0001213900-20-029565 | POS AM | XBRL Viewer

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Ipsidy Inc.
Entity Central Index Key	0001534154
Amendment Flag	true
Amendment Description	This Post-Effective Amendment No. 1 (this “Post-Effective Amendment”) to the registration statement on Form S-1 (File No. 333- 232236) (the “Registration Statement”), is being filed pursuant to Section 10(a)(3) of the Securities Act of 1933, as amended (the “Securities Act”) to update the Registration Statement by, among other things, including (i) the audited consolidated financial statements of Ipsidy, Inc. (the “Registrant”) as at and for the year ended December 31, 2019 which were filed with the Securities and Exchange Commission (the “Commission”) on March 30, 2020 as part of the Registrant’s Annual Report on Form 10-K, (ii) the unaudited condensed consolidated financial statements as at and for the six month period ended June 30, 2020, and (iii) updates certain other information in the Registration Statement.The information included in this filing amends the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the filing of the Registration Statement. This registration statement contains a form of prospectus, as set forth below. Public Offering Prospectus. A prospectus to be used for the direct public offering by the registrant of 100,000,000 shares of common stock at an offering price of $0.15 per share for aggregate gross proceeds of up to $15,000,000. While the Company does not have any agreements in place to sell the shares with the involvement of underwriters or broker-dealers, the Company may engage such underwriters or broker-dealers in the future.
Document Type	POS AM
Document Period End Date	Jun. 30, 2020
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Incorporation, State or Country Code	DE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 814,950	$ 567,081	$ 4,972,331
Accounts receivable, net	158,635	125,859	130,875
Stock subscription receivable	965,033
Current portion of net investment in direct financing lease	68,909	65,333	58,727
Inventory, net	162,435	173,575	133,541
Other current assets	379,139	753,505	471,834
Total current assets	2,549,101	1,685,353	5,767,308
Property and equipment, net	113,815	161,820	204,000
Other assets	241,600	383,066	1,566,177
Intangible assets, net	5,272,041	5,593,612	3,310,184
Goodwill	4,183,232	5,218,861	6,736,043
Net investment in direct financing lease, net of current portion	459,331	494,703	560,036
Total assets	12,819,120	13,537,415	18,143,748
Current Liabilities:
Accounts payable and accrued expenses	2,655,107	2,215,912	1,302,226
Notes payable, current portion	5,635	5,341
Capital lease obligation, current portion	36,958	34,816	30,898
Deferred revenue	454,086	425,276	236,270
Total current liabilities	3,151,786	2,681,345	1,569,394
Long-term liabilities:
Notes payable, net of discounts and current portion	490,392	1,970,937	1,853,648
Convertible debt, net of discounts	5,563,538	428,000
Capital lease obligation, net of current portion	30,764	49,794	84,610
Operating lease liabilities	92,503	131,568	45,000
Total liabilities	9,328,983	5,261,644	3,552,652
Commitments and Contingencies (Note 12)
Stockholders' Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 546,654,196 and 518,125,454 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	54,665	51,812	47,895
Additional paid in capital	97,528,578	94,982,167	90,770,682
Accumulated deficit	(94,234,462)	(86,935,593)	(76,435,235)
Accumulated comprehensive income	141,356	177,385	207,754
Total stockholders' equity	3,490,137	8,275,771	14,591,096
Total liabilities and stockholders' equity	$ 12,819,120	$ 13,537,415	$ 18,143,748

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, issued	546,654,196	518,125,454	478,950,996
Common stock, outstanding	546,654,196	518,125,454	478,950,996

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Products and services	$ 306,692	$ 628,905	$ 1,085,630	$ 1,352,846	$ 2,488,624	$ 3,759,635
Lease income	14,427	16,056	29,278	32,493	63,421	69,358
Total revenues, net	321,119	644,961	1,114,908	1,385,339	2,552,045	3,828,993
Operating Expenses:
Cost of sales	61,798	189,261	417,521	365,724	669,523	1,256,853
General and administrative	2,389,794	2,007,038	3,872,916	4,147,869	7,892,046	10,358,186
Research and development	190,339	366,292	620,740	796,962	1,614,054	894,849
Impairment loss	163,822		1,035,629		1,671,804	148,627
Depreciation and amortization	321,987	166,908	647,331	327,696	790,367	493,697
Total operating expenses	3,127,740	2,729,499	6,594,137	5,638,251	12,637,794	13,152,212
Loss from operations	(2,806,621)	(2,084,538)	(5,479,229)	(4,252,912)	(10,085,749)	(9,323,219)
Other Income (Expense):
Interest expense	(310,153)	(93,260)	(489,203)	(180,150)	(375,598)	(757,801)
Other (expense) income, net	(342,082)	6,271	(1,317,971)	12,497	23,920	83,649
Other expense, net	(652,235)	(86,989)	(1,807,174)	(167,653)	(351,678)	(674,152)
Loss before income taxes	(3,458,856)	(2,171,527)	(7,286,403)	(4,420,565)	(10,437,427)	(9,997,371)
Income tax expense	(3,592)	(4,264)	(12,466)	(17,965)	(62,931)	(30,242)
Net loss	$ (3,462,448)	$ (2,175,791)	$ (7,298,869)	$ (4,438,530)	$ (10,500,358)	$ (10,027,613)
Net loss per share - Basic and Diluted	$ (0.01)	$ 0	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)
Weighted Average Shares Outstanding - Basic and Diluted	523,234,921	479,787,679	524,207,499	476,369,338	498,747,396	429,852,594

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Statement of Other Comprehensive Income [Abstract]
Net Loss	$ (3,462,448)	$ (2,175,791)	$ (7,298,869)	$ (4,438,530)	$ (10,500,358)	$ (10,027,613)
Foreign currency translation gain (loss)	80,235	(10,526)	(36,029)	13,702	(30,369)	(47,907)
Comprehensive loss	$ (3,382,213)	$ (2,186,317)	$ (7,334,898)	$ (4,424,828)	$ (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.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 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
Stock-based compensation (in shares)
Cashless exercise of common stock warrants	$ 350	(350)
Cashless exercise of common stock warrants (in shares)	3,498,943
Cashless exercise of common stock options	$ 163	(163)
Cashless exercise of common stock options (in shares)	1,633,443
Common stock issued for loan extension	$ 150	(150)
Common stock issued for loan extension (in shares)	1,500,000
Cancellation of shares in settlement of amounts due from prior acquisition	$ (73)	73
Cancellation of shares in settlement of amounts due from prior acquisition (in shares)	(728,448)
Net loss			(10,027,613)		(10,027,613)
Foreign currency translation				(47,097)	(47,907)
Balance, ending at Dec. 31, 2018	$ 47,895	90,770,682	(76,435,235)	207,754	$ 14,591,096
Balance, ending (in shares) at Dec. 31, 2018	478,950,996				478,950,996
Sale of common stock for cash	$ 3,876	2,828,276			$ 2,832,152
Sale of common stock for cash (in shares)	38,763,750
Common stock issued for services	$ 41	41,071			41,112
Common stock issued for services (in shares)	410,708
Stock-based compensation		787,720			787,720
Net loss			(4,438,530)		(4,438,530)
Foreign currency translation				13,702	13,702
Balance, ending at Jun. 30, 2019	$ 51,812	94,427,749	(80,873,765)	221,456	13,827,252
Balance, ending (in shares) at Jun. 30, 2019	518,125,454
Balance, beginning at Dec. 31, 2018	$ 47,895	90,770,682	(76,435,235)	207,754	$ 14,591,096
Balance, beginning (in shares) at Dec. 31, 2018	478,950,996				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
Stock-based compensation (in shares)
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				518,125,454
Balance, beginning at Mar. 31, 2019	$ 47,895	91,186,061	(78,697,974)	231,982	$ 12,767,964
Balance, beginning (in shares) at Mar. 31, 2019	478,950,996
Sale of common stock for cash	$ 3,876	2,828,276			2,832,152
Sale of common stock for cash (in shares)	38,763,750
Common stock issued for services	$ 41	41,071			41,112
Common stock issued for services (in shares)	410,708
Stock-based compensation		372,341			372,341
Net loss			(2,175,791)		(2,175,791)
Foreign currency translation				(10,526)	(10,526)
Balance, ending at Jun. 30, 2019	$ 51,812	94,427,749	(80,873,765)	221,456	13,827,252
Balance, ending (in shares) at Jun. 30, 2019	518,125,454
Balance, beginning at Dec. 31, 2019	$ 51,812	94,982,167	(86,935,593)	177,385	$ 8,275,771
Balance, beginning (in shares) at Dec. 31, 2019	518,125,454				518,125,454
Sale of common stock for cash	$ 344	199,656			$ 200,000
Sale of common stock for cash (in shares)	3,441,558
Common stock issued for services	$ 11	8,259			8,270
Common stock issued for services (in shares)	106,192
Warrant exercise	$ 2,048	1,246,935			283,950
Warrant exercise (in shares)	20,480,992
Modification of warrants issued with debt		95,223			95,223
Warrant exercise inducement		366,795			366,795
Stock-based compensation	$ 450	629,543			629,993
Stock-based compensation (in shares)	4,500,000
Net loss			(7,298,869)		(7,298,869)
Foreign currency translation				(36,029)	(36,029)
Balance, ending at Jun. 30, 2020	$ 54,665	97,528,578	(94,234,462)	141,356	$ 3,490,137
Balance, ending (in shares) at Jun. 30, 2020	546,654,196				546,654,196
Balance, beginning at Mar. 31, 2020	$ 52,273	95,254,309	(90,772,014)	61,121	$ 4,595,689
Balance, beginning (in shares) at Mar. 31, 2020	522,731,646
Sale of common stock for cash	$ 344	199,656			200,000
Sale of common stock for cash (in shares)	3,441,558
Warrant exercise	$ 2,048	1,246,935			1,248,983
Warrant exercise (in shares)	20,480,992
Warrant exercise inducement		366,795			366,795
Stock-based compensation		460,883			460,883
Net loss			(3,462,448)		(3,462,448)
Foreign currency translation				80,235	80,235
Balance, ending at Jun. 30, 2020	$ 54,665	$ 97,528,578	$ (94,234,462)	$ 141,356	$ 3,490,137
Balance, ending (in shares) at Jun. 30, 2020	546,654,196				546,654,196

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,298,869)	$ (4,438,530)	$ (10,500,358)	$ (10,027,613)
Adjustments to reconcile net loss with cash used in operations:
Depreciation and amortization expense	600,978	327,696	790,367	493,697
Stock-based compensation	629,993	787,720	1,246,019	2,429,959
Extinguishment of note payable	985,481
Stock issued for services			41,071	343,019
Inventory reserve				348,302
Amortization of debt discount and debt issuance costs, net	214,668	54,882	109,764	477,928
Common stock issued for services		41,112
Warrant exercise inducement expense	366,795
Impairment loss/write-off of assets	1,059,495		1,671,804	148,627
Changes in operating assets and liabilities:
Accounts receivable	(23,217)	(63,869)	(5,770)	20,762
Net investment in direct financing lease	31,796	28,581	58,727	52,790
Inventory	21,984	(60,818)	(50,647)	(1,519)
Other current assets	374,366	155,035	(18,834)	(265,624)
Accounts payable and accrued expenses	1,056,433	324,076	413,773	(84,512)
Deferred revenue	28,810	173,518	189,006	113,759
Net cash flows from operating activities	(1,951,287)	(2,670,597)	(6,055,078)	(5,950,425)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,394)	(14,902)	(27,364)	(59,091)
Decrease in other assets	13,462
Investment in other assets including work in process	(124,870)	(940,068)	(1,604,152)	(1,319,932)
Net cash flows from investing activities	(113,802)	(954,970)	(1,631,516)	(1,379,023)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible note payable	1,510,000		408,000
Payment of debt issuance costs	(104,800)
Proceeds from sale of common stock offering, net of offering costs	200,000	2,832,152	2,928,312	9,610,793
Proceeds from the exercise of warrants	283,950
Payment of debt and equity issuance costs				(658,864)
Proceeds from the payroll protection loan	485,760
Principal payments on capital lease obligations and notes payable	(19,487)	(14,987)	(31,188)	(27,421)
Principal payments on notes payable				(1,000,000)
Net cash flows from financing activities	2,355,423	2,817,165	3,305,124	7,924,508
Effect of foreign currencies exchange on cash	(42,465)	20,291	(23,780)	(36,551)
Net change in Cash	247,869	(788,111)	(4,405,250)	558,509
Cash, Beginning of Period	567,081	4,972,331	4,972,331	4,413,822
Cash, End of Period	814,950	4,184,220	567,081	4,972,331
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	5,296	4,223	10,771	173,426
Cash paid for income taxes	12,466	13,701	62,931	17,304
Non-cash Investing and Financing Activities:
Modification of warrants issued with convertible debt	95,223
Exchange of notes payable and accrued interest for convertible notes payable	2,662,000
Warrant exercise with a subscription receivable	965,033
Settlement of accounts payable with common stock	8,270
Purchase of vehicle with note payable		16,510	16,510
Recognition of lease right to use assets and labilities		514,473	514,473
Reclassification of software development to intangible costs	$ 252,875		$ 3,111,668	$ 679,882

BASIS OF PRESENTATION

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1 – BASIS OF PRESENTATION

In the opinion of Management, the accompanying unaudited condensed consolidated financial statements are prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which we considered as necessary for a fair presentation of the results for the periods presented. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for future periods or the full year.

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

Going Concern

As of June 30, 2020, the Company had an accumulated deficit of approximately $94.2 million. For the six months ended June 30, 2020 the Company earned revenue of approximately $1.1 million and incurred a loss from operations of approximately $5.5 million.

The reports of our independent registered public accounting firm on our consolidated financial statements for the years ended December 31, 2019 and 2018 contained an explanatory paragraph regarding our ability to continue as a going concern based upon our net losses.

These unaudited condensed 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 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.

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"). 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 May 2020, the Company received a loan of approximately $485,000 under the Paycheck Protection Program of the U.S. Small Business Association related to its U.S. operations. The Company anticipates subject to approval by the Small Business Administration, if certain requirements are met the loan proceeds may be forgiven. Any amounts not forgiven will be required to be repaid.

In June 2020, the Company entered into Subscription Agreements with two accredited investors (the "June 2020 Accredited Investors") pursuant to which the June 2020 Accredited Investors purchased 3,441,558 shares of common stock at an average price of $0.06 cents per share for $200,000.

Additionally, on June 30, 2020, the Company entered into and consummated private transactions pursuant to which a portion of the Company's warrants exercisable at various prices were exercised at an average exercise price of $0.06 per share for approximately $1,249,000. The Company received cash proceeds of $283,950 and a stock subscription receivable for $965,033 which was received in full subsequent to June 30, 2020.

There is no assurance that the Company will ever be profitable or be able to secure funding or generate sufficient revenues to sustain operations. As such, there is substantial doubt about the Company's ability to continue as a going concern. These unaudited condensed 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.

Covid-19

A novel strain of coronavirus ("Covid-19") emerged globally in December 2019 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. The Company's day-to-day operations beginning March 2020 have been impacted differently depending on geographic location and services that are being performed. The Cards Plus business located in South Africa did not have any operations in April 2020 and has had limitations on its operations starting in May 2020, as the Company is following the guidance and requirements of the South African government. Our operations in the United States and Colombia have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings.

That said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and agreements. However, the level of inquiries about our services has increased during the last three months, as our products are designed to serve an increasingly mobile economy and workforce.

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 six months ended June 30, 2020 and 2019 because their effect was antidilutive:

Security	2020		2019
Stock Options		159,744,061		106,600,006
Warrants		29,130,069		47,453,227
Total		188,874,130		154,053,233

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 June 30, 2020 consist solely of the cards inventory. As of December 31, 2019, inventory consisted of kiosks that were not placed into service and were held for sale and cards inventory. 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, the Company had an inventory valuation allowance of approximately $236,000 to reflect net realizable value of the kiosks that are being held for sale and the Company believed no valuation allowance was necessary regarding the cards inventory. As of June 30, 2020, the Company did not believe a valuation allowance was necessary for the cards inventory.

Revenue Recognition

Below is the Company's revenue recognition policy determined by revenue stream for its significant revenue generating activities during the period ended June 30, 2020.

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

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

Identity Solutions Software – The Company recognizes revenue based on the identified performance obligations over the performance period for fixed consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction volumes or on a monthly flat fee rate. The Company had a deferred revenue contract liability of approximately $454,000 and $425,000 as of June 30, 2020 and December 31, 2019 for certain revenue that will be earned in future periods. The majority of the $425,000 of deferred revenue contract liability as of December 31, 2019 was earned in the first three months of 2020. The $454,000 of deferred revenue contract liability as of June 30, 2020 will be earned over the ensuing four quarters. 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.

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

Additionally, the Company capitalizes 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 sales 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 general and administrative expense in the Company's Consolidated Statements of Operations.

As of June 30, 2020, the Company had deferred contract costs, represented by contract cost assets of approximately $3,750 which are included in other currents assets for certain costs incurred for the future delivery of election support services. The performance obligation will be met over the next year and the costs will be expensed as the associated revenue is recognized as the Company performances its obligations.

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.

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.

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.

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

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 June 30, 2020 and December 31, 2019:

	2020			2019
Property and equipment	$	284,710		$	282,316
Equipment under capital lease (see Note 10)		156,867			156,867
		441,577			439,183
Less: accumulated depreciation		(327,762	)		(277,363	)
Property and equipment, net	$	113,815		$	161,820

Depreciation expense totaled $26,533 and $45,203 for the six months ended June 30, 2020 and 2019, respectively.

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Other Assets [Abstract]

OTHER ASSETS

NOTE 3 – OTHER ASSETS

Other assets consisted of the following at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Software and development costs	$	-	$	128,005
Operating lease right of use assets		89,210		171,141
Other		152,390		83,920
	$	241,600	$	383,066

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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

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 acquired and developed software and intellectual property acquired from MultiPay and FIN and are amortized over their estimated useful lives as indicated below. The following is a summary of activity related to intangible assets for the three months ended June 30, 2020:

				Acquired and
	Customer			Developed			Intellectual			Patents
	Relationships			Software			Property			Pending		Total

Useful Lives		10 Years			5 Years			10 Years			N/A

Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	108,877	$	5,593,612
Additions		-			252,875			-			4,925		257,800
Amortization		(79,358	)		(425,821	)		(74,192	)		-		(579,371	)
Carrying Value at June 30, 2020	$	890,661		$	3,478,978		$	788,600		$	113,802	$	5,272,041

The following is a summary of intangible assets as of June 30, 2020:

				Acquired and
	Customer			Developed			Intellectual			Patents
	Relationships			Software			Property			Pending		Total
Cost	$	1,587,159		$	4,324,425		$	1,498,364		$	113,802	$	7,537,837
Accumulated amortization		(696,498	)		(845,446	)		(709,764	)		-		(2,265,796	)
Carrying Value at June 30, 2020	$	890,661		$	3,478,980		$	788,600		$	113,802	$	5,272,041

Amortization expense totaled $579,371 and $282,493 for the six months ended June 30, 2020 and 2019, respectively.

Future expected amortization of intangible assets is as follows:

Fiscal Year Ending December 31,
Remainder of 2020	$	604,658
2021		1,209,317
2022		1,115,983
2023		1,064,994
2024		841,492
Thereafter		435,597
	$	5,272,041

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

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 June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Trade payables	$	663,254	$	621,292
Accrued interest		241,072		641,834
Accrued payroll and related obligations		1,062,246		386,165
Current portion of operating lease liabilities		145,259		242,650
Other		543,276		323,971
Total	$	2,655,107	$	2,215,912

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Debt Disclosure [Abstract]

NOTES PAYABLE, NET

NOTE 6 – NOTES PAYABLE, NET

The following is a summary of notes payable as of June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019

Senior Unsecured Note	$	-	$	2,000,000
Paycheck Protection Program		485,760		-
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		10,267		12,866
Total Principal Outstanding	$	496,027	$	2,012,866
Unamortized Deferred Debt Discount		-		(26,722	)
Unamortized Deferred Debt Issuance Costs		-		(9,866	)
Notes Payable, Net	$	496,027	$	1,976,278
Notes Payable, current portion, net of discounts and current portion	$	5,635	$	5,341
Notes Payable, net of discounts and current portion		490,392		1,970,937
	$	496,027	$	1,976,278

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. The Note was amended on February 14, 2020 to conform to the terms of the 2020 Convertible Notes Payable offering.

The Company and the Theodore Stern Revocable Trust, the ("Stern Trust") entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 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 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 Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes detailed in Note 7. The Company accounted for the Restated Stern Note as an extinguishment of the Note and recorded a charge of $985,000 included in Other expenses in accompanying condensed consolidated statements of operations.

Paycheck Protection Program Loan - In May 2020, the Company received a loan of $485,760 under the Paycheck Protection Program of the U.S. Small Business Association related to its U.S. Operations. The Company anticipates subject to approval by the Small Business Administration, if certain requirements are met the loan proceeds may be forgiven. Any amounts not forgiven will be required to be repaid. The loan bears interest at an annual rate 1% per annum and matures on May 5, 2022.

The following is a roll-forward of the Company's notes payable and related discounts for the six months ended June 30, 2020:

	Principal Balance			Debt Discounts			Debt Issuance Costs			Total
Balance at December 31, 2019	$	2,012,866		$	(9,866	)	$	(26,722	)	$	1,976,278
Proceeds		485,760			--						485,760
Payments		(2,599	)		-			-			(2,599	)
Conversion of note payable to convertible notes payable		(2,000,000	)		-			-			(2,000,000	)
Amortization		-			9,866			26,722			36,588
Balance at June 30, 2020	$	496,027		$	-		$	-		$	496,027

See Note 7 with the respect to the conversion of the $2,000,000 Senior Unsecured Note.

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

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 were to mature on November 30, 2021 and were 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 any 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 a conversion price of $0.08 per share. If the holders of the 8% Notes owning outstanding 8.0% 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.

In February 2020, the Company and the holders of the 8% Notes entered into an amendment agreement pursuant to which 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, that the maturity shall be extended to the same maturity date as the 2020 Notes, namely February 28, 2022 and the 8% Notes became a secured obligation of the Company.

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 paid 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, a director of the Company 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 provided the balance of the funding in April 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 or paid at maturity 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 number 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.

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 ("Security Agreement"), the holders of the 8% Notes and 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.

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 two years for the 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. The fair market value of the modification of warrants extended was approximately $95,000. Vista Associates, L.P. ("Vista") of which, Mr. Selzer, a director of the Company is the General Partner, held 2015 Warrants to acquire 880,000 shares of common stock, which were also extended as a result of his investment and in June 2020, Vista exercised its 2015 Warrants and converted into 880,000 shares of common stock.

The following is a summary of the convertible notes payable outstanding at June 30, 2020:

8% convertible notes payable issued December 2019	$	428,000
15% convertible notes payable issued February 2020		5,265,000
10% convertible notes payable issued February 2020		662,000
Unamortized discount on convertible notes		(705,911	)
Unamortized debt issuance costs		(85,551	)
	$	5,563,538

Future maturities of convertible notes payable are as follows:

2020	$	-
2021		-
2022		6,355,000
	$	6,355,000

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"

RELATED PARTY TRANSACTIONS

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

Appointment of Executive Officers

Mr. Phillip Kumnick and Mr. Philip Broenniman, two of the Company's Director's became employed by the Company as Chief Executive Officer and President and Chief Operating Officer effective May 22, 2020.

Mr. Kumnick will earn an initial base salary of $250,000 per annum subject to review after one year. Mr. Kumnick was granted options to acquire 33,333,334 shares of common stock of which 20% vest at grant and the balance vest subject to performance conditions. Mr. Broenniman will earn an initial base salary of $175,000 per annum subject to review after one year. Mr. Broenniman was granted options to acquire 16,666,666 shares of common stock of which 20% vest at grant and the balance vest subject to performance conditions.

Issuance of Common Stock

During the six months ended June 30, 2020, the Company granted 1,500,000 shares of Restricted Common Stock to each of Phillip Kumnick and Philip Broenniman, new members of our Board of Directors, in connection with their compensation for service as Board Members. The restricted stock vests upon the achievement of certain performance criteria. The performance criteria have not been met as of June 30, 2020, but as the Company believes it is probable that these performance obligations will be met, the grant date fair value of the restricted stock will be ratably recognized over the expected service period.

Warrant Exercises

On June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company's warrants exercisable at per share price of $0.10 (the "$0.10 Warrants") were exercised for cash at an exercise price of $0.07 per share. In addition, the holders that exercised the $0.10 Warrants received a warrant exercisable for two years to acquire one share of common stock at an exercise price of $0.15 per share (the $0.15 Warrants") for every four $0.10 Warrants exercised. Mr. Theodore Stern, a director of the Company, participated in the private transaction resulting in the issuance of 1,000,000 shares of common stock and 250,000 $0.15 Warrants in consideration of $70,000; and Varana Capital Focused, LP ("VCFLP"), participated in the private transaction resulting in the issuance of 3,716,667 shares of common stock and 929,167 $0.15 Warrants, in consideration of $260,167. Mr. Philip Broenniman, a director, the President and COO of the Company is the investment manager of VCFLP.

On June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company's warrants exercisable at per share price of $0.06 (the "$0.06 Warrants") were exercised. In addition, the holders that exercised the $0.06 Warrants also received a $0.15 Warrant for every two $0.06 Warrants exercised. Vista Associates, L.P., ("Vista") of which, Mr. Herbert Selzer a director of the Company, is the General Partner, participated in the private transaction resulting in the issuance of 880,000 shares of common stock and 440,000 $0.15 Warrants, in consideration of $52,800.

Sale of Common Stock

On June 30, 2020, the Company also entered into a Subscription Agreement with VCFLP pursuant to which VCFLP purchased 714,285 shares of common stock in consideration of $50,000.

Convertible Notes Payable

Theodore Stern and Philip Beck, members of the board of directors of the Company, invested $50,000 each in consideration of the 2020 Notes. Another director, Herbert Selzer invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Vista held 880,000 2015 Warrants, which were also extended as a result of Mr. Selzer's investment and as noted above were exercised for cash on June 30, 2020. See Note 7

Further, the Company and the Stern Trust entered 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 subject to the same Security Agreement 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 Restated Stern Note includes a 50% repayment premium. Mr. Stern, the Trustee of the Stern Trust also entered into the Security Agreement as one of the joint collateral agents.

Other

In connection with the offering of the 2020 Notes, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer ("Network 1"), a cash fee of approximately $104,800. A former member of the Company's Board of Director's maintains a partnership with a principal of Network 1.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $5,000 (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, a member of the Board of Director's and his family. During each of the six months ended June 30, 2020 and 2019, the Company paid rent of $30,000 and $44,450, respectively.

On May 22, 2020, the Company and Mr. Beck entered into a separation letter agreement, which provided for payment to Mr. Beck of one year's severance in the amount of $350,000 as well as certain employee benefits, payable in accordance with the terms of Mr. Beck's Retention Agreement. Mr. Beck's severance is expected to be paid over a one-year period. Furthermore, the company will start recording the expense associated with Mr. Beck's restricted stock agreement dated September 29, 2017. In connection with the separation letter agreement, the Company exchanged the September 29, 2017 Restricted Stock Agreement to substantially modify the vesting provisions of the previously issued 15,000,000 shares of restricted stock and allows a time-vesting provision whereby the restricted shares will fully vest by May 2022.

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 9 – STOCKHOLDER'S EQUITY

Common Stock

During the six months ended June 30, 2020, the Company granted 4,500,000 shares of Restricted Common Stock of which 3,000,000 shares were granted to two new members of our Board of Directors in connection with their compensation for service as Board Members and 1,500,000 to an employee in connection with his employment compensation. The shares were valued at the fair market value at the date of grant. The restricted stock vests upon the achievement of certain performance criteria.

During the six months ended June 30, 2020, the Company issued approximately 106,000 shares of common stock to a third-party provider of services in lieu of cash compensation.

In June 2020, the Company entered into Subscription Agreements with two accredited investors (the "June 2020 Accredited Investors") pursuant to which the June 2020 Accredited Investors agreed to purchase 3,441,558 shares of common stock for $200,000.

On June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company's $0.10 Warrants were exercised for cash at an exercise price of $0.07 per share. In addition, the holders that exercised the $0.10 Warrants received a $0.15 Warrant for every four $0.10 Warrants exercised. As a result, the Company issued 10,008,333 shares of common stock and 2,502,085 $0.15 Warrants in consideration of $700,583.

In June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company's $0.05 Warrants were exercised for cash. In addition, the holders that exercised the $0.05 Warrants received a $0.15 Warrant for every two $0.05 Warrants exercised. As a result, the Company issued 4,632,000 shares of common stock and 2,316,000 $0.15 Warrants, in consideration of $231,600. Separately, certain holders of the $0.05 Warrants to acquire 1,770,000 shares of common stock exercised on a cashless basis resulting in the issuance of 560,659 shares of common stock.

In June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company's $0.06 Warrants were exercised. In addition, the holders that exercised the $0.06 Warrants also received $0.15 Warrant for every two $0.06 Warrants exercised. As a result, the Company issued 5,280,000 shares of common stock and 2,640,000 $0.15 Warrants in consideration of $316,800.

The June 2020 subscriptions and warrant exercise transactions resulted in the issuance of approximately 23.9 million shares of common stock for approximately $1.45 million, including a stock subscription receivable of approximately $0.97 million which was collected in full subsequent to June 30, 2020.

The Company recorded a charge of approximately $367,000 in connection with an inducement to the warrant holders who exercised their outstanding warrants.

Warrants

The following is a summary of the Company's warrant activity for the six months ended June 30, 2020:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2019		47,453,227		$	0.08		1.4 Years
Granted		7,458,085			0.15		2.0 Years
Exercised/Cancelled		(25,781,243	)		0.06		0.8 Years
Outstanding at June 30, 2020		29,130,069		$	0.12		1.6 Years

During the six months ended June 30, 2020, certain of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period by two years, subject to an increase in the Exercise Price from $0.05 per share (as defined therein) to $0.06 per share of 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. As noted above a portion of the 2015 Warrants (or $0.06 Warrants) were exercised for cash on June 30, 2020. Vista of which Mr. Selzer, a director of the Company, is the General Partner held 880,000 2015 Warrants, which were also extended as a result of his investment and were exercised for cash on June 30, 2020. The fair market value of the modification of warrants extended was approximately $95,000.

Stock Options

During the six months ended June 30, 2020, the Company determined the grant date fair value of the options granted using the Black Scholes Method. The following assumptions were used in the six months ended June 30, 2020:

Expected Volatility – 68-75%

Expected Term – 5.0 Years

Risk Free Rate – 0.30- 0.34%

Dividend Rate – 0.00%

Activity related to stock options for the six months ended June 30, 2020 is summarized as follows:

				Weighted Average		Weighted Average		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs.)		Value
Outstanding as of December 31, 2019		109,400,006		$	0.20		6.5	$	280,000
Granted		51,044,054			0.07		10.0		200,000
Forfeitures		(699,999	)		0.23		-		-
Outstanding as of June 30, 2020		159,744,061			0.19		7.6	$	104,650
Exercisable as of June 30, 2020		113,750,727		$	0.15		6.8	$	104,650

The following table summarizes stock option information as of June 30, 2020:

Exercise Price		Outstanding		Weighted Avg. Life		Exercisable
$	0.0001		3,500,000		6.00		3,500,000
$	0.05		35,700,006		6.85		31,950,006
$	0.06		1,044,054		9.60		1,044,054
$	0.07		50,000,000		9.90		10,000,000
$	0.10		27,200,000		6.75		27,200,000
$	0.119		400,001		9.22		200,000
$	0.124		600,000		8.75		390,000
$	0.130		250,000		7.80		166,667
$	0.15		2,800,000		5.85		2,800,000
$	0.22		2,583,333		8.05		1,500,000
$	0.250		2,500,000		7.85		1,833,333
$	0.260		166,667		8.30		166,667
$	0.290		1,000,000		7.30		1,000,000
$	0.400		1,000,000		6.17		1,000,000
$	0.450		31,000,000		5.85		31,000,000
			159,744,061		7.63		113,750,727

See related party information with respect to the grant of stock options to Messrs. Kumnick and Broenniman.

During the six months ended June 30, 2020, the Company recognized approximately $561,000 of stock option based compensation expense related to options of which non-employees' expense was approximately $13,000. As of June 30, 2020, there was approximately $448,000 of unrecognized compensation costs related to stock options outstanding of which approximately $13,000 is related to non-employees and will be expensed through 2022.

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases [Abstract]

DIRECT FINANCING LEASE

NOTE 10 – DIRECT FINANCING LEASE

In September 2015, 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 began in May 2016 when the kiosk was installed and operational and when the lease commenced. The term of the rental contract is ten years at an approximate monthly rental of $11,900. The lease 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. The lease was accounted for as a direct financing lease.

The Company has recorded the transaction as it 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 per month and initial direct costs are not considered significant. The transaction resulted in incremental revenue in the six months ended June 30, 2020 of approximately $30,000.

The equipment is subject to direct lease 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 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
Remainder 2020	$	61,074
2021		122,148
2022		122,148
2023		122,148
2024		122,148
Thereafter		162,864
Sub-total		712,530
Less deferred revenue		(184,290	)
Net investment in lease	$	528,240

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

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases [Abstract]

LEASE OBLIGATION PAYABLE

NOTE 11 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a finance 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 June 30, 2020 is $107,152. The following is a schedule showing the future minimum lease payments under finance lease by year and the present value of the minimum lease payments as of June 30, 2020. The interest rate related to the lease obligation is 12% and the maturity date is March 2022.

Year ending December 31
Remainder of 2020	$	21,548
2021		43,096
2022		10,774
Total minimum lease payments		75,418
Less: Amount representing interest		(7,696	)
Present value of minimum lease payments	$	67,722

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

COMMITMENTS AND CONTINGENCIES

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12 – 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 the outcome of such proceedings will have a material adverse effect on the financial condition or results of operations of the Company.

Leases

For the six months ended June 30, 2020, lease expense was approximately $165,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of June 30, 2020 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	190,268

Operating lease ROU assets – included in other Assets		89,210

Total operating lease assets	$	279,478

Liabilities:

Current portion of ROU liabilities – included in accounts payable and accrued expenses	$	145,259

Long-term portion of ROU liabilities – included in other liabilities		92,503

Total operating lease liabilities	$	237,762

The weighted average lease term is 1.8 years and weighted average discount rate used in the calculations were 13.55%.

The following table presents the maturity of the Company's operating lease liabilities as of June 30, 2020:

Remainder of 2020	$	132,017
2021		96,607
2022		49,716
Total operating lease payments		278,340
Less: imputed interest		(40,578	)
Total operating lease liabilities	$	237,762

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 terminated its lease and will pay its final obligations under the lease by August 2020.

In October 2018, the Company entered into an office lease in Alpharetta, Ga. for approximately $3,800 per month.

The Company did not renew its lease at the end of the lease term in March 2020.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $5,000. 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, a member of the Board of Directors.

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

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.

On May 22, 2020, the Company and Mr. Beck entered into a separation letter agreement, which provided payment to the Mr. Beck of one year's severance in the amount of $350,000 as well as certain employee benefits, payable in accordance with the terms of Mr. Beck's Retention Agreement. The amounts recorded in connection with the aforementioned agreement are accrued in accrued payroll and related obligations.

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.

IMPAIRMENT LOSS

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

IMPAIRMENT LOSS

NOTE 13 – IMPAIRMENT LOSS

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. As a result of the current pandemic and its potential impact on future results, the Company updated its reporting unit projections, and it indicated a goodwill impairment at Cards Plus as the carrying value may not be recovered as revenue assumptions and related revenue were revised downward. 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 six months ended June 30, 2020 was approximately $1,035,000.

SEGMENT INFORMATION

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

General information

The segment and geographic information provided in the table below is being reported consistent with the Company's method of internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is available and which is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The CODM regularly reviews net revenue and gross profit by geographic regions. The Company's 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 revenue is earned in South America which are the three geographic regions of the Company. We have included the lease income in payment processing as the leases are related to unattended ticketing 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 $8.9 million, $0.3 million and $0.3 million.

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.

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Net Revenues:
North America	$	135,698		$	146,583		$	269,252		$	373,624
South America		72,133			120,613			185,757			245,941
Africa		113,288			377,765			659,899			765,774
		321,119			644,961			1,114,908			1,385,339

Identity Management		248,986			524,348			929,151			1,139,398
Payment Processing		72,133			120,613			185,757			245,941
		321,119			644,961			1,114,908			1,385,339

Loss From Operations
North America		(670,183	)		(681,690	)		(1,076,575	)		(1,419,652	)
South America		(1,803,784	)		(1,220,869	)		(3,015,936	)		(2,477,821	)
Africa		(332,654	)		(181,979	)		(1,386,718	)		(355,439	)
		(2,806,621	)		(2,084,538	)		(5,479,229	)		(4,252,912	)

Identity Management		(1,002,837	)		(863,669	)		(2,463,293	)		(1,775,091	)
Payment Processing		(1,803,784	)		(1,220,869	)		(3,015,936	)		(2,477,821	)
		(2,806,621	)		(2,084,538	)		(5,479,229	)		(4,252,912	)

Interest Expense		(310,153	)		(93,260	)		(489,203	)		(180,150	)
Other income/(expense)		(342,082	)		6,271			(1,317,971	)		12,497

Loss before income taxes		(3,458,856	)		(2,171,527	)		(7,286,403	)		(4,420,565	)

Income tax expense		(3,592	)		(4,264	)		(12,466	)		(17,965	)

Net loss	$	(3,462,448	)	$	(2,175,791	)	$	(7,298,869	)	$	(4,438,530	)

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.

	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	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

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.

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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

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.

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.

BASIS OF PRESENTATION (Policies)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Going Concern

Going Concern

Covid-19

Going Concern

Net Loss per Common Share

Net Loss per Common Share

Security	2020		2019
Stock Options		159,744,061		106,600,006
Warrants		29,130,069		47,453,227
Total		188,874,130		154,053,233

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

Inventories

Inventories

Inventories

Inventories of kiosks held by IDGS S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value. The kiosks provide electronic ticketing for transit systems. Inventory of plastic/ID cards, digital printing material, which are held by Cards Plus Pty Ltd., are at the lower of cost (using the average method) or market. The Plastic/ID cards and digital printing material are used to provide plastic loyal ID and other types of cards. Inventories at December 31, 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.

Basis of Consolidation

Basis of Consolidation

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Below is the Company's revenue recognition policy determined by revenue stream for its significant revenue generating activities during the period ended June 30, 2020.

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

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

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.

Revenue Recognition

Accounts Receivable

Accounts Receivable

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

Stock-based compensation

Stock-based compensation

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

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.

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

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.

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.

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.

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.

BASIS OF PRESENTATION (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of potentially dilutive securities

Security	2020		2019
Stock Options		159,744,061		106,600,006
Warrants		29,130,069		47,453,227
Total		188,874,130		154,053,233

	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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

	2020			2019
Property and equipment	$	284,710		$	282,316
Equipment under capital lease (see Note 10)		156,867			156,867
		441,577			439,183
Less: accumulated depreciation		(327,762	)		(277,363	)
Property and equipment, net	$	113,815		$	161,820

	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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Other Assets [Abstract]

Schedule of other assets

	June 30, 2020		December 31, 2019
Software and development costs	$	-	$	128,005
Operating lease right of use assets		89,210		171,141
Other		152,390		83,920
	$	241,600	$	383,066

	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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets, net (other than goodwill)

				Acquired and
	Customer			Developed			Intellectual			Patents
	Relationships			Software			Property			Pending		Total

Useful Lives		10 Years			5 Years			10 Years			N/A

Carrying Value at December 31, 2019	$	970,019		$	3,651,924		$	862,792		$	108,877	$	5,593,612
Additions		-			252,875			-			4,925		257,800
Amortization		(79,358	)		(425,821	)		(74,192	)		-		(579,371	)
Carrying Value at June 30, 2020	$	890,661		$	3,478,978		$	788,600		$	113,802	$	5,272,041

The following is a summary of intangible assets as of June 30, 2020:

				Acquired and
	Customer			Developed			Intellectual			Patents
	Relationships			Software			Property			Pending		Total
Cost	$	1,587,159		$	4,324,425		$	1,498,364		$	113,802	$	7,537,837
Accumulated amortization		(696,498	)		(845,446	)		(709,764	)		-		(2,265,796	)
Carrying Value at June 30, 2020	$	890,661		$	3,478,980		$	788,600		$	113,802	$	5,272,041

	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

Fiscal Year Ending December 31,
Remainder of 2020	$	604,658
2021		1,209,317
2022		1,115,983
2023		1,064,994
2024		841,492
Thereafter		435,597
	$	5,272,041

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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	June 30, 2020		December 31, 2019
Trade payables	$	663,254	$	621,292
Accrued interest		241,072		641,834
Accrued payroll and related obligations		1,062,246		386,165
Current portion of operating lease liabilities		145,259		242,650
Other		543,276		323,971
Total	$	2,655,107	$	2,215,912

	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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of notes payable

	June 30, 2020		December 31, 2019

Senior Unsecured Note	$	-	$	2,000,000
Paycheck Protection Program		485,760		-
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		10,267		12,866
Total Principal Outstanding	$	496,027	$	2,012,866
Unamortized Deferred Debt Discount		-		(26,722	)
Unamortized Deferred Debt Issuance Costs		-		(9,866	)
Notes Payable, Net	$	496,027	$	1,976,278
Notes Payable, current portion, net of discounts and current portion	$	5,635	$	5,341
Notes Payable, net of discounts and current portion		490,392		1,970,937
	$	496,027	$	1,976,278

	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 Balance			Debt Discounts			Debt Issuance Costs			Total
Balance at December 31, 2019	$	2,012,866		$	(9,866	)	$	(26,722	)	$	1,976,278
Proceeds		485,760			--						485,760
Payments		(2,599	)		-			-			(2,599	)
Conversion of note payable to convertible notes payable		(2,000,000	)		-			-			(2,000,000	)
Amortization		-			9,866			26,722			36,588
Balance at June 30, 2020	$	496,027		$	-		$	-		$	496,027

	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

CONVERTIBLE NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of rollforward of the convertible notes payable outstanding

8% convertible notes payable issued December 2019	$	428,000
15% convertible notes payable issued February 2020		5,265,000
10% convertible notes payable issued February 2020		662,000
Unamortized discount on convertible notes		(705,911	)
Unamortized debt issuance costs		(85,551	)
	$	5,563,538

Schedule of future maturities of convertible debt

2020	$	-
2021		-
2022		6,355,000
	$	6,355,000

STOCKHOLDER'S EQUITY (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Equity [Abstract]

Schedule of granted warrants

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2019		47,453,227		$	0.08		1.4 Years
Granted		7,458,085			0.15		2.0 Years
Exercised/Cancelled		(25,781,243	)		0.06		0.8 Years
Outstanding at June 30, 2020		29,130,069		$	0.12		1.6 Years

	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

Expected Volatility – 68-75%

Expected Term – 5.0 Years

Risk Free Rate – 0.30- 0.34%

Dividend Rate – 0.00%

	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

				Weighted Average		Weighted Average		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs.)		Value
Outstanding as of December 31, 2019		109,400,006		$	0.20		6.5	$	280,000
Granted		51,044,054			0.07		10.0		200,000
Forfeitures		(699,999	)		0.23		-		-
Outstanding as of June 30, 2020		159,744,061			0.19		7.6	$	104,650
Exercisable as of June 30, 2020		113,750,727		$	0.15		6.8	$	104,650

	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 Avg. Life		Exercisable
$	0.0001		3,500,000		6.00		3,500,000
$	0.05		35,700,006		6.85		31,950,006
$	0.06		1,044,054		9.60		1,044,054
$	0.07		50,000,000		9.90		10,000,000
$	0.10		27,200,000		6.75		27,200,000
$	0.119		400,001		9.22		200,000
$	0.124		600,000		8.75		390,000
$	0.130		250,000		7.80		166,667
$	0.15		2,800,000		5.85		2,800,000
$	0.22		2,583,333		8.05		1,500,000
$	0.250		2,500,000		7.85		1,833,333
$	0.260		166,667		8.30		166,667
$	0.290		1,000,000		7.30		1,000,000
$	0.400		1,000,000		6.17		1,000,000
$	0.450		31,000,000		5.85		31,000,000
			159,744,061		7.63		113,750,727

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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases [Abstract]

Schedule of future minimum lease payments to be received

Year ending December 31
Remainder 2020	$	61,074
2021		122,148
2022		122,148
2023		122,148
2024		122,148
Thereafter		162,864
Sub-total		712,530
Less deferred revenue		(184,290	)
Net investment in lease	$	528,240

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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Leases [Abstract]

Schedule of lease obligation payable

Year ending December 31
Remainder of 2020	$	21,548
2021		43,096
2022		10,774
Total minimum lease payments		75,418
Less: Amount representing interest		(7,696	)
Present value of minimum lease payments	$	67,722

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

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of related lease balance

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	190,268

Operating lease ROU assets – included in other Assets		89,210

Total operating lease assets	$	279,478

Liabilities:

Current portion of ROU liabilities – included in accounts payable and accrued expenses	$	145,259

Long-term portion of ROU liabilities – included in other liabilities		92,503

Total operating lease liabilities	$	237,762

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

Remainder of 2020	$	132,017
2021		96,607
2022		49,716
Total operating lease payments		278,340
Less: imputed interest		(40,578	)
Total operating lease liabilities	$	237,762

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)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of geographic region

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Net Revenues:
North America	$	135,698		$	146,583		$	269,252		$	373,624
South America		72,133			120,613			185,757			245,941
Africa		113,288			377,765			659,899			765,774
		321,119			644,961			1,114,908			1,385,339

Identity Management		248,986			524,348			929,151			1,139,398
Payment Processing		72,133			120,613			185,757			245,941
		321,119			644,961			1,114,908			1,385,339

Loss From Operations
North America		(670,183	)		(681,690	)		(1,076,575	)		(1,419,652	)
South America		(1,803,784	)		(1,220,869	)		(3,015,936	)		(2,477,821	)
Africa		(332,654	)		(181,979	)		(1,386,718	)		(355,439	)
		(2,806,621	)		(2,084,538	)		(5,479,229	)		(4,252,912	)

Identity Management		(1,002,837	)		(863,669	)		(2,463,293	)		(1,775,091	)
Payment Processing		(1,803,784	)		(1,220,869	)		(3,015,936	)		(2,477,821	)
		(2,806,621	)		(2,084,538	)		(5,479,229	)		(4,252,912	)

Interest Expense		(310,153	)		(93,260	)		(489,203	)		(180,150	)
Other income/(expense)		(342,082	)		6,271			(1,317,971	)		12,497

Loss before income taxes		(3,458,856	)		(2,171,527	)		(7,286,403	)		(4,420,565	)

Income tax expense		(3,592	)		(4,264	)		(12,466	)		(17,965	)

Net loss	$	(3,462,448	)	$	(2,175,791	)	$	(7,298,869	)	$	(4,438,530	)

	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	)

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

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	$	—		$	—

BASIS OF PRESENTATION (Details) - shares	6 Months Ended		12 Months Ended
BASIS OF PRESENTATION (Details) - shares	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Number of shares	188,874,130	154,053,233	156,853,233	152,454,816
Stock Options [Member]
Number of shares	159,744,061	106,600,006	109,400,006	106,253,339
Warrants [Member]
Number of shares	29,130,069	47,453,227	47,453,227	46,201,477

BASIS OF PRESENTATION (Details Narrative)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
BASIS OF PRESENTATION (Details Narrative)	Feb. 14, 2020 USD ($)	Jun. 30, 2020 USD ($) $ / shares	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) Kiosks	Dec. 31, 2018 USD ($) Kiosks	May 31, 2020 USD ($)	Jan. 02, 2019 USD ($)
Basis Of Presentation (Textual)
Cash, FDIC insured amount						$ 250,000
Convertible notes payable		$ 5,563,538		$ 5,563,538		428,000
Revenue				1,114,908		2,488,624	$ 3,759,635
Accumulated deficit		(94,234,462)		(94,234,462)		(86,935,593)	(76,435,235)
Loss from operations		(2,806,621)	$ (2,084,538)	(5,479,229)	$ (4,252,912)	(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
Deferred contract costs		$ 3,750		3,750
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	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.					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%
Convertible Notes the principal amount, description						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.
Software developed						$ 3,100,000	700,000
Net assets						155,000
Finance lease good will mpairment loss						1,517,000
Assets and Impairment loss total						1,672,000
Goodwill impairment loss				$ 1,035,000		1,517,000
Loans receivable								$ 485,000
Share per value \| $ / shares		$ 0.06		$ 0.06
Share value						2,928,312	$ 8,951,929
Warrant exercise price \| $ / shares		$ 0.06		$ 0.06
Stock subscription receivable		$ 965,033		$ 965,033
Cash proceeds				283,950
Warrants value				1,249,000
Deferred revenue liability		454,000		454,000		425,000
Deferred revenue		$ 454,000		$ 454,000		$ 425,000
Accredited Investors June 2020 [Member]
Basis Of Presentation (Textual)
Number of common stock purchased, shares \| shares				3,441,558
Share per value \| $ / shares		$ 0.06		$ 0.06
Share value				$ 200,000
Senior Secured Convertible Notes [Member]
Basis Of Presentation (Textual)
Senior secured convertible notes interest rate	15.00%
Senior secured convertible notes aggregate amount	$ 1,510,000
Cash fee	$ 104,800
Minimum [Member]
Basis Of Presentation (Textual)
Property and equipment, estimated useful life						3 years
Maximum [Member]
Basis Of Presentation (Textual)
Property and equipment, estimated useful life						5 years
Notes Mature February 28, 2022 [Member]
Basis Of Presentation (Textual)
Notes payable percentage						150.00%
Notes Payable [Member]
Basis Of Presentation (Textual)
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]
Basis Of Presentation (Textual)
Number of kiosks \| Kiosks						78	78
Direct financing lease, imputed interest rate						10.70%	10.70%
COLOMBIA [Member]
Basis Of Presentation (Textual)
Cash held by acquiry						$ 94,000
COLOMBIA [Member] \| Revenues [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						18.00%	12.00%
COLOMBIA [Member] \| Revenues [Member] \| Four Customers [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						89.00%	89.00%
COLOMBIA [Member] \| Accounts Receivable [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						26.00%	51.00%
North American [Member]
Basis Of Presentation (Textual)
Revenue from operations						$ 600,000	$ 1,900,000
South African [Member]
Basis Of Presentation (Textual)
Revenue from operations						500,000	500,000
South Africa [Member]
Basis Of Presentation (Textual)
Cash held by acquiry						279,000
Revenue from operations						$ 1,500,000	$ 1,400,000
South Africa [Member] \| Revenues [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk							37.00%
South Africa [Member] \| Accounts Receivable [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						70.00%	46.00%
British Banks [Member]
Basis Of Presentation (Textual)
Cash held by acquiry						$ 2,000
United States [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						25.00%
United States [Member] \| Revenues [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						57.00%	14.00%
United States [Member] \| Accounts Receivable [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						4.00%	3.00%
ZIMBABWE [Member] \| Revenues [Member] \| Customer [Member]
Basis Of Presentation (Textual)
Percentage of concentration risk						5.00%	37.00%

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 441,577	$ 439,183	$ 395,309
Less Accumulated depreciation	(327,762)	(277,363)	(191,309)
Property and equipment, net	113,815	161,820	204,000
Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	284,710	282,316	238,442
Equipment under capital lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 156,867	$ 156,867	$ 156,867

PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment, Net (Textual)
Depreciation expense	$ 26,533	$ 45,203	$ 86,054	$ 64,810

OTHER ASSETS (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Software and development costs		$ 128,005	$ 1,566,177
Operating Lease right of use assets	89,210	171,141
Other	152,390	83,920
Other assets	$ 241,600	$ 383,066	$ 1,566,177

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning			$ 5,593,612	$ 3,310,184	$ 3,310,184	$ 2,878,080
Additions			257,800		3,142,363	1,009,618
Write off of assets	$ 163,822		1,035,629		1,671,804	148,627
Impairment loss					(154,622)
Amortization			(579,371)		(704,313)	(428,887)
Carrying Value at ending	5,272,041		$ 5,272,041		$ 5,593,612	3,310,184
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives			10 years		10 years
Carrying Value at beginning			$ 970,019	1,128,734	$ 1,128,734	1,287,450
Additions
Write off of assets
Impairment loss
Amortization			(79,358)		(158,715)	(158,716)
Carrying Value at ending	890,661		$ 890,661		$ 970,019	1,128,734
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives			5 years		5 years
Carrying Value at beginning			$ 3,651,924	908,893	$ 908,893
Additions			252,875		3,111,668	959,882
Write off of assets
Impairment loss
Amortization			(425,821)		(368,637)	(50,989)
Carrying Value at ending	3,478,978		$ 3,478,978		$ 3,651,924	908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives			10 years		10 years
Carrying Value at beginning			$ 862,792	1,191,942	$ 1,191,942	1,556,934
Additions
Write off of assets						(148,627)
Impairment loss					(154,622)
Amortization			(74,192)		(174,528)	(216,365)
Carrying Value at ending	788,600		788,600		862,792	1,191,942
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning			108,877	78,182	78,182	28,446
Additions			4,925		30,695	49,736
Write off of assets
Impairment loss
Amortization
Carrying Value at ending	$ 113,802		113,802		$ 108,877	78,182
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives					10 years
Carrying Value at beginning				$ 2,433	$ 2,433	5,250
Additions
Write off of assets
Impairment loss
Amortization					(2,433)	(2,817)
Carrying Value at ending						$ 2,433

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 1) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Cost	$ 7,537,837	$ 7,280,036	$ 4,399,119
Accumulated amortization	(2,265,796)	(1,686,424)	(1,088,935)
Carrying Value	5,272,041	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	1,587,159
Accumulated amortization	(696,498)	(617,140)	(458,425)
Carrying Value	890,661	970,019	1,128,734	1,287,450
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	4,324,425	4,071,550	959,882
Accumulated amortization	(845,446)	(419,626)	(50,989)
Carrying Value	3,478,978	3,651,924	908,893
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,498,364	1,498,363	1,759,809
Accumulated amortization	(709,764)	(635,571)	(567,867)
Carrying Value	788,600	862,792	1,191,942	1,556,934
Patents Pending [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	113,802	108,877	78,182
Accumulated amortization
Carrying Value	$ 113,802	108,877	78,182	28,446
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

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details 2) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 604,658	$ 1,158,743
2021	1,209,317	1,158,743
2022	1,115,983	1,119,319
2023	1,064,994	1,014,421
2024	841,492	790,106
Thereafter	435,597	352,280
Total	$ 5,272,041	$ 5,593,612	$ 3,310,184

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL) (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 579,371	$ 282,493

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Trade payables	$ 663,254	$ 621,292	$ 401,272
Accrued interest	241,072	641,834	401,667
Accrued payroll and related obligations	1,062,246	386,165	260,153
Current portion of operating lease liabilities	145,259	242,650
Other	543,276	323,971	239,134
Total	$ 2,655,107	$ 2,215,912	$ 1,302,226

NOTES PAYABLE, NET (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Total Principal Outstanding	$ 10,267	$ 12,866
Senior Unsecured Note		2,000,000
Paycheck Protection Program	485,760
Unamortized Deferred Debt Discount		(26,722)	$ (106,886)
Unamortized Deferred Debt Issuance Costs		(9,866)	(39,466)	$ (168,345)
Notes Payable, Net	496,027	1,976,278	1,853,648
Notes Payable, current portion, net of discount, issuance costs and current portion	5,635	5,341
Notes Payable, net of discounts and current portion	490,392	1,970,937	1,853,649
Total	496,027	1,976,278	1,853,648	$ 2,375,720
Vehicle [Member]
Short-term Debt [Line Items]
Total Principal Outstanding	$ 496,027	$ 2,012,866
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Total Principal Outstanding			$ 2,000,000

NOTES PAYABLE, NET (Details 1) - USD ($)	6 Months Ended	12 Months Ended
NOTES PAYABLE, NET (Details 1) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Principal Balance
Beginning Balance	$ 2,012,866	$ 2,000,000	$ 3,000,000
New issuances		16,510
Payments	485,760	(3,644)	(1,000,000)
Proceeds	(2,599)
Conversion of note payable to convertible notes payable	(2,000,000)
Amortization
Ending Balance	496,027	2,012,866	2,000,000
Debt Issuance Costs
Beginning Balance	(9,866)	(39,466)	(168,345)
New issuances
Payments
Proceeds
Conversion of note payable to convertible notes payable
Amortization	9,866	29,600	128,879
Ending Balance		(9,866)	(39,466)
Debt Discounts
Beginning Balance	(26,722)	(106,886)	(455,935)
New issuances
Payments
Proceeds
Conversion of note payable to convertible notes payable
Amortization	26,722	80,164	349,049
Ending Balance		(26,722)	(106,886)
Total
Beginning Balance	1,976,278	1,853,648	2,375,720
New issuances		16,510
Payments	485,760	(3,644)	(1,000,000)
Proceeds	(2,599)
Conversion of note payable to convertible notes payable	(2,000,000)
Amortization	36,588	109,764	477,928
Ending Balance	$ 496,027	$ 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 ($)			1 Months Ended		6 Months Ended	12 Months Ended
NOTES PAYABLE, NET (Details Narrative) - USD ($)	Apr. 30, 2018	Jan. 31, 2017	May 31, 2020	Aug. 09, 2018	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Common stock issues value						$ 2,928,312	$ 8,951,929
Senior unsecured note					$ 2,000,000
Notes payable description					The Company and the Theodore Stern Revocable Trust, the ("Stern Trust") entered an Amended and Restated Promissory Note (the "Restated Stern Note") providing that the $2,000,000 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 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 Note prior to modification provided that the maturity of such interest shall be extended to the same maturity date as the 2020 Notes detailed in Note 7. The Company accounted for the Restated Stern Note as an extinguishment of the Note and recorded a charge of $985,000 included in Other expenses in accompanying condensed consolidated statements of operations.
Loan amount						2,012,866
Senior Unsecured Note [Member]
Short-term Debt [Line Items]
Debt term		2 years
Interest rate			1.00%
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
Loan amount			$ 485,760
Maturity date			May 05, 2022
Vehicle [Member]
Short-term Debt [Line Items]
Debt term					36 months	36 months
Interest rate					10.80%	10.80%
Monthly payments					$ 539	$ 539

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Convertible notes payable	$ 5,563,538	$ 428,000
Unamortized discount on convertible notes		$ (26,722)	$ (106,886)	$ (455,935)
Unamortized debt issuance costs	(85,551)
8% convertible notes payable issued December 2019 [Member]
Convertible notes payable	428,000
15% convertible notes payable issued February 2020 [Member]
Convertible notes payable	5,265,000
10% convertible notes payable issued February 2020 [Member]
Convertible notes payable	$ 662,000

CONVERTIBLE NOTES PAYABLE (Details 1)	Jun. 30, 2020 USD ($)
Debt Disclosure [Abstract]
2020
2021
2022	6,355,000
Future moblities	$ 6,355,000

CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)		1 Months Ended	6 Months Ended	12 Months Ended
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)	Dec. 13, 2019	Feb. 14, 2020	Jun. 30, 2020	Dec. 31, 2019
Convertible notes aggregate amount			$ 5,563,538	$ 428,000
Interest rate		15.00%
Convertible note 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 or paid at maturity 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.	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”
Aggregate amount		$ 1,510,000
Principal amount			$ 50,000
Principal prepaid amount			150.00%
Required to pay			150.00%
Conversion price per share			$ 0.20
Weighted average price, description			If the Company's volume weighted average price for any preceding 20-day period is equal to or greater than $0.30.
Amendment agreement, description			The Company's subsidiaries, entered into a security agreement with the 2020 Note Investors ("Security Agreement"), the holders of the 8% Notes and 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.
Cash fee of approximately			$ 104,800
Warrant holders participated, description			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 two years for the 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. The fair market value of the modification of warrants extended was approximately $95,000. Vista Associates, L.P. ("Vista") of which, Mr. Selzer, a director of the Company is the General Partner, held Mr. Selzer 2015 Warrants to acquire 880,000 shares of common stock, which were also extended as a result of his investment in June 2020, exercised his 2015 Warrants and converted into 880,000 shares of common stock.
Investor [Member]
Convertible notes aggregate amount	$ 428,000
Interest rate	8.00%
Notes maturity date	Nov. 30, 2021
Convertible note description	The Company can prepay all or a portion of the 8% Notes at any time. The Company shall pay any 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 a conversion price of $0.08 per share. If the holders of the 8% Notes owning outstanding 8.0% 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.
Philip D. Beck [Member]
Principal amount			$ 50,000
Theodore Stern [Member]
Principal amount			50,000
Herbert Selzer [Member]
Principal amount			100,000
Mr. Selzer [Member]
Principal amount			$ 50,000

RELATED PARTY TRANSACTIONS (Details) - USD ($)		1 Months Ended				3 Months Ended	6 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jan. 31, 2017	May 22, 2020	Jun. 30, 2019	Aug. 31, 2018	Aug. 09, 2018	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 29, 2017
Related Party Transactions (Textual)
Restricted common stock											15,000,000
Common stock issues value									$ 2,928,312	$ 8,951,929
Rent paid							$ 30,000	$ 44,450
Severance cost		$ 350,000
Board of Directors Chairman [Member]
Related Party Transactions (Textual)
Notes offering, percentage									8.00%
Confidential Settlement Agreement and General Release [Member]
Related Party Transactions (Textual)
Professional fees									$ 160,000
Agency Agreement [Member]
Related Party Transactions (Textual)
Professional fees									84,000
Subscription Agreement [Member]
Related Party Transactions (Textual)
Number of common stock purchased, shares							714,285
Common stock issues value							$ 50,000
New Office Facilities [Member] \| Long Beach, New York [Member]
Related Party Transactions (Textual)
Additional monthly rental payments							$ 5,000		$ 7,425
Agreement term							30 days		30 days
Network 1 Financial Securities Inc. [Member]
Related Party Transactions (Textual)
Fees incurred							$ 104,800
Convertible Notes Payable [Member]
Related Party Transactions (Textual)
Convertible notes payable, description							The Company and the Stern Trust entered 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 subject to the same Security Agreement 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 Restated Stern Note includes a 50% repayment premium. Mr. Stern, the Trustee of the Stern Trust also entered into the Security Agreement as one of the joint collateral agents.
Senior Unsecured Note [Member]
Related Party Transactions (Textual)
Number of common stock purchased, shares	4,500,000
Common stock issues value	$ 1,147,500				$ 1,000,000				$ 420,000
Interest expenses					158,000				240,000
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
Mr. Phillip Kumnick [Member]
Related Party Transactions (Textual)
Related party transactions, description							Mr. Kumnick will earn an initial base salary of $250,000 per annum subject to review after one year. Mr. Kumnick was granted options to acquire 33,333,334 shares of common stock of which 20% vest at grant and the balance vest subject to performance conditions. Mr. Broenniman will earn an initial base salary of $175,000 per annum subject to review after one year. Mr. Broenniman was granted options to acquire 16,666,666 shares of common stock of which 20% vest at grant and the balance vest subject to performance conditions.
Herbert Selzer [Member] \| Convertible Notes Payable [Member]
Related Party Transactions (Textual)
Related party transactions, description							The Company, invested $50,000 each in consideration of the 2020 Notes. Another director, Herbert Selzer invested $100,000 in consideration of a 2020 Note in the principal amount of $100,000. Vista held 880,000 2015 Warrants, which were also extended as a result of Mr. Selzer's investment and as noted above were exercised for cash on June 30, 2020.
Accredited Investors 2019 [Member] \| Subscription Agreements [Member]
Related Party Transactions (Textual)
Share price (in dollars per share)			$ 0.088			$ 0.088		$ 0.088
Mr. Stern [Member]
Related Party Transactions (Textual)
Number of shares issued				6,666,667
Mr. Selzer [Member]
Related Party Transactions (Textual)
Number of shares issued				666,667
Common Stock [Member]
Related Party Transactions (Textual)
Restricted common stock							3,000,000
Number of common stock purchased, shares			1,562,500				106,000	1,562,500
Number of shares issued for brokerage						410,708	106,192	410,708	410,708	456,735
Common Stock [Member] \| Mr. Phillip Kumnick [Member]
Related Party Transactions (Textual)
Restricted common stock							1,500,000
Common Stock [Member] \| Mr. Philip Broenniman [Member]
Related Party Transactions (Textual)
Restricted common stock							1,500,000
Common Stock [Member] \| Accredited Investors 2019 [Member] \| Subscription Agreements [Member]
Related Party Transactions (Textual)
Number of common stock purchased, shares			38,764,000
Common stock issues value			$ 3,100,000
Warrant [Member]
Related Party Transactions (Textual)
Fair value of warrants							$ 95,000
Warrant [Member] \| Network 1 Financial Securities Inc. [Member]
Related Party Transactions (Textual)
Number of common stock purchased, shares									858,000
Fees incurred									$ 109,000
Fair value of warrants									$ 54,000
Warrant term									5 years
Share price (in dollars per share)									$ 0.088
Number of shares issued				2,470,000
Exercise price				$ 0.165
Lease expenses				$ 89,100
Warrant [Member] \| Theodore Stern [Member]
Related Party Transactions (Textual)
Warrants exercise price per share, description							Company entered into and consummated a private transaction pursuant to which a portion of the Company's warrants exercisable at per share price of $0.10 (the "$0.10 Warrants") were exercised for cash at an exercise price of $0.07 per share. In addition, the holders that exercised the $0.10 Warrants received a warrant exercisable for two years to acquire one share of common stock at an exercise price of $0.15 per share (the $0.15 Warrants") for every four $0.10 Warrants exercised.
Private transaction, description							Mr. Theodore Stern, a director of the Company, participated in the private transaction resulting in the issuance of 1,000,000 shares of common stock and 250,000 $0.15 Warrants in consideration of $70,000; and Varana Capital Focused, LP ("VCFLP"), participated in the private transaction resulting in the issuance of 3,716,667 shares of common stock and 929,167 $0.15 Warrants , in consideration of $260,167. Mr. Philip Broenniman, a director, the President and COO of the Company is the investment manager of VCFLP.
Warrant [Member] \| Herbert Selzer [Member]
Related Party Transactions (Textual)
Warrants exercise price per share, description							Company entered into and consummated a private transaction pursuant to which a portion of the Company's warrants exercisable at per share price of $0.06 (the "$0.06 Warrants") were exercised. In addition, the holders that exercised the $0.06 Warrants also received a $0.15 Warrant for every two $0.06 Warrants exercised.
Private transaction, description							Vista Associates, L.P., ("Vista") of which, Mr. Herbert Selzer a director of the Company, is the General Partner, participated in the private transaction resulting in the issuance of 880,000 shares of common stock and 440,000 $0.15 Warrants , in consideration of $52,800.
Warrant [Member] \| Accredited Investors 2019 [Member] \| Subscription Agreements [Member]
Related Party Transactions (Textual)
Number of common stock purchased, shares			1,251,750
Fair value of warrants			$ 79,000
Warrant term			5 years						5 years

STOCKHOLDER'S EQUITY (Details) - $ / shares	6 Months Ended	12 Months Ended
STOCKHOLDER'S EQUITY (Details) - $ / shares	Jun. 30, 2020	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	47,453,227	46,201,477	48,164,543
Granted	7,458,085	1,251,750	2,470,267
Exercised/Cancelled	(25,781,243)		(4,433,333)
Outstanding balance at ending	29,130,069	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	$ 0.08	$ 0.11	$ 0.11
Granted	0.15	0.09	0.14
Exercised/Cancelled	0.06		0.05
Ending Balance Outstanding	$ 0.12	$ 0.08	$ 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	1 year 4 months 24 days	2 years 10 months 25 days	2 years 9 months 18 days
Granted	2 years	5 years	5 years
Exercised/Cancelled	9 months 18 days
Ending Balance Outstanding	1 year 7 months 6 days	1 year 10 months 25 days	2 years 10 months 25 days

STOCKHOLDER'S EQUITY (Details 1)	6 Months Ended	12 Months Ended
STOCKHOLDER'S EQUITY (Details 1)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend Rate	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	68.00%	75.00%	79.00%
Expected Term	5 years	2 years 6 months	2 years 6 months
Risk Free Rate	0.30%	1.73%	2.42%
Maximum[Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Volatility	75.00%	80.00%	93.00%
Expected Term		5 years 10 months 25 days	5 years 10 months 25 days
Risk Free Rate	0.34%	2.49%	3.00%

STOCKHOLDER'S EQUITY (Details 2) - USD ($)	6 Months Ended	12 Months Ended
STOCKHOLDER'S EQUITY (Details 2) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Shares
Outstanding at beginning	109,400,006	106,253,339	103,208,331
Granted	51,044,054	3,600,000	6,220,000
Forfeitures	(699,999)	(453,333)	(3,174,992)
Outstanding at ending	159,744,061	109,400,006	106,253,339
Exercisable at ending	113,750,727	101,144,450
Weighted Average Exercise Price
Outstanding at beginning	$ 0.20	$ 0.19	$ 0.19
Granted	0.07	0.07	0.22
Forfeitures	0.23	0.13	0.08
Outstanding at ending	0.19	0.20	$ 0.19
Exercisable at ending	$ 0.15	$ 0.19
Weighted Average Contractual Term (Yrs.)
Outstanding at beginning	6 years 6 months	9 years 6 months	9 years 6 months
Granted	10 years	10 years	10 years
Outstanding at ending	7 years 7 months 6 days	6 years 6 months	9 years 6 months
Exercisable at ending	6 years 9 months 18 days	7 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at beginning	$ 280,000	$ 11,457,291	$ 10,023,400
Granted	200,000		2,868,750
Forfeitures
Outstanding at ending	104,650	280,000	$ 11,457,291
Exercisable at ending	$ 104,650	$ 280,000

STOCKHOLDER'S EQUITY (Details 3) - shares	6 Months Ended	12 Months Ended
STOCKHOLDER'S EQUITY (Details 3) - shares	Jun. 30, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	159,744,061	109,400,006
Weighted Avg.	7 years 7 months 17 days
Exercisable	113,750,727	101,144,450
Exercise Price $0.0001 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	3,500,000	3,500,000
Weighted Avg.	6 years	5 years 9 months 18 days
Exercisable	3,500,000	3,500,000
Exercise Price $0.05 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	35,700,006	35,700,006
Weighted Avg.	6 years 10 months 6 days	6 years 10 months 25 days
Exercisable	31,950,006	31,950,006
Exercise Price $0.06 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,044,054
Weighted Avg.	9 years 7 months 6 days
Exercisable	1,044,054
Exercise Price $0.07 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	50,000,000
Weighted Avg.	9 years 10 months 25 days
Exercisable	10,000,000
Exercise Price $0.10 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	27,200,000	27,200,000
Weighted Avg.	6 years 9 months	6 years 9 months 18 days
Exercisable	27,200,000	27,061,110
Exercise Price $0.119 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	400,001
Weighted Avg.	9 years 2 months 19 days
Exercisable	200,000
Exercise Price $0.124 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	600,000	1,200,000
Weighted Avg.	8 years 9 months	9 years
Exercisable	390,000
Exercise Price $0.130 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	250,000	250,000
Weighted Avg.	7 years 9 months 18 days	7 years 9 months 18 days
Exercisable	166,667	166,667
Exercise Price $0.15 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,800,000	2,800,000
Weighted Avg.	5 years 10 months 6 days	5 years 10 months 25 days
Exercisable	2,800,000	2,800,000
Exercise Price $0.22 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,583,333	2,750,000
Weighted Avg.	8 years 18 days	8 years
Exercisable	1,500,000	1,500,000
Exercise Price $0.250 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,500,000	2,500,000
Weighted Avg.	7 years 10 months 6 days	7 years 10 months 25 days
Exercisable	1,833,333	1,166,667
Exercise Price $0.260 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	166,667	500,000
Weighted Avg.	8 years 3 months 19 days	8 years 3 months 19 days
Exercisable	166,667	333.333
Exercise Price $0.290 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000	1,000,000
Weighted Avg.	7 years 3 months 19 days	7 years 3 months 19 days
Exercisable	1,000,000	666,667
Exercise Price $0.400 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000	1,000,000
Weighted Avg.	6 years 2 months 1 day	6 years 2 months 12 days
Exercisable	1,000,000	1,000,000
Exercise Price $0.450 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	31,000,000	31,000,000
Weighted Avg.	5 years 10 months 6 days	5 years 10 months 25 days
Exercisable	31,000,000	31,000,000

STOCKHOLDER'S EQUITY (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended	6 Months Ended		12 Months Ended
STOCKHOLDER'S EQUITY (Details Narrative) - USD ($)	Jun. 30, 2019	Aug. 31, 2018	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2017	Sep. 29, 2017	Sep. 28, 2017
Stockholder's Equity (Textual)
Stock based compensation				$ 629,993	$ 787,720	$ 1,246,019	$ 2,429,959
Restricted Common Stock											15,000,000
Number of common shares issued, amount						$ 2,928,312	$ 8,951,929
Number of options granted				51,044,054		3,600,000	6,220,000
Common stock, authorized				1,000,000,000		1,000,000,000	1,000,000,000
Common stock, issued				546,654,196		518,125,454	478,950,996
Common stock, outstanding				546,654,196		518,125,454	478,950,996
Preferred stock, authorized						20,000,000
Number of common shares issued for services, amount			$ 41,112	$ 8,270	$ 41,112	$ 41,071	$ 97,126
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. The options have a term of ten years and the approximate fair value of the options as of the grant date was $150,000.
Number of stock granted				7,458,085		1,251,750	2,470,267
Exercise price				$ 0.06
Shares issued price per share				$ 0.06
Number of options exercisable				113,750,727		101,144,450
Exercise price of option				$ 0.15		$ 0.19
Stock options term				6 years 9 months 18 days		7 years 4 months 24 days
Subscription Agreements, description					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.
Minimum [Member]
Stockholder's Equity (Textual)
Common stock, authorized												500,000,000
Maximum [Member]
Stockholder's Equity (Textual)
Common stock, authorized												1,000,000,000
2014 Equity Compensation Plan [Member]
Stockholder's Equity (Textual)
Number of shares authorized						25,000,000
2017 Incentive Stock Plan [Member]
Stockholder's Equity (Textual)
Number of shares authorized						70,000,000
Ten Employees and One Non-Employee [Member]
Stockholder's Equity (Textual)
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, were granted at fair market value at the date of grant and vest over three years.
Ten Employees and One Non-Employee [Member] \| Tranche One [Member]
Stockholder's Equity (Textual)
Number of options exercisable							3,250,000
Exercise price of option							$ 0.22
Ten Employees and One Non-Employee [Member] \| Tranche Two [Member]
Stockholder's Equity (Textual)
Number of options exercisable							2,000,000
Exercise price of option							$ 0.25
MultiPay S.A.S [Member]
Stockholder's Equity (Textual)
Cancellation of common stock							728,448
Non Employee Stock Option [Member]
Stockholder's Equity (Textual)
Stock based compensation				$ 13,000		$ 1,246,000	$ 2,430,000
Unrecognized compensation costs				448,000		27,000
Stock subscription receivable				561,000
Compensation costs related to stock options outstanding				$ 13,000
Number of options exercisable							970,000
Exercise price of option							$ 0.12
Restricted Stock [Member]
Stockholder's Equity (Textual)
Warrant term							3 years
Number of stock granted							2,750,000
Number of stock vested							2,000,000
Employee Stock Option [Member]
Stockholder's Equity (Textual)
Stock based compensation						1,246,000	$ 2,430,000
Unrecognized compensation costs						$ 446,000
Number of options granted							6,220,000
Number of stock vested							750,000
Non Employee Directors [Member] \| Restricted Stock [Member]
Stockholder's Equity (Textual)
Number of stock granted							2,456,000
Service Provider [Member]
Stockholder's Equity (Textual)
Number of common shares issued for services, shares							456,735
Number of common shares issued for services, amount							$ 97,126
Accredited Investors June 2020 [Member]
Stockholder's Equity (Textual)
Number of common stock purchased, shares				3,441,558
Number of common shares issued, amount				$ 200,000
Shares issued price per share				$ 0.06
Subscription Agreements [Member] \| Network 1 Financial Securities Inc. [Member]
Stockholder's Equity (Textual)
Cash fee		$ 629,000
Subscription Agreements [Member] \| Accredited Investors 2019 [Member]
Stockholder's Equity (Textual)
Fees paid	$ 173,000		$ 173,000		$ 173,000
Share price (in dollars per share)	$ 0.088		$ 0.088		$ 0.088
Subscription Agreements [Member] \| Accredited Investors 2019 [Member] \| Two Service Providers [Member]
Stockholder's Equity (Textual)
Number of common shares issued for services, shares	411,000
Number of common shares issued for services, amount	$ 41,000
Common Stock [Member]
Stockholder's Equity (Textual)
Employment compensation shares				1,500,000
Restricted Common Stock				3,000,000
Number of common stock purchased, shares	1,562,500			106,000	1,562,500
Number of options granted				4,500,000
Common stock, outstanding	518,125,454		518,125,454	546,654,196	518,125,454	518,125,454	478,950,996	522,731,646	478,950,996	403,311,988
Number of common shares issued for services, shares			410,708	106,192	410,708	410,708	456,735
Number of common shares issued for services, amount			$ 41	$ 11	$ 41	$ 41	$ 46
Common Stock [Member] \| August 2018 Accredited Investors [Member]
Stockholder's Equity (Textual)
Number of shares issued on conversion							1,600,000
Common Stock [Member] \| Subscription Agreements [Member] \| Accredited Investors 2020 [Member]
Stockholder's Equity (Textual)
Number of common stock purchased, shares				3,441,558
Number of common shares issued, amount				$ 200,000
Common Stock [Member] \| Subscription Agreements [Member] \| Accredited Investors 2019 [Member]
Stockholder's Equity (Textual)
Number of common stock purchased, shares	38,764,000
Number of common shares issued, amount	$ 3,100,000
Warrants [Member]
Stockholder's Equity (Textual)
Warrants outstanding amount				$ 367,000
Warrants exercised for cash per share				$ 0.10
Exercise price per share				0.07
Holders exercised				0.10
Warrants received				0.15
Warrants exercised price per share				$ 0.10
Warrants, description				As a result, the Company issued 10,008,333 shares of common stock and 2,502,085 $0.15 Warrants in consideration of $700,583.
Fair value of warrants				$ 95,000
Warrants [Member] \| Network 1 Financial Securities Inc. [Member]
Stockholder's Equity (Textual)
Number of common stock purchased, shares						858,000
Warrant term						5 years
Fair value of warrants						$ 54,000
Share price (in dollars per share)						$ 0.088
Warrants [Member] \| Subscription Agreements [Member]
Stockholder's Equity (Textual)
Stock subscription receivable				$ 970,000
Warrant exercise transactions issuance				23,900,000
Warrants [Member] \| Subscription Agreements [Member] \| Accredited Investors 2019 [Member]
Stockholder's Equity (Textual)
Number of common stock purchased, shares	1,251,750
Warrant term	5 years					5 years
Fair value of warrants	$ 79,000
Warrants [Member] \| Subscription Agreements [Member] \| Accredited Investors June 2019 [Member]
Stockholder's Equity (Textual)
Unrecognized compensation costs						$ 1,251,750
Warrant term						5 years
Exercise price						$ 0.088
Warrants [Member] \| Subscription Agreements [Member] \| Accredited Investors August 2019 [Member]
Stockholder's Equity (Textual)
Unrecognized compensation costs							$ 2,470,267
Warrant term							5 years
Exercise price							$ 0.14
Warrant One [Member]
Stockholder's Equity (Textual)
Warrants exercised for cash per share				$ 0.05
Warrants received				0.05
Warrants exercised price per share				$ 0.05
Warrants, description				As a result, the Company issued 4,632,000 shares of common stock and 2,316,000 $0.15 Warrants, in consideration of $231,600. Separately, certain holders of the $0.05 Warrants to acquire 1,770,000 shares of common stock exercised on a cashless basis resulting in the issuance of 560,659 shares of common stock.
Warrant One [Member] \| Mr. Selzer [Member]
Stockholder's Equity (Textual)
Warrants, description				Certain of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period by two years, subject to an increase in the Exercise Price from $0.05 per share (as defined therein) to $0.06 per share of 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. As noted above a portion of the 2015 Warrants (or $0.06 Warrants) were exercised for cash on June 30, 2020. Vista of which Mr. Selzer, a director of the Company, is the General Partner held 880,000 2015 Warrants, which were also extended as a result of his investment and were exercised for cash on June 30, 2020.
Warrant One [Member] \| August 2018 Accredited Investors [Member]
Stockholder's Equity (Textual)
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
Warrant Two [Member]
Stockholder's Equity (Textual)
Warrants, description				Company entered into and consummated a private transaction pursuant to which a portion of the Company's $0.06 Warrants were exercised. In addition, the holders that exercised the $0.06 Warrants also received $0.15 Warrant for every two $0.06 Warrants exercised. As a result, the Company issued 5,280,000 shares of common stock and 2,640,000 $0.15 Warrants in consideration of $316,800.
Additional Paid-in Capital [Member]
Stockholder's Equity (Textual)
Number of common shares issued for services, amount			41,071	$ 8,259	41,071	$ 41,030	$ 97,080
Accumulated Deficit [Member]
Stockholder's Equity (Textual)
Number of common shares issued for services, amount
Accumulated Other Comprehensive Income [Member]
Stockholder's Equity (Textual)
Number of common shares issued for services, amount

DIRECT FINANCING LEASE (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Remainder 2020	$ 61,074	$ 122,148
2021	122,148	122,148
2022	122,148	122,148
2023	122,148	122,148
2024	122,148	122,148
Thereafter	162,864	162,864
Sub-total	712,530	773,604
Less deferred revenue	(184,290)	(213,568)
Net investment in lease	$ 528,240	$ 560,036

DIRECT FINANCING LEASE (Details Narrative)	1 Months Ended	6 Months Ended	12 Months Ended
DIRECT FINANCING LEASE (Details Narrative)	Sep. 30, 2015 USD ($) Kiosks $ / shares	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Direct Financing Lease (Textual)
Revenue		$ 30,000	$ 63,400	$ 69,400
Equipment under capital lease		748,000	748,000
Aggregate minimum future lease payments		1,422,000	1,422,000
Unearned income		$ 474,000	$ 474,000
Cash Collection and Services [Member]
Direct Financing Lease (Textual)
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) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Year ending December 31
Remainder of 2020	$ 21,548	$ 43,096
2021	43,096	43,096
2022	10,774	10,774
Total minimum lease payments	75,418	96,966
Less: Amount representing interest	(7,696)	(12,356)
Present value of minimum lease payments	$ 67,722	$ 84,610

LEASE OBLIGATION PAYABLE (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
LEASE OBLIGATION PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Leases (Textual)
Amortization of lease equipment	$ 107,152	$ 91,079
Lease obligation interest rate	12.00%	12.00%
Lease obligation maturity date	Mar. 31, 2022	Mar. 31, 2022

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Assets:
Current portion of operating lease ROU assets - included in other current assets	$ 190,268	$ 254,919
Operating lease ROU assets - included in Other Assets	89,210	171,141
Total operating lease assets	279,478	426,060
Liabilities:
Current portion of ROU liabilities - included in Accounts payable and accrued expenses	145,259	242,650
Long-term portion of ROU liabilities - included in Other liabilities	92,503	131,568
Total operating lease liabilities	$ 237,762	$ 374,218

COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Operating Leases Year Ending March 31:
Remainder of 2020	$ 132,017	$ 277,961
2021	96,607	96,606
2022	49,716	49,716
Total operating lease payments	278,340	424,283
Less: Imputed interest	(40,578)	(50,065)
Total operating lease liabilities	$ 237,762	$ 374,218

COMMITMENTS AND CONTINGENCIES (Details Narrative)	1 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Narrative)	Oct. 31, 2018 USD ($)	Apr. 30, 2017 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2020 USD ($) ft²	Dec. 31, 2019 USD ($) ft²	May 22, 2020 USD ($)
Lease expense				$ 165,000
Area of land for rent \| ft²				2,100	2,100
Weighted average lease term				1 year 9 months 18 days	1 year 2 months 12 days
Weighted average discount rate				13.55%	13.55%
Rent expense			$ 381,000		$ 439,000
Employee benefits, payable						$ 350,000
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.
Office Space [Member] \| South Africa [Member]
Monthly rental payments				$ 8,000	$ 8,000
Lease term, description				The current lease is through June 30, 2022	The current lease is through June 30, 2022.
Office Space [Member] \| Colombia [Member] \| MultiPay S.A.S [Member]
Monthly rental payments		$ 8,500
Agreement term		2 years
Office Space [Member] \| Alpharetta Georgia [Member]
Monthly rental payments	$ 3,800
Office Space [Member] \| Long Beach, New York [Member]
Additional monthly rental payments				$ 5,000	$ 7,425
Agreement term				30 days	30 days
Office Space [Member] \| Plantation [Member]
Monthly rental payments				$ 2,700	$ 2,700
Weighted average discount rate				3.00%	3.00%
Lease term, description					The lease term is through August 2020.
Apartment [Member] \| Colombia [Member]
Monthly rental payments				$ 2,000	$ 2,000
Lease term, description					The management team through April 2020.

IMPAIRMENT LOSS (Details) - USD ($)	6 Months Ended	12 Months Ended
IMPAIRMENT LOSS (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Impairment Loss (Textual)
Goodwill impairment loss	$ 1,035,000	$ 1,517,000

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
SEGMENT INFORMATION (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Net Revenues	$ 321,119	$ 644,961	$ 1,114,908	$ 1,385,339	$ 2,552,045	$ 3,828,993
Loss From Operations	(2,806,621)	(2,084,538)	(5,479,229)	(4,252,912)	(10,085,749)	(9,323,219)
Interest Expense	(310,153)	(93,260)	(489,203)	(180,150)	(375,598)	(757,801)
Other income/(expense)	(342,082)	6,271	(1,317,971)	12,497	23,920	83,649
Loss before income taxes	(3,458,856)	(2,171,527)	(7,286,403)	(4,420,565)	(10,437,427)	(9,997,371)
Income tax expense	(3,592)	(4,264)	(12,466)	(17,965)	(62,931)	(30,242)
Net loss	(3,462,448)	(2,175,791)	(7,298,869)	(4,438,530)	(10,500,358)	(10,027,613)
Payment Processing [Member]
Net Revenues	72,133	120,613	185,757	245,941	455,475	476,234
Loss From Operations	(1,803,784)	(1,220,869)	(3,015,936)	(2,477,821)	(5,186,550)	(6,540,029)
Identity Management [Member]
Net Revenues	248,986	524,348	929,151	1,139,398	2,096,570	3,352,759
Loss From Operations	(1,002,837)	(863,669)	(2,463,293)	(1,775,091)	(4,899,199)	(2,783,190)
North America [Member]
Net Revenues	135,698	146,583	269,252	373,624	642,313	1,941,866
Loss From Operations	(670,183)	(681,690)	(1,076,575)	(1,419,652)	(3,536,664)	(1,959,125)
South America [Member]
Net Revenues	72,133	120,613	185,757	245,941	455,475	476,234
Loss From Operations	(1,803,784)	(1,220,869)	(3,015,936)	(2,477,821)	(5,186,550)	(6,540,029)
Africa [Member]
Net Revenues	113,288	377,765	659,899	765,774	1,454,257	1,410,893
Loss From Operations	$ (332,654)	$ (181,979)	$ (1,386,718)	$ (355,439)	$ (1,362,535)	$ (824,065)

SEGMENT INFORMATION (Details Narrative)	6 Months Ended	12 Months Ended
SEGMENT INFORMATION (Details Narrative)	Jun. 30, 2020 USD ($) Segment	Dec. 31, 2019 USD ($) Segment	Dec. 31, 2018 USD ($)
Number of reportable segments \| Segment	2	2
Goodwill	$ 4,183,232	$ 5,218,861	$ 6,736,043
North America [Member]
Gross long lived assets	8,900,000	9,100,000
Goodwill		4,200,000
South America [Member]
Gross long lived assets	300,000	400,000
Goodwill		0
Africa [Member]
Gross long lived assets	$ 300,000	1,400,000
Goodwill		$ 1,200,000

OTHER LIABILITIES (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Operating lease liabilities, long term		$ 131,568
Other			45,000
Total other liabilities	$ 92,503	$ 131,568	$ 45,000

OTHER LIABILITIES (Details Narrative)	Dec. 31, 2018 USD ($)
Other Liabilities (Textual)
Other liabilities	$ 45,000

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
INCOME TAXES (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Loss before income taxes	$ (3,458,856)	$ (2,171,527)	$ (7,286,403)	$ (4,420,565)	$ (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)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (f)
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Section S99
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-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

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
Income Taxes (Textual)
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
Maximum [Member]
Income Taxes (Textual)
Federal corporate rate reduction	35.00%
Minimum [Member]
Income Taxes (Textual)
Federal corporate rate reduction	21.00%

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended	12 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Feb. 14, 2020	Dec. 31, 2019	Jun. 30, 2020
Subsequent Events (Textual)
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.	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%
Convertible notes payable		$ 428,000	$ 5,563,538
Convertible Notes the principal amount, description		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.
Notes Mature February 28,2022 [Member]
Subsequent Events (Textual)
Notes payable percentage		150.00%
Notes Payable [Member]
Subsequent Events (Textual)
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