Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-18730 | |
Entity Registrant Name | DarkPulse, Inc. | |
Entity Central Index Key | 0000866439 | |
Entity Tax Identification Number | 87-0472109 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 815 Walker Street | |
Entity Address, Address Line Two | Suite 1155 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | (800) | |
Local Phone Number | 436-1436 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,715,709,292 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash | $ 2,512,668 | $ 3,658,846 |
Accounts receivable, net | 3,673,186 | 4,223,990 |
Inventory | 1,670,979 | 865,019 |
Unbilled revenue | 716,144 | 497,773 |
Other current assets | 312,118 | 181,000 |
TOTAL CURRENT ASSETS | 8,885,095 | 9,426,628 |
NON-CURRENT ASSETS: | ||
Property and equipment, net | 2,203,635 | 1,787,824 |
Operating lease right-of-use assets | 2,836,128 | 2,620,993 |
Patents, net | 317,448 | 342,962 |
Intangible assets | 3,420,547 | 3,886,588 |
Goodwill | 16,057,628 | 17,088,501 |
Other assets, net | 347,864 | 282,884 |
TOTAL NON-CURRENT ASSETS | 25,183,250 | 26,009,752 |
TOTAL ASSETS | 34,068,345 | 35,436,380 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 4,108,584 | 7,844,271 |
Convertible notes, net | 378,263 | 378,263 |
Notes payable | 2,000,000 | 2,000,000 |
Customer deposits | 2,432,245 | 2,802,809 |
Derivative liability | 366,597 | 533,753 |
Contract liabilities | 4,480,912 | 3,216,562 |
Operating lease liabilities - current | 1,963,054 | 364,105 |
Other current liabilities | 1,740,721 | 2,407,750 |
TOTAL CURRENT LIABILITIES | 17,470,376 | 19,547,513 |
NON-CURRENT LIABILITIES: | ||
Secured debenture | 1,165,365 | 1,172,364 |
Operating lease liabilities – non-current | 1,190,866 | 2,474,530 |
Other liabilities – non-current | 587,506 | 676,331 |
TOTAL NON-CURRENT LIABILITIES | 2,943,737 | 4,323,225 |
TOTAL LIABILITIES | 20,414,113 | 23,870,738 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock (par value $0.0001), 20,000,000,000 shares authorized, 5,594,156,736 and 5,197,821,885 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 559,417 | 519,782 |
Treasury stock, 100,000 shares at June 30, 2022 and December 31, 2021 | (1,000) | (1,000) |
Paid-in capital in excess of par value | 32,824,942 | 20,248,703 |
Non-controlling interest in variable interest entity and subsidiary | 2,358,227 | 2,358,227 |
Accumulated other comprehensive income | (1,241,906) | (284,463) |
Accumulated deficit | (20,846,332) | (11,276,490) |
TOTAL STOCKHOLDERS’ EQUITY | 13,654,232 | 11,565,642 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 34,068,345 | 35,436,380 |
Preferred Class A [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred Stock, Value, Issued | 1 | 0 |
Class D Voting Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred Stock, Value, Issued | $ 883 | $ 883 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Common stock par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 |
Common stock, shares issued | 5,594,156,736 | 5,197,821,885 |
Common stock, shares outstanding | 5,594,156,736 | 5,197,821,885 |
Treasury stock shares | 100,000 | 100,000 |
Preferred Class A [Member] | ||
Preferred stock - par value | $ 0.01 | $ 0.01 |
Preferred stock - shares authorized | 100 | 100 |
Preferred stock - shares issued | 100 | 0 |
Preferred stock - shares outstanding | 100 | 0 |
Class D Voting Preferred Stock [Member] | ||
Preferred stock - par value | $ 0.01 | $ 0.01 |
Preferred stock - shares authorized | 100,000 | 100,000 |
Preferred stock - shares issued | 88,235 | 88,235 |
Preferred stock - shares outstanding | 88,235 | 88,235 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUE | $ 4,435,043 | $ 0 | $ 6,453,376 | $ 0 |
COST OF GOODS SOLD | 3,965,910 | 0 | 6,314,477 | 0 |
GROSS PROFIT | 469,133 | 0 | 138,899 | 0 |
OPERATING EXPENSES: | ||||
Selling, general and administrative | 1,102,404 | 95,165 | 2,080,613 | 124,853 |
Salaries, wages and payroll taxes | 1,376,176 | 0 | 3,348,244 | 0 |
Professional fees | 1,480,599 | 255,819 | 3,018,702 | 372,922 |
Depreciation and amortization | 7,405 | 12,757 | 236,019 | 25,514 |
TOTAL OPERATING EXPENSES | 3,966,584 | 363,741 | 8,683,578 | 523,289 |
NET OPERATING LOSS | (3,497,451) | (363,741) | (8,544,679) | (523,289) |
OTHER INCOME (EXPENSE): | ||||
Interest expense | (852) | (318,921) | (518,606) | (350,584) |
Gain on the forgiveness of debt | 0 | 0 | 35,750 | 0 |
Restructuring costs | (501,431) | 0 | (501,431) | 0 |
Change in fair market of derivative liabilities | 42,049 | 358,440 | 167,156 | 327,496 |
Gain/(Loss) on convertible notes | 0 | 138,615 | 0 | 308,896 |
Foreign currency exchange rate variance | (227,887) | 0 | (208,033) | 0 |
TOTAL INCOME (EXPENSE) | (688,121) | 178,134 | (1,025,164) | 285,808 |
NET LOSS | (4,185,572) | (185,607) | (9,569,843) | (237,481) |
Net loss attributable to noncontrolling interests in variable interest entity and subsidiary | 234,725 | 0 | 348,406 | 0 |
Net loss attributable to Company stockholders | $ (3,950,847) | $ (185,607) | $ (9,221,437) | $ (237,481) |
LOSS PER SHARE: | ||||
Basic | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic | 5,480,767,991 | 4,740,200,371 | 5,385,964,474 | 4,599,529,434 |
Diluted | 5,480,767,991 | 4,740,200,371 | 5,385,964,474 | 4,599,529,434 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
NET LOSS | $ (3,950,847) | $ (185,607) | $ (9,221,437) | $ (237,481) |
OTHER COMPREHENSIVE GAIN (LOSS) | ||||
Unrealized Gain (Loss) on Foreign Exchange | (737,874) | (16,154) | (219,569) | (34,063) |
COMPREHENSIVE LOSS | $ (4,688,721) | $ (201,761) | $ (9,441,006) | $ (271,544) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Preferred Stock A [Member] | Preferred Stock D [Member] | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Noncontrolling Interest Insubsidiary [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 883 | $ 408,876 | $ (1,000) | $ 1,805,813 | $ (12,439) | $ 315,832 | $ (6,450,170) | $ (3,932,205) | ||
Beginning Balance, shares at Dec. 31, 2020 | 88,235 | 4,088,762,156 | ||||||||
Conversion of convertible notes | $ 60,100 | 189,839 | 249,939 | |||||||
Conversion of convertible notes, shares | 600,999,995 | |||||||||
Foreign currency adjustment | (17,909) | (17,909) | ||||||||
Net loss | (51,874) | (51,874) | ||||||||
Ending balance, value at Mar. 31, 2021 | $ 883 | $ 468,976 | (1,000) | 1,995,652 | (12,439) | 297,923 | (6,502,044) | (3,752,049) | ||
Ending Balance, shares at Mar. 31, 2021 | 88,235 | 4,689,762,151 | ||||||||
Beginning balance, value at Dec. 31, 2020 | $ 883 | $ 408,876 | (1,000) | 1,805,813 | (12,439) | 315,832 | (6,450,170) | (3,932,205) | ||
Beginning Balance, shares at Dec. 31, 2020 | 88,235 | 4,088,762,156 | ||||||||
Net loss | (237,481) | |||||||||
Ending balance, value at Jun. 30, 2021 | $ 883 | $ 477,033 | (1,000) | 2,363,848 | (12,439) | 281,769 | (6,687,651) | (3,577,557) | ||
Ending Balance, shares at Jun. 30, 2021 | 88,235 | 4,770,327,191 | ||||||||
Beginning balance, value at Mar. 31, 2021 | $ 883 | $ 468,976 | (1,000) | 1,995,652 | (12,439) | 297,923 | (6,502,044) | (3,752,049) | ||
Beginning Balance, shares at Mar. 31, 2021 | 88,235 | 4,689,762,151 | ||||||||
Conversion of convertible notes | $ 2,057 | 124,863 | 126,920 | |||||||
Conversion of convertible notes, shares | 20,565,040 | |||||||||
Stock based loan acquisition cost | $ 6,000 | 243,333 | 249,333 | |||||||
Stock based loan acquisition cost, shares | 60,000,000 | |||||||||
Foreign currency adjustment | (16,154) | (16,154) | ||||||||
Net loss | (185,607) | (185,607) | ||||||||
Ending balance, value at Jun. 30, 2021 | $ 883 | $ 477,033 | (1,000) | 2,363,848 | (12,439) | 281,769 | (6,687,651) | (3,577,557) | ||
Ending Balance, shares at Jun. 30, 2021 | 88,235 | 4,770,327,191 | ||||||||
Beginning balance, value at Dec. 31, 2021 | $ 883 | $ 519,782 | (1,000) | 20,248,703 | 2,358,227 | (284,463) | (11,276,490) | 11,565,642 | ||
Beginning Balance, shares at Dec. 31, 2021 | 88,235 | 5,197,821,885 | ||||||||
Common stock issued for cash | $ 20,012 | 7,679,988 | 7,700,000 | |||||||
Common stock issued for cash, shares | 200,121,061 | |||||||||
Foreign currency adjustment | (219,569) | (219,569) | ||||||||
Net loss | (5,384,270) | (5,384,270) | ||||||||
Ending balance, value at Mar. 31, 2022 | $ 883 | $ 539,794 | (1,000) | 27,928,691 | 2,358,227 | (504,032) | (16,660,760) | 13,661,803 | ||
Ending Balance, shares at Mar. 31, 2022 | 88,235 | 5,397,942,946 | ||||||||
Beginning balance, value at Dec. 31, 2021 | $ 883 | $ 519,782 | (1,000) | 20,248,703 | 2,358,227 | (284,463) | (11,276,490) | 11,565,642 | ||
Beginning Balance, shares at Dec. 31, 2021 | 88,235 | 5,197,821,885 | ||||||||
Net loss | (9,569,843) | |||||||||
Ending balance, value at Jun. 30, 2022 | $ 1 | $ 883 | $ 559,417 | (1,000) | 32,824,943 | 2,358,227 | (1,241,906) | (20,846,332) | 13,654,232 | |
Ending Balance, shares at Jun. 30, 2022 | 100 | 88,235 | 5,594,156,736 | |||||||
Beginning balance, value at Mar. 31, 2022 | $ 883 | $ 539,794 | (1,000) | 27,928,691 | 2,358,227 | (504,032) | (16,660,760) | 13,661,803 | ||
Beginning Balance, shares at Mar. 31, 2022 | 88,235 | 5,397,942,946 | ||||||||
Common stock issued for cash | $ 19,250 | 4,696,625 | 4,715,875 | |||||||
Common stock issued for cash, shares | 192,488,404 | |||||||||
Common stock issued for TerraData acquisition | $ 373 | 199,627 | 200,000 | |||||||
Common stock issued for TerraData acquisition, shares | 3,725,386 | |||||||||
Stock based compensation | $ 1 | (1) | ||||||||
Stock based compensation, shares | 100 | |||||||||
Foreign currency adjustment | (737,874) | (737,874) | ||||||||
Net loss | (4,185,572) | (4,185,572) | ||||||||
Ending balance, value at Jun. 30, 2022 | $ 1 | $ 883 | $ 559,417 | $ (1,000) | $ 32,824,943 | $ 2,358,227 | $ (1,241,906) | $ (20,846,332) | $ 13,654,232 | |
Ending Balance, shares at Jun. 30, 2022 | 100 | 88,235 | 5,594,156,736 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (9,569,843) | $ (237,481) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 236,020 | 25,514 |
Amortization of loan acquisition costs | 0 | (480,450) |
Stock based loan acquisition costs | 0 | 249,333 |
Gain on the extinguishment of debt | (35,750) | 0 |
Restructuring costs | 501,431 | 0 |
Operating lease expense | (215,135) | 0 |
Amortization of debt discount | 0 | 171,554 |
Derivative liability | (167,156) | (327,496) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 550,803 | 0 |
Inventory | (805,960) | 0 |
Unbilled revenue | (218,371) | 0 |
Contract liability | 1,264,350 | 0 |
Other current assets | (173,891) | 0 |
Customer deposits | (370,564) | 0 |
Accounts payable and accrued expenses | (3,120,422) | (113,585) |
Operating lease liabilities | 315,285 | 0 |
Other current liabilities | (755,854) | 0 |
Net cash used by operating activities | (12,565,057) | (712,611) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (438,429) | 0 |
Investment in demo box | 0 | (87,864) |
Deposits | (64,980) | (4,000) |
Net cash used by investing activities | (503,409) | (91,864) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 12,415,875 | 0 |
Proceeds from convertible debentures | 0 | 1,102,700 |
Payments on notes payable | 0 | (150,000) |
Net cash provided by financing activities | 12,415,874 | 952,700 |
NET INCREASE (DECREASE) IN CASH | (652,591) | 148,225 |
Effect of exchange rate on cash | (493,587) | 0 |
CASH, beginning of period | 3,658,846 | 337 |
CASH, end of period | 2,512,668 | 148,562 |
Non-cash finance and investing activities for the six months ended June 30: | ||
Stock issued for acquisition of TerraData | 200,000 | 0 |
Stock issued for convertible notes payable and accrued interest | 0 | 376,860 |
Cash paid during the six months ended June 30: | ||
Interest | 0 | 0 |
Income taxes | $ 0 | $ 0 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The consolidated financial statements as of December 31, 2021 have been audited by an independent registered public accounting firm. The accounting policies and procedures employed in the preparation of these condensed consolidated financial statements have been derived from the audited financial statements of the Company for the year ended December 31, 2021, which are contained in Form 10-K as filed with the Securities and Exchange Commission on April 15, 2022. The consolidated balance sheet as of December 31, 2021 was derived from those financial statements. Basis of Presentation and Principles of Consolidation The consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”) and the rules and regulations of the U.S Securities and Exchange Commission for Interim Financial Information. The condensed consolidated financial statements of the Company include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. All adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2022, and the results of operations for three and six months and cash flows for the six months ended June 30, 2022 have been included. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. Description of Business DarkPulse, Inc. (“DPI” or “Company”) is a technology company incorporated in 1989 as Klever Marketing, Inc. (“Klever”). Its’ wholly-owned subsidiary, DarkPulse Technologies Inc. (“DPTI”), originally started as a technology spinout from the University of New Brunswick, Fredericton, Canada. The Company’s security and infrastructure monitoring systems have been installed into the Honcut Bridge in Marysville, California creating the first intelligent bridge. Additional applications of this technology will include border security, pipelines, the oil and gas industry, aviation & aerospace and mine safety. Current uses of fiber optic distributed sensor technology have been limited to quasi-static, long-term structural health monitoring due to the time required to obtain the data and its poor precision. The Company’s patented BOTDA dark-pulse sensor technology allows for the monitoring of highly dynamic environments due to its greater resolution and accuracy. The Company’s operating units consist of, Optilan HoldCo 3 Limited, a company headquartered in Coventry, United Kingdom (“Optilan”) whose focus is in telecommunications, energy, rail, critical network infrastructure, pipeline integrity systems, renewables and security; Remote Intelligence, Limited Liability Company, a company headquartered in Pennsylvania who provides unmanned aerial drone and unmanned ground crawler (UGC) services to a variety of clients from industrial mapping and ecosystem services, to search and rescue, to pipeline security; Wildlife Specialists, Limited Liability Company, a company headquartered in Pennsylvania who provides clients with comprehensive wildlife and environmental assessment, planning, and monitoring services; TerraData Unmanned, PLLC, a company headquartered in Florida who custom manufactures NDAA compliant drones and unmanned ground crawlers to meet the needs of its customers; and TJM Electronics West, Inc., a company headquartered in Arizona who is a U.S. manufacturer and tester of advanced electronics, cables and sub-assemblies specializing in advanced package and complex CCA and hardware. On April 27, 2018, Klever entered into an Agreement and Plan of Merger (the “Merger Agreement” or the “Merger”) involving Klever as the surviving parent corporation and acquiring a privately held New Brunswick corporation known as DarkPulse Technologies Inc. as its wholly owned subsidiary. On July 18, 2018, the parties closed the Merger Agreement, as amended on July 7, 2018, and the name of the Company was subsequently changed to DarkPulse, Inc. With the change of control of the Company, the Merger is being be accounted for as a recapitalization in a manner similar to a reverse acquisition. On July 20, 2018, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the State of Delaware, changing the name of the Company to DarkPulse, Inc. The Company filed a corporate action notification with the Financial Industry Regulatory Authority (FINRA), and the Company's ticker symbol was changed to DPLS. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. Going Concern Uncertainty As shown in the accompanying financial statements, during the six months ended June 30, 2022, the Company reported a net loss of $ 9,569,843 8,585,281 2,512,668 The Company will require additional funding during the next twelve months to finance the growth of its current operations and achieve its strategic objectives. These factors, as well as the uncertain conditions that the Company faces relative to capital raising activities, create substantial doubt as to the Company’s ability to continue as a going concern. The Company is seeking to raise additional capital principally through private placement offerings and is targeting strategic partners in an effort to finalize the development of its products and generate revenues. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements or expansion of its operations. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations through calendar year 2022. However, management cannot make any assurances that such financing will be secured. Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities, preferred deemed dividend and common stock issued for services. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with high credit quality financial institutions. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. Foreign Currency Translation The Company’s reporting currency is US Dollars. The accounts of one of the Company’s subsidiaries is maintained using the appropriate local currency, British Pound (“GBP”) as the functional currency. The accounts of one of the Company’s subsidiaries is maintained using the appropriate local currency, Canadian Dollar (“CAD”) as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders' equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the periods ended June 30, 2022 closing rate at 1.216007 1.299973 1.353583 1.375671 The relevant translation rates are as follows: for the periods ended June 30, 2022 closing rate at 1.2872 1.2788 1.2794 1.2534 Long-Lived Assets and Goodwill In accordance with ASC 350-30-65, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: · Significant underperformance relative to expected historical or projected future operating results; · Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and · Significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. Property and Equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. The estimated useful lives of property and equipment are generally as follows: Schedule of estimated useful lives Years Office furniture and fixtures 4 Plant and equipment 4 8 Leasehold Improvements 10 Motor Vehicles 3 Revenue Recognition The Company’s revenues are generated primarily from the sale of our products, which consist primarily of advanced technology solutions for integrated communications and security systems. At contract inception, we assess the goods and services promised in the contract with customers and identify a performance obligation for each. To determine the performance obligation, we consider all products and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. The timing of satisfaction of the performance obligation is not subject to significant judgment. We measure revenue as the amount of consideration expected to be received in exchange for transferring goods and services. We generally recognize product revenues at the time of shipment, provided that all other revenue recognition criteria have been met. The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. In accordance with ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient Contract liabilities is shown separately in the unaudited consolidated balance sheets as current liabilities. At June 30, 2022 and December 31, 2021, we had contract liabilities of $ 4,480,912 3,216,562 Cost of Product Sales and Services Cost of sales consists primarily of materials, airtime and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred to install our products and train customer personnel, and customer service and third-party original equipment manufacturer costs to provide continuing support to our customers. There are certain costs which are deferred and recorded as prepaids, until such revenue is recognized. Refer to revenue recognition above as to what constitutes deferred revenue. Concentration of Credit Risk The Company has no significant concentrations of credit risk. Related Parties The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases In calculating the right of use asset and lease liability, the Company has elected to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and recognizes rent expense on a straight-line basis over the lease term. Derivative Financial Instruments The Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and, if so, whether to bifurcate the conversion feature and account for it as a separate derivative liability. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a lattice model, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months after the balance sheet date. Restructuring Costs The Company accounts for settlement of employment contracts and one-time salary expenses, such as severance, as restructuring costs when incurred due to specific restructuring event. For the quarter ended June 30, 2022, the Company recognized $501,431 related to the settlement of employment contracts and severance due to employment changes in our subsidiary, Optilan. Beneficial Conversion Features The Company evaluates the conversion feature for whether it was beneficial as described in ASC 470-30. The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the shares of common stock at the commitment date to be received upon conversion. Fair Value of Financial Instruments The carrying amounts of the Company's financial assets and liabilities, such as cash, prepaid expenses, and accruals approximate their fair values because of the short maturity of these instruments. The Company believes the carrying value of its secured debenture payable approximates fair value because the terms were negotiated at arm’s length. Stock-based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 718, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Further, ASC Topic 718, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, such as the repricing of share options, which would revalue those options and the accounting for the cancellation of an equity award whether a replacement award or other valuable consideration is issued in conjunction with the cancellation. If not, the cancellation is viewed as a replacement and not a modification, with a repurchase price of $0. Income (Loss) Per Common Share The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. In periods where the Company has a net loss, all dilutive securities are excluded. For the six months ended June 30, 2022, there were no stock options outstanding. For the six months ended June 30, 2022, common stock equivalents related to convertible preferred stock and convertible debt have not been included in the calculation of diluted loss per common share because they are anti-dilutive. Therefore, basic loss per common share is the same as diluted loss per common share. There are 28,316,441 Recently Issued Accounting Pronouncements The Company has reviewed the accounting pronouncements issued during the six months ended June 30, 2022 and concluded they were either not applicable or not expected to have a material impact on the Company’s condensed consolidated financial statements. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 2 – REVENUE The following table is a summary of the Company’s timing of revenue recognition for the three and six months ended June 30, 2022 and 2021: Schedule of timing of revenue recognition Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Timing of revenue recognition: Services and products transferred at a point in time $ 4,435,043 $ – $ 6,453,376 $ – Services and products transferred over time – – – – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – The Company disaggregates revenue by source and geographic destination to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenue by source consisted of the following for the three and six months ended June 30, 2022 and 2021: Schedule of revenue by source consisted Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue by products and services: Products $ 712,449 $ – $ 1,110,076 $ – Services 3,722,594 – 5,343,300 – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – Revenue by geographic destination consisted of the following for the three and six months ended June 30, 2022 and 2021: Schedule of revenue by geographic destination Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue by geography: North America $ 373,062 $ – $ 534,434 $ – International 4,061,981 – 5,918,942 – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – Contract Balances The Company records contract assets when it has a right to consideration and records accounts receivable when it has an unconditional right to consideration. Contract liabilities consist of cash payments received (or unconditional rights to receive cash) in advance of fulfilling performance obligations. As of June 30, 2022, the Company did not have a contract assets balance. The following table is a summary of the Company’s opening and closing balances of contract liabilities related to contracts with customers. Schedule of contract liabilities related to contracts with customers Total Balance at December 31, 2021 $ 3,216,562 Additions through advance billings to or payments from vendors 3,782,297 Revenue recognized from current period advance billings to or payments from vendors (2,517,947 ) Balance at June 30, 2022 $ 4,480,912 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of June 30, 2022 and December 31, 2021: Schedule of accounts receivable June 30, December 31, 2022 2021 Accounts receivable $ 3,673,186 $ 4,223,990 Less: Allowance for doubtful accounts – – Total accounts receivable $ 3,673,186 $ 4,223,990 |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 – INVENTORY Inventory consisted of the following as of June 30, 2022 and December 31, 2021: Schedule of inventory June 30, December 31, 2022 2021 Raw materials $ 139,217 $ 416,180 Work in progress 1,484,127 436,891 Finished goods 47,635 11,948 Total inventory 1,670,979 865,019 Reserve – – Total inventory, net $ 1,670,979 $ 865,019 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of June 30, 2022 and December 31, 2021: Schedule of property, plant and equipment June 30, December 31, 2022 2021 Property and equipment $ 2,449,490 $ 1,867,794 Leasehold improvements 46,934 42,396 2,496,424 1,910,190 Less - accumulated depreciation (292,789 ) (122,366 ) $ 2,203,635 $ 1,787,824 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following as of June 30, 2022 and December 31, 2021: Schedule of accounts payable and accrued liabilities June 30, December 31, 2022 2021 Accounts payable $ 3,399,145 $ 7,209,945 Accrued liabilities 709,439 634,326 Total accounts payable and accrued expenses $ 4,108,584 $ 7,844,271 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | NOTE 7 – LEASES We adopted ASC 842 “Leases” using the modified retrospective approach, electing the practical expedient that allows us not to restate our comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. The following was included in our balance sheet as of June 30, 2022: Schedule of operating leases Operating leases June 30, 2022 Assets ROU operating lease assets $ 2,836,128 Liabilities Current portion of operating lease $ 1,963,054 Operating lease, net of current portion $ 1,190,866 Total operating lease liabilities $ 3,153,920 The weighted average remaining lease term and weighted average discount rate at June 30, 2022 were as follows: Schedule of weighted average remaining lease term and weighted average discount rate Weighted average remaining lease term (years) June 30, 2022 Operating leases 7.78 Weighted average discount rate Operating leases 6.00 Operating Leases On March 9, 2022, the Company entered into an operating lease agreement to rent office space in Houston, Texas. This ten-year agreement commenced March 9. 2022 with an annual rent of approximately $ 81,000 The following table reconciles future minimum operating lease payments to the discounted lease liability as of June 30, 2022: Schedule of future minimum operating lease payments 2022 254,917 2023 532,341 2024 518,059 2025 528,043 2026 and later 2,163,300 Total lease payments 3,996,660 Less imputed interest (842,740 ) Total lease obligations 3,153,920 Less current obligations (1,963,054 ) Long-term lease obligations $ 1,190,866 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2022: Schedule of changes in carrying amount of goodwill Total Balance at December 31, 2021 $ 17,088,501 Exchange rate variation (1,030,873 ) Balance at June 30, 2022 $ 16,057,628 Intangible Assets - Intrusion Detection Intellectual Property The Company relies on patent laws and restrictions on disclosure to protect its intellectual property rights. As of June 30, 2022, the Company held three U.S. and foreign patents on its intrusion detection technology, which expire in calendar years 2025 through 2034 (depending on the payment of maintenance fees). The DPTI issued patents cover a System and Method for Brillouin Analysis, a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation System Sensor and Method. Maintenance of intellectual property rights and the protection thereof is important to our business. Any patents that may be issued may not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents. Other parties may independently develop similar or competing technology or design around any patents that may be issued to the Company. The Company cannot be certain that the steps it has taken will prevent the misappropriation of its intellectual property, particularly in foreign countries where the laws may not protect proprietary rights as fully as in the United States. Further, the Company may be required to enforce its intellectual property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion of management's attention. Additionally, there may be existing patents of which the Company is unaware that could be pertinent to its business, and it is not possible to know whether there are patent applications pending that the Company's products might infringe upon, since these applications are often not publicly available until a patent is issued or published. For the six months ended June 30, 2022 and 2021, the Company amortized $ 25,514 25,514 Schedule of future amortization of intangible assets 2022 $ 25,514 2023 51,028 2024 51,028 2025 51,028 2026 51,028 Thereafter 87,822 Total $ 317,448 |
DEBT AGREEMENTS
DEBT AGREEMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AGREEMENTS | NOTE 9 – DEBT AGREEMENTS Secured Debenture DPTI issued a convertible Debenture to the University in exchange for the Patents assigned to the Company, in the amount of Canadian $1,500,000, or US $1,491,923 on December 16, 2010, the date of the Debenture. On April 24, 2017 DPTI issued a replacement secured term Debenture in the same C$1,500,000 amount as the original Debenture. The interest rate is the Bank of Canada Prime overnight rate plus 1% per annum. The Debenture had an initial required payment of Canadian $42,000 (US$33,385) due on April 24, 2018 for reimbursement to the University of its research and development costs, and this has been paid. Interest-only maintenance payments are due annually starting after April 24, 2018. Payment of the principal begins on the earlier of (a) three years following two consecutive quarters of positive earnings before interest, taxes, depreciation and amortization, (b) six years from April 24, 2017, or (c) in the event DPTI fails to raise defined capital amounts or secure defined contract amounts by April 24 in the years 2018, 2019, and 2020. The Company has raised funds in excess of the amount required by April 24, 2018. The principal repayment amounts will be due yearly over a six-year period in the amount of Canadian Dollars $62,500. Based on the exchange rate between the Canadian Dollar and the U.S. Dollar on June 30, 2022, the quarterly principal repayment amounts will be US$49,750. The Debenture is secured by the Patents assigned by the University to DPTI by an Assignment Agreement on December 16, 2010. DPTI has pledged the Patents, and granted a lien on them pursuant to an Escrow Agreement dated April 24, 2017, between DPTI and the University. The Debenture was initially recorded at the $1,491,923 equivalent US Dollar amount of Canadian $1,500,000 as of December 16, 2010, the date of the original Debenture. The liability is being adjusted quarterly based on the current exchange value of the Canadian dollar to the US dollar at the end of each quarter. The adjustment is recorded as unrealized gain or loss in the change of the value of the two currencies during the quarter. The amounts recorded as an unrealized loss for the three months ended June 30, 2022 and 2021, were $ 29,297 17,909 For the six months ended June 30, 2022, and 2021, the Company recorded interest expense of $ 24,854 26,746 As of June 30, 2022 the debenture liability totaled $ 1,165,365 Future minimum required payments over the next 5 years and thereafter are as follows: Schedule of future minimum debt payments Period ending June 30, 2023 $ – 2024 – 2025 – 2026 – 2027 and after 1,165,365 Total $ 1,165,365 Convertible Debt Securities The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of June 30, 2022. Management determined the expected volatility of 155.72%, a risk-free rate of interest of 2.8%, and contractual lives of the debt of six months. The table below details the Company's four outstanding convertible notes, with totals for the face amount, amortization of discount, initial loss, change in the fair market value, and the derivative liability. Schedule of debt Face Debt Initial Change Derivative Amount Discount Loss in FMV 6/30/2022 $ 90,228 $ – $ 58,959 $ (13,320 ) $ 85,792 162,150 – 74,429 (23,938 ) 154,178 72,488 – 11,381 (10,701 ) 68,924 53,397 – 7,850 5,910 57,703 Subtotal 378,263 – 152,619 (42,049 ) 366,597 Transaction expense – – – – – $ 378,263 $ – $ 152,619 $ (42,049 ) $ 366,597 As of June 30, 2022 and December 31, 2021 respectively, there was $ 378,263 0 366,597 533,753 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 10 - STOCKHOLDERS' EQUITY As of June 30, 2022, there were 5,594,156,736 Preferred Stock In accordance with the Company’s Certificate of Incorporation, the Company has authorized a total of 2,000,000 0.01 88,335 88,235 On June 22, 2022, the Board of Directors of the Company approved the filing of an amendment to the Company’s Certificate of Incorporation (the “Certificate of Incorporation”), in the form of a Certificate of Designation that authorized for issuance of up to 100 shares of a new series of Preferred Stock, par value $ 0.01 2,000,000 0.01 The holders of the Series A Preferred Stock shall be entitled to vote, on a pro-rata basis, on all matters subject to a vote or written consent of the holders of the Company’s Common Stock, and on all such matters, the shares of Series A Preferred Stock shall be entitled to that number of votes equal to the number of votes that all issued and outstanding shares of Common Stock and all other securities of the Company are entitled to, as of any such date of determination, on a fully diluted basis, plus Unless approved by a majority vote of the holders of Common Stock, the Series A Super Voting Preferred Stock will terminate five years after the issuance date, which is June 24, 2027. During the three months ended June 30, 2022, the Company issued 100 shares of Series A preferred stock. Common Stock In accordance with the Company’s bylaws, the Company has authorized a total of 20,000,000,000 0.0001 5,594,156,736 5,197,821,885 During the three months ended June 30, 2022, the Company issued the following shares of common stock: On January 12, 2022, the Company issued 23,372,430 1,150,000 On January 21, 2022, the Company issued 33,454,988 1,150,000 On February 7, 2022, the Company issued 16,040,411 500,000 On March 3, 2022, the Company issued 16,579,569 500,000 On March 7, 2022, the Company issued 75,798,921 2,500,000 On March 14, 2022, the Company issued 5,617,347 400,000 On March 23, 2022, the Company issued 29,257,395 1,500,000 On April 1, 2022, the Company issued 3,725,386 200,000 On April 8, 2022, the Company issued 23,746,816 1,000,000 On May 3, 2022, the Company issued 29,522,276 1,000,000 On May 13, 2022, the Company issued 26,100,979 556,750 On May 23, 2022, the Company issued 25,025,540 556,750 On June 1, 2022, the Company issued 25,901,921 556,750 On June 16, 2022, the Company issued 23,799,766 402,086 On June 24, 2022, the Company issued 38,391,106 643,539 Stock Options During the three months ended June 30, 2022, the Company did not issue any stock options and had no Public Offerings On November 9, 2021, we entered an Equity Financing Agreement (the “ Equity Financing Agreement GHS Registration Rights Agreement 30,000,000 Contract Period Registration Statement The GHS Registration Rights Agreement provides that we shall (i) use our best efforts to file with the SEC a Registration Statement within 45 days of the date of the GHS Registration Rights Agreement; and (ii) have the Registration Statement declared effective by the SEC within 30 days after the date the GHS Registration Statement is filed with the SEC, but in no event more than 90 days after the GHS Registration Statement is filed. Pursuant to the Equity Financing Agreement, on January 12, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 23,372,430 1,150,000 Second EFA Closing 1,033,975 Pursuant to the Equity Financing Agreement, on January 21, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 33,454,988 1,150,000 Third EFA Closing 1,033,975 Pursuant to the Equity Financing Agreement, on February 7, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 16,040,411 500,000 Fourth EFA Closing 448,975 On February 21, 2022, we sold 75,798,921 2,500,000 On March 3, 2022, we sold 16,579,569 500,000 On March 14, 2022, we sold 5,617,347 400,000 Pursuant to the Equity Financing Agreement, on March 23, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 29,257,395 1,500,000 Fifth EFA Closing 1,348,975 Pursuant to the Equity Financing Agreement, on April 11, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 23,746,816 1,000,000 Sixth EFA Closing 898,975 Pursuant to the Equity Financing Agreement, on May 3, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 29,522,276 1,000,000 Seventh EFA Closing 898,975 Pursuant to the Equity Financing Agreement, on May 13, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 26,100,979 556,750 Eighth EFA Closing 500,050 Pursuant to the Equity Financing Agreement, on May 23, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 25,025,540 556,750 Ninth EFA Closing 500,050 Pursuant to the Equity Financing Agreement, on June 1, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 25,901,921 556,750 Tenth EFA Closing 500,050 Pursuant to the Equity Financing Agreement, on June 16, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 23,799,766 402,086 Eleventh EFA Closing 360,852 On May 27, 2022, we entered an Equity Financing Agreement (the “ EFA RRA 70,000,000 Registration Statement The RRA provides that we shall (i) use our best efforts to file with the SEC a Registration Statement within 45 days of the date of the GHS Registration Rights Agreement; and (ii) have the Registration Statement declared effective by the SEC within 30 days after the date the GHS Registration Statement is filed with the SEC, but in no event more than 90 days after the GHS Registration Statement is filed. Pursuant to the EFA, on June 24, 2022, we and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from us, 38,391,106 643,539 1 st 578,160 st st |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include a) affiliates of the Company; b) Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. On June 22, 2022, the Board of Directors of the Company, with Dennis O’Leary abstaining, approved the Employment Agreement dated effective April 1, 2022 (the “Effective Date”) with Mr. O’Leary, the Company’s Chief Executive Officer (the “Agreement”). The term of the Agreement is three years from the Effective Date, subject to termination. The Agreement may be terminated upon the death or disability of Mr. O’Leary or for “Cause,” as defined in the Agreement. Pursuant to the Agreement, Mr. O’Leary is entitled to an annual salary of $ 300,000 During the six months ended June 30, 2022 and 2021, the Company’s Chief Executive Officer advanced personal funds in the amount of $ 0 329 0 During the six months ended June 30, 2022 and 2021, certain executives of the Company received $ 180,000 |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | NOTE 12 - COMMITMENTS & CONTINGENCIES Potential Royalty Payments The Company, in consideration of the terms of the debenture to the University of New Brunswick, shall pay to the University a two percent royalty on sales of any and all products or services which incorporate the Company's patents for a period of five years from April 24, 2018. Legal Matters Carebourn Capital, L.P. v. DarkPulse, Inc. As disclosed in greater detail in the Company’s Form 10-Q, filed May 16, 2022, the Company remains in active litigation with Carebourn Capital, L.P. (“Carebourn”). Thus, the remainder of this communication will address all material updates since the aforementioned Form 10-Q. On July 11, 2022, the Court denied Carebourn’s motion to compel DPLS to produce a privilege log. On July 15, 2022, the Court denied Carebourn’s motion to disqualify or, in the alternative, seek limited discovery of DPLS’ legal counsel, consisting of the Taft Stettinius & Hollister LLP and The Basile Law Firm P.C. On July 27, 2022, Carebourn paid $18,858.18 for attorneys’ fees awarded pursuant to the Court’s April 14, 2022 decision on the Company’s motion to compel Carebourn. The Company remains committed to actively litigating its claims for relief under the Securities Exchange Act of 1934. More Capital, LLC v. DarkPulse, Inc. et al As disclosed in greater detail in the Company’s Form 10-Q, filed May 16, 2022, the Company remains in active litigation with More Capital, LLC (“More”). Thus, the remainder of this communication will address all material updates since the aforementioned Form 10-Q. On July 11, 2022, the Court denied More’s motion for summary judgment against the Company and granted DarkPulse’s motion to compel More. The Court directed More to produce all responsive documents to certain requests for production served by DarkPulse within seven days thereof. The Company remains committed to actively litigating its claims for relief under the Securities Exchange Act of 1934. Goodman et al. v. DarkPulse, Inc. As disclosed in greater detail in the Company’s Form 10-Q, filed May 16, 2022, the Company remains in active litigation with Stephen Goodman (“Goodman”), Mark Banash (“Banash”), and David Singer (“Singer”) (Goodman, Banash, and Singer, together, the “Series D Plaintiffs”). Thus, the remainder of this communication will address all material updates since the aforementioned Form 10-Q. As of the date hereof, there are no material updates to this litigation. The Company remains committed to actively litigating its claims and defenses against the Series D Plaintiffs. DarkPulse, Inc. v. FirstFire Global Opportunities Fund, LLC, and Eli Fireman (SDNY) As disclosed in greater detail in the Company’s Form 10-Q, filed May 16, 2022, the Company remains in active litigation with FirstFire Global Opportunities Fund, LLC (“FirstFire”), and Eli Fireman (“Fireman”) (FirstFire and Fireman together, the “FirstFire Parties”). Thus, the remainder of this communication will address all material updates since the aforementioned Form 10-Q. On May 26, 2022, the FirstFire Parties filed their motion to dismiss the Company’s first amended complaint, filed on May 5, 2022, and opening memorandum of law in support thereof. On June 16, 2022, the Company filed its memorandum of law in opposition to the FirstFire Parties’ motion to dismiss, and on June 30, 2022, the FirstFire Parties filed their memorandum of law in reply and further support of their motion to dismiss. As of the date hereof, the FirstFire Parties’ motion to dismiss is fully submitted to the Court. On May 26, 2022, the FirstFire Parties requested oral arguments on their motion to dismiss. As of the date hereof, oral arguments have not been scheduled and, further, no decision has been rendered on the FirstFire Parties’ motion to dismiss. The Company remains committed to actively litigating its claims for relief under the Securities Exchange Act of 1934. DarkPulse, Inc. v. EMA Financial, LLC et al As disclosed in greater detail in the Company’s Form 10-Q, filed May 16, 2022, the Company remains in active litigation with EMA Financial, LLC (“EMA”), EMA Group, Inc. (“EMA Group”), and Felicia Preston (“Preston”) (EMA, EMA Group, and Preston together, the “EMA Parties”). Thus, the remainder of this communication will address all material updates since the aforementioned Form 10-Q. On June 22, 2022, the EMA Parties filed their motion to dismiss the Company’s first amended complaint, filed on March 28, 2022, and opening memorandum of law in support thereof. On July 13, 2022, the Company filed its memorandum of law in opposition to the EMA Parties’ motion to dismiss, and on July 22, 2022, the EMA Parties filed their memorandum of law in reply and further support of their motion to dismiss. As of the date hereof, no decision has been on the EMA Parties’ motion to dismiss. The Company remains committed to actively litigating its claims for relief under the Securities Exchange Act of 1934 and the Racketeer Influenced and Corrupt Organizations Act. Carebourn Capital et al v. Standard Registrar and Transfer et al On May 20, 2022, Carebourn Capital, L.P. (“Carebourn”) and More Capital, LLC (“More”) (Carebourn and More, together, the “MN Noteholders”) commenced an action in the United States District Court for the District of Utah against (i) Standard Registrar and Transfer Co., Inc. (“Standard”), (ii) Amy Merrill (“Merrill”) (Standard and Merrill, together, the “TA Defendants”), (iii) DarkPulse, Inc., (iv) Dennis O’Leary (“O’Leary”), (v) Thomas Seifert (“Seifert”), (vi) Carl Eckel (“Eckel”), (vii) Anthony Brown (“Brown”), and (viii) Faisal Farooqui (“Farooqui”) (DarkPulse, O’Leary, Seifert, Eckel, Brown, and Farooqui, collectively, the “DPLS Defendants”). The MN Noteholders’ complaint alleges, among other things, that the TA Defendants and DPLS Defendants conspired together and acted in unison to preclude the MN Noteholders’ from receiving the benefits of the convertible note transactions between Carebourn, More, and DarkPulse. On July 5, 2022, the TA Defendants filed their motion to dismiss the MN Noteholders’ complaint. Pursuant to the local rules of the U.S. Dist. Court for the District of Utah, the MN Noteholders must reply to the TA Defendants’ motion to dismiss on or before August 2, 2022. As of the date hereof, the DPLS Defendants have not been served and, thus, no deadline exists by which the DPLS Defendants must answer or otherwise respond to the MN Noteholders’ complaint. The Company intends to vigorously defend itself against the MN Noteholders’ lawsuit. DarkPulse, Inc. v. Brunson Chandler Jones et al On July 8, 2022, the Company commenced an action against the law firm of Brunson Chandler & Jones, PLLC and Lance B. Brunson (“Chandler Defendants”) in the United States District Court for the District of Utah. The Company’s claims, consisting of professional negligence/malpractice and breach of contract, arise from the legal services and relationship between DarkPulse and the Chandler Defendants and in connection with the merger between DarkPulse, DarkPulse Technologies Inc., and Klever Marketing, Inc. From time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business. We are not currently involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on our business, financial condition and operating results. Bayliss Settlement Agreement The CEO, William Bayliss, of the Company’s subsidiary, Optilan, was terminated effective April 30, 2022. Optilan entered into a settlement agreement with Mr. Bayliss in which he received £125,000 in lieu of the six months’ salary provided for in Mr. Bayliss’s employment agreement. O’Leary Employment Agreement On June 22, 2022, the Board of Directors of the “Company, with Dennis O’Leary abstaining, approved the Employment Agreement dated effective April 1, 2022 (the “Effective Date”) with Mr. O’Leary, the Company’s Chief Executive Officer (the “Agreement”). The term of the Agreement is three years from the Effective Date, subject to termination. The Agreement may be terminated upon the death or disability of Mr. O’Leary or for “Cause,” as defined in the Agreement. Pursuant to the Agreement, Mr. O’Leary is entitled to an annual salary of $ 300,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS Pursuant to the EFA, on July 1, 2022, the Company and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from the Company, 33,525,465 shares of Common Stock for total proceeds to the Company, net of discounts, of $556,750, at an effective price of $0.019596 per share (the “ 2 nd nd nd On July 5, 2022, the Company entered into a Joint Cooperation Contract with Salman International Company, headquartered at 98 Banks Division Al-Waha District, Nasr City, Egypt (the “Salman”). The purpose of the agreement is for the parties to cooperate jointly, where the Company sells its products through Salman, which is an authorized distributor of Siemens products. Pursuant to the agreement, Salman agrees to appoint the Company as the sole integration provider for MoonLand Resort, located in Hurghada, Egypt, at reasonable market prices. The Company and Salman agree to jointly market the Company’s and Seimens’ products. Subject to the early termination provisions in the agreement, the term of the agreement is for five years; provided that the agreement is implemented within three months from the date of execution. Pursuant to the EFA, on July 11, 2022, the Company and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from the Company, 32,756,532 shares of Common Stock for total proceeds to the Company, net of discounts, of $556,750, at an effective price of $0.01699661 per share (the “ 3 rd rd rd On July 13, 2022, the Company issued a press release which announced Pursuant to the EFA, on July 20, 2022, the Company and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from the Company, 29,386,519 shares of Common Stock for total proceeds to the Company, net of discounts, of $556,750, at an effective price of $0.01894558 per share (the “ 4 th th th Pursuant to the EFA, on July 28, 2022, the Company and GHS agreed that the Company would issue and sell to GHS, and GHS would purchase from the Company, 35,884,040 shares of Common Stock for total proceeds to the Company, net of discounts, of $556,750, at an effective price of $0.018308 per share (the “ 5 th th th |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles of the United States of America (“U.S. GAAP”) and the rules and regulations of the U.S Securities and Exchange Commission for Interim Financial Information. The condensed consolidated financial statements of the Company include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. All adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2022, and the results of operations for three and six months and cash flows for the six months ended June 30, 2022 have been included. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. |
Description of Business | Description of Business DarkPulse, Inc. (“DPI” or “Company”) is a technology company incorporated in 1989 as Klever Marketing, Inc. (“Klever”). Its’ wholly-owned subsidiary, DarkPulse Technologies Inc. (“DPTI”), originally started as a technology spinout from the University of New Brunswick, Fredericton, Canada. The Company’s security and infrastructure monitoring systems have been installed into the Honcut Bridge in Marysville, California creating the first intelligent bridge. Additional applications of this technology will include border security, pipelines, the oil and gas industry, aviation & aerospace and mine safety. Current uses of fiber optic distributed sensor technology have been limited to quasi-static, long-term structural health monitoring due to the time required to obtain the data and its poor precision. The Company’s patented BOTDA dark-pulse sensor technology allows for the monitoring of highly dynamic environments due to its greater resolution and accuracy. The Company’s operating units consist of, Optilan HoldCo 3 Limited, a company headquartered in Coventry, United Kingdom (“Optilan”) whose focus is in telecommunications, energy, rail, critical network infrastructure, pipeline integrity systems, renewables and security; Remote Intelligence, Limited Liability Company, a company headquartered in Pennsylvania who provides unmanned aerial drone and unmanned ground crawler (UGC) services to a variety of clients from industrial mapping and ecosystem services, to search and rescue, to pipeline security; Wildlife Specialists, Limited Liability Company, a company headquartered in Pennsylvania who provides clients with comprehensive wildlife and environmental assessment, planning, and monitoring services; TerraData Unmanned, PLLC, a company headquartered in Florida who custom manufactures NDAA compliant drones and unmanned ground crawlers to meet the needs of its customers; and TJM Electronics West, Inc., a company headquartered in Arizona who is a U.S. manufacturer and tester of advanced electronics, cables and sub-assemblies specializing in advanced package and complex CCA and hardware. On April 27, 2018, Klever entered into an Agreement and Plan of Merger (the “Merger Agreement” or the “Merger”) involving Klever as the surviving parent corporation and acquiring a privately held New Brunswick corporation known as DarkPulse Technologies Inc. as its wholly owned subsidiary. On July 18, 2018, the parties closed the Merger Agreement, as amended on July 7, 2018, and the name of the Company was subsequently changed to DarkPulse, Inc. With the change of control of the Company, the Merger is being be accounted for as a recapitalization in a manner similar to a reverse acquisition. On July 20, 2018, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the State of Delaware, changing the name of the Company to DarkPulse, Inc. The Company filed a corporate action notification with the Financial Industry Regulatory Authority (FINRA), and the Company's ticker symbol was changed to DPLS. |
Reclassifications | Reclassifications Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods. |
Going Concern Uncertainty | Going Concern Uncertainty As shown in the accompanying financial statements, during the six months ended June 30, 2022, the Company reported a net loss of $ 9,569,843 8,585,281 2,512,668 The Company will require additional funding during the next twelve months to finance the growth of its current operations and achieve its strategic objectives. These factors, as well as the uncertain conditions that the Company faces relative to capital raising activities, create substantial doubt as to the Company’s ability to continue as a going concern. The Company is seeking to raise additional capital principally through private placement offerings and is targeting strategic partners in an effort to finalize the development of its products and generate revenues. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements or expansion of its operations. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations through calendar year 2022. However, management cannot make any assurances that such financing will be secured. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities, preferred deemed dividend and common stock issued for services. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with high credit quality financial institutions. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is US Dollars. The accounts of one of the Company’s subsidiaries is maintained using the appropriate local currency, British Pound (“GBP”) as the functional currency. The accounts of one of the Company’s subsidiaries is maintained using the appropriate local currency, Canadian Dollar (“CAD”) as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders' equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the periods ended June 30, 2022 closing rate at 1.216007 1.299973 1.353583 1.375671 The relevant translation rates are as follows: for the periods ended June 30, 2022 closing rate at 1.2872 1.2788 1.2794 1.2534 |
Long-Lived Assets and Goodwill | Long-Lived Assets and Goodwill In accordance with ASC 350-30-65, “Intangibles - Goodwill and Others”, the Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following: · Significant underperformance relative to expected historical or projected future operating results; · Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and · Significant negative industry or economic trends. When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows. |
Property and Equipment | Property and Equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. The estimated useful lives of property and equipment are generally as follows: Schedule of estimated useful lives Years Office furniture and fixtures 4 Plant and equipment 4 8 Leasehold Improvements 10 Motor Vehicles 3 |
Revenue Recognition | Revenue Recognition The Company’s revenues are generated primarily from the sale of our products, which consist primarily of advanced technology solutions for integrated communications and security systems. At contract inception, we assess the goods and services promised in the contract with customers and identify a performance obligation for each. To determine the performance obligation, we consider all products and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. The timing of satisfaction of the performance obligation is not subject to significant judgment. We measure revenue as the amount of consideration expected to be received in exchange for transferring goods and services. We generally recognize product revenues at the time of shipment, provided that all other revenue recognition criteria have been met. The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. In accordance with ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient Contract liabilities is shown separately in the unaudited consolidated balance sheets as current liabilities. At June 30, 2022 and December 31, 2021, we had contract liabilities of $ 4,480,912 3,216,562 |
Cost of Product Sales and Services | Cost of Product Sales and Services Cost of sales consists primarily of materials, airtime and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred to install our products and train customer personnel, and customer service and third-party original equipment manufacturer costs to provide continuing support to our customers. There are certain costs which are deferred and recorded as prepaids, until such revenue is recognized. Refer to revenue recognition above as to what constitutes deferred revenue. |
Concentration of Credit Risk | Concentration of Credit Risk The Company has no significant concentrations of credit risk. |
Related Parties | Related Parties The Company accounts for related party transactions in accordance with ASC 850 (“Related Party Disclosures”). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. |
Leases | Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases In calculating the right of use asset and lease liability, the Company has elected to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and recognizes rent expense on a straight-line basis over the lease term. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates the embedded conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and, if so, whether to bifurcate the conversion feature and account for it as a separate derivative liability. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a lattice model, in accordance with ASC 815-15 “Derivative and Hedging” to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12 months after the balance sheet date. |
Restructuring Costs | Restructuring Costs The Company accounts for settlement of employment contracts and one-time salary expenses, such as severance, as restructuring costs when incurred due to specific restructuring event. For the quarter ended June 30, 2022, the Company recognized $501,431 related to the settlement of employment contracts and severance due to employment changes in our subsidiary, Optilan. |
Beneficial Conversion Features | Beneficial Conversion Features The Company evaluates the conversion feature for whether it was beneficial as described in ASC 470-30. The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the shares of common stock at the commitment date to be received upon conversion. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company's financial assets and liabilities, such as cash, prepaid expenses, and accruals approximate their fair values because of the short maturity of these instruments. The Company believes the carrying value of its secured debenture payable approximates fair value because the terms were negotiated at arm’s length. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 718, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Further, ASC Topic 718, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, such as the repricing of share options, which would revalue those options and the accounting for the cancellation of an equity award whether a replacement award or other valuable consideration is issued in conjunction with the cancellation. If not, the cancellation is viewed as a replacement and not a modification, with a repurchase price of $0. |
Income (Loss) Per Common Share | Income (Loss) Per Common Share The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. In periods where the Company has a net loss, all dilutive securities are excluded. For the six months ended June 30, 2022, there were no stock options outstanding. For the six months ended June 30, 2022, common stock equivalents related to convertible preferred stock and convertible debt have not been included in the calculation of diluted loss per common share because they are anti-dilutive. Therefore, basic loss per common share is the same as diluted loss per common share. There are 28,316,441 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company has reviewed the accounting pronouncements issued during the six months ended June 30, 2022 and concluded they were either not applicable or not expected to have a material impact on the Company’s condensed consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Schedule of estimated useful lives Years Office furniture and fixtures 4 Plant and equipment 4 8 Leasehold Improvements 10 Motor Vehicles 3 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of timing of revenue recognition | Schedule of timing of revenue recognition Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Timing of revenue recognition: Services and products transferred at a point in time $ 4,435,043 $ – $ 6,453,376 $ – Services and products transferred over time – – – – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – |
Schedule of revenue by source consisted | Schedule of revenue by source consisted Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue by products and services: Products $ 712,449 $ – $ 1,110,076 $ – Services 3,722,594 – 5,343,300 – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – |
Schedule of revenue by geographic destination | Schedule of revenue by geographic destination Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue by geography: North America $ 373,062 $ – $ 534,434 $ – International 4,061,981 – 5,918,942 – Total revenue $ 4,435,043 $ – $ 6,453,376 $ – |
Schedule of contract liabilities related to contracts with customers | Schedule of contract liabilities related to contracts with customers Total Balance at December 31, 2021 $ 3,216,562 Additions through advance billings to or payments from vendors 3,782,297 Revenue recognized from current period advance billings to or payments from vendors (2,517,947 ) Balance at June 30, 2022 $ 4,480,912 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Schedule of accounts receivable June 30, December 31, 2022 2021 Accounts receivable $ 3,673,186 $ 4,223,990 Less: Allowance for doubtful accounts – – Total accounts receivable $ 3,673,186 $ 4,223,990 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Schedule of inventory June 30, December 31, 2022 2021 Raw materials $ 139,217 $ 416,180 Work in progress 1,484,127 436,891 Finished goods 47,635 11,948 Total inventory 1,670,979 865,019 Reserve – – Total inventory, net $ 1,670,979 $ 865,019 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Schedule of property, plant and equipment June 30, December 31, 2022 2021 Property and equipment $ 2,449,490 $ 1,867,794 Leasehold improvements 46,934 42,396 2,496,424 1,910,190 Less - accumulated depreciation (292,789 ) (122,366 ) $ 2,203,635 $ 1,787,824 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued liabilities | Schedule of accounts payable and accrued liabilities June 30, December 31, 2022 2021 Accounts payable $ 3,399,145 $ 7,209,945 Accrued liabilities 709,439 634,326 Total accounts payable and accrued expenses $ 4,108,584 $ 7,844,271 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of operating leases | Schedule of operating leases Operating leases June 30, 2022 Assets ROU operating lease assets $ 2,836,128 Liabilities Current portion of operating lease $ 1,963,054 Operating lease, net of current portion $ 1,190,866 Total operating lease liabilities $ 3,153,920 |
Schedule of weighted average remaining lease term and weighted average discount rate | Schedule of weighted average remaining lease term and weighted average discount rate Weighted average remaining lease term (years) June 30, 2022 Operating leases 7.78 Weighted average discount rate Operating leases 6.00 |
Schedule of future minimum operating lease payments | Schedule of future minimum operating lease payments 2022 254,917 2023 532,341 2024 518,059 2025 528,043 2026 and later 2,163,300 Total lease payments 3,996,660 Less imputed interest (842,740 ) Total lease obligations 3,153,920 Less current obligations (1,963,054 ) Long-term lease obligations $ 1,190,866 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill | Schedule of changes in carrying amount of goodwill Total Balance at December 31, 2021 $ 17,088,501 Exchange rate variation (1,030,873 ) Balance at June 30, 2022 $ 16,057,628 |
Schedule of future amortization of intangible assets | Schedule of future amortization of intangible assets 2022 $ 25,514 2023 51,028 2024 51,028 2025 51,028 2026 51,028 Thereafter 87,822 Total $ 317,448 |
DEBT AGREEMENTS (Tables)
DEBT AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of future minimum debt payments | Schedule of future minimum debt payments Period ending June 30, 2023 $ – 2024 – 2025 – 2026 – 2027 and after 1,165,365 Total $ 1,165,365 |
Schedule of debt | Schedule of debt Face Debt Initial Change Derivative Amount Discount Loss in FMV 6/30/2022 $ 90,228 $ – $ 58,959 $ (13,320 ) $ 85,792 162,150 – 74,429 (23,938 ) 154,178 72,488 – 11,381 (10,701 ) 68,924 53,397 – 7,850 5,910 57,703 Subtotal 378,263 – 152,619 (42,049 ) 366,597 Transaction expense – – – – – $ 378,263 $ – $ 152,619 $ (42,049 ) $ 366,597 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Property, Plant and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 4 years |
Property, Plant and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 4,185,572 | $ 5,384,270 | $ 185,607 | $ 51,874 | $ 9,569,843 | $ 237,481 | |
Working capital | 8,585,281 | 8,585,281 | |||||
Cash | 2,512,668 | 2,512,668 | $ 3,658,846 | ||||
Contract liabilities | $ 4,480,912 | $ 4,480,912 | $ 3,216,562 | ||||
Anti-dilutive shares | shares | 28,316,441 | ||||||
United Kingdom, Pounds | |||||||
Foreign currency translation rates | 1.216007 | 1.216007 | |||||
Foreign currency translation rates during the period | 1.299973 | 1.375671 | |||||
United Kingdom, Pounds | Optilian Acquisition [Member] | |||||||
Foreign currency translation rates | 1.353583 | ||||||
Canada, Dollars | |||||||
Foreign currency translation rates | 1.2872 | 1.2872 | 1.2794 | ||||
Foreign currency translation rates during the period | 1.2788 | 1.2534 |
REVENUE (Details - Timing of re
REVENUE (Details - Timing of revenue recognition) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,435,043 | $ 0 | $ 6,453,376 | $ 0 |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,435,043 | 0 | 6,453,376 | 0 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE (Details - Revenue by s
REVENUE (Details - Revenue by source) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,435,043 | $ 0 | $ 6,453,376 | $ 0 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 712,449 | 0 | 1,110,076 | 0 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,722,594 | $ 0 | $ 5,343,300 | $ 0 |
REVENUE (Details - Revenue by g
REVENUE (Details - Revenue by geographic destination) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,435,043 | $ 0 | $ 6,453,376 | $ 0 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 373,062 | 0 | 534,434 | 0 |
International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 4,061,981 | $ 0 | $ 5,918,942 | $ 0 |
REVENUE (Details - Contract lia
REVENUE (Details - Contract liabilities) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Beginning balance | $ 3,216,562 |
Additions through advance billings to or payments from vendors | 3,782,297 |
Contract with Customer, Liability, Revenue Recognized | (2,517,947) |
Ending Balance | $ 4,480,912 |
ACCOUNTS RECEIVEABLE (Details)
ACCOUNTS RECEIVEABLE (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 3,673,186 | $ 4,223,990 |
Less: Allowance for doubtful accounts | 0 | 0 |
Total accounts receivable | $ 3,673,186 | $ 4,223,990 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 139,217 | $ 416,180 |
Work in progress | 1,484,127 | 436,891 |
Finished goods | 47,635 | 11,948 |
Total inventory | 1,670,979 | 865,019 |
Reserve | 0 | 0 |
Total inventory, net | $ 1,670,979 | $ 865,019 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,496,424 | $ 1,910,190 |
Accumulated depreciation | (292,789) | (122,366) |
Property, Plant and Equipment, Net | 2,203,635 | 1,787,824 |
Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,449,490 | 1,867,794 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 46,934 | $ 42,396 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts payable and accrued expenses | $ 4,108,584 | $ 7,844,271 |
Accounts Payable [Member] | ||
Accounts payable and accrued expenses | 3,399,145 | 7,209,945 |
Accrued Liabilities [Member] | ||
Accounts payable and accrued expenses | $ 709,439 | $ 634,326 |
LEASES (Details - Balance sheet
LEASES (Details - Balance sheet) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
ROU operating lease assets | $ 2,836,128 | $ 2,620,993 |
Liabilities | ||
Current portion of operating lease | 1,963,054 | 364,105 |
Operating lease, net of current portion | 1,190,866 | $ 2,474,530 |
Total operating lease liabilities | $ 3,153,920 |
LEASES (Details - Other Informa
LEASES (Details - Other Information) | Jun. 30, 2022 |
Leases | |
Operating leases | 7 years 9 months 10 days |
Operating leases percentage | 6% |
LEASES (Details - Future minimu
LEASES (Details - Future minimum operating lease payments) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Leases | ||
2022 | $ 254,917 | |
2023 | 532,341 | |
2024 | 518,059 | |
2025 | 528,043 | |
2026 and later | 2,163,300 | |
Total lease payments | 3,996,660 | |
Less imputed interest | (842,740) | |
Total lease obligations | 3,153,920 | |
Less current obligations | (1,963,054) | $ (364,105) |
Long-term lease obligations | $ 1,190,866 | $ 2,474,530 |
LEASES (Details Narrative)
LEASES (Details Narrative) | May 09, 2021 USD ($) |
Leases | |
Annual rent | $ 81,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 17,088,501 |
Exchange rate variation | (1,030,873) |
Ending balance | $ 16,057,628 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) | Jun. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 25,514 |
2023 | 51,028 |
2024 | 51,028 |
2025 | 51,028 |
2026 | 51,028 |
Thereafter | 87,822 |
Total | $ 317,448 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 25,514 | $ 25,514 |
DEBT AGREEMENTS (Details-Future
DEBT AGREEMENTS (Details-Future minimum payments) | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and after | 1,165,365 |
Total | $ 1,165,365 |
DEBT AGREEMENTS (Details- Fair
DEBT AGREEMENTS (Details- Fair Market Value) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | |||||
Amortization of discount | $ 0 | $ 171,554 | |||
Change in Fair Market Value | $ 42,049 | $ 358,440 | 167,156 | $ 327,496 | |
Derivative balance | 366,597 | 366,597 | $ 533,753 | ||
Convertible Debt 1 [Member] | |||||
Offsetting Assets [Line Items] | |||||
Face amount | 90,228 | 90,228 | |||
Amortization of discount | 0 | ||||
Initial loss | 58,959 | ||||
Change in Fair Market Value | (13,320) | ||||
Derivative balance | 85,792 | 85,792 | |||
Transaction expense | 0 | ||||
Convertible Debt 2 [Member] | |||||
Offsetting Assets [Line Items] | |||||
Face amount | 162,150 | 162,150 | |||
Amortization of discount | 0 | ||||
Initial loss | 74,429 | ||||
Change in Fair Market Value | (23,938) | ||||
Derivative balance | 154,178 | 154,178 | |||
Transaction expense | 0 | ||||
Convertible Debt 3 [Member] | |||||
Offsetting Assets [Line Items] | |||||
Face amount | 72,488 | 72,488 | |||
Amortization of discount | 0 | ||||
Initial loss | 11,381 | ||||
Change in Fair Market Value | (10,701) | ||||
Derivative balance | 68,924 | 68,924 | |||
Transaction expense | 0 | ||||
Convertible Debt 4 [Member] | |||||
Offsetting Assets [Line Items] | |||||
Face amount | 53,397 | 53,397 | |||
Amortization of discount | 0 | ||||
Initial loss | 7,850 | ||||
Change in Fair Market Value | 5,910 | ||||
Derivative balance | 57,703 | 57,703 | |||
Transaction expense | 0 | ||||
Derivative Liabilities [Member] | |||||
Offsetting Assets [Line Items] | |||||
Face amount | 378,263 | 378,263 | |||
Amortization of discount | 0 | ||||
Initial loss | 152,619 | ||||
Change in Fair Market Value | (42,049) | ||||
Derivative balance | $ 366,597 | 366,597 | |||
Convertible Debt 5 [Member] | |||||
Offsetting Assets [Line Items] | |||||
Transaction expense | $ 0 |
DEBT AGREEMENTS (Details Narrat
DEBT AGREEMENTS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Unrealized gain (loss) on derivatives | $ 29,297 | $ 17,909 | |
Interest expense | 24,854 | $ 26,746 | |
Debenture liability | 1,165,365 | ||
Convertible Debt | 378,263 | ||
Debt Instrument, Unamortized Discount | 0 | ||
Derivative Liability | $ 366,597 | $ 533,753 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 24, 2022 | Jun. 16, 2022 | Jun. 01, 2022 | May 13, 2022 | May 03, 2022 | Apr. 11, 2022 | Apr. 08, 2022 | Apr. 02, 2022 | Mar. 23, 2022 | Mar. 14, 2022 | Mar. 14, 2022 | Mar. 07, 2022 | Mar. 03, 2022 | Mar. 03, 2022 | Feb. 21, 2022 | Feb. 07, 2022 | Feb. 07, 2022 | Jan. 21, 2022 | Jan. 12, 2022 | Jan. 12, 2022 | Nov. 09, 2021 | Jun. 24, 2022 | May 27, 2022 | May 23, 2022 | Mar. 23, 2022 | Jan. 21, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 22, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares issued | 5,594,156,736 | 5,197,821,885 | ||||||||||||||||||||||||||||
Common stock, shares outstanding | 5,594,156,736 | 5,197,821,885 | ||||||||||||||||||||||||||||
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 | ||||||||||||||||||||||||||||
Common stock par value | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||||||||
Number of shares sold | 38,391,106 | 23,799,766 | 25,901,921 | 26,100,979 | 29,522,276 | 23,746,816 | 3,725,386 | 5,617,347 | 75,798,921 | 16,579,569 | 16,040,411 | 23,372,430 | 25,025,540 | 29,257,395 | 33,454,988 | |||||||||||||||
Issuance of common stock | $ 643,539 | $ 402,086 | $ 556,750 | $ 556,750 | $ 1,000,000 | $ 1,000,000 | $ 200,000 | $ 400,000 | $ 2,500,000 | $ 500,000 | $ 500,000 | $ 1,150,000 | $ 556,750 | $ 1,500,000 | $ 1,150,000 | $ 12,415,875 | $ 0 | |||||||||||||
Stock options options | 0 | 0 | ||||||||||||||||||||||||||||
Second EFA Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 23,372,430 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 1,033,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 1,150,000 | |||||||||||||||||||||||||||||
Third EFA Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 33,454,988 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 1,033,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 1,150,000 | |||||||||||||||||||||||||||||
Fourth EFA Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 16,040,411 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 448,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 500,000 | |||||||||||||||||||||||||||||
Fifth EFA Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 29,257,395 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 1,348,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 1,500,000 | |||||||||||||||||||||||||||||
Sixth Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 23,746,816 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 898,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 1,000,000 | |||||||||||||||||||||||||||||
Seventh Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 29,522,276 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 898,975 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 1,000,000 | |||||||||||||||||||||||||||||
Eighth Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 26,100,979 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 500,050 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 556,750 | |||||||||||||||||||||||||||||
Ninth Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 25,025,540 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 500,050 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 556,750 | |||||||||||||||||||||||||||||
Tenth Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 25,901,921 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 500,050 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 556,750 | |||||||||||||||||||||||||||||
Eleventh Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 23,799,766 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 360,852 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 402,086 | |||||||||||||||||||||||||||||
Registration Statement [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Issuance of common stock | $ 70,000,000 | |||||||||||||||||||||||||||||
Efa Closing [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 38,391,106 | |||||||||||||||||||||||||||||
Issuance of common stock | $ 578,160 | |||||||||||||||||||||||||||||
Gross proceeds from issuance of common stock | $ 643,539 | |||||||||||||||||||||||||||||
Public Offering [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Issuance of common stock | $ 30,000,000 | |||||||||||||||||||||||||||||
Preferred Stock [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Convertible preferred stock - shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||||||||||||||||||||
Convertible preferred stock - par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||||||
Convertible preferred stock - shares issued | 88,335 | 88,235 | ||||||||||||||||||||||||||||
Convertible preferred stock - shares outstanding | 88,335 | 88,235 | ||||||||||||||||||||||||||||
Series A Super Voting Preferred Stock [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Convertible preferred stock - par value | $ 0.01 | |||||||||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||||||
Number of shares sold | 5,617,347 | 16,579,569 | 75,798,921 | |||||||||||||||||||||||||||
Issuance of common stock | $ 400,000 | $ 500,000 | $ 2,500,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 22, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Annual salary | $ 300,000 | ||
Advanced personal fund | $ 0 | ||
Directors fee | 180,000 | $ 180,000 | |
Chief Executive Officer [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Advance from related party | $ 0 | $ 329 |
COMMITMENTS & CONTINGENCIES (De
COMMITMENTS & CONTINGENCIES (Details Narrative) | Jun. 22, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Annual salary | $ 300,000 |
O Leary [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Annual salary | $ 300,000 |