in March 2019 and terminates in February 2022. There was no sublease rental income for the six-month periods ended June 30, 2021 and 2020. USI paid approximately $3,284 against the Lease obligation in the six months ended June 30, 2021. USI’s lease agreement does not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. ROU lease asset and lease liability for the operating lease is recorded in the balance sheet as follows: As of June 30, 2021 Operating lease - right of use asset $ 4,590 Lease obligations — operating leases, current portion $ 4,186 Lease obligations — operating leases, net of current portion - Total lease liability $ 4,186 Weighted average remaining lease term (in years) 0.7 Weighted average discount rate 7.75 % Future lease payments included in the measurement of lease liabilities on the unaudited balance sheet as of June 30, 2020, for the following five fiscal years and thereafter were as follows: For the year ending December 31, 2021 $ 3,160 2022 1,026 Total future minimum lease payments 4,186 Present value adjustment 973 Total $ 5,169 Payroll taxes A subsidiary of the Company incurs employer payroll taxes and withholds payroll taxes from employee compensation and is required to remit the funds to Canadian government authorities on a timely basis. The subsidiary has not remitted the payroll taxes and carries the obligation as a current liability. The subsidiary intends to remit the funds as soon as it has the financial ability. The government authorities may assess penalties and interest on the subsidiary. No provision on the balance sheet is carried for the possible assessment. Management estimates that the amount of a potential assessment would not be material to the financial statements as of June 30, 2021 and the six months then ended. Other Commitments As permitted under Canadian Corporations Business Act, USI agrees to indemnify officers and directors for certain events or occurrences while the officer or director is, or was, serving at USI’s request in this capacity. The term of the indemnification period is indefinite. There is no limit on the amount of future payments USI could be required to make under these indemnification agreements; however, USI maintains insurance policy coverage that may enable USI to recover a portion of any amounts paid. As a result of USI’s insurance policy coverage, management believes the estimated fair value of these indemnifications is minimal. Accordingly, USI did not record any indemnification liabilities as of June 30, 2021 and December 31, 2020. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization and Significant Accounting Policies | |
Interim Condensed Consolidated Financial Statements | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and in conformity with the instructions to Form 10-Q and Article 8 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these condensed consolidated financial statements are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements included in this document have been prepared on the same basis as the annual consolidated financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with US GAAP and SEC regulations for interim financial statements. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that we will have for any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to those statements for the year ended December 31, 2020 included in our Annual Report on Form 10-K as filed with the SEC on May 10, 2021. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income taxes | Income taxes are provided for using the liability method of accounting in accordance with FASB ASC Topic 740 (formally SFAS No. 109 “Accounting for Income Taxes”). A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. At June 30, 2021, there were no uncertain tax positions that require accrual. |
Revenue Recognition | The Company follows ASC 606 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue upon the transfer of promised services to customers in amounts that reflect the consideration to which the Company expects to be entitled the transfer of services. The Company considers revenue earned when all the following criteria are met: (i) the contract with the customer has been identified, (ii) the performance obligations have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to the performance obligations, and (v) the performance obligations have been satisfied. The Company primarily generates revenues through the sale of products through its website and at industry tradeshows. |
Net Income (Loss) Per Share | Net loss per share is calculated in accordance with FASB ASC topic 260. Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period, assuming conversion or exercise of all potentially dilutive securities outstanding during each reporting period presented. Potentially dilutive securities are not presented or used in the computation of diluted loss per share on the statement of operations for periods when the Company incurs net losses, as their effect would be anti-dilutive. As of June 30, 2021 and 2020, the Company had 64,000 shares of Series B Convertible Preferred Stock issued and outstanding, which were convertible into 12,800 shares of the Company’s common stock. As of June 30, 2020, the Company expects to issue an additional 500,000 restricted common shares of stock from a recent acquisition. See Note 2. |
Foreign Currency Translation | The functional currency of the Company’s subsidiaries in Canada is the Canadian Dollar. The subsidiaries’ assets and liabilities have been translated to U.S. dollars using exchange rates of 0.806190 and 0.784129 in effect at the balance sheet dates of June 30, 2021 and December 31, 2020, respectively. Unaudited condensed consolidated statements of operations amounts have been translated using the annual weighted average exchange rates of 0.814408 for the six months ended June 30, 2021 and 0.721915 for the six months ended June 30, 2020. Resulting gains or losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in other income (expense). Foreign currency transaction losses recognized for the six-month periods ended June 30, 2021 and 2020 were ($55) and ($3), respectively. |
Fair Value of Financial Instruments | Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments. Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of non-performance, which includes, among other things, the Company’s credit risk. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values. Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions | |
Schedule of estimated fair values assets and liabilities | ASSETS ACQUIRED Accounts receivable $ 18,663 Customer list 103,255 Developed technology 321,679 Domain and trade name 3,971 Non-compete 37,330 Goodwill 169,896 TOTAL ASSETS ACQUIRED $ 654,794 LIABILITIES ASSUMED Accounts payable 22,197 HST payable 2,147 TOTAL LIABILITIES ASSUMED 24,344 NET ASSETS ACQUIRED $ 630,450 |
Schedule of estimated fair values assets acquired and liabilities | ASSETS ACQUIRED Accounts receivable, net $ 163,138 Property and equipment, net 91,506 Right to use asset, net 14,001 Customer list 2,073,740 Developed technology 2,073,740 TOTAL ASSETS ACQUIRED $ 4,416,126 LIABILITIES ASSUMED Accounts payable, HST payable and accrued liabilities 402,582 Lease obligation 13,544 TOTAL LIABILITIES ASSUMED 416,126 NET ASSETS ACQUIRED $ 4,000,000 |
Schedule of condensed statement of operations | Year ended December 31, 2019 2018 (unaudited) (unaudited) Revenue $ 3,193,000 $ 3,653,000 Net loss (1,730,000 ) (802,000 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets (Tables) | |
Scheduole of assets Amortization on a straight-line basis | June 30, 2021 December 31, 2020 Developed technology $ 469,202 $ 456,363 Customer relationships 1,036,760 1,008,390 Website 119,000 119,000 Domain and trade name 141,889 138,007 Non-compete 868,266 844,507 Accumulated amortization (753,780 ) (549,622 ) Total intangible assets, net $ 1,881,337 $ 2,016,645 |
Schedule of finite lived intangible assets future amortization expense | For the Twelve Months ended June 30, 2021 $ 339,767 2022 332,906 2023 332,906 2024 316,778 2025 116,259 Thereafter 442,721 $ 1,881,337 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Schedule of lease asset and lease liability for the operating lease | As of June 30, 2021 Operating lease - right of use asset $ 4,590 Lease obligations — operating leases, current portion $ 4,186 Lease obligations — operating leases, net of current portion - Total lease liability $ 4,186 Weighted average remaining lease term (in years) 0.7 Weighted average discount rate 7.75 % |
Schedule of Future lease payments | For the year ending December 31, 2021 $ 3,160 2022 1,026 Total future minimum lease payments 4,186 Present value adjustment 973 Total $ 5,169 |
Organization and Significant _3
Organization and Significant Accounting Policies (Details Narrative) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Dec. 31, 2020shares | |
Weighted average exchange rates | 0.806190 | 0.806190 | 0.784129 | ||
Foreign exchange loss | $ | $ (10) | $ (3) | $ (55) | $ (3) | |
Foreign currency translation exchange rate | 0.814408 | 0.721915 | |||
Restricted Stock [Member] | |||||
Issuance of common stock for acquisitions, shares | 500,000 | ||||
Series B Convertible Preferred Stock [Member] | Convertible note [Member] | |||||
Convertible preferred stock shares issued upon conversion of common stock | 12,800 | 12,800 | |||
Series B Convertible Preferred Stock [Member] | |||||
Preferred stock shares issued | 64,000 | 64,000 | 64,000 | ||
Preferred stock shares outstanding | 64,000 | 64,000 | 64,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | Jun. 30, 2021 | Jan. 30, 2020 |
ASSETS ACQUIRED | ||
Accounts receivable | $ 18,663 | $ 163,138 |
Customer list | 103,255 | 2,073,740 |
Developed technology | 321,679 | 2,073,740 |
Domain and trade name | 3,971 | |
Non-compete | 37,330 | |
Goodwill | 169,896 | |
TOTAL ASSETS ACQUIRED | 654,794 | |
LIABILITIES ASSUMED | ||
Accounts payable | 22,197 | 402,582 |
HST payable | 2,147 | |
TOTAL LIABILITIES ASSUMED | 24,344 | 416,126 |
NET ASSETS ACQUIRED | $ 630,450 | $ 4,000,000 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) | Jun. 30, 2021 | Jan. 30, 2020 |
ASSETS ACQUIRED | ||
Accounts receivable, net | $ 18,663 | $ 163,138 |
Property and equipment, net | 91,506 | |
Right to use asset, net | 14,001 | |
Customer list | 103,255 | 2,073,740 |
Developed technology | 321,679 | 2,073,740 |
TOTAL ASSETS ACQUIRED | 4,416,126 | |
LIABILITIES ASSUMED | ||
Accounts payable, HST payable and accrued liabilities | 22,197 | 402,582 |
Lease obligation | 13,544 | |
TOTAL LIABILITIES ASSUMED | 24,344 | 416,126 |
NET ASSETS ACQUIRED | $ 630,450 | $ 4,000,000 |
Acquisitions (Details 2)
Acquisitions (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisitions (Details) | |||
Revenue | $ 3,193,000 | $ 3,653,000 | |
Net loss | $ (1,730,000) | $ (1,730,000) | $ (802,000) |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) | Jan. 13, 2020shares | Apr. 12, 2018USD ($)shares | May 20, 2020shares | Jan. 30, 2020USD ($)$ / sharesshares | Sep. 21, 2018USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2021CAD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2020shares |
Net income (loss) | $ (1,730,000) | $ (1,730,000) | $ (802,000) | ||||||||
Other long-term liabilities | $ 845,000 | 647,711 | |||||||||
Unaudited pro forma revenue | $ 3,193,000 | 3,653,000 | |||||||||
Common stock value | $ 26,926 | $ 25,926 | |||||||||
Common stock shares issued | shares | 26,926,287 | 25,926,287 | |||||||||
Asset Purchase Agreement [Member] | Milestone [Member] | |||||||||||
Restricted common shares issued, value | $ 212,520 | $ 205,295 | |||||||||
Restricted common shares issued, shares | shares | 500,000 | 500,000 | |||||||||
Issuance of common stock for acquisitions, shares | shares | 1,500,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
ProForma [Member] | 2018 [Member] | |||||||||||
Unaudited pro forma revenue | $ 2,700,000 | $ 88,000 | 3,653,000 | ||||||||
Non-Controlling Interest [Member] | |||||||||||
Additional issue of common stock, shares | shares | 500,000 | 500,000 | 500,000 | ||||||||
Obligation to issue shares | shares | 500,000 | 500,000 | |||||||||
Common stock value | $ 417,815 | ||||||||||
Gross sales | $ 500,000 | ||||||||||
Common stock shares issued | shares | 1,000,000 | ||||||||||
ProForma [Member] | 2019 [Member] | |||||||||||
Unaudited pro forma revenue | $ 2,730,000 | $ 175,000 | 3,653,000 | ||||||||
1922861 Ontario Inc. and DLT Resolution Corp. [Member] | |||||||||||
Net income (loss) | (374,000) | ||||||||||
Other long term liability | $ 0 | $ 1,240,000 | |||||||||
Unaudited pro forma revenue | $ 953,000 | ||||||||||
1922861 Ontario Inc. [Member] | |||||||||||
Additional purchase price consideration description | USI’s gross revenue for 2020 exceeds CAD $3,100,000 and it generates a minimum $75,000 in EBITDA | ||||||||||
Closing share price | $ / shares | $ 1.60 | ||||||||||
Purchase price consideration | $ 4,000,000 | ||||||||||
Restricted common shares issued, value | 2,400,000 | ||||||||||
Contingent Shares value | $ 1,600,000 | ||||||||||
Restricted common shares issued, shares | shares | 1,500,000 | ||||||||||
Additional restricted stock issued | shares | 1,000,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details ) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Accumulated amortization | $ (753,780) | $ (549,622) |
Total intangible assets, net | 1,881,337 | 2,016,645 |
Non-compete [Member] | ||
Total intangible assets, net | 868,266 | 844,507 |
Domain and trade name [Member] | ||
Total intangible assets, net | 141,889 | 138,007 |
Website [Member] | ||
Total intangible assets, net | 119,000 | 119,000 |
Customer Relationships [Member] | ||
Total intangible assets, net | 1,036,760 | 1,008,390 |
Developed Technology [Member] | ||
Total intangible assets, net | $ 469,202 | $ 456,363 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) | Jun. 30, 2021USD ($) |
For the Twelve Months ended March 31, | |
2021 | $ 339,767 |
2022 | 332,906 |
2023 | 332,906 |
2024 | 316,778 |
2025 | 116,259 |
Thereafter | 442,721 |
Total | $ 1,881,337 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Narrative) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill and Intangible Assets (Details Narrative) | |
Goodwill impairment loss | $ 159,419 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - Unrelated Party [Member] - August 1, 2017 [Member] | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Notes payable | $ 5,000 |
Related party note, maturity date | July 1, 2019 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details Narrative) - USD ($) | Jan. 13, 2020 | May 20, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Other long term liability | $ 845,000 | $ 1,887,711 | ||
Union Strategies Inc [Member] | ||||
Other long term liability | 1,240,000 | 1,240,000 | ||
1922861 Ontario Inc. [Member] | ||||
Other long term liability | $ 84,000 | $ 647,711 | ||
Restricted Stock [Member] | ||||
Issuance of common stock for acquisitions, shares | 500,000 | |||
Restricted Stock [Member] | Union Strategies Inc [Member] | ||||
Issuance of common stock for acquisitions, shares | 1,500,000 | 1,000,000 |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - USD ($) | Jan. 13, 2020 | May 20, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Apr. 24, 2020 |
Common Stock, Shares, Subscriptions | 14,000 | ||||
Common Stock, Value, Subscriptions | $ 14,000 | $ 14,000 | $ 14,000 | ||
Restricted Stock [Member] | |||||
Issuance of common stock for acquisitions, shares | 500,000 | ||||
Issuance of common stock for cash proceeds, shares | 31,250 | ||||
Issuance of common stock for cash proceeds, amount | $ 25,000 | ||||
Restricted Stock [Member] | Union Strategies Inc [Member] | |||||
Issuance of common stock for acquisitions, shares | 1,500,000 | 1,000,000 | |||
Series A Convertible Preferred Stock [Member] | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||
Preferred stock, shares issued | 0 | 25,000 | |||
Preferred stock, shares outstanding | 0 | 25,000 | |||
Convertible Preferred stock, conversion price | $ 0.10 | $ 0.10 | |||
Series B Convertible Preferred Stock [Member] | |||||
Preferred stock, shares authorized | 500,000 | 500,000 | |||
Preferred stock, shares issued | 64,000 | 64,000 | |||
Preferred stock, shares outstanding | 64,000 | 64,000 | |||
Convertible Preferred stock, conversion price | $ 0.20 | $ 0.20 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Accrues interest rate | 9 | |
Related party payables | $ 20,892 | $ 20,884 |
Notes payable, related party | 81,500 | 81,500 |
Interest payable, related party | $ 45,238 | $ 41,565 |
Concentrations (Details Narrati
Concentrations (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue [Member] | |||||
Concentrations credit risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts Receivable [Member] | One Customer [Member] | |||||
Concentrations credit risk percentage | 21.00% | 15.00% |
Commitments and contingencies_2
Commitments and contingencies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||
Operating lease - right of use asset | $ 4,590 | $ 7,814 |
Lease obligations - operating leases, current portion | 4,186 | |
Lease obligations - operating leases, current portion | 0 | |
Total lease liability | $ 4,186 | |
Weighted average remaining lease term (in years) | 8 months 12 days | |
Weighted average discount rate | 7.75 |
Commitments and contingencies_3
Commitments and contingencies (Details 1) | Jun. 30, 2021USD ($) |
Future lease payments | |
2021 | $ 3,160 |
2022 | 1,026 |
Total future minimum lease payments | 4,186 |
Present value adjustment | 973 |
Total | $ 5,169 |
Commitments and contingencies_4
Commitments and contingencies (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies | ||
Lease obligation | $ (3,284) | $ (3,233) |