0001213900-22-024905 | 10-Q | XBRL Viewer

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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2022	Apr. 30, 2022
Document Information Line Items
Entity Registrant Name	Ipsidy Inc.
Trading Symbol	AUID
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		24,672,522
Amendment Flag	false
Entity Central Index Key	0001534154
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-40747
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-2069547
Entity Address, Address Line One	670 Long Beach Boulevard
Entity Address, City or Town	Long Beach
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11561
Local Phone Number	274-8700
City Area Code	516
Title of 12(b) Security	Common Stock par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash	$ 13,795,772	$ 6,037,983
Accounts receivable, net	186,366	137,823
Inventory	397,870	153,149
Other current assets	624,159	597,640
Total current assets	15,004,167	6,926,595
Property and Equipment, net	97,934	118,531
Other Assets	468,626	69,198
Intangible Assets, net	2,166,119	2,532,453
Goodwill	4,183,232	4,183,232
Total assets	21,920,078	13,830,009
Current Liabilities:
Accounts payable and accrued expenses	1,905,566	2,013,460
Notes payable obligation, current portion		1,579
Capital lease obligation, current portion		10,562
Convertible debt	662,000	662,000
Deferred revenue	402,495	246,830
Total current liabilities	2,970,061	2,934,431
Convertible debt	7,464,267
Total liabilities	10,434,328	2,934,431
Commitments and Contingencies (Note 12)
Stockholders’ Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 24,672,522 and 23,294,024 shares issued and outstanding as of March 31, 2022, and December 31, 2021, respectively	2,467	2,329
Additional paid in capital	132,439,724	126,581,702
Accumulated deficit	(121,200,667)	(115,899,939)
Accumulated comprehensive income	244,226	211,486
Total stockholders’ equity	11,485,750	10,895,578
Total liabilities and stockholders’ equity	$ 21,920,078	$ 13,830,009

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	24,672,522	23,294,024
Common stock, shares outstanding	24,672,522	23,294,024

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Products and services	$ 607,362	$ 575,913
Lease income		13,086
Total revenues, net	607,362	588,999
Operating Expenses:
Cost of Sales	184,086	216,144
General and administrative	4,764,349	1,927,926
Research and development	537,883	322,010
Impairment loss	143,703
Depreciation and amortization	243,678	309,829
Total operating expenses	5,873,699	2,775,909
Loss from operations	(5,266,337)	(2,186,910)
Other Expense:
Other income	5,151	1,537
Interest expense, net	(33,221)	(297,438)
Other income expense, net	(28,070)	(295,901)
Income loss before income taxes	(5,294,407)	(2,482,811)
Income Tax Expense	(6,321)	(7,188)
Net loss	$ (5,300,728)	$ (2,489,999)
Net Loss Per Share - Basic and Diluted (in Dollars per share)	$ (0.22)	$ (0.13)
Weighted Average Shares Outstanding - Basic and Diluted (in Shares)	23,563,852	19,758,957

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Loss	$ (5,300,728)	$ (2,489,999)
Foreign currency translation gain	32,740	40,356
Comprehensive loss	$ (5,267,988)	$ (2,449,643)

- 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, 2020	$ 1,964	$ 102,651,304	$ (98,234,151)	$ 160,642	$ 4,579,759
Balances (in Shares) at Dec. 31, 2020	19,642,401
Stock-based compensation		626,579			626,579
Convertible note converted to common stock	$ 3	124,077			124,080
Convertible note converted to common stock (in Shares)	32,950
Cashless stock option exercise	$ 18	(18)
Cashless stock option exercise (in Shares)	178,120
Cashless warrant exercise	$ 26	(26)
Cashless warrant exercise (in Shares)	262,759
Net loss			(2,489,999)		(2,489,999)
Foreign currency translation				40,356	40,356
Balances at Mar. 31, 2021	$ 2,011	103,401,916	(100,724,150)	200,998	2,880,775
Balances (in Shares) at Mar. 31, 2021	20,116,230
Balances at Dec. 31, 2021	$ 2,329	126,581,702	(115,899,939)	211,486	10,895,578
Balances (in Shares) at Dec. 31, 2021	23,294,024
Stock-based compensation		1,866,989			1,866,989
Sale of common stock for cash, net of offering costs	$ 106	3,146,834			3,146,940
Sale of common stock for cash, net of offering costs (in Shares)	1,063,514
Common stock issued with convertible debt	$ 3	91,754			91,757
Common stock issued with convertible debt (in Shares)	28,496
Common stock issued for working capital facility	$ 10	302,990			303,000
Common stock issued for working capital facility (in Shares)	100,000
Warrants for services with the issuance of convertible debt		449,474			449,474
Cashless stock option exercise	$ 19	(19)
Cashless stock option exercise (in Shares)	185,111
Cashless warrant exercise (in Shares)	1,377
Net loss			(5,300,728)		(5,300,728)
Foreign currency translation				32,740	32,740
Balances at Mar. 31, 2022	$ 2,467	$ 132,439,724	$ (121,200,667)	$ 244,226	$ 11,485,750
Balances (in Shares) at Mar. 31, 2022	24,672,522

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,300,728)	$ (2,489,999)
Adjustments to reconcile net loss with cash flows from operations:
Depreciation and amortization expense	243,678	309,829
Stock-based compensation	1,866,989	626,579
Impairment charge	143,703
Amortization of debt discounts and issuance costs	12,657	131,674
Changes in operating assets and liabilities:
Accounts receivable	(54,540)	(543,955)
Net investment in direct financing lease		17,450
Other current assets	180,048	(63,582)
Inventory	(261,773)	129,863
Accounts payable and accrued expenses	(87,423)	(124,665)
Deferred revenue	155,665	319,192
Other liabilities		11,697
Net cash flows from operating activities	(3,101,724)	(1,675,917)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets	(450)	(4,424)
Investment in other assets		18,845
Net cash flows from investing activities	(450)	14,421
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of offering costs	3,146,940
Proceeds from issuance of convertible debt, net of issuance costs	7,992,841
Proceeds from paycheck protection program loan		485,760
Payment of fees for working capital facility	(300,000)
Payments on notes payable	(1,579)
Principal payments on capital lease obligation	(10,562)	(10,801)
Net cash flows from financing activities	10,827,640	474,959
Effect of Foreign Currencies	32,323	39,338
Net Change in Cash	7,757,789	(1,147,199)
Cash, Beginning of the Period	6,037,983	3,765,277
Cash, End of the Period	13,795,772	2,618,078
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	240	8,779
Cash paid for income taxes	148,793	7,188
Non-cash Investing and Financing Activities:
Reclass from other assets to intangible assets		8,270
Settlement of accounts payable with issuance of common stock		349,376
Conversion of convertible note payable and accrued interest to common stock		6,232,340
Cashless option and warrant exercises	19	76
Common stock issued with convertible notes	91,757
Common stock for working capital facility	303,000
Warrants for services with the issuance of convertible debt	$ 449,474

Basis of Presentation

3 Months Ended

Mar. 31, 2022

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, 2021. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for future periods or the full year.

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

Going Concern

As of March 31, 2022, the Company had an accumulated deficit of approximately $121.2 million. For the three months ended March 31, 2022 the Company earned revenue of approximately $0.6 million and incurred a loss from operations of approximately $5.3 million.

The reports of our independent registered public accounting firm on our consolidated financial statements for the years ended December 31, 2021 and 2020 contained an emphasis of matter paragraph regarding the Company’s liquidity situation and management’s plan thereto.

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.

As discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, the Company has secured additional financing which management believes will provide adequate funding for its operations as it continues to invest in its product, people, and technology. The Company may need additional capital in the future but currently it believes it has sufficient funds to operate its business through December 31, 2023. See Notes 6, 8 and 10.

Subsequent Event

The Board of Directors of Ipsidy considers it in the best interests of the Company to focus its business activities on providing biometric identity verification products and services by means of our proprietary IDaaS platform. Accordingly, on May 4, 2022, the Board approved a plan to start to exit from certain non-core activities comprising the MultiPay correspondent bank, payments services in Colombia and the Card Plus cards manufacturing and printing business in South Africa.

Colombia

The Company plans to exit the MultiPay business in Colombia in an orderly fashion through the end of the 2022, honoring our obligations to employees, customers and under applicable laws and regulations. We plan to maintain our customer support and operations team in Bogota, which performs essential functions to support the global operations of our Verified family of products.

The Company will incur certain costs associated with its employees and other contractual obligations. MultiPay will continue to service its customer base in the interim as it will look to minimize all such costs and in addition to realize proceeds from the potential disposition of its assets. The Company cannot estimate the net costs to be incurred as a result of this decision at this time, but believes that the overall additional cash costs will not exceed $250,000. The Company has not recorded the potential costs or write-down in the three months ended March 31, 2022.

South Africa

The Company plans to exit the Cards Plus business and will seek a buy out of our interests. We have had preliminary discussions with one group but no definitive terms for the sale have been agreed at this point.

If we are successful in achieving a sale of our interest it is expected that there will be a net cash inflow resulting from the planned exit of our business in South Africa. There is no guarantee that we will be successful in finding a buyer for our interest, that such sale will be on acceptable terms or that this will result in a net cash inflow. As a result of these preliminary discussions, the Company has decided to write-down the value of the Cards Plus intangible assets and has recorded an impairment charge of approximately $144,000 in the three months ended March 31, 2022.

In the three months ended March 31, 2022, MultiPay and Cards Plus revenue was approximately $69,000 and $373,000, respectively, and MultiPay had a loss of approximately $68,000 with Cards Plus contributing approximately $11,000 of net income. These amounts do not include any corporate overhead allocation nor any amounts relating to the proposed exits.

The financial statements of Cards Plus and the Colombian operations have not been classified as discontinued operations as of March 31, 2022 as all required classification criteria under Accounting Standards Codification 205 were not met until May 2022.

Net Loss per Common Share

The Company computes net loss per share in accordance with FASB ASC 260, “Earnings per Share”. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the statement of operations. Basic EPS is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. The following potentially dilutive securities were excluded from the calculation of diluted loss per share for the three months ended March 31, 2022 and 2021 because their effect was antidilutive:

Security
	2022		2021
Convertible notes payable		2,598,741		1,146,917
Warrants		1,544,633		1,411,308
Stock options		9,151,167		5,411,180
		13,294,541		7,969,405

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 loyalty ID and other types of cards. Inventories of kiosks held by IDGS S.A.S are stated at the lower of cost (using the first-in, first-out method) or net realizable value.

Inventories at March 31, 2022 and December 31, 2021 consist of cards inventory. As of March 31, 2022 and December 31, 2021, respectively, the Company recorded an inventory valuation allowance of approximately $23,000 and $20,000, respectively to reflect net realizable value of the cards inventory.

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

Revenue Recognition

Cards Plus – The Company recognizes revenue for the design and production of cards at the point in time when products are shipped, or services have been performed due to the short-term nature of the contracts. Additionally, the cards produced by the Company have no alternative use and the Company has an enforceable right to payment for work performed should the contract be cancelled. As of March 31, 2022 and December 31, 2021, Cards Plus had approximately $332,000 and $48,000, 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/or for variable fees generated that are earned on a usage fee earned over time based on monthly transaction or user volumes and/or on a monthly flat fee rate. The Company had a contract liability of approximately $71,000 and $150,000 as of March 31, 2022, and December 31, 2021, respectively, for certain revenue that will be earned in future periods. Of the $71,000 of deferred revenue contract liability as of March 31, 2022, the majority will be earned during the balance of 2022. The majority of the deferred revenue contract liability as of December 31, 2020, was recognized in the quarter ended March 31, 2021. 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. During the three months ended March 31, 2022 and 2021, the Company provided annual software maintenance support services relating to previously licensed software on a stand ready basis. These fees were billed in advance and recognized ratably over the requisite service period as revenue.

During the three months ended March 31, 2022, the Company had revenues from operations in North America, South America and Africa of $0.2 million, $0.1 million and $0.3 million, respectively, compared to $0.1 million, $0.1 million and $0.4 million, respectively, in the three months ended March 31, 2021.

Furthermore, the Company will capitalize the incremental costs of acquiring and fulfilling a contract with a customer if the Company expects to recover those costs. These incremental costs were immaterial in both three-month periods and the Company recognizes these costs as incurred as it typically relates to a period of less than 1 year as allowed by the practical expedient and the amounts in the period were immaterial.

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 March 31, 2022 and December 31, 2021, the Company did not have any deferred contract costs or fees payable.

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.

Property and Equipment, Net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

NOTE 2 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following as of March 31, 2022 and December 31, 2021:

	March 31, 2022			December 31, 2021
Property and equipment	$	387,875		$	387,875
Equipment under finance lease (see Note 10)		163,407			163,407
		551,282			551,282
Less Accumulated depreciation		(453,348	)		(432,751	)
Property and equipment, net	$	97,934		$	118,531

Depreciation expense totaled $20,597 and $14,525 for the three months ended March 31, 2022, and 2021, respectively.

Other Assets

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

OTHER ASSETS

NOTE 3 – OTHER ASSETS

Other assets consisted of the following at March 31, 2022 and December 31, 2021:

	March 31, 2021		December 31, 2021

Unamortized working capital facility fees	$	398,261		-
Other		70,365		69,168
	$	468,626	$	69,198

Intangible Assets, Net (Other than Goodwill)

3 Months Ended

Mar. 31, 2022

Intangible Assets, Net (Other than Goodwill) [Abstract]

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

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

The Company’s intangible assets consist of intellectual property acquired from MultiPay and FIN and are amortized over their estimated useful lives as indicated below. The following is a summary of activity related to intangible assets for the three months ended March 31, 2022:

	Customer Relationships			Acquired and Developed Software			Patents			Total

Useful Lives	10 Years			5 Years			10 years

Carrying Value at December 31, 2021	$	153,001		$	2,238,882		$	140,570		$	2,532,453
Additions		-			-			450			450
Impairment of assets		(143,703	)		-			-			(143,703	)
Amortization		(9,298	)		(209,814	)		(3,969	)		(223,081	)
Carrying Value at March 31, 2022	$	-		$	2,029,068		$	137,051		$	2,166,119

The following is a summary of intangible assets as of March 31, 2022:

	Customer Relationships			Acquired and Developed Software			Patents			Total

Cost	$	372,130		$	4,476,271		$	158,753		$	5,007,154
Accumulated amortization		(372,130	)		(2,447,203	)		(21,702	)		(2,841,035	)
Carrying Value at March 31, 2022	$	-		$	2,029,068		$	137,051		$	2,166,119

Amortization expense totaled $223,081 and $298,095 for the three months ended March 31, 2022, and 2021, respectively.

Future expected amortization of intangible assets is as follows:

Fiscal Year Ending December 31,

Remainder of 2022	$	712,608
2023		792,810
2024		527,965
2025		56,468
2026		15,875
2027		15,875
Thereafter		44,518
	$	2,166,119

Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
Trade payables	$	693,246	$	593,563
Accrued interest		50,103		33,533
Accrued payroll and related obligations		717,581		836,793
Current portion of operating lease liabilities		41,666		69,812
Other		402,970		479,759
Total	$	1,905,566	$	2,013,460

Working Capital Faciltiy

3 Months Ended

Mar. 31, 2022

Working Capital Faciltiy [Abstract]

WORKING CAPITAL FACILTIY

NOTE 6 – WORKING CAPITAL FACILTIY

On March 21, 2022, the Company entered into a Facility Agreement with a current shareholder and noteholder of the Company, pursuant to which the shareholder agreed to provide to the Company a $10.0 million unsecured standby line of credit facility that will rank behind the Convertible Notes (see Note 8) and may be drawn down in several tranches, subject to certain conditions described in the Facility Agreement (the “Credit Facility”). Pursuant to the Credit Facility, the Company agreed to pay a facility commitment fee of 100,000 shares of our common stock upon the effective date of the Credit Facility.

Outstanding borrowings under the Credit Facility will accrue interest at 15% per annum. Drawdowns of the Credit Facility will be in tranches of not less than $500,000 up to the maximum amount of the Credit Facility, subject to the satisfaction of customary certifications and a certification from the Company that it has no more than $5 million of cash available to it as of the date of the drawdown request. The Credit Facility contemplates that the terms of the borrowings will be further set out in promissory notes that will contain representations and warranties and customary covenants and events of default. The Company will be permitted to prepay borrowings under the Credit Facility at any time, without penalty, in part or in full. Upon conversion or redemption of all amounts outstanding under the Convertible Notes and release of all security over the Company’s assets, the Company will provide a lien on the Company’s intellectual property assets to secure the Credit Facility.

There were no borrowings under the Credit Facility as of March 31, 2022. The unamortized deferred debt expense is approximately $597,000 of which $199,000 is included in other current assets and the balance in other assets.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Notes Payable, Net

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

NOTES PAYABLE, NET

NOTE 7 – NOTES PAYABLE, NET

The Company had an installment loan payable at a rate of 10.8% that was repaid as of March 31, 2022. The outstanding loan balance was $1,579 as of December 31, 2021.

Convertible Notes Payable

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 8 – CONVERTIBLE NOTES PAYABLE

On March 21, 2022, the Company entered into a Securities Purchase Agreement (“SPA”) with certain accredited investors, including certain directors of the Company or their affiliates (the “Note Investors”), and, pursuant to the SPA, sold to the Note Investors Senior Secured Convertible Notes (the “Convertible Notes”) with an aggregate initial principal amount of approximately $9.2 million and a conversion price of $3.70. The Convertible Notes were sold with an aggregate cash origination fee of approximately $200,000, and we issued a total of approximately 28,500 shares of our common stock to the Note Investors as an additional origination fee. The Convertible Notes will accrue interest at the rate of 9.75% per annum, which will be payable in cash or, for some or all of the first five interest payments, in shares of our common stock at the Company’s option, on the last day of each calendar quarter before the maturity date and on the maturity date. The maturity date of the Convertible Notes is March 31, 2025.

In connection with the issuance of the Convertible Notes, the Company issued 142,690 common stock warrants to the broker and its representatives with an estimated grant date fair value of approximately $449,000 which has been recorded as a reduction in the carrying value of the Convertible Notes.

The Company also has a note outstanding to the Stern Trust in the amount of $662,000 that earns 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 (the “Stern Note”). Theodore Stern, the Trustee of the Stern Trust was formerly a director of the Company. The maturity date of the Stern Note was previously February 29, 2022 and the Stern Trust and the Company have mutually agreed to extend the due date to December 31, 2022. The Stern Trust shall have the right at is sole option to extend the maturity date for a further six months after December 31, 2022, by service of written notice upon the Borrower at any time on or before December 31, 2022.

The following is a summary of the convertible notes payable outstanding as of March 31, 2022:

10.0% convertible note due December 31, 2022	$	662,000
9.75% convertible notes due March 31, 2025		9,176,224

less:
Unamortized debt discount expense		(271,797	)
Unamortized debt issuance expense		(1,440,160	)
	$	8,126,267

Future maturities of convertible notes payable as of March 31, 2022:

2022	$	662,000
2025		9,176,224
	$	9,838,224

- 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

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+ Details

Related Party Transactions

3 Months Ended

Mar. 31, 2022

RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

Convertible Notes Payable

The maturity date of the Stern Trust was previously February 29, 2022 and the Stern Trust and the Company mutually agreed to extend the due date to December 31, 2022. Mr. Stern, the trustee of the Stern Trust, is a former Director of the Company.

During the quarter ended March 31, 2022, two Directors, an affiliate of one of such Directors and one Executive Officer invested in $1.2 million of the Convertible Notes issued. See Note 8.

Issuance of Common Stock

Two Directors and one Executive Officer invested $0.2 million in the common stock offering in the quarter ended March 31, 2022. See Note 10.

Stockholder's Equity

3 Months Ended

Mar. 31, 2022

Stockholder's Equity [Abstract]

STOCKHOLDER’S EQUITY

NOTE 10 – STOCKHOLDER’S EQUITY

Common Stock

During the quarter ended March 31, 2022, shares of common stock were issued as a result of the following transactions:

	●	On March 18 and March 21, 2022, the Company entered into Subscription Agreements (the “Subscription Agreements”) with an accredited investor and certain members of authID.ai’s management team (the “PIPE Investors”), and, pursuant to the Subscription Agreements, sold to the PIPE Investors a total of 1,063,514 shares of our common stock at prices of $3.03 per share for an outside investor and $3.70 per share for the management investors (the “PIPE”). The aggregate gross proceeds from the PIPE are approximately $3.3 million.

	●	The Company issued total of approximately 28,500 shares of our common stock to the Note Investors as an additional origination fee.

	●	Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 186,488 common shares of the Company.

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

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

	●	Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 441,000 common shares of the Company.

Warrants

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2022:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2021		1,403,610		$	4.61		3.0 years
Granted		142,690		$	3.70		5.0 Years
Exercised/cancelled		(1,667	)	$	2.64		4.2 years
Outstanding at March 31, 2022		1,544,633		$	4.18		2.91 years

Stock Options

The Company determined the grant date fair value of options granted for the quarter ended March 31, 2022, using the Black Scholes Method and the following assumptions:

Expected volatility	127	%
Expected term	5 years
Risk free rate	2.14	%
Dividend rate	0.00	%

Activity related to stock options for the three months ended March 31, 2022, is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value
Outstanding as of December 31, 2021		8,910,994		$	4.50		7.5	$	8,283,639
Granted		546,204			2.83		10.0	$	-
Exercised		(281,031	)		3.28		8.8		3,485,482
Forfeited/cancelled		(25,000	)		12.93				-
Outstanding as of March 31, 2022		9,151,167		$	6.34		6.7	$	6,233,571
Exercisable as of March 31, 2022		4,676,151		$	5.34		4.3	$	5,271,207

The following table summarizes stock option information as of March 31, 2022:

Exercise Price	Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$.03 - $4.00		3,875,463		5.1		3,041,687
$4.01 - $7.00		151,667		4.5		151,667
$7.01 - $10.00		3,432,802		9.1		416,131
$10.01 - $15.97		1,691,235		5.6		1,066,666
		9,151,167		6.7		4,676,151

During the three months ended March 31, 2022, the Company recognized approximately $1,867,000 of stock option based compensation expense of which approximately $798,000 relates to market condition-based awards of directors and officers. As of March 31, 2022, there was approximately $14,528,000 of unrecognized compensation costs related to stock options outstanding that will be expensed through 2025.

- 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.

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+ Details

Lease Obligation Payable

3 Months Ended

Mar. 31, 2022

Lease Obligation Payable [Abstract]

LEASE OBLIGATION PAYABLE

NOTE 11 – LEASE OBLIGATION PAYABLE

The Company entered into a lease in March 2017 for the rental of its printer for its secured plastic and credential card products business under an arrangement that is classified as a finance lease. The leased equipment is amortized on a straight-line basis over its lease term including the last payment (61 payments) which would transfer ownership to the Company. The cost basis of the lease equipment is $163,407 and the accumulated amortization as of March 31, 2022, is $131,261. The lease was fully paid off as of March 31, 2022.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Legal Matters

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

Leases

For the three months ended March 31, 2022, lease expense was approximately $21,000 inclusive of short-term leases.

The lease related balances included in the Condensed Consolidated Balance Sheet as of March 31, 2022 were as follows:

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	46,383

Operating lease ROU assets – included in Other Assets	$	-

Total operating lease assets	$	46,383

Liabilities:

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	38,290

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

Total operating lease liabilities	$	38,290

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

The following table presents the maturity of the Company’s operating lease liabilities as of March 31, 2022:

2022	$	39,318
Total operating lease payments		39,318
Less: Imputed interest		(1,028	)
Total operating lease liabilities	$	38,290

The Company rents office space in Long Beach, New York at a monthly cost of $2,500. The agreement is month to month and can be terminated on 30 days’ notice. The agreement is between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, our former CEO and Board Member along with his family.

The Company leases an office location in Bogota, Colombia. In October 2021, MultiPay entered into a one-year lease for approximately $2,900 per month.

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

Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 13 – SEGMENT INFORMATION

General information

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

Information about revenue, profit/loss and assets

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

Long lived assets are in North America, South America and Africa. Most assets are intangible assets recorded from the acquisition of MultiPay (South America) in 2015 and FIN Holdings (North America and Africa) in 2016. Assets for North America, South America and Africa amounted to approximately $6.4 million, $0.1 million and $0.0 million, respectively.

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

	(unaudited) Three Months Ended
	March 31, 2022			March 31, 2021
Net Revenues:
North America	$	165,052		$	148,060
South America		69,152			96,183
Africa		373,158			344,756
		607,362			588,999

Identity Management		538,210			492,816
Payment Processing		69,152			96,183
		607,362			588,999
Loss From Operations:
North America		(4,058,689	)		(1,270,403	)
South America		(572,881	)		(731,688	)
Africa		(634,767	)		(184,819	)
		(5,266,337	)		(2,186,910	)

Identity Management		(4,693,456	)		(1,455,222	)
Payment Processing		(572,881	)		(731,688	)
		(5,266,337	)		(2,186,910	)

Interest Expense		(33,221	)		(297,438	)
Other income/(expense)		5,151			1,537

Loss before income taxes		(5,294,407	)		(2,482,811	)

Income tax expense		(6,321	)		(7,188	)

Net loss	$	(5,300,728	)	$	(2,489,999	)

- 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

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

+ Details

Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of computes net loss per share

Security
	2022		2021
Convertible notes payable		2,598,741		1,146,917
Warrants		1,544,633		1,411,308
Stock options		9,151,167		5,411,180
		13,294,541		7,969,405

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31, 2022			December 31, 2021
Property and equipment	$	387,875		$	387,875
Equipment under finance lease (see Note 10)		163,407			163,407
		551,282			551,282
Less Accumulated depreciation		(453,348	)		(432,751	)
Property and equipment, net	$	97,934		$	118,531

Other Assets (Tables)

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

Schedule of other assets

	March 31, 2021		December 31, 2021

Unamortized working capital facility fees	$	398,261		-
Other		70,365		69,168
	$	468,626	$	69,198

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

3 Months Ended

Mar. 31, 2022

Intangible Assets, Net (Other than Goodwill) [Abstract]

Schedule of intangible assets, net

	Customer Relationships			Acquired and Developed Software			Patents			Total

Useful Lives	10 Years			5 Years			10 years

Carrying Value at December 31, 2021	$	153,001		$	2,238,882		$	140,570		$	2,532,453
Additions		-			-			450			450
Impairment of assets		(143,703	)		-			-			(143,703	)
Amortization		(9,298	)		(209,814	)		(3,969	)		(223,081	)
Carrying Value at March 31, 2022	$	-		$	2,029,068		$	137,051		$	2,166,119

	Customer Relationships			Acquired and Developed Software			Patents			Total

Cost	$	372,130		$	4,476,271		$	158,753		$	5,007,154
Accumulated amortization		(372,130	)		(2,447,203	)		(21,702	)		(2,841,035	)
Carrying Value at March 31, 2022	$	-		$	2,029,068		$	137,051		$	2,166,119

Schedule of future expected amortization of intangible assets

Fiscal Year Ending December 31,

Remainder of 2022	$	712,608
2023		792,810
2024		527,965
2025		56,468
2026		15,875
2027		15,875
Thereafter		44,518
	$	2,166,119

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	March 31, 2022		December 31, 2021
Trade payables	$	693,246	$	593,563
Accrued interest		50,103		33,533
Accrued payroll and related obligations		717,581		836,793
Current portion of operating lease liabilities		41,666		69,812
Other		402,970		479,759
Total	$	1,905,566	$	2,013,460

Convertible Notes Payable (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of the convertible notes payable outstanding

10.0% convertible note due December 31, 2022	$	662,000
9.75% convertible notes due March 31, 2025		9,176,224

less:
Unamortized debt discount expense		(271,797	)
Unamortized debt issuance expense		(1,440,160	)
	$	8,126,267

Schedule of future maturities of convertible notes payable

2022	$	662,000
2025		9,176,224
	$	9,838,224

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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-Paragraph 1
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+ Details

Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of warrant activity

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2021		1,403,610		$	4.61		3.0 years
Granted		142,690		$	3.70		5.0 Years
Exercised/cancelled		(1,667	)	$	2.64		4.2 years
Outstanding at March 31, 2022		1,544,633		$	4.18		2.91 years

Schedule of grant date fair value of options granted

Expected volatility	127	%
Expected term	5 years
Risk free rate	2.14	%
Dividend rate	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 December 31, 2021		8,910,994		$	4.50		7.5	$	8,283,639
Granted		546,204			2.83		10.0	$	-
Exercised		(281,031	)		3.28		8.8		3,485,482
Forfeited/cancelled		(25,000	)		12.93				-
Outstanding as of March 31, 2022		9,151,167		$	6.34		6.7	$	6,233,571
Exercisable as of March 31, 2022		4,676,151		$	5.34		4.3	$	5,271,207

Schedule of stock option

Exercise Price	Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$.03 - $4.00		3,875,463		5.1		3,041,687
$4.01 - $7.00		151,667		4.5		151,667
$7.01 - $10.00		3,432,802		9.1		416,131
$10.01 - $15.97		1,691,235		5.6		1,066,666
		9,151,167		6.7		4,676,151

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of related lease balance

Assets:

Current portion of operating lease ROU assets - included in other current assets	$	46,383

Operating lease ROU assets – included in Other Assets	$	-

Total operating lease assets	$	46,383

Liabilities:

Current portion of ROU liabilities – included in Accounts payable and accrued expenses	$	38,290

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

Total operating lease liabilities	$	38,290

Schedule of maturity of the company's operating lease liabilities

2022	$	39,318
Total operating lease payments		39,318
Less: Imputed interest		(1,028	)
Total operating lease liabilities	$	38,290

Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

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

	(unaudited) Three Months Ended
	March 31, 2022			March 31, 2021
Net Revenues:
North America	$	165,052		$	148,060
South America		69,152			96,183
Africa		373,158			344,756
		607,362			588,999

Identity Management		538,210			492,816
Payment Processing		69,152			96,183
		607,362			588,999
Loss From Operations:
North America		(4,058,689	)		(1,270,403	)
South America		(572,881	)		(731,688	)
Africa		(634,767	)		(184,819	)
		(5,266,337	)		(2,186,910	)

Identity Management		(4,693,456	)		(1,455,222	)
Payment Processing		(572,881	)		(731,688	)
		(5,266,337	)		(2,186,910	)

Interest Expense		(33,221	)		(297,438	)
Other income/(expense)		5,151			1,537

Loss before income taxes		(5,294,407	)		(2,482,811	)

Income tax expense		(6,321	)		(7,188	)

Net loss	$	(5,300,728	)	$	(2,489,999	)

Basis of Presentation (Details) - USD ($)	3 Months Ended		12 Months Ended
Basis of Presentation (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Basis of Presentation (Details) [Line Items]
Accumulated deficit	$ 121,200,000
Earned revenue amount	600,000
Loss from operation	5,300,000
Cash costs	250,000
Impairment charge	$ 144,000
MultiPay and cards plus, description	In the three months ended March 31, 2022, MultiPay and Cards Plus revenue was approximately $69,000 and $373,000, respectively, and MultiPay had a loss of approximately $68,000 with Cards Plus contributing approximately $11,000 of net income.
Inventory valuation allowance	$ 23,000		$ 20,000
Cards Plus	332,000		48,000
Contract liability	71,000		$ 150,000
Deferred revenue contract liability	71,000
North America [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations	200,000	$ 100,000
South America [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations	100,000	100,000
Africa [Member]
Basis of Presentation (Details) [Line Items]
Revenues from operations	$ 300,000	$ 400,000

Basis of Presentation (Details) - Schedule of computes net loss per share - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	13,294,541	7,969,405
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	1,544,633	1,411,308
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	9,151,167	5,411,180
Convertible notes payable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	2,598,741	1,146,917

Property and Equipment, Net (Details) - USD ($)	3 Months Ended
Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 20,597	$ 14,525

Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 551,282	$ 551,282
Less accumulated depreciation	(453,348)	(432,751)
Property and equipment, net	97,934	118,531
Property and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	387,875	387,875
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 ($)	Mar. 31, 2022	Dec. 31, 2021
Schedule of other assets [Abstract]
Unamortized working capital facility fees	$ 398,261
Other	70,365	69,168
Total other assets	$ 468,626	$ 69,198

Intangible Assets, Net (Other than Goodwill) (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Intangible Assets, Net (Other than Goodwill) [Abstract]
Amortization expense totaled	$ 223,081	$ 298,095

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of intangible assets, net		3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying Value at beginning		$ 2,532,453
Additions		450
Impairment of assets	$ (143,703)
Amortization		(223,081)
Carrying Value at ending	2,166,119	2,166,119
Cost		5,007,154
Accumulated amortization		(2,841,035)
Carrying Value at March 31, 2022	2,166,119	$ 2,166,119
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives		10 years
Carrying Value at beginning		$ 153,001
Impairment of assets	(143,703)
Amortization		(9,298)
Cost		372,130
Accumulated amortization		$ (372,130)
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives		5 years
Carrying Value at beginning		$ 2,238,882
Additions
Amortization		(209,814)
Carrying Value at ending	2,029,068	2,029,068
Cost		4,476,271
Accumulated amortization		(2,447,203)
Carrying Value at March 31, 2022	2,029,068	$ 2,029,068
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives		10 years
Carrying Value at beginning		$ 140,570
Additions		450
Amortization		(3,969)
Carrying Value at ending	137,051	137,051
Cost		158,753
Accumulated amortization		(21,702)
Carrying Value at March 31, 2022	$ 137,051	$ 137,051

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of future expected amortization of intangible assets	Dec. 31, 2021 USD ($)
Schedule of future expected amortization of intangible assets [Abstract]
Remainder of 2022	$ 712,608
2023	792,810
2024	527,965
2025	56,468
2026	15,875
2027	15,875
Thereafter	44,518
Total	$ 2,166,119

Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Schedule of accounts payable and accrued expenses [Abstract]
Trade payables	$ 693,246	$ 593,563
Accrued interest	50,103	33,533
Accrued payroll and related obligations	717,581	836,793
Current portion of operating lease liabilities	41,666	69,812
Other	402,970	479,759
Total	$ 1,905,566	$ 2,013,460

Working Capital Faciltiy (Details)	3 Months Ended
Working Capital Faciltiy (Details)	Mar. 31, 2022 USD ($) shares
Working Capital Faciltiy [Abstract]
Unsecured line of credit facility	$ 10,000,000
Shares of our common stock (in Shares) \| shares	100,000
Outstanding borrowings interest rate	15.00%
Credit facility of maximum amount	$ 500,000
Drawdown cash	5,000,000
Unamortized deferred debt expense	597,000
Other current assets	$ 199,000

Notes Payable, Net (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Loan payable percentage	10.80%
Loan amount		$ 1,579

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Convertible Notes Payable (Details)	3 Months Ended
Convertible Notes Payable (Details)	Mar. 31, 2022 USD ($) $ / shares shares
Debt Disclosure [Abstract]
Aggregate initial principal amount	$ 9,200,000
Conversion price per share (in Dollars per share) \| $ / shares	$ 3.7
Aggregate cash origination fee	$ 200,000
Shares of our common stock (in Shares) \| shares	28,500
Convertible notes interest rate	9.75%
Common stock warrants (in Shares) \| shares	142,690
Fair value	$ 449,000
Outstanding amount	$ 662,000
Interest rate	10.00%
Conversion price (in Dollars per share) \| $ / shares	$ 6
Maturity date, description	The maturity date of the Stern Note was previously February 29, 2022 and the Stern Trust and the Company have mutually agreed to extend the due date to December 31, 2022.

Convertible Notes Payable (Details) - Schedule of the convertible notes payable outstanding	3 Months Ended
	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Unamortized debt discount expense	$ (271,797)
Unamortized debt issuance expense	(1,440,160)
Total	8,126,267
10.0% convertible note due December 31, 2022 [Member]
Debt Instrument [Line Items]
Convertible notes payable	662,000
9.75% convertible notes due March 31, 2025 [Member]
Debt Instrument [Line Items]
Convertible notes payable	$ 9,176,224

Convertible Notes Payable (Details) - Schedule of future maturities of convertible notes payable	Mar. 31, 2022 USD ($)
Schedule of future maturities of convertible notes payable [Abstract]
2022	$ 662,000
2025	9,176,224
Total	$ 9,838,224

Related Party Transactions (Details) $ in Millions	3 Months Ended
Related Party Transactions (Details) $ in Millions	Mar. 31, 2022 USD ($)
Two Directors [Member]
Related Party Transactions (Details) [Line Items]
Cash invested	$ 1.2
Common stock offering	0.2
Executive Officer [Member]
Related Party Transactions (Details) [Line Items]
Cash invested	1.2
Common stock offering	$ 0.2

Stockholder's Equity (Details) - USD ($)		3 Months Ended
Stockholder's Equity (Details) - USD ($)	Mar. 21, 2022	Mar. 31, 2022
Stockholder's Equity [Abstract]
Subscription agreements, description	the Company entered into Subscription Agreements (the “Subscription Agreements”) with an accredited investor and certain members of authID.ai’s management team (the “PIPE Investors”), and, pursuant to the Subscription Agreements, sold to the PIPE Investors a total of 1,063,514 shares of our common stock at prices of $3.03 per share for an outside investor and $3.70 per share for the management investors (the “PIPE”).
Gross proceeds		$ 3.3
Shares of our common stock (in Shares)		28,500
Common shares issued (in Shares)		186,488
Convertible notes totaling		$ 120,000
Shares of common stock (in Shares)		33,000
Common shares (in Shares)		441,000
Stock option based compensation expense		$ 1,867,000
Performance-based awards of directors and officers		798,000
Unrecognized compensation costs		$ 14,528,000

Stockholder's Equity (Details) - Schedule of warrant activity	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Schedule of warrant activity [Abstract]
Number of Shares, Outstanding, balance at beginning \| shares	1,403,610
Weighted Average Exercise Price, Outstanding, balance at beginning \| $ / shares	$ 4.61
Weighted Average Remaining Life, Outstanding, balance at beginning	3 years
Number of Shares, Granted \| shares	142,690
Weighted Average Exercise Price, Granted \| $ / shares	$ 3.7
Weighted Average Remaining Life, Granted	5 years
Number of Shares, Exercised/cancelled \| shares	(1,667)
Weighted Average Exercise Price, Exercised/cancelled \| $ / shares	$ 2.64
Weighted Average Remaining Life, Exercised/cancelled	4 years 2 months 12 days
Number of Shares, Outstanding, balance at ending \| shares	1,544,633
Weighted Average Exercise Price, Outstanding, balance at ending \| $ / shares	$ 4.18
Weighted Average Remaining Life, Outstanding, balance at ending	2 years 10 months 28 days

Stockholder's Equity (Details) - Schedule of grant date fair value of options granted - Minimum [Member]	3 Months Ended
	Mar. 31, 2022
Stockholder's Equity (Details) - Schedule of grant date fair value of options granted [Line Items]
Expected volatility	127.00%
Expected term	5 years
Risk free rate	2.14%
Dividend rate	0.00%

Stockholder's Equity (Details) - Schedule of outstanding stock options	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Schedule of outstanding stock options [Abstract]
Number of Shares, Outstanding at beginning \| shares	8,910,994
Weighted Average Exercise Price, Outstanding at beginning \| $ / shares	$ 4.5
Weighted Average Contractual Term (Yrs.), Outstanding at beginning	7 years 6 months
Aggregate Intrinsic Value, Outstanding at beginning \| $	$ 8,283,639
Number of Shares, Granted \| shares	546,204
Weighted Average Exercise Price, Granted \| $ / shares	$ 2.83
Weighted Average Contractual Term (Yrs.), Granted	10 years
Aggregate Intrinsic Value, Granted \| $
Number of Shares Exercised \| shares	(281,031)
Weighted Average Exercise Price Exercised \| $ / shares	$ 3.28
Weighted Average Contractual Term (Yrs.) Exercised	8 years 9 months 18 days
Aggregate Intrinsic Value Exercised \| $	$ 3,485,482
Number of Shares Forfeited/cancelled \| shares	(25,000)
Weighted Average Exercise Price Forfeited/cancelled \| $ / shares	$ 12.93
Aggregate Intrinsic Value Forfeited/cancelled \| $
Number of Shares, Outstanding at ending \| shares	9,151,167
Weighted Average Exercise Price, Outstanding at ending \| $ / shares	$ 6.34
Weighted Average Contractual Term (Yrs.), Outstanding at ending	6 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding at ending \| $	$ 6,233,571
Number of Shares, Exercisable at ending \| shares	4,676,151
Weighted Average Exercise Price, Exercisable at ending \| $ / shares	$ 5.34
Weighted Average Contractual Term (Yrs.), Exercisable at ending	4 years 3 months 18 days
Aggregate Intrinsic Value, Exercisable at ending \| $	$ 5,271,207

Stockholder's Equity (Details) - Schedule of stock option	3 Months Ended
	Mar. 31, 2022 shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	9,151,167
Weighted Average Contractual Life (Yrs.)	6 years 8 months 12 days
Exercisable	4,676,151
Exercise Price $.03 - $4.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	3,875,463
Weighted Average Contractual Life (Yrs.)	5 years 1 month 6 days
Exercisable	3,041,687
Exercise Price $4.01 - $7.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	151,667
Weighted Average Contractual Life (Yrs.)	4 years 6 months
Exercisable	151,667
Exercise Price $7.01 - $10.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	3,432,802
Weighted Average Contractual Life (Yrs.)	9 years 1 month 6 days
Exercisable	416,131
Exercise Price $10.01 - $15.93 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,691,235
Weighted Average Contractual Life (Yrs.)	5 years 7 months 6 days
Exercisable	1,066,666

Lease Obligation Payable (Details)	3 Months Ended
Lease Obligation Payable (Details)	Mar. 31, 2022 USD ($)
Leases [Abstract]
Lease equipment	$ 163,407
Accumulated amortization	$ 131,261

Commitments and Contingencies (Details)	3 Months Ended
Commitments and Contingencies (Details)	Mar. 31, 2022 USD ($)
Commitments and Contingencies (Details) [Line Items]
Short term lease expense	$ 21,000
Weighted average lease term	1 year 9 months 18 days
Weighted average discount rate	13.55%
Long Beach, New York [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments	$ 2,500
Agreement term	30 days
South Africa [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments	$ 8,000
Lease term	Jun. 30, 2022
MultiPay [Member]
Commitments and Contingencies (Details) [Line Items]
Monthly rental payments	$ 2,900

Commitments and Contingencies (Details) - Schedule of related lease balance	Dec. 31, 2022 USD ($)
Assets:
Current portion of operating lease ROU assets - included in other current assets	$ 46,383
Operating lease ROU assets – included in Other Assets
Total operating lease assets	46,383
Liabilities:
Current portion of ROU liabilities – included in Accounts payable and accrued expenses	38,290
Long-term portion of ROU liabilities – included in Other liabilities
Total operating lease liabilities	$ 38,290

Commitments and Contingencies (Details) - Schedule of maturity of the company's operating lease liabilities	Mar. 31, 2022 USD ($)
Schedule of maturity of the company's operating lease liabilities [Abstract]
2022	$ 39,318
Total operating lease payments	39,318
Less: Imputed interest	(1,028)
Total operating lease liabilities	$ 38,290

Segment Information (Details) $ in Millions	Mar. 31, 2022 USD ($)
North America [Member]
Segment Information (Details) [Line Items]
Long lived assets	$ 6.4
South America [Member]
Segment Information (Details) [Line Items]
Long lived assets	0.1
Africa [Member]
Segment Information (Details) [Line Items]
Long lived assets	$ 0.0

Segment Information (Details) - Schedule of geographic region and reconciliation consolidated revenue, gross profit, and net loss - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net Revenues:
Revenues, net	$ 607,362	$ 588,999
Loss From Operations:
Loss From Operations	(5,266,337)	(2,186,910)
Interest Expense	(33,221)	(297,438)
Other income/(expense)	5,151	1,537
Loss before income taxes	(5,294,407)	(2,482,811)
Income tax expense	(6,321)	(7,188)
Net loss	(5,300,728)	(2,489,999)
Identity Management [Member]
Net Revenues:
Revenues, net	538,210	492,816
Loss From Operations:
Loss From Operations	(4,693,456)	(1,455,222)
Payment Processing [Member]
Net Revenues:
Revenues, net	69,152	96,183
Loss From Operations:
Loss From Operations	(572,881)	(731,688)
North America [Member]
Net Revenues:
Revenues, net	165,052	148,060
Loss From Operations:
Loss From Operations	(4,058,689)	(1,270,403)
South America [Member]
Net Revenues:
Revenues, net	69,152	96,183
Loss From Operations:
Loss From Operations	(572,881)	(731,688)
Africa [Member]
Net Revenues:
Revenues, net	373,158	344,756
Loss From Operations:
Loss From Operations	$ (634,767)	$ (184,819)