0001213900-21-040890 | S-1/A | XBRL Viewer

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Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2021
Document Information Line Items
Entity Registrant Name	IPSIDY INC.
Document Type	S-1/A
Amendment Flag	true
Amendment Description	Amendment No. 2
Entity Central Index Key	0001534154
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, 2021	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 1,805,414	$ 3,765,277	$ 567,081
Accounts receivable, net	201,939	72,986	125,859
Current portion of net investment in direct financing lease	76,661	72,682	65,333
Inventory	138,781	254,951	173,575
Other current assets	650,308	237,769	753,505
Total current assets	2,873,103	4,403,665	1,685,353
Property and Equipment, net	148,493	97,829	161,820
Other Assets	136,163	240,223	383,066
Intangible Assets, net	3,941,547	4,527,476	5,593,612
Goodwill	4,183,232	4,183,232	5,218,861
Net investment in direct financing lease, net of current portion	382,671	422,021	494,703
Total assets	11,665,209	13,874,446	13,537,415
Current Liabilities:
Accounts payable and accrued expenses	2,103,954	2,665,132	2,215,912
Notes payable obligation, current portion	4,632	5,947	5,341
Capital lease obligation, current portion	30,763	39,232	34,816
Contract liabilities		237,690	425,276
Convertible debt	662,000
Deferred revenue	461,083	237,690
Total current liabilities	3,262,432	2,948,001	2,681,345
Long-term liabilities:
Capital lease obligation, net of current portion		10,562	49,794
Notes payable, net of discounts and current portion	485,760	487,339	1,970,937
Convertible debt		5,800,976	428,000
Other liabilities		47,809	131,568
Total liabilities	3,748,192	9,294,687	5,261,644
Commitments and Contingencies (Note 13)
Stockholders’ Equity:
Common stock value	2,137	1,964	1,727
Additional paid in capital	111,493,973	102,651,304	95,032,252
Accumulated deficit	(103,781,760)	(98,234,151)	(86,935,593)
Accumulated comprehensive income	202,667	160,642	177,385
Total stockholders’ equity	7,917,017	4,579,759	8,275,771
Total liabilities and stockholders’ equity	$ 11,665,209	$ 13,874,446	$ 13,537,415

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, shares issued	21,363,027	19,642,401	17,270,848
Common stock, shares outstanding	21,363,027	19,642,401	17,270,848

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Products and services	$ 565,165	$ 306,692	$ 1,141,078	$ 1,085,630	$ 2,083,829	$ 2,488,624
Lease income	12,616	14,427	25,702	29,278	56,815	63,421
Total revenues, net	577,781	321,119	1,166,780	1,114,908	2,140,644	2,552,045
Operating Expenses:
Cost of Sales	156,905	61,798	373,049	417,521	661,627	669,523
General and administrative	3,049,700	2,389,794	4,977,626	3,872,916	6,743,258	7,892,046
Research and development	347,173	190,339	669,183	620,740	1,161,416	1,614,054
Impairment loss		163,822		1,035,629	1,333,566	1,671,804
Depreciation and amortization	314,590	321,987	624,419	647,331	1,250,542	790,367
Total operating expenses	3,868,368	3,127,740	6,644,277	6,594,137	11,150,409	12,637,794
Loss from operations	(3,290,587)	(2,806,621)	(5,477,497)	(5,479,229)	(9,009,765)	(10,085,749)
Other Expense:
Warrant exercise inducement expense		(366,795)		(366,795)	(366,795)
Extinguishment of debt - gain (loss)	485,760		485,760	(985,842)	(985,842)
Other income	6,121	24,713	7,658	34,666	69,563	23,920
Interest expense, net	(256,550)	(310,153)	(553,988)	(489,203)	(969,396)	(375,598)
Other income (expense), net	235,331	(652,235)	(60,570)	(1,807,174)	(2,252,470)	(351,678)
Loss before income taxes	(3,055,256)	(3,458,856)	(5,538,067)	(7,286,403)	(11,262,235)	(10,437,427)
Income Tax Expense	(2,354)	(3,592)	(9,542)	(12,466)	(36,323)	(62,931)
Net loss	$ (3,057,610)	$ (3,462,448)	$ (5,547,609)	$ (7,298,869)	$ (11,298,558)	$ (10,500,358)
Net Loss Per Share - Basic and Diluted (in Dollars per share)	$ (0.15)	$ (0.20)	$ (0.28)	$ (0.42)	$ (0.63)	$ (0.63)
Weighted Average Shares Outstanding - Basic and Diluted (in Shares)	20,248,868	17,441,164	20,003,913	17,473,583	18,067,403	16,624,913

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net Loss	$ (3,057,610)	$ (3,462,448)	$ (5,547,609)	$ (7,298,869)	$ (11,298,558)	$ (10,500,358)
Foreign currency translation gain (loss)	1,669	80,235	42,025	(36,029)	(16,743)	(30,369)
Comprehensive loss	$ (3,055,941)	$ (3,382,213)	$ (5,505,584)	$ (7,334,898)	$ (11,315,301)	$ (10,530,727)

- 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
Balances at Dec. 31, 2018	$ 1,597	$ 90,816,980	$ (76,435,235)	$ 207,754	$ 14,591,096
Balances (in Shares) at Dec. 31, 2018	15,965,033
Issuance of common stock for cash	$ 129	2,928,183			2,928,312
Issuance of common stock for cash (in Shares)	1,292,125
Common stock issued for services	$ 1	41,070			41,071
Common stock issued for services (in Shares)	13,690
Stock-based compensation		1,246,019			1,246,019
Net loss			(10,500,358)		(10,500,358)
Foreign currency translation				(30,369)	(30,369)
Balances at Dec. 31, 2019	$ 1,727	95,032,252	(86,935,593)	177,385	8,275,771
Balances (in Shares) at Dec. 31, 2019	17,270,848
Modification of warrants issued with debt		95,223			95,223
Sale of common stock for cash	$ 11	199,989			200,000
Sale of common stock for cash (in Shares)	114,719
Warrant exercise	$ 68	1,248,915			1,248,983
Warrant exercise (in Shares)	682,700
Warrant exercise inducement		366,795			366,795
Stock-based compensation	$ 15	629,978			629,993
Stock-based compensation (in Shares)	150,000
Issuance of common stock to settle accounts payable	$ 0	8,270			8,270
Issuance of common stock to settle accounts payable (in Shares)	3,540
Net loss			(7,298,869)		(7,298,869)
Foreign currency translation				(36,029)	(36,029)
Balances at Jun. 30, 2020	$ 1,822	97,581,422	(94,234,462)	141,356	3,490,138
Balances (in Shares) at Jun. 30, 2020	18,221,807
Balances at Dec. 31, 2019	$ 1,727	95,032,252	(86,935,593)	177,385	8,275,771
Balances (in Shares) at Dec. 31, 2019	17,270,848
Modification of warrants issued with debt		95,223			95,223
Sale of common stock for cash	$ 186	5,076,929			5,076,455
Sale of common stock for cash (in Shares)	1,862,552
Warrant and stock option cashless exercises	$ 6	(6)
Warrant and stock option cashless exercises (in Shares)	56,094
Stock repurchase	$ (50)	49			(1)
Stock repurchase (in Shares)	(500,000)
Warrant exercise	$ 68	1,248,915			1,248,983
Warrant exercise (in Shares)	682,700
Warrant exercise inducement		366,795			366,795
Stock-based compensation	$ 27	823,757			823,564
Stock-based compensation (in Shares)	266,667
Issuance of common stock to settle accounts payable		8,270			8,270
Issuance of common stock to settle accounts payable (in Shares)	3,540
Net loss			(11,298,558)		(11,298,558)
Foreign currency translation				(16,743)	(16,743)
Balances at Dec. 31, 2020	$ 1,964	102,651,304	(98,234,151)	160,642	4,579,759
Balances (in Shares) at Dec. 31, 2020	19,642,519
Balances at Mar. 31, 2020	$ 1,742	95,304,840	(90,772,014)	61,121	4,595,689
Balances (in Shares) at Mar. 31, 2020	17,424,388
Sale of common stock for cash	$ 11	199,989			200,000
Sale of common stock for cash (in Shares)	114,719
Warrant exercise	$ 68	1,248,915			1,248,983
Warrant exercise (in Shares)	682,700
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
Balances at Jun. 30, 2020	$ 1,822	97,581,422	(94,234,462)	141,356	3,490,138
Balances (in Shares) at Jun. 30, 2020	18,221,807
Balances at Dec. 31, 2020	$ 1,964	102,651,304	(98,234,151)	160,642	4,579,759
Balances (in Shares) at Dec. 31, 2020	19,642,519
Stock-based compensation		2,261,126			2,261,126
Settlement of accrued expense with stock options		349,376			349,376
Convertible notes converted to common stock	$ 117	6,232,223			6,232,340
Convertible notes converted to common stock (in Shares)	1,171,296
Cashless stock option exercise	$ 30	(30)
Cashless stock option exercise (in Shares)	286,453
Cashless warrant exercise	$ 26	(26)
Cashless warrant exercise (in Shares)	262,759
Net loss			(5,547,609)		(5,547,609)
Foreign currency translation				42,025	42,025
Balances at Jun. 30, 2021	$ 2,137	111,493,973	(103,781,760)	202,667	7,917,017
Balances (in Shares) at Jun. 30, 2021	21,363,027
Balances at Mar. 31, 2021	$ 2,012	103,401,916	(100,724,150)	200,998	2,880,776
Balances (in Shares) at Mar. 31, 2021	20,116,348
Stock-based compensation		1,634,546			1,634,546
Settlement of accrued expense with stock options		349,376			349,376
Convertible notes converted to common stock	$ 114	6,108,146			6,108,260
Convertible notes converted to common stock (in Shares)	1,138,346
Cashless stock option exercise	$ 11	(11)
Cashless stock option exercise (in Shares)	108,333
Net loss			(3,057,610)		(3,057,610)
Foreign currency translation				1,669	1,669
Balances at Jun. 30, 2021	$ 2,137	$ 111,493,973	$ (103,781,760)	$ 202,667	$ 7,917,017
Balances (in Shares) at Jun. 30, 2021	21,363,027

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,547,609)	$ (7,298,869)	$ (11,298,558)	$ (10,500,358)
Adjustments to reconcile net loss with cash flows from operations:
Depreciation and amortization expense	624,419	600,978	1,250,542	790,367
Stock-based compensation	2,261,126	629,993	823,564	1,246,019
Extinguishment of note payable		985,481	985,842
Warrant exercise inducement expense		366,795	366,795
Impairment loss/write-off of assets			1,333,566	1,671,804
Amortization of debt discounts and issuance costs	237,435	214,668	451,749	109,764
Stock issued for services				41,071
Impairment losses		1,059,495
Forgiveness of note payable	(485,760)
Changes in operating assets and liabilities:
Accounts receivable	(127,930)	(23,217)	45,319	(5,770)
Net investment in direct financing lease	35,371	31,796	65,333	58,727
Other current assets and other assets	(308,479)	21,984	409,290	(50,647)
Decrease in other assets			37,526
Inventory	113,870	374,366	(109,213)	(18,834)
Accounts payable and accrued expenses	644,649	1,056,433	1,157,370	413,773
Contract liabilities			(187,586)	189,006
Deferred revenue	223,393	28,810
Other liabilities	(47,809)
Net cash flows from operating activities	(2,377,324)	(1,951,287)	(4,668,461)	(6,055,078)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(78,325)	(2,394)		(27,364)
Investment in other assets including work in progress	(10,829)	(124,870)	(299,436)	(1,604,152)
Other assets		13,462
Net cash flows from investing activities	(89,154)	(113,802)	(299,436)	(1,631,516)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible note payable		1,510,000	1,510,000	408,000
Payment of debt issuance costs		(104,800)	(104,800)
Proceeds from sale of common stock offering, net of offering costs			5,076,455	2,928,312
Common stock repurchase			(1)
Proceeds from the exercise of warrants			1,248,983
Proceeds from the paycheck protection program			485,760
Principal payments on capital lease obligations and notes payable			(40,157)	(31,188)
Proceeds from sale of common stock,		200,000
Proceeds from exercise of warrants		283,950
Proceeds from payroll protection loan	485,760	485,760
Payments on notes payable	(2,892)
Principal payments on capital lease obligation	(19,224)	(19,487)
Net cash flows from financing activities	463,644	2,355,423	8,176,240	3,305,124
Effect of Foreign Currencies	42,971	(42,465)	(10,147)	(23,780)
Net Change in Cash	(1,959,863)	247,869	3,198,196	(4,405,250)
Cash, Beginning of the Period	3,765,277	567,081	567,081	4,972,331
Cash, End of the Period	1,805,414	814,950	3,765,277	567,081
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	8,779	5,296	9,488	10,771
Cash paid for income taxes	9,853	12,466	36,323	62,931
Modification of warrants issued with convertible debt		95,223	95,223
Exchange of notes payable and accrued interest for convertible notes payable		2,662,000	2,662,000
Settlement of accounts payable with common stock			8,270
Purchase of vehicle with note payable				16,510
Recognition of lease right to use asset and liabilities				514,473
Reclass from other current assets to other assets			106,446
Cashless option and warrant exercises			168
Reclassification of software development to intangible costs			$ 128,005	$ 3,111,668
Warrant exercise with a subscription receivable		965,033
Settlement of accounts payable with issuance of common stock		8,270
Conversion of convertible notes payable and accrued interest to common stock	6,232,340
Settlement of accounts payable with issuance of stock options	$ 349,376

Basis of Presentation

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

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 six months ended June 30, 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.

Reverse Stock Split

At the Annual Meeting of stockholders of the Company held on March 22, 2021, the stockholders approved an amendment to our certificate of incorporation to effect a reverse stock split at a ratio not less than 1-for-2 and not greater than 1-for-50, with the exact ratio to be set within that range at the discretion of our board of directors before December 31, 2021

On June 14, 2021 (the “Effective Time”), the Company completed a 1-for-30 reverse stock split of its Common Stock, as previously authorized at the Annual Meeting. Pursuant to the reverse stock split, at the Effective Time, every 30 issued shares of Common Stock were automatically combined into one share of Common Stock without any change in the par value per share.

The par value of the Company’s Common Stock was unchanged at $0.0001 per share after the reverse stock split. As a result, on the effective date of the reverse stock split, the stated capital on the Company’s balance sheet attributable to Common Stock was reduced proportionately based on the reverse stock split ratio of 1-for-30 and the additional paid-in capital account was credited with the amount by which the stated capital was reduced.

After the reverse stock split, net income or loss per share, and other per share amounts were adjusted because there are fewer shares of the Company’s Common Stock outstanding.

The financial statements, net income or loss per share and other per share amounts for periods ending before the reverse stock split were recast to give retroactive effect to the reverse stock split.

Going Concern

As of June 30, 2021, the Company had an accumulated deficit of approximately $103.8 million. For the six months ended June 30, 2021 the Company earned revenue of approximately $1.2 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, 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 June 28, 2021, the Company filed a Registration Statement on Form S-1 and a preliminary prospectus for an underwritten public offering of its Common Stock to be undertaken by ThinkEquity, a division of Fordham Financial Management, Inc. On July 16, 2021, the Company filed an Amendment to such Form S-1, indicating that, based on an assumed offering price of $11.03 per share, the Company was intending to offer approximately 1.8 million shares, for an aggregate offering price of approximately $20 million (before expenses). The Registration Statement also indicates that the Company has applied for its shares to be admitted to listing on the Nasdaq Capital Market under the symbol “AUID”. There is no assurance that such public offering will be completed, for the amount proposes, or at all, nor that the Company’s Common Stock will be admitted for listing to the Nasdaq market.

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 have been impacted differently depending on geographic location and services that are being performed. The Cards Plus business located in South Africa has had limitations on its operations as they are 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 and six months ended June 30, 2021 and 2020 because their effect was antidilutive:

Security	2021		2020
Convertible notes payable		117,529		1,182,557
Warrants		1,411,308		1,581,774
Stock options		9,167,642		3,660,778
		10,696,479		6,425,109

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 June 30, 2021 and December 31, 2020 consist of cards inventory. As of June 30, 2021 and December 31, 2020, the Company recorded an inventory valuation allowance of approximately $27,000 and $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 June 30, 2021 and December 31, 2020, Cards Plus had approximately $22,000 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 $439,000 and $150,000 as of June 30, 2021 and December 31, 2020 relating to 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 June 30, 2021, the majority of the deferred revenue contract liability of $439,000 will be recognized in the ensuing three 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.

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

Ipsidy Inc. (“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, 2020, the Company had an accumulated deficit of approximately $98.2 million. For the year ended December 31, 2020, the Company earned revenue of approximately $2.1 million and incurred a loss from operations of approximately $9.0 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.

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 quarter of 2020, as our products are designed to serve an increasingly mobile economy and workforce.

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

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 December 31, 2020, and December 31, 2019, Cards Plus had approximately $87,000 and $88,000, respectively, of contract liability 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 contract liability of approximately $150,000 and $137,000 as of December 31, 2020 and 2019 for 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 will be earned in the first quarter of fiscal year 2021. As of December 31, 2019, the majority of the deferred revenue contract liability was recognized in the quarter ended 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 standalone selling price for the service rendered.

During the year ended December 31, 2020, the Company had revenues from operations in North America, South America and Africa of $0.6 million, $0.3 million and $1.2 million, respectively, compared to $0.6 million, $0.5 million, $1.5 million, respectively, in the year ended December 31, 2019.

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

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

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

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

The costs are expected to be recovered.

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

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

As of December 31, 2020, the Company did not have any deferred contract costs or fees payable. 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 which was delivered in February 2020.

Financing 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. The Company leases kiosks to one customer that has meet the criteria for a financing lease. The revenue associated with the leased kiosks is expected to be recognized through April 2026.

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, 2020 and 2019, management determined no allowance for doubtful accounts was required.

Inventories

Inventories at December 31, 2020 consist of cards inventory and inventories at December 31, 2019 consist of cards inventory and kiosks that have not been placed into service. As of December 31, 2020, the Company recorded an inventory valuation allowance of approximately $18,000 to reflect net realizable value of the cards inventory.

As of December 31, 2019, the Company had an inventory valuation allowance for kiosks of $236,000 that are being held for sale and $18,000 for the cards inventory.

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

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, 2020, the Company had approximately $3,231,000 in funds in the United States which were in excess of the insured amounts by the FDIC. For the Company’s foreign subsidiaries, no amounts are insured. At December 31, 2020, the Company held approximately $11,000, $70,000, $189,000, and $9,000 in cash maintained in Peruvian, Colombian, African, and British Banks, respectively.

2020 Revenues and accounts receivable: For the year ended December 31, 2020, 27% 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, 2020, 55%, and 16% of the consolidated revenues were from Cards Plus (Africa) and the Colombian operations, respectively. Revenue for approximately 87% of the Colombian operations were derived from two customers. As of December 31, 2020, accounts receivable related to Cards Plus (Africa) amounted to 90% of the accounts receivable. The US operations represented 9% of the accounts receivable and the balance of 1% was from the Colombian operations, respectively.

2019 Revenues and accounts receivable: For the year ended December 31, 2020, 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, 2020, 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, 2020, 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.

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.

The Company, effective January 1, 2019 adopted the provisions of Topic 842. The Company uses the practical expedients available under Topic 842 which allows 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 allows the Company not to reassess our prior conclusions about lease identification, lease classification and initial direct costs. Furthermore, Company 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.

The adoption of Topic 842 as of January 1, 2019 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, 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, 2020 and 2019, the balance sheet “Other assets” are under further development and have not been placed in service. During the years ended December 31, 2020 and December 31, 2020, approximately $0.4 million and $3.1 million of software developed were placed into service. Upon completion, the amounts remaining in “other assets” 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 (5- 10 years) 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.

During the year ended December 31, 2020, the Company recorded an impairment loss of approximately $1.0 million, associated with goodwill at one of its reporting units. 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 as the carrying value may not be recovered as revenue assumptions and related revenue were revised downward.

During the year ended December 31, 2019, the Company updated our projections associated with our reporting units and these indicated that the carrying value may not be recovered as revenue assumptions were not met. The goodwill impairment loss for the year ended December 31, 2019 was approximately $1,517,000 across the three reporting units.

The fair value of the reporting unit in both years was determined using discounted cash flow.

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, 2020, the Company recorded an impairment on intangible assets of approximately $0.3 million at one reporting unit. The current projection indicated the carrying value of the intangible assets was in excess of its estimated recoverable value.

During the year ended December 31, 2019, the Company impaired intangible assets related to developed software of approximately $155,000 as the assets were no longer being utilized for commercial purposes.

Research and Development Costs

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

Net Loss per Common Share

The Company computes net loss per share in accordance with FASB ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the years ended December 31, 2020 and 2019 because their effect was antidilutive:

	2020		2019
Convertible notes payable		1,267,661		179,126
Stock options		5,645,802		3,646,667
Warrants		1,823,234		1,575,108
		8,736,697		5,400,901

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 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 $493,000 which reflects its carrying value as of December 31, 2020. The fair value of the Company’s convertible notes payable is $6,355,000, which differs from the carrying value of approximately $5,801,000 at December 31, 2020 because of the debt discounts as discussed in Note 7.

Reverse Stock Split

At the Annual Meeting of stockholders of the Company held on March 22, 2021, the stockholder’s approved an amendment to our certificate of incorporation to effect a reverse stock split at a ratio not less than 1-for-2 and not greater than 1-for-50, with the exact ratio to be set within that range at the discretion of our board of directors before December 31, 2021

On June 14, 2021 (the “Effective Time”), Ipsidy Inc. (“the Company”) completed a 1-for-30 reverse stock split of its common stock, par value $0.0001 per share (“Common Stock”), as previously authorized at the Stockholders’ Annual Meeting. Pursuant to the reverse stock split, at the Effective Time, every 30 issued shares of Common Stock were automatically combined into one share of Common Stock without any change in the par value per share.

The par value of the Company’s common stock was unchanged at $0.0001 per share after the reverse stock split. As a result, on the effective date of the reverse stock split, the stated capital on the Company’s balance sheet attributable to common stock was reduced proportionately based on the reverse stock split ratio of one-for-thirty and the additional paid-in capital account was credited with the amount by which the stated capital was reduced.

After the reverse stock split, net income or loss per share, and other per share amounts were increased because there are fewer shares of the Company’s common stock outstanding.

The financial statements, net income or loss per share and other per share amounts for periods ending before the reverse stock split were recast to give retroactive effect to the reverse stock split.

Recently Issued Accounting Pronouncements Not Yet Adopted

In August the FASB issued a new standard (ASU 2020-06) to reduce the complexity of accounting for convertible debt and other equity-linked instruments. For certain convertible debt instruments with a cash conversion feature, the changes are a trade-off between simplifications in the accounting model (no separation of an “equity” component to impute a market interest rate, and simpler analysis of embedded equity features) and a potentially adverse impact to diluted EPS by requiring the use of the if-converted method. The new standard will also impact other financial instruments commonly issued by both public and private companies. For example, the separation model for beneficial conversion features is eliminated simplifying the analysis for issuers of convertible debt and convertible preferred stock. Also, certain specific requirements to achieve equity classification and/ or qualify for the derivative scope exception for contracts indexed to an entity’s own equity are removed, enabling more freestanding instruments and embedded features to avoid mark-to-market accounting. The new standard is effective for companies that are SEC filers (except for Smaller Reporting Companies) for fiscal years beginning after December 15, 2021 and interim periods within that year, and two years later for other companies. Companies can early adopt the standard at the start of a fiscal year beginning after December 15, 2020. The standard can either be adopted on a modified retrospective or a full retrospective basis. The Company is currently reviewing the newly issued standard and does not believe it will materially impact the Company.

See Notes 6 and 7 for additional information on indebtedness outstanding as of December 31, 2020.

Other Current Assets

6 Months Ended

Jun. 30, 2021

Prepaid Expense and Other Assets, Current [Abstract]

OTHER CURRENT ASSETS

NOTE 2 – OTHER CURRENT ASSETS

Other current assets consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30,		December 31,
	2021		2020

Prepaid insurance	$	227,800	$	39,117
Deferred stock offering costs		166,967		-
Prepaid license fees		69,499		30,841
Operating lease right of use		92,503		131,568
Other		93,539		38,697
	$	650,308	$	240,223

Property and Equipment, Net

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 3 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30, 2021			December 31, 2020
Property and equipment	$	376,164		$	297,839
Equipment under finance lease (see Note 10)		163,407			163,407
		539,571			461,246
Less Accumulated depreciation		(391,078	)		(363,417	)
Property and equipment, net	$	148,493		$	97,829

Depreciation expense totaled $27,661 and $26,533 for the six months ended June 30, 2021 and 2020, respectively.

NOTE 2 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following as of December 31, 2020 and 2019:

	2020			2019
Property and equipment	$	297,839		$	282,316
Equipment under capital lease (see Note 11)		163,407			156,867
		461,246			439,183
Less Accumulated depreciation		(363,417	)		(277,363	)
Property and equipment, net	$	97,829		$	161,820

Depreciation expense totaled $54,903 and $86,054 for the years ended December 31, 2020 and 2019, respectively.

Other Assets

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Other Assets [Abstract]

OTHER ASSETS

NOTE 4 – OTHER ASSETS

Other assets consisted of the following at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020

Operating lease right of use assets	$	-	$	49,856
Other		136,163		190,367
	$	136,163	$	240,223

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 as of December 31, 2020 and 2019 include:

	2020		2019
Software and development	$	-	$	128,005
Operating Lease ROU Assets		49,856		171,141
Other		190,367		83,920
	$	240,223	$	383,066

Intangible Assets, Net (Other Than Goodwill)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

NOTE 5 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

The Company’s intangible assets consist primarily 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 six months ended June 30, 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		-			-			-			10,829			10,829
Amortization		(82,963	)		(466,294	)		(40,667	)		(6,834	)		(596,758	)
Carrying Value at June 30, 2021	$	728,340		$	2,705,100		$	375,804		$	132,303		$	3,941,547

The following is a summary of intangible assets as of June 30, 2021

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Cost	$	1,587,159		$	4,476,273		$	828,580		$	142,424		$	7,034,436
Accumulated amortization		(858,819	)		(1,771,173	)		(452,776	)		(10,121	)		(3,092,889	)
Carrying Value at June 30, 2021	$	728,340		$	2,705,100		$	375,804		$	132,303		$	3,941,547

Amortization expense totaled $596,758 and $579,371 for the six months ended June 30, 2021 and 2020, respectively.

Future expected amortization of intangible assets is as follows:

Fiscal Year Ending December 31,
Remainder of 2021	$	593,476
2022		1,093,618
2023		1,042,629
2024		818,316
2025		301,699
Thereafter		91,809
	$	3,941,547

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, 2020 and 2019:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents			Total
Useful Lives	10 Years			5 Years			10 Years			10 Years

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 of assets		-			-			(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
Additions		-			404,720			-			-			22,721			427,441
Amortization		(158,716	)		(885,250	)		(148,384	)					(3,290	)		(1,195,640	)
Impairment of assets		-			-			(297,937	)		-			-			(297,937	)
Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	-		$	128,308		$	4,527,476

The following is a summary of intangible assets as of December 31, 2020:

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents			Total
Cost	$	1,587,159		$	4,476,271		$	828,580		$	14,087		$	131,598		$	7,037,695
Accumulated amortization		(775,856	)		(1,304,877	)		(412,109	)		(14,087	)		(3,290	)		(2,510,219	)
Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	-		$	128,308		$	4,527,476

The following is a summary of intangible assets as of December 31, 2019:

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

2021	$	1,185,868
2022		1,092,535
2023		1,041,546
2024		817,959
2025		327,063
Thereafter		62,505
	$	4,527,476

Accounts Payable and Accrued Expenses

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Trade payables	$	438,702	$	311,024
Accrued interest		919		554,755
Accrued payroll and related obligations		1,160,478		891,790
Current portion of operating lease liabilities		92,503		117,414
Other*		411,352		790,149
Total	$	2,103,954	$	2,665,132

Included in Other expenses was accrued non-employee Directors’ Compensation of approximately $349,000 at December 31, 2020. In May 2021, the non-employee Directors were compensated for their service through a grant of stock options and therefore the balance of the accrual for Director’s Compensation was $ 0 at June 30, 2021. See Note 10.

In June 2021, the majority of the accrued interest was converted into common stock. See Note 8.

NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of December 31, 2020 and 2019:

	2020		2019
Trade payables	$	311,024	$	513,292
Accrued interest		554,755		641,834
Accrued payroll and related expenses		891,790		386,165
Current portion of operating lease liabilities		117,414		242,650
Other*		790,149		431,971
Total	$	2,665,132	$	2,215,912

Included in other is accrued Board of Directors Compensation of $349,000 and $54,000 as of December 31, 2020 and December 31, 2019, respectively. We anticipate the non-management Board of Directors will be compensated for their service through the issuance of stock compensation after the next Annual Meeting.

Notes Payable, Net

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Payable [Abstract]

NOTES PAYABLE, NET

NOTE 7 – NOTES PAYABLE, NET

The following is a summary of notes payable as of June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020

Paycheck Protection Program Loan #1	$	-	$	485,760
Paycheck Protection Program Loan #2		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		4,632		7,526
Notes Payable, Net	$	490,392	$	493,286
Notes Payable, current portion,	$	4,632	$	5,947
Notes Payable, net of current portion		485,760		487,339
	$	490,392	$	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 received notice from the USSBA on May 23, 2021, that the May 2020 PPP loan was forgiven as we met the applicable requirements. In accordance with ASC 470, extinguishment accounting, the amount forgiven by the USSBA is recorded as other income – gain on extinguishment of notes payable.

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.

NOTE 6 – NOTES PAYABLE, NET

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

	December 31, 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		7,526		12,866
Total Principal Outstanding	$	493,286	$	2,012,866
Unamortized Deferred Debt Discount		-		(26,722	)
Unamortized Deferred Debt Issuance Costs		-		(9,866	)
Notes Payable, Net	$	493,286	$	1,976,278
Notes Payable, current portion, net of discounts and current portion	$	5,947	$	5,341
Notes Payable, net of discounts and current portion		487,339		1,970,937
	$	493,286	$	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 150,000 shares of Common Stock, with a fair value of $1,147,500. 2018 change in terms of the Note payable has been determined to be a debt extinguishment in accordance with ASC 470. The Note was amended on February 14, 2020 to conform to the terms of the 2020 Convertible Notes Payable offering.

Furthermore, 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. 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. The Company accounted for the Restated Stern Note as an extinguishment of the Note and recorded a charge of $986,000 included in other expenses in accompanying consolidated statements of operations.

Paycheck Protection Program Loan

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.

If the USSBA determines that the 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 loan 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.

The following is a roll-forward of the Company’s notes payable and related discounts for the years ended December 31, 2020 and 2019:

	Principal Balance			Debt Discounts			Debt Issuance Costs			Total
Balance at January 1, 2019	$	2,000,000		$	(39,466	)	$	(106,886	)	$	1,853,648
Proceeds		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
Proceeds		485,760			-			-			485,760
Payments		(5,340	)		-			-			(5,340	)
Conversion of note payable to convertible notes payable		(2,000,000	)		-			-			(2,000,000	)
Amortization		-			9,866			26,722			36,588
Balance at December 31, 2020	$	493,286		$	-		$	-		$	493,286

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

2021	$	5,947
2022		487,339
	$	493,286

Convertible Notes Payable

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 8 – CONVERTIBLE NOTES PAYABLE

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.

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 $6.00 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 $9.00.

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 first quarter of 2021, convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 33,000 shares of common stock of the Company.

Additionally, during the six months ended June 30, 2021, the Company received conversion notices from (i) the Stern Trust converting the principal amount, repayment premium and interest in the amount of approximately $3.5 million payable under the Restated Stern Note into approximately 561,000 shares of common stock, (ii) the 8% Note Investors converting principal and interest in the amount of approximately $0.4 million into approximately 180,000 shares of common stock and (iii) the 2020 Note Investors converting principal, repayment premium and interest in the amount of approximately $2.5 million into approximately 398,000 shares of common stock. The Stern Trust is owed approximately $0.7 million in interest under the Restated Stern Note, which has not been converted and remains outstanding. As a result, a total of approximately $6.1 million of Company net indebtedness was converted and the Company issued approximately 1,138,000 shares of common stock in the aggregate.

The following is a summary of the convertible notes payable outstanding at June 30, 2021:

8% convertible notes payable issued December 2019	$	-
15% convertible notes payable issued February 2020		-
10% convertible notes payable issued February 2020		662,000

	$	662,000

Future maturities of convertible notes payable are as follows:

2021	$	-

2022		662.000

	$	662,000

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 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.

On February 14, 2020 the Company, entered into Securities Purchase Agreements with several accredited investors (the “2020 Note Investors”) providing 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.

The following is a summary of the convertible notes payable outstanding at December 31, 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		(494,138	)
Unamortized debt issuance costs		(59,886	)
	$	5,800,976

Future maturities of convertible notes payable are as follows:

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

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.4-08(c))
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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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
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

Convertible Notes Payable

In 2021, the Company received conversion notices from Stern Trust of which Theodore Stern, (a former member of the Board of Directors as of June 14, 2021) is the Trustee, converting the principal amount, repayment premium and interest in the amount of approximately $3.5 million payable under the Restated Stern Note into approximately 561,000 shares of common stock. Additionally, Theodore Stern and Herbert Selzer (also a former member of the Board of Directors as of June 14, 2021) provided conversion notices for their respective 2020 Notes converting the principal, repayment premium and interest in the amount of approximately $256,000 into approximately 41,000 shares of common stock. The Stern Trust is owed approximately $0.7 million in interest under the Restated Stern Note, which has not been converted and remains outstanding.

Executive Officers

On June 14, 2021, Phillip L. Kumnick resigned as Chief Executive Officer of Ipsidy Inc., a Delaware corporation (the “Company”) and Thomas L. Thimot was appointed Chief Executive Officer in his place. Further, Philip R. Broenniman resigned as President and Chief Operating Officer and Cecil N. Smith III (Tripp) was appointed President and Chief Technology Officer. The Company granted to each of Mr. Kumnick and Mr. Broenniman options to acquire a total of 1,166,667 shares of common stock at an exercise price of $7.20 per share for a term of ten years that vest upon the achievement of certain market capitalization thresholds, or performance conditions.

Mr. Thomas Thimot and Mr. Cecil Smith, became employed by the Company as Chief Executive Officer and President and Chief Technology Officer effective June 14, 2021. Mr. Thimot and the Company entered into an Offer Letter pursuant to which Mr. Thimot will earn an annual salary of $325,000 with a bonus target at 50% of the base salary (pro-rated for 2021) upon terms to be agreed with the Compensation Committee for 2021 and on the understanding that the 2022 target will include a requirement of the Company achieving three times the annual revenue of 2021. Additionally, Mr. Thimot was granted an option to acquire 1,200,000 shares of common stock at an exercise price of $7.80 per share for a term of ten years of which half of the options vest monthly over four years and the balance is subject to certain performance vesting requirements.

On June 14, 2021, Mr. Smith and the Company entered an into an Offer Letter pursuant to which Mr. Smith will earn an annual salary of $275,000 with a bonus target at 50% of the base salary (pro-rated for 2021) upon terms to be agreed with the Compensation Committee for 2021. In addition, Mr. Smith will receive a bonus of $50,000 after 90 days of service. Additionally. Mr. Smith was granted an option to acquire 600,000 shares of common stock at an exercise price of $7.80 per share for a term of ten years of which half of the options vest monthly over four years and the balance is subject to certain performance vesting requirements.

Appointment of Board of Directors

On June 9, 2021 Theodore Stern, Herbert Selzer and Thomas Szoke resigned as directors of the Company. The size of the Board of directors was increased to seven and Dr. Michael A. Gorriz, Michael L. Koehneman, Sanjay Puri, Mr. Thimot and Jacqueline L. White were appointed as additional directors of the Company. Messrs. Stern, Selzer and Szoke did not advise the Company of any disagreement with the Company on any matter relating to its operations, policies or practices. Mr. Szoke will continue with the Company as Chief Solutions Architect.

The Company granted each of the four new Board of Directors as of June 2021 stock options to acquire 62,500 shares of common stock or a total of 250,000 at an exercise price of $7.80 per share for a term of ten years that vest one third per year after each Annual Meeting. The Company granted the previously serving Board of Directors stock options to acquire 93,470 common shares that are vested as the services were previously rendered. The stock options were granted in lieu of other forms of Board of Director Compensation The Company also granted Mr. Selzer and Mr. Stern 22,388 stock options to acquire common shares for service in 2021 prior to their resignation as Board Members. Upon their resignation as directors in June 2021, 13,992 stock options were vested and the balance were forfeited

NOTE 8 – RELATED PARTY TRANSACTIONS

2020 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 earned an initial base salary of $125,000 per annum, which was increased to $187,500 as of November 1, 2020 and is subject to review after one year. Mr. Kumnick was granted options to acquire 1,111,111 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 $87,500 per annum which was increased to $131,250 as of November 1, 2020 and is subject to review after one year. Mr. Broenniman was granted options to acquire 555,556 shares of common stock of which 20% vest at grant and the balance vest subject to performance conditions. Mr. Kumnick and Mr. Broenniman have bonus targets in their respective employment arrangements subject to meeting certain performance thresholds.

Issuance of Common Stock

During the year ended December 31, 2020, the Company granted 50,000 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 December 31,2020. When 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 $3.00 (the “$3.00 Warrants”) were exercised for cash at an exercise price of $0.07 per share. In addition, the holders that exercised the $3.00 Warrants received a warrant exercisable for two years to acquire one share of common stock at an exercise price of $4.50 per share (the $4.50 Warrants”) for every four $3.00 Warrants exercised. Mr. Theodore Stern, a director of the Company, participated in the private transaction resulting in the issuance of 33,333 shares of common stock and 8,333 $4.50 Warrants in consideration of $70,000; and Varana Capital Focused, LP (“VCFLP”), participated in the private transaction resulting in the issuance of 123,889 shares of common stock and 30,972 $4.50 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 $1.80 (the “$1.80 Warrants”) were exercised. In addition, the holders that exercised the $1.80 Warrants also received a $4.50 Warrant for every two $1.80. 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 29,333 shares of common stock and 14,667 $4.50 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 23,809 shares of common stock in consideration of $50,000.

Convertible Notes Payable

Theodore Stern and Philip Beck (until October 30, 2020), 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 29,333 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. 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 $6.00 and 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 and the sale of common stock in the fourth quarter of 2020, the Company paid Network 1 Financial Securities, Inc., a registered broker-dealer (“Network 1”), a cash fee of approximately $471,800. 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 reduced from $7,425). The rent was further reduced to $2,500 per month beginning October 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 former member of the Board of Director’s and his family. During years ended December 31, 2020 and 2019, the Company paid rent of $52,500 and $89,100 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 500,000 shares of restricted stock and allows a time-vesting provision whereby the restricted shares will fully vest by May 2022. On October 30, 2020, pursuant to the terms of Mr. Beck’s Restricted Stock Agreement, as amended by the Separation Agreement, the Company repurchased for $1.00 the 500,000 Unvested Restricted Stock upon his resignation from the Board of Directors.

2019 Transactions

Notes Payable

During the year ended December 31, 2020, 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 52,083 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 28,600 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 $2.64 per share. A former 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 former CEO, and his family.

Stockholder's Equity

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 10 – STOCKHOLDER’S EQUITY

Common Stock

During the six months ended June 30, 2021, shares of common stock were issued as a result of the following non-cash transactions:

●

In the first quarter of 2021, convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 33,000 shares of common stock of the Company

●

Additionally, during the three and six months ended June 30, 2021, the Company received conversion notices from (i) the Stern Trust converting the principal amount, repayment premium and interest in the amount of approximately $3.5 million payable under the Restated Stern Note into approximately 561,000 shares of common stock, (ii) the 8% Note Investors converting principal and interest in the amount of approximately $0.4 million into approximately 180,000 shares of common stock and (iii) the 2020 Note Investors converting principal, repayment premium and interest in the amount of approximately $2.5 million into approximately 398,000 shares of common stock. The Stern Trust is owed approximately $0.7 million in interest under the Restated Stern Note, which has not been converted and remains outstanding. As a result, a total of approximately $6.1 million of Company indebtedness was converted and the Company issued approximately 1,138,000 shares of common stock in the aggregate.

●

Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 549,000 common shares of the Company.

Warrants

The following is a summary of the Company’s warrant activity for the six months ended June 30, 2021:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2020		1,823,267		$	4.20		3.4 Years
Exercised/cancelled		(411,926	)		3.00		-
Outstanding at June 30, 2021		1,411,341		$	4.41		3.7 Years

Stock Options

Activity related to stock options for the six months ended June 30, 2021 is summarized as follows:

●

The Company granted Mr. Thimot and Mr. Smith stock options to acquire 1,200,000 and 600,000 shares of common stock respectively upon their employment of which half of the options vest monthly over four years and the balance vest upon the achievement of certain market capitalization thresholds or performance conditions.

●

The Company granted each of Mr. Kumnick and Mr. Broenniman stock options to acquire 583,333 shares of common stock that vest upon the achievement of certain market capitalization thresholds or performance conditions.

●

The Company granted each of the four new Board of Directors as of June 2021 stock options to acquire 62,500 shares of common stock or a total of 250,000 that vest one third a year after each Annual Meeting.

●

The Company granted the previously serving Board of Directors stock options to acquire 93,470 common shares that are vested as the services were rendered. The stock options were granted in lieu of other forms of Board of Director Compensation and was used to eliminate previously accrued Board of Director compensation. The Company also granted to each of Mr. Selzer and Mr. Stern 22,388 stock options to acquire common shares for service in 2021 prior to their resignation as Board Members. Upon their resignation as directors in June 2021, 6,997 stock options to each of them were vested and the balance were forfeited.

●

The Company granted options to acquire 583,334 shares of common stock to employees. The options for 383,334 vest annually over a three-year period, 100,000 vest equally over a four-year period, and the balance of 100,000 vest upon the achievement of certain market capitalization thresholds or performance conditions.

The options have a term of ten years and all options were granted at market value.

Activity related to stock options for the six months ended June 30, 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		5,645,802		$	4.50		7.5	$	8,283,639
Granted		3,938,246			7.54		10.0		-
Exercised/cancelled		(416,405	)		1.50		-		-
Outstanding as of June 30, 2021		9,167,643			5.92		7.8	$	55,257,928
Exercisable as of June 30, 2021		4,111,087		$	5.77		6.1	$	27,405,283

The following table summarizes stock option information as of June 30, 2021:

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs).		Exercisable
$	0.0030		116,667		5.1		116,667
$	1.5000		756,667		6.0		698,334
$	1.8000		34,735		9.0		34,735
$	2.1000		1,666,667		6.7		866,667
$	2.7000		387,667		9.3		-
$	3.0000		906,667		6.1		906,667
$	3.5700		31,111		8.3		20,556
$	3.9000		8,333		7.2		8,333
$	4.5000		93,333		5.2		93,333
$	6.6000		69,444		7.4		69,444
$	7.2000		1,657,463		9.4		107,463
$	7.5000		83,333		7.2		83,333
$	7.8000		2,255,557		9.9		5,556
$	8.7000		33,333		6.7		33,333
$	12.0000		33,333		5.5		33,333
$	13.5000		1,033,333		5.2		1,033,333
			9,167,643		7.2		4,111,087

During the six months ended June 30, 2021, the Company recognized approximately $1,635,000 of stock option compensation expense of which approximately $1,229,000 relates to performance-based awards of directors and officers. As of June 30, 2021, there was approximately $16,527,000 of unrecognized compensation costs related to stock options outstanding that are expected to be expensed through 2025.

Additionally, the Company recorded approximately $625,000 for restricted stock expense as the Company estimated that a portion of its performance-based awards will be earned.

Total stock-based compensation expense consisting of stock options and restricted stock in the six months ended June 30, 2021 was approximately $2,261,000.

At the Annual Meeting of Stockholders held on March 22, 2021, the stockholders approved and ratified an increase of 2,500,000 shares of common stock allocated to the Company’s 2017 Incentive Stock Plan.

See Note 6 for additional information regarding accrued Directors’ compensation.

NOTE 9 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 1,000,000,000 shares of common stock. The Company had 19,642,401 and 17,270,848 shares of common stock issued and outstanding as of December 31, 2020 and 2019, respectively. In addition, the Company is authorized to issue 20,000,000 shares of preferred stock but no shares of preferred stock have been issued.

Common Stock

2020 Common Stock Transactions

●

During the year ended December 31, 2020, the Company granted 266,667 shares of Restricted Common Stock of which 100,000 shares were granted to two new members of our Board of Directors in connection with their compensation for service as Board Members and 166,667 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 year ended December 31, 2020, the Company issued approximately 3,500 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 114,719 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 $3.00 Warrants were exercised for cash at an exercise price of $2.10 per share. In addition, the holders that exercised the $3.00 Warrants received a $4.50 Warrant for every four $3.00 Warrants exercised. As a result, the Company issued 333,611 shares of common stock and 83,403 $0.15 Warrants in consideration of $700,583.

●

On June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company’s $1.50 Warrants were exercised for cash. In addition, the holders that exercised the $1.50 Warrants received a $4.50 Warrant for every two $1.50 Warrants exercised. As a result, the Company issued 154,400 shares of common stock and 77,200 $4.50 Warrants, in consideration of $231,600. Separately, certain holders of the $1.50 Warrants to acquire 59,000 shares of common stock exercised on a cashless basis resulting in the issuance of 18,689 shares of common stock.

●

On June 30, 2020, Company entered into and consummated a private transaction pursuant to which a portion of the Company’s $1.80 Warrants were exercised. In addition, the holders that exercised the $1.80 Warrants also received $4.50 Warrant for every two $1.80 Warrants exercised. As a result, the Company issued 176,000 shares of common stock and 88,000 $4.50 Warrants in consideration of $316,800.

●

On October 30, 2020 and on November 6, 2020, Ipsidy Inc. 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 1,747,833 shares of the Company’s common stock together with Warrants to acquire 873,917 shares of common stock for a term of five years at an exercise price of $4.50 per share for an aggregate purchase price of approximately $5.24 million. In connection with this private offering, the Company paid a registered broker-dealer, a cash fee of approximately $367,000 and issue the broker-dealer a common stock purchase warrant to acquire approximately 105,000 shares of common stock of the Company exercisable for a term of five years at an exercise price of $4.50 per share.

●

During 2020, the Company issued approximately 57,000 shares of common stock pursuant to cashless exercises of common stock purchase warrants and options, other than the June 2020 warrant exercises.

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 1,292,000 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 41,275 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 $2.64 per share.

	●	The Company also issued approximately 13,700 shares of common stock to two service providers in satisfaction of $41,000 due for services.

The criteria for the 2019 and 2018 performance based restricted stock have not been met as of December 31, 2020.

Warrants

●

During the year ended December 31, 2020, the Company issued approximately 980,000 common stock warrants in connection with its sale of common stock in the 4^thquarter of 2020 for a term of five years at an exercise price $4.50 per share. Of the approximate 29.4 million shares, approximately 105,000 shares were issued to a broker-dealer in connection with the sale of common stock.

●

During the year ended December 31, 2020, the Company issued approximately 250,000 common stock warrants for a term of five years at an average exercise price of $4.50 cents in connection with cash exercises of previously issued warrants. The Company recorded a charge of approximately $367,000 in connection with an inducement to the warrant holders who exercised their outstanding warrants.

●

During the year ended December 31, 2019, the Company issued 41,725 common stock warrants to its investment bankers in connection with the June 2019 private common stock offering at an exercise price of $2.64 cents for a period of five years.

See Common Stock Transaction above for a further description of the warrant issuances.

The following is a summary of the Company’s warrant activity for the years ended December 31, 2020 and 2019:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding on January 1, 2019		1,540,049		$	3.30	2.9 Years
Granted		41,725		$	2.70	5.0 Years
Exercised/Cancelled		-		$	-	-
Outstanding at December 31, 2019		1,581,774		$	3.30	1.9 Years
Granted		1,227,389		$	4.50	5.0 Years
Exercised/Cancelled		(985,930	)	$	1.80	-
Outstanding at December 31, 2020		1,823,234		$	4.20	3.4 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, 2020.

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 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.

2020 Stock Option Issuances

●

During the year ended December 31, 2020, the Company granted Mr. Kumnick and Mr. Broenniman granted options to acquire 1,111,111 and 555,556 shares of common stock upon their employment. The options granted to Mr. Kumnick and Mr. Broenniman vest 20% at date of the grant with the balance vesting upon achieving certain performance thresholds. Additionally, the Company granted options to acquire approximately 422,500 shares of common stock to employees and one service provider in connection with service. The options have a term of ten years with vesting ranging from immediate to a three-year period. All options granted approximated fair value.

2019 Stock Option Issuances

●

During the year ended December 31, 2019, the Company granted options to acquire 4,000 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 4,000 stock options, 3,861 options vest over a three-year period and 139 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.

The Company determined the grant date fair value of the options granted during the years ended December 31, 2020 and 2019 using the Black Scholes Method and the following assumptions:

	2020	2019
Expected Volatility	67% to 75%	75.0% to 80.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	0.33% to 0.5%	1.73% – 2.49%
Dividend Rate	0.00%	0.00%

Activity related to stock options for the years ended December 31, 2020 and 2019 is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value
Outstanding as of January 1, 2019		3,541,778		$	5.70		9.5	$	11,457,291
Granted		120,000		$	2.10		10.0	$	-
Exercised/Forfeited		(15,111	)	$	3.90		-	$	-
Outstanding as of December 31, 2020		3,646,667		$	5.40		6.5	$	280,000
Granted		2,089,135		$	2.10		10.0	$	-
Exercised/Forfeited		(90,000	)	$	2.70		-	$	-
Outstanding as of December 31, 2020		5,645,802		$	4.50		6.9	$	8,283,639
Exercisable as of December 31, 2020		3,772,858		$	5.70		6.5	$	4,862,410

The following table summarizes stock option information as of December 31, 2020:

Exercise Price		Outstanding		Weighted Average Life (Yrs.)		Exercisable
$	0.003		116,667		5.5		116,667
$	1.50		1,123,334		6.4		1,031,667
$	1.80		34,802		9.4		34,802
$	2.10		1,666,667		9.7		333,333
$	2.70		387,667		0.8		-
$	3.00		906,667		6.5		906,667
$	3.60		33,333		8.8		11,945
$	3.90		8,333		7.6		8,333
$	4.50		93,333		5.6		93,333
$	6.60		86,111		7.8		69,444
$	7.50		83,333		7.6		61,111
$	7.80		5,556		8.1		5,556
$	8.70		33,333		7.1		33,333
$	12.00		33,333		5.9		33,333
$	13.50		1,033,333		5.6		1,033,333
			5,645,802		6.9		3,772,857

As of December 31, 2020, there was approximately $801,000 of unrecognized compensation costs related to employee stock options outstanding which will be recognized in 2021 through 2023. The Company will recognize forfeitures as they occur. Stock compensation expense for the years ended December 31, 2020 and 2019 was approximately $823,000 and $1,246,000, respectively.

The criteria for certain performance-based stock options have not been achieved as of December 31, 2020.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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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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+ Details

Direct Financing Lease

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Direct Financing Lease [Abstract]

DIRECT FINANCING LEASE

NOTE 11 – 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 June 30, 2021 of approximately $26,000.

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		61,074
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
Sub-total		590,382
Less deferred revenue		(131,050	)
Net investment in lease	$	459,332

NOTE 10 – DIRECT FINANCING LEASE

In September 2016, the Company and an entity in Colombia entered into a rental contract for the rental of 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, 2020 and 2019 of approximately $56,800 and $63,400, 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,
2021	$	122,148
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
		651,456
Less deferred revenue		(156,753	)
Net investment in lease	$	494,703

Lease Obligation Payable

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Leases [Abstract]

LEASE OBLIGATION PAYABLE

NOTE 12 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a 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 June 30, 2021 is $139,297. 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, 2021. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022.

Year ending December 31
2021	$	21,548
2022		10,774
Total minimum lease payments		32,372
Less: Amount representing interest		(1,559	)
Present value of minimum lease payments	$	30,763

NOTE 11 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a capital lease. The leased equipment is amortized on a straight line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. Total amortization related to the lease equipment as of December 31, 2020 is $123,225. 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, 2020. The interest rate related to the lease obligation is 12% and the maturity date is March 31, 2022. Future cash payments related to this capital lease are as follow for the calendar years ending in 2021 and 2022.

2021	$	43,096
2022		10,774
Total minimum lease payments		53,870
Less: Amount representing interest		(4,076	)
Present value of minimum lease payments	$	49,794

Commitments and Contingencies

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business. While any litigation contains an element of uncertainty, we have no reason to believe 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, 2021, lease expense was approximately $103,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of June 30, 2021 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	89,210

Operating lease ROU assets – included in Other Assets	$	-

Total operating lease assets	$	89,210

Liabilities:

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	92,503

Long-term portion of ROU liabilities – included in Other liabilities		-

Total operating lease liabilities	$	92,503

The weighted average lease of the remaining term is approximately 1.0 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, 2021:

Remainder of 2021	$	48,303
2022		49,716
Total operating lease payments		98,019
Less: Imputed interest		(5,516	)
Total operating lease liabilities	$	92,503

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 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.

NOTE 13 – COMMITMENTS AND CONTINGENCIES

Legal Matters

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

Executive Compensation

As of December 31, 2020, the Company had employment agreements with 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, certain 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 Consolidated Balance Sheet as of December 31, 2020 were as follows:

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	121,285
Operating lease ROU assets – included in Other Assets		49,856
Total operating lease assets	$	171,141

Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	117,414
Long-term portion of ROU liabilities – included in Other liabilities		47,809
Total operating lease liabilities	$	165,223

The weighted average lease term remaining 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, 2020:

Years Ending December 31,
2021	$	130,261
2022		49,716
Total operating lease payments		179,977
Less: Imputed interest		(14,754	)
Total operating lease liabilities	$	165,223

The Company leased office space in Plantation, Florida. Monthly rental was approximately $2,700 per month plus a share of building expenses. The lease ended in August 2020.

In October 2018, the Company leased office space in Alpharetta, Georgia, for approximately $3,800 per month. The lease ended March 31, 2020.

Additionally, the Company rents office space in Long Beach, New York at a monthly cost of $2,500 (reduced from $5,000 in September 2020) and $7,425 in 2020 and 2019, respectively. 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, former Board of Director and 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 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 21, 2021. The Company leased an apartment for a management team member for approximately $2,000 a month through April 2020. The Company intends to secure office space lease in Bogota with a smaller footprint and lower cost when its current lease expires in April 2021. The Company did not renew the apartment lease after it ended in October 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 included in general and administrative on the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019 was approximately $284,000 and $439,000, respectively.

Potential Obligation

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 has recorded the outstanding liability and it is included in “Other of Accounts Payable and Accrued Expenses”. See Note 5. The Company is in discussion with the provider with respect to functionality as well as the financial obligation.

Segment Information

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

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. Long-lived assets for North America, South America and Africa amounted to approximately $8.0 million, $0.1 million and $0.2 million consisting of property and equipment – net, intangible assets – net and goodwill.

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,
	2021			2020			2021			2020
Net Revenues:
North America	$	153,687		$	135,698		$	301,747		$	269,252
South America		89,415			72,133			185,598			185,757
Africa		334,679			113,288			679,435			659,899
		577,781			321,119			1,166,780			1,114,908

Identity Management		488,366			248,986			981,182			929,151
Payment Processing		89,415			72,133			185,598			185,757
		577,781			321,119			1,166,780			1,114,908

Loss From Operations
North America		(2,017,716	)		(669,183	)		(3,288,119	)		(1,076,575	)
South America		(1,053,365	)		(1,803,784	)		(1,785,053	)		(3,015,936	)
Africa		(219,506	)		(333,654	)		(404,325	)		(1,386,718	)
		(3,290,587	)		(2,806,621	)		(5,477,497	)		(5,479,229	)

Identity Management		(2,237,222	)		(1,002,837	)		(3,692,444	)		(2,463,293	)
Payment Processing		(1,053,365	)		(1,803,784	)		(1,785,053	)		(3,015,936	)
		(3,290,587	)		(2,806,621	)		(5,477,497	)		(5,479,229	)

Interest Expense		(256,550	)		(310,153	)		(553,988	)		(489,203	)
Other income/(expense)		491,881			(342,082	)		493,418			(1,317,971	)

Loss before income taxes		(3,055,256	)		(3,458,856	)		(5,538,067	)		(7,286,403	)

Income tax expense		(2,354	)		(3,592	)		(9,542	)		(12,466	)

Net loss	$	(3,057,610	)	$	(3,462,448	)	$	(5,547,609	)	$	(7,298,869	)

NOTE 14 – SEGMENT INFORMATION

General information

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

Information about revenue, profit/loss and assets

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

Long lived assets are in North America, South America and Africa. Most assets are intangible assets recorded from the acquisition of MultiPay (South America) in 2015 and FIN Holdings (North America and Africa) in 2016. Assets for North America, South America and Africa amounted to approximately $9.1 million, $0.4 million and $1.4 million, respectively, of which $4.2 million, $0.0 million and $1.2 million related to goodwill as of December 31, 2020.

	Year Ended December 31,
	2020			2019
Net Revenues:
North America	$	612,271		$	642,313
South America		349,374			455,475
Africa		1,178,999			1,454,257
		2,140,644			2,552,045

Identity Management		1,791,270			2,090,570
Payment Processing		349,374			455,475
		2,140,644			2,552,045

Loss from Operations
North America		(2,237,745	)		(3,536,664	)
South America		(4,962,973	)		(5,186,550	)
Africa		(1,809,047	)		(1,362,535	)
		(9,009,765	)		(10,085,749	)

Identity Management		(4,046,792	)		(4,899,199	)
Payment Processing		(4,962,973	)		(5,186,550	)
		(9,009,765	)		(10,085,749	)

Interest Expense		(969,396	)		(375,598	)
Other (expense)/income		(1,283,074	)		23,920

Loss before income taxes		(11,262,235	)		(10,437,427	)

Income tax expense		(36,323	)		(62,931	)

Net loss	$	(11,298,258	)	$	(10,500,358	)

- 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
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 12 – INCOME TAXES

The Company accounts for income taxes in accordance with ASC 740 which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim period, disclosure and transition. There were no unrecognized tax benefits as of December 31, 2020 and 2019.

The Company’s loss before income taxes from US and Foreign sources for the years ended December 31, 2020 and 2019, are as follows:

	2020			2019
United States	$	(8,899,719	)	$	(8,548,570	)
Outside United States		(2,362,516	)		(1,888,857	)
Loss before income taxes	$	(11,262,235	)	$	(10,437,427	)

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, 2020 and 2019:

	2020			2019
US Federal statutory tax rate		21.00	%		21.00	%
State taxes		4.35	%		4.35	%
NOL true-ups		(14.93	%)		5.27	%
Change in valuation allowance		(10.42	%)		(30.62	%)
		0.00	%		0.00	%

The Company has paid certain minimum taxes and other obligations during the years ended December 31, 2020 and 2019 of approximately $36,000 and $63,000, respectively.

The tax effects of temporary differences that give rise to deferred tax assets and liabilities as of December 31, 2020 and 2019 are summarized as follows:

	2020			2019
Deferred tax assets
Net operating loss	$	8,472,849		$	7,681,718
Stock options		6,359,279			6,632,746
Charitable contributions		1,267			1,267
Basis difference in intangible assets		64,848			7,405
Convertible note payable discount		205,557			-
Accrued payroll		186,159			51,907
Valuation allowance		(15,289,959	)		(14,365,195	)
Total deferred tax asset		-			9,848

Debt discounts		-			(6,769	)
Debt issuance costs		-			(2,501	)
Basis difference fixed assets		-			(578	)
Total deferred tax liability		-			(9,848	)

Net deferred tax asset	$	-		$	-

As of December 31, 2020, the Company has available federal net operating loss carry forward of $33.4 million and state net operating loss carry forwards of $33.4 million. Operating loss carryforwards of approximately $14.4 million will expire through 2037 and the balance of $19.0 million have an indefinite life. 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, 2020, the Company had a valuation allowance of approximately $15.3 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.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Going concern

Going Concern

Covid-19

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.

Basis of Consolidation

Basis of Consolidation

Use of Estimates

Use of Estimates

Revenue Recognition

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 December 31, 2020, and December 31, 2019, Cards Plus had approximately $87,000 and $88,000, respectively, of contract liability 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 contract liability of approximately $150,000 and $137,000 as of December 31, 2020 and 2019 for 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 will be earned in the first quarter of fiscal year 2021. As of December 31, 2019, the majority of the deferred revenue contract liability was recognized in the quarter ended 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 standalone selling 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.

Accounts Receivable

Accounts Receivable

Inventories

Inventories

As of December 31, 2019, the Company had an inventory valuation allowance for kiosks of $236,000 that are being held for sale and $18,000 for the cards inventory.

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

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

The fair value of the reporting unit in both years was determined using discounted cash flow.

Stock-based compensation

Stock-based compensation

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Research and Development Costs

Research and Development Costs

Net Loss per Common Share

Net Loss per Common Share

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, 2020 and 2019 because their effect was antidilutive:

	2020		2019
Convertible notes payable		1,267,661		179,126
Stock options		5,645,802		3,646,667
Warrants		1,823,234		1,575,108
		8,736,697		5,400,901

Foreign Currency Translation

Foreign Currency Translation

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Reverse Stock Split

Reverse Stock Split

After the reverse stock split, net income or loss per share, and other per share amounts were increased because there are fewer shares of the Company’s common stock outstanding.

The financial statements, net income or loss per share and other per share amounts for periods ending before the reverse stock split were recast to give retroactive effect to the reverse stock split.

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, 2020.

Basis of Presentation (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of potentially dilutive securities

Security	2021		2020
Convertible notes payable		117,529		1,182,557
Warrants		1,411,308		1,581,774
Stock options		9,167,642		3,660,778
		10,696,479		6,425,109

	2020		2019
Convertible notes payable		1,267,661		179,126
Stock options		5,645,802		3,646,667
Warrants		1,823,234		1,575,108
		8,736,697		5,400,901

Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2021

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of other current assets

	June 30,		December 31,
	2021		2020

Prepaid insurance	$	227,800	$	39,117
Deferred stock offering costs		166,967		-
Prepaid license fees		69,499		30,841
Operating lease right of use		92,503		131,568
Other		93,539		38,697
	$	650,308	$	240,223

Property and Equipment, Net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	June 30, 2021			December 31, 2020
Property and equipment	$	376,164		$	297,839
Equipment under finance lease (see Note 10)		163,407			163,407
		539,571			461,246
Less Accumulated depreciation		(391,078	)		(363,417	)
Property and equipment, net	$	148,493		$	97,829

	2020			2019
Property and equipment	$	297,839		$	282,316
Equipment under capital lease (see Note 11)		163,407			156,867
		461,246			439,183
Less Accumulated depreciation		(363,417	)		(277,363	)
Property and equipment, net	$	97,829		$	161,820

Other Assets (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Other Assets [Abstract]

Schedule of other assets

	June 30, 2021		December 31, 2020

Operating lease right of use assets	$	-	$	49,856
Other		136,163		190,367
	$	136,163	$	240,223

	2020		2019
Software and development	$	-	$	128,005
Operating Lease ROU Assets		49,856		171,141
Other		190,367		83,920
	$	240,223	$	383,066

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

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

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		-			-			-			10,829			10,829
Amortization		(82,963	)		(466,294	)		(40,667	)		(6,834	)		(596,758	)
Carrying Value at June 30, 2021	$	728,340		$	2,705,100		$	375,804		$	132,303		$	3,941,547

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Patents			Total

Cost	$	1,587,159		$	4,476,273		$	828,580		$	142,424		$	7,034,436
Accumulated amortization		(858,819	)		(1,771,173	)		(452,776	)		(10,121	)		(3,092,889	)
Carrying Value at June 30, 2021	$	728,340		$	2,705,100		$	375,804		$	132,303		$	3,941,547

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents			Total
Useful Lives	10 Years			5 Years			10 Years			10 Years

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 of assets		-			-			(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
Additions		-			404,720			-			-			22,721			427,441
Amortization		(158,716	)		(885,250	)		(148,384	)					(3,290	)		(1,195,640	)
Impairment of assets		-			-			(297,937	)		-			-			(297,937	)
Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	-		$	128,308		$	4,527,476

Schedule of future amortization expense of intangible assets

Fiscal Year Ending December 31,
Remainder of 2021	$	593,476
2022		1,093,618
2023		1,042,629
2024		818,316
2025		301,699
Thereafter		91,809
	$	3,941,547

2021	$	1,185,868
2022		1,092,535
2023		1,041,546
2024		817,959
2025		327,063
Thereafter		62,505
	$	4,527,476

Shedule of intangible assets

	Customer Relationships			Acquired and Developed Software			Intellectual Property			Non-Compete			Patents			Total
Cost	$	1,587,159		$	4,476,271		$	828,580		$	14,087		$	131,598		$	7,037,695
Accumulated amortization		(775,856	)		(1,304,877	)		(412,109	)		(14,087	)		(3,290	)		(2,510,219	)
Carrying Value at December 31, 2020	$	811,303		$	3,171,394		$	416,471		$	-		$	128,308		$	4,527,476

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

Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	June 30, 2021		December 31, 2020
Trade payables	$	438,702	$	311,024
Accrued interest		919		554,755
Accrued payroll and related obligations		1,160,478		891,790
Current portion of operating lease liabilities		92,503		117,414
Other*		411,352		790,149
Total	$	2,103,954	$	2,665,132

	2020		2019
Trade payables	$	311,024	$	513,292
Accrued interest		554,755		641,834
Accrued payroll and related expenses		891,790		386,165
Current portion of operating lease liabilities		117,414		242,650
Other*		790,149		431,971
Total	$	2,665,132	$	2,215,912

Notes Payable, Net (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Notes Payable [Abstract]

Schedule of notes payable

	June 30, 2021		December 31, 2020

Paycheck Protection Program Loan #1	$	-	$	485,760
Paycheck Protection Program Loan #2		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		4,632		7,526
Notes Payable, Net	$	490,392	$	493,286
Notes Payable, current portion,	$	4,632	$	5,947
Notes Payable, net of current portion		485,760		487,339
	$	490,392	$	493,286

	December 31, 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		7,526		12,866
Total Principal Outstanding	$	493,286	$	2,012,866
Unamortized Deferred Debt Discount		-		(26,722	)
Unamortized Deferred Debt Issuance Costs		-		(9,866	)
Notes Payable, Net	$	493,286	$	1,976,278
Notes Payable, current portion, net of discounts and current portion	$	5,947	$	5,341
Notes Payable, net of discounts and current portion		487,339		1,970,937
	$	493,286	$	1,976,278

Schedule of notes payable and related discounts

	Principal Balance			Debt Discounts			Debt Issuance Costs			Total
Balance at January 1, 2019	$	2,000,000		$	(39,466	)	$	(106,886	)	$	1,853,648
Proceeds		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
Proceeds		485,760			-			-			485,760
Payments		(5,340	)		-			-			(5,340	)
Conversion of note payable to convertible notes payable		(2,000,000	)		-			-			(2,000,000	)
Amortization		-			9,866			26,722			36,588
Balance at December 31, 2020	$	493,286		$	-		$	-		$	493,286

Schedule of future maturities of notes payable

2021	$	5,947
2022		487,339
	$	493,286

Convertible Notes Payable (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of convertible notes payable outstanding

8% convertible notes payable issued December 2019	$	-
15% convertible notes payable issued February 2020		-
10% convertible notes payable issued February 2020		662,000

	$	662,000

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		(494,138	)
Unamortized debt issuance costs		(59,886	)
	$	5,800,976

Schedule of future maturities of convertible debt

2021	$	-

2022		662.000

	$	662,000

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

Stockholder's Equity (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Equity [Abstract]

Schedule of warrant activity

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2020		1,823,267		$	4.20		3.4 Years
Exercised/cancelled		(411,926	)		3.00		-
Outstanding at June 30, 2021		1,411,341		$	4.41		3.7 Years

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding on January 1, 2019		1,540,049		$	3.30	2.9 Years
Granted		41,725		$	2.70	5.0 Years
Exercised/Cancelled		-		$	-	-
Outstanding at December 31, 2019		1,581,774		$	3.30	1.9 Years
Granted		1,227,389		$	4.50	5.0 Years
Exercised/Cancelled		(985,930	)	$	1.80	-
Outstanding at December 31, 2020		1,823,234		$	4.20	3.4 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		5,645,802		$	4.50		7.5	$	8,283,639
Granted		3,938,246			7.54		10.0		-
Exercised/cancelled		(416,405	)		1.50		-		-
Outstanding as of June 30, 2021		9,167,643			5.92		7.8	$	55,257,928
Exercisable as of June 30, 2021		4,111,087		$	5.77		6.1	$	27,405,283

Schedule of stock option

Exercise Price		Outstanding		Weighted Average Contractual Life (Yrs).		Exercisable
$	0.0030		116,667		5.1		116,667
$	1.5000		756,667		6.0		698,334
$	1.8000		34,735		9.0		34,735
$	2.1000		1,666,667		6.7		866,667
$	2.7000		387,667		9.3		-
$	3.0000		906,667		6.1		906,667
$	3.5700		31,111		8.3		20,556
$	3.9000		8,333		7.2		8,333
$	4.5000		93,333		5.2		93,333
$	6.6000		69,444		7.4		69,444
$	7.2000		1,657,463		9.4		107,463
$	7.5000		83,333		7.2		83,333
$	7.8000		2,255,557		9.9		5,556
$	8.7000		33,333		6.7		33,333
$	12.0000		33,333		5.5		33,333
$	13.5000		1,033,333		5.2		1,033,333
			9,167,643		7.2		4,111,087

Exercise Price		Outstanding		Weighted Average Life (Yrs.)		Exercisable
$	0.003		116,667		5.5		116,667
$	1.50		1,123,334		6.4		1,031,667
$	1.80		34,802		9.4		34,802
$	2.10		1,666,667		9.7		333,333
$	2.70		387,667		0.8		-
$	3.00		906,667		6.5		906,667
$	3.60		33,333		8.8		11,945
$	3.90		8,333		7.6		8,333
$	4.50		93,333		5.6		93,333
$	6.60		86,111		7.8		69,444
$	7.50		83,333		7.6		61,111
$	7.80		5,556		8.1		5,556
$	8.70		33,333		7.1		33,333
$	12.00		33,333		5.9		33,333
$	13.50		1,033,333		5.6		1,033,333
			5,645,802		6.9		3,772,857

Schedule of black - scholes option-pricing model valuation assumption

	2020	2019
Expected Volatility	67% to 75%	75.0% to 80.0%
Expected Term	2.5 – 5.9 Years	2.5 – 5.9 Years
Risk Free Rate	0.33% to 0.5%	1.73% – 2.49%
Dividend Rate	0.00%	0.00%

Schedule of outstanding stock options

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value
Outstanding as of January 1, 2019		3,541,778		$	5.70		9.5	$	11,457,291
Granted		120,000		$	2.10		10.0	$	-
Exercised/Forfeited		(15,111	)	$	3.90		-	$	-
Outstanding as of December 31, 2020		3,646,667		$	5.40		6.5	$	280,000
Granted		2,089,135		$	2.10		10.0	$	-
Exercised/Forfeited		(90,000	)	$	2.70		-	$	-
Outstanding as of December 31, 2020		5,645,802		$	4.50		6.9	$	8,283,639
Exercisable as of December 31, 2020		3,772,858		$	5.70		6.5	$	4,862,410

Direct Financing Lease (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Direct Financing Lease [Abstract]

Schedule of future minimum lease payments to be received

Year ending December 31
Remainder of 2021		61,074
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
Sub-total		590,382
Less deferred revenue		(131,050	)
Net investment in lease	$	459,332

Year Ending December 31,
2021	$	122,148
2022		122,148
2023		122,148
2024		122,148
2025		122,148
Thereafter		40,716
		651,456
Less deferred revenue		(156,753	)
Net investment in lease	$	494,703

Lease Obligation Payable (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Leases [Abstract]

Schedule of lease obligation payable

Year ending December 31
2021	$	21,548
2022		10,774
Total minimum lease payments		32,372
Less: Amount representing interest		(1,559	)
Present value of minimum lease payments	$	30,763

2021	$	43,096
2022		10,774
Total minimum lease payments		53,870
Less: Amount representing interest		(4,076	)
Present value of minimum lease payments	$	49,794

Commitments and Contingencies (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of related lease balance

Current portion of operating lease ROU assets - included in other current assets	$	89,210

Operating lease ROU assets – included in Other Assets	$	-

Total operating lease assets	$	89,210

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	92,503

Long-term portion of ROU liabilities – included in Other liabilities		-

Total operating lease liabilities	$	92,503

Assets:
Current portion of operating lease ROU assets - included in other current assets	$	121,285
Operating lease ROU assets – included in Other Assets		49,856
Total operating lease assets	$	171,141

Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	117,414
Long-term portion of ROU liabilities – included in Other liabilities		47,809
Total operating lease liabilities	$	165,223

Schedule of future minimum lease payments required under convertible operating leases

Remainder of 2021	$	48,303
2022		49,716
Total operating lease payments		98,019
Less: Imputed interest		(5,516	)
Total operating lease liabilities	$	92,503

Years Ending December 31,
2021	$	130,261
2022		49,716
Total operating lease payments		179,977
Less: Imputed interest		(14,754	)
Total operating lease liabilities	$	165,223

Segment Information (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Segment Reporting [Abstract]

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

	(Unaudited)
	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2021			2020			2021			2020
Net Revenues:
North America	$	153,687		$	135,698		$	301,747		$	269,252
South America		89,415			72,133			185,598			185,757
Africa		334,679			113,288			679,435			659,899
		577,781			321,119			1,166,780			1,114,908

Identity Management		488,366			248,986			981,182			929,151
Payment Processing		89,415			72,133			185,598			185,757
		577,781			321,119			1,166,780			1,114,908

Loss From Operations
North America		(2,017,716	)		(669,183	)		(3,288,119	)		(1,076,575	)
South America		(1,053,365	)		(1,803,784	)		(1,785,053	)		(3,015,936	)
Africa		(219,506	)		(333,654	)		(404,325	)		(1,386,718	)
		(3,290,587	)		(2,806,621	)		(5,477,497	)		(5,479,229	)

Identity Management		(2,237,222	)		(1,002,837	)		(3,692,444	)		(2,463,293	)
Payment Processing		(1,053,365	)		(1,803,784	)		(1,785,053	)		(3,015,936	)
		(3,290,587	)		(2,806,621	)		(5,477,497	)		(5,479,229	)

Interest Expense		(256,550	)		(310,153	)		(553,988	)		(489,203	)
Other income/(expense)		491,881			(342,082	)		493,418			(1,317,971	)

Loss before income taxes		(3,055,256	)		(3,458,856	)		(5,538,067	)		(7,286,403	)

Income tax expense		(2,354	)		(3,592	)		(9,542	)		(12,466	)

Net loss	$	(3,057,610	)	$	(3,462,448	)	$	(5,547,609	)	$	(7,298,869	)

	Year Ended December 31,
	2020			2019
Net Revenues:
North America	$	612,271		$	642,313
South America		349,374			455,475
Africa		1,178,999			1,454,257
		2,140,644			2,552,045

Identity Management		1,791,270			2,090,570
Payment Processing		349,374			455,475
		2,140,644			2,552,045

Loss from Operations
North America		(2,237,745	)		(3,536,664	)
South America		(4,962,973	)		(5,186,550	)
Africa		(1,809,047	)		(1,362,535	)
		(9,009,765	)		(10,085,749	)

Identity Management		(4,046,792	)		(4,899,199	)
Payment Processing		(4,962,973	)		(5,186,550	)
		(9,009,765	)		(10,085,749	)

Interest Expense		(969,396	)		(375,598	)
Other (expense)/income		(1,283,074	)		23,920

Loss before income taxes		(11,262,235	)		(10,437,427	)

Income tax expense		(36,323	)		(62,931	)

Net loss	$	(11,298,258	)	$	(10,500,358	)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income taxes

	2020			2019
United States	$	(8,899,719	)	$	(8,548,570	)
Outside United States		(2,362,516	)		(1,888,857	)
Loss before income taxes	$	(11,262,235	)	$	(10,437,427	)

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

	2020			2019
US Federal statutory tax rate		21.00	%		21.00	%
State taxes		4.35	%		4.35	%
NOL true-ups		(14.93	%)		5.27	%
Change in valuation allowance		(10.42	%)		(30.62	%)
		0.00	%		0.00	%

Schedule of components of deferred tax assets and liabilities

	2020			2019
Deferred tax assets
Net operating loss	$	8,472,849		$	7,681,718
Stock options		6,359,279			6,632,746
Charitable contributions		1,267			1,267
Basis difference in intangible assets		64,848			7,405
Convertible note payable discount		205,557			-
Accrued payroll		186,159			51,907
Valuation allowance		(15,289,959	)		(14,365,195	)
Total deferred tax asset		-			9,848

Debt discounts		-			(6,769	)
Debt issuance costs		-			(2,501	)
Basis difference fixed assets		-			(578	)
Total deferred tax liability		-			(9,848	)

Net deferred tax asset	$	-		$	-

Basis of Presentation (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
Basis of Presentation (Details) - USD ($)	Jul. 16, 2021	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 14, 2021	Jan. 01, 2019
Basis of Presentation (Details) [Line Items]
Common stock, par value (in Dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Accumulated deficit		$ 103,800,000	$ 98,200,000
Revenues and Gains, Reporting Currency Denominated, Value		1,200,000
loss from opration		5,500,000
Inventory valuation allowance		27,000	18,000	$ 236,000
Cards Plus		22,000	88,000
Deferred revenue contract liability		439,000	150,000
Deferred revenue contract liability		439,000	150,000	137,000
Revenue			2,100,000
Loss from operations			9,000,000.0
Deferred revenue payments received in advance			$ 87,000	88,000
Revenue recognition, description			The majority of the $150,000 of deferred revenue contract liability as of December 31, 2020 will be earned in the first quarter of fiscal year 2021
Accounts payable and accrued expense		$ 1,160,478	$ 891,790	5,000
Card inventory				18,000
Cash, FDIC insured amount			250,000
Excess of the insured amounts by the FDIC			3,231,000
Operating lease right-of-use assets						$ 514,000
Software developed			400,000	3,100,000
Good will mpairment loss of long-lived assets			1,000,000.0
Goodwill impairment loss				$ 1,517,000
Impairment of intangible assets			$ 300,000
Impairment of long-lived assets, description				the Company impaired intangible assets related to developed software of approximately $155,000 as the assets were no longer being utilized for commercial purposes.
Forecast [Member]
Basis of Presentation (Details) [Line Items]
Common stock, par value (in Dollars per share)					$ 0.0001
Minimum [Member]
Basis of Presentation (Details) [Line Items]
Property and equipment, estimated useful life			3 years
Finite-lived intangible assets estimated useful lives			5 years
Maximum [Member]
Basis of Presentation (Details) [Line Items]
Property and equipment, estimated useful life			5 years
Finite-lived intangible assets estimated useful lives			10 years
Notes Payable [Member]
Basis of Presentation (Details) [Line Items]
Fair value of notes payable			$ 493,000
Convertible notes payable			6,355,000
Carrying value 5,801,000			5,801,000
Warrant [Member] \| Securities Purchase Agreements [Member]
Basis of Presentation (Details) [Line Items]
Warrant exercise price (in Dollars per share)	$ 11.03
Number of common stock purchased	$ 1,800,000
Aggregate offering price	$ 20,000,000
North America [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations			600,000	$ 600,000
South America [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations			300,000	500,000
South Africa [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations			$ 1,200,000	$ 1,500,000
South Africa [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			55.00%
South Africa [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			57.00%
Peruvian [Member]
Basis of Presentation (Details) [Line Items]
Cash held by acquiry			$ 11,000
Colombian [Member]
Basis of Presentation (Details) [Line Items]
Cash held by acquiry			$ 70,000
Colombian [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			16.00%
Colombian [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			18.00%
African [Member]
Basis of Presentation (Details) [Line Items]
Cash held by acquiry			$ 189,000
British Banks [Member]
Basis of Presentation (Details) [Line Items]
Cash held by acquiry			$ 9,000
United States [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			27.00%
United States [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			25.00%
Zimbabwe [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			5.00%
Two Customers [Member] \| Colombian [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			87.00%
Customers [Member] \| South Africa [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			90.00%
Customers [Member] \| South Africa [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			70.00%
Customers [Member] \| Colombian [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			1.00%
Customers [Member] \| Colombian [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			26.00%
Customers [Member] \| United States [Member] \| 2020 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			9.00%
Customers [Member] \| United States [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			4.00%
Four Customers [Member] \| Colombian [Member] \| 2019 Revenues and accounts receivable [Member]
Basis of Presentation (Details) [Line Items]
Percentage of concentration risk			89.00%

Basis of Presentation (Details) - Schedule of potentially dilutive securities - shares	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	10,696,479	6,425,109	8,736,697	5,400,901
Convertible Notes Payable [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	117,529	1,182,557	1,267,661	179,126
Warrant [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	1,411,308	1,581,774	1,823,234	1,575,108
Stock options [Member]
Basis of Presentation (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	9,167,642	3,660,778

Other Current Assets (Details) - Schedule of other current assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of other current assets [Abstract]
Prepaid insurance	$ 227,800	$ 39,117
Deferred stock offering costs	166,967
Prepaid license fees	69,499	30,841
Operating lease right of use	92,503	131,568
Other	93,539	38,697
Total	$ 650,308	$ 240,223

Property and Equipment, Net (Details) - USD ($)	6 Months Ended		12 Months Ended
Property and Equipment, Net (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 27,661	$ 26,533	$ 54,903	$ 86,054

Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 539,571	$ 461,246
Less Accumulated depreciation	(391,078)	(363,417)	$ (277,363)
Property and equipment, net	148,493	97,829	$ 161,820
Property and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	376,164	297,839
Equipment under finance lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 163,407	$ 163,407

Other Assets (Details) - Schedule of other assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of other assets [Abstract]
Operating lease right of use assets		$ 49,856	$ 171,141
Other	136,163	190,367	83,920
Total other assets	$ 136,163	$ 240,223	$ 383,066

Intangible Assets, Net (Other Than Goodwill) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 596,758	$ 579,371

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets, net (other than goodwill) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	$ 4,527,476	$ 5,593,612	$ 3,310,184
Additions	10,829	427,441	3,142,363
Amortization	(596,758)
Carrying Value at ending	3,941,547	4,527,476	5,593,612
Cost	7,034,436
Accumulated amortization	$ (3,092,889)	(1,195,640)	$ (704,313)
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years		10 years
Carrying Value at beginning	$ 811,303	970,019	$ 1,128,734
Additions
Amortization	(82,963)
Carrying Value at ending	728,340	811,303	970,019
Cost	1,587,159
Accumulated amortization	$ (858,819)	(158,716)	$ (158,715)
Acquired And Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years		5 years
Carrying Value at beginning	$ 3,171,394	3,651,924	$ 908,893
Additions		404,720	3,111,668
Amortization	(466,294)
Carrying Value at ending	2,705,100	3,171,394	3,651,924
Cost	4,476,273
Accumulated amortization	$ (1,771,173)	(885,250)	$ (368,637)
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years		10 years
Carrying Value at beginning	$ 416,471	862,792	$ 1,191,942
Additions
Amortization	(40,667)
Carrying Value at ending	375,804	416,471	862,792
Cost	828,580
Accumulated amortization	$ (452,776)	(148,384)	(174,528)
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives
Carrying Value at beginning	$ 128,308	108,877	78,182
Additions	10,829	22,721	30,695
Amortization	(6,834)
Carrying Value at ending	132,303	128,308	$ 108,877
Cost	142,424
Accumulated amortization	$ (10,121)	$ (3,290)

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of future amortization expense of intangible assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of future amortization expense of intangible assets [Abstract]
Remainder of 2021	$ 593,476	$ 1,185,868
2022	1,093,618	1,092,535
2023	1,042,629
2024	818,316
2025	301,699
Thereafter	91,809
Total	$ 3,941,547	$ 4,527,476	$ 5,593,612

Accounts Payable and Accrued Expenses (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accounts payable and accrued expenses	$ 349,000	$ 54,000

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

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Dec. 31, 2019

Schedule of accounts payable and accrued expenses [Abstract]

Trade payables

$ 438,702

$ 311,024

$ 513,292

Accrued interest

919

554,755

641,834

Accrued payroll and related obligations

1,160,478

891,790

5,000

Current portion of operating lease liabilities

92,503

117,414

242,650

Other

411,352

^[1]

790,149

^[1],[2]

790,149

^[1],[2]

431,971

^[2]

Total

$ 2,103,954

$ 2,665,132

$ 2,215,912

[1]	Included in Other expenses was accrued non-employee Directors’ Compensation of approximately $349,000 at December 31, 2020. In May 2021, the non-employee Directors were compensated for their service through a grant of stock options and therefore the balance of the accrual for Director’s Compensation was $ 0 at June 30, 2021. See Note 10.
[2]	Included in other is accrued Board of Directors Compensation of $349,000 and $54,000 as of December 31, 2020 and December 31, 2019, respectively. We anticipate the non-management Board of Directors will be compensated for their service through the issuance of stock compensation after the next Annual Meeting.

Notes Payable, Net (Details) - USD ($)	1 Months Ended		12 Months Ended
Notes Payable, Net (Details) - USD ($)	Jan. 31, 2021	May 31, 2020	Dec. 31, 2020	Dec. 31, 2017	Dec. 31, 2019
Notes Payable, Net (Details) [Line Items]
Loan amount			$ 487,339		$ 1,970,937
Notes payable description			Furthermore, 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. 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. The Company accounted for the Restated Stern Note as an extinguishment of the Note and recorded a charge of $986,000 included in other expenses in accompanying consolidated statements of operations.
Senior Unsecured Note [Member]
Notes Payable, Net (Details) [Line Items]
Loan amount	$ 486,000	$ 486,000
Interest rate	1.00%
Maturity date	Jan. 31, 2023
Face value				$ 3,000,000
Common stock issues shares (in Shares)				150,000
Common stock issues value				$ 1,147,500
Loan amount		$ 486,000
Interest rate		1.00%
Senior Unsecured Note [Member] \| Subsequent Event [Member]
Notes Payable, Net (Details) [Line Items]
Loan amount	$ 486,000

Notes Payable, Net (Details) - Schedule of notes payable - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of notes payable [Abstract]
Paycheck Protection Program Loan #1		$ 485,760
Paycheck Protection Program Loan #2	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	4,632	7,526	$ 12,866
Notes Payable, Net	490,392	493,286	1,976,278
Notes Payable, current portion,	4,632	5,947
Notes Payable, net of current portion	485,760	487,339
Total	$ 490,392	$ 493,286	$ 1,976,278

Notes Payable, Net (Details) - Schedule of notes payable (Parentheticals) - Vehicle [Member] - USD ($)	6 Months Ended
	Jun. 30, 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%

Convertible Notes Payable (Details) - USD ($)			1 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended
Convertible Notes Payable (Details) - USD ($)	Feb. 14, 2020	Dec. 19, 2019	Feb. 29, 2020	Feb. 14, 2020	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020	Dec. 13, 2019
Convertible Notes Payable (Details) [Line Items]
Interest rate	15.00%			15.00%
Amendment agreement, description			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.			Additionally, during the six months ended June 30, 2021, the Company received conversion notices from (i) the Stern Trust converting the principal amount, repayment premium and interest in the amount of approximately $3.5 million payable under the Restated Stern Note into approximately 561,000 shares of common stock, (ii) the 8% Note Investors converting principal and interest in the amount of approximately $0.4 million into approximately 180,000 shares of common stock and (iii) the 2020 Note Investors converting principal, repayment premium and interest in the amount of approximately $2.5 million into approximately 398,000 shares of common stock.	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.
Aggregate amount	$ 1,510,000			$ 1,510,000
Required to pay						150.00%
Conversion price per share (in Dollars per share)						$ 6.00	$ 0.20
Weighted average price, description						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 $9.00.	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.
Cash fee of approximately						$ 104,800	$ 104,800
Conversion of stock, shares converted (in Shares)					33,000
Interest amount						700,000
Indebtedness amount						6,100,000
Aggregate shares of common stock						$ 1,138,000
Principal due percentage							150.00%
Interest of annum payable							15.00%
Amount of the principal converted divided							150.00%
Investor [Member]
Convertible Notes Payable (Details) [Line Items]
Convertible notes payable, description		the Company entered into Securities Purchase Agreements with several accredited investors (the “8% Note Investors”) providing for the sale by the Company to the Investors of 8% Convertible Notes in the aggregate amount of $428,000 (the “8% Notes”). The 8% Notes 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.
Philip D. Beck [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	50,000			50,000
Principal amount	50,000			50,000
Theodore Stern [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	50,000			50,000
Principal amount	50,000			50,000
Herbert Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	100,000			100,000
Principal amount	100,000			100,000
Mr. Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Principal amount	50,000			50,000
Investor [Member]
Convertible Notes Payable (Details) [Line Items]
Interest rate								8.00%
Convertible notes aggregate amount								$ 428,000
Philip D. Beck [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	50,000			50,000
Principal amount	50,000			50,000
Theodore Stern [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	50,000			50,000
Principal amount	50,000			50,000
Herbert Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Consideration amount	100,000			100,000
Principal amount	100,000			100,000
Mr. Selzer [Member]
Convertible Notes Payable (Details) [Line Items]
Principal amount	$ 50,000			$ 50,000
Convertible Debt [Member]
Convertible Notes Payable (Details) [Line Items]
Convertible notes aggregate amount					$ 120,000

Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	$ 662,000	$ 5,800,976
8% convertible notes payable issued December 2019 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable		428,000
15% convertible notes payable issued February 2020 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable		5,265,000
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	$ 662,000

Convertible Notes Payable (Details) - Schedule of future maturities of convertible debt - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of future maturities of convertible debt [Abstract]
2021
2022	662.000	6,355,000
Total convertible notes payable	$ 662,000	$ 6,355,000

Related Party Transactions (Details) - USD ($)		1 Months Ended					6 Months Ended	10 Months Ended	12 Months Ended
Related Party Transactions (Details) - USD ($)	Jun. 14, 2021	Nov. 30, 2020	Jun. 30, 2020	May 22, 2020	Jan. 31, 2020	Jun. 30, 2019	Jun. 30, 2021	Oct. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions (Details) [Line Items]
Convertible notes payable							$ 662,000		$ 5,800,976
Granted options to acquire shares of common stock (in Shares)							3,938,246		2,089,135	120,000
Interest rate per annum									10.00%
Common stock conversion price (in Dollars per share)									$ 6.00
Additional monthly rental payments					$ 5,000
Restricted Stock [Member]
Related Party Transactions (Details) [Line Items]
Granted shares (in Shares)									50,000
Stern Trust [Member]
Related Party Transactions (Details) [Line Items]
Invested in consideration							$ 700,000
Principal amount	$ 325,000
Mr. Thimot [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)	1,200,000
Exercise price (in Dollars per share)	$ 7.80
Warrant term	10 years
Interest rate	50.00%
Mr. Smith [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)	600,000
Exercise price (in Dollars per share)	$ 7.80
Warrant term	10 years
Principal amount	$ 275,000
Interest rate	50.00%
Receive from bonus	$ 50,000
Mr.Szoke [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)							62,500
Invested in consideration							$ 250,000
Exercise price (in Dollars per share)							$ 7.80
Warrant term							10 years
Board of director [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)							93,470
Stock option vested (in Shares)							13,992
Related Party Transaction, Description of Transaction							The stock options were granted in lieu of other forms of Board of Director Compensation The Company also granted Mr. Selzer and Mr. Stern 22,388 stock options to acquire common shares for service in 2021 prior to their resignation as Board Members.
Stern Trust [Member] \| Theodore Stern [Member]
Related Party Transactions (Details) [Line Items]
Convertible notes payable							$ 3,500,000
Number of common stock purchased, shares (in Shares)							561,000
Theodore Stern [Member] \| Herbert Selzer [Member]
Related Party Transactions (Details) [Line Items]
Convertible notes payable							$ 256,000
Number of common stock purchased, shares (in Shares)							41,000
Mr Kumnick [Member] \| Mr Broenniman [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)	1,166,667
Exercise price (in Dollars per share)	$ 7.20
Warrant term	10 years
Varana Capital Focused,LP [Member]
Related Party Transactions (Details) [Line Items]
Number of shares issued (in Shares)			23,809
Cash consideration			$ 50,000
Vista Associates [Member]
Related Party Transactions (Details) [Line Items]
Holding shares of warrant (in Shares)									29,333
Notes Payable [Member]
Related Party Transactions (Details) [Line Items]
Interest expenses									$ 240,000
Convertible Notes Payable [Member]
Related Party Transactions (Details) [Line Items]
Chairman of board of directors invested amount										$ 25,000
Notes offering, percentage										8.00%
Network 1 Financial Securities Inc [Member]
Related Party Transactions (Details) [Line Items]
Cash fee incurred									471,800
Mr Kumnick [Member]
Related Party Transactions (Details) [Line Items]
Amount of base salary									125,000
Increase decreased initial base salary									187,500
Granted options to acquire shares of common stock (in Shares)		1,111,111
Vested at granted shares, percentage (in Dollars per share)		$ 0.20
Mr Broenniman [Member]
Related Party Transactions (Details) [Line Items]
Amount of base salary									87,500
Increase decreased initial base salary									131,250
Granted options to acquire shares of common stock (in Shares)		555,556
Vested at granted shares, percentage (in Dollars per share)		$ 0.20
Theodore Stern [Member]
Related Party Transactions (Details) [Line Items]
Convertible notes payable									662,000
Principal amount									$ 2,000,000
Interest rate									15.00%
Cash consideration								$ 50,000
Maturity date									Jan. 31, 2020
Repayment of premium, percentage									50.00%
Herbert Selzer [Member]
Related Party Transactions (Details) [Line Items]
Principal amount									$ 100,000
Cash consideration									$ 100,000
Philip Beck [Member]
Related Party Transactions (Details) [Line Items]
Separation letter agreement, description				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 500,000 shares of restricted stock and allows a time-vesting provision whereby the restricted shares will fully vest by May 2022. On October 30, 2020, pursuant to the terms of Mr. Beck’s Restricted Stock Agreement, as amended by the Separation Agreement, the Company repurchased for $1.00 the 500,000 Unvested Restricted Stock upon his resignation from the Board of Directors.
$0.10 Warrants [Member]
Related Party Transactions (Details) [Line Items]
Warrant exercise, description			the Company’s warrants exercisable at per share price of $3.00 (the “$3.00 Warrants”) were exercised for cash at an exercise price of $0.07 per share. In addition, the holders that exercised the $3.00 Warrants received a warrant exercisable for two years to acquire one share of common stock at an exercise price of $4.50 per share (the $4.50 Warrants”) for every four $3.00 Warrants exercised. Mr. Theodore Stern, a director of the Company, participated in the private transaction resulting in the issuance of 33,333 shares of common stock and 8,333 $4.50 Warrants in consideration of $70,000; and Varana Capital Focused, LP (“VCFLP”), participated in the private transaction resulting in the issuance of 123,889 shares of common stock and 30,972 $4.50 Warrants, in consideration of $260,167. Mr. Philip Broenniman, a director, the President and COO of the Company is the investment manager of VCFLP.
$0.06 Warrants [Member]
Related Party Transactions (Details) [Line Items]
Warrant exercise, description			In addition, the holders that exercised the $1.80 Warrants also received a $4.50 Warrant for every two $1.80. 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 29,333 shares of common stock and 14,667 $4.50 Warrants, in consideration of $52,800.
Common Stock [Member]
Related Party Transactions (Details) [Line Items]
Number of common stock purchased, shares (in Shares)						52,083
Warrant [Member] \| Network 1 Financial Securities Inc [Member]
Related Party Transactions (Details) [Line Items]
Warrant term										5 years
Cash fee incurred										$ 109,000
Purchase warrant (in Shares)										28,600
Fair value of warrants										$ 54,000
Share price (in Dollars per share)										$ 2.64
Long Beach, New York [Member]
Related Party Transactions (Details) [Line Items]
Additional monthly rental payments					7,425
Agreement term									30 days
Long Beach, New York [Member] \| New Office Facilities [Member]
Related Party Transactions (Details) [Line Items]
Additional monthly rental payments					$ 5,000				$ 7,425
Agreement term							30 days		30 days
Payment of rent									$ 52,500	$ 89,100
Long Beach, New York [Member] \| Network 1 Financial Securities Inc [Member]
Related Party Transactions (Details) [Line Items]
Rent reduced									$ 2,500

Stockholder's Equity (Details)	1 Months Ended		3 Months Ended			6 Months Ended		12 Months Ended
Stockholder's Equity (Details)	Oct. 30, 2020	Jun. 30, 2020 AFN (؋) shares	Jun. 30, 2021 USD ($) shares	Mar. 31, 2021 USD ($) shares	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) shares	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	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 \| shares				33,000
Interest payable (in Dollars)			$ 3,500,000			$ 3,500,000
Investors converting principal and interest percentage						8.00%
Investors Converting Principal And Interest (in Dollars)						$ 400,000
Common stock, issued \| shares			21,363,027			21,363,027		19,642,401	17,270,848
converting principal, repayment premium and interest (in Dollars)						$ 2,500,000
Interest (in Dollars)						700,000
Total indebtedness converted (in Dollars)			$ 6,100,000			6,100,000
Aggregate shares of common stock (in Dollars)						$ 1,138,000
Common stock issued for warrants exercised \| shares						549,000
Stock compensation expense (in Dollars)						$ 1,635,000		$ 823,000	$ 1,246,000
Stock-based compensation expense (in Dollars)			$ 1,634,546		$ 460,883	2,261,126	$ 629,993	$ 823,564	$ 1,246,019
Restricted stock expense (in Dollars)						625,000
Total stock Option and restricted stock (in Dollars)						$ 2,261,000
Common stock, authorized \| shares			1,000,000,000			1,000,000,000		1,000,000,000	1,000,000,000
Common stock, outstanding \| shares			21,363,027			21,363,027		19,642,401	17,270,848
Preferred Stock, Shares Authorized \| shares								20,000,000
Number of stock granted \| shares								266,667
Restricted Common Stock shares granted \| shares								100,000
Shares of employee compensation \| shares								166,667
Issued shares of common stock \| shares								3,500
Purchase of common stock \| shares		114,719
Purchase amount (in Afghanis) \| ؋		؋ 200,000
Description of Securities Purchase	In connection with this private offering, the Company paid a registered broker-dealer, a cash fee of approximately $367,000 and issue the broker-dealer a common stock purchase warrant to acquire approximately 105,000 shares of common stock of the Company exercisable for a term of five years at an exercise price of $4.50 per share.
Cashless exercises of common stock purchase warrants and options \| shares								57,000
Common stock transactions, description									●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 1,292,000 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 41,275 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 $2.64 per share. ●The Company also issued approximately 13,700 shares of common stock to two service providers in satisfaction of $41,000 due for services.
Vesting rights description								the Company granted Mr. Kumnick and Mr. Broenniman granted options to acquire 1,111,111 and 555,556 shares of common stock upon their employment. The options granted to Mr. Kumnick and Mr. Broenniman vest 20% at date of the grant with the balance vesting upon achieving certain performance thresholds. Additionally, the Company granted options to acquire approximately 422,500 shares of common stock to employees and one service provider in connection with service. The options have a term of ten years with vesting ranging from immediate to a three-year period. All options granted approximated fair value.
Stock option, description									the Company granted options to acquire 4,000 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 4,000 stock options, 3,861 options vest over a three-year period and 139 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.
Unrecognized compensation costs (in Dollars)								$ 801,000
Employee Stock Option [Member]
Stockholder's Equity (Details) [Line Items]
Unrecognized compensation costs (in Dollars)			$ 16,527,000			$ 16,527,000
Directors and Officers [Member]
Stockholder's Equity (Details) [Line Items]
Stock-based compensation expense (in Dollars)						$ 1,229,000
Stock Options [Member]
Stockholder's Equity (Details) [Line Items]
Stock options, description						●The Company granted Mr. Thimot and Mr. Smith stock options to acquire 1,200,000 and 600,000 shares of common stock respectively upon their employment of which half of the options vest monthly over four years and the balance vest upon the achievement of certain market capitalization thresholds or performance conditions. ● The Company granted each of Mr. Kumnick and Mr. Broenniman stock options to acquire 583,333 shares of common stock that vest upon the achievement of certain market capitalization thresholds or performance conditions. ● The Company granted each of the four new Board of Directors as of June 2021 stock options to acquire 62,500 shares of common stock or a total of 250,000 that vest one third a year after each Annual Meeting. ● The Company granted the previously serving Board of Directors stock options to acquire 93,470 common shares that are vested as the services were rendered. The stock options were granted in lieu of other forms of Board of Director Compensation and was used to eliminate previously accrued Board of Director compensation. The Company also granted to each of Mr. Selzer and Mr. Stern 22,388 stock options to acquire common shares for service in 2021 prior to their resignation as Board Members. Upon their resignation as directors in June 2021, 6,997 stock options to each of them were vested and the balance were forfeited. ●The Company granted options to acquire 583,334 shares of common stock to employees. The options for 383,334 vest annually over a three-year period, 100,000 vest equally over a four-year period, and the balance of 100,000 vest upon the achievement of certain market capitalization thresholds or performance conditions.
Securities Purchase Agreements [Member]
Stockholder's Equity (Details) [Line Items]
Description of Securities Purchase	Ipsidy Inc. 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 1,747,833 shares of the Company’s common stock together with Warrants to acquire 873,917 shares of common stock for a term of five years at an exercise price of $4.50 per share for an aggregate purchase price of approximately $5.24 million. In connection with this private offering, the Company paid a registered broker-dealer, a cash fee of approximately $367,000 and issue the broker-dealer a common stock purchase warrant to acquire approximately 105,000 shares of common stock of the Company exercisable for a term of five years at an exercise price of $4.50 per share.
2017 Incentive Stock Plan [Member]
Stockholder's Equity (Details) [Line Items]
Increase in shares of common stock \| shares										2,500,000
Common Stock [Member]
Stockholder's Equity (Details) [Line Items]
Increase in shares of common stock \| shares			561,000			561,000
Common stock, issued \| shares			180,000			180,000
Shares of common stock (in Dollars)						$ 398,000
Stock-based compensation expense (in Dollars)							$ 15	$ 27
Warrant 1 [Member]
Stockholder's Equity (Details) [Line Items]
Description of warrants		Company entered into and consummated a private transaction pursuant to which a portion of the Company’s $3.00 Warrants were exercised for cash at an exercise price of $2.10 per share. In addition, the holders that exercised the $3.00 Warrants received a $4.50 Warrant for every four $3.00 Warrants exercised. As a result, the Company issued 333,611 shares of common stock and 83,403 $0.15 Warrants in consideration of $700,583.
Warrant 2 [Member]
Stockholder's Equity (Details) [Line Items]
Description of warrants		In addition, the holders that exercised the $1.50 Warrants received a $4.50 Warrant for every two $1.50 Warrants exercised. As a result, the Company issued 154,400 shares of common stock and 77,200 $4.50 Warrants, in consideration of $231,600. Separately, certain holders of the $1.50 Warrants to acquire 59,000 shares of common stock exercised on a cashless basis resulting in the issuance of 18,689 shares of common stock.
Warrant 3 [Member]
Stockholder's Equity (Details) [Line Items]
Description of warrants		In addition, the holders that exercised the $1.80 Warrants also received $4.50 Warrant for every two $1.80 Warrants exercised. As a result, the Company issued 176,000 shares of common stock and 88,000 $4.50 Warrants in consideration of $316,800.
Warrant [Member]
Stockholder's Equity (Details) [Line Items]
Description of warrants								●During the year ended December 31, 2020, the Company issued approximately 980,000 common stock warrants in connection with its sale of common stock in the 4th quarter of 2020 for a term of five years at an exercise price $4.50 per share. Of the approximate 29.4 million shares, approximately 105,000 shares were issued to a broker-dealer in connection with the sale of common stock. ● During the year ended December 31, 2020, the Company issued approximately 250,000 common stock warrants for a term of five years at an average exercise price of $4.50 cents in connection with cash exercises of previously issued warrants. The Company recorded a charge of approximately $367,000 in connection with an inducement to the warrant holders who exercised their outstanding warrants. ●During the year ended December 31, 2019, the Company issued 41,725 common stock warrants to its investment bankers in connection with the June 2019 private common stock offering at an exercise price of $2.64 cents for a period of five years.

Stockholder's Equity (Details) - Schedule of warrant activity - Warrant [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Class of Warrant or Right [Line Items]
Number of Shares, Outstanding balance at beginning \| shares	1,823,267
Weighted Average Exercise Price, Outstanding balance at beginning \| $ / shares	$ 4.20
Weighted Average Remaining Life, Outstanding balance at beginning	3 years 4 months 24 days
Number of Shares, Exercised/cancelled \| shares	(411,926)
Weighted Average Exercise Price, Exercised/cancelled \| $ / shares	$ 3.00
Number of Shares, Outstanding balance at ending \| shares	1,411,341
Weighted Average Exercise Price, Outstanding balance at ending \| $ / shares	$ 4.41
Weighted Average Remaining Life, Outstanding balance at ending	3 years 8 months 12 days

Stockholder's Equity (Details) - Schedule of outstanding stock options - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of outstanding stock options [Abstract]
Number of Shares, Outstanding at beginning	5,645,802	3,646,667	3,541,778
Weighted Average Exercise Price, Outstanding at beginning	$ 4.50
Weighted Average Contractual Term (Yrs.), Outstanding at beginning	7 years 6 months		9 years 6 months
Aggregate Intrinsic Value, Outstanding at beginning	$ 8,283,639	$ 280,000	$ 11,457,291
Number of Shares, Granted	3,938,246	2,089,135	120,000
Weighted Average Exercise Price, Granted	$ 7.54	$ 2.10	$ 2.10
Weighted Average Contractual Term (Yrs.), Granted	10 years	10 years	10 years
Aggregate Intrinsic Value, Granted
Number of Shares, Exercised/cancelled	(416,405)	(90,000)	(15,111)
Weighted Average Exercise Price, Exercised/cancelled	$ 1.50	$ 2.70	$ 3.90
Weighted Average Contractual Term (Yrs.), Exercised/cancelled
Aggregate Intrinsic Value, Exercised/cancelled
Number of Shares, Outstanding at ending	9,167,643	5,645,802	3,646,667
Weighted Average Exercise Price, Outstanding at ending	$ 5.92	$ 4.50
Weighted Average Contractual Term (Yrs.), Outstanding at ending	7 years 9 months 18 days	6 years 10 months 24 days	6 years 6 months
Aggregate Intrinsic Value, Outstanding at ending	$ 55,257,928	$ 8,283,639	$ 280,000
Number of Shares, Exercisable at ending	4,111,087	3,772,858
Weighted Average Exercise Price, Exercisable at ending	$ 5.77	$ 5.70
Weighted Average Contractual Term (Yrs.), Exercisable at ending	6 years 1 month 6 days
Aggregate Intrinsic Value, Exercisable at ending	$ 27,405,283	$ 4,862,410

Stockholder's Equity (Details) - Schedule of stock option - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	9,167,643	5,645,802
Weighted Average Contractual Life (Yrs).	7 years 2 months 12 days	6 years 10 months 24 days
Exercisable	4,111,087	3,772,857
Exercise Price 0.0030 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	116,667
Weighted Average Contractual Life (Yrs).	5 years 1 month 6 days
Exercisable	116,667
Exercise Price 1.5000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	756,667
Weighted Average Contractual Life (Yrs).	6 years
Exercisable	698,334
Exercise Price 1.8000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	34,735
Weighted Average Contractual Life (Yrs).	9 years
Exercisable	34,735
Exercise Price 2.1000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,666,667
Weighted Average Contractual Life (Yrs).	6 years 8 months 12 days
Exercisable	866,667
Exercise Price 2.7000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	387,667
Weighted Average Contractual Life (Yrs).	9 years 3 months 18 days
Exercisable
Exercise Price 3.0000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	906,667
Weighted Average Contractual Life (Yrs).	6 years 1 month 6 days
Exercisable	906,667
Exercise Price 3.5700 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	31,111
Weighted Average Contractual Life (Yrs).	8 years 3 months 18 days
Exercisable	20,556
Exercise Price 3.9000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	8,333
Weighted Average Contractual Life (Yrs).	7 years 2 months 12 days
Exercisable	8,333
Exercise Price 4.5000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	93,333
Weighted Average Contractual Life (Yrs).	5 years 2 months 12 days
Exercisable	93,333
Exercise Price 6.6000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	69,444
Weighted Average Contractual Life (Yrs).	7 years 4 months 24 days
Exercisable	69,444
Exercise Price 7.2000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,657,463
Weighted Average Contractual Life (Yrs).	9 years 4 months 24 days
Exercisable	107,463
Exercise Price 7.5000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	83,333
Weighted Average Contractual Life (Yrs).	7 years 2 months 12 days
Exercisable	83,333
Exercise Price 7.8000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	2,255,557
Weighted Average Contractual Life (Yrs).	9 years 10 months 24 days
Exercisable	5,556
Exercise Price 8.7000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	33,333
Weighted Average Contractual Life (Yrs).	6 years 8 months 12 days
Exercisable	33,333
Exercise Price 12.0000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	33,333
Weighted Average Contractual Life (Yrs).	5 years 6 months
Exercisable	33,333
Exercise Price 13.5000 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,033,333
Weighted Average Contractual Life (Yrs).	5 years 2 months 12 days
Exercisable	1,033,333

Direct Financing Lease (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
Direct Financing Lease (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Direct Financing Lease (Details) [Line Items]
Incremental revenue		$ 26,000	$ 56,800	$ 63,400
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 (Details) [Line Items]
Lease contract term	10 years	10 years
Lease monthly rental	$ 11,900	$ 11,900
Purchase price at the end of lease term (in dollars per unit) (in Dollars per share)	$ 40	$ 40
Receive monthly payments	$ 11,856	$ 11,856
Lease rent expense	142,272	142,272
Estimated executory costs	$ 1,677	$ 1,677

Direct Financing Lease (Details) - Schedule of future minimum lease payments to be received - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Schedule of future minimum lease payments to be received [Abstract]
Remainder of 2021	$ 61,074	$ 122,148
2022	122,148
2023	122,148	122,148
2024	122,148	122,148
2025	122,148	122,148
Thereafter	40,716	40,716
Sub-total	590,382	651,456
Less deferred revenue	(131,050)	156,753
Net investment in lease	$ 459,332	$ 494,703

Lease Obligation Payable (Details) - USD ($)	6 Months Ended	12 Months Ended
Lease Obligation Payable (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Lease equipment	$ 163,407
Accumulated amortization	$ 139,297
Lease obligation interest rate	12.00%	12.00%
Amortization of lease equipment		$ 123,225
Lease obligation maturity date		Mar. 31, 2022

Lease Obligation Payable (Details) - Schedule of lease obligation payable - USD ($)	Dec. 31, 2022	Dec. 31, 2020
Schedule of lease obligation payable [Abstract]
2021	$ 21,548
2022	10,774
Total minimum lease payments	32,372	$ 49,794
Less: Amount representing interest	(1,559)	$ (4,076)
Present value of minimum lease payments	$ 30,763

Commitments and Contingencies (Details) - USD ($)	1 Months Ended					6 Months Ended	12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Apr. 30, 2021	Sep. 30, 2020	Apr. 30, 2020	Oct. 31, 2018	Apr. 30, 2017	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies (Details) [Line Items]
Short term lease expense						$ 103,000
Weighted average lease term						1 year	1 year 2 months 12 days
Weighted average discount rate						13.55%	13.55%
Description of leases							The Company intends to secure office space lease in Bogota with a smaller footprint and lower cost when its current lease expires in April 2021. The Company did not renew the apartment lease after it ended in October 2020.
Rent expense							$ 284,000	$ 439,000
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 has recorded the outstanding liability and it is included in “Other of Accounts Payable and Accrued Expenses”. See Note 5. The Company is in discussion with the provider with respect to functionality as well as the financial obligation.
New Office Facilities [Member] \| Subsequent Event [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments	$ 1,375
Long Beach, New York [Member]
Commitments and Contingencies (Details) [Line Items]
Agreement term							30 days
Long Beach, New York [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments						$ 2,500	$ 2,500	$ 7,425
Agreement term						30 days	30 days
Additional monthly rental payments		$ 5,000
COLOMBIA [Member] \| MultiPay S.A.S [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
South Africa [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Lease term date							Jun. 30, 2022
South Africa [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments						$ 8,000	$ 8,000
Lease term date						Jun. 30, 2022
Plantation [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments							2,700
Alpharetta Georgia [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments				$ 3,800
Lease term date				Mar. 31, 2020
COLOMBIA \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments							$ 2,000
COLOMBIA \| MultiPay S.A.S [Member] \| New Office Facilities [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments			$ 8,500
Agreement term			2 years

Commitments and Contingencies (Details) - Schedule of related lease balance - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of related lease balance [Abstract]
Current portion of operating lease ROU assets - included in other current assets	$ 89,210	$ 121,285
Operating lease ROU assets – included in Other Assets		49,856
Total operating lease assets	89,210	171,141
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	92,503	117,414
Long-term portion of ROU liabilities – included in Other liabilities		47,809
Total operating lease liabilities	$ 92,503	$ 165,223

Commitments and Contingencies (Details) - Schedule of future minimum lease payments required under convertible operating leases - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of future minimum lease payments required under convertible operating leases [Abstract]
Remainder of 2021	$ 48,303	$ 130,261
2022	49,716	49,716
Total operating lease payments	98,019	179,977
Less: Imputed interest	(5,516)	(14,754)
Total operating lease liabilities	$ 92,503	$ 165,223

Segment Information (Details)	6 Months Ended	12 Months Ended
Segment Information (Details)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment Information (Details) [Line Items]
Number of reportable segments	2	2
Goodwill	$ 4,183,232	$ 4,183,232	$ 5,218,861
North America [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	8,000,000.0	9,100,000
Goodwill		4,200,000
South America [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	100,000	400,000
Goodwill		0.0
Africa [Member]
Segment Information (Details) [Line Items]
Gross long lived assets	$ 200,000	1,400,000
Goodwill		$ 1,200,000

Segment Information (Details) - Schedule of geographic region and reconciliation consolidated revenue, gross profit, and net loss - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Net Revenues:
Revenues, net	$ 577,781	$ 321,119	$ 1,166,780	$ 1,114,908	$ 2,140,644	$ 2,552,045
Loss From Operations
Loss From Operations	(3,290,587)	(2,806,621)	(5,477,497)	(5,479,229)	(9,009,765)	(10,085,749)
Interest Expense	(256,550)	(310,153)	(553,988)	(489,203)	(969,396)	(375,598)
Other income/(expense)	491,881	(342,082)	493,418	(1,317,971)	(1,283,074)	23,920
Loss before income taxes	(3,055,256)	(3,458,856)	(5,538,067)	(7,286,403)	(11,262,235)	(10,437,427)
Income tax expense	(2,354)	(3,592)	(9,542)	(12,466)	(36,323)	(62,931)
Net loss	(3,057,610)	(3,462,448)	(5,547,609)	(7,298,869)	(11,298,558)	(10,500,358)
Identity Management [Member]
Net Revenues:
Revenues, net	488,366	248,986	981,182	929,151	1,791,270	2,090,570
Loss From Operations
Loss From Operations	(2,237,222)	(1,002,837)	(3,692,444)	(2,463,293)	(4,046,792)	(4,899,199)
Payment Processing [Member]
Net Revenues:
Revenues, net	89,415	72,133	185,598	185,757	349,374	455,475
Loss From Operations
Loss From Operations	(1,053,365)	(1,803,784)	(1,785,053)	(3,015,936)	(4,962,973)	(5,186,550)
North America [Member]
Net Revenues:
Revenues, net	153,687	135,698	301,747	269,252	612,271	642,313
Loss From Operations
Loss From Operations	(2,017,716)	(669,183)	(3,288,119)	(1,076,575)	(2,237,745)	(3,536,664)
South America [Member]
Net Revenues:
Revenues, net	89,415	72,133	185,598	185,757	349,374	455,475
Loss From Operations
Loss From Operations	(1,053,365)	(1,803,784)	(1,785,053)	(3,015,936)	(4,962,973)	(5,186,550)
Africa [Member]
Net Revenues:
Revenues, net	334,679	113,288	679,435	659,899	1,178,999	1,454,257
Loss From Operations
Loss From Operations	$ (219,506)	$ (333,654)	$ (404,325)	$ (1,386,718)	$ (1,809,047)	$ (1,362,535)

Description of Business amd Summary of Significant Accounting Policies (Details) - Schedule of potentially dilutive securities - shares	6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Description of Business amd Summary of Significant Accounting Policies (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	10,696,479	6,425,109	8,736,697	5,400,901
Convertible Notes Payable [Member]
Description of Business amd Summary of Significant Accounting Policies (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	117,529	1,182,557	1,267,661	179,126
Stock options [Member]
Description of Business amd Summary of Significant Accounting Policies (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares			5,645,802	3,646,667
Warrant [Member]
Description of Business amd Summary of Significant Accounting Policies (Details) - Schedule of potentially dilutive securities [Line Items]
Number of shares	1,411,308	1,581,774	1,823,234	1,575,108

Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross		$ 461,246	$ 439,183
Less Accumulated depreciation	$ (391,078)	(363,417)	(277,363)
Property and equipment, net	$ 148,493	97,829	161,820
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross		297,839	282,316
Equipment under capital lease [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross		$ 163,407	$ 156,867

Other Assets (Details) - Schedule of other assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of other assets [Abstract]
Software and development			$ 128,005
Operating Lease ROU Assets		$ 49,856	171,141
Other	136,163	190,367	83,920
Total	$ 136,163	$ 240,223	$ 383,066

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets, net (other than goodwill) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning	$ 4,527,476	$ 5,593,612	$ 3,310,184
Additions	10,829	427,441	3,142,363
Impairment of assets		(297,937)	(154,622)
Amortization	(3,092,889)	(1,195,640)	(704,313)
Carrying Value at ending	$ 3,941,547	4,527,476	$ 5,593,612
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years		10 years
Carrying Value at beginning	$ 811,303	970,019	$ 1,128,734
Additions
Amortization	(858,819)	(158,716)	(158,715)
Carrying Value at ending	$ 728,340	811,303	$ 970,019
Acquired And Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years		5 years
Carrying Value at beginning	$ 3,171,394	3,651,924	$ 908,893
Additions		404,720	3,111,668
Amortization	(1,771,173)	(885,250)	(368,637)
Carrying Value at ending	$ 2,705,100	3,171,394	$ 3,651,924
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years		10 years
Carrying Value at beginning	$ 416,471	862,792	$ 1,191,942
Additions
Impairment of assets		(297,937)	(154,622)
Amortization	(452,776)	(148,384)	(174,528)
Carrying Value at ending	$ 375,804	416,471	$ 862,792
Non-Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives			10 years
Carrying Value at beginning			$ 2,433
Amortization			(2,433)
Patents
Finite-Lived Intangible Assets [Line Items]
Useful Lives
Carrying Value at beginning	$ 128,308	108,877	78,182
Additions	10,829	22,721	30,695
Amortization	(10,121)	(3,290)
Carrying Value at ending	$ 132,303	$ 128,308	$ 108,877

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		$ 7,037,695	$ 7,280,036
Accumulated amortization		(2,510,219)	(1,686,424)
Carrying Value	$ 3,941,547	4,527,476	5,593,612	$ 3,310,184
Customer Relationships [Member]
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		1,587,159	1,587,159
Accumulated amortization		(775,856)	(617,140)
Carrying Value	728,340	811,303	970,019	1,128,734
Acquired And Developed Software [Member]
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		4,476,271	4,071,550
Accumulated amortization		(1,304,877)	(419,626)
Carrying Value	2,705,100	3,171,394	3,651,924	908,893
Intellectual Property [Member]
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		828,580	1,498,363
Accumulated amortization		(412,109)	(635,571)
Carrying Value	375,804	416,471	862,792	1,191,942
Non-Compete [Member]
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		14,087	14,087
Accumulated amortization		(14,087)	(14,087)
Carrying Value				2,433
Patents [Member]
Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of intangible assets [Line Items]
Cost		131,598	108,877
Accumulated amortization		(3,290)
Carrying Value	$ 132,303	$ 128,308	$ 108,877	$ 78,182

Intangible Assets, Net (Other Than Goodwill) (Details) - Schedule of future amortization expense of intangible assets - USD ($)	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of future amortization expense of intangible assets [Abstract]
2021	$ 593,476	$ 1,185,868
2022	1,093,618	1,092,535
2023		1,041,546
2024		817,959
2025		327,063
Thereafter		62,505
Total	$ 3,941,547	$ 4,527,476	$ 5,593,612	$ 3,310,184

Accounts Payable and Accrued Expenses (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($)

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Dec. 31, 2019

Schedule of Accounts Payable and Accrued Liabilities [Abstract]

Trade payables

$ 438,702

$ 311,024

$ 513,292

Accrued interest

919

554,755

641,834

Accrued payroll and related expenses

891,790

386,165

Current portion of operating lease liabilities

92,503

117,414

242,650

Other

411,352

^[1]

790,149

^[1],[2]

790,149

^[1],[2]

431,971

^[2]

Total

$ 2,103,954

$ 2,665,132

$ 2,215,912

[1]	Included in Other expenses was accrued non-employee Directors’ Compensation of approximately $349,000 at December 31, 2020. In May 2021, the non-employee Directors were compensated for their service through a grant of stock options and therefore the balance of the accrual for Director’s Compensation was $ 0 at June 30, 2021. See Note 10.
[2]	Included in other is accrued Board of Directors Compensation of $349,000 and $54,000 as of December 31, 2020 and December 31, 2019, respectively. We anticipate the non-management Board of Directors will be compensated for their service through the issuance of stock compensation after the next Annual Meeting.

Notes Payable, Net (Details) - Schedule of summary of notes payable - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2021
Schedule of summary of notes payable [Abstract]
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	7,526	12,866	$ 4,632
Total Principal Outstanding	493,286	2,012,866
Unamortized Deferred Debt Discount		(26,722)
Unamortized Deferred Debt Issuance Costs		(9,866)
Notes Payable, Net	493,286	1,976,278	490,392
Notes Payable, current portion, net of discounts and current portion	5,947	5,341
Notes Payable, net of discounts and current portion	487,339	1,970,937
Total	$ 493,286	$ 1,976,278	$ 490,392

Notes Payable, Net (Details) - Schedule of summary of notes payable (Parentheticals)	12 Months Ended
	Dec. 31, 2020 USD ($)
Schedule of summary of notes payable [Abstract]
Vehicle acquisition payable	$ 539
Interest rate per annum payable	10.80%

Notes Payable, Net (Details) - Schedule of notes payable and related discounts - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Notes Payable, Net (Details) - Schedule of notes payable and related discounts [Line Items]
Balance	$ 1,976,278	$ 1,853,648
Proceeds	485,760	16,510
Payments	(5,340)	(3,644)
Conversion of note payable to convertible notes payable	(2,000,000)
Amortization	36,588	109,764
Balance	493,286	1,976,278
Principal Balance [Member]
Notes Payable, Net (Details) - Schedule of notes payable and related discounts [Line Items]
Balance	2,012,866	2,000,000
Proceeds	485,760	16,510
Payments	(5,340)	(3,644)
Conversion of note payable to convertible notes payable	(2,000,000)
Balance	493,286	2,012,866
Debt Discounts [Member]
Notes Payable, Net (Details) - Schedule of notes payable and related discounts [Line Items]
Balance	(9,866)	(39,466)
Amortization	9,866	29,600
Balance		(9,866)
Debt Issuance Costs [Mmber]
Notes Payable, Net (Details) - Schedule of notes payable and related discounts [Line Items]
Balance	(26,722)	(106,886)
Amortization	26,722	80,164
Balance		$ (26,722)

Notes Payable, Net (Details) - Schedule of future maturities of notes payable	Dec. 31, 2020 USD ($)
Schedule of future maturities of notes payable [Abstract]
2021	$ 5,947
2022	487,339
Total	$ 493,286

Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable	$ 662,000	$ 5,800,976
Unamortized discount on convertible notes		(494,138)
Unamortized debt issuance costs		(59,886)
8% convertible notes payable issued December 2019 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable		428,000
15% convertible notes payable issued February 2020 [Member]
Convertible Notes Payable (Details) - Schedule of convertible notes payable outstanding [Line Items]
Convertible notes payable		5,265,000
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	$ 662,000

Convertible Notes Payable (Details) - Schedule of future maturities of convertible debt - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of future maturities of convertible debt [Abstract]
2021
2022	662.000	6,355,000
Total convertible notes payable	$ 662,000	$ 6,355,000

Stockholders' Equity (Details) - Schedule of granted warrants - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of granted warrants [Abstract]
Number of Shares, Outstanding balance at beginning (in Shares)	1,823,234	1,581,774	1,540,049
Weighted Average Exercise Price, Outstanding balance at beginning	$ 4.20	$ 3.30	$ 3.30
Weighted Average Remaining Life, Outstanding balance at beginning			2 years 10 months 24 days
Number of Shares, Granted (in Shares)		1,227,389	41,725
Weighted Average Exercise Price, Granted		$ 4.50	$ 2.70
Weighted Average Remaining Life, Granted		5 years	5 years
Number of Shares, Exercised/Cancelled (in Shares)		(985,930)
Weighted Average Exercise Price, Exercised/Cancelled		$ 1.80
Weighted Average Remaining Life, Exercised/Cancelled	$ 5.92	$ 4.50
Number of Shares, Outstanding balance at ending (in Shares)		1,823,234	1,581,774
Weighted Average Exercise Price, Outstanding balance at ending		$ 4.20	$ 3.30
Weighted Average Remaining Life, Outstanding balance at ending		3 years 4 months 24 days	1 year 10 months 24 days

Stockholders' Equity (Details) - Schedule of black - scholes option-pricing model valuation assumption	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity (Details) - Schedule of black - scholes option-pricing model valuation assumption [Line Items]
Dividend Rate	0.00%	0.00%
Minimum [Member]
Stockholders' Equity (Details) - Schedule of black - scholes option-pricing model valuation assumption [Line Items]
Expected Volatility	67.00%	75.00%
Expected Term	2 years 6 months	2 years 6 months
Risk Free Rate	0.33%	1.73%
Maximum [Member]
Stockholders' Equity (Details) - Schedule of black - scholes option-pricing model valuation assumption [Line Items]
Expected Volatility	75.00%	80.00%
Expected Term	5 years 10 months 24 days	5 years 10 months 24 days
Risk Free Rate	0.50%	2.49%

Stockholders' Equity (Details) - Schedule of outstanding stock options - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of outstanding stock options [Abstract]
Number of Shares, Outstanding at beginning	5,645,802	3,646,667	3,541,778
Weighted Average Exercise Price, Outstanding at beginning	$ 4.50	$ 5.40	$ 5.70
Weighted Average Contractual Term (Yrs.), Outstanding at beginning	7 years 6 months		9 years 6 months
Aggregate Intrinsic Value, Outstanding at beginning	$ 8,283,639	$ 280,000	$ 11,457,291
Number of Shares, Granted	3,938,246	2,089,135	120,000
Weighted Average Exercise Price, Granted	$ 7.54	$ 2.10	$ 2.10
Weighted Average Contractual Term (Yrs.), Granted	10 years	10 years	10 years
Aggregate Intrinsic Value, Granted
Number of Shares, Exercised/Forfeited	(416,405)	(90,000)	(15,111)
Weighted Average Exercise Price, Exercised/Forfeited	$ 1.50	$ 2.70	$ 3.90
Weighted Average Contractual Term (Yrs.), Exercised/Forfeited
Aggregate Intrinsic Value, Exercised/Forfeited
Number of Shares, Exercisable at ending	4,111,087	3,772,858
Weighted Average Exercise Price, Exercisable at ending	$ 5.77	$ 5.70
Weighted Average Contractual Term (Yrs.), Exercisable at ending		6 years 6 months
Aggregate Intrinsic Value, Exercisable at ending	$ 27,405,283	$ 4,862,410
Number of Shares, Outstanding at ending	9,167,643	5,645,802	3,646,667
Weighted Average Exercise Price, Outstanding at ending		$ 4.50	$ 5.40
Weighted Average Contractual Term (Yrs.), Outstanding at ending	7 years 9 months 18 days	6 years 10 months 24 days	6 years 6 months
Aggregate Intrinsic Value, Outstanding at ending	$ 55,257,928	$ 8,283,639	$ 280,000

Stockholders' Equity (Details) - Schedule of stock option - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	9,167,643	5,645,802
Weighted Average Contractual Life (Yrs.)	7 years 2 months 12 days	6 years 10 months 24 days
Exercisable	4,111,087	3,772,857
Exercise Price $0.003 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		116,667
Weighted Average Contractual Life (Yrs.)		5 years 6 months
Exercisable		116,667
Exercise Price $1.50 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		1,123,334
Weighted Average Contractual Life (Yrs.)		6 years 4 months 24 days
Exercisable		1,031,667
Exercise Price $1.80 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		34,802
Weighted Average Contractual Life (Yrs.)		9 years 4 months 24 days
Exercisable		34,802
Exercise Price $2.10 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		1,666,667
Weighted Average Contractual Life (Yrs.)		9 years 8 months 12 days
Exercisable		333,333
Exercise Price $2.70 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		387,667
Weighted Average Contractual Life (Yrs.)		9 months 18 days
Exercise Price $3.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		906,667
Weighted Average Contractual Life (Yrs.)		6 years 6 months
Exercisable		906,667
Exercise Price $3.60 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		33,333
Weighted Average Contractual Life (Yrs.)		8 years 9 months 18 days
Exercisable		11,945
Exercise Price $3.90 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		8,333
Weighted Average Contractual Life (Yrs.)		7 years 7 months 6 days
Exercisable		8,333
Exercise Price $4.50 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		93,333
Weighted Average Contractual Life (Yrs.)		5 years 7 months 6 days
Exercisable		93,333
Exercise Price $6.60 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		86,111
Weighted Average Contractual Life (Yrs.)		7 years 9 months 18 days
Exercisable		69,444
Exercise Price $7.50 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		83,333
Weighted Average Contractual Life (Yrs.)		7 years 7 months 6 days
Exercisable		61,111
Exercise Price $7.80 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		5,556
Weighted Average Contractual Life (Yrs.)		8 years 1 month 6 days
Exercisable		5,556
Exercise Price $8.70 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		33,333
Weighted Average Contractual Life (Yrs.)		7 years 1 month 6 days
Exercisable		33,333
Exercise Price $12.00 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		33,333
Weighted Average Contractual Life (Yrs.)		5 years 10 months 24 days
Exercisable		33,333
Exercise Price $13.50 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding		1,033,333
Weighted Average Contractual Life (Yrs.)		5 years 7 months 6 days
Exercisable		1,033,333

Direct Financing Lease (Details) - Schedule of future minimum lease payments to be received - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Schedule of future minimum lease payments to be received [Abstract]
2021	$ 61,074	$ 122,148
2022	122,148	122,148
2023	122,148	122,148
2024	122,148	122,148
2025		122,148
Thereafter	40,716	40,716
Sub-total	590,382	651,456
Less deferred revenue	131,050	(156,753)
Net investment in lease	$ 459,332	$ 494,703

Lease Obligation Payable (Details) - Schedule of lease obligation payable - USD ($)	Dec. 31, 2022	Dec. 31, 2020
Schedule of lease obligation payable [Abstract]
2021		$ 43,096
2022		10,774
Total minimum lease payments		53,870
Less: Amount representing interest	$ (1,559)	(4,076)
Present value of minimum lease payments	$ 32,372	$ 49,794

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Payment for minimum taxes and other obligations	$ 36,000	$ 63,000
Federal operating loss carryforward	33,400,000
State operating loss carryforwards	33,400,000
Operating loss carry forwards	$ 14,400,000
Expiration Year	2037
Income tax net operating loss	$ 19,000,000.0
Valuation allowance	$ 15,300,000

Income Taxes (Details) - Schedule of income taxes - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Income Taxes (Details) - Schedule of income taxes [Line Items]
Loss before income taxes	$ (3,055,256)	$ (3,458,856)	$ (5,538,067)	$ (7,286,403)	$ (11,262,235)	$ (10,437,427)
United States [Member]
Income Taxes (Details) - Schedule of income taxes [Line Items]
Loss before income taxes					(8,899,719)	(8,548,570)
Outside United States [Member]
Income Taxes (Details) - Schedule of income taxes [Line Items]
Loss before income taxes					$ (2,362,516)	$ (1,888,857)

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

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))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-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=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes (Details) - Schedule of reconciliation from the U.S. Federal statutory income rate	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020
Schedule of reconciliation from the U.S. Federal statutory income rate [Abstract]
US Federal statutory tax rate	21.00%	21.00%
State taxes	4.35%	4.35%
NOL true-ups	(14.93%)	5.27%
Change in valuation allowance	(10.42%)	(30.62%)
Total	0.00%	0.00%

Income Taxes (Details) - Schedule of components of deferred tax assets and liabilities - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Schedule of components of deferred tax assets and liabilities [Abstract]
Net operating loss	$ 8,472,849	$ 7,681,718
Stock options	6,359,279	6,632,746
Charitable contributions	1,267	1,267
Basis difference in intangible assets	64,848	7,405
Convertible note payable discount	205,557
Accrued payroll	186,159	51,907
Valuation allowance	(15,289,959)	(14,365,195)
Total deferred tax asset		9,848
Debt discounts		(6,769)
Debt issuance costs		(2,501)
Basis difference fixed assets		(578)
Total deferred tax liability		(9,848)
Net deferred tax asset

Commitments and Contingencies (Details) - Schedule of related lease balance - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of related lease balance [Abstract]
Current portion of operating lease ROU assets - included in other current assets	$ 89,210	$ 121,285
Operating lease ROU assets – included in Other Assets		49,856
Total operating lease assets	89,210	171,141
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	92,503	117,414
Long-term portion of ROU liabilities – included in Other liabilities		47,809
Total operating lease liabilities	$ 92,503	$ 165,223

Commitments and Contingencies (Details) - Schedule of future minimum lease payments required under convertible operating leases - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Schedule of future minimum lease payments required under convertible operating leases [Abstract]
2021	$ 48,303	$ 130,261
2022	49,716	49,716
Total operating lease payments	98,019	179,977
Less: Imputed interest	(5,516)	(14,754)
Total operating lease liabilities	$ 92,503	$ 165,223

Segment Information (Details) - Schedule of geographic region - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues, net	$ 577,781	$ 321,119	$ 1,166,780	$ 1,114,908	$ 2,140,644	$ 2,552,045
Loss From Operations	(3,290,587)	(2,806,621)	(5,477,497)	(5,479,229)	(9,009,765)	(10,085,749)
Interest Expense	(256,550)	(310,153)	(553,988)	(489,203)	(969,396)	(375,598)
Other (expense)/income	491,881	(342,082)	493,418	(1,317,971)	(1,283,074)	23,920
Loss before income taxes	(3,055,256)	(3,458,856)	(5,538,067)	(7,286,403)	(11,262,235)	(10,437,427)
Income tax expense	(2,354)	(3,592)	(9,542)	(12,466)	(36,323)	(62,931)
Net loss					(11,298,258)	(10,500,358)
Identity Management [Member]
Segment Reporting Information [Line Items]
Revenues, net	488,366	248,986	981,182	929,151	1,791,270	2,090,570
Loss From Operations	(2,237,222)	(1,002,837)	(3,692,444)	(2,463,293)	(4,046,792)	(4,899,199)
Payment Processing [Member]
Segment Reporting Information [Line Items]
Revenues, net	89,415	72,133	185,598	185,757	349,374	455,475
Loss From Operations	(1,053,365)	(1,803,784)	(1,785,053)	(3,015,936)	(4,962,973)	(5,186,550)
North America [Member]
Segment Reporting Information [Line Items]
Revenues, net	153,687	135,698	301,747	269,252	612,271	642,313
Loss From Operations	(2,017,716)	(669,183)	(3,288,119)	(1,076,575)	(2,237,745)	(3,536,664)
South America [Member]
Segment Reporting Information [Line Items]
Revenues, net	89,415	72,133	185,598	185,757	349,374	455,475
Loss From Operations	(1,053,365)	(1,803,784)	(1,785,053)	(3,015,936)	(4,962,973)	(5,186,550)
Africa [Member]
Segment Reporting Information [Line Items]
Revenues, net	334,679	113,288	679,435	659,899	1,178,999	1,454,257
Loss From Operations	$ (219,506)	$ (333,654)	$ (404,325)	$ (1,386,718)	$ (1,809,047)	$ (1,362,535)