0001213900-21-024897 | 10-Q | XBRL Viewer

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

	March 31, 2021			December 31, 2020
Property and equipment	$	297,839		$	297,839
Equipment under finance lease (see Note 10)		163,407			163,407
		461,246			461,246
Less Accumulated depreciation		(373,111	)		(363,417	)
Property and equipment, net	$	88,135		$	97,829

Convertible Notes Payable (Details) - USD ($)		1 Months Ended		3 Months Ended
Convertible Notes Payable (Details) - USD ($)	Dec. 13, 2019	Feb. 29, 2020	Feb. 14, 2020	Mar. 31, 2021
Convertible Notes Payable (Details) [Line Items]
Interest rate			15.00%	15.00%
Amendment agreement, description		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.		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. The interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 has been capitalized and will earn interest at 10% per annum, which at the election of the Stern Trust can be paid in shares of common stock at a conversion price of $0.20 and the maturity of such interest shall be extended to the same maturity date as the 2020 Notes.
Aggregate amount			$ 1,510,000
Principal prepaid amount				150.00%
Required to pay				150.00%
Conversion price per share (in Dollars 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.
Cash fee of approximately				$ 104,800
Conversion of stock, shares converted (in Shares)				989,000
Convertible Debt [Member]
Convertible Notes Payable (Details) [Line Items]
Convertible notes aggregate amount				$ 120,000
Investor [Member]
Convertible Notes Payable (Details) [Line Items]
Interest rate	8.00%
Convertible notes aggregate amount	$ 428,000
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]
Convertible Notes Payable (Details) [Line Items]
Consideration amount			50,000
Principal amount			50,000
Theodore Stern [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount			50,000
Principal amount			50,000
Herbert Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount			100,000
Principal amount			100,000
Mr. Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Principal amount			$ 50,000

Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($)

3 Months Ended

12 Months Ended

Mar. 31, 2021

Dec. 31, 2020

Schedule of accounts payable and accrued expenses [Abstract]

Trade payables

$ 183,450

$ 311,024

Accrued interest

704,624

554,755

Accrued payroll and related obligations

799,377

891,790

Current portion of operating lease liabilities

52,858

117,414

Other

^[1]

797,152

790,149

Total

$ 2,537,461

$ 2,665,132

[1]	Included in Other expenses is accrued non-employee Directors’ Compensation of approximately $392,000 and $349,000 as of March 31, 2021 and December 31, 2020, respectively. In May 2021, the Non-employee Directors were compensated for their service through a grant of stock options. See Note 9.

Segment Information

3 Months Ended

Mar. 31, 2021

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 $7.3 million, $0.7 million and $1.3 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
	March 31, 2021			March 31, 2020
Net Revenues:
North America	$	148,060		$	133,554
South America		96,183			113,624
Africa		344,756			546,611
		588,999			793,789

Identity Management		492,816			680,165
Payment Processing		96,183			113,624
		588,999			793,789

Loss From Operations:
North America		(1,270,403	)		(407,392	)
South America		(731,688	)		(1,212,152	)
Africa		(184,819	)		(1,053,064	)
		(2,186,910	)		(2,672,608	)

Identity Management		(1,455,222	)		(1,460,456	)
Payment Processing		(731,688	)		(1,212,152	)
		(2,186,910	)		(2,672,608	)

Interest Expense		(297,438	)		(179,050	)
Other income/(expense)		1,537			(975,889	)

Loss before income taxes		(2,482,811	)		(3,827,547	)

Income tax expense		(7,188	)		(8,874	)

Net loss	$	(2,489,999	)	$	(3,836,421	)

- 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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-Paragraph 31
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

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-Name Accounting Standards Codification
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Reference 12: 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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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Stockholder's Equity (Details) - Schedule of stock option	3 Months Ended
	Mar. 31, 2021 shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	162,305,394
Weighted Average Contractual Life (Yrs).	7 years 73 days
Exercisable	123,108,727
Exercise Price $0.0001 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	3,500,000
Weighted Average Contractual Life (Yrs).	5 years 109 days
Exercisable	3,500,000
Exercise Price $0.05 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	26,700,006
Weighted Average Contractual Life (Yrs).	6 years 73 days
Exercisable	23,950,006
Exercise Price $0.06 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,042,054
Weighted Average Contractual Life (Yrs).	9 years 73 days
Exercisable	1,042,054
Exercise Price $0.07 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	50,000,000
Weighted Average Contractual Life (Yrs).	9 years 73 days
Exercisable	26,000,000
Exercise Price $0.09 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	11,630,000
Weighted Average Contractual Life (Yrs).	9 years 6 months
Exercisable
Exercise Price $0.10 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	27,200,000
Weighted Average Contractual Life (Yrs).	6 years 109 days
Exercisable	27,200,000
Exercise Price $0.12 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	933,334
Weighted Average Contractual Life (Yrs).	8 years 6 months
Exercisable	616,667
Exercise Price $0.13 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	250,000
Weighted Average Contractual Life (Yrs).	7 years 146 days
Exercisable	250,000
Exercise Price $0.15 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,800,000
Weighted Average Contractual Life (Yrs).	5 years 146 days
Exercisable	2,800,000
Exercise Price $0.22 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,583,333
Weighted Average Contractual Life (Yrs).	7 years 219 days
Exercisable	2,083,333
Exercise Price $0.25 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,500,000
Weighted Average Contractual Life (Yrs).	7 years 146 days
Exercisable	2,500,000
Exercise Price $0.26 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	166,667
Weighted Average Contractual Life (Yrs).	7 years 328 days
Exercisable	166,667
Exercise Price $0.29 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life (Yrs).	6 years 328 days
Exercisable	1,000,000
Exercise Price $0.40 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,000,000
Weighted Average Contractual Life (Yrs).	5 years 255 days
Exercisable	1,000,000
Exercise Price $0.45 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	31,000,000
Weighted Average Contractual Life (Yrs).	5 years 146 days
Exercisable	31,000,000

Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 461,246	$ 461,246
Less Accumulated depreciation	(373,111)	(363,417)
Property and equipment, net	88,135	97,829
Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	297,839	297,839
Equipment under finance lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 163,407	$ 163,407

Direct Financing Lease

3 Months Ended

Mar. 31, 2021

Direct Financing Lease [Abstract]

DIRECT FINANCING LEASE

NOTE 10 – DIRECT FINANCING LEASE

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 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 per month and initial direct costs are not considered significant. The transaction resulted in incremental revenue in the quarter ended March 31, 2021 of approximately $13,000.

The equipment is subject to a 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 of 2021		91,611
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
Sub-total		620,919
Less deferred revenue		(143,666	)
Net investment in lease	$	477,253

Basis of Presentation (Details) - Schedule of potentially dilutive securities - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	238,692,129	192,753,272
Convertible Notes Payable [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	34,047,500	35,476,705
Warrant [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	42,339,235	47,453,227
Stock options [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	162,305,394	109,823,340

Convertible Notes Payable

3 Months Ended

Mar. 31, 2021

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 8% Note 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.

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. 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. The interest due under the Stern Note as of January 31, 2020 in the amount of $662,000 has been capitalized and will earn interest at 10% per annum, which at the election of the Stern Trust can be paid in shares of common stock at a conversion price of $0.20 and 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.

During the quarter ended March 31, 2021, convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 989,000 shares of common stock of the Company.

The following is a summary of the convertible notes payable outstanding at March 31, 2021:

8% convertible notes payable issued December 2019	$	383,000
15% convertible notes payable issued February 2020		5,190,000
10% convertible notes payable issued February 2020		662,000
Unamortized discount on convertible notes		(376,876	)
Unamortized debt issuance costs		(45,474	)

	$	5,812,650

Future maturities of convertible notes payable are as follows:

2021	$	-
2022		6,235,000

	$	6,235,000

Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of warrant activity

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2020		54,697,021		$	0.14		3.4 Years
Exercised/cancelled		(12,357,786	)		0.10		-
Outstanding at March 31, 2021		42,339,235		$	0.15		4.0 Years

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, 2020		169,374,061		$	0.15		7.5	$	8,283,639
Granted		-			-		-		-
Exercised/cancelled		(7,068,667	)		0.05
Outstanding as of March 31, 2021		162,305,394			0.15		7.2	$	29,442,247
Exercisable as of March 31, 2021		123,108,727		$	0.18		6.7	$	20,362,319

Schedule of stock option

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs).		Exercisable
$	0.0001		3,500,000		5.3		3,500,000
	0.05		26,700,006		6.2		23,950,006
	0.06		1,042,054		9.2		1,042,054
	0.07		50,000,000		9.2		26,000,000
	0.09		11,630,000		9.5		-
	0.10		27,200,000		6.3		27,200,000
	0.12		933,334		8.5		616,667
	0.13		250,000		7.4		250,000
	0.15		2,800,000		5.4		2,800,000
	0.22		2,583,333		7.6		2,083,333
	0.25		2,500,000		7.4		2,500,000
	0.26		166,667		7.9		166,667
	0.29		1,000,000		6.9		1,000,000
	0.40		1,000,000		5.7		1,000,000
	0.45		31,000,000		5.4		31,000,000
			162,305,394		7.2		123,108,727

Notes Payable, Net (Details) - Schedule of notes payable (Parentheticals) - Vehicle [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Notes Payable, Net (Details) - Schedule of notes payable (Parentheticals) [Line Items]
Monthly payments	$ 539	$ 539
Interest rate	10.80%	10.80%
Debt term	36 months	36 months

Intangible Assets, Net (Other Than Goodwill)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

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

The Company’s intangible assets consist of intellectual property acquired from 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 March 31, 2021:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Useful Lives	10 Years			5 Years			10 Years			N/A

Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	128,308		$	4,527,476
Additions		-			-			-			4,424			4,424
Amortization		(41,196	)		(233,220	)		(20,351	)		(3,328	)		(298,095	)
Carrying Value at March 31, 2021	$	770,107		$	2,938,174		$	396,120		$	129,404		$	4,233,805

The following is a summary of intangible assets as of March 31, 2021

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Cost	$	1,587,159		$	4,476,271		$	828,580		$	136,022		$	7,028,032
Accumulated amortization		(817,052	)		(1,538,097	)		(432,460	)		(6,618	)		(2,794,227	)
Carrying Value at March 31, 2021	$	770,107		$	2,938,174		$	396,120		$	129,404		$	4,233,805

Amortization expense totaled $298,095 and $289,686 for the three months ended March 31, 2021 and 2020, respectively.

Future expected amortization of intangible assets is as follows:

Fiscal Year Ending December 31,
Remainder of 2021	$	1,162,977
2022		1,092,977
2023		1,007,995
2024		662,007
2025		246,454
Thereafter		61,395
	$	4,233,805

Lease Obligation Payable (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Schedule of lease obligation payable

Year ending December 31
2021	$	32,322
2022		10,774
Total minimum lease payments		43,096
Less: Amount representing interest		(2,675	)
Present value of minimum lease payments	$	40,421

Basis of Presentation (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
Basis of Presentation (Details) - USD ($)	Oct. 30, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jan. 31, 2021
Basis of Presentation (Details) [Line Items]
Accumulated deficit		$ 100,700,000
Revenue		588,999	$ 793,789
Loss from operations		(2,186,910)	$ (2,672,608)
Loans receivable					$ 486,000
Inventory valuation allowance		18,000		$ 18,000
Cards Plus		24,000		88,000
Deferred revenue contract liability		530,000		150,000
Contract liability		$ 533,000		$ 150,000
Securities Purchase Agreements [Member]
Basis of Presentation (Details) [Line Items]
Number of common stock purchased, shares (in Shares)	52,435,000
Securities Purchase Agreements [Member] \| Warrant [Member]
Basis of Presentation (Details) [Line Items]
Number of common stock purchased, shares (in Shares)	26,217,500
Term Of Warrant	5 years
Warrant exercise price (in Dollars per share)	$ 0.15
Aggregate purchase price (in Dollars per share)	$ 5,240,000

Notes Payable, Net (Tables)

3 Months Ended

Mar. 31, 2021

Notes Payable [Abstract]

Schedule of notes payable

	March 31, 2021		December 31, 2020

Paycheck Protection Program Loans	$	971,520		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		6,098		7,526
Notes Payable, Net	$	977,618	$	493,286
Notes Payable, current portion,	$	6,098	$	5,947
Notes Payable, net of current portion		971,520		487,339
	$	977,618	$	493,286

Segment Information (Details) - Schedule of geographic region and reconciliation consolidated revenue, gross profit, and net loss - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Revenues:
Revenues, net	$ 588,999	$ 793,789
Loss From Operations:
Loss From Operations	(2,186,910)	(2,672,608)
Interest Expense	(297,438)	(179,050)
Other income/(expense)	1,537	(975,889)
Loss before income taxes	(2,482,811)	(3,827,547)
Income tax expense	(7,188)	(8,874)
Net loss	(2,489,999)	(3,836,421)
North America [Member]
Net Revenues:
Revenues, net	148,060	133,554
Loss From Operations:
Loss From Operations	(1,270,403)	(407,392)
South America [Member]
Net Revenues:
Revenues, net	96,183	113,624
Loss From Operations:
Loss From Operations	(731,688)	(1,212,152)
Africa [Member]
Net Revenues:
Revenues, net	344,756	546,611
Loss From Operations:
Loss From Operations	(184,819)	(1,053,064)
Identity Management [Member]
Net Revenues:
Revenues, net	492,816	680,165
Loss From Operations:
Loss From Operations	(1,455,222)	(1,460,456)
Payment Processing [Member]
Net Revenues:
Revenues, net	96,183	113,624
Loss From Operations:
Loss From Operations	$ (731,688)	$ (1,212,152)

Other Assets

3 Months Ended

Mar. 31, 2021

Other Assets [Abstract]

OTHER ASSETS

NOTE 3 – OTHER ASSETS

Other assets consisted of the following at March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020

Operating lease right of use assets	$	44,489	$	49,856
Other		176,889		190,367
	$	221,378	$	240,223

Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of potentially dilutive securities

Security
	2021		2020
Convertible notes payable		34,047,500		35,476,705
Warrants		42,339,235		47,453,227
Stock options		162,305,394		109,823,340
		238,692,129		192,753,272

Lease Obligation Payable (Details)	3 Months Ended
Lease Obligation Payable (Details)	Mar. 31, 2021 USD ($)
Leases [Abstract]
Lease equipment	$ 163,407
Accumulated amortization	$ 131,261
Lease obligation interest rate	12.00%

Other Assets (Details) - Schedule of other assets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of other assets [Abstract]
Operating lease right of use assets	$ 44,489	$ 49,856
Other	176,889	190,367
Total other assets	$ 221,378	$ 240,223

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 2,618,078	$ 3,765,277
Accounts receivable, net	618,586	72,986
Current portion of net investment in direct financing lease	74,645	72,682
Inventory, net	123,495	254,951
Other current assets	301,351	237,769
Total current assets	3,736,155	4,403,665
Property and Equipment, net	88,135	97,829
Other Assets	221,378	240,223
Intangible Assets, net	4,233,805	4,527,476
Goodwill	4,183,232	4,183,232
Net investment in direct financing lease, net of current portion	402,608	422,021
Total assets	12,865,313	13,874,446
Current Liabilities:
Accounts payable and accrued expenses	2,537,461	2,665,132
Notes payable, current portion	6,098	5,947
Convertible debt, net of discounts	5,812,650
Finance lease obligation, current portion	40,421	39,232
Contract liabilities	556,882	237,690
Total current liabilities	8,953,512	2,948,001
Finance lease obligation, net of current portion		10,562
Notes payable, net of current portion	971,520	487,339
Convertible debt, net of discounts		5,800,976
Other liabilities	59,506	47,809
Total liabilities	9,984,538	9,294,687
Commitments and Contingencies (Note 12)
Stockholders’ Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 603,486,888 and 589,272,023 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	60,348	58,927
Additional paid in capital	103,343,579	102,594,341
Accumulated deficit	(100,724,150)	(98,234,151)
Accumulated comprehensive income	200,998	160,642
Total stockholders’ equity	2,880,775	4,579,759
Total liabilities and stockholders’ equity	$ 12,865,313	$ 13,874,446

Intangible Assets, Net (Other Than Goodwill) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 298,095	$ 289,686

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of geographic region and reconciliation to consolidated revenue, gross profit, and net loss

	(unaudited) Three Months Ended
	March 31, 2021			March 31, 2020
Net Revenues:
North America	$	148,060		$	133,554
South America		96,183			113,624
Africa		344,756			546,611
		588,999			793,789

Identity Management		492,816			680,165
Payment Processing		96,183			113,624
		588,999			793,789

Loss From Operations:
North America		(1,270,403	)		(407,392	)
South America		(731,688	)		(1,212,152	)
Africa		(184,819	)		(1,053,064	)
		(2,186,910	)		(2,672,608	)

Identity Management		(1,455,222	)		(1,460,456	)
Payment Processing		(731,688	)		(1,212,152	)
		(2,186,910	)		(2,672,608	)

Interest Expense		(297,438	)		(179,050	)
Other income/(expense)		1,537			(975,889	)

Loss before income taxes		(2,482,811	)		(3,827,547	)

Income tax expense		(7,188	)		(8,874	)

Net loss	$	(2,489,999	)	$	(3,836,421	)

Stockholder's Equity (Details) - Schedule of warrant activity - Warrant [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Class of Warrant or Right [Line Items]
Number of Shares, Outstanding balance at beginning		54,697,021
Weighted Average Exercise Price, Outstanding balance at beginning		$ 0.14
Weighted Average Remaining Life, Outstanding balance at beginning		3 years 146 days
Number of Shares, Exercised/cancelled	(12,357,786)
Weighted Average Exercise Price, Exercised/cancelled	$ 0.10
Number of Shares, Outstanding balance at ending	42,339,235
Weighted Average Exercise Price, Outstanding balance at ending	$ 0.15
Weighted Average Remaining Life, Outstanding balance at ending	4 years

Direct Financing Lease (Details) - USD ($)	1 Months Ended	3 Months Ended
Direct Financing Lease (Details) - USD ($)	Sep. 30, 2015	Mar. 31, 2021
Direct Financing Lease (Details) [Line Items]
Incremental revenue		$ 13,000
Estimated under direct lease		748,000
Aggregate minimum future lease payments		1,422,000
Unearned income		$ 474,000
Cash Collection Services (the "Contract") [Member]
Direct Financing Lease (Details) [Line Items]
Lease contract term	10 years
Lease monthly rental	$ 11,900
Purchase price at the end of lease term (in Dollars per share)	$ 40
Receive monthly payments	$ 11,856
Lease rent expense	142,272
Estimated executory costs	$ 1,677

Impairment Loss

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

IMPAIRMENT LOSS

NOTE 13 – IMPAIRMENT LOSS

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.

During the quarter ended March 31, 2020, the Company recorded an impairment loss of approximately $0.9 million, associated with goodwill at Cards Plus as the carrying value may not be recovered as revenue assumptions and related profitability were revised downward. The Company reviews its projections as a result of the current pandemic and its potential impact on future results. The fair value of the reporting unit was determined using a discounted cash flow analysis.

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net Loss	$ (2,489,999)	$ (3,836,421)
Foreign currency translation gain (loss)	40,356	(116,264)
Comprehensive loss	$ (2,449,643)	$ (3,952,685)

- Definition

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

+ References

Reference 1: 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 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Accounts Payable and Accrued Expenses (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
Payables and Accruals [Abstract]
Accounts payable and accrued expenses	$ 392,000	$ 349,000

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	603,486,888	589,272,023
Common stock, shares outstanding	603,486,888	589,272,023

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2021	Apr. 30, 2021
Document Information Line Items
Entity Registrant Name	Ipsidy Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		604,308,061
Amendment Flag	false
Entity Central Index Key	0001534154
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Entity File Number	000-54545
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes

Related Party Transactions (Details) - USD ($)	3 Months Ended
Related Party Transactions (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Jan. 31, 2020
Related Party Transactions (Details) [Line Items]
Principal amount	$ 100,000
Remain due and payable amount	5,812,650
Network 1 Financial Securities Inc [Member]
Related Party Transactions (Details) [Line Items]
Cash fee	104,800
Theodore Stern and Philip Beck [Member]
Related Party Transactions (Details) [Line Items]
Invested in consideration	50,000
Herbert Selzer [Member]
Related Party Transactions (Details) [Line Items]
Invested in consideration	100,000
Stern Trust [Member]
Related Party Transactions (Details) [Line Items]
Principal amount	$ 2,000,000
Bearing interest rate	15.00%
Remain due and payable amount			$ 662,000
Repayment premium	50.00%
Phillip Kumnick [Member]
Related Party Transactions (Details) [Line Items]
Restricted common stock (in Shares)		1,500,000
Philip Broenniman [Member]
Related Party Transactions (Details) [Line Items]
Restricted common stock (in Shares)		1,500,000

Notes Payable, Net

3 Months Ended

Mar. 31, 2021

Notes Payable [Abstract]

NOTES PAYABLE, NET

NOTE 6 - NOTES PAYABLE, NET

The following is a summary of notes payable as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020

Paycheck Protection Program Loans	$	971,520		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		6,098		7,526
Notes Payable, Net	$	977,618	$	493,286
Notes Payable, current portion,	$	6,098	$	5,947
Notes Payable, net of current portion		971,520		487,339
	$	977,618	$	493,286

Paycheck Protection Program Loans

In May 2020, the Company received a loan of approximately $486,000 under the Paycheck Protection Program (“PPP”) as part of the CARES Act which is administered by the U.S. Small Business Association (“USSBA”) 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.

In January 2021, the Company received a second loan of approximately $486,000 under the PPP related to its U.S. Operations. The Company anticipates subject to approval by USSBA, if certain requirements are met the second loan will 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 January 31, 2023.

If the USSBA determines that either PPP loan was not properly obtained and/or expenditures supporting forgiveness were not appropriate, the Company would need to repay some or all of the PPP loans and record additional expense which could have a material adverse effect on the Company’s financial condition and results of operations in a future period.

Direct Financing Lease (Tables)

3 Months Ended

Mar. 31, 2021

Direct Financing Lease [Abstract]

Schedule of future minimum lease payments to be received

Year ending December 31
Remainder of 2021		91,611
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
Sub-total		620,919
Less deferred revenue		(143,666	)
Net investment in lease	$	477,253

Stockholder's Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 9 – STOCKHOLDER’S EQUITY

Common Stock

During the quarter ended March 31, 2021, shares of common stock were issued as a result of the following non-cash transactions:

●

Convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 989,000 shares of common stock of the Company.

●

Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 13,226,000 common shares of the Company.

During the quarter ended March 31, 2020, shares of common stock were issued as a result of the following transactions:

●

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 shares 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.

●

The Company issued approximately 106,000 shares of common stock to a third-party provider of services in lieu of cash compensation.

Warrants

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2021:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2020		54,697,021		$	0.14		3.4 Years
Exercised/cancelled		(12,357,786	)		0.10		-
Outstanding at March 31, 2021		42,339,235		$	0.15		4.0 Years

Stock Options

The Company did not grant any stock options in the first quarter of 2021.

Activity related to stock options for the three months ended March 31, 2021 is summarized as follows:

				Weighted Average		Weighted Average		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs.)		Value
Outstanding as of December 31, 2020		169,374,061		$	0.15		7.5	$	8,283,639
Granted		-			-		-		-
Exercised/cancelled		(7,068,667	)		0.05
Outstanding as of March 31, 2021		162,305,394			0.15		7.2	$	29,442,247
Exercisable as of March 31, 2021		123,108,727		$	0.18		6.7	$	20,362,319

The following table summarizes stock option information as of March 31, 2021:

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs).		Exercisable
$	0.0001		3,500,000		5.3		3,500,000
	0.05		26,700,006		6.2		23,950,006
	0.06		1,042,054		9.2		1,042,054
	0.07		50,000,000		9.2		26,000,000
	0.09		11,630,000		9.5		-
	0.10		27,200,000		6.3		27,200,000
	0.12		933,334		8.5		616,667
	0.13		250,000		7.4		250,000
	0.15		2,800,000		5.4		2,800,000
	0.22		2,583,333		7.6		2,083,333
	0.25		2,500,000		7.4		2,500,000
	0.26		166,667		7.9		166,667
	0.29		1,000,000		6.9		1,000,000
	0.40		1,000,000		5.7		1,000,000
	0.45		31,000,000		5.4		31,000,000
			162,305,394		7.2		123,108,727

During the three months ended March 31, 2021, the Company recognized approximately $614,000 of stock option based compensation expense of which approximately $452,000 relates to performance-based awards of director/officers. As of March 31, 2021, there was approximately $1,154,000 of unrecognized compensation costs related to stock options outstanding that will be expensed through 2023. Additionally, the Company recorded approximately $13,000 for restricted stock expense.

At the Annual Meeting of Stockholders held on March 22, 2021, the stockholders approved and ratified an increase of 75,000,000 shares of common stock allocated to the Company’s 2017 Incentive Stock Plan.

Subsequent event

On May 5, 2021, the Company granted options to acquire shares of common stock (“Stock Options”) at an exercise price equivalent to fair market value on the date of grant with an exercise period of ten years, as follows:

●

17,500,000 Stock Options to each of Mr. Kumnick and Mr. Broenniman subject to tranche vesting upon achieving certain corporate performance measures.

●

11,500,000 Stock Options to certain officers and employees that vest over a three-year period, subject to continued service.

●

Approximately 2,700,000 fully vested Stock Options for present and former non-employees Directors compensation for services from 2019 through April 30, 2021.

●

Approximately 1,300,000 Stock Options to two present non-employee Director that vest over a twelve-month period.

See Note 5 for additional information regarding accrued Directors’ compensation.

Stockholder's Equity (Details)	1 Months Ended	3 Months Ended		12 Months Ended
Stockholder's Equity (Details)	May 05, 2021	Mar. 31, 2021 USD ($) shares	Mar. 31, 2020 USD ($) shares	Dec. 31, 2020	Mar. 22, 2021 shares
Stockholder's Equity (Details) [Line Items]
Number of common shares issued for convertible notes, amount (in Dollars) \| $		$ 120,000
Number of common shares issued for convertible notes, shares		989,000
Common stock issued for warrants exercised		13,226,000
Number of common shares issued for services, shares			106,000
Stock-based compensation expense (in Dollars) \| $		$ 626,579	$ 169,110
Exercise period				7 years 6 months
2017 Incentive Stock Plan [Member]
Stockholder's Equity (Details) [Line Items]
Increase in shares of common stock					75,000,000
Subsequent Event [Member] \| Stock Options [Member]
Stockholder's Equity (Details) [Line Items]
Exercise period	10 years
Stock options, description	●17,500,000 Stock Options to each of Mr. Kumnick and Mr. Broenniman subject to tranche vesting upon achieving certain corporate performance measures. ●11,500,000 Stock Options to certain officers and employees that vest over a three-year period, subject to continued service. ●Approximately 2,700,000 fully vested Stock Options for present and former non-employees Directors compensation for services from 2019 through April 30, 2021. ●Approximately 1,300,000 Stock Options to two present non-employee Director that vest over a twelve-month period.
Employment Compensation [Member]
Stockholder's Equity (Details) [Line Items]
Number of common shares issued for services, shares			1,500,000
Restricted Common Stock [Member]
Stockholder's Equity (Details) [Line Items]
Number of common shares issued for services, shares			4,500,000
Employee Stock Option [Member]
Stockholder's Equity (Details) [Line Items]
Stock-based compensation expense (in Dollars) \| $		614,000
Unrecognized compensation costs (in Dollars) \| $		1,154,000
Restricted stock expense (in Dollars) \| $		13,000
Board of Directors [Member]
Stockholder's Equity (Details) [Line Items]
Number of common shares issued for services, shares			3,000,000
Number of directors			2
Director/officers [Member]
Stockholder's Equity (Details) [Line Items]
Stock-based compensation expense (in Dollars) \| $		$ 452,000

Commitments and Contingencies (Details) - Schedule of future minimum lease payments required under convertible operating leases	Mar. 31, 2021 USD ($)
Schedule of future minimum lease payments required under convertible operating leases [Abstract]
Remainder of 2021	$ 72,455
2022	49,716
Total operating lease payments	122,171
Less: Imputed interest	(9,807)
Total operating lease liabilities	$ 112,364

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	March 31, 2021		December 31, 2020
Trade payables	$	183,450	$	311,024
Accrued interest		704,624		554,755
Accrued payroll and related obligations		799,377		891,790
Current portion of operating lease liabilities		52,858		117,414
Other*		797,152		790,149
Total	$	2,537,461	$	2,665,132

Included in Other expenses is accrued non-employee Directors’ Compensation of approximately $392,000 and $349,000 as of March 31, 2021 and December 31, 2020, respectively. In May 2021, the Non-employee Directors were compensated for their service through a grant of stock options. See Note 9.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

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 three months ended March 31, 2021, lease expense was approximately $63,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of March 31, 2021 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	63,325

Operating lease ROU assets – included in Other Assets	$	44,489

Total operating lease assets	$	107,814

Liabilities:

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	52,858

Long-term portion of ROU liabilities – included in Other liabilities		59,506

Total operating lease liabilities	$	112,364

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 March 31, 2021:

Remainder of 2021	$	72,455
2022		49,716
Total operating lease payments		122,171
Less: Imputed interest		(9,807	)
Total operating lease liabilities	$	112,364

The Company rents office space in Long Beach, New York at a monthly cost of $2,500. 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 former CEO and Board Member along with his family.

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. Multipay extended the lease through April 2021. In April 2021, Multipay entered into a six-month lease for a monthly rental of approximately $1,375.

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.

Intangible Assets, Net (Other Than Goodwill) (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets, net (other than goodwill)

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Useful Lives	10 Years			5 Years			10 Years			N/A

Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	128,308		$	4,527,476
Additions		-			-			-			4,424			4,424
Amortization		(41,196	)		(233,220	)		(20,351	)		(3,328	)		(298,095	)
Carrying Value at March 31, 2021	$	770,107		$	2,938,174		$	396,120		$	129,404		$	4,233,805

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Cost	$	1,587,159		$	4,476,271		$	828,580		$	136,022		$	7,028,032
Accumulated amortization		(817,052	)		(1,538,097	)		(432,460	)		(6,618	)		(2,794,227	)
Carrying Value at March 31, 2021	$	770,107		$	2,938,174		$	396,120		$	129,404		$	4,233,805

Schedule of future amortization expense of intangible assets

Fiscal Year Ending December 31,
Remainder of 2021	$	1,162,977
2022		1,092,977
2023		1,007,995
2024		662,007
2025		246,454
Thereafter		61,395
	$	4,233,805

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Products and services	$ 575,913	$ 778,938
Lease income	13,086	14,851
Total revenues, net	588,999	793,789
Operating Expenses:
Cost of sales	216,144	355,723
General and administrative	1,927,926	1,504,255
Research and development	322,010	430,401
Impairment loss		871,807
Depreciation and amortization	309,829	304,211
Total operating expenses	2,775,909	3,466,397
Loss from operations	(2,186,910)	(2,672,608)
Other Expense:
Other income, net	1,537	9,953
Debt extinguishment		(985,842)
Interest expense, net	(297,438)	(179,050)
Other expense, net	(295,901)	(1,154,939)
Loss before income taxes	(2,482,811)	(3,827,547)
Income Tax Expense	(7,188)	(8,874)
Net loss	$ (2,489,999)	$ (3,836,421)
Net Loss Per Share - Basic and Diluted (in Dollars per share)	$ 0.00	$ (0.01)
Weighted Average Shares Outstanding - Basic and Diluted (in Shares)	592,768,709	519,436,402

Impairment Loss (Details) $ in Millions	3 Months Ended
Impairment Loss (Details) $ in Millions	Mar. 31, 2021 USD ($)
Restructuring and Related Activities [Abstract]
Goodwill impairment loss	$ 0.9

Direct Financing Lease (Details) - Schedule of future minimum lease payments to be received	Dec. 31, 2021 USD ($)
Schedule of future minimum lease payments to be received [Abstract]
Remainder of 2021	$ 91,611
2022	122,148
2023	122,148
2024	122,148
2025	122,148
Thereafter	40,716
Sub-total	620,919
Less deferred revenue	(143,666)
Net investment in lease	$ 477,253

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,489,999)	$ (3,836,421)
Adjustments to reconcile net loss with cash flows from operations:
Depreciation and amortization expense	309,829	304,211
Stock-based compensation	626,579	169,110
Extinguishment of note payable		985,842
Amortization of debt discounts and issuance costs	131,674	95,948
Impairment losses		871,807
Changes in operating assets and liabilities:
Accounts receivable	(543,955)	(450,291)
Net investment in direct financing lease	17,450	15,686
Other current assets	(63,582)	355,880
Inventory	129,863	37,714
Accounts payable and accrued expenses	(124,665)	156,085
Contract liabilities	319,192	121,719
Other liabilities	11,697
Net cash flows from operating activities	(1,675,917)	(1,172,710)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(2,394)
Purchase of intangible assets	(4,424)
Decrease (increase) in other assets	18,845	(128,676)
Net cash flows from investing activities	14,421	(131,070)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible note payable		1,510,000
Payment of debt issuance costs		(104,800)
Proceeds from Paycheck Protection Program Loan	485,760
Principal payments on finance lease obligation and notes payable	(10,801)	(9,600)
Net cash flows from financing activities	474,959	1,395,600
Effect of Foreign Currencies	39,338	(96,653)
Net Change in Cash	(1,147,199)	(4,833)
Cash, Beginning of the Period	3,765,277	567,081
Cash, End of the Period	2,618,078	562,248
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	8,779	2,792
Cash paid for income taxes	7,188	8,874
Modification of warrants issued with convertible debt		95,223
Exchange of notes payable and accrued interest for convertible notes payable		2,662,000
Settlement of accounts payable with issuance of common stock		8,270
Conversion of convertible note payable and accrued interest to common stock	124,080
Equity reclassification due to cashless option and warrant exercises	$ 1,322

Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding	Mar. 31, 2021 USD ($)
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	$ 5,812,650
Unamortized discount on convertible notes	(376,876)
Unamortized debt issuance costs	(45,474)
8% convertible notes payable issued December 2019 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	383,000
15% convertible notes payable issued February 2020 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	5,190,000
10% convertible notes payable issued February 2020 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	$ 662,000

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of future amortization expense of intangible assets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of future amortization expense of intangible assets [Abstract]
Remainder of 2021	$ 1,162,977
2022	1,092,977
2023	1,007,995
2024	662,007
2025	246,454
Thereafter	61,395
Total	$ 4,233,805	$ 4,527,476

Stockholder's Equity (Details) - Schedule of outstanding stock options - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Schedule of outstanding stock options [Abstract]
Number of Shares, Outstanding at beginning		169,374,061
Weighted Average Exercise Price, Outstanding at beginning		$ 0.15
Weighted Average Contractual Term (Yrs.), Outstanding at beginning		7 years 6 months
Aggregate Intrinsic Value, Outstanding at beginning		$ 8,283,639
Number of Shares, Granted
Weighted Average Exercise Price, Granted
Weighted Average Contractual Term (Yrs.), Granted
Aggregate Intrinsic Value, Granted
Number of Shares, Exercised/cancelled	(7,068,667)
Weighted Average Exercise Price, Exercised/cancelled	$ 0.05
Weighted Average Contractual Term (Yrs.), Exercised/cancelled
Aggregate Intrinsic Value, Exercised/cancelled
Number of Shares, Outstanding at ending	162,305,394
Weighted Average Exercise Price, Outstanding at ending	$ 0.15
Weighted Average Contractual Term (Yrs.), Outstanding at ending	7 years 73 days
Aggregate Intrinsic Value, Outstanding at ending	$ 29,442,247
Number of Shares, Exercisable at ending	123,108,727
Weighted Average Exercise Price, Exercisable at ending	$ 0.18
Weighted Average Contractual Term (Yrs.), Exercisable at ending	6 years 255 days
Aggregate Intrinsic Value, Exercisable at ending	$ 20,362,319

Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Trade payables	$	183,450	$	311,024
Accrued interest		704,624		554,755
Accrued payroll and related obligations		799,377		891,790
Current portion of operating lease liabilities		52,858		117,414
Other*		797,152		790,149
Total	$	2,537,461	$	2,665,132

Basis of Presentation

3 Months Ended

Mar. 31, 2021

Accounting Policies [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, 2020. The results of operations for the three months ended March 31, 2021 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 March 31, 2021, the Company had an accumulated deficit of approximately $100.7 million. For the three months ended March 31, 2021 the Company earned revenue of approximately $0.6 million and incurred a loss from operations of approximately $2.2 million.

The reports of our independent registered public accounting firm on our consolidated financial statements for the years ended December 31, 2020 and 2019 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 October 30, 2020 and on November 6, 2020, the Company entered into Securities Purchase Agreements with several accredited investors (the “October 2020 Accredited Investors”) pursuant to which the October 2020 Accredited Investors agreed to purchase an aggregate of 52,435,000 shares of the Company’s common stock together with Warrants to acquire 26,217,500 shares of common stock for a term of five years at an exercise price of $0.15 per share for an aggregate purchase price of approximately $5.24 million. In January 2021, the Company received a second loan of approximately $486,000 under the Paycheck Protection Program (“PPP”) of the U.S. Small Business Association (“USSBA”) related to its U.S. operations.

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 thereafter 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.

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 three months ended March 31, 2021 and 2020 because their effect was antidilutive:

Security
	2021		2020
Convertible notes payable		34,047,500		35,476,705
Warrants		42,339,235		47,453,227
Stock options		162,305,394		109,823,340
		238,692,129		192,753,272

Inventories

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 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

Inventories at March 31, 2021 and December 31, 2020 consist of cards inventory. As of March 31, 2021 and December 31, 2020, the Company recorded an inventory valuation allowance of approximately $18,000 to reflect net realizable value of the cards inventory.

Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period.

Revenue Recognition

Cards Plus – The Company recognizes revenue for the design and production of cards at the point in time when products are shipped, 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. As of March 31, 2021 and December 31, 2020, Cards Plus had approximately $24,000 and $88,000, respectively, of contract liability from payments received in advance that will be earned in future periods.

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

Identity Solutions Software – The Company recognizes revenue based on the identified performance obligations over the performance period for fixed consideration and for variable fees generated that are earned on a usage fee based over time based on monthly transaction volumes or on a monthly flat fee rate. The Company had a contract liability of approximately $530,000 and $150,000 as of March 31, 2021 and December 31, 2020 certain revenue that will be earned in future periods. The majority of the $150,000 of deferred revenue contract liability as of December 31, 2020 was earned in the first quarter of fiscal year 2021. As of March 31, 2021, the majority of the deferred revenue contract liability of $533,000 will be recognized in the ensuing four quarters. We have allocated the selling price in the contract to one customer; the contract has multiple performance obligations based on the contract selling price that we believe represents a standalone selling 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 identity services that 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.

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.

Related Party Transactions

3 Months Ended

Mar. 31, 2021

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

Convertible Notes Payable

Theodore Stern and Philip Beck, members of the board of directors of the Company at that time, 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. 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.

Issuance of Common Stock

During the quarter ended March 31, 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 March 31, 2020.

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 Directors maintains a partnership with a principal of Network 1.

Property and Equipment, Net

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 2 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Property and equipment	$	297,839		$	297,839
Equipment under finance lease (see Note 10)		163,407			163,407
		461,246			461,246
Less Accumulated depreciation		(373,111	)		(363,417	)
Property and equipment, net	$	88,135		$	97,829

Depreciation expense totaled $11,734 and $14,525 for the three months ended March 31, 2021 and 2020, respectively.

Lease Obligation Payable (Details) - Schedule of lease obligation payable	Mar. 31, 2021 USD ($)
Schedule of lease obligation payable [Abstract]
2021	$ 32,322
2022	10,774
Total minimum lease payments	43,096
Less: Amount representing interest	(2,675)
Present value of minimum lease payments	$ 40,421

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets, net (other than goodwill)	3 Months Ended
	Mar. 31, 2021 USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	$ 4,527,476
Additions	4,424
Amortization	(298,095)
Carrying Value at ending	4,233,805
Cost	7,028,032
Accumulated amortization	$ (2,794,227)
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 811,303
Additions
Amortization	(41,196)
Carrying Value at ending	770,107
Cost	1,587,159
Accumulated amortization	$ (817,052)
Acquired And Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years
Carrying Value at beginning	$ 3,171,394
Additions
Amortization	(233,220)
Carrying Value at ending	2,938,174
Cost	4,476,271
Accumulated amortization	$ (1,538,097)
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at beginning	$ 416,471
Additions
Amortization	(20,351)
Carrying Value at ending	396,120
Cost	828,580
Accumulated amortization	$ (432,460)
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives
Carrying Value at beginning	$ 128,308
Additions	4,424
Amortization	(3,328)
Carrying Value at ending	129,404
Cost	136,022
Accumulated amortization	$ (6,618)

Convertible Notes Payable (Details) - Schedule of future maturities of convertible debt	Mar. 31, 2021 USD ($)
Schedule of future maturities of convertible debt [Abstract]
2021
2022	6,235,000
Total convertible notes payable	$ 6,235,000

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balances at Dec. 31, 2019	$ 51,812	$ 94,982,167	$ (86,935,593)	$ 177,385	$ 8,275,771
Balances (in Shares) at Dec. 31, 2019	518,125,454
Modification of warrants issued with debt		95,223			95,223
Stock-based compensation	$ 450	168,660			169,110
Stock-based compensation (in Shares)	4,500,000
Issuance of common stock to settle accounts payable	$ 11	8,259			8,270
Issuance of common stock to settle accounts payable (in Shares)	106,192
Net loss			(3,836,421)		(3,836,421)
Foreign currency translation				(116,264)	(116,264)
Balances at Mar. 31, 2020	$ 52,273	95,254,309	(90,772,014)	61,121	4,595,689
Balances (in Shares) at Mar. 31, 2020	522,731,646
Balances at Dec. 31, 2020	$ 58,927	102,594,341	(98,234,151)	160,642	4,579,759
Balances (in Shares) at Dec. 31, 2020	589,272,023
Stock-based compensation		626,579			626,579
Convertible note and accrued interest converted to common stock	$ 99	123,981			124,080
Convertible note and accrued interest converted to common stock (in Shares)	988,500
Cashless stock option exercises	$ 534	(534)
Cashless stock option exercises (in Shares)	5,343,599
Cashless warrant exercise	$ 788	(788)
Cashless warrant exercise (in Shares)	7,882,766
Net loss			(2,489,999)		(2,489,999)
Foreign currency translation				40,356	40,356
Balances at Mar. 31, 2021	$ 60,348	$ 103,343,579	$ (100,724,150)	$ 200,998	$ 2,880,775
Balances (in Shares) at Mar. 31, 2021	603,486,888

Segment Information (Details) $ in Millions	3 Months Ended
Segment Information (Details) $ in Millions	Mar. 31, 2021 USD ($)
Segment Information (Details) [Line Items]
Number of reportable segments	2
North America [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	$ 7.3
South America [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	0.7
Africa [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	$ 1.3

Convertible Notes Payable (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of convertible notes payable outstanding

8% convertible notes payable issued December 2019	$	383,000
15% convertible notes payable issued February 2020		5,190,000
10% convertible notes payable issued February 2020		662,000
Unamortized discount on convertible notes		(376,876	)
Unamortized debt issuance costs		(45,474	)

	$	5,812,650

Schedule of future maturities of convertible debt

2021	$	-
2022		6,235,000

	$	6,235,000

Other Assets (Tables)

3 Months Ended

Mar. 31, 2021

Other Assets [Abstract]

Schedule of other assets

	March 31, 2021		December 31, 2020

Operating lease right of use assets	$	44,489	$	49,856
Other		176,889		190,367
	$	221,378	$	240,223

Commitments and Contingencies (Details) - USD ($)	1 Months Ended		3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Apr. 30, 2021	Apr. 30, 2017	Mar. 31, 2021
Commitments and Contingencies (Details) [Line Items]
Short term lease expense			$ 63,000
Weighted average lease term			1 year 292 days
Weighted average discount rate			13.55%
New Office Facilities [Member] \| Subsequent Event [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments	$ 1,375
Long Beach, New York [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments			$ 2,500
Agreement term			30 years
South Africa [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments			$ 8,000
Lease term			Jun. 30, 2022
MultiPay S.A.S [Member] \| COLOMBIA [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments		$ 8,500
Agreement term		1 year
Extended agreement term		1 year

Commitments and Contingencies (Details) - Schedule of related lease balance	Mar. 31, 2021 USD ($)
Assets:
Current portion of operating lease ROU assets - included in other current assets	$ 63,325
Operating lease ROU assets – included in Other Assets	44,489
Total operating lease assets	107,814
Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	52,858
Long-term portion of ROU liabilities – included in Other liabilities	59,506
Total operating lease liabilities	$ 112,364

Notes Payable, Net (Details) - Senior Unsecured Note [Member] - USD ($)	1 Months Ended
	Jan. 31, 2021	May 31, 2020
Notes Payable, Net (Details) [Line Items]
Loan amount	$ 486,000	$ 486,000
Maturity date	Jan. 31, 2023	May 05, 2022
Interest rate	1.00%	1.00%

Notes Payable, Net (Details) - Schedule of notes payable - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of notes payable [Abstract]
Paycheck Protection Program Loans	$ 971,520	$ 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	6,098	7,526
Notes Payable, Net	977,618	493,286
Notes Payable, current portion,	6,098	5,947
Notes Payable, net of current portion	971,520	487,339
Total	$ 977,618	$ 493,286

Lease Obligation Payable

3 Months Ended

Mar. 31, 2021

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. The cost basis of the lease equipment is $163,407 and the accumulated amortization as of March 31, 2021 is $131,261. 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 March 31, 2021. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022.

Year ending December 31
2021	$	32,322
2022		10,774
Total minimum lease payments		43,096
Less: Amount representing interest		(2,675	)
Present value of minimum lease payments	$	40,421

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of related lease balance

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	63,325

Operating lease ROU assets – included in Other Assets	$	44,489

Total operating lease assets	$	107,814

Liabilities:

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	52,858

Long-term portion of ROU liabilities – included in Other liabilities		59,506

Total operating lease liabilities	$	112,364

Schedule of future minimum lease payments required under convertible operating leases

Remainder of 2021	$	72,455
2022		49,716
Total operating lease payments		122,171
Less: Imputed interest		(9,807	)
Total operating lease liabilities	$	112,364

Property and Equipment, Net (Details) - USD ($)	3 Months Ended
Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 11,734	$ 14,525