View Filing Data

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 15, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	Ipsidy Inc.
Entity Central Index Key	0001534154
Document Type	10-K
Trading Symbol	IDTY
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Emerging Growth	true
Entity Small Business	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 69,924,716
Entity Common Stock, Shares Outstanding		478,950,996
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 4,972,331	$ 4,413,822
Accounts receivable, net	130,875	165,929
Current portion of net investment in direct financing lease	58,727	52,790
Inventory, net	133,541	492,030
Other current assets	471,834	218,537
Total current assets	5,767,308	5,343,108
Property and equipment, net	204,000	209,719
Other Assets	1,566,177	1,243,531
Intangible Assets, net	3,310,184	2,878,080
Goodwill	6,736,043	6,736,043
Net investment in direct financing lease, net of current portion	560,036	618,763
Total assets	18,143,748	17,029,244
Current Liabilities:
Accounts payable and accrued expenses	1,347,226	1,447,185
Capital lease obligation, current portion	30,898	27,420
Deferred revenue	236,270	122,511
Total current liabilities	1,614,394	1,597,116
Long-term liabilities:
Notes payable, net	1,853,648	2,375,720
Capital lease obligation, net of current portion	84,610	115,509
Total liabilities	3,552,652	4,088,345
Commitments and Contingencies
Stockholders' Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 478,950,996 and 403,311,988 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively	47,895	40,331
Additional paid in capital	90,770,682	79,053,339
Accumulated deficit	(76,435,235)	(66,407,622)
Accumulated comprehensive income	207,754	254,851
Total stockholders' equity	14,591,096	12,940,899
Total liabilities and stockholders' equity	$ 18,143,748	$ 17,029,244

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	1,000,000,000	1,000,000,000
Common stock, issued	478,950,996	403,311,988
Common stock, outstanding	478,950,996	403,311,988

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Products and services	$ 3,759,635	$ 2,228,910
Lease income	69,358	74,696
Total revenues, net	3,828,993	2,303,606
Operating Expenses:
Cost of Sales	1,256,853	589,254
General and administrative	11,193,351	13,026,188
Research and development	208,311	222,068
Depreciation and amortization	493,697	475,211
Total operating expenses	13,152,212	14,312,721
Loss from operations	(9,323,219)	(12,009,115)
Other Income (Expense):
Loss on derivative liability		(452,146)
Gain on extinguishment of note payable		2,802,234
Loss on modification of derivatives		(319,770)
Loss on modification of warrants		(158,327)
Loss on settlement of notes payable		(5,978,643)
Interest expense, net	(757,801)	(1,337,081)
Other income, net	83,649
Other expense, net	(674,152)	(5,443,733)
Loss before income taxes	(9,997,371)	(17,452,848)
Income Taxes	(30,242)	(28,781)
Net loss	$ (10,027,613)	$ (17,481,629)
Net loss per share - Basic (in dollars per share)	$ (0.02)	$ (0.05)
Net loss per share - Diluted (in dollars per share)	$ (0.02)	$ (0.05)
Weighted Average Shares Outstanding - Basic (in shares)	429,852,594	338,485,301
Weighted Average Shares Outstanding - Diluted (in shares)	429,852,594	338,485,301

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net Loss	$ (10,027,613)	$ (17,481,629)
Foreign currency translation loss	(47,907)	(53,760)
Comprehensive loss	$ (10,075,520)	$ (17,535,389)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance, beginning at Dec. 31, 2016	$ 23,470	$ 35,341,669	$ (48,925,993)	$ 308,611	$ (13,252,243)
Balance, beginning (in shares) at Dec. 31, 2016	234,704,655
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification of derivatives removal of price protection in warrants		7,614,974			7,614,974
Issuance of common stock upon conversion of debt and related interest	$ 8,482	21,601,191			21,609,673
Issuance of common stock upon conversion of debt and related interest (in shares)	84,822,006
Issuance of common stock for cash	$ 5,846	8,994,444			9,000,290
Issuance of common stock for cash (in shares)	58,463,770
Common stock issued for services	$ 60	140,091			$ 140,151
Common stock issued for services (in shares)	593,557				594,000
Stock-based compensation		5,650,072			$ 5,650,072
Common stock issued with note payable	$ 450	841,277			841,727
Common stock issued with note payable (in shares)	4,500,000
Common stock issued for debt issuance costs	$ 120	224,340			224,460
Common stock issued for debt issuance costs (in shares)	1,200,000
Cash and common stock issued for equity issuance costs	$ 100	(664,644)			(664,544)
Cash and common stock issued for equity issuance costs (in shares)	1,000,000
Common stock returned as part of extinguishment of notes payable	$ (250)	(874,750)			(875,000)
Common stock returned as part of extinguishment of notes payable (in shares)	(2,500,000)
Common stock issued compensation subject to performance	$ 2,000				2,000
Common stock issued compensation subject to performance (in shares)	20,000,000
Loss on modification of warrants		158,327			158,327
Common stock issued upon exercise of warrants	$ 53	26,347			26,400
Common stock issued upon exercise of warrants (in shares)	528,000
Net loss			(17,481,629)		(17,481,629)
Foreign currency translation				(53,760)	(53,760)
Balance, ending at Dec. 31, 2017	$ 40,331	79,053,339	(66,407,622)	254,851	$ 12,940,899
Balance, ending (in shares) at Dec. 31, 2017	403,311,988				403,311,988
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for cash	$ 6,407	8,945,522			$ 8,951,929
Issuance of common stock for cash (in shares)	64,072,001
Restricted stock issued for services	$ 521	245,372			245,893
Restricted stock issued for services (in shares)	5,206,334
Common stock issued for services	$ 46	97,080			97,126
Common stock issued for services (in shares)	456,735
Stock-based compensation		2,429,959			2,429,959
Cashless exercise of common stock warrants	$ 350	(350)
Cashless exercise of common stock warrants (in shares)	3,498,943
Cashless exercise of common stock options	$ 163	(163)
Cashless exercise of common stock options (in shares)	1,633,443
Common stock issued for loan extension	$ 150	(150)
Common stock issued for loan extension (in shares)	1,500,000
Cancellation of shares in settlement of amounts due from prior acquisition	$ (73)	73
Cancellation of shares in settlement of amounts due from prior acquisition (in shares)	(728,448)
Net loss			(10,027,613)		(10,027,613)
Foreign currency translation				(47,097)	(47,907)
Balance, ending at Dec. 31, 2018	$ 47,895	$ 90,770,682	$ (76,435,235)	$ 207,754	$ 14,591,096
Balance, ending (in shares) at Dec. 31, 2018	478,950,996				478,950,996

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,027,613)	$ (17,481,629)
Adjustments to reconcile net loss with cash used in operations:
Depreciation and amortization expense	493,697	475,211
Stock-based compensation	2,429,959	5,650,072
Stock issued for services	343,019	140,151
Inventory reserve	348,302	358,300
Amortization of debt discount and debt issuance costs, net	477,928	937,133
Loss on derivative liability		452,146
Gain on settlement of notes payable		(2,802,234)
Loss on modification of derivatives		319,770
Loss on modification of warrants		158,327
Loss on conversion of debt		5,978,643
Write off of assets	148,627	212,862
Changes in operating assets and liabilities:
Accounts receivable	20,762	(36,963)
Net investment in direct financing lease	52,790	47,452
Other current assets	(265,624)	(52,058)
Inventory	(1,519)	(712,527)
Accounts payable and accrued expenses	(84,512)	90,353
Deferred revenue	113,759	(276,169)
Net cash flows from operating activities	(5,950,425)	(6,541,160)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(59,091)	(13,246)
Investment in other assets including work in process	(1,319,932)	(894,435)
Net cash flows from investing activities	(1,379,023)	(907,681)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable and common stock		3,000,000
Proceeds from the sale of common stock, net	9,610,793	9,002,290
Proceeds from exercise of common stock warrants		26,400
Payment of debt and equity issuance costs	(658,864)	(750,975)
Principal payments on capital lease obligations	(27,421)	(30,842)
Principal payments on notes payable	(1,000,000)	(59,819)
Net cash flows from financing activities	7,924,508	11,187,054
Effect of foreign currencies exchange on cash	(36,551)	(13,496)
Net change in Cash	558,509	3,724,717
Cash, Beginning of Period	4,413,822	689,105
Cash, End of Period	4,972,331	4,413,822
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	173,426	11,021
Cash paid for income taxes	17,304	6,957
Non-cash Investing and Financing Activities:
Issuance of common stock for conversion of debt and related interest		21,609,673
Issuance of common stock for debt issuance costs		224,460
Reclassification of derivatives upon removal of price protection in warrants		7,614,974
Reclassification of software development costs to intangible assets	679,882
Acquisition of equipment due to a capital lease		$ 163,407

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Ipsidy Inc. (formerly ID Global Solutions Corporation) (“Ipsidy” or the “Company”) was incorporated on September 21, 2011 under the laws of the State of Delaware. Ipsidy is a provider of secure, biometric identification, identity management and electronic transaction processing services. The Company plans to provide pre-transaction verification of identity as well as embed identity attributes within every electronic transaction message processed through our platform, or other electronic systems. The Company provides its biometric identification services to government and public sector organizations, seeking to authenticate and manage identities for a variety of security purposes, including issuing identity cards and exercise of rights such as voting in elections. The Company’s current and future platforms of internally developed software as well as acquired and licensed technology is intended to provide solutions for multi modal biometric matching, multi-factor out of band identity and transaction authentication, and electronic transactions.

Going Concern

As of December 31, 2018, the Company had an accumulated deficit of approximately $76.4 million. For the year ended December 31, 2018, the Company earned revenue of approximately $3.8 million and incurred a loss from operations of approximately $9.3 million.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial support from the Company’s current shareholders, the ability of the Company to obtain additional equity financing to continue operations, the Company’s ability to generate sufficient cash flows from operations, successfully locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows. As there can be no assurance that the Company will be able to achieve positive cash flows (become profitable) and raise sufficient capital to maintain operations there is substantial doubt about the Company’s ability to continue as a going concern.

These consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Basis of Consolidation

The consolidated financial statements include the accounts of Ipsidy Inc. and its wholly-owned subsidiaries Innovation in Motion Inc. MultiPay S.A.S., ID Global LATAM, IDGS S.A.S., ID Solutions, Inc., FIN Holdings, Inc., Cards Plus Pty Ltd. and Ipsidy Enterprises Limited (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements.

Use of Estimates

In preparing these consolidated financial statements in conformity with US GAAP, management is required to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in our consolidated financial statements relate to the realizability of accounts receivable and inventory, valuation of long-lived assets, accruals for potential liabilities, and valuation assumptions related to derivative liabilities, equity instruments and share based payments.

Revenue Recognition

An entity recognizes revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services.

Revenue from the sale of unique secure credential products and solutions to customers is recorded at the completion of the project unless the solution includes benefits to the end user in which additional resources or services are required to be provided.

Revenue from cloud-based services arrangements that allow for the use of a hosted software product or service that are provided on a consumption basis (for example, the number of transactions processed over a period of time) is recognized commensurate with the customer utilization of such resources. Generally, the contract calls for a minimum number of transactions to be charged by the Company on a monthly basis. Accordingly, the Company records the minimum transactional fee based on the passage of a month’s time as revenues. Amounts in excess of the monthly minimum, are charged to customers based on the actual number of transactions.

Consulting services revenue is recognized as services are rendered, generally based on the negotiated hourly rate in the consulting arrangement and the number of hours worked during the period. Consulting revenue for fixed-price services arrangements is recognized as services are provided.

The lease of equipment to customers that meet certain criteria are recognized as a direct financing lease. Direct financing lease arrangements are recognized as revenue over the term of the associated lease based on the effective interest method. As of December 31, 2018 and December 31, 2017, the Company has 78 kiosks financed under direct financing leases. The revenue associated with these arrangements is expected to be recognized through April 2026. The imputed interest rate in the arrangements approximates 10.7%.

Accounts Receivable

All customers are granted credit on a short-term basis and related credit risks are considered minimal. The Company routinely reviews its trade receivables and makes provisions for probable doubtful accounts; however, those provisions are estimates and actual results could differ from those estimates and those differences may be material. Trade receivables are deemed uncollectible and removed from accounts receivable and the allowance for doubtful accounts when collection efforts have been exhausted. At December 31, 2018 and 2017, management determined no allowance for doubtful accounts was required.

Inventories

Inventories of kiosks held by IDGS S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value. The kiosks provide electronic ticketing for transit systems. Inventory of plastic/ID cards, digital printing material, which are held by Cards Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing material are used to provide plastic loyal ID and other types of cards. Inventories at December 31, 2018 and December 31, 2017 consist of cards inventory and kiosks that have not been placed into service. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of December 31, 2018 and December 31, 2017, the Company recorded an inventory valuation allowance of approximately $707,000 and $353,000, respectively, to reflect net realizable value of kiosks that are being held for sale and the Company believes no valuation allowance was necessary regarding the cards inventory.

Concentration of Credit Risk

The Company’s financial instruments that potentially expose the Company to a concentration of credit risk consist of cash and accounts receivable.

Cash: The Company’s cash is deposited at financial institutions and cash balances held in United States (“US”) bank accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the year, the Company may have exceeded amounts insured by the FDIC. At December 31, 2018, the Company held approximately $4.2 million in cash not insured by the FDIC. For the Company’s foreign subsidiaries, no amounts are insured. At December 31, 2018, the Company held approximately $264,000, $235,000, and $24,000 in cash maintained in Colombian, African, and British Banks, respectively.

2018 Revenues and accounts receivable: For the year ended December 31, 2018, 14% of consolidated revenues were derived from one customer who is a US customer and is substantially all of the US based income. Additionally, for the year ended December 31, 2018, 37%, 37% and 12% of the consolidated revenues were from Cards Plus (Africa), Zimbabwe Election Commission (US provided services), and the Colombian operations, respectively. Revenue for approximately 89% of the Colombian operations were derived from four customers. As of December 31, 2018, accounts receivable related to Cards Plus (Africa) amounted to 46%, 51% the Colombia operations and the balance of 3% was from US operations, respectively.

2017 Revenues and accounts receivable: For the year ended December 31, 2017, 22% of consolidated revenues were derived from one customer who is a US customer and is substantially all of the US based income. Additionally, for the year ended December 31, 2017, 60% and 17% of the consolidated revenues were from Cards Plus (Africa) and the Colombian operations, respectively. Revenue for approximately 97% of the Colombian operations were derived from three customers. As of December 31, 2017, accounts receivable related to Cards Plus (Africa) amounted to 84% and 16% was from the Colombia operations, respectively.

Income Taxes

The Company accounts for income taxes under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

Leases

All leases are classified at the inception as direct finance leases or operating leases based on whether the lease transfers substantially all the risks and rewards of ownership. Leases that transfer to the leasee substantially all of the risks and rewards incidental to ownership of the asset are classified as direct finance leases.

Property and Equipment, net

Property and equipment consist of furniture and fixtures and computer equipment, and are stated at cost. Property and equipment are depreciated using the straight-line method over the estimated useful service lives of three to five years. Maintenance and repairs are expensed as incurred and improvements are capitalized. Gains or losses on the disposition of property and equipment are recorded upon disposal.

Other Assets - Software Development Costs

Other assets consist primarily of costs associated with software development of new product offerings and enhancements to existing and new applications. Development costs of computer software to be sold, leased or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. As of December 31, 2018 and 2017, the balance sheet assets have reached technological feasibility were under further development and have not been placed in service. Upon completion, the amounts will be recorded in the appropriate asset category and amortized over their estimated useful lives.

Intangible Assets

Excluding goodwill, acquired intangible assets and internally developed software are amortized over their estimated useful lives. Acquired amortizing intangible assets are carried at cost, less accumulated amortization. Internally developed software costs are capitalized upon reaching technological feasibility. Amortization of acquired finite-lived intangible assets is computed over the estimated useful lives of the respective assets which is the shorter of the life of the asset or the period during which sales will be generated.

Goodwill

Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of net identified tangible and intangible assets acquired. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. The Company’s impairment review process compares the fair value of the reporting unit to its carrying value, including the goodwill related to the reporting unit utilizing qualitative considerations. To determine the fair value of the reporting unit, the Company may use various approaches including an asset or cost approach, market approach or income approach or any combination thereof. These approaches may require the Company to make certain estimates and assumptions including future cash flows, revenue and expenses. These estimates and assumptions are reviewed each time the Company tests goodwill for impairment and are typically developed as part of the Company’s routine business planning and forecasting process. While the Company believes its estimates and assumptions are reasonable, variations from those estimates could produce materially different results. The Company did not recognize any goodwill impairments for the years ended December 31, 2018 and 2017.

Stock-based compensation

The Company has accounted for stock-based compensation under the provisions of FASB ASC 718 – “Stock Compensation” which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (stock options and common stock purchase warrants). For employee awards, the fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the fair value of each stock option award is estimated on the measurement date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the Company utilizes the graded vesting attribution method under which the entity treats each separately vesting portion (tranche) as a separate award and recognizes compensation cost for each tranche over its separate vesting schedule. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the stock options. For employee awards, the expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term.

Impairment of Long-Lived Assets

Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset.

If the carrying amount of an asset exceeds its undiscounted estimated future cash flows, an impairment review is performed. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Generally, fair value is determined using valuation techniques such as expected discounted cash flows or appraisals, as appropriate. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated or amortized. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. During the years ended December 31, 2018 and 2017, the Company wrote-off net assets of approximately $149,000 and $216,000 as the assets were no longer being utilized or developed for commercial purposes and we do not anticipate any future realizable value.

Research and Development Costs

Research and development costs consist of expenditures for the research and development of new products and technology. These costs are primarily expenses to incurred to perform research projects and develop technology for the Company’s products. Research and development costs are expensed as incurred.

Net Loss per Common Share

The Company computes net loss per share in accordance with FASB ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the years ended December 31, 2018 and 2017 because their effect was antidilutive:

	2018		2017
Stock Options		106,253,339		103,208,331
Warrants		46,201,477		48,164,543
Total		152,454,816		151,372,874

Derivative Instruments

The Company accounted for derivatives through the use of a fair value concept whereby all of the Company’s derivative positions are stated at fair value in the accompanying consolidated balance sheets. Due to the potential adjustment in the conversion price associated with certain of the convertible debentures and the potential adjustment in the exercise price of certain of the warrants, the Company determined that certain of the conversion features and warrants are considered derivative liabilities required to be presented at fair value on the accompanying consolidated balance sheet in prior periods with changes in fair value reported in the consolidated statements of operations. As of December 31, 2018 and 2017, the Company does not have any instruments that are considered derivative instruments. See Note 7.

Common Stock Purchase Warrants

The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40, “Derivatives and Hedging – Contracts in Entity’s Own Equity” (“ASC 815-40”). Based on the provisions of ASC 815- 40, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). On January 31, 2017, the Company entered into agreements with the holders of warrants containing down-round features, resulting in the removal of down-round provisions contained in the warrants. Accordingly, as of December 31, 2018 and 2017, the Company had no common stock warrants requiring liability presentation. See Note 7.

Foreign Currency Translation

The assets, liabilities and results of operations of certain of Ipsidy’s subsidiaries are measured using their functional currency which is the currency of the primary foreign economic environment in which they operate. Upon consolidating these subsidiaries with Ipsidy, the applicable assets and liabilities are translated to US dollars at currency exchange rates as of the applicable dates and their revenues and expenses are translated at the weighted average currency exchange rates during the applicable reporting periods. Translation adjustments resulting from the process of translating these subsidiaries’ financial statements are reported in other comprehensive income (loss) in the accompanying consolidated statements of comprehensive income (loss).

Fair Value Measurements

ASC 820, “Fair Value Measurements”, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, inputs other than level one that are either directly or indirectly observable such as quoted prices for identical or similar assets or liabilities on markets that are not active; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Fair Value of Financial Instruments

The Company is required to disclose fair value information about financial instruments when it is practicable to estimate that value. The carrying amounts of the Company’s cash, accounts receivable, other receivables, accounts payable, accrued expenses, and other current liabilities approximate their estimated fair value due to the short-term maturities of these financial instruments and because related interest rates offered to the Company approximate current rates. The fair value of the Company’s notes payable is $2,000,000, which differs from the carrying value or reported amounts of $1,853,648 at December 31, 2018 because of the debt discounts as discussed in Note 6.

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”). Topic 606 supersedes the revenue recognition requirements in ASU Topic 605, Revenue Recognition (“Topic 605”), and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which discusses the deferral of incremental costs of obtaining a contract with a customer, including the period of amortization of such costs. Collectively, we refer to Topic 606 and Subtopic 340-40 as the “new standard.” The new standard was adopted by the Company on January 1, 2018.

The two permitted transition methods under the new standard are the full retrospective method, in which the new standard would be applied to each prior reporting period presented and the cumulative effect of applying the new standard would be recognized at the earliest period shown, or the modified retrospective method, in which the cumulative effect of applying the new standard would be recognized at the date of initial application. Based on our assessment, the impact of the new standard on our operations in prior periods is not significant. The following is the Company’s revenue recognition policy determined by revenue stream for its significant revenue generating activities through December 31, 2018.

Cards Plus - The Company recognizes revenue for the design and production of cards when products are shipped or services have been performed due to the short term nature of the contracts.

Payment Processing – The Company recognizes revenue for variable fees generated for payment processing solutions that are earned on a usage fee over time based on monthly transaction volumes or on a monthly flat fee rate. Additionally, the Company also sells certain equipment from time to time for which revenue is recognized upon delivery to the customer.

Identity Solutions Software – The Company recognizes revenue based on the identified performance obligations over the performance period for fixed consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction volumes or on a monthly flat fee rate. The Company had a deferred revenue contract liability of approximately $236,000 and $123,000 as of December 31, 2018 and 2017 for certain revenue that will be earned in future periods. The $123,000 of deferred revenue contract liability as of December 31, 2017 was earned in the year ended December 31, 2018. The deferred revenue relates to the service period of support services for two customers. As of December 31, 2018 majority of the deferred revenue contract liability will be recognized over the next quarter. We have allocated the selling price in the contract to one customer which has multiple performance obligations based on the contract selling price that we believe represents a fair market price for the service rendered.

During the year ended December 31, 2018, the Company had revenues from operations in North American, South America and Africa of $1.9 million, $0.5 million and $1.4 million respectively compared to $0.5 million, $0.4 million, $1.4 million respectively in the year ended December 31, 2017.

In 2018, the Company introduced its new identity transaction platform and products as well as its pay for performance plan for both internal and external salesforce, that is based on a percentage of the benefit derived by the Company. For the year ended December 31, 2018, the Company recorded revenues of approximately $5,000 from the new platform.

The requirements under the new standard may impact future revenue and expenses recognition. One impact could be the accounting related to the capitalization and deferral of incremental commission and other costs of obtaining new contracts. We will defer direct and incremental commission as well as costs to obtain a contract and amortize those costs over the term of the related contract. As of December 31, 2018, there was a deferred commission of approximately $5,000 related to future delivery of an identity solutions system and services.

We will review each new contract for the related performance obligations and related revenue and expense recognition implications. We expect that the revenues derived from the new product offerings could include multiple performance obligations. A performance obligation under the new revenue standard is defined as a promise to provide a “distinct” good or service to a customer. The Company has determined that one possible treatment under the new standard is that these services will represent a stand-ready series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Further, the Company has determined that the performance obligation to provide account access and facilitate transactions may meet the criteria for the “as invoiced” practical expedient, in that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company anticipates it may recognize revenue in the amount to which the Company has a right to invoice, based on completed performance at the relevant date. Additionally, the contracts could include implementation services, or support on an “as needed” basis and we will review each contract and determine whether such performance obligations are separate and distinct and apply the new standard accordingly to the revenue and expense derived from or related to each such service.

Additionally, the Company will capitalize the incremental costs of acquiring and fulfilling a contract with a customer if the Company expects to recover those costs. The incremental costs of acquiring and fulfilling a contract are those that the Company incurs to acquire and fulfill a contract with a customer that it would not have incurred if the contract had not been acquired (for example, a sales commission or specific incremental costs associated with the contract).

The Company capitalizes the costs incurred to acquire and fulfill a contract only if those costs meet all the following criteria:

a.	The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.

b.	The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future.

c.	The costs are expected to be recovered.

The Company will capitalize contract acquisition and fulfillment costs related to signing or renewing contracts that meet the above criteria, which will be classified as contract cost assets in the Company’s Consolidated Balance Sheets.

Contract cost assets will be amortized using the straight-line method over the expected period of benefit beginning at the time revenue begins to be realized. The amortization of contract fulfillment cost assets associated with facilitating transactions will be recorded as cost of services in the Company’s Consolidated Statements of Operations. The amortization of contract acquisition cost assets associated with sales commissions that qualify for capitalization will be recorded as selling, general and administrative expense in the Company’s Consolidated Statements of Operations.

As of December 31, 2018, the Company had approximately $15,000 of accounts payable and accrued expenses related to the delivery of biometric identity system and services. The $15,000 will be paid in accordance with the terms of the service provider agreements.

Revenue related to direct financing leases is outside the scope of Topic 606 and is recognized over the term of the lease using the effective interest method.

Recently Issued Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02 (Topic 842). Topic 842 amends a number of aspects of lease accounting, including requiring lessees to recognize leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. In July 2018, the FASB issued supplemental adoption guidance and clarification to Topic 842 within ASU 2018-10 “Codification Improvements to Topic 842, Leases” and ASU 2018-11 “Leases (Topic 842): Targeted Improvements.” The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. A modified retrospective application is required with an option to not restate comparative periods in the period of adoption. This guidance is effective for the Company on January 1, 2019 with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements, which will consist primarily of a balance sheet gross up of its operating leases to show equal and offsetting right-of-use assets and lease liabilities. The Company anticipates using the practical expedients that are included in the guidance for existing operating leases which allows a waiver of lease assessment of their respective classification under the new standard. The Company will adopt the requirements of the new standard as new arrangements are executed.

On June 20, 2018, the FASB issued ASU 2018-07,1 which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. Currently, share-based payment arrangements to nonemployees are accounted for under ASC 718,3 while nonemployee share-based payments issued for goods and services are accounted for under ASC 505-50. ASC 505-50. Before the amendment, the major difference for the Company (but not limited to) was the determination of measurement date which generally is the date on which the measurement of equity classified share-based payments becomes fixed. Equity classified share-based payments for employees was fixed at the time of grant. Equity-classified nonemployee share-based payment awards are no longer measured at the earlier of the date which a commitment for performance by the counterparty is reached or the date at which the counterparty’s performance is complete. They are now measured at the grant date of the award which is the same as share-based payments for employees. The Company will adopt the requirements of the new rule in the first quarter of 2019 and the Company estimates the impact will be immaterial.

In January 2017, the FASB issued Accounting Standards Update 2017-04, “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” (ASU 2017-04). The standard simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments of ASU 2017-04, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but the loss cannot exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 is effective for the calendar year ending December 31, 2020. The amendments require a prospective approach to adoption and early adoption is permitted for interim or annual goodwill impairment tests. The Company is currently evaluating the impact of this standard.

In June 2016, the FASB issued ASU 2017-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for the calendar year ending December 31, 2020. The Company is currently in the process of evaluating the impact of adoption of this ASU on the financial statements.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 2 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following as of December 31, 2018 and 2017:

	2018		2017

Property and equipment	$	238,442	$	179,351
Equipment under capital lease (see Note 11)		156,867		156,867
		395,309		336,218
Less Accumulated depreciation		191,309		126,499
Property and equipment, net	$	204,000	$	209,719

Depreciation expense totaled $64,810 and $82,616 for the years ended December 31, 2018 and 2017, respectively.

OTHER ASSETS

12 Months Ended

Dec. 31, 2018

Other Assets [Abstract]

OTHER ASSETS

NOTE 3 – OTHER ASSETS

The Company’s other assets consist of software being developed for new product offerings that have not been placed into service. Other assets consisted of the following at December 31, 2018 and 2017:

	2018		2017
Software and development	$	1,566,177	$	1,139,409
Other		—		104,122
	$	1,566,177	$	1.243,531

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

NOTE 4 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

The Company’s intangible assets consist of intellectual property acquired from Multi-Pay and FIN in addition to internally developed software that have been placed into service. They are amortized over their estimated useful lives as indicated below. The following is a summary of activity related to intangible assets for the years ended December 31, 2018 and 2017:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total

Useful Lives		10 Years			5 Years			10 Years			10 Years			N/A

Carrying Value at December 31, 2016	$	1,446,166		$	—		$	2,000,858		$	8,067		$	19,200	$	3,474,291
Additions		—			—			—			—			9,246		9,246
Write off of assets		—			—			(212,862	)		—			—		(212,862	)
Amortization		(158,716	)		—			(231,062	)		(2,817	)		—		(392,595	)
Carrying Value at December 31, 2017		1,287,450			—			1,556,934			5,250			28,446		2,878,080
Additions		—			959,882			—			—			49,736		1,009,618
Write off of assets		—			—			(148,627	)		—			—		(148,627	)
Amortization		(158,716	)		(50,989	)		(216,365	)		(2,817	)		—		(428,887	)
Carrying Value at December 31, 2018	$	1,128,734		$	908,893		$	1,191,942		$	2,433		$	78,182	$	3,310,184

The following is a summary of intangible assets as of December 31, 2017:

	Customer Relationships			Acquired and Developed Software		Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	—	$	2,146,561		$	14,087		$	28,446	$	3,776,253
Accumulated amortization		(299,709	)		—		(589,627	)		(8,837	)		—		(898,173	)
Carrying Value at December 31, 2017	$	1,287,450		$	—	$	1,556,934		$	5,250		$	28,446	$	2,878,080

The following is a summary of intangible assets as of December 31, 2018:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	959,882		$	1,759,809		$	14,087		$	78,182	$	4,399,119
Accumulated amortization		(458,425	)		(50,989	)		(567,867	)		(11,654	)		—		(1,088,935	)
Carrying Value at December 31, 2018	$	1,128,734		$	908,893		$	1,191,942		$	2,433		$	78,182	$	3,310,184

The following is the future amortization of intangible assets for the year ended December 31:

2019	$	564,987
2020		562,554
2021		562,554
2022		469,220
2023		418,232
Thereafter		732,637
	$	3,310,184

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of December 31, 2018 and 2017:

	2018		2017
Trade payables	$	401,272	$	232,842
Accrued interest		401,667		275,000
Accrued payroll and related		260,153		468,012
Other		284,134		471,331
Total	$	1,347,226	$	1,447,185

NOTES PAYABLE, NET

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

NOTES PAYABLE, NET

NOTE 6 - NOTES PAYABLE, NET

On January 31, 2017, the Company entered into Conversion Agreements with several accredited investors (the “Investors”) pursuant to which substantially all Investors agreed to convert all amounts of notes payable and convertible notes payable due and payable to such persons including interest under the terms of their respective financing or loan agreement as of January 31, 2017 into shares of Company common stock at $0.10 per share. Certain Investors that had a conversion price less than $0.10 converted at such applicable conversion price. The Conversion Agreements resulted in the conversion of notes and convertible notes amounting to approximately $6,331,000 into 84,822,006 shares of Company common stock with a fair value of approximately $21,610,000. The Investors also agreed to waive any existing rights with respect to certain anti-dilution rights contained in their Stock Purchase Warrants. The Company agreed to reduce the exercise of all outstanding Stock Purchase Warrants acquired as part of a financing or loan that had an exercise price in excess of $0.10 per share to $0.10 per share.

As a result of the above agreements associated with the conversion Agreements, the Company recorded a loss on the conversion of debt of approximately $6.0 million (including the effect of the elimination of related conversion feature derivative liabilities – see Note 7), a loss on the modification of warrants of approximately $0.2 million, and a loss on the modification of the derivatives of approximately $0.3 million.

On February 22, 2017, the Company entered into an Agreement and Release the (“February 22, 2017 Agreement”) with a holder of certain debentures that represented final and full payment of all amounts owed under these debentures which included debt with a face value of $300,000, accrued interest of approximately $31,000, cancellation of 3,600,000 warrants previously accounted for as derivative liabilities as well as certain pledged shares (2,500,000 shares) in exchange for $300,000 in cash which was paid in May 2017. As a result of the February 22, 2017 Agreement, the Company recorded a gain on the extinguishment of notes payable of approximately $2.8 million.

See note 7.

The following is a summary of notes payable as of December 31, 2018 and 2017:

	2018			2017

In January 2017, the Company issued a Senior Unsecured Note (“Note”) a face value of $3,000,000, payable two years from issuance, along with an aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The Company allocated the proceeds to the common stock based on their relative fair value and recorded a discount of $830,018 to be amortized into interest expense over the two-year term of the note. The Company also paid debt issuance costs consisting of a cash fee of $120,000 and 1,020,000 shares of common stock of the Company with a fair value of $306,000. On April 30, 2018, the Company and the Noteholder agreed to extend the due date of the note until April 30, 2020 for 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in the terms of this note payable has been determined to be a debt extinguishment in accordance with ASC 470. The reported amounts under the debt extinguishment are not significantly different than that of the Company's reported amounts.	$	2,000,000		$	3,000,000
Total Principal Outstanding		2,000,000			3,000,000
Unamortized Deferred Discounts		(106,886	)		(455,935	)
Unamortized Debt Issuance Costs		(39,466	)		(168,345	)
Notes Payable, net of current maturities	$	1,853,648		$	2,375,720

The following is a roll-forward of the Company’s notes payable and related discounts for the years ended December 31, 2018 and 2017:

	Principal			Debt Issuance			Debt
	Balance			Costs			Discounts			Total
Balance at December 31, 2016	$	6,065,914		$	(243,055	)	$	(165,841	)	$	5,657,018
New issuances		3,000,000			(310,790	)		(841,727	)		1,847,483
Payments/conversions		(6,065,914	)		—			—			(6,065,914	)
Amortization		—			385,500			551,633			937,133
Balance at December 31, 2017		3,000,000			(168,345	)		(455,935	)		2,375,720
New issuances		—			—			—			—
Payments/Conversions		(1,000,000	)		—			—			(1,000,000	)
Amortization		—			128,879			349,049			477,928
Balance at December 31, 2018	$	2,000,000		$	(39,466	)	$	(106,886	)	$	1,853,648

Future maturities of notes payable are as follows for the calendar years 2019 and 2020:


2019	$	—
2020		2,000,000
	$	2,000,000

DERIVATIVE LIABILITY

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY

NOTE 7 –DERIVATIVE LIABILITY

Due to the potential adjustment in the conversion price associated with certain of the convertible debentures and the potential adjustment in the exercise price of certain of the warrants, the Company had determined that certain conversion features and warrants are derivative liabilities.

As described in Note 6 above, the Company on January 31, 2017 entered into Conversion Agreements with Investors pursuant to which each Investor agreed to convert all amounts of debt accrued and payable to such persons including interest under the terms of their respective financing or loan agreement into shares of Company common stock at $0.10 per share. Certain Investors that had a conversion price less than $0.10 converted at such applicable conversion price. The investors at the time of conversion also agreed to waive any existing rights with respect to certain price protection and anti-dilution rights contained in their Stock Purchase Warrants.

Additionally, on February 22, 2017, the Company entered into an Agreement and Release with a holder of certain debentures that represented final and full payment of all amounts owed under such debentures which included debt with a face value of $300,000, accrued interest of approximately $31,000, cancellation of 3,600,000 warrants (previously accounted for as derivative liabilities) as well as certain pledged shares (2,500,000 shares) in exchange for $300,000 in cash. These debentures also had potential price adjustments on these debentures that have also been eliminated.

Therefore, as a result of the conversion and repayment of the outstanding indebtedness and related accrued interest as well as the elimination of anti-dilution rights of Stock Purchase Warrants, the Company no longer holds liabilities with derivatives requiring fair value as of December 31, 2017.

A summary of derivative activity for the year ended December 31, 2017 is as follows:

Balance at January 1, 2017	$	18,056,631
Modification of derivatives		319,770
Cancellation of warrants previously accounted for as derivative liabilities and elimination of derivative conversion features resulting from conversion of related party debt to equity		(11,213,573	)
Change in fair value		452,146
Reclassification of derivatives to equity upon removal of price protection in warrants		(7,614,974	)
Balance at December 31, 2017	$	—

Certain notes payable, convertible notes payable and related interest were converted into equity in January 2017. Accordingly, the associated derivative liability related to these notes payable, convertible notes payable and related interest is classified as long-term liabilities at December 31, 2018 in accordance with US GAAP.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2018

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

2018 Transactions

On August 9, 2018, the Company prepaid $1,000,000 of principal of the $3,000,000 Senior Unsecured Note dated February 1, 2017 held by the Stern Trust (Mr. Stern is a Company Board of Director) plus the related accrued interest of approximately $158,000. During the year ended December 31, 2018, the Company recorded approximately $284,000 of interest expense under the terms and conditions of the Note. Additionally, the Company and the Stern Trust agreed to extend the due date of the note until April 30, 2020 for an extension fee of 1,500,000 shares of Common Stock at a market value of $420,000 based on trading price.

Purchase of Common Stock

In August 2018, two of the Company’s Directors, Mr. Stern and Mr. Selzer, respectively purchased an additional 6,666,667 and 666,667 shares of common stock of the 2018 offering as described in Note 9.

Other

In connection with the 2018 offering of common stock, the Company incurred fees to Network 1 Financial Securities, Inc. (“Network 1”), a registered broker-dealer. The Network 1 fees and expenses comprise of approximately $659,000 paid in cash and approximately 2,470,000 common stock purchase warrants for five years at a price of $0.165 cents per share. A member of the Company’s Board of Director’s maintains a partnership with a key principal of Network 1.

The Company leases its Corporate headquarters from Bridgeworks LLC, (“Bridgeworks”), a company providing office facilities to emerging companies, principally owned by Mr. Beck and his family. Mr. Beck is Chairman, Chief Executive Officer and President of the Company. During 2018, the Company paid Bridgeworks $89,100.

In connection with a Confidential Settlement Agreement and General Release Agreement with Mr. Solomon, a former director and officer, as described below, the Company paid approximately $160,000 during the year ended December 31, 2018. Additionally, Mr. Solomon and the Company entered into an Agency Agreement dated September 13, 2017 pursuant to which Mr. Solomon agreed to be engaged as a non- exclusive sales agent for the Company’s products on an as needed basis for a term of three years in consideration of sales commissions. During the year ended December 31, 2018, the Company paid Mr. Solomon a sales commission of approximately $84,000.

2017 Transactions

Amount Due Officer and Director

In November 2016, the Company issued a note payable for $13,609 to one of its officers and a Board of Director. The note was repaid in April 2017.

Notes Payable

In January 2017, the Company issued to the Stern Trust a Senior Unsecured Note with a face value of $3,000,000, payable two years from issuance, along with aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The loan became a Note due to one of its Board of Directors upon Mr. Stern’s election in September 2017. During 2017, the Company recorded $275,000 of interest expense under the terms and conditions of the loan.

Convertible Notes Payable

On January 31, 2017, the Company entered into Conversion Agreements with Mr. Selzer, a director of the Company and Vista Associates, a family partnership pursuant to which Mr. Selzer converted $150,000 in debt plus interest into 1,753,500 shares of common stock and $40,000 of debt plus interest into 1,537,778 shares of common stock.

Purchase of Common Stock

In March 2017, Mr. Selzer, a Board of Director, purchased an additional 500,000 shares of common stock and in December 2017, Mr. Stern purchased an additional 2,000,000 shares of common stock in the capital stock offerings as described in Note 9.

Other

In connection with the Company’s ability to secure third-party financing during the year ended December 31, 2017, the Company paid Network 1 Financial Securities, Inc. (“Network 1”), a registered broker-dealer, cash fees of $710,000, issued Network 1 2,200,000 shares of common stock and provided 1,153,846 common stock purchase warrants for five years at a price of $0.143 cents per share. A member of the Company’s Board of Directors maintains a partnership with a key principal of Network 1.

The Company leases it Corporate headquarters from Bridgeworks LLC, (“Bridgeworks”), a company providing office facilities to emerging companies, principally owned by Mr. Beck and his family. Mr. Beck is Chairman, Chief Executive Officer and President of the Company. During 2017, the Company paid Bridgeworks $71,950.

Additionally, as noted above Parity provided consulting services to the Company prior to Phillip Beck becoming an executive officer. During 2017, the Company paid Parity $34,964 for consulting services.

On September 13, 2017, one of its former officers and a former director (Douglas Solomon) of the Company entered into a Confidential Settlement Agreement and General Release (the “Settlement Agreement”) pursuant to which the Offer Letter and Executive Retention Agreement entered between the Company and Mr. Solomon dated January 31, 2017 were terminated effective September 1, 2017 and Mr. Solomon resigned as Executive Director, Government Relations Enterprise Security upon execution of the Settlement Agreement. The Company agreed to pay Mr. Solomon $8,048.13 representing unused 2017 vacation entitlement and pay for one day, reimburse Mr. Solomon for all expenses consistent with the Company’s reimbursement policy and pay Mr. Solomon’s COBRA employee only benefits through September 2018 if Mr. Solomon elected to be included under such coverage. In addition, the Company acknowledged that the 20,000,000 stock options previously granted to Mr. Solomon have vested effective as of September 1, 2017. The parties also provided mutual releases from all claims, demands, actions, causes of action or liabilities. As further consideration for entering into the Settlement Agreement, Mr. Solomon and the Company entered into an Agency Agreement dated September 13, 2017 pursuant to which Mr. Solomon agreed to be engaged as a non- exclusive sales agent for the Company’s products on an as needed basis for a term of three years in consideration of sales commissions including a monthly non-refundable minimum commission to be paid for 24 months. During the year end December 31, 2017, the Company paid Mr. Solomon approximately $54,000.

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

Stockholders' Equity:

STOCKHOLDER'S EQUITY

NOTE 9– STOCKHOLDERS’ EQUITY

On September 28, 2017, the stockholders of the Company approved increasing the number of authorized shares of common stock from 500,000,000 to 1,000,000,000. The Company had 478,950,996 and 403,311,988 shares issued and outstanding as of December 31, 2018 and 2017, respectively. In addition, the Company is authorized to issue 20,000,000 shares of preferred stock.

Common Stock

2018 Common Stock Transactions

●

During the year ended 2018, the Company granted approximately 2,456,000 shares of restricted stock to the non-employee Directors in connection with their compensation to serve as Board Members. The shares were valued at the fair value at the date of grant and vest quarterly. The restricted shares granted to the Board Member for compensation is for the period November 1, 2017 to October 31, 2019. Additionally, during the year ended 2018, the Company granted 2,750,000 shares of restricted stock to employees of which 2,000,000 will be vested upon achieving certain performance criteria and 750,000 will vest over a three-year period.

●

The Company also issued 456,735 shares of common stock to a service provider in satisfaction of $97,126 due for services.

●

During the year ended December 31, 2018, investors exercised 4,433,333 warrants at an average price of $0.05 cents per share on a cashless exercise basis in exchange for approximately 3,500,000 shares of common stock of the Company. Additionally, option holders exercised approximately 3,200,000 vested options at an average price of $0.13 cents for approximately 1,600,000 shares of common stock.

●

During the year ended December 31, 2018, the Company cancelled 728,448 shares of common stock in settlement of amounts due from the Multipay acquisition.

●

In August 2018, the Company entered into Subscription Agreements with accredited investors (the “August 2018 Accredited Investors”) pursuant to which the August 2018 Accredited Investors agree to purchase an aggregate of approximately 64,072,000 shares of the Company’s common stock for an aggregate purchase price of approximately $9,611,000. In connection with this private offering, the Company paid Network 1, a registered broker-dealer, a cash fee of approximately $629,000 and issued approximately 2,470,000 common stock purchase warrants valued at approximately $314,000 that are exercisable for a term of five years at an exercise price of $0.165 per share.

2017 Common Stock Transactions

●

As described in Note 6, on January 31, 2017, in connection with the issuance of a $3,000,000 Senior Unsecured Note, an aggregate of 4,500,000 shares of Common Stock was issued to the Stern Trust and the Company issued (Network 1), a registered broker-dealer, 1,200,000 shares of common stock of the Company in conjunction with its services.

●

As described in Note 6 on January 31, 2017, the Company entered into Conversion Agreements with Investors pursuant to which each Investor agreed to convert all amounts of debt accrued and payable to such person including interest under the terms of their respective financing or loan agreement as of January 31, 2017 into shares of Company common stock at $0.10 per share. The Conversion Agreements resulted in the issuance of an approximately of 84,822,000 shares of Company common stock.

●

On March 22, 2017, the Company entered into Subscription Agreements with several accredited investors (the “March 2017 Accredited Investors”) pursuant to which the March 2017 Accredited Investors agreed to purchase an aggregate of 20,000,000 shares of the Company’s common stock for an aggregate purchase price of $4,000,000. The proceeds were received in 2017. In connection with this private offering, the Company paid Network 1, a registered broker-dealer, a cash fee of $240,000 and issued Network 1 1,000,000 shares of common stock of the Company.

●

Additionally, the Company cancelled certificates for 2,500,000 shares of common stock acquired in conjunction with the purchase of certain debentures.

●

During the year ended December 31, 2017, the Company issued approximately 594,000 shares of common stock as consideration for services. The fair value of the shares, totaling approximately $140,000 was estimated based on the publicly quoted trading price and recorded as expense.

●

On December 18, 2017, the Company entered into Subscription Agreements with accredited investors (the “December 2017 Accredited Investors”) pursuant to which the December 2017 Accredited Investors agreed to purchase an aggregate of approximately 38,464,000 shares of the Company’s common stock for an aggregate purchase price of $5,000,000. In connection with this private offering, the Company agreed to pay Network 1, a registered broker-dealer, a cash fee of $350,000 and issue common stock purchase warrants valued at $181,154 to acquire 1,153,846 shares of common stock of the Company exercisable for a term of five years at an exercise price of $0.143 per share.

●

During the year ended December 31, 2017, the Company granted 15,000,000 shares of restricted stock to two executive offers which will vest upon achieving certain performance criteria.

The criteria for the 2018 and 2017 performance based restricted stock have not been met as of December 31, 2018

Warrants

●

During the year ended 2018, investors exercised 4,433,333 warrants at an average price of $0.05 cents per share on a cashless exercise basis in exchange for shares of common stock of the Company.

●

During the year ended December 31, 2017, the Company issued 1,153,846 warrants in connection with the issuance of approximately 38,461,500 shares of common stock at an exercise price of $.143 per share for a period of five years.

●

During the year ended December 31, 2017, an investor exercised 528,000 warrants at $0.05 cents for an aggregate price of $26,400 in exchange for shares of common stock of the Company.

●

On February 22, 2017, the Company entered the “February 22, 2017 Agreement”) with a holder of certain debentures that represented final and full payment of all amounts owed under these debentures which included debt with a face value of $300,000, accrued interest of approximately $31,000, and cancellation of 3,600,000 warrants. See Note 6.

The following is a summary of the Company’s warrant activity for the years ended December 31, 2018 and 2017:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at January 1, 2017		51,138,697		$	0.11		2.8 Years
Granted		1,153,846		$	0.14		5.0 Years
Exercised/Cancelled		(4,128,000	)	$	0.08
Outstanding at December 31, 2017		48,164,543		$	0.11		2.9 Years
Granted		2,470,267		$	0.14		5.0 Years
Exercised/Cancelled		(4,333,333	)	$	0.05		—
Outstanding at December 31, 2018		46,201,477		$	0.08		1.9 Years

Stock Options

The Company has adopted the Ipsidy Inc. 2014 Equity Compensation Plan and the 2017 Incentive Stock Plan. The Company has no other stock options plans in effect as of December 31, 2018.

On November 21, 2014, our Board of Directors authorized the Ipsidy Inc. Equity Compensation Plan (the “2014 Plan”). On September 28, 2017, the shareholders of the Company approved the 2017 Incentive Stock Plan (“2017 Incentive Plan”). The following is a summary of principal features of the 2014 Plan and the 2017 Incentive Plan. The summaries, however, does not purport to be a complete description of all the provisions of each plan.

The 2014 Plan covers 25,000,000 shares of common stock and the 2017 Incentive Plan covers 70,000,000 shares of common stock. Both Plans are administered by the Compensation Committee.

The terms of Awards granted under the plans shall be contained in an agreement between the participant and the Company and such terms shall be determined by the Compensation Committee consistent with the provisions of the applicable plan. The terms of Awards may or not require a performance condition in order to vest the equity comprised in the relevant Award. The terms of each Option granted shall be contained in a stock option agreement between the optionee and the Company and such terms shall be determined by the Compensation Committee consistent with the provisions of the applicable plan

The Company has also granted equity awards that have not been approved by security holders.

2018 Stock Option Issuances

●

During the year ended December 31, 2018, the Company granted options to acquire 6,220,000 shares of common stock to ten employees and one non-employee of which 970,000 are exercisable at an average price of $0.12, 3,250,000 options are exercisable at an average price of $0.22 per share, and 2,000,000 are exercisable at $0.25 per share. The options have a term of ten years, were granted at fair market value at the date of grant .and vest over three years. The grant date fair value of the options totaled approximately $962,000, which will be charged to expense over the three-year vesting term of which approximately $231,000 was related to non-employees.

2017 Stock Option Issuances

●

In connection with the engagement of the CEO and Chief Financial Officer (“CFO”) on January 31, 2017, the Company granted the CEO and CFO stock options to acquire 15,000,000 shares and 5,000,000 shares of common stock of the Company respectively at an exercise price of $0.10 per share for a period of ten years. Further, the Company has entered into Restricted Stock Purchase Agreements with the CEO and CFO in which they were provided 15,000,000 shares and 5,000,000 shares of common stock at a per share price of $0.0001, which shares of common stock vest upon achieving a performance threshold which has not been achieved at December 31, 2018.

●

Additionally, the Company granted two employee stock options to acquire 1,250,000 shares of common stock at an exercise price representing fair value at the time of grant.

The Company determined the grant date fair value of the options granted during the years ended December 31, 2018 and 2017 using the Black Scholes Method and the following assumptions:

	2018	2017
Expected Volatility	79.0% to 93.0%	79.0% to 93.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	2.42% – 3.00%	1.16% to 1.49%
Dividend Rate	0.00%	0.00%

Activity related to stock options for the years ended December 31, 2018 and 2017 is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value

Outstanding as of January 1, 2017		86,925,000		$	0.21		8.7	$	7,698,650
Granted		21,250,000		$	0.11		10.0	$	7,475,000
Forfeited		(4,966,669	)	$	0.08		—	$	—
Outstanding as of December 31, 2017		103,208,331		$	0.19		9.5	$	10,023,400
Granted		6,220,000		$	0.22		10.0	$	2,868,750
Exercised		(3,174,992	)	$	0.13		—	$	—
Outstanding as of December 31, 2018		106,253,339		$	0.20		8.3	$	11,457,291
Exercisable as of December 31, 2018		92,925,694		$	0.20		7.4	$	3,316,208

The following table summarizes stock option information as of December 31, 2018:

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$	0.0001		3,500,000		6.8		3,500,000
$	0.05		32,783,339		7.6		28,314,583
$	0.1		27,200,000		7.8		24,977,778
$	0.12		970,000		9.8		—
$	0.13		250,000		8.8		83,333
$	0.15		2,800,000		6.9		2,800,000
$	0.22		2,750,000		9.0		750,000
$	0.25		2,500,000		8.9		500,000
$	0.26		500,000		9.3		—
$	0.29		1,000,000		8.3		—
$	0.4		1,000,000		7.2		1,000,000
$	0.45		31,000,000		6.9		31,000,000
					7.4
			106,253,339				92,925,694

As of December 31, 2018, there was approximately $1,138,000 and $183,000 of unrecognized compensation costs related to employee stock options and non-employee stock options, respectively, outstanding which will be recognized in 2019 through 2021. The company will recognize forfeitures as they occur. Stock compensation expense for the years ended December 31, 2018 and 2017 was approximately $2,430.000 and $5,651,000, respectively.

The criteria for the 2018 and 2017 performance based restricted stock have not been met as of December 31, 2018.

DIRECT FINANCING LEASE

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

DIRECT FINANCING LEASE

NOTE 10 – DIRECT FINANCING LEASE

In September 2016, the Company and an entity in Colombia entered into a rental contract for the rental of 78 kiosks to provide cash collection and fare services at transportation stations. The lease term commenced in May 2017 when the kiosks were installed and operational. The term of the rental contract is ten years at an approximate monthly rental of $11,900. The lessee has the option at the end of the lease term to purchase each unit for approximately $40. The term of the lease approximates the expected economic life of the kiosks. As such, the lease was accounted for as a direct financing lease.

The Company has recorded the transaction at its net investment in the lease and will receive monthly payments of $11,856 before estimated executory costs, or $142,272, annually, to reduce investment in the lease and record income associated with the related amount due. Executory costs are estimated to be $1,677 month and initial direct costs are not considered significant. The transaction resulted in incremental revenue in the years ended December 31, 2018 and 2017 of approximately $69,400 and $74,700, respectively.

The equipment under the capital lease is valued at approximately $748,000. At the inception of the lease term, the aggregate minimum future lease payments to be received is approximately $1,422,000 before executory cost. Unearned income is recorded at the inception of this lease was approximately $474,000 and will be recorded over the term of the lease using the effective income rate method. Future minimum lease payments to be received under the lease for the next five years and thereafter are as follows:

Year Ending December 31,
2019	$	122,148
2020		122,148
2021		122,148
2022		122,148
2023		122,148
Thereafter		285,012
		895,752
Less deferred revenue		(276,989	)
Net investment in lease	$	618,763

LEASE OBLIGATION PAYABLE

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

LEASE OBLIGATION PAYABLE

NOTE 11 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a capital lease. The leased equipment is amortized on a straight line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. Total amortization related to the lease equipment as of December 31, 2018 is $58,934. The following is a schedule showing the future minimum lease payments under capital lease by year and the present value of the minimum lease payments as of December 31, 2018. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022. Future cash payment related to this capital lease are as follow for the calendar years ending from 2019-2022.

2019	$	43,096
2020		43,096
2021		43,096
2022		10,774
Total minimum lease payments		140,062

Less: Amount representing interest		(24,554	)

Present value of minimum lease payments	$	115,508

INCOME TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 12 – INCOME TAXES

The Company accounts for income taxes in accordance with ASC 740 which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim period, disclosure and transition. There were no unrecognized tax benefits as of December 31, 2018 and 2017.

The Company’s loss before income taxes from US and Foreign sources for the years ended December 31, 2018 and 2017, are as follows:

	2018			2017
United States	$	(8,775,452	)	$	(15,488,668	)
Outside United States		(1,221,919	)		(1,964,180	)
Loss before income taxes	$	(9,997,371	)	$	(17,452,848	)

The following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years ended December 31, 2018 and 2017:

	2018			2017
US Federal Statutory Tax Rate		21.00	%		34.00	%
State taxes		4.35	%		3.63	%
Permanent items		—			(5.94	%)
Amortization of Discount - APIC		—			2.04	%
NOL True-Ups		(2.48	%)		(2.78	%)
Change in tax rates		—			(23.88	%)
Change in valuation allowance		(27.82	%)		(7.07	%)

		0.00	%		0.00	%

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2018 and 2017 are summarized as follows:

	2018			2017
Deferred Tax Assets
Net Operating Loss	$	5,981,004		$	4,305,729
Stock Options		5,890,565			5,276,885
Charitable Contributions		1,267			1,267
Basis Difference in Intangible Assets		99,296			39,125
Basis Difference Fixed Assets		5,096			—
Accrued Payroll		42,939			97,127
Valuation Allowance		(11,983,078	)		(9,559,975	)
Total Deferred Tax Asset		37,089			160,158

Debt Discounts		(27,086	)		(115,553	)
Debt Issuance Costs		(10,003	)		(42,667	)
Basis Difference Fixed Assets		—			(1,938	)
Total Deferred Tax Liability		(37,089	)		(160,158	)

Net Deferred Tax Asset	$	—		$	—

As of December 31, 2011, the Company has available federal net operating loss carry forward of $19.9 million and state net operating loss carry forwards of $19.9 million, the most significant of which expire from 2020 until 2037. Additionally, the Company has income tax net operating loss carryforwards related to our international operations which have an indefinite life.

The Company assess the recoverability of its net operating loss carry forwards and other deferred tax assets and records a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. The Company continues to maintain the valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2018 the Company had a valuation allowance totaling $12.0 million against its deferred tax assets, net of deferred tax liabilities, due to insufficient positive evidence, primarily consisting of losses within the taxing jurisdictions that have tax attributes and deferred tax assets.

The Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017. The law included significant changes to the US Corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation and the transition of US international taxation from a worldwide tax system to a territorial tax system. As the Company is not currently a taxpayer due to ongoing operating losses, the impact on the financial statements is not material. We have reflected the lower rates in the calculation above in the December 31, 2018 information.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe that the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company.

Executive Compensation

As of December 31, 2018, the Company had employment agreements with certain key members of the management team providing base salary amounts and provisions for stock compensation, cash bonuses and other benefits to be granted at the discretion of the Board of Directors.

As of January 31, 2017, the Company made certain changes to the management team and its Board of Directors and entered into Executive Retention Agreements with four members of the management team. The Executive Retention Agreements include provisions for base salary, bonus amounts upon meeting certain performance milestones, severance benefits for involuntary termination from a change in control or other events as defined in their respective agreements. Additionally, the vesting of certain awards could be accelerated upon a change in control (as defined).

Operating Leases

The Company leases approximately 2,100 square feet of office space in Plantation, Monthly is ill approximate $2,700 per month with a 3% increase on each annual anniversary. The company will be responsible for their respective share of building expenses. The lease extends to August 2020.

Additionally, the Company leased office spaces in Long Beach, New York at a monthly rent of $7,425. The lease can be terminated on 30 day’s notice.

In October 2018, the Company a sublease entered into an office lease in Alpharetta, Ga. for approximately $3,800 per month through March 31, 2020 or through the termination of the master lease.

In addition, the Company is party to operating leases for its office location and warehouse in Colombia. In April 2017, MultiPay S.A.S. entered into a new office lease beginning April 22, 2017 for two years. The new lease cost is approximately $9,000 per month with an inflation adjustment after one year. The lease was extended for one additional year. Furthermore, the Company leases an apartment at approximately $1,700 a month

The Company also leases space for its operation in South Africa. The current lease is through June 30, 2022 and the approximate monthly rent is $8,000.

Rent expense for the years ended December 31, 2018 and 2017 was approximately $381,000 and $360,000 respectively.

The following is a schedule, by years, of the future minimum lease payments required under non-convertible operating leases as of December 31, 2018.

2019	$	217,000
2020		133,000
2021		96,000
2022		49,000
Total	$	495,000

The Company has entered an agreement with a facial recognition software company for the grant of a perpetual license for commercial use (unless terminated for breach by either party). The initial payment under the license of $120,000 was paid in 2018 with two additional installments due on the first and second anniversary of the Effective Date of the arrangement amounting to $80,000 and $40,000, respectively. Additionally, the Company has an agreement with an identity consulting organization to provide services through September 30, 2019 at a rate of $15,000 per month.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

General information

The segment and geographic information provided in the table below is being reported consistent with the Company’s method of internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is available and which is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The CODM regularly reviews net revenue and gross profit by geographic regions. The Company products and services operate in two reportable segments; identity management and payment processing.

Information about revenue, profit/loss and assets

The CODM evaluates performance and allocates resources based on net revenue and operating results of the geographic region as the current operations of each geography are either primarily identity management or payment processing. Identity management revenue is generated in North America and Africa and payment processing is earned in South America which are the three geographic regions of the Company. We have included the lease income in payment processing are the leases are related to unattended ticking kiosks.

Long lived assets are in North America, South America and Africa. Most assets are intangible assets recorded from the acquisition of MultiPay (South America) in 2015 and FIN Holdings (North America and Africa) in 2016. Assets for North America, South America and Africa amounted to approximately $7.4 million, $.8 million and $2.1 million respectively of which $4.9 million, $.2 million and $1.6 million related to goodwill as of December 31, 2018.

Analysis of revenue by segment and geographic region and reconciliation to consolidated revenue, gross profit, and net loss are provided below. The Company has included in the schedule below an allocation of corporate overhead based on management’s estimate of resource requirements.

	Year Ended December 31,
	2018			2017
Net Revenues:
North America	$	1,941,866		$	518,023
South America		476,234			394,320
Africa		1,410,893			1,391,263
		3,828,993			2,303,606

Identity Management		3,352,759			1,909,286
Payment Processing		476,234			394,320
		3,828,993			2,303,606

Loss From Operations
North America		(1,959,125	)		(2,672,161	)
South America		(6,540,029	)		(8,300,967	)
Africa		(824,065	)		(1,035,987	)
		(9,323,219	)		(12,009,115	)

Identity Management		(2,783,190	)		(3,708,148	)
Payment Processing		(6,540,029	)		(8,300,967	)
		(9,323,219	)		(12,009,115	)

Gain (loss) on derivative liability		—			(4,106,652	)
Interest Expense		(757,801	)		(1,337,081	)
Other income/(expense)		83,649			0

Loss before income taxes		(9,997,371	)		(17,452,848	)

Income tax expense		(30,242	)		(28,781	)

Net loss	$	(10,027,613	)	$	(17,481,629	)

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Going Concern

Going Concern

Basis of Consolidation

Basis of Consolidation

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”) in all material respects,and have been consistently applied in preparing the accompanying consolidated financial statements.

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Cards Plus - The Company recognizes revenue for the design and production of cards when products are shipped or services have been performed due to the short term nature of the contracts.

The Company capitalizes the costs incurred to acquire and fulfill a contract only if those costs meet all the following criteria:

a.	The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify.

b.	The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future.

c.	The costs are expected to be recovered.

Revenue related to direct financing leases is outside the scope of Topic 606 and is recognized over the term of the lease using the effective interest method.

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Inventories of kiosks held by IDGS S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value. The kiosks provide electronic ticketing for transit systems. Inventory of plastic/ID cards, digital printing material, which are held by Cards Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing material are used to provide plastic loyal ID and other types of cards. Inventories at December 31, 2018 and December 31, 2017 consist of cards inventory and kiosks that have not been placed into service. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of December 31, 2018 and December 31, 2017, the Company recorded an inventory valuation allowance of approximately $707,000 and $353,000 to reflect net realizable value of kiosks that are being held for sale and the Company believes no valuation allowance was necessary regarding the cards inventory.

Concentration of Credit Risk

Concentration of Credit Risk

The Company’s financial instruments that potentially expose the Company to a concentration of credit risk consist of cash and accounts receivable.

Income Taxes

Income Taxes

Leases

Leases

Property and Equipment, net

Property and Equipment, net

Other Assets - Software Development Costs

Other Assets - Software Development Costs

Intangible Assets

Intangible Assets

Goodwill

Stock-based compensation

Stock-based compensation

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Research and Development Costs

Research and Development Costs

Net Loss per Common Share

Net Loss per Common Share

	2018		2017
Stock Options		106,253,339		103,208,331
Warrants		46,201,477		48,164,543
Total		152,454,816		151,372,874

Derivative Instruments

Derivative Instruments

Common Stock Purchase Warrants

Common Stock Purchase Warrants

The Company accounts for common stock purchase warrants in accordance with ASC Topic 815- 40, “Derivatives and Hedging – Contracts in Entity’s Own Equity” (“ASC 815-40”). Based on the provisions of ASC 815- 40, the Company classifies as equity any contracts that (i) require physical settlement or net-share settlement, or (ii) gives the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). On January 31, 2017, the Company entered into agreements with the holders of warrants containing down-round features, resulting in the removal of down-round provisions contained in the warrants. Accordingly, as of December 31, 2018 and 2017, the Company had no common stock warrants requiring liability presentation. See Note 7.

Foreign Currency Translation

Foreign Currency Translation

Fair Value Measurements

Fair Value Measurements

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of potentially dilutive securities

The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the years ended December 31, 2018 and 2017 because their effect was antidilutive:

	2018		2017
Stock Options		106,253,339		103,208,331
Warrants		46,201,477		48,164,543
Total		152,454,816		151,372,874

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment consisted of the following as of December 31, 2018 and 2017:

	2018		2017

Property and equipment	$	238,442	$	179,351
Equipment under capital lease (see Note 11)		156,867		156,867
		395,309		336,218
Less Accumulated depreciation		191,309		126,499
Property and equipment, net	$	204,000	$	209,719

OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

Other Assets [Abstract]

Schedule of other assets

Other assets consisted of the following at December 31, 2018 and 2017:

	2018		2017
Software and development	$	1,566,177	$	1,139,409
Other		—		104,122
	$	1,566,177	$	1.243,531

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

The following is a summary of activity related to intangible assets for the years ended December 31, 2018 and 2017:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total

Useful Lives		10 Years			5 Years			10 Years			10 Years			N/A

Carrying Value at December 31, 2016	$	1,446,166		$	—		$	2,000,858		$	8,067		$	19,200	$	3,474,291
Additions		—			—			—			—			9,246		9,246
Write off of assets		—			—			(212,862	)		—			—		(212,862	)
Amortization		(158,716	)		—			(231,062	)		(2,817	)		—		(392,595	)
Carrying Value at December 31, 2017		1,287,450			—			1,556,934			5,250			28,446		2,878,080
Additions		—			959,882			—			—			49,736		1,009,618
Write off of assets		—			—			(148,627	)		—			—		(148,627	)
Amortization		(158,716	)		(50,989	)		(216,365	)		(2,817	)		—		(428,887	)
Carrying Value at December 31, 2018	$	1,128,734		$	908,893		$	1,191,942		$	2,433		$	78,182	$	3,310,184

The following is a summary of intangible assets as of December 31, 2017:

	Customer Relationships			Acquired and Developed Software		Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	—	$	2,146,561		$	14,087		$	28,446	$	3,776,253
Accumulated amortization		(299,709	)		—		(589,627	)		(8,837	)		—		(898,173	)
Carrying Value at December 31, 2017	$	1,287,450		$	—	$	1,556,934		$	5,250		$	28,446	$	2,878,080

The following is a summary of intangible assets as of December 31, 2018:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	959,882		$	1,759,809		$	14,087		$	78,182	$	4,399,119
Accumulated amortization		(458,425	)		(50,989	)		(567,867	)		(11,654	)		—		(1,088,935	)
Carrying Value at December 31, 2018	$	1,128,734		$	908,893		$	1,191,942		$	2,433		$	78,182	$	3,310,184

Schedule of future amortization expense of intangible assets

The following is the future amortization of intangible assets for the year ended December 31:

2019	$	564,987
2020		562,554
2021		562,554
2022		469,220
2023		418,232
Thereafter		732,637
	$	3,310,184

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

Accounts payable and accrued expenses consisted of the following as of December 31, 2018 and 2017:

	2018		2017
Trade payables	$	401,272	$	232,842
Accrued interest		401,667		275,000
Accrued payroll and related		260,153		468,012
Other		284,134		471,331
Total	$	1,347,226	$	1,447,185

NOTES PAYABLE, NET (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of notes payable

The following is a summary of notes payable as of December 31, 2018 and 2017:

	2018			2017

In January 2017, the Company issued a Senior Unsecured Note (“Note”) a face value of $3,000,000, payable two years from issuance, along with an aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The Company allocated the proceeds to the common stock based on their relative fair value and recorded a discount of $830,018 to be amortized into interest expense over the two-year term of the note. The Company also paid debt issuance costs consisting of a cash fee of $120,000 and 1,020,000 shares of common stock of the Company with a fair value of $306,000. On April 30, 2018, the Company and the Noteholder agreed to extend the due date of the note until April 30, 2020 for 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in the terms of this note payable has been determined to be a debt extinguishment in accordance with ASC 470. The reported amounts under the debt extinguishment are not significantly different than that of the Company's reported amounts.	$	2,000,000		$	3,000,000
Total Principal Outstanding		2,000,000			3,000,000
Unamortized Deferred Discounts		(106,886	)		(455,935	)
Unamortized Debt Issuance Costs		(39,466	)		(168,345	)
Notes Payable, net of current maturities	$	1,853,648		$	2,375,720

Schedule of notes payable and related discounts

The following is a roll-forward of the Company’s notes payable and related discounts for the years ended December 31, 2018 and 2017:

	Principal			Debt Issuance			Debt
	Balance			Costs			Discounts			Total
Balance at December 31, 2016	$	6,065,914		$	(243,055	)	$	(165,841	)	$	5,657,018
New issuances		3,000,000			(310,790	)		(841,727	)		1,847,483
Payments/conversions		(6,065,914	)		—			—			(6,065,914	)
Amortization		—			385,500			551,633			937,133
Balance at December 31, 2017		3,000,000			(168,345	)		(455,935	)		2,375,720
New issuances		—			—			—			—
Payments/Conversions		(1,000,000	)		—			—			(1,000,000	)
Amortization		—			128,879			349,049			477,928
Balance at December 31, 2018	$	2,000,000		$	(39,466	)	$	(106,886	)	$	1,853,648

Schedule of future maturities of notes payable

Future maturities of notes payable are as follows for the calendar years 2019 and 2020:


2019	$	—
2020		2,000,000
	$	2,000,000

DERIVATIVE LIABLITY (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative activity

A summary of derivative activity for the year ended December 31, 2017 is as follows:

Balance at January 1, 2017	$	18,056,631
Modification of derivatives		319,770
Cancellation of warrants previously accounted for as derivative liabilities and elimination of derivative conversion features resulting from conversion of related party debt to equity		(11,213,573	)
Change in fair value		452,146
Reclassification of derivatives to equity upon removal of price protection in warrants		(7,614,974	)
Balance at December 31, 2017	$	—

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2018

Stockholders' Equity:

Schedule of warrant activity

The following is a summary of the Company’s warrant activity for the years ended December 31, 2018 and 2017:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at January 1, 2017		51,138,697		$	0.11		2.8 Years
Granted		1,153,846		$	0.14		5.0 Years
Exercised/Cancelled		(4,128,000)		$	0.08
Outstanding at December 31, 2017		48,164,543		$	0.11		2.9 Years
Granted		2,470,267		$	0.14		5.0 Years
Exercised/Cancelled		(4,333,333	)	$	0.05		—
Outstanding at December 31, 2018		46,201,477		$	0.08		1.9 Years

Schedule of black - scholes option-pricing model valuation assumption

The Company determined the grant date fair value of the options granted during the years ended December 31, 2018 and 2017 using the Black Scholes Method and the following assumptions:

	2018	2017
Expected Volatility	79.0% to 93.0%	79.0% to 93.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	2.42% to 3.00%	1.16% to 1.49%
Dividend Rate	0.00%	0.00%

Schedule of outstanding stock options

Activity related to stock options for the years ended December 31, 2018 and 2017 is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value

Outstanding as of January 1, 2017		86,925,000		$	0.21		8.7	$	7,698,650
Granted		21,250,000		$	0.11		10.0	$	7,475,000
Forfeited		(4,966,669	)	$	0.08		—	$	—
Outstanding as of December 31, 2017		103,208,331		$	0.19		9.5	$	10,023,400
Granted		6,220,000		$	0.22		10.0	$	2,868,750
Exercised		(3,174,992	)	$	0.13		—	$	—
Outstanding as of December 31, 2018		106,253,339		$	0.20		8.3	$	11,457,291
Exercisable as of December 31, 2018		92,925,694		$	0.20		7.4	$	3,316,208

Schedule of stock option

The following table summarizes stock option information as of December 31, 2018:

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$	0.0001		3,500,000		6.8		3,500,000
$	0.05		32,783,339		7.6		28,314,583
$	0.1		27,200,000		7.8		24,977,778
$	0.12		970,000		9.8		—
$	0.13		250,000		8.8		83,333
$	0.15		2,800,000		6.9		2,800,000
$	0.22		2,750,000		9.0		750,000
$	0.25		2,500,000		8.9		500,000
$	0.26		500,000		9.3		—
$	0.29		1,000,000		8.3		—
$	0.4		1,000,000		7.2		1,000,000
$	0.45		31,000,000		6.9		31,000,000
					7.4
			106,253,339				92,925,694

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

DIRECT FINANCING LEASE (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Schedule of future minimum lease payments to be received

Future minimum lease payments to be received under the lease for the next five years and thereafter are as follows:

Year Ending December 31,
2019	$	122,148
2020		122,148
2021		122,148
2022		122,148
2023		122,148
Thereafter		285,012
		895,752
Less deferred revenue		(276,989	)
Net investment in lease	$	618,763

LEASE OBLIGATION PAYABLE (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Schedule of lease obligation payable

Future cash payment related to this capital lease are as follow for the calendar years ending from 2019-2022.

2019	$	43,096
2020		43,096
2021		43,096
2022		10,774
Total minimum lease payments		140,062

Less: Amount representing interest		(24,554	)

Present value of minimum lease payments	$	115,508

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of income taxes

The Company’s loss before income taxes from US and Foreign sources for the years ended December 31, 2018 and 2017, are as follows:

	2018			2017
United States	$	(8,775,452	)	$	(15,488,668	)
Outside United States		(1,221,919	)		(1,964,180	)
Loss before income taxes	$	(9,997,371	)	$	(17,452,848)

Schedule of reconciliation from the U.S. Federal statutory income rate

	2018			2017
US Federal Statutory Tax Rate		21.00	%		34.00	%
State taxes		4.35	%		3.63	%
Permanent items		—			(5.94	%)
Amortization of Discount - APIC		—			2.04	%
NOL True-Ups		(2.48	%)		(2.78	%)
Change in tax rates		—			(23.88	%)
Change in valuation allowance		(27.82	%)		(7.07	%)

		0.00	%		0.00	%

Schedule of components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2018 and 2017 are summarized as follows:

	2018			2017
Deferred Tax Assets
Net Operating Loss	$	5,981,004		$	4,305,729
Stock Options		5,890,565			5,276,885
Charitable Contributions		1,267			1,267
Basis Difference in Intangible Assets		99,296			39,125
Basis Difference Fixed Assets		5,096			—
Accrued Payroll		42,939			97,127
Valuation Allowance		(11,983,078	)		(9,559,975	)
Total Deferred Tax Asset		37,089			160,158

Debt Discounts		(27,086	)		(115,553	)
Debt Issuance Costs		(10,003	)		(42,667	)
Basis Difference Fixed Assets		—			(1,938	)
Total Deferred Tax Liability		(37,089	)		(160,158	)

Net Deferred Tax Asset	$	—		$	—

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The Company’s financial liabilities as of December 31 that are measured at fair value on a recurring basis were as follows:

2018	Level 1		Level 2		Level 3
Derivative instruments (included in current liabilities)		—		—		—
2017
Derivative instruments (included in current liabilities)		—		—	$	—

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments required under non convertible operating leases

The following is a schedule, by years, of the future minimum lease payments required under non-convertible operating leases as of December 31, 2018.

2019	$	217,000
2020		133,000
2021		96,000
2022		49,000
Total	$	495,000

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of geographic region

The Company has included in the schedule below an allocation of corporate overhead based on management’s estimate of resource requirements.

	Year Ended December 31,
	2018			2017
Net Revenues:
North America	$	1,941,866		$	518,023
South America		476,234			394,320
Africa		1,410,893			1,391,263
		3,828,993			2,303,606

Identity Management		3,352,759			1,909,286
Payment Processing		476,234			394,320
		3,828,993			2,303,606

Loss From Operations
North America		(1,959,125	)		(2,672,161	)
South America		(6,540,029	)		(8,300,967	)
Africa		(824,065	)		(1,035,987	)
		(9,323,219	)		(12,009,115	)

Identity Management		(2,783,190	)		(3,708,148	)
Payment Processing		(6,540,029	)		(8,300,967	)
		(9,323,219	)		(12,009,115	)

Gain (loss) on derivative liability		—			(4,106,652	)
Interest Expense		(757,801	)		(1,337,081	)
Other income/(expense)		83,649			0

Loss before income taxes		(9,997,371	)		(17,452,848	)

Income tax expense		(30,242	)		(28,781	)

Net loss	$	(10,027,613	)	$	(17,481,629	)

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of shares	152,454,816	151,372,874
Employee Stock Option [Member]
Number of shares	106,253,339	103,208,331
Warrant [Member]
Number of shares	46,201,477	48,164,543

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2018 USD ($) Kiosks	Dec. 31, 2017 USD ($) Kiosks
Cash, FDIC insured amount	$ 250,000
Cash, FDIC uninsured amount	4,200,000
Revenue	3,759,635	$ 2,228,910
Accumulated deficit	(76,435,235)	(66,407,622)
Loss from operations	(9,323,219)	(12,009,115)
Impairment of long lived assets	149,000	216,000
Inventory valuation allowance	707,000	353,000
Deferred revenue contract liability	236,000	$ 123,000
Revenue from new platform	5,000
Deferred commission	5,000
Deferred contract costs	15,000
Revenue remaining performance obligation, Amount	$ 15,000
Direct Financing Lease Arrangements [Member]
Number of kiosks \| Kiosks	78	78
Direct financing lease, imputed interest rate	0.107	0.107
12% Note Due January 2017 [Member]
Fair value of notes payable	$ 2,000,000
Carrying value	$ 1,853,648
Minimum [Member]
Property and equipment, estimated useful life	3 years
Maximum [Member]
Property and equipment, estimated useful life	5 years
COLOMBIA [Member]
Cash held by acquiry	$ 264,000
COLOMBIA [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	12.00%	17.00%
COLOMBIA [Member] \| Revenues [Member] \| Three Customers [Member]
Percentage of concentration risk		97.00%
COLOMBIA [Member] \| Revenues [Member] \| Four Customers [Member]
Percentage of concentration risk	89.00%
COLOMBIA [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	51.00%	16.00%
South Africa [Member]
Cash held by acquiry	$ 235,000
Revenue from operations	$ 1,400,000	$ 1,400,000
South Africa [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	37.00%	60.00%
South Africa [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	46.00%	84.00%
BRITISH [Member]
Cash held by acquiry	$ 24,000
United States [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	14.00%	22.00%
United States [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	3.00%
ZIMBABWE [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	37.00%
North America [Member]
Revenue from operations	$ 1,900,000	$ 500,000
South America [Member]
Revenue from operations	$ 500,000	$ 400,000

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 395,309	$ 336,218
Less Accumulated depreciation	191,309	126,499
Property and equipment, net	204,000	209,719
Property Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	238,442	179,351
Equipment Under Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 156,867	$ 156,867

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 64,810	$ 82,616

OTHER ASSETS (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Other Assets [Abstract]
Software and development	$ 1,566,177	$ 1,139,409
Other		104,122
Other assets	$ 1,566,177	$ 1,243,531

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	$ 2,878,080	$ 3,474,291
Additions	1,009,618	9,246
Write off of assets	(148,627)	(212,862)
Amortization	(428,887)	(392,595)
Carrying Value at end	$ 3,310,184	2,878,080
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 1,287,450	1,446,166
Additions
Write off of assets
Amortization	(158,716)	(158,716)
Carrying Value at end	$ 1,128,734	1,287,450
Acquired and Developed Software Member [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years
Carrying Value at beginning
Additions	959,882
Write off of assets
Amortization	(50,989)
Carrying Value at end	$ 908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 1,556,934	2,000,858
Additions
Write off of assets	(148,627)	(212,862)
Amortization	(216,365)	(231,062)
Carrying Value at end	$ 1,191,942	1,556,934
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 5,250	8,067
Additions
Write off of assets
Amortization	(2,817)	(2,817)
Carrying Value at end	2,433	5,250
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	28,446	19,200
Additions	49,736	9,246
Write off of assets
Amortization
Carrying Value at end	$ 78,182	$ 28,446

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 4,399,119	$ 3,776,253
Accumulated amortization	(1,088,935)	(898,173)
Carrying Value	3,310,184	2,878,080	$ 3,474,291
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,587,159	1,587,159
Accumulated amortization	(458,425)	(299,709)
Carrying Value	1,128,734	1,287,450	1,446,166
Acquired and Developed Software Member [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	959,882
Accumulated amortization	(50,989)
Carrying Value	908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,759,809	2,146,561
Accumulated amortization	(567,867)	(589,627)
Carrying Value	1,191,942	1,556,934	2,000,858
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	14,087	14,087
Accumulated amortization	(11,654)	(8,837)
Carrying Value	2,433	5,250	8,067
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	78,182	28,446
Accumulated amortization
Carrying Value	$ 78,182	$ 28,446	$ 19,200

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 2) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 564,987
2020	562,554
2021	562,554
2022	469,220
2023	418,232
Thereafter	732,637
Carrying Value	$ 3,310,184	$ 2,878,080	$ 3,474,291

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Trade payables	$ 401,272	$ 232,842
Accrued interest	401,667	275,000
Accrued payroll and related	260,153	468,012
Other	284,134	471,331
Total	$ 1,347,226	$ 1,447,185

NOTES PAYABLE, NET (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Jan. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Total Principal Outstanding	$ 2,000,000	$ 3,000,000
Unamortized Deferred Discounts	(106,886)	(455,935)		$ (165,841)
Unamortized Debt Issuance Costs	(39,466)	(168,345)		$ (243,055)
Notes Payable, net of current maturities	1,853,648	2,375,720
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Total Principal Outstanding	$ 2,000,000	$ 3,000,000
Unamortized Deferred Discounts			$ (830,018)

NOTES PAYABLE, NET (Details 1) - USD ($)	12 Months Ended
NOTES PAYABLE, NET (Details 1) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Principal Balance
Balance at beginning	$ 3,000,000	$ 6,065,914
New issuances		3,000,000
Payments/Conversions	(1,000,000)	(6,065,914)
Amortization
Balance at end	2,000,000	3,000,000
Debt Issuance Costs
Balance at beginning	(168,345)	(243,055)
New issuances		(310,790)
Payments/Conversions
Amortization	128,879	385,500
Balance at end	39,466	168,345
Debt Discounts
Balance at beginning	(455,935)	(165,841)
New issuances		(841,727)
Payments/Conversions
Amortization	349,049	551,633
Balance at end	(106,886)	(455,935)
Total
Balance at beginning	2,375,720	5,657,018
New issuances		1,847,483
Payments/Conversions	(1,000,000)	(6,065,914)
Amortization	477,928	937,133
Balance at end	$ 1,853,648	$ 2,375,720

NOTES PAYABLE, NET (Details 2)	Dec. 31, 2018 USD ($)
Debt Disclosure [Abstract]
2019
2020	2,000,000
Total future maturities of notes payable	$ 2,000,000

NOTES PAYABLE, NET (Details Narrative) - USD ($)				1 Months Ended	12 Months Ended
NOTES PAYABLE, NET (Details Narrative) - USD ($)	Aug. 09, 2018	Apr. 30, 2018	Feb. 22, 2017	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Debt discount					$ 106,886	$ 455,935	$ 165,841
Common stock issues value					8,951,929	9,000,290
Loss on modification of derivatives						(319,770)
Loss on modification of warrant						(158,327)
Loss on modification of debt						(5,978,643)
Gain on extinguishment of notes payable						$ 2,802,234
Conversion Agreements [Member]
Short-term Debt [Line Items]
Face amount			$ 300,000
Loss on modification of derivatives					300,000
Loss on modification of warrant					200,000
Loss on modification of debt					6,000,000
Debt accrued interest			$ 31,000
Number of cancellation shares			2,500,000
Value of cancellation shares			$ 300,000
Gain on settlement of debt			$ 2,800,000
Conversion Agreements [Member] \| Warrant [Member]
Short-term Debt [Line Items]
Number of cancellation shares			3,600,000
Conversion Agreements [Member] \| Several Accredited Investors (the "Investors") [Member]
Short-term Debt [Line Items]
Conversion price (in dollars per share)				$ 0.10
Exercise price (in dollars per share)				$ 0.10
Fair value of notes payable				$ 21,610,000
Value of shares issued on conversion				$ 6,331,000
Number of shares issued on conversion				84,822,006
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Face amount	$ 3,000,000			$ 3,000,000
Debt repayment	1,000,000
Debt discount				830,018
Debt issuance costs				306,000
Debt issuance costs consisting shares value				$ 120,000
Debt issuance costs consisting shares				1,020,000
Warrant term				2 years
Common stock issues value				$ 1,147,500	$ 420,000
Common stock issues shares				4,500,000	1,500,000
Common stock issued to the noteholder		$ 1,500,000
Interest Expenses	$ 158,000			$ 275,000	$ 284,000

DERIVATIVE LIABILITY (Details)	12 Months Ended
DERIVATIVE LIABILITY (Details)	Dec. 31, 2017 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Balance at beginning	$ 18,056,631
Modification of derivatives	319,770
Cancellation of warrants previously accounted for as derivative liabilities and elimination of derivative conversion features resulting from conversion of related party debt to equity	(11,213,573)
Change in fair value	452,146
Reclassification of derivatives to equity upon removal of price protection in warrants	(7,614,974)
Balance at ending

DERIVATIVE LIABILITY (Details Narrative) - Conversion Agreements [Member] - USD ($)	Feb. 22, 2017	Jan. 31, 2017
Debt accrued interest	$ 31,000
Number of cancellation shares	2,500,000
Number of cancellation shares, value	$ 300,000
Face amount	$ 300,000
Warrant [Member]
Number of cancellation shares	3,600,000
Several Accredited Investor [Member]
Share price		$ 0.10
Several Accredited Investor [Member] \| Minimum [Member]
Conversion price		$ 0.10

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)						1 Months Ended		12 Months Ended
	Aug. 09, 2018	Sep. 13, 2017	Sep. 01, 2017	Mar. 22, 2017	Jan. 31, 2017	Aug. 31, 2018	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Feb. 22, 2017
Number of shares issued for brokerage									594,000
Common stock issues value								$ 8,951,929	$ 9,000,290
Common Stock [Member]
Number of shares issued								64,072,001	58,463,770
Number of shares issued for brokerage								456,735	593,557
Common stock issues value								$ 6,407	$ 5,846
Network 1 Financial Securities, Inc. [Member]
Cash fee								$ 710,000	$ 710,000
Number of shares issued								38,461,500	38,461,500
Number of shares issued for brokerage								4,450,000	4,450,000
Commission rate								8.00%
Network 1 Financial Securities, Inc. [Member] \| Common Stock [Member]
Number of shares issued								2,200,000
Network 1 Financial Securities, Inc. [Member] \| Warrant [Member]
Number of shares issued								1,153,846	1,153,846
Warrant term								5 years	5 years
Stock issued price per share (in dollars per share)								$ 0.143	$ 0.143
Bridgeworks LLC [Member]
Lease expenses								$ 89,100	$ 71,950
Mr. Philip D. Beck [Member]
Consulting services									$ 34,964
Network 1 Financial Securities, Inc. [Member] \| Warrant [Member]
Number of shares issued								2,470,000
Warrant term								5 years
Common stock issues value								$ 659,000
Exercise price								$ 0.165
Granted								$ 314,000
Mr.Stern [Member] \| Common Stock [Member]
Number of shares issued						6,666,667
Mr. Selzer [Member] \| Common Stock [Member]
Number of shares issued						666,667
Conversion Agreements [Member]
Face amount											$ 300,000
Conversion Agreements [Member] \| Herbert Selzer [Member]
Total debt					$ 150,000		$ 150,000
Number of shares issued on conversion					1,753,500
Conversion Agreements [Member] \| Vista Associates [Member]
Total debt					$ 40,000		40,000
Number of shares issued on conversion					1,537,778
Subscription Agreements [Member] \| Herbert Selzer [Member]
Additional number of shares issued										500,000
Subscription Agreements [Member] \| Mr. Theodore Stern [Member]
Additional number of shares issued									2,000,000
Subscription Agreements [Member] \| Network 1 Financial Securities, Inc. [Member]
Cash fee				$ 240,000
Number of shares issued				1,000,000
Subscription Agreements [Member] \| Network 1 Financial Securities, Inc. [Member]
Cash fee						$ 629,000
Confidential Settlement Agreement and General Release [Member] \| Mr. Douglas Solomon [Member]
Professional fees		$ 8,048						160,000
Number of shares vested			20,000,000
Agency Agreement [Member] \| Mr. Douglas Solomon [Member]
Professional fees								$ 84,000	$ 54,000
Description of non-exclusive sales agency		A non-exclusive sales agent for the Company’s products on an as needed basis for a term of three years in consideration of sales commissions including a monthly non-refundable minimum commission to be paid for 24 months.						A non- exclusive sales agent for the Company’s products on an as needed basis for a term of three years in consideration of sales commissions.
Senior Unsecured Note [Member]
Face amount	$ 3,000,000				$ 3,000,000		$ 3,000,000
Number of shares issued							4,500,000	1,500,000
Loan interest expense	158,000						$ 275,000	$ 284,000
Warrant term							2 years
Common stock issues value							$ 1,147,500	$ 420,000
Debt repayment	$ 1,000,000
12% Promissory Notes Due in January 2017 [Member]
Face amount					$ 13,609		$ 13,609

STOCKHOLDERS' EQUITY (Details) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at beginning	48,164,543	51,138,697
Granted	2,470,267	1,153,846
Exercised/Cancelled	(4,333,333)	(4,128,000)
Outstanding at ending	46,201,477	48,164,543
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 0.11	$ 0.11
Granted	0.14	0.14
Exercised/Cancelled	0.05	0.08
Outstanding at ending	$ 0.08	$ 0.11
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Remaining Life [Roll Forward]
Outstanding at beginning	2 years 10 months 24 days	2 years 9 months 18 days
Granted	5 years	5 years
Outstanding at end	1 year 10 months 24 days	2 years 10 months 24 days

STOCKHOLDERS' EQUITY (Details 1)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 1)	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend Rate	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	79.00%	79.00%
Expected Term	2 years 6 months	2 years 6 months
Risk Free Rate	2.42%	1.16%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	93.00%	93.00%
Expected Term	5 years 10 months 24 days	5 years 10 months 24 days
Risk Free Rate	3.00%	1.49%

STOCKHOLDERS' EQUITY (Details 2) - USD ($)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 2) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Number of Shares [Roll Forward]
Outstanding at beginning	103,208,331	86,925,000
Granted	6,220,000	21,250,000
Forfeited		(4,966,669)
Exercised	(3,174,992)
Outstanding at end	106,253,339	103,208,331
Exercisable at end	92,925,694
Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 0.19	$ 0.21
Granted	0.22	0.11
Forfeited		0.08
Exercised	0.13
Outstanding at end	0.20	$ 0.19
Exercisable at end	$ 0.20
Weighted Average Contractual Term [Roll Forward]
Outstanding at beginning	9 years 6 months	8 years 8 months 12 days
Granted	10 years	10 years
Exercised
Outstanding at end	8 years 3 months 18 days	9 years 6 months
Exercisable at end	7 years 4 months 24 days
Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginning	$ 10,023,400	$ 7,698,650
Granted	2,868,750	7,475,000
Forfeited
Exercised
Outstanding at end	11,457,291	$ 10,023,400
Exercisable at end	$ 3,316,208

STOCKHOLDERS' EQUITY (Details 3)	12 Months Ended
STOCKHOLDERS' EQUITY (Details 3)	Dec. 31, 2018 shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	106,253,339
Weighted Average Contractual Life	7 years 4 months 24 days
Exercisable	92,925,694
Exercise Price $0.0001 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	3,500,000
Weighted Average Contractual Life	6 years 9 months 18 days
Exercisable	3,500,000
Exercise Price $0.05 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	32,783,339
Weighted Average Contractual Life	7 years 7 months 6 days
Exercisable	28,314,583
Exercise Price $0.1 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	27,200,000
Weighted Average Contractual Life	7 years 9 months 18 days
Exercisable	24,977,778
Exercise Price $0.12 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	970,000
Weighted Average Contractual Life	9 years 9 months 18 days
Exercisable
Exercise Price $0.13 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	250,000
Weighted Average Contractual Life	8 years 9 months 18 days
Exercisable	83,333
Exercise Price $0.15 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	2,800,000
Weighted Average Contractual Life	6 years 10 months 24 days
Exercisable	2,800,000
Exercise Price $0.22 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	2,750,000
Weighted Average Contractual Life	9 years
Exercisable	750,000
Exercise Price $0.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	2,500,000
Weighted Average Contractual Life	8 years 10 months 24 days
Exercisable	500,000
Exercise Price $0.26 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	500,000
Weighted Average Contractual Life	9 years 3 months 18 days
Exercisable
Exercise Price $0.29 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life	8 years 3 months 18 days
Exercisable
Exercise Price $0.40 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life	7 years 2 months 12 days
Exercisable	1,000,000
Exercise Price $0.45 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding	31,000,000
Weighted Average Contractual Life	6 years 10 months 24 days
Exercisable	31,000,000

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)					1 Months Ended	12 Months Ended
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Dec. 18, 2017	Mar. 22, 2017	Feb. 22, 2017	Jan. 31, 2017	Aug. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Sep. 28, 2017	Dec. 31, 2016
Common stock, authorized						1,000,000,000	1,000,000,000	500,000,000
Common stock, issued						478,950,996	403,311,988
Common stock, outstanding						478,950,996	403,311,988
Preferred stock, authorized						20,000,000
Fair value of shares issued						$ 8,951,929	$ 9,000,290
Number of shares issued for services							594,000
Number of shares issued for services, value						97,126	$ 140,151
Number of shares issued for acquisition, value
Common stock issued upon exercise of warrants							$ 26,400
Number of stock granted							15,000,000
MultiPay S.A.S [Member]
Cancellation of common stock						728,448
Subscription Agreements [Member]
Cancellation of common stock		2,500,000
Conversion Agreements [Member]
Cancellation of common stock			2,500,000
Value of cancellation shares			$ 300,000
Debt accrued interest			$ 31,000
Restricted Stock [Member]
Warrant term						3 years
Number of stock granted						2,750,000
Number of stock vested						2,000,000
Warrant [Member] \| Subscription Agreements [Member]
Number of shares issued					2,470,000
Shares issued price per share (in dollars per share)					$ 0.165
Warrant term					5 years
Fair value of shares issued					$ 314,000
Warrant [Member] \| Conversion Agreements [Member]
Cancellation of common stock			3,600,000
Common Stock [Member]
Common stock, outstanding						478,950,996	403,311,988		234,704,655
Number of shares issued						64,072,001	58,463,770
Fair value of shares issued						$ 6,407	$ 5,846
Number of shares issued for services						456,735	593,557
Number of shares issued for services, value						$ 46	$ 60
Number of shares issued for aquisition						(728,448)
Number of shares issued for acquisition, value						$ (73)
Common stock issued upon exercise of warrants							$ 53
Common stock issued upon exercise of warrants (in shares)							528,000
Network 1 Financial Securities, Inc. [Member] \| Subscription Agreements [Member]
Cash fee					$ 629,000
Network 1 Financial Securities, Inc. [Member] \| Warrant [Member]
Number of shares issued						2,470,000
Fair value of shares issued						$ 659,000
August 2018 Accredited Investors [Member] \| Subscription Agreements [Member]
Number of shares issued					64,072,000
Fair value of shares issued					$ 9,611,000
August 2018 Accredited Investors [Member] \| Warrant [Member]
Number of shares issued on conversion						3,500,000
Exercise price (in dollars per share)						$ 0.05	$ 0.05
Common stock issued upon exercise of warrants							$ 528,000
Common stock issued upon exercise of warrants (in shares)						4,433,333	26,400
Number of stock vested						3,200,000
August 2018 Accredited Investors [Member] \| Common Stock [Member]
Number of shares issued on conversion						1,600,000
Service Provider [Member]
Number of shares issued for services						456,735
Number of shares issued for services, value						$ 97,126
Accredited Investor [Member] \| Securities Purchase Agreement [Member] \| 10% Senior Unsecured Note Due January 2019 [Member]
Number of shares issued				4,500,000
Fair value of shares issued				$ 3,000,000
Network 1 Financial Securities, Inc. [Member]
Number of shares issued						38,461,500	38,461,500
Cash fee						$ 710,000	$ 710,000
Number of shares issued for services						4,450,000	4,450,000
Network 1 Financial Securities, Inc. [Member] \| Subscription Agreements [Member]
Number of shares issued		1,000,000
Cash fee		$ 240,000
Network 1 Financial Securities, Inc. [Member] \| Securities Purchase Agreement [Member]
Number of shares issued for services				1,200,000
Network 1 Financial Securities, Inc. [Member] \| Warrant [Member]
Number of shares issued						1,153,846	1,153,846
Shares issued price per share (in dollars per share)						$ 0.143	$ 0.143
Warrant term						5 years	5 years
Network 1 Financial Securities, Inc. [Member] \| Common Stock [Member]
Number of shares issued						2,200,000
Several Accredited Investor [Member] \| Conversion Agreements [Member]
Number of shares issued on conversion				84,822,000
Share price				$ 0.10
Several Accredited Investors (the "March 2017 Accredited Investors") [Member] \| Subscription Agreements [Member]
Number of shares issued		20,000,000
Fair value of shares issued		$ 4,000,000
December 2017 Accredited Investors [Member] \| Subscription Agreements [Member]
Number of shares issued	38,464,000
Fair value of shares issued	$ 5,000,000
Cash fee	$ 350,000
December 2017 Accredited Investors [Member] \| Warrant [Member] \| Subscription Agreements [Member]
Number of shares issued	1,153,846
Shares issued price per share (in dollars per share)	$ 0.143
Warrant term	5 years
Fair value of shares issued	$ 181,154
Two Executive Offers [Member] \| Restricted Stock [Member]
Number of stock granted							15,000,000
Non Employee Directors [Member] \| Restricted Stock [Member]
Number of stock granted						2,456,000

STOCKHOLDERS' EQUITY (Details Narrative 1) - USD ($)		12 Months Ended
STOCKHOLDERS' EQUITY (Details Narrative 1) - USD ($)	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		962,000
Number of options granted		6,220,000	21,250,000
Number of forfeited shares			4,966,669
Forfeited exercise price (in dollars per share)			$ 0.08
Number of options exercisable		92,925,694
Exercise price of option (in dollars per share)		$ 0.20
Stock based compensation		$ 2,429,959	$ 5,650,072
Mr. Philip D. Beck [Member] \| Restricted Stock Purchase Agreements [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	15,000,000
Number of per share price	$ 0.0001
Exercise price (in dollars per share)	$ 0.10
Vesting term	10 years
Mr. Stuart P. Stoller [Member] \| Restricted Stock Purchase Agreements [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	5,000,000
Number of per share price	$ 0.0001
Exercise price (in dollars per share)	$ 0.10
Vesting term	10 years
Two Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued	1,250,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs		$ 1,138,000
Non Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options exercisable		970,000
Exercise price of option (in dollars per share)		$ 0.12
Unrecognized compensation costs		$ 183,000
Employees and One Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted		231,000
Vesting term		3 years
Description Vesting period		The options have a term of ten years
Options fair value		$ 962,000
Employees and One Non Employee [Member] \| Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options exercisable		3,250,000
Exercise price of option (in dollars per share)		$ 0.22
Employees and One Non Employee [Member] \| Tranche Two[Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options exercisable		2,000,000
Exercise price of option (in dollars per share)		$ 0.25
2017 Incentive Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		70,000,000
2014 Equity Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		25,000,000

DIRECT FINANCING LEASE (Details)	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 122,148
2020	122,148
2021	122,148
2022	122,148
2023	122,148
Thereafter	285,012
Sub-total	895,752
Less deferred revenue	(276,989)
Net investment in lease	$ 618,763

DIRECT FINANCING LEASE (Details Narrative)	1 Months Ended	12 Months Ended
DIRECT FINANCING LEASE (Details Narrative)	Sep. 30, 2016 USD ($) Kiosks $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Lease monthly rental		$ 381,000	$ 360,000
Revenues		3,828,993	2,303,606
Equipment under capital lease		748,000
Aggregate minimum future lease payments		1,422,000
Unearned income		474,000
Cash Collection Services (the "Contract") [Member] \| Recaudo Bogota S.A.S. [Member]
Number of kiosks \| Kiosks	78
Lease contract term	10 years
Lease monthly rental	$ 11,900
Lease rent expense	142,272
Estimated executory costs	$ 1,677
Purchase price at the end of lease term (in dollars per unit) \| $ / shares	$ 40
Revenues		$ 69,400	$ 74,700

LEASE OBLIGATION PAYABLE (Details)	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 43,096
2020	43,096
2021	43,096
2022	10,774
Total minimum lease payments	140,062
Less: Amount representing interest	(24,554)
Present value of minimum lease payments	$ 115,508

LEASE OBLIGATION PAYABLE (Details Narrative)	12 Months Ended
LEASE OBLIGATION PAYABLE (Details Narrative)	Dec. 31, 2018 USD ($)
Leases [Abstract]
Amortization of lease equipment	$ 58,934
Lease obligation interest rate	12.00%
Lease obligation maturity date	Mar. 31, 2022

INCOME TAXES (Details) - USD ($)	12 Months Ended
INCOME TAXES (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Loss before income taxes	$ (9,997,371)	$ (17,452,848)
Domestic Tax Authority [Member]
Loss before income taxes	(8,775,452)	(15,488,668)
Outside United States [Member]
Loss before income taxes	$ (1,221,919)	$ (1,964,180)

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
US Federal Statutory Tax Rate	21.00%	34.00%
State taxes	4.35%	3.63%
Permanent items		(5.94%)
Amortization of Discount - APIC		2.04%
NOL True-Ups	(2.48%)	(2.78%)
Change in tax rates		(23.88%)
Change in valuation allowance	(27.82%)	(7.07%)
Total	0.00%	0.00%

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Deferred Tax Assets
Net operating loss	$ 5,981,004	$ 4,305,729
Stock Options	5,890,565	5,276,885
Charitable Contributions	1,267	1,267
Basis Difference in Intangible Assets	99,296	39,125
Basis Difference Fixed Assets	5,096
Accrued Payroll	42,939	97,127
Valuation Allowance	(11,983,078)	(9,559,975)
Total Deferred Tax Asset	37,089	160,158
Debt Discounts	(27,086)	(115,553)
Debt Issuance Costs	(10,003)	(42,667)
Basis Difference Fixed Assets		(1,938)
Total Deferred Tax Liability	(37,089)	(160,158)
Net Deferred Tax Asset

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2011
Valuation allowance	$ 11,983,078	$ 9,559,975
Revised federal income tax rate	21.00%
Corporate tax rate	35.00%
Minimum [Member]
Expiration Year	Dec. 31, 2020
Maximum [Member]
Expiration Year	Dec. 31, 2037
Domestic Tax Authority [Member]
Operating loss carryforwards			$ 19,900,000
State and Local Jurisdiction [Member]
Operating loss carryforwards			$ 19,900,000

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2018 USD ($)
Operating Leases Year Ending December 31:
2019	$ 217,000
2020	133,000
2021	96,000
2022	49,000
Total	$ 495,000

COMMITMENTS AND CONTINGENCIES (Details Narrative)	1 Months Ended		12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Narrative)	Oct. 31, 2018 USD ($)	Apr. 30, 2017 USD ($)	Dec. 31, 2018 USD ($) ft²	Dec. 31, 2017 USD ($)
Rent expense			$ 381,000	$ 360,000
Software Company [Member] \| Software License [Member]
Initial payment of license			120,000
First installment			80,000
Second installment			40,000
Identity Consulting Organization [Member]
Rent expense			15,000
New Office Facilities [Member] \| Plantation [Member]
Monthly rental payments			$ 2,700
Operating Lease term			The lease extends to August 2020.
Area of land for rent \| ft²			2,100
New Office Facilities [Member] \| Long Beach, New York [Member]
Additional monthly rental payments			$ 7,425
Agreement term			30 days
New Office Facilities [Member] \| Alpharetta Ga [Member]
Monthly rental payments	$ 3,800
New Office Facilities [Member] \| COLOMBIA [Member] \| MultiPay S.A.S [Member]
Monthly rental payments		$ 9,000
Agreement term		2 years
New Office Facilities [Member] \| South Africa [Member]
Monthly rental payments			$ 8,000
Apartment [Member] \| COLOMBIA [Member]
Monthly rental payments		$ 1,700

SEGMENT INFORMATION (Details) - USD ($)	12 Months Ended
SEGMENT INFORMATION (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Net Revenues:	$ 3,828,993	$ 2,303,606
Loss from Operations	(9,323,219)	(12,009,115)
Gain (loss) on derivative liability		(452,146)
Interest Expense	(757,801)	(1,337,081)
Other income/(expense)	83,649	0
Loss before income taxes	(9,997,371)	(17,452,848)
Income tax expense	(30,242)	(28,781)
Net loss	(10,027,613)	(17,481,629)
Identity Management [Member]
Net Revenues:	3,352,759	1,909,286
Loss from Operations	(2,783,190)	(3,708,148)
Payment Processing [Member]
Net Revenues:	476,234	394,320
Loss from Operations	(6,540,029)	(8,300,967)
North America [Member]
Net Revenues:	1,941,866	518,023
Loss from Operations	(1,959,125)	(2,672,161)
South America [Member]
Net Revenues:	476,234	394,320
Loss from Operations	(6,540,029)	(8,300,967)
Africa [Member]
Net Revenues:	1,410,893	1,391,263
Loss from Operations	$ (824,065)	$ (1,035,987)

SEGMENT INFORMATION (Details Narrative)	12 Months Ended
SEGMENT INFORMATION (Details Narrative)	Dec. 31, 2018 USD ($) Segment	Dec. 31, 2017 USD ($)
Number of reportable segments \| Segment	2
Goodwill	$ 6,736,043	$ 6,736,043
North America [Member]
Gross long lived assets	7,400,000
Goodwill	4,900,000
South America [Member]
Gross long lived assets	800,000
Goodwill	200,000
Africa [Member]
Gross long lived assets	2,100,000
Goodwill	$ 1,600,000