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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Feb. 28, 2020	Jun. 28, 2019
Document And Entity Information
Entity Registrant Name	Ipsidy Inc.
Entity Central Index Key	0001534154
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filers	No
Entity File Number	000-54545
Entity Incorporation, State or Country Code	DE
Entity Reporting Status Current	Yes
Entity Interactive Data Current	No
Entity Small Business	true
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float			$ 43,906,808
Entity Common Stock, Shares Outstanding		518,125,454
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 567,081	$ 4,972,331
Accounts receivable, net	125,859	130,875
Current portion of net investment in direct financing lease	65,333	58,727
Inventory, net	173,575	133,541
Other current assets	753,505	471,834
Total current assets	1,685,353	5,767,308
Property and equipment, net	161,820	204,000
Other Assets	383,066	1,566,177
Intangible Assets, net	5,593,612	3,310,184
Goodwill	5,218,861	6,736,043
Net investment in direct financing lease, net of current portion	494,703	560,036
Total assets	13,537,415	18,143,748
Current Liabilities:
Accounts payable and accrued expenses	2,215,912	1,302,226
Notes payable, current portion	5,341
Capital lease obligation, current portion	34,816	30,898
Deferred revenue	425,276	236,270
Total current liabilities	2,681,345	1,569,394
Long-term liabilities:
Notes payable, net	1,970,937	1,853,648
Convertible debt	428,000
Capital lease obligation, net of current portion	49,794	84,610
Other liabilities	131,568	45,000
Total liabilities	5,261,644	3,552,652
Commitments and Contingencies
Stockholders' Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 518,125,454 and 478,950,996 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively	51,812	47,895
Additional paid in capital	94,982,167	90,770,682
Accumulated deficit	(86,935,593)	(76,435,235)
Accumulated comprehensive income	177,385	207,754
Total stockholders' equity	8,275,771	14,591,096
Total liabilities and stockholders' equity	$ 13,537,415	$ 18,143,748

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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	518,125,454	478,950,996

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Products and services	$ 2,488,624	$ 3,759,635
Lease income	63,421	69,358
Total revenues, net	2,552,045	3,828,993
Operating Expenses:
Cost of Sales	669,523	1,256,853
General and administrative	7,892,046	10,358,186
Research and development	1,614,054	894,849
Impairment loss	1,671,804	148,627
Depreciation and amortization	790,367	493,697
Total operating expenses	12,637,794	13,152,212
Loss from operations	(10,085,749)	(9,323,219)
Other Income (Expense):
Other Income:	23,920	83,649
Interest expense, net	(375,598)	(757,801)
Other expense, net	(351,678)	(674,152)
Income loss before income taxes	(10,437,427)	(9,997,371)
Income Taxes	(62,931)	(30,242)
Net loss	$ (10,500,358)	$ (10,027,613)
Net Loss Per Share - Basic and Diluted	$ (0.02)	$ (0.02)
Weighted Average Shares Outstanding - Basic and Diluted	498,747,396	429,852,594

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Other Comprehensive Income [Abstract]
Net Loss	$ (10,500,358)	$ (10,027,613)
Foreign currency translation loss	(30,369)	(47,907)
Comprehensive loss	$ (10,530,727)	$ (10,075,520)

- 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	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balance, beginning at Dec. 31, 2017	$ 40,331	$ 79,053,339	$ (66,407,622)	$ 254,851	$ 12,940,899
Balance, beginning (in shares) at Dec. 31, 2017	403,311,988
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
Issuance of common stock for cash	$ 3,876	2,924,436			2,928,312
Issuance of common stock for cash (in shares)	38,763,750
Common stock issued for services	$ 41	41,030			41,071
Common stock issued for services (in shares)	410,708
Stock-based compensation		1,246,019			1,246,019
Net loss			(10,500,358)		(10,500,358)
Foreign currency translation				(30,369)	(30,369)
Balance, ending at Dec. 31, 2019	$ 51,812	$ 94,982,167	$ (86,935,593)	$ 177,385	$ 8,275,771
Balance, ending (in shares) at Dec. 31, 2019	518,125,454

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,500,358)	$ (10,027,613)
Adjustments to reconcile net loss with cash used in operations:
Depreciation and amortization expense	790,367	493,697
Stock-based compensation	1,246,019	2,429,959
Stock issued for services	41,071	343,019
Inventory reserve		348,302
Amortization of debt discount and debt issuance costs, net	109,764	477,928
Impairment loss	1,671,804	148,627
Changes in operating assets and liabilities:
Accounts receivable	(5,770)	20,762
Net investment in direct financing lease	58,727	52,790
Other current assets	(18,834)	(265,624)
Inventory	(50,647)	(1,519)
Accounts payable and accrued expenses	413,773	(84,512)
Deferred revenue	189,006	113,759
Net cash flows from operating activities	(6,055,078)	(5,950,425)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(27,364)	(59,091)
Investment in other assets including work in process	(1,604,152)	(1,319,932)
Net cash flows from investing activities	(1,631,516)	(1,379,023)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible note payable	408,000
Proceeds from the sale of common stock, net	2,928,312	9,610,793
Payment of debt and equity issuance costs		(658,864)
Principal payments on capital lease obligations	(31,188)	(27,421)
Principal payments on notes payable		(1,000,000)
Net cash flows from financing activities	3,305,124	7,924,508
Effect of foreign currencies exchange on cash	(23,780)	(36,551)
Net change in Cash	(4,405,250)	558,509
Cash, Beginning of Period	4,972,331	4,413,822
Cash, End of Period	567,081	4,972,331
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	10,771	173,426
Cash paid for income taxes	62,931	17,304
Non-cash Investing and Financing Activities:
Purchase of vehicle with note payable	16,510
Recognition of right to use asset and obligation	514,473
Reclassification of software development costs included in other assets to intangible assets	$ 3,111,668	$ 679,882

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AMD 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 an Identity as a Service (IDaaS) platform that delivers a suite of secure, mobile, biometric identity solutions. The Company provides its biometric identification services to government and private sector organizations and businesses, seeking to authenticate and manage identities for a variety of security purposes, including issuing identity cards, exercise of rights such as voting in elections and controlling access to digital and physical environments. The Company's platform supporting 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, 2019, the Company had an accumulated deficit of approximately $86.9 million. For the year ended December 31, 2019, the Company earned revenue of approximately $2.6 million and incurred a loss from operations of approximately $10.1 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., Ipsidy Perú S.A.C., 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, 2019 and December 31, 2018, 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, 2019 and 2018, 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, 2019 and 2018 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, 2019 and 2018, the Company recorded an inventory valuation allowance of approximately $236,000 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, 2019, the Company did not hold any funds in the United States that are not insured by the FDIC. For the Company's foreign subsidiaries, no amounts are insured. At December 31, 2019, the Company held approximately $94,000, $279,000, and $2,000 in cash maintained in Colombian, African, and British Banks, respectively.

2019 Revenues and accounts receivable: For the year ended December 31, 2019, 25% 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, 2019, 57%, 5% and 18% 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, 2019, accounts receivable related to Cards Plus (Africa), amounted to 70% of the accounts receivable, Colombia operations represented 26% of the accounts receivable operations and the balance of 4% was from US operations, 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% of the accounts receivable, Colombia operations represented 51% of the accounts receivable and the balance of 3% was from US 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.

In February 2016, the FASB issued Accounting Standards Update ("ASU") ASU No. 2016-02 ("Topic 842"). Topic 842 amends several 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.

The Company, effective January 1, 2019 has adopted the provisions of Topic 842. The Company decided to use the practical expedients available upon adoption of Topic 842 to aid the transition from former accounting to provisions of Topic 842. The package of expedients will effectively allow Ipsidy to run off existing leases, as initially classified as operating or financing, and classify new leases after implementation under the new standard as the business evolves.

The practical expedients elected by the Company in transition permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs. Furthermore, we have elected the short-term lease recognition exemption for leases with a term of 12 or less months which are not reasonably certain of exercising any available renewal options that would extend past 12 months. Additionally, we will continue to account for the executory costs of the direct financing lease as previously concluded and the initial direct costs were not considered significant.

The Company has operating leases principally for offices and some of the leases have renewal options. Management evaluates each lease independently to determine the purpose, necessity to its future operations in addition to other appropriate facts and circumstances.

We adopted Topic 842 using a modified retrospective approach for all existing leases at January 1, 2019. The adoption of Topic 842 impacted our balance sheet by the recognition of the operating lease right-of-use assets and the liability for operating leases. The accounting for finance leases (capital leases) was substantially unchanged. Accordingly, upon adoption, leases that were classified as operating leases under the previous guidance were classified as operating leases under Topic 842. The lease liability is based on the present value of the remaining lease payments, discounted using a market based incremental borrowing rate as the effective date of January 1, 2019 using current estimates as to lease term including estimated renewals for each operating lease. As of January 1, 2019, the Company recorded an adjustment of approximately $514,000 to operating lease right-of-use assets ("ROU") and the related lease liability. See Note 12 for further information with respect to leases.

See Notes 8, 11, 12 and 13 to Condensed Consolidated Financial Statements for additional information.

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, 2019 and 2018, the balance sheet "Other assets" are under further development and have not been placed in service. During the years ended December 31, 2019 and December 31, 2018, approximately $3.1 million and $0.7 million of software developed were placed into 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 impairment for the year ended 2018. During the year ended December 31, 2019, the Company updated their projections associated with their reporting units and it indicated that the carrying value may not be recovered as revenue assumptions were not met. The fair value of the reporting unit was determined using discounted cash flow as well as future realizable value. The goodwill impairment loss for the year ended December 31, 2019 was approximately $1,517,000 across the three reporting units.

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.

The Company adopted as of January 1, 2019 the requirements of ASU 2018-07 which simplified the accounting for share-based payments granted to non-employees for share based payments granted to non-employees for goods and services. Under the ASU, most of the guidance on such payments to non-employees were aligned with the share-based payments granted to employees. The Company determined on the date of adoption that the impact was not significant.

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 year ended December 31, 2019, the Company wrote-off intangible assets related to developed software of approximately $155,000 as the assets were no longer being utilized for commercial purposes and recorded a goodwill impairment loss of approximately $1,517,000 for reporting units where the carrying amount is in excess of its recoverable amount. The total of these charges is approximately $1,672,000. During the year ended December 31, 2018, the Company wrote-off net assets of approximately $149,000 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.

The Company reclassified research and development costs of approximately $687,000 for the year ended December 31, 2018 to conform with the current presentation in the financial statements.

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, 2019 and 2018 because their effect was antidilutive:

	2019		2018
Stock Options		109,400,006		106,253,339
Warrants		47,453,227		46,201,477
Total		156,853,233		152,454,816

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 loss in the accompanying consolidated statements of comprehensive 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 approximately $2,013,000, which differs from the carrying value or reported amounts of approximately $1,976,000 at December 31, 2019 because of the debt discounts as discussed in Note 6. The convertible notes payable of $428,000 at December 31, 2019 reflects fair value.

Revenue Recognition

Cards Plus – The Company recognizes revenue for the design and production of cards over time when products are produced or services have been performed due to the short term nature of the contracts. Additionally, the cards produced by the Company have no alternative use and the Company has an enforceable right to payment for work performed should the contract be cancelled. Cards Plus had $288,000 of deferred revenue from payments received in advance that will be earned in future periods.

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 $137,000 and $236,000 as of December 31, 2019 and 2018 for certain revenue that will be earned in future periods. The $236,000 of deferred revenue contract liability as of December 31, 2018 was earned in the year ended December 31, 2019. The deferred revenue relates to the service period of support services for two customers. As of December 31, 2019 majority of the deferred revenue contract liability will be recognized in the quarter March 31, 2020. 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, 2019, the Company had revenues from operations in North America, South America and Africa of $0.6 million, $0.5 million and $1.5 million respectively compared to $1.9 million, $0.5 million, $1.4 million respectively in the year ended December 31, 2018.

In 2018, the Company introduced its new IDaaS 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 years ended December 31, 2019 and 2018, the Company recorded revenues of approximately $13,000 and $5,000 from the new platform.

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 is defined as a promise to provide a "distinct" good or service to a customer. The Company has determined that one possible treatment under U.S. GAAP 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 should 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:

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

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.

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, 2019, the Company had approximately $5,000 of accounts payable and accrued expenses related to the delivery of biometric identity system and services. The $5,000 was paid in February 2020.

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.

As of December 31, 2019, there was a deferred commission of approximately $5,000 related to future delivery of an identity solutions system and services.

Recently Issued Accounting Pronouncements Not Yet Adopted

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 does not believe ASU 2017-04 will have a material impact on the consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, 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 statement of operations 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, 2023. The Company is currently in the process of evaluating the impact of adoption of this ASU on the financial statements.

See Notes 6 and 7 for additional information on indebtedness outstanding as of December 31, 2019.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	2019		2018

Property and equipment	$	282,316	$	238,442
Equipment under capital lease (see Note 11)		156,867		156,867
		439,183		395,309
Less Accumulated depreciation		277,363		191,309
Property and equipment, net	$	161,820	$	204,000

Depreciation expense totaled $86,054 and $64,810 for the years ended December 31, 2019 and 2018, respectively.

OTHER ASSETS

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	2019		2018
Software and development	$	128,005	$	1,566,177
Operating Lease ROU Assets		171,141		—
Other		83,920		—
	$	383,066	$	1.566,177

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	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, 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
Additions		—			3,111,668			—			—			30,695		3,142,363
Impairment loss		—			—			(154,622	)		—			—		(154,622	)
Amortization		(158,715	)		(368,637	)		(174,528	)		(2,433	)		—		(704,313	)
Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	-		$	108,877	$	5,593,612

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 a summary of intangible assets as of December 31, 2019:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	4,071,550		$	1,498,363		$	14,087		$	108,877	$	7,280,036
Accumulated amortization		(617,140	)		(419,626	)		(635,571	)		(14,087	)		—		(1,686,424	)
Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	—		$	108,877	$	5,593,612

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

2020	$	1,158,743
2021		1,158,743
2022		1,119,319
2023		1,014,421
2024		790,106
Thereafter		352,280
	$	5,593,612

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	2019		2018
Trade payables	$	621,292	$	401,272
Accrued interest		641,834		401,667
Accrued payroll and related expenses		386,165		260,153
Current portion of operating lease liabilities		242,650		—
Other		323,971		239,134
Total	$	2,215,912	$	1,302,226

NOTES PAYABLE, NET

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

NOTES PAYABLE, NET

NOTE 6 - NOTES PAYABLE, NET

The following is a summary of notes payable as of December 31, 2019 and 2018:

	December 31, 2019			December 31, 2018

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 note payable and 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 an extension fee of 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in terms of the 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. See below.	$	2,000,000		$	2,000,000
Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months		12,866			—
Total Principal Outstanding	$	2,012,866		$	2,000,000
Unamortized Deferred Debt Discount		(26,722	)		(106,886	)
Unamortized Deferred Debt Issuance Costs		(9,866	)		(39,466	)
Notes Payable, Net	$	1,976,278		$	1,853,648
Notes Payable, current portion, net of discount, issuance costs and current portion	$	1,970,937		$	—
Notes Payable, Net of discounts and current portion		5,341			1,853,648
	$	1,976,278		$	1,853,648

The Note was amended and restated in February 2020. See Note 16 "Subsequent Events".

The following is a roll-forward of the Company's notes payable and related discounts for the years ended December 31, 2019 and 2018:

	Principal			Debt Issuance			Debt
	Balance			Costs			Discounts			Total
Balance at January 1, 2018	$	3,000,000		$	(168,345	)	$	(455,935	)	$	2,375,720
New issuances		—			—			—			—
Payments		(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
New issuances		16,510			—			—			16,510
Payments		(3,644	)		—			—			(3,644	)
Amortization		—			29,600			80,164			109,764
Balance at December 31, 2019	$	2,012,866		$	(9,866	)	$	(26,722	)	$	1,976,278

Future maturities of notes payable are as follows for the calendar years 2020, 2021, and 2022:

2020	$	5,340
2021		2,005,947
2022		1,579
	$	2,012,866

CONVERTIBLE NOTES PAYABLE

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 7 – CONVERTIBLE NOTES PAYABLE

On December 13, 2019, the Company, entered into Securities Purchase Agreements with several accredited investors (the "8% Note Investors") providing for the sale by the Company to the Investors of 8% Convertible Notes in the aggregate amount of $428,000 (the "8% Notes"). The 8% Notes mature on November 30, 2021 and are a general unsecured obligation of the Company. The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay interest on the 8% Notes at the rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder's option, shares of common stock of the Company. At the option of the 8% Note Investors, all or a portion of the 8% Notes may be converted into shares of common stock of the Company at $0.08 per share. If the holders of the 8% Notes owning outstanding 8% Notes representing in excess of half of the aggregate outstanding principal amount of all 8% Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and other amounts owing to each of the holders shall be automatically converted.

The 8% Notes were amended in February 2020 became a secured obligation of the Company and now mature in 2022. See Note 16 "Subsequent Events"

OTHER LIABILITIES

12 Months Ended

Dec. 31, 2019

Other Liabilities [Abstract]

OTHER LIABILITIES

NOTE 8 – OTHER LIABILITIES

Other liabilities consist of the following as of December 31, 2019 and 2018:

	2019		2018

Operating lease liabilities, long term	$	131,568	$	—
Other		—		45,000
	$	131,568	$	45,000

The Company reclassified $45,000 from accounts payable and accrued expenses in 2018 to other liabilities.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

2019 Transactions

Notes Payable

During the year ended December 31, 2019, the Company recorded approximately $240,000 of interest expense under the terms and conditions of the Stern Note (see Note 6) that is due to the Theodore Stern Revocable Trust, whose trustee Mr. Stern is a member of the Company's Board of Directors.

Convertible Notes Payable

In December 2019, the Chairman of the Board of Directors invested $25,000 in the 8% Notes offering. See Note 7.

Purchase of Common Stock

In June 2019, two of the Company's Directors and one Officer purchased 1,562,500 shares of common stock of the 2019 offering as described in Note 9.

Other

In connection with the 2019 offering of common stock, the Company incurred fees to Network 1 Financial Securities Inc. ("Network 1"), a registered broker dealer, one of the Company's financial advisors. The Network 1 fees were approximately $109,000 paid in cash and 858,000 common stock purchase warrants with a fair value of approximately $54,000 that are exercisable during a term of five years at a price of $0.088 cents per share. A member of the Company's Board of Director's maintains a partnership with a key principal of Network 1.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $7,425 (reduced to $5,000 per month as of January 1, 2020). The agreement is month to month and can be terminated on 30 days' notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our CEO, and his family.

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, 2019, 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 10.

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, 2019. 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, 2019, the Company paid Mr. Solomon a sales commission of approximately $84,000.

2020 Transactions

See Note 1 "Subsequent Events" for detailed disclosure of the participation of three directors in the 2020 Notes Offering and related transactions.

STOCKHOLDER'S EQUITY

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 10 – 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 518,125,454 and 478,950,996 shares issued and outstanding as of December 31, 2019 and 2018, respectively. In addition, the Company is authorized to issue 20,000,000 shares of preferred stock.

Common Stock

2019 Common Stock Transactions

●

In June 2019, the Company entered into Subscription Agreements with accredited investors (the "2019 Accredited Investors") pursuant to which the 2019 Accredited Investors purchased an aggregate of approximately 38,764,000 shares of the Company's common stock for an aggregate purchase price of approximately $3,100,000. In connection with the private offering, the Company paid a cash fee of approximately $173,000 and issued 1,251,750 common stock purchase warrants with a fair value of approximately $79,000 that are exercisable during a term of five years at an exercise price of $0.088 per share.

●

The Company also issued approximately 411,000 shares of common stock to two service providers in satisfaction of $41,000 due for services.

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.

The criteria for the 2019 and 2018 performance based restricted stock have not been met as of December 31, 2019

Warrants

●

During the year ended December 31, 2019, the Company issued 1,251,750 common stock warrants to its investment bankers in connection with the June 2019 private common stock offering at an exercise price of $0.088 cents for a period of five years.

●

During the year ended December 31, 2018, the Company issued 2,470,267 common stock warrants to its investment banker in connection with the August 2018 private common stock offering at an exercise price of $0.14 cents for a period of five years.

●

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.

The following is a summary of the Company's warrant activity for the years ended December 31, 2019 and 2018:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at January 1, 2017		48,164,543		$	0.11	2.8 Years
Granted		2,470,267		$	0.14	5.0 Years
Exercised/Cancelled		(4,433,333	)	$	0.05
Outstanding at December 31, 2018		46,201,477		$	0.11	2.9 Years
Granted		1,251,750		$	0.09	5.0 Years
Exercised/Cancelled		-		$		—
Outstanding at December 31, 2019		47,453,227		$	0.09	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, 2019.

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.

2019 Stock Option Issuances

●

During the year ended December 31, 2019, the Company granted options to acquire 3,600,000 shares of common stock to one member of the Board of Directors and three employees at fair market value on date of grant. Of the 3,600,000 stock options, 3,475,000 options vest over a three-year period and 125,000 options vest upon achieving certain performance thresholds. The options have a term of ten years and the approximate fair value of the options as of the grant date was $150,000.

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.

The Company determined the grant date fair value of the options granted during the years ended December 31, 2019 and 2018 using the Black Scholes Method and the following assumptions:

	2019	2018
Expected Volatility	75% to 80%	79.0% to 93.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	1.73% – 2.49%	2.42% – 3.00%
Dividend Rate	0.00%	0.00%

Activity related to stock options for the years ended December 31, 2019 and 2018 is summarized as follows:

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

Outstanding as of January 1, 2018		103,208,331		$	0.19		9.5	$	10,023,400
Granted		6,220,000		$	0.22		10.0	$	2,868.750
Exercised/Forfeited		(3,174,992	)	$	0.08		—	$	—
Outstanding as of December 31, 2018		106,253,339		$	0.19		9.5	$	11,457,291
Granted		3,600,000		$	0.07		10.0	$	—
Forfeited		(453,333	)	$	0.13		—	$	—
Outstanding as of December 31, 2019		109,400,006		$	0.20		6.5	$	280,000
Exercisable as of December 31, 2019		101,144,450		$	0.19		7.4	$	280,000

The following table summarizes stock option information as of December 31, 2019:

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$	0.0001		3,500,000		5.8		3,500,000
$	0.05		35,700,006		6.9		31,950,006
$	0.10		27,200,000		6.8		27,061,110
$	0.12		1,200,000		9.0		—
$	0.13		250,000		7.8		166,667
$	0.15		2,800,000		5.9		2,800,000
$	0.22		2,750,000		8.0		1,500,000
$	0.25		2,500,000		7.9		1,166,667
$	0.26		500,000		8.3		333.333
$	0.29		1,000,000		7.3		666,667
$	0.4		1,000,000		6.2		1,000,000
$	0.45		31,000,000		5.9		31,000,000
					6.5
			109,400,006				101,144,450

As of December 31, 2019, there was approximately $446,000 and $27,000 of unrecognized compensation costs related to employee stock options and non-employee stock options, respectively, outstanding which will be recognized in 2020 through 2022. The company will recognize forfeitures as they occur. Stock compensation expense for the years ended December 31, 2019 and 2018 was approximately $1,246,000 and $2,430,000, respectively.

The criteria for certain performance based stock options have not been achieved as of December 31, 2019.

DIRECT FINANCING LEASE

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

DIRECT FINANCING LEASE

NOTE 11 – 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, 2019 and 2018 of approximately $63,400 and $69,400, 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,
2020	$	122,148
2021		122,148
2022		122,148
2023		122,148
2024		122,148
Thereafter		162,864
		773,604
Less deferred revenue		(213,568	)
Net investment in lease	$	560,036

LEASE OBLIGATION PAYABLE

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASE OBLIGATION PAYABLE

NOTE 12 – 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, 2019 is $91,079. 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, 2019. 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 2020-2022.

2020	$	43,096
2021		43,096
2022		10,774
Total minimum lease payments		96,966

Less: Amount representing interest		(12,356	)

Present value of minimum lease payments	$	84,610

INCOME TAXES

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 13 – 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, 2019 and 2018.

The Company's loss before income taxes from US and Foreign sources for the years ended December 31, 2019 and 2018, are as follows:

	2019			2018
United States	$	(8,548,570	)	$	(8,775,452	)
Outside United States		(1,888,857	)		(1,221,919	)
Loss before income taxes	$	(10,437,427	)	$	(9,997,371	)

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, 2019 and 2018:

	2019			2018
US Federal Statutory Tax Rate		21.00	%		21.00	%
State taxes		4.35	%		4.35	%
NOL True-Ups		5.27	%		2.47	%

Change in valuation allowance		(30.62	%)		(27.82	%)

		0.00	%		0.00	%

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2019 and 2018 are summarized as follows:

	2019			2018
Deferred Tax Assets
Net Operating Loss	$	7,681,718		$	5,981,004
Stock Options		6,632,746			5,890,565
Charitable Contributions		1,267			1,267
Basis Difference in Intangible Assets		7,405			99,296
Basis Difference Fixed Assets		—			5,096
Accrued Payroll		51,907			42,939
Valuation Allowance		(14,365,195	)		(11,938,078	)
Total Deferred Tax Asset		9,848			37,089

Debt Discounts		(6,769	)		(27,086	)
Debt Issuance Costs		(2,501	)		(10,003	)
Basis Difference Fixed Assets		(578	)		—
Total Deferred Tax Liability		(9,848	)		(37,089	)

Net Deferred Tax Asset	$	—		$	—

As of December 31, 2019, the Company has available federal net operating loss carry forward of $25.9 million and state net operating loss carry forwards of $25.9 million. Operating loss carryforwards of approximately $25.9 million expire through 2039. 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, 2019, the Company had a valuation allowance of approximately $14.4 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 information presented.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 14 – 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, 2019, the Company had employment agreements with four 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. Additionally, the employment 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).

Leases

The lease related balances included in the Condensed Consolidated Balance Sheet as of December 31, 2019 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	254,919

Operating lease ROU assets – included in Other Assets		171,141

Total operating lease assets	$	426,060

Liabilities:


Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	242,650

Long-term portion of ROU liabilities – included in Other liabilities		131,568

Total operating lease liabilities	$	374,218

The weighted average lease term remining is 1.2 years and weighted average discount rate is 13.55%.

The following table presents the maturity of the Company's operating lease liabilities as of December 31, 2019:

2020	$	277,961
2021		96,606
2022		49,716
Total operating lease payments		424,283
Less: Imputed interest		(50,065	)
Total operating lease liabilities	$	374,218

The Company leases approximately 2,100 square feet of office space in Plantation, Florida. Monthly rental is approximately $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 term is through August 2020.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $7,425. The agreement is month to month and can be terminated on 30 days' notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our CEO and his family.

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

The Company leases an office location in Bogota, Colombia. In April 2017, MultiPay S.A.S. entered an office lease beginning April 22, 2017 for two years. The new lease cost is approximately $8,500 per month with an inflation adjustment after one year. The lease was extended for one additional year through April 22, 2021 and extends annually unless written notice to the contrary is provided at least six months in advance. Furthermore, the Company leases an apartment at approximately $2,000 a month for one of the management team through April 2020.

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, 2019 and 2018 was approximately $439,000 and $381,000 respectively.

The following is a schedule, by years, of the future minimum lease payments required under non-convertible operating leases as of December 31, 2019.

2020	$	276,000
2021		97,000
2022		50,000
Total	$	423,000

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 $160,000 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. The Company is in discussion with the provider with respect to functionality as well as the remaining financial obligation.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 15 – 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 $9.1 million, $0.4 million and $1.4 million, respectively, of which $4.2 million, $0.0 million and $1.2 million related to goodwill as of December 31, 2019.

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,
	2019			2018
Net Revenues:
North America	$	642,313		$	1,941,866
South America		455,475			476,234
Africa		1,454,257			1,410,893
		2,552,045			3,828,993

Identity Management		2,096,570			3,352,759
Payment Processing		455,475			476,234
		2,552,045			3,828,993

Loss From Operations
North America		(3,536,664	)		(1,959,125	)
South America		(5,186,550	)		(6,540,029	)
Africa		(1,362,535	)		(824,065	)
		(10,085,749	)		(9,323,219	)

Identity Management		(4,899,199	)		(2,783,190	)
Payment Processing		(5,186,550	)		(6,540,029	)
		(10,085,749	)		(9,323,219	)

Interest Expense		(375,598	)		(757,801	)
Other income/(expense)		23,920			83,649

Loss before income taxes		(10,437,427	)		(9,997,371	)

Income tax expense		(62,931	)		(30,242	)

Net loss	$	(10,500,358	)	$	(10,027,613	)

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENT

NOTE 16 – SUBSEQUENT EVENTS

Convertible Notes Payable

On February 14, 2020 the Company, entered into Securities Purchase Agreements with several accredited investors (the "2020 Note Investors") providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes in the aggregate amount of $1,510,000 (the "2020 Notes"). Philip D. Beck, Chief Executive Officer and Chairman of the Board, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000 payable by a deduction from his salary. Theodore Stern, a director of the Company, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000. Herbert Selzer invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Mr. Selzer provided $50,000 on the closing date and has agreed to provide the balance of the funding on or prior to April 30, 2020.

The 2020 Notes mature February 28, 2022 and are a secured obligation of the Company. The Company can prepay all or a portion of the 2020 Notes at any time provided that such amount prepaid shall be equal to 150% of the principal due. The Company shall pay interest on the 2020 Notes at the rate of 15% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the investor's option, shares of common stock of the Company.

If the Company prepays all or a portion of the 2020 Note prior to the one-year anniversary of the 2020 Note issuance date (the ("2020 Note Anniversary"), then the Company will be required to pay interest on the principal prepaid through the 2020 Note Anniversary. Further, upon maturity or in the event of default and/or bankruptcy of the 2020 Notes, the Company will be required to pay 150% of the principal due under the 2020 Notes.

At the option of the 2020 Note Investors, they may at any time convert the 2020 Notes. The amount of shares delivered shall be equal to 150% of the amount of the principal converted divided by the conversion price of $0.20 per share. Following the 2020 Note Anniversary, the Company may require that the 2020 Note Investors convert all or a portion of the 2020 Notes, if the Company's volume weighted average price for any preceding 20-day period is equal to or greater than $0.30.

Subject to the aggregate principal amount of all the 2020 Notes being not less than $1,500,000, the 2020 Note Investors are entitled to nominate and the Company will not unreasonably reject the appointment of a new member to the Company's Board of Directors.

The Company and FIN Holdings, Inc. and ID Solutions, Inc., two of the Company's subsidiaries, entered into a security agreement with the 2020 Note Investors, the holders of the 8% Convertible Notes in the principal amount of $428,000 issued December 2019 (the "8% Notes") and the Theodore Stern Revocable Trust (the "Stern Trust"), which is the holder of the Promissory Note in the principal amount of $2,000,000 (the "Stern Note"). The security agreement provides that until the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company's obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu. The security agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust. Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. The Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which that the principal and interest due under the 8% Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, save that the maturity shall be extended to the same maturity date as the 2020 Notes. A securities purchase agreement for $50,000 in 8% Notes was cancelled by mutual consent reducing the principal amount of the 8% Notes from $478,000 to $428,000.

In connection with this private offering, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800.

In February 2020, the Company offered all warrant holders holding warrants to purchase shares of Company common stock issued in July 2015 ("2015 Warrants") the right to extend the term of the 2015 Warrants for a period of two years, subject to an increase in the Exercise Price (as defined therein) to $0.06 per share, providing that such warrant holders invested a minimum $100,000 in the 2020 Note private offering. As a result, a portion of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period until February 2022 of 2015 Warrants representing the right to acquire 6,385,000 shares of common stock. Mr. Selzer holds 880,000 2015 Warrants, which were also extended as a result of his investment.

Covid 19

In December 2019, a novel strain of coronavirus ("Covid 19") emerged globally and has been declared a pandemic. The extent to which Covid 19 will impact our customers, business, results and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this time.

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

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Going concern

Going Concern

As of December 31, 2019, the Company had an accumulated deficit of approximately $86.1 million. For the year ended December 31, 2019, the Company earned revenue of approximately $2.6 million and incurred a loss from operations of approximately $9.2 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.

Basis of Consolidation

Basis of Consolidation

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Accounts Receivable

Accounts Receivable

Inventories

Inventories

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

See Notes 8, 11, 12 and 13 to Condensed Consolidated Financial Statements for additional information.

Property and Equipment, net

Property and Equipment, net

Other Assets - Software Development Costs

Other Assets – Software Development Costs

Intangible Assets

Intangible Assets

Goodwill

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 a goodwill impairment for the year ended December 31, 2018. During the year ended December 31, 2019, the Company updated their projections associated with their reporting units and it indicated that the carrying value may not be recovered as revenue assumptions were not met. The fair value of the reporting unit was determined using discounted cash flow as well as future realizable value. The goodwill impairment loss for the year ended December 31, 2019 was approximately $1,517,000 across the three reporting units.

Stock-based compensation

Stock-based compensation

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived 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 valuations 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. 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 year ended December 31, 2019, the Company wrote-off intangible assets related to developed software of approximately $155,000 as the net assets were no longer being used for commercial purposes and recorded a goodwill impairment loss of approximately $1,517,000 for reporting units where the carrying amount is in excess of its recoverable amount. The total of these charges is approximately $1,672,000.

Research and Development Costs

Research and Development Costs

The Company reclassified research and development costs of approximately $687,000 for the year ended December 31, 2018 to conform with the current presentation in the financial statements.

Net Loss per Common Share

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, 2019 and 2018 because their effect was antidilutive:

	2019		2018
Stock Options		109,400,006		106,253,339
Warrants		47,453,227		46,201,477
Total		156,853,233		152,454,816

Foreign Currency Translation

Foreign Currency Translation

Fair Value Measurements

Fair Value Measurements

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Revenue Recognition

Revenue Recognition

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

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

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.

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.

As of December 31, 2019, there was a deferred commission of approximately $5,000 related to future delivery of an identity solutions system and services.

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

See Notes 6 and 7 for additional information on indebtedness outstanding as of December 31, 2019.

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

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of potentially dilutive securities

	2019		2018
Stock Options		109,400,006		106,253,339
Warrants		47,453,227		46,201,477
Total		156,853,233		152,454,816

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

	2019		2018

Property and equipment	$	282,316	$	238,442
Equipment under capital lease (see Note 11)		156,867		156,867
		439,183		395,309
Less Accumulated depreciation		277,363		191,309
Property and equipment, net	$	161,820	$	204,000

OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2019

Other Assets [Abstract]

Schedule of other assets

	2019		2018
Software and development	$	128,005	$	1,566,177
Operating Lease ROU Assets		171,141		—
Other		83,920		—
	$	383,066	$	1.566,177

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

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets, net (other than goodwill)

	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, 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
Additions		—			3,111,668			—			—			30,695		3,142,363
Impairment loss		—			—			(154,622	)		—			—		(154,622	)
Amortization		(158,715	)		(368,637	)		(174,528	)		(2,433	)		—		(704,313	)
Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	-		$	108,877	$	5,593,612

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 a summary of intangible assets as of December 31, 2019:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents Pending		Total
Cost	$	1,587,159		$	4,071,550		$	1,498,363		$	14,087		$	108,877	$	7,280,036
Accumulated amortization		(617,140	)		(419,626	)		(635,571	)		(14,087	)		—		(1,686,424	)
Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	—		$	108,877	$	5,593,612

Schedule of future amortization expense of intangible assets

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

2020	$	1,158,743
2021		1,158,743
2022		1,119,319
2023		1,014,421
2024		790,106
Thereafter		352,280
	$	5,593,612

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	2019		2018
Trade payables	$	621,292	$	401,272
Accrued interest		641,834		401,667
Accrued payroll and related expenses		386,165		260,153
Current portion of operating lease liabilities		242,650		—
Other		323,971		239,134
Total	$	2,215,912	$	1,302,226

NOTES PAYABLE, NET (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of notes payable

	December 31, 2019			December 31, 2018

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 note payable and 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 an extension fee of 1,500,000 shares of the Common Stock issued to the Noteholder. The April 2018 change in terms of the 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. See below.	$	2,000,000		$	2,000,000
Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months		12,866			—
Total Principal Outstanding	$	2,012,866		$	2,000,000
Unamortized Deferred Debt Discount		(26,722	)		(106,886	)
Unamortized Deferred Debt Issuance Costs		(9,866	)		(39,466	)
Notes Payable, Net	$	1,976,278		$	1,853,648
Notes Payable, current portion, net of discount, issuance costs and current portion	$	1,970,937		$	—
Notes Payable, Net of discounts and current portion		5,341			1,853,648
	$	1,976,278		$	1,853,648

Schedule of notes payable and related discounts

	Principal			Debt Issuance			Debt
	Balance			Costs			Discounts			Total
Balance at January 1, 2018	$	3,000,000		$	(168,345	)	$	(455,935	)	$	2,375,720
New issuances		—			—			—			—
Payments		(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
New issuances		16,510			—			—			16,510
Payments		(3,644	)		—			—			(3,644	)
Amortization		—			29,600			80,164			109,764
Balance at December 31, 2019	$	2,012,866		$	(9,866	)	$	(26,722	)	$	1,976,278

Schedule of future maturities of notes payable

2020	$	5,340
2021		2,005,947
2022		1,579
	$	2,012,866

OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2019

Other Liabilities [Abstract]

Schedule of other liabilities

	2019		2018

Operating lease liabilities, long term	$	131,568	$	—
Other		—		45,000
	$	131,568	$	45,000

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of granted warrants

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at January 1, 2017		48,164,543		$	0.11	2.8 Years
Granted		2,470,267		$	0.14	5.0 Years
Exercised/Cancelled		(4,433,333	)	$	0.05
Outstanding at December 31, 2018		46,201,477		$	0.11	2.9 Years
Granted		1,251,750		$	0.09	5.0 Years
Exercised/Cancelled		-		$		—
Outstanding at December 31, 2019		47,453,227		$	0.09	1.9 Years

Schedule of black - scholes option-pricing model valuation assumption

	2019	2018
Expected Volatility	75% to 80%	79.0% to 93.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	1.73% – 2.49%	2.42% – 3.00%
Dividend Rate	0.00%	0.00%

Schedule of outstanding stock options

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

Outstanding as of January 1, 2018		103,208,331		$	0.19		9.5	$	10,023,400
Granted		6,220,000		$	0.22		10.0	$	2,868.750
Exercised/Forfeited		(3,174,992	)	$	0.08		—	$	—
Outstanding as of December 31, 2018		106,253,339		$	0.19		9.5	$	11,457,291
Granted		3,600,000		$	0.07		10.0	$	—
Forfeited		(453,333	)	$	0.13		—	$	—
Outstanding as of December 31, 2019		109,400,006		$	0.20		6.5	$	280,000
Exercisable as of December 31, 2019		101,144,450		$	0.19		7.4	$	280,000

Schedule of stock option

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$	0.0001		3,500,000		5.8		3,500,000
$	0.05		35,700,006		6.9		31,950,006
$	0.10		27,200,000		6.8		27,061,110
$	0.12		1,200,000		9.0		—
$	0.13		250,000		7.8		166,667
$	0.15		2,800,000		5.9		2,800,000
$	0.22		2,750,000		8.0		1,500,000
$	0.25		2,500,000		7.9		1,166,667
$	0.26		500,000		8.3		333.333
$	0.29		1,000,000		7.3		666,667
$	0.4		1,000,000		6.2		1,000,000
$	0.45		31,000,000		5.9		31,000,000
					6.5
			109,400,006				101,144,450

DIRECT FINANCING LEASE (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of future minimum lease payments to be received

Year Ending December 31,
2020	$	122,148
2021		122,148
2022		122,148
2023		122,148
2024		122,148
Thereafter		162,864
		773,604
Less deferred revenue		(213,568	)
Net investment in lease	$	560,036

LEASE OBLIGATION PAYABLE (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of lease obligation payable

2020	$	43,096
2021		43,096
2022		10,774
Total minimum lease payments		96,966

Less: Amount representing interest		(12,356	)

Present value of minimum lease payments	$	84,610

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income taxes

	2019			2018
United States	$	(8,548,570	)	$	(8,775,452	)
Outside United States		(1,888,857	)		(1,221,919	)
Loss before income taxes	$	(10,437,427	)	$	(9,997,371	)

Schedule of components of deferred tax assets and liabilities

	2019			2018
US Federal Statutory Tax Rate		21.00	%		21.00	%
State taxes		4.35	%		4.35	%
NOL True-Ups		5.27	%		2.47	%

Change in valuation allowance		(30.62	%)		(27.82	%)

		0.00	%		0.00	%

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

	2019			2018
Deferred Tax Assets
Net Operating Loss	$	7,681,718		$	5,981,004
Stock Options		6,632,746			5,890,565
Charitable Contributions		1,267			1,267
Basis Difference in Intangible Assets		7,405			99,296
Basis Difference Fixed Assets		—			5,096
Accrued Payroll		51,907			42,939
Valuation Allowance		(14,365,195	)		(11,938,078	)
Total Deferred Tax Asset		9,848			37,089

Debt Discounts		(6,769	)		(27,086	)
Debt Issuance Costs		(2,501	)		(10,003	)
Basis Difference Fixed Assets		(578	)		—
Total Deferred Tax Liability		(9,848	)		(37,089	)

Net Deferred Tax Asset	$	—		$	—

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of related lease balance

The lease related balances included in the Condensed Consolidated Balance Sheet as of December 31, 2019 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	254,919

Operating lease ROU assets – included in Other Assets		171,141

Total operating lease assets	$	426,060

Liabilities:


Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	242,650

Long-term portion of ROU liabilities – included in Other liabilities		131,568

Total operating lease liabilities	$	374,218

Schedule of future minimum lease payments required under convertible operating leases

The following table presents the maturity of the Company's operating lease liabilities as of December 31, 2019:

2020	$	277,961
2021		96,606
2022		49,716
Total operating lease payments		424,283
Less: Imputed interest		(50,065	)
Total operating lease liabilities	$	374,218

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

2020	$	276,000
2021		97,000
2022		50,000
Total	$	423,000

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of geographic region

	Year Ended December 31,
	2019			2018
Net Revenues:
North America	$	642,313		$	1,941,866
South America		455,475			476,234
Africa		1,454,257			1,410,893
		2,552,045			3,828,993

Identity Management		2,096,570			3,352,759
Payment Processing		455,475			476,234
		2,552,045			3,828,993

Loss From Operations
North America		(3,536,664	)		(1,959,125	)
South America		(5,186,550	)		(6,540,029	)
Africa		(1,362,535	)		(824,065	)
		(10,085,749	)		(9,323,219	)

Identity Management		(4,899,199	)		(2,783,190	)
Payment Processing		(5,186,550	)		(6,540,029	)
		(10,085,749	)		(9,323,219	)

Interest Expense		(375,598	)		(757,801	)
Other income/(expense)		23,920			83,649

Loss before income taxes		(10,437,427	)		(9,997,371	)

Income tax expense		(62,931	)		(30,242	)

Net loss	$	(10,500,358	)	$	(10,027,613	)

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of shares	156,853,233	152,454,816
Stock Option [Member]
Number of shares	109,400,006	106,253,339
Warrants [Member]
Number of shares	47,453,227	46,201,477

DESCRIPTION OF BUSINESS AMD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2019 USD ($) Kiosks	Dec. 31, 2018 USD ($) Kiosks	Jan. 02, 2019 USD ($)
Cash, FDIC insured amount	$ 250,000
Revenue	2,488,624	$ 3,759,635
Accumulated deficit	(86,935,593)	(76,435,235)
Loss from operations	(10,085,749)	(9,323,219)
Impairment of long lived assets		149,000
Inventory valuation allowance	236,000	353,000
Deferred revenue contract liability	137,000	236,000
Revenue from new platform	13,000	5,000
Deferred commission	5,000
Operating lease right-of-use assets	426,060		$ 514,000
Deferred revenue payments received in advance	288,000
Research and development cost		687,000
Accounts payable and accrued expenses	$ 5,000
Subsequent event, description	If the Company prepays all or a portion of the 2020 Note prior to the one-year anniversary of the 2020 Note issuance date (the ("2020 Note Anniversary"), then the Company will be required to pay interest on the principal prepaid through the 2020 Note Anniversary. Further, upon maturity or in the event of default and/or bankruptcy of the 2020 Notes, the Company will be required to pay 150% of the principal due under the 2020 Notes.
Notes payable percentage	15.00%
Software developed	$ 3,100,000	$ 700,000
Net assets	155,000
Good will mpairment loss	1,517,000
Assets and Impairment loss total	1,672,000
Goodwill impairment loss	$ 1,517,000
Notes Mature February 28, 2022 [Member]
Notes payable percentage	150.00%
Notes Payable [Member]
Fair value of notes payable	$ 2,013,000
Carrying value	1,976,000
Convertible notes payable	$ 428,000
Principal converted amount	150.00%
Aggregate principal amount	$ 1,500,000
Convertible Notes the principal amount, description	The aggregate principal amount of all the 2020 Notes being not less than $1,500,000, the 2020 Note Investors are entitled to nominate and the Company will not unreasonably reject the appointment of a new member to the Company's Board of Directors. The Company and FIN Holdings, Inc. and ID Solutions, Inc., two of the Company's subsidiaries, entered into a security agreement with the 2020 Note Investors, the holders of the 8% Convertible Notes in the principal amount of $428,000 issued December 2019 (the "8% Notes") and the Theodore Stern Revocable Trust (the "Stern Trust"), which is the holder of the Promissory Note in the principal amount of $2,000,000 (the "Stern Note"). The security agreement provides that until the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company's obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu. The security agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust. Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. The Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which that the principal and interest due under the 8% Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, save that the maturity shall be extended to the same maturity date as the 2020 Notes. A securities purchase agreement for $50,000 in 8% Notes was cancelled by mutual consent reducing the principal amount of the 8% Notes from $478,000 to $428,000. In connection with this private offering, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800. In February 2020, the Company offered all warrant holders holding warrants to purchase shares of Company common stock issued in July 2015 ("2015 Warrants") the right to extend the term of the 2015 Warrants for a period of two years, subject to an increase in the Exercise Price (as defined therein) to $0.06 per share, providing that such warrant holders invested a minimum $100,000 in the 2020 Note private offering. As a result, a portion of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period until February 2022 of 2015 Warrants representing the right to acquire 6,385,000 shares of common stock. Mr. Selzer holds 880,000 2015 Warrants, which were also extended as a result of his investment.
Direct Financing Lease Arrangements [Member]
Number of kiosks \| Kiosks	78	78
Direct financing lease, imputed interest rate	0.107	0.107
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	$ 94,000
COLOMBIA [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	18.00%	12.00%
COLOMBIA [Member] \| Revenues [Member] \| Four Customers [Member]
Percentage of concentration risk	89.00%	89.00%
COLOMBIA [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	51.00%	20.00%
North American [Member]
Revenue from operations	$ 600,000	$ 1,900,000
South African [Member]
Revenue from operations	500,000	500,000
South Africa [Member]
Cash held by acquiry	279,000
Revenue from operations	$ 1,500,000	$ 1,400,000
South Africa [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk		37.00%
South Africa [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	46.00%	70.00%
British Banks [Member]
Cash held by acquiry	$ 2,000
United States [Member]
Percentage of concentration risk	25.00%
United States [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	57.00%	14.00%
United States [Member] \| Accounts Receivable [Member] \| Customer [Member]
Percentage of concentration risk	3.00%	4.00%
ZIMBABWE [Member] \| Revenues [Member] \| Customer [Member]
Percentage of concentration risk	5.00%	37.00%

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 439,183	$ 395,309
Less Accumulated depreciation	277,363	191,309
Property and equipment, net	161,820	204,000
Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	282,316	238,442
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, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 86,054	$ 64,810

OTHER ASSETS (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Software and development	$ 128,005	$ 1,566,177
Operating Lease ROU Assets	171,141
Other	83,920
Other assets	$ 383,066	$ 1,566,177

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	$ 3,310,184	$ 2,878,080
Additions	3,142,363	1,009,618
Impairment loss	(1,671,804)	(148,627)
Amortization	(704,313)	(428,887)
Carrying Value at ending	$ 5,593,612	3,310,184
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 1,128,734	1,287,450
Additions
Impairment loss
Amortization	(158,715)	(158,716)
Carrying Value at ending	$ 970,019	1,128,734
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years
Carrying Value at beginning	$ 908,893
Additions	3,111,668	959,882
Impairment loss
Amortization	(368,637)	(50,989)
Carrying Value at ending	$ 3,651,924	908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 1,191,942	1,556,934
Additions
Impairment loss	(154,622)	148,627
Amortization	(174,528)	(216,365)
Carrying Value at ending	$ 862,532	1,191,942
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 2,433	5,250
Additions
Impairment loss
Amortization	(2,433)	(2,817)
Carrying Value at ending		2,433
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	78,182	28,446
Additions	30,695	49,736
Impairment loss
Amortization
Carrying Value at ending	$ 108,877	$ 78,182

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Cost	$ 7,280,036	$ 4,399,119
Accumulated amortization	(1,686,424)	(1,088,935)
Carrying Value	5,593,612	3,310,184	$ 2,878,080
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,587,159	1,587,159
Accumulated amortization	(617,140)	(458,425)
Carrying Value	970,019	1,128,734	1,287,450
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	4,071,550	959,882
Accumulated amortization	(419,626)	(50,989)
Carrying Value	3,651,924	908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,498,363	1,759,809
Accumulated amortization	(635,571)	(567,867)
Carrying Value	862,532	1,191,942	1,556,934
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	14,087	14,087
Accumulated amortization	(14,087)	(11,654)
Carrying Value		2,433	5,250
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	108,877	78,182
Accumulated amortization
Carrying Value	$ 108,877	$ 78,182	$ 28,446

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 1,158,743
2021	1,158,743
2022	1,119,319
2023	1,014,421
2024	790,106
Thereafter	352,280
Total	$ 5,593,612	$ 3,310,184	$ 2,878,080

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Trade payables	$ 621,292	$ 401,272
Accrued interest	641,834	401,667
Accrued payroll and related expenses	386,165	260,153
Current portion of operating lease liabilities	242,650
Other	323,971	239,134
Total	$ 2,215,912	$ 1,302,226

NOTES PAYABLE, NET (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Unamortized Deferred Debt Discount	$ (26,722)	$ (106,886)	$ (455,935)
Unamortized Deferred Debt Issuance Costs	(9,866)	(39,466)	(168,345)
Notes Payable, Net	1,976,278	1,853,648
Notes Payable, current portion, net of discount, issuance costs and current portion	1,970,937
Notes Payable, Net of discounts and current portion	5,341	1,853,649
Total	1,976,278	1,853,648	$ 2,375,720
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Total Principal Outstanding	2,000,000	2,000,000
Vehicle [Member]
Short-term Debt [Line Items]
Total Principal Outstanding	$ 12,866

NOTES PAYABLE, NET (Details 1) - USD ($)	12 Months Ended
NOTES PAYABLE, NET (Details 1) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Principal Balance
Beginning Balance	$ 2,000,000	$ 3,000,000
New issuances	16,510
Payments	(3,644)	(1,000,000)
Amortization
Ending Balance	2,012,866	2,000,000
Debt Issuance Costs
Beginning Balance	(39,466)	(168,345)
New issuances
Payments
Amortization	29,600	128,879
Ending Balance	(9,866)	(39,466)
Debt Discounts
Beginning Balance	(106,886)	(455,935)
New issuances
Payments
Amortization	80,164	349,049
Ending Balance	(26,722)	(106,886)
Total
Beginning Balance	1,853,648	2,375,720
New issuances	16,510
Payments	(3,644)	(1,000,000)
Amortization	109,764	477,928
Ending Balance	$ 1,976,278	$ 1,853,648

NOTES PAYABLE, NET (Details 2)	Dec. 31, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 5,340
2021	2,005,947
2022	1,579
Total	$ 2,012,866

NOTES PAYABLE, NET (Details Narrative) - USD ($)			1 Months Ended	12 Months Ended
NOTES PAYABLE, NET (Details Narrative) - USD ($)	Apr. 30, 2018	Jan. 31, 2017	Aug. 09, 2018	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Common stock issues value				$ 2,928,312	$ 8,951,929
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Debt term		2 years
Debt discount		$ 830,018
Debt issuance costs consisting value		$ 306,000
Debt issuance costs consisting shares		1,020,000
Common stock issued to the noteholder	$ 1,500,000
Face amount		$ 3,000,000	$ 3,000,000
Cash fee		120,000
Common stock issues value		$ 1,147,500	$ 1,000,000	$ 420,000
Common stock issues shares		4,500,000
Vehicle [Member]
Short-term Debt [Line Items]
Debt term				36 months
Interest rate				10.80%
Monthly payments				$ 539

CONVERTIBLE NOTES PAYABLE (Details Narrative)	12 Months Ended
CONVERTIBLE NOTES PAYABLE (Details Narrative)	Dec. 31, 2019
Debt Disclosure [Abstract]
Convertible notes payable, description	The Company, entered into Securities Purchase Agreements with several accredited investors (the "8% Note Investors") providing for the sale by the Company to the Investors of 8% Convertible Notes in the aggregate amount of $428,000 (the "8% Notes"). The 8% Notes mature on November 30, 2021 and are a general unsecured obligation of the Company. The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay interest on the 8% Notes at the rate of 8.0% per annum payable at the earlier of the maturity date or conversion date, in cash or, at the holder's option, shares of common stock of the Company. At the option of the 8% Note Investors, all or a portion of the 8% Notes may be converted into shares of common stock of the Company at $0.08 per share. If the holders of the 8% Notes owning outstanding 8% Notes representing in excess of half of the aggregate outstanding principal amount of all 8% Notes provide notice to the Company of their intent to convert their 8% Notes, then all 8% Notes plus unpaid interest and other amounts owing to each of the holders shall be automatically converted. The 8% Notes were amended in February 2020 became a secured obligation of the Company and now mature in 2022. See Note 1 "Subsequent Event"

OTHER LIABILITIES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Operating lease liabilities, long term	$ 131,568
Other		45,000
Total other liabilities	$ 131,568	$ 45,000

OTHER LIABILITIES (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Other liabilities	$ 131,568	$ 45,000

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		1 Months Ended			12 Months Ended
	Jan. 31, 2017	Jun. 30, 2019	Aug. 31, 2018	Aug. 09, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Due to related parties paid					$ 66,825		$ 66,825
Common stock issues value					2,928,312	$ 8,951,929
Confidential Settlement Agreement and General Release [Member]
Professional fees					160,000
Agency Agreement [Member]
Professional fees					84,000
Mr. Stern [Member]
Number of shares issued			6,666,667
Mr. Selzer [Member]
Number of shares issued			666,667
Senior Unsecured Note [Member]
Interest expenses				$ 158,000	240,000
Number of common stock purchased, shares	4,500,000
Chairman of board of directors					25,000
Face amount	$ 3,000,000			3,000,000
Loan interest expense					$ 284,000
Number of shares issued					1,500,000
Common stock issues value	$ 1,147,500			$ 1,000,000	$ 420,000
New Office Facilities [Member] \| Long Beach, New York [Member]
Additional monthly rental payments					$ 7,425
Agreement term					30 days
Common Stock [Member]
Number of common stock purchased, shares		1,562,500
Number of shares issued for brokerage					410,708	456,735
Warrants [Member] \| Network 1 Financial Securities Inc [Member]
Fair value of warrants					$ 54,000
Fees incurred					$ 109,000
Warrant term					5 years
Share price (in dollars per share)					$ 0.088
Number of shares issued			2,470,000
Common stock issues value			$ 659,000
Exercise price			$ 0.165
Lease expenses			$ 89,100

STOCKHOLDER'S EQUITY (Details) - $ / shares	12 Months Ended
STOCKHOLDER'S EQUITY (Details) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding balance at beginning	46,201,477	48,164,543
Granted	1,251,750	2,470,267
Exercised/Cancelled		(433,333)
Outstanding balance at ending	47,453,227	46,201,477
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Exercise Price [Roll Forward]
Beginning Balance Outstanding	$ 0.11	$ 0.11
Granted	0.09	0.14
Exercised/Cancelled		0.05
Ending Balance Outstanding	$ 0.09	$ 0.11
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Remaining Life [Roll Forward]
Beginning Balance Outstanding	2 years 1 month 2 days	2 years 29 days
Granted	5 years	5 years
Ending Balance Outstanding	1 year 1 month 2 days	2 years 1 month 2 days

STOCKHOLDER'S EQUITY (Details 1)	12 Months Ended
STOCKHOLDER'S EQUITY (Details 1)	Dec. 31, 2019	Dec. 31, 2018
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	75.00%	79.00%
Expected Term	2 years 6 months	2 years 6 months
Risk Free Rate	1.73%	2.42%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	80.00%	93.00%
Expected Term	5 years 10 months 25 days	5 years 10 months 25 days
Risk Free Rate	2.49%	3.00%

STOCKHOLDER'S EQUITY (Details 2) - USD ($)	12 Months Ended
STOCKHOLDER'S EQUITY (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Number of Shares [Roll Forward]
Outstanding at beginning	106,253,339	103,208,331
Granted	3,600,000	6,220,000
Exercised/Forfeited	(453,333)	(3,174,992)
Outstanding at ending	109,400,006	106,253,339
Exercisable at ending	101,144,450
Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 0.19	$ 0.19
Granted	0.07	0.22
Forfeited	0.13	0.08
Outstanding at ending	0.20	$ 0.19
Exercisable at ending	$ 0.19
Weighted Average Contractual Term [Roll Forward]
Outstanding at beginning	9 years 6 months	9 years 6 months
Granted	10 years	10 years
Outstanding at ending	6 years 6 months	9 years 6 months
Exercisable at ending	7 years 4 months 24 days
Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginning	$ 11,457,291	$ 10,023,400
Granted		2,868,750
Forfeited
Outstanding at ending	10,023,400	$ 11,457,291
Exercisable at ending	$ 280,000

STOCKHOLDER'S EQUITY (Details 3)	12 Months Ended
STOCKHOLDER'S EQUITY (Details 3)	Dec. 31, 2019 shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	109,400,006
Exercisable	101,144,450
Exercise Price $0.00001 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	3,500,000
Weighted Average Contractual Life (Yrs.)	5 years 9 months 18 days
Exercisable	3,500,000
Exercise Price $0.05 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	35,700,006
Weighted Average Contractual Life (Yrs.)	6 years 10 months 25 days
Exercisable	31,950,006
Exercise Price $0.10 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	27,200,000
Weighted Average Contractual Life (Yrs.)	6 years 9 months 18 days
Exercisable	27,061,110
Exercise Price $0.12 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,200,000
Weighted Average Contractual Life (Yrs.)	9 years
Exercisable
Exercise Price $0.13 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	250,000
Weighted Average Contractual Life (Yrs.)	7 years 9 months 18 days
Exercisable	166,667
Exercise Price $0.15 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,800,000
Weighted Average Contractual Life (Yrs.)	5 years 10 months 25 days
Exercisable	2,800,000
Exercise Price $0.22 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,750,000
Weighted Average Contractual Life (Yrs.)	8 years
Exercisable	1,500,000
Exercise Price $0.25 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,500,000
Weighted Average Contractual Life (Yrs.)	7 years 10 months 25 days
Exercisable	1,166,667
Exercise Price $0.26 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	500,000
Weighted Average Contractual Life (Yrs.)	8 years 3 months 19 days
Exercisable	333.333
Exercise Price $0.29 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life (Yrs.)	7 years 3 months 19 days
Exercisable	666,667
Exercise Price $0.40 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life (Yrs.)	6 years 2 months 12 days
Exercisable	1,000,000
Exercise Price $0.45 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	31,000,000
Weighted Average Contractual Life (Yrs.)	5 years 10 months 25 days
Exercisable	31,000,000

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Jun. 30, 2019	Aug. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 28, 2017
Stock based compensation			$ 1,246,019	$ 2,429,959
Number of common shares issued, amount			2,928,312	8,951,929
Number of common shares issued for services, amount			$ 41,071	$ 97,126
Number of options granted			3,600,000	6,220,000
Vesting term			3 years
Vesting rights description			Of the 3,600,000 stock options, 3,475,000 options vest over a three-year period and 125,000 options vest upon achieving certain performance thresholds.
Common stock, authorized			1,000,000,000	1,000,000,000		500,000,000
Common stock, issued			518,125,454	478,950,996
Preferred stock, authorized			20,000,000
Number of stock granted			1,251,750	2,470,267
Number of options exercisable			101,144,450
Exercise price of option			$ 0.19
Stock options term			7 years 4 months 24 days
Ten Employees And One Non-Employee [Member]
Number of options granted				231,000
Options fair value				$ 962,000
Vesting term				3 years
Vesting period, description				The options have a term of ten years.
Ten Employees And One Non-Employee [Member] \| Tranche One [Member]
Number of options exercisable				3,250,000
Exercise price of option				$ 0.22
Ten Employees And One Non-Employee [Member] \| Tranche Two [Member]
Number of options exercisable				2,000,000
Exercise price of option				$ 0.25
2014 Equity Compensation Plan [Member]
Number of shares authorized			25,000,000
2017 Incentive Stock Plan [Member]
Number of shares authorized			70,000,000
MultiPay S.A.S [Member]
Cancellation of common stock				728,448
Warrant 1 [Member] \| Subscription Agreements [Member]
Number of common stock purchased, shares		2,470,000
Number of common shares issued, amount		$ 314,000
Warrant term		5 years
Shares issued price per share		$ 0.165
Common Stock [Member]
Number of common stock purchased, shares	1,562,500
Number of common shares issued for services, shares			410,708	456,735
Number of common shares issued for services, amount			$ 41	$ 46
Common stock, outstanding			518,125,454	478,950,996	403,311,988
Warrant [Member] \| Subscription Agreements [Member]
Unrecognized compensation costs				$ 4,433,333
Exercise price				$ 0.05
Service Provider [Member]
Number of common shares issued for services, shares				456,735
Number of common shares issued for services, amount				$ 97,126
Investors [Member] \| Subscription Agreements [Member]
Number of common stock purchased, shares		64,072,000
Number of common shares issued, amount		$ 9,611,000
Investors [Member] \| Warrant 1 [Member]
Share price (in dollars per share)				$ 0.13
Number of stock vested				3,200,000
Common stock issued upon exercise of warrants				4,433,333
Exercise price				$ 0.05
Number of shares issued on conversion				3,500,000
Investors [Member] \| Common Stock [Member]
Number of shares issued on conversion				1,600,000
Network1 Financial Securities Inc. [Member] \| Subscription Agreements [Member]
Cash fee		$ 629,000
Accredited Investors June 2019 [Member] \| Warrant [Member] \| Subscription Agreements [Member]
Unrecognized compensation costs			$ 1,251,750
Warrant term			5 years
Exercise price			$ 0.088
Accredited Investors August 2019 [Member] \| Warrant [Member] \| Subscription Agreements [Member]
Unrecognized compensation costs				$ 2,470,267
Warrant term				5 years
Exercise price				$ 0.14
Accredited Investors 2019 [Member] \| Subscription Agreements [Member]
Fees paid	$ 173,000
Share price (in dollars per share)	$ 0.088
Accredited Investors 2019 [Member] \| Subscription Agreements [Member] \| Two Service Providers [Member]
Number of common shares issued for services, shares	411,000
Number of common shares issued for services, amount	$ 41,000
Accredited Investors 2019 [Member] \| Common Stock [Member] \| Subscription Agreements [Member]
Number of common stock purchased, shares	38,764,000
Number of common shares issued, amount	$ 3,100,000
Accredited Investors 2019 [Member] \| Warrant [Member] \| Subscription Agreements [Member]
Number of common stock purchased, shares	1,251,750
Warrant term	5 years
Fair value of warrants	$ 79,000
Restricted Stock [Member]
Warrant term				3 years
Number of stock granted				2,750,000
Number of stock vested				2,000,000
Restricted Stock [Member] \| Non Employee Directors [Member]
Number of stock granted				2,456,000
Non Employee Stock Option [Member]
Stock based compensation				$ 2,430,000
Unrecognized compensation costs			$ 27,000
Number of options exercisable				970,000
Exercise price of option				$ 0.12
Employee Stock Option [Member]
Stock based compensation			1,246,000	$ 2,430,000
Unrecognized compensation costs			$ 446,000
Number of options granted			150,000	6,220,000
Vesting term			10 years
Number of stock vested				750,000

DIRECT FINANCING LEASE (Details)	Dec. 31, 2019 USD ($)
Year Ending December 31,
2020	$ 122,148
2021	122,148
2022	122,148
2023	122,148
2024	122,148
Thereafter	162,864
Sub-total	773,604
Less deferred revenue	(213,568)
Net investment in lease	$ 560,036

DIRECT FINANCING LEASE (Details Narrative)	1 Months Ended	12 Months Ended
DIRECT FINANCING LEASE (Details Narrative)	Sep. 30, 2016 USD ($) Kiosks $ / shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Revenue		$ 2,552,045	$ 3,828,993
Equipment under capital lease		748,000
Aggregate minimum future lease payments		1,422,000
Unearned income		$ 474,000
Cash Collection and Services [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
Receive monthly payments	$ 11,856

LEASE OBLIGATION PAYABLE (Details)	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 43,096
2021	43,096
2022	10,774
Total minimum lease payments	96,966
Less: Amount representing interest	(12,356)
Present value of minimum lease payments	$ 84,610

LEASE OBLIGATION PAYABLE (Details Narrative)	12 Months Ended
LEASE OBLIGATION PAYABLE (Details Narrative)	Dec. 31, 2019 USD ($)
Leases [Abstract]
Amortization of lease equipment	$ 91,079
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, 2019	Dec. 31, 2018
Loss before income taxes	$ (10,437,427)	$ (9,997,371)
United States [Member]
Loss before income taxes	(8,548,570)	(8,775,452)
Outside United States [Member]
Loss before income taxes	$ (1,888,857)	$ (1,221,919)

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
US Federal Statutory Tax Rate	21.00%	21.00%
State taxes	4.35%	4.35%
NOL True-Ups	5.27%	2.47%
Change in valuation allowance	(30.62%)	(27.82%)
Total	0.00%	0.00%

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets:
Net Operating Loss	$ 7,681,718	$ 5,981,004
Stock Options	6,632,746	5,890,565
Charitable Contributions	1,267	1,267
Basis Difference in Intangible Assets	7,405	99,296
Basis Difference Fixed Assets		5,096
Accrued Payroll	51,907	42,939
Valuation Allowance	(14,365,195)	(11,938,078)
Total Deferred Tax Asset	9,848	37,089
Debt Discounts	(6,769)	(27,086)
Debt Issuance Costs	(2,501)	(10,003)
Basis Difference Fixed Assets	(578)
Total Deferred Tax Liability	(9,848)	(37,089)
Net Deferred Tax Asset

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Federal operating loss carryforward	$ 25,900,000
State operating loss carryforward	25,900,000
Operating loss carry forwards	$ 25,900,000
Expiration Year	2039
Valuation allowance	$ 14,365,195	$ 11,938,078
Minimum [Member]
Federal corporate rate reduction	21.00%
Maximum [Member]
Federal corporate rate reduction	35.00%

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2019 USD ($)
Assets:
Current portion of operating lease ROU assets - included in other current assets	$ 254,919
Operating lease ROU assets - included in Other Assets	171,141
Total operating lease assets	426,060
Liabilities:
Current portion of ROU liabilities - included in Accounts payable and accrued expenses	242,650
Long-term portion of ROU liabilities - included in Other liabilities	131,568
Total operating lease liabilities	$ 374,218

COMMITMENTS AND CONTINGENCIES (Details 1)	Dec. 31, 2019 USD ($)
Operating Leases Year Ending December 31:
2020	$ 277,961
2021	96,606
2022	49,716
Total operating lease payments	424,283
Less: Imputed interest	(50,065)
Total operating lease liabilities	374,218
Non-Convertible Operating Leases [Member]
Operating Leases Year Ending December 31:
2020	276,000
2021	97,000
2022	50,000
Total operating lease payments	$ 423,000

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, 2019 USD ($) ft²	Dec. 31, 2018 USD ($)
Weighted average lease term			1 year 2 months 12 days
Weighted average discount rate			13.55%
Rent expense			$ 439,000	$ 381,000
Agreement,description			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 $160,000 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. The Company is in discussion with the provider with respect to functionality as well as the remaining financial obligation.
COLOMBIA [Member] \| Apartment [Member]
Monthly rental payments			$ 2,000
Alpharetta Georgia [Member] \| New Office Facilities [Member]
Monthly rental payments	$ 3,800
Plantation [Member] \| New Office Facilities [Member]
Monthly rental payments			$ 2,700
Area of land for rent \| ft²			2,100
South Africa [Member] \| New Office Facilities [Member]
Monthly rental payments			$ 8,000
Long Beach, New York [Member] \| New Office Facilities [Member]
Additional monthly rental payments			$ 7,425
Agreement term			30 days
MultiPay S.A.S [Member] \| COLOMBIA [Member] \| New Office Facilities [Member]
Monthly rental payments		$ 8,500
Agreement term		2 years

SEGMENT INFORMATION (Details) - USD ($)	12 Months Ended
SEGMENT INFORMATION (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Revenues, net	$ 2,552,045	$ 3,828,993
Loss From Operations	(10,085,749)	(9,323,219)
Interest Expense	(375,598)	(757,801)
Other income/(expense)	23,920	83,649
Loss before income taxes	(10,437,427)	(9,997,371)
Income tax expense	(62,931)	(30,242)
Net loss	(10,500,358)	(10,027,613)
North America [Member]
Revenues, net	642,313	1,941,866
Loss From Operations	(3,536,664)	(1,959,125)
South America [Member]
Revenues, net	455,475	476,234
Loss From Operations	(5,186,550)	(6,540,029)
Africa [Member]
Revenues, net	1,454,257	1,410,893
Loss From Operations	(1,362,535)	(824,065)
Payment Processing [Member]
Revenues, net	455,475	476,234
Loss From Operations	(5,186,550)	(6,540,029)
Identity Management [Member]
Revenues, net	2,096,570	3,352,759
Loss From Operations	$ (4,899,199)	$ (2,783,190)

SEGMENT INFORMATION (Details Narrative)	12 Months Ended
SEGMENT INFORMATION (Details Narrative)	Dec. 31, 2019 USD ($) Segment	Dec. 31, 2018 USD ($)
Number of reportable segments \| Segment	2
Goodwill	$ 5,218,861	$ 6,736,043
North America [Member]
Gross long lived assets	9,100,000
Goodwill	4,200,000
South America [Member]
Gross long lived assets	400,000
Goodwill	0
Africa [Member]
Gross long lived assets	1,400,000
Goodwill	$ 1,200,000

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended	12 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Feb. 14, 2020	Dec. 31, 2019
Subsequent event, description		If the Company prepays all or a portion of the 2020 Note prior to the one-year anniversary of the 2020 Note issuance date (the ("2020 Note Anniversary"), then the Company will be required to pay interest on the principal prepaid through the 2020 Note Anniversary. Further, upon maturity or in the event of default and/or bankruptcy of the 2020 Notes, the Company will be required to pay 150% of the principal due under the 2020 Notes.
Notes payable percentage		15.00%
Notes Payable [Member]
Principal converted amount		150.00%
Convertible notes payable		$ 428,000
Convertible Notes the principal amount, description		The aggregate principal amount of all the 2020 Notes being not less than $1,500,000, the 2020 Note Investors are entitled to nominate and the Company will not unreasonably reject the appointment of a new member to the Company's Board of Directors. The Company and FIN Holdings, Inc. and ID Solutions, Inc., two of the Company's subsidiaries, entered into a security agreement with the 2020 Note Investors, the holders of the 8% Convertible Notes in the principal amount of $428,000 issued December 2019 (the "8% Notes") and the Theodore Stern Revocable Trust (the "Stern Trust"), which is the holder of the Promissory Note in the principal amount of $2,000,000 (the "Stern Note"). The security agreement provides that until the principal and accrued but unpaid interest under the 2020 Notes, 8% Notes and Stern Note is paid in full or converted pursuant to their terms, the Company's obligations under the 2020 Notes, 8% Notes and Stern Note will be secured by a lien on all assets of the Company. The security interest granted to the holders of the 2020 Notes, 8% Notes and Stern Note ranks pari passu. The security agreement permits sales of assets up to a value of $1,000,000 which proceeds may be used for working capital purposes and the secured parties will take such steps as may be reasonably necessary to release its security interest and enable such sales in such circumstances. Each of the secured parties appointed Mr. Stern and a third-party investor as joint collateral agents. Mr. Stern, a director of the Company, is the trustee of the Stern Trust. Further, the Company and the Stern Trust entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 principal of the Stern Note will be due and payable on the same terms (bearing interest at 15% per annum) and on the same maturity date as the 2020 Notes and that the interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 will remain due and payable on the same terms as exist in the Stern Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes. The Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which that the principal and interest due under the 8% Notes will remain due and payable on the same terms as exist in the 8% Notes prior to modification, save that the maturity shall be extended to the same maturity date as the 2020 Notes. A securities purchase agreement for $50,000 in 8% Notes was cancelled by mutual consent reducing the principal amount of the 8% Notes from $478,000 to $428,000. In connection with this private offering, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer, a cash fee of approximately $104,800. In February 2020, the Company offered all warrant holders holding warrants to purchase shares of Company common stock issued in July 2015 ("2015 Warrants") the right to extend the term of the 2015 Warrants for a period of two years, subject to an increase in the Exercise Price (as defined therein) to $0.06 per share, providing that such warrant holders invested a minimum $100,000 in the 2020 Note private offering. As a result, a portion of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period until February 2022 of 2015 Warrants representing the right to acquire 6,385,000 shares of common stock. Mr. Selzer holds 880,000 2015 Warrants, which were also extended as a result of his investment.
Aggregate principal amount		$ 1,500,000
Notes Mature February 28,2022 [Member]
Notes payable percentage		150.00%
Subsequent Event [Member]
Subsequent event, description	The Company, entered into Securities Purchase Agreements with several accredited investors (the "2020 Note Investors") providing for the sale by the Company to the 2020 Note Investors of 15% Senior Secured Convertible Notes in the aggregate amount of $1,510,000 (the "2020 Notes"). Philip D. Beck, Chief Executive Officer and Chairman of the Board, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000 payable by a deduction from his salary. Theodore Stern, a director of the Company, invested $50,000 in consideration of a 2020 Note in the principal amount of $50,000. Herbert Selzer invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Mr. Selzer provided $50,000 on the closing date and has agreed to provide the balance of the funding on or prior to April 30, 2020.