0001213900-23-038588 | 10-Q | XBRL Viewer

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Basis of Presentation (Details) - Schedule of calculation of diluted loss per share - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	11,641,187	13,294,541
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	1,229,226	1,544,633
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	7,945,664	9,151,167
Convertible notes payable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares	2,466,297	2,598,741

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Continuing operations, diluted	$ (0.21)	$ (0.22)
Discontinued operations, diluted	$ 0.00	$ (0.01)
Weighted Average Shares Outstanding – Basic and Diluted (in Shares)	25,325,154	23,563,852

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482662/260-10-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-7

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-03(13))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-1

+ Details

Stockholder's Equity (Details) - Schedule of stock option	3 Months Ended
	Mar. 31, 2023 shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	7,945,664
Contractual Life (Yrs.)	3 years 10 months 24 days
Exercisable	5,753,389
Exercise Price $.03 - $4.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	4,568,757
Contractual Life (Yrs.)	5 years 1 month 6 days
Exercisable	3,360,376
Exercise Price $4.01 - $7.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	151,667
Contractual Life (Yrs.)	3 years 1 month 6 days
Exercisable	151,667
Exercise Price $7.01 - $10.00 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,782,262
Contractual Life (Yrs.)	6 years 7 months 6 days
Exercisable	951,705
Exercise Price $10.01 - $15.97 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Outstanding	1,442,978
Contractual Life (Yrs.)	3 years 4 months 24 days
Exercisable	1,289,641

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

3 Months Ended

Mar. 31, 2023

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

Schedule of intangible assets

	Acquired and Developed Software			Patents			Total

Useful Lives		5 Years			10 years

Carrying Value at December 31, 2022	$	435,595		$	130,664		$	566,259
Amortization		(71,904	)		(4,113	)		(76,017	)
Carrying Value at March 31, 2023	$	363,691		$	126,551		$	490,242

	Acquired and Developed Software			Patents			Total

Cost	$	4,476,271		$	164,614		$	4,640,885
Accumulated amortization		(4,112,580	)		(38,063	)		(4,150,643	)
Carrying Value at March 31, 2023	$	363,691		$	126,551		$	490,242

Schedule of future expected amortization of intangible assets

2023 (Remainder of the Year)	$	177,063
2024		168,094
2025		63,791
2026		16,456
2027		16,456
Thereafter		48,382
	$	490,242

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued expenses

	March 31, 2023		December 31, 2022
Trade payables	$	666,691	$	623,130
Accrued severance		325,000		145,837
Other accrued expenses		879,752		385,105
Total	$	1,871,443	$	1,154,072

Other Current Assets and Other Assets (Details) - Schedule of other assets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Schedule of Other Assets [Abstract]
Unamortized working capital facility fees		$ 248,945
Other		1,438
Total other assets		$ 250,383

Accounts Payable and Accrued Expenses (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Accounts Payable and Accrued Expenses [Abstract]
Severance costs	$ 0.8
Severance expenses	0.2
Accounts payable and accrued expenses	0.3
Other accrued liabilities	$ 0.3

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of future expected amortization of intangible assets	Mar. 31, 2023 USD ($)
Schedule of Future Expected Amortization of Intangible Assets [Abstract]
2023	$ 177,063
2024	168,094
2025	63,791
2026	16,456
2027	16,456
Thereafter	48,382
Total	$ 490,242

Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2023

Stockholders' Equity [Abstract]

Schedule of stock option

			Contractual Life
Exercise Price	Outstanding		(Yrs.)		Exercisable
$.03 - $4.00		4,568,757		5.1		3,360,376
$4.01- $7.00		151,667		3.1		151,667
$7.01 - $10.00		1,782,262		6.6		951,705
$10.01 - $15.97		1,442,978		3.4		1,289,641
		7,945,664		3.9		5,753,389

Discontinued Operations and Assets Held for Sale (Details) - Schedule of operations of cards plus and multipay - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Discontinued Operations [Member]
Schedule of operations of cards plus and multipay [Member]
Discontinued Operations Total Revenues, net	$ 14,095	$ 442,310
Operating Expenses:
Cost of sales		183,524
General and administrative	12,268	285,383
Impairment loss		143,703
Depreciation and amortization	3,909	28,202
Total operating expenses	16,177	640,812
Loss from operations	(2,082)	(198,502)
Other Income (Expense):
Other income	224	3,695
Interest expense, net		(364)
Other income, net	224	3,331
Income (Loss) before income taxes	(1,858)	(195,171)
Income tax expense	(397)	(1,349)
Loss from discontinued operations	(2,255)	(196,520)
Cards Plus [Member]
Operating Expenses:
Cost of sales		183,524
General and administrative		155,310
Impairment loss		143,703
Depreciation and amortization		21,230
Total operating expenses		503,767
Loss from operations		(130,609)
Other Income (Expense):
Other income (expense), net		3,348
Interest expense, net		(364)
Total other income, net		2,984
Income (Loss) before income taxes		(127,625)
Income tax expense		4,681
Loss from discontinued operations		(122,944)
Cards Plus
Total Revenues, net		373,158
MultiPay [Member]
Operating Expenses:
General and administrative	12,268	130,073
Depreciation and amortization	3,909	6,972
Total operating expenses	16,177	137,045
Loss from operations	(2,082)	(67,893)
Other Income (Expense):
Other income	224	347
Income (Loss) before income taxes	(1,858)	(67,546)
Income tax expense	(397)	(6,030)
Loss from discontinued operations	(2,255)	(73,576)
Cards Plus
Total Revenues, net	$ 14,095	$ 69,152

Other Current Assets and Other Assets (Details) - Schedule of other current assets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Schedule of Other Current Assets [Abstract]
Prepaid Insurance	$ 100,186	$ 244,215
Prepaid Third Party Services	174,838	135,405
Unamortized credit facility fees		199,156
Other	150,000	150,566
Total other current assets	$ 425,024	$ 729,342

- Definition

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

+ References + Details

Related Party Transactions (Details) - USD ($)					1 Months Ended	3 Months Ended
Related Party Transactions (Details) - USD ($)	Mar. 09, 2023	Mar. 08, 2023	Mar. 06, 2023	Mar. 21, 2022	Mar. 23, 2023	Mar. 31, 2023	Mar. 31, 2022
Related Party Transactions (Details) [Line Items]
Unsecured amount				$ 10,000,000
Shares of common stock (in Shares)				100,000
Amendment amount			$ 3,600,000
Initial advance			$ 900,000
Bonus amount					$ 375,000
Increments amount						$ 1,000,000
Aggregate amount		$ 2,700,000				$ 5,000,000
Share issued (in Shares)						1,115,000
Exercise price per share (in Dollars per share)						$ 0.33
Shares of common stock (in Shares)						1,465,000
Invested in consideration	$ 0.33						$ 3,146,940
Common Stock [Member]
Related Party Transactions (Details) [Line Items]
Shares of common stock (in Shares)							1,063,514
Share issued (in Shares)						1,115,000
Invested in consideration							$ 106
Two Directors [Member]
Related Party Transactions (Details) [Line Items]
Cash invested							$ 1,200,000
Common stock offering						$ 200,000
Progress Partners Inc. [Member]
Related Party Transactions (Details) [Line Items]
Agreed to pay for business activity						$ 75,000
Ms. Pham [Member]
Related Party Transactions (Details) [Line Items]
Exercise price per share (in Dollars per share)						$ 0.397
Convertible Notes Payable Issued [Member]
Related Party Transactions (Details) [Line Items]
Shares issued of convertible notes (in Shares)							20,761
Mr. Daguro [Member]
Related Party Transactions (Details) [Line Items]
Initial annual salary					$ 400,000
Share issued (in Shares)						2,455,000
Shares of common stock (in Shares)						350,000
Mr Szoke [Member]
Related Party Transactions (Details) [Line Items]
Shares of common stock (in Shares)	100,000

Credit Facility (Details) - Schedule of summary of the credit facility balance	3 Months Ended
	Mar. 31, 2023 USD ($)
Schedule of Summary of the Credit Facility Balance [Abstract]
Credit facility initial drawdown due March 31, 2025	$ 900,000
add: Accrued interest	8,250
less: Unamortized debt issuance costs	(449,450)
Total credit facility	$ 458,800

Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2023

Basis of Presentation [Abstract]

Going Concern

Going Concern

As of March 31, 2023, the Company had an accumulated deficit of approximately $145 million. For the three months ended March 31, 2023, the Company earned revenue from continuing operations of approximately $0.04 million, used approximately $2.2 million to fund its operations, and incurred a net loss of approximately $5.3 million.

The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders and noteholders, the ability of the Company to obtain additional debt or 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 acquiring new clients to generate revenues and cash flows.

The Company has secured additional financing of $3.6 million which provides funding for its current operations as it continues to invest in its product, people, and technology. The Company projects that the investments will lead to revenue expansion thereby reducing liquidity needs. However, in order to further implement its business plan and satisfy its working capital requirements, the Company will need to raise additional capital. There is no guarantee that the Company will be able to raise additional equity or debt financing at acceptable terms, if at all.

There is no assurance that the Company will ever be profitable. 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. As there can be no assurance that the Company will be able to achieve positive cash flows (become cash flow profitable) and raise sufficient capital to maintain operations, there is substantial doubt about the Company’s ability to continue as a going concern.

Reclassification

Reclassification

Certain prior year expenses have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the previously reported loss from continuing operations and management does not believe that this reclassification is material to the consolidated financial statements taken as a whole. Specifically, we reclassified certain expenses from general and administrative expenses to research and development expenses.

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 three months ended March 31, 2023 and 2022 because their effect was antidilutive:

Security	2023		2022
Convertible notes payable		2,466,297		2,598,741
Warrants		1,229,226		1,544,633
Stock options		7,945,664		9,151,167
		11,641,187		13,294,541

Revenue Recognition

Revenue Recognition

Starting in the quarter ended June 30, 2022, the Company separately reports Verified software license revenue from Legacy authentication services revenue. Prior periods revenues are recast accordingly for comparison purposes.

Verified Software License – The Company recognizes revenue based on the identified performance obligations over the performance period for fixed consideration and /or variable fees generated that are earned on a usage fee based over time based on monthly user or transaction volumes or on a monthly flat fee rate. We allocate the selling price in a contract which has multiple performance obligations based on the contract selling price that we believe represents a fair market price for the service rendered based on estimated standalone selling price.

The Company had contract liabilities of approximately $74,000 and $81,000 as of March 31, 2023, and December 31, 2022 respectively for certain revenue that will be earned in future periods. All deferred revenue contract liabilities as of March 31, 2023 will be earned over the course of the year 2023.

As of March 31, 2023, and December 31, 2022, the Company did not have any deferred contract costs or fees payable.

Legacy Authentication Services – The Company historically has sold certain legacy software licenses to customers and revenue is recognized when delivery occurs, and all other revenue recognition criteria have been met. During both quarters ended March 31, 2023 and 2022, 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.

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash	$ 1,587,982	$ 3,237,106
Accounts receivable, net	55,391	261,809
Other current assets	425,024	729,342
Current assets held for sale	64,671	118,459
Total current assets	2,133,068	4,346,716
Other Assets		250,383
Intangible Assets, net	490,242	566,259
Goodwill	4,183,232	4,183,232
Non-current assets held for sale	23,685	27,595
Total assets	6,830,227	9,374,185
Current Liabilities:
Accounts payable and accrued expenses	1,871,443	1,154,072
Deferred revenue	73,869	81,318
Current liabilities held for sale	17,795	13,759
Total current liabilities	1,963,107	1,249,149
Non-current Liabilities:
Credit facility, net	458,800
Convertible debt, net	7,983,896	7,841,500
Accrued severance liability	325,000
Total liabilities	10,730,803	9,090,649
Commitments and Contingencies (Note 12)
Stockholders’ (Deficit) Equity:
Common stock, $0.0001 par value, 250,000,000 shares authorized;25,864,437 and 25,319,095 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	2,587	2,532
Additional paid in capital	141,317,627	140,255,234
Accumulated deficit	(145,352,653)	(140,130,159)
Accumulated comprehensive income	131,863	155,929
Total stockholders’ (deficit) equity	(3,900,576)	283,536
Total liabilities and stockholders’ (deficit) equity	$ 6,830,227	$ 9,374,185

Basis of Presentation (Details) - USD ($)	3 Months Ended
Basis of Presentation (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Basis of Presentation [Abstract]
Accumulated deficit	$ 145,000,000
Earned revenue from continuing operations	40,000.00
Loss from continuing operations	2,200,000
Net loss of approximately	5,300,000
Additional financing	3,600,000
Contract liability	$ 74,000	$ 81,000

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,222,494)	$ (5,300,728)
Foreign currency translation (loss) gain	(24,066)	32,740
Comprehensive loss	$ (5,246,560)	$ (5,267,988)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
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-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Current Assets and Other Assets

3 Months Ended

Mar. 31, 2023

Other Current Assets and Other Assets [Abstract]

OTHER CURRENT ASSETS AND OTHER ASSETS

NOTE 2 – OTHER CURRENT ASSETS AND OTHER ASSETS

Other current assets consisted of the following at March 31, 2023 (unaudited) and December 31, 2022:

	March 31, 2023		December 31, 2022

Prepaid Insurance	$	100,186	$	244,215
Prepaid Third Party Services		174,838		135,405
Unamortized credit facility fees		-		199,156
Other		150,000		150,566
	$	425,024	$	729,342

Other assets consisted of the following at March 31, 2023 (unaudited) and December 31, 2022:

	March 31, 2023		December 31, 2022

Unamortized working capital facility fees	$	-	$	248,945
Other		-		1,438
	$	-	$	250,383

Convertible Notes Payable (Details) - USD ($)		3 Months Ended
Convertible Notes Payable (Details) - USD ($)	Mar. 21, 2022	Mar. 31, 2023	Mar. 31, 2022
Convertible Notes Payable (Details) [Line Items]
Principal amount	$ 9,200,000		$ 0
Conversion price per share (in Dollars per share)	$ 3.7
Aggregate cash origination fee	$ 200,000
Shares of our common stock (in Shares)	28,500
Convertible notes interest rate	9.75%
Convertible notes maturity date		Mar. 31, 2025
Shares of common stock (in Shares)	100,000	545,342	0
Common stock warrants (in Shares)		142,690
Fair value		$ 449,000
Common Stock [Member]
Convertible Notes Payable (Details) [Line Items]
Principal amount		$ 223,000

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2023	Apr. 30, 2023
Document Information Line Items
Entity Registrant Name	authID Inc.
Trading Symbol	AUID
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		25,864,437
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, 2023
Document Fiscal Year Focus	2023
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	1385 S. Colorado Blvd
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80222
City Area Code	516
Local Phone Number	274-8700
Title of 12(b) Security	Common Stock par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Discontinued Operations and Assets Held for Sale (Details) - Schedule of cash flow activity related to discontinued operations - Discontinued Operations [Member] - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income loss	$ (2,255)	$ (196,520)
Adjustments to reconcile net income loss with cash flows from operations:
Depreciation and amortization expense	3,909	28,202
Impairment of intangible assets		143,703
Changes in operating assets and liabilities:
Accounts receivable	41,987	(27,464)
Net investment in direct financing lease Leases		28,271
Other current assets	10,562	(351)
Inventory		(227,669)
Accounts payable and accrued expenses	4,036	285,949
Deferred revenue		(4,872)
Adjustments relating to discontinued operations	60,494	225,769
Net cash flows from discontinued operations	$ 58,239	$ 29,249

Stockholder's Equity

3 Months Ended

Mar. 31, 2023

Stockholders' Equity [Abstract]

STOCKHOLDER’S EQUITY

NOTE 8 – STOCKHOLDER’S EQUITY

Common Stock

During the quarter ended March 31, 2023, the Company issued 545,342 shares of common stock for approximately $223,000 of interest accrued under the Convertible Notes. See Note 6 for details.

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’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 a 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.

Warrants

There was no warrant activity for the three months ended March 31, 2023. As of March 31, 2023, there are warrants to acquire 1,229,226 shares for a weighted average exercise price of $4.62 per share with weighted average remaining life of 2.7 years.

Stock Options

During the quarter ended March 31, 2023, the Company granted 3 new directors, Messrs. Jisser, Thompson and Szoke 100,000 options each at the exercise price of $0.33 per share.

The following table summarizes stock option information as of March 31, 2023:

			Contractual Life
Exercise Price	Outstanding		(Yrs.)		Exercisable
$.03 - $4.00		4,568,757		5.1		3,360,376
$4.01- $7.00		151,667		3.1		151,667
$7.01 - $10.00		1,782,262		6.6		951,705
$10.01 - $15.97		1,442,978		3.4		1,289,641
		7,945,664		3.9		5,753,389

During the three months ended March 31, 2023, the Company recognized approximately $0.8 million of stock option based compensation expense. As of March 31, 2023, there was approximately $6.6 million of unrecognized compensation costs related to stock options outstanding that will be expensed through 2026.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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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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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Discontinued Operations and Assets Held for Sale

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Assets Held for Sale [Abstract]

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

NOTE 9 – DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

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

Cards Plus business in South Africa

The financial statements of Cards Plus are classified as a discontinued operation and an asset held for sale, as all required classification criteria under appropriate accounting standards were met as of June 30, 2022.

On August 29, 2022, the Company completed the sale of Cards Plus for a price of $300,000 of which $150,000 was received and the remaining balance of $150,000 recorded in other current asset is expected to be received within one year, less $3,272 in costs to sell, and recognized a loss of $188,247 from the transaction.

MultiPay business in Colombia

The Company is exiting the MultiPay business in Colombia in an orderly fashion, honoring our obligations to employees, customers and under applicable laws and regulations. We maintain our customer support and operations team in Bogota, which performs essential functions to support the global operations of our Verified product.

As of March 31, 2023, all impacted employees had left the Company. MultiPay is leasing out its software to its one major customer and working to finalize the sale of the Company’s proprietary software to this same customer. The transaction is expected to complete by June 30, 2023.

The operations of Cards Plus and MultiPay for the three months ended March 31, 2023 and 2022 on a consolidated basis are below (unaudited):

	Three Months Ended March 31,
Discontinued Operations	2023			2022

Discontinued Operations Total Revenues, net	$	14,095		$	442,310

Operating Expenses:
Cost of sales		-			183,524
General and administrative		12,268			285,383
Impairment loss		-			143,703
Depreciation and amortization		3,909			28,202
Total operating expenses		16,177			640,812

Loss from operations		(2,082	)		(198,502	)

Other Income (Expense):
Other income		224			3,695
Interest expense, net		-			(364	)
Other income, net		224			3,331

Loss before income taxes		(1,858	)		(195,171	)

Income tax expense		(397	)		(1,349	)

Loss from discontinued operations	$	(2,255	)	$	(196,520	)

	Three Months Ended March 31,
	2023		2022
Cards Plus
Total Revenues, net	$	-	$	373,158

Operating Expenses:
Cost of sales		-		183,524
General and administrative		-		155,310
Impairment loss		-		143,703
Depreciation and amortization		-		21,230
Total operating expenses		-		503,767

Loss from operations		-		(130,609	)

Other Income (Expense):
Other income (expense), net		-		3,348
Interest expense, net		-		(364	)
Other income, net		-		2,984

Loss before income taxes		-		(127,625	)

Income tax expense		-		4,681

Loss from discontinued operations	$	-	$	(122,944	)

	Three Months Ended March 31,
	2023			2022
MultiPay
Total Revenues, net	$	14,095		$	69,152

Operating Expenses:
General and administrative		12,268			130,073
Depreciation and amortization		3,909			6,972
Total operating expenses		16,177			137,045

Loss from operations		(2,082	)		(67,893	)

Other Income:
Other income		224			347
Other income		224			347

Loss before income taxes		(1,858	)		(67,546	)

Income tax expense		(397	)		(6,030	)

Loss from discontinued operations	$	(2,255	)	$	(73,576	)

As a result of meeting the discontinued operations/assets held for sale criteria for the MultiPay operations, the assets and liabilities have been reclassified as assets held for sale as of the respective balance sheet date as follows:

	March 31, 2023 (unaudited)		December 31, 2022
Discontinued Operations Current Assets:
Cash	$	3,025	$	2,703
Accounts receivable, net		61,646		105,194
Other current assets		-		10,562
Current assets held for sale		64,671		118,459

Noncurrent Assets:
Property and equipment, net		23,685		27,595
Noncurrent assets held for sale		23,685		27,595

Total assets held for sale	$	88,356	$	146,054

Current Liabilities:
Accounts payable and accrued expenses	$	17,795	$	13,759
Total liabilities held for sale	$	17,795	$	13,759

As a result of meeting the discontinued operations/assets held for sale criteria for Cards Plus and the MultiPay operations, the cash flow activity related to discontinued operations is presented separately on the statement of cash flows as summarized below (unaudited):

	Three Months Ended March 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income loss	$	(2,255	)	$	(196,520	)
Adjustments to reconcile net income loss with cash flows from operations:
Depreciation and amortization expense		3,909			28,202
Impairment of intangible assets		-			143,703
Changes in operating assets and liabilities:
Accounts receivable		41,987			(27,464	)
Net investment in direct financing lease Leases		-			28,271
Other current assets		10,562			(351	)
Inventory		-			(227,669	)
Accounts payable and accrued expenses		4,036			285,949
Deferred revenue		-			(4,872	)
Adjustments relating to discontinued operations		60,494			225,769
Net cash flows from discontinued operations	$	58,239		$	29,249

Notes to Financial Statements – Discontinued Operations

Revenue Recognition

Cards Plus – The Company recognized 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.

MultiPay 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, MultiPay also sells certain equipment from time to time for which revenue is recognized upon delivery to the customer.

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	25,864,437	25,319,095
Common stock, shares outstanding	25,864,437	25,319,095

Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 31, 2023

Accounts Payable and Accrued Expenses [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following as of March 31, 2023 (unaudited) and December 31, 2022:

	March 31, 2023		December 31, 2022
Trade payables	$	666,691	$	623,130
Accrued severance		325,000		145,837
Other accrued expenses		879,752		385,105
Total	$	1,871,443	$	1,154,072

On February 14, 2023, the Company’s Board of Directors resolved to implement a revised budget for 2023 in order to reduce expenses and cash requirements and as part of such revised budget decided to re-balance staffing levels to better align with the evolving needs of the Company (the “Labor Reduction Plan”). Under the Labor Reduction Plan, 12 employees and 6 contractors have left the Company. The Company has also given termination notice to certain vendors and contractors that provide services to the Company. For the quarter ended March 31, 2023, the Company incurred approximately $0.8 million of severance expenses of which $0.2 million was paid; $0.3 million was included in the Accounts payable and accrued expenses and the remaining $0.3 million was accrued for in Other liabilities as a long term liability on the unaudited Condensed Consolidated Balance Sheets.

Related Party Transactions

3 Months Ended

Mar. 31, 2023

RELATED PARTY TRANSACTIONS

NOTE 7 – RELATED PARTY TRANSACTIONS

Convertible Notes Payable

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 6. In connection with the payment of interest on the Convertible Notes, 20,761 shares were issued to two Directors and an affiliate of one of the Directors. The Executive Officer resigned in June 2022 and the two directors resigned during the quarter ended March 31, 2023.

One Convertible Note holder, Mr. Ken Jisser, joined our Board of Directors on March 9, 2023. Mr. Jisser is the Founder and Chief Executive Officer of The Pipeline Group, Inc., a technology-enabled services company that assists the Company with pipeline generation.

Issuance of Common Stock

One Director and two Executive Officers invested $0.2 million in the common stock offering during the quarter ended March 31, 2022. The Director and Officers resigned during the quarter ended March 31, 2023.

Credit Facility

On March 21, 2022 the Company entered into the Original Facility Agreement with an accredited investor Mr. Stephen Garchik, who is both a current shareholder of the Company and a Note Investor, pursuant to which the accredited investor agreed to provide a $10.0 million unsecured standby line of credit facility that will rank behind the Convertible Notes and may be drawn down in several tranches, subject to certain conditions described in the Original Facility Agreement. Pursuant to the Original Facility Agreement, the Company agreed to pay the Garchik the Facility Commitment Fee of 100,000 shares of our common stock upon the effective date of the Original Facility Agreement. Upon request by Mr. Garchik and until the full amount due under the Original Facility Agreement is repaid in full, the Company will provide for the nomination of one designee specified in writing by Garchik for appointment to our board of directors and for subsequent election to our board of directors and to recommend such nominee for election to our board of directors. On April 18, 2022, Joseph Trelin, as Garchik’s designee under the Original Facility Agreement, was appointed as a member of the Board of Directors of the Company. By virtue of such right of nomination Mr. Garchik considers himself a “director by deputization”.

As described in the Credit Facility footnote, Note 5, the Original Facility Agreement was amended and restated effective March 6, 2023 pursuant to which amendment the amount of the facility was reduced to $3.6 million, an initial advance of $900,000 was made and subsequent advances under the A&R Facility Agreement are subject to various conditions including the granting of a security interest over substantially all the Company’s assets. Under the A&R Facility Agreement Garchik had a one-time right for the nomination of four designees specified in writing by Garchik for appointment to our board of directors. On March 9, 2023 Rhoniel Daguro, Ken Jisser, Michael Thompson and Thomas Szoke as Garchik’s designees under the A&R Facility Agreement, were appointed as members of the Board of Directors of the Company.

Executive Officer

Effective March 23, 2023, Mr. Thomas Thimot resigned as the Company’s Chief Executive Officer.

On March 23, 2023, the Company and Rhoniel A. Daguro, a director of the Company, entered an Offer Letter pursuant to which Mr. Daguro agreed to serve as Chief Executive Officer of the Company in consideration of an initial annual salary of $400,000. Mr. Daguro will be eligible for an annual target bonus of up to $375,000 based on performance milestones. For the period ending March 31, 2024, a bonus amount of $75,000 shall be payable upon the Company achieving increments of $1,000,000 in total contract value of all customer agreements less claw backs (“Bookings”) up to an aggregate of $5,000,000 in Bookings. For subsequent years, Mr. Daguro and the Compensation Committee of the Board will mutually agree as to the performance targets to earn for the annual bonus. The Company provided Mr. Daguro with an initial grant of options (“Initial Grant”) to purchase 2,455,000 shares of common stock at the exercise price of 0.397 per share for a period of ten years vesting subject to achievement of performance and service conditions. The exercise price of the Initial Grant is the closing price of the common stock on the Nasdaq Stock Market on the third trading day after the announcement of all pending material non-public information which was determined to be April 10, 2023. Upon the Company being able to grant additional options under a stock incentive plan, it will make an additional grant of options to Mr. Daguro to acquire 1,115,000 shares of common stock for a period of ten years vesting subject to achievement of performance and service conditions (the “Additional Grant”). The exercise price of the options shall be equal to the closing price of the common stock on the Nasdaq Stock Market on the date of such Additional Grant. If and to the extent that the exercise price under the Additional Grant is higher than the exercise price under the Initial Grant, the Company shall determine the incremental cost of the Additional Grant by deducting the exercise price of the Initial Grant from the exercise price of the Additional Grant and multiplying the difference by 1,115,000 (the “Difference”). The Difference shall be payable by the Company to Mr. Daguro as a bonus payable upon exercise of options comprised in the Additional Grant, by way of offset against the exercise price of such options to the extent of the total exercise price of the options being exercised at that time. To the extent that the entire Difference cannot be applied to any particular exercise, the balance shall be carried forward and applied to future exercises of the Additional Grant. In lieu of agreeing to pay the bonus, the Company may in its sole discretion elect to grant Mr. Daguro an additional 350,000 shares of common stock as part of the Additional Grant (for a total of 1,465,000 shares of common stock under the Additional Grant).

Board of Directors

Messrs. Thimot, Phillip L. Kumnick, Philip R. Broenniman, Michael A. Gorriz and Ms. Neepa Patel tendered their resignations from the Board of Directors of the Company on March 9, 2023. The Board of Directors appointed Joseph Trelin to the Company’s Compensation and Audit Committees. On March 9, 2023, the Board of Directors appointed Rhon Daguro, Ken Jisser, Michael Thompson and Thomas Szoke as additional directors of the Company and reduced the size of the Board of Directors from 8 directors to 7 directors. The Company granted Messrs. Jisser, Thompson and Szoke 100,000 options each at the exercise price of $0.33 per share.

On March 16, 2023, the Company appointed Joe Trelin as the Chairman of the Board, Michael Koehneman as Chairman of the Governance Committee and appointed Michael Thompson to the Company’s Compensation and Governance Committees.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 5
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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-Subparagraph (e)
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-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

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-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Discontinued Operations and Assets Held for Sale (Details)	Aug. 29, 2022 USD ($)
Discontinued Operations and Assets Held for Sale [Abstract]
Sale of card plus	$ 300,000
Card plus amount received	150,000
Other current asset	150,000
Cost of sale	3,272
Loss	$ 188,247

Credit Facility (Details) - USD ($)			1 Months Ended	3 Months Ended
Credit Facility (Details) - USD ($)	Mar. 09, 2023	Mar. 08, 2023	Mar. 21, 2022	Mar. 31, 2023	Mar. 31, 2022
Credit Facility (Details) [Line Items]
Credit facility amount	$ 900,000		$ 10,000,000
Shares of common stock (in Shares)			100,000	545,342	0
Initial credit facility		$ 900,000
Aggregate amount		$ 2,700,000		$ 5,000,000
Issuance costs				410,000
Capitalized issuance costs				426,000
Unamortized deferred issuance cost				$ 449,000
Interest accrues per annum rate percentage			12.00%	15.00%
Principal amounts Maturity Date				Mar. 31, 2025
Secured facility amount				$ 2,700,000
A&R Facility Agreement [Member]
Credit Facility (Details) [Line Items]
Interest accrues per annum rate percentage				12.00%

Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balance at Dec. 31, 2021	$ 2,329	$ 126,581,702	$ (115,899,939)	$ 211,486	$ 10,895,578
Balance (in Shares) at Dec. 31, 2021	23,294,024
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
Stock-based compensation		1,866,989			1,866,989
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
Cashless warrant exercise (in Shares)	1,377
Net loss			(5,300,728)		(5,300,728)
Foreign currency translation				32,740	32,740
Balance at Mar. 31, 2022	$ 2,467	132,439,724	(121,200,667)	244,226	11,485,750
Balance (in Shares) at Mar. 31, 2022	24,672,522
Balance at Dec. 31, 2022	$ 2,532	140,255,234	(140,130,159)	155,929	283,536
Balance (in Shares) at Dec. 31, 2022	25,319,095
Stock-based compensation		840,021			840,021
Shares issued in lieu of interest	$ 55	222,372			222,427
Shares issued in lieu of interest (in Shares)	545,342
Net loss			(5,222,494)		(5,222,494)
Foreign currency translation				(24,066)	(24,066)
Balance at Mar. 31, 2023	$ 2,587	$ 141,317,627	$ (145,352,653)	$ 131,863	$ (3,900,576)
Balance (in Shares) at Mar. 31, 2023	25,864,437

Convertible Notes Payable (Details) - Schedule of the convertible notes payable outstanding (Parentheticals)	3 Months Ended
	Mar. 31, 2023
Schedule of the convertible notes payable outstanding [Abstract]
Convertible notes	9.75%

Convertible Notes Payable

3 Months Ended

Mar. 31, 2023

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 6 – 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 the three months ended March 31, 2023 and 2022, the Company issued 545,342 and 0 shares of common stock for approximately $223,000 and $0, respectively of interest related to the Convertible Notes.

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 following is a summary of the convertible notes payable outstanding as of March 31, 2023 (unaudited):

9.75% convertible notes due March 31, 2025	$	9,125,205

less:
Unamortized debt discount expense		(180,865	)
Unamortized debt issuance expense		(960,444	)
	$	7,983,896

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Discontinued Operations and Assets Held for Sale (Tables)

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Assets Held for Sale [Abstract]

Schedule of operations of cards plus and multipay

	Three Months Ended March 31,
Discontinued Operations	2023			2022

Discontinued Operations Total Revenues, net	$	14,095		$	442,310

Operating Expenses:
Cost of sales		-			183,524
General and administrative		12,268			285,383
Impairment loss		-			143,703
Depreciation and amortization		3,909			28,202
Total operating expenses		16,177			640,812

Loss from operations		(2,082	)		(198,502	)

Other Income (Expense):
Other income		224			3,695
Interest expense, net		-			(364	)
Other income, net		224			3,331

Loss before income taxes		(1,858	)		(195,171	)

Income tax expense		(397	)		(1,349	)

Loss from discontinued operations	$	(2,255	)	$	(196,520	)

	Three Months Ended March 31,
	2023		2022
Cards Plus
Total Revenues, net	$	-	$	373,158

Operating Expenses:
Cost of sales		-		183,524
General and administrative		-		155,310
Impairment loss		-		143,703
Depreciation and amortization		-		21,230
Total operating expenses		-		503,767

Loss from operations		-		(130,609	)

Other Income (Expense):
Other income (expense), net		-		3,348
Interest expense, net		-		(364	)
Other income, net		-		2,984

Loss before income taxes		-		(127,625	)

Income tax expense		-		4,681

Loss from discontinued operations	$	-	$	(122,944	)

	Three Months Ended March 31,
	2023			2022
MultiPay
Total Revenues, net	$	14,095		$	69,152

Operating Expenses:
General and administrative		12,268			130,073
Depreciation and amortization		3,909			6,972
Total operating expenses		16,177			137,045

Loss from operations		(2,082	)		(67,893	)

Other Income:
Other income		224			347
Other income		224			347

Loss before income taxes		(1,858	)		(67,546	)

Income tax expense		(397	)		(6,030	)

Loss from discontinued operations	$	(2,255	)	$	(73,576	)

Schedule of operations assets and liabilities have been reclassified

	March 31, 2023 (unaudited)		December 31, 2022
Discontinued Operations Current Assets:
Cash	$	3,025	$	2,703
Accounts receivable, net		61,646		105,194
Other current assets		-		10,562
Current assets held for sale		64,671		118,459

Noncurrent Assets:
Property and equipment, net		23,685		27,595
Noncurrent assets held for sale		23,685		27,595

Total assets held for sale	$	88,356	$	146,054

Current Liabilities:
Accounts payable and accrued expenses	$	17,795	$	13,759
Total liabilities held for sale	$	17,795	$	13,759

Schedule of cash flow activity related to discontinued operations

	Three Months Ended March 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income loss	$	(2,255	)	$	(196,520	)
Adjustments to reconcile net income loss with cash flows from operations:
Depreciation and amortization expense		3,909			28,202
Impairment of intangible assets		-			143,703
Changes in operating assets and liabilities:
Accounts receivable		41,987			(27,464	)
Net investment in direct financing lease Leases		-			28,271
Other current assets		10,562			(351	)
Inventory		-			(227,669	)
Accounts payable and accrued expenses		4,036			285,949
Deferred revenue		-			(4,872	)
Adjustments relating to discontinued operations		60,494			225,769
Net cash flows from discontinued operations	$	58,239		$	29,249

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
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+ Details

Commitments and Contingencies (Details) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jul. 31, 2022	Mar. 31, 2022	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Office rent monthly cost				$ 2,500
Monthly lease cost	$ 1,500
General and administrative expense		$ 21,000	$ 5,000

Convertible Notes Payable (Details) - Schedule of the convertible notes payable outstanding	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
Unamortized debt discount expense	$ (180,865)
Unamortized debt issuance expense	(960,444)
Total	7,983,896
9.75% convertible notes due March 31, 2025 [Member]
Debt Instrument [Line Items]
9.75% convertible notes due March 31, 2025	$ 9,125,205

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Verified software license	$ 35,778	$ 35,493
Legacy authentication services	2,078	129,559
Total revenues, net	37,856	165,052
Operating Expenses:
General and administrative	3,276,191	3,643,909
Research and development	1,105,814	1,373,502
Depreciation and amortization	76,017	215,476
Total operating expenses	4,458,022	5,232,887
Loss from continuing operations	(4,420,166)	(5,067,835)
Other (Expense) Income
Interest expense including debts issuance costs amortization	(800,073)	(32,857)
Other income		1,456
Other expense, net	(800,073)	(31,401)
Loss from continuing operations before income taxes	(5,220,239)	(5,099,236)
Income tax expense		(4,972)
Loss from continuing operations	(5,220,239)	(5,104,208)
Loss from discontinued operations	(2,255)	(196,520)
Net loss	$ (5,222,494)	$ (5,300,728)
Net Loss Per Share - Basic and Diluted
Continuing operations (in Dollars per share)	$ (0.21)	$ (0.22)
Discontinued operations (in Dollars per share)	$ 0	$ (0.01)
Weighted Average Shares Outstanding - Basic and Diluted (in Shares)	25,325,154	23,563,852

Credit Facility (Tables)

3 Months Ended

Mar. 31, 2023

Credit Facility [Abstract]

Schedule of summary of the credit facility balance

Credit facility initial drawdown due March 31, 2025	$	900,000
add: Accrued interest		8,250
less: Unamortized debt issuance costs		(449,450	)
	$	458,800

Intangible Assets, Net (Other than Goodwill)

3 Months Ended

Mar. 31, 2023

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

INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

NOTE 3 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)

The Company’s intangible assets primarily consist of acquired and developed software that is being 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, 2023 (unaudited):

	Acquired and Developed Software			Patents			Total

Useful Lives		5 Years			10 years

Carrying Value at December 31, 2022	$	435,595		$	130,664		$	566,259
Amortization		(71,904	)		(4,113	)		(76,017	)
Carrying Value at March 31, 2023	$	363,691		$	126,551		$	490,242

The following is a summary of intangible assets as of March 31, 2023 (unaudited):

	Acquired and Developed Software			Patents			Total

Cost	$	4,476,271		$	164,614		$	4,640,885
Accumulated amortization		(4,112,580	)		(38,063	)		(4,150,643	)
Carrying Value at March 31, 2023	$	363,691		$	126,551		$	490,242

Amortization expense totaled approximately $76,000 and $215,000 for the three months ended March 31, 2023, and 2022, respectively.

Future expected amortization of intangible assets is as follows:

2023 (Remainder of the Year)	$	177,063
2024		168,094
2025		63,791
2026		16,456
2027		16,456
Thereafter		48,382
	$	490,242

There is no impairment indicator identified for impairment of the Company’s intangible assets and goodwill as of March 31, 2023.

Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2023

Basis of Presentation [Abstract]

Schedule of calculation of diluted loss per share

Security	2023		2022
Convertible notes payable		2,466,297		2,598,741
Warrants		1,229,226		1,544,633
Stock options		7,945,664		9,151,167
		11,641,187		13,294,541

Credit Facility

3 Months Ended

Mar. 31, 2023

Credit Facility [Abstract]

CREDIT FACILTIY

NOTE 5 – CREDIT FACILTIY

On March 21, 2022, the Company entered into a Credit Facility Agreement (the “Original Facility Agreement”) with Stephen J. Garchik (“Garchik”), who is a shareholder of the Company, pursuant to which Garchik agreed to provide to the Company a $10.0 million unsecured standby line of credit facility that could be drawn down in several tranches, subject to certain conditions described in the Original Facility Agreement. Pursuant to the Original Facility Agreement, the Company paid Garchik a Facility Commitment Fee of 100,000 shares of our common stock upon the effective date of the Original Facility Agreement.

On March 8, 2023, the Company entered into an Amended and Restated Facility Agreement (“A&R Facility Agreement”) with Garchik, pursuant to which the Company and Garchik amended and restated the Original Facility Agreement in its entirety, to replace the credit facility contemplated by the Original Facility Agreement with (i) an initial credit facility to the Company in an amount of $900,000 and (ii) the parties to use their reasonable best efforts after the Initial Funding to negotiate the terms of a subsequent credit facility in the aggregate amount of $2,700,000 (the “Subsequent Funding”).

On March 9, 2023, pursuant to the A&R Facility Agreement, the Company entered into a promissory note (the “Initial Promissory Note”) in favor of Garchik, pursuant to which Garchik loaned the amount of $900,000 (the “Principal Amount”) to the Company.

The Company wrote-off approximately $410,000 of the issuance costs related to the Original Credit Facility and capitalized $426,000 issuance costs related to the A&R Facility Agreement. As of March 31, 2023, the unamortized deferred issuance cost is approximately $449,000 which has been recorded as a reduction in the carrying value of the Credit Facility, net on the unaudited Condensed Consolidated Balance Sheets. The deferred issuance costs balance will be amortized from March 9, 2023 to March 31, 2025.

Initial Promissory Note

Interest accrues on the Principal Amount until paid in full at a per annum rate equal to 15%, computed on the basis of a 360-day year and twelve 30-day months, payable in arrears or in kind on March 31, June 30, September 30 and December 31 of each year commencing March 31, 2023 or the first business day following each such date if any such date falls on a day which is not a business day, in cash. The Principal Amount shall mature on March 31, 2025.

While the Initial Promissory Note is unsecured, in the event of either (I) the conversion of all amounts outstanding under the Convertible Notes (as defined in Note 6 below) and the release of all liens over the Company’s assets granted by and through the Transaction Documents (as defined in the Convertible Notes) or (II) receipt of the consent of the requisite holders of the Convertible Notes, in each case, the Company will, as collateral security for the due and punctual payment and performance of all obligations under the Initial Promissory Note, pledge and assign to Garchik a first-priority, continuing security interest in substantially all of the assets of the Company, subject to exclusions consistent with those contained in the Transaction Documents. The Company has agreed to use its reasonable best efforts to deliver to Garchik an amendment to the Securities Purchase Agreement, dated as of March 21, 2022, pursuant to which the Convertible Notes were purchased, permitting the grant of that collateral security to Garchik. Upon the grant of that collateral security, interest will accrue on the outstanding Principal Amount under the Initial Promissory Note at a per annum rate equal to 12% paid in kind, capitalized and added to the balance of the loan on a quarterly basis, calculated on a 360-day year basis, on the outstanding aggregate balance.

The Initial Promissory Note includes customary Events of Default, including, among other things, failing to make payment of any of the Principal Amount or interest due and such failure continues for not less than 5 business days without being cured. Upon an Event of Default, Garchik can declare all outstanding amounts under the Initial Promissory Note due, along with any accrued interest.

A&R Facility Agreement

Under the A&R Facility Agreement, Garchik agreed to provide initial funding of the Principal Amount to the Company upon receipt of a fully executed Initial Promissory Note and an executed Release Agreement relating to the Original Facility Agreement. The Company and Garchik agreed to use reasonable best efforts to negotiate the terms of the Subsequent Funding and negotiations continue, but the A&R Facility Agreement will terminate if definitive documentation for the Subsequent Funding is not entered into before July 1, 2023, for any reason other than breach of a party’s obligations.

The Subsequent Funding would be a $2,700,000 secured note facility with a 12% per annum interest rate, paid in kind, capitalized and added to the balance of the loan on a quarterly basis, calculated on a 360-day year basis, on the outstanding aggregate balance of the Subsequent Facility. The Subsequent Facility will mature twenty-four (24) months after effectiveness. Garchik will be granted a fully perfected, non-avoidable, first-priority security interest and lien on all assets of the Company. The Subsequent Facility would be the senior obligation of the Company and will rank senior in right to payment of the obligations under the existing Convertible Notes and the liens granted in connection with the Subsequent Facility shall rank pari passu with the liens granted to holders of the Convertible Notes. Pursuant to the A&R Facility Agreement, the Company will use reasonable best efforts to obtain the consent of two-thirds of the holders of Convertible Notes.

Guaranty

In connection with the Company and Garchik entering into the Initial Promissory Note, each of the principal United States based subsidiaries of the Company agreed to, for the benefit and security of Garchik, guarantee the payment and performance all of the Company’s obligations under the Initial Promissory Note and the Guaranty.

Release Agreement

In connection with the A&R Facility Agreement, on March 9, 2023, the Company and Garchik entered into the Release Agreement, pursuant to which the Company and Garchik mutually agreed to release any and all rights to make a claim against the other and any existing claims against the other arising out of or relating to the Original Facility Agreement.

The following is a summary of the Credit facility balance, net as of March 31, 2023 (unaudited):

Credit facility initial drawdown due March 31, 2025	$	900,000
add: Accrued interest		8,250
less: Unamortized debt issuance costs		(449,450	)
	$	458,800

Intangible Assets, Net (Other than Goodwill) (Details) - Schedule of intangible assets	3 Months Ended
	Mar. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Carrying Value at Beginning	$ 566,259
Amortization	(76,017)
Carrying Value at Ending	490,242
Cost	4,640,885
Accumulated amortization	$ (4,150,643)
Acquired and Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	5 years
Carrying Value at Beginning	$ 435,595
Amortization	(71,904)
Carrying Value at Ending	363,691
Cost	4,476,271
Accumulated amortization	$ (4,112,580)
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Lives	10 years
Carrying Value at Beginning	$ 130,664
Amortization	(4,113)
Carrying Value at Ending	126,551
Cost	164,614
Accumulated amortization	$ (38,063)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,222,494)	$ (5,300,728)
Adjustments to reconcile net loss with cash flows from operations:
Depreciation and amortization expense	76,017	215,476
Stock-based compensation expense	840,021	1,866,989
Shares issued in lieu of interest expense	222,427
Other non-cash interest expense	8,250
Amortization of debt discounts and issuance costs	567,287	12,657
Non-cash recruiting fees	492,000
Changes in operating assets and liabilities:
Accounts receivable	206,419	(27,076)
Other current and long-term assets	106,600	152,128
Inventory		(34,104)
Accounts payable and accrued expenses	155,371	(373,372)
Deferred revenue	(7,449)	160,537
Other accrued liabilities	325,000
Discontinued operations	60,494	225,769
Net cash flows from operating activities	(2,170,057)	(3,101,724)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets - discontinued operations		(450)
Net cash flows from investing activities		(450)
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit facility drawdown, net of issuance costs	543,760
Proceeds from sale of common stock, net of offering costs		3,146,940
Proceeds from issuance of convertible note payable, net of issuance costs		7,992,841
Cash paid for working capital facility		(300,000)
Payments on notes payable - discontinued operations		(1,579)
Principal payments on capital lease obligation - discontinued operations		(10,562)
Net cash flows from financing activities	543,760	10,827,640
Effect of Foreign Currencies	(22,505)	32,323
Net Change in Cash	(1,648,802)	7,757,789
Cash, Beginning of the Period	3,237,106	5,767,276
Add: Cash, Beginning of the Period- Discontinued Operations	2,703	270,707
Less: Cash, End of the Period - Discontinued Operations	(3,025)	(337,660)
Cash, End of the Period	1,587,982	13,458,112
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest		7,188
Cash paid for interest - discontinued operations		4,388
Cash paid for income taxes		11,739
Cash paid for income taxes - discontinued operations	1,294	1,149
Schedule of Non-cash Investing and Financing Activities:
Cashless option and warrant exercises		19
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

Intangible Assets, Net (Other than Goodwill) (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022
Intangible Assets, Net (Other than Goodwill) [Abstract]
Amortization expense	$ 76,000	$ 215,000

Other Current Assets and Other Assets (Tables)

3 Months Ended

Mar. 31, 2023

Other Current Assets and Other Assets [Abstract]

Schedule of other current assets

	March 31, 2023		December 31, 2022

Prepaid Insurance	$	100,186	$	244,215
Prepaid Third Party Services		174,838		135,405
Unamortized credit facility fees		-		199,156
Other		150,000		150,566
	$	425,024	$	729,342

Schedule of other assets

	March 31, 2023		December 31, 2022

Unamortized working capital facility fees	$	-	$	248,945
Other		-		1,438
	$	-	$	250,383

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Basis of Presentation [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, 2022. The results of operations for the three months ended March 31, 2023 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 authID Inc. and its wholly-owned subsidiaries MultiPay S.A.S., ID Solutions, Inc., FIN Holdings Inc., Ipsidy Enterprises Limited and Cards Plus Pty Ltd. and authID Gaming Inc. (collectively the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

Going Concern

Reclassification

Net Loss per Common Share

Security	2023		2022
Convertible notes payable		2,466,297		2,598,741
Warrants		1,229,226		1,544,633
Stock options		7,945,664		9,151,167
		11,641,187		13,294,541

Revenue Recognition

As of March 31, 2023, and December 31, 2022, the Company did not have any deferred contract costs or fees payable.

Recent Accounting Pronouncement - In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which replaces the current incurred loss impairment methodology for most financial assets with the current expected credit loss, or CECL, methodology. The series of new guidance amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company adopted the new standard effective January 1, 2023, which did not have a material impact to the financial statements.

Discontinued Operations and Assets Held for Sale (Details) - Schedule of operations assets and liabilities have been reclassified - Discontinued Operations [Member] - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Discontinued Operations Current Assets:
Cash	$ 3,025	$ 2,703
Accounts receivable, net	61,646	105,194
Other current assets		10,562
Current assets held for sale	64,671	118,459
Noncurrent Assets:
Property and equipment, net	23,685	27,595
Noncurrent assets held for sale	23,685	27,595
Total assets held for sale	88,356	146,054
Current Liabilities:
Accounts payable and accrued expenses	17,795	13,759
Total liabilities held for sale	$ 17,795	$ 13,759

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 10 – 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

The Company rented office space in Long Beach, New York at a monthly cost of $2,500 in 2022. The agreement was month to month and could be terminated on 30 days notice. The lease agreement was terminated in July 2022. The agreement was between the Company and Bridgeworks LLC, an entity principally owned by Mr. Beck, the Company’s former CEO and Director and his family.

In July 2022, the Company signed a new lease agreement for one year and moved its headquarters to Denver, Colorado. The office monthly lease cost is approximately $1,500 per month.

Rent expense included in general and administrative expense on the Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 was approximately $5,000 and $21,000, respectively.

Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable and accrued expenses - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Schedule of accounts payable and accrued expenses [Abstract]
Trade payables	$ 666,691	$ 623,130
Accrued severance	325,000	145,837
Other accrued expenses	879,752	385,105
Total	$ 1,871,443	$ 1,154,072

Convertible Notes Payable (Tables)

3 Months Ended

Mar. 31, 2023

Convertible Notes Payable [Abstract]

Schedule of the convertible notes payable outstanding

9.75% convertible notes due March 31, 2025	$	9,125,205

less:
Unamortized debt discount expense		(180,865	)
Unamortized debt issuance expense		(960,444	)
	$	7,983,896

- 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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+ Details

Stockholder's Equity (Details)	1 Months Ended			3 Months Ended
Stockholder's Equity (Details)	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 21, 2022 USD ($) $ / shares shares	Mar. 18, 2022 USD ($) $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares
Stockholder's Equity (Details) [Line Items]
Interest accrued \| $				$ 223,000
Common stock shares \| shares		1,063,514	1,063,514
Common stock price per share \| $ / shares		$ 3.7	$ 3.03
Gross proceeds \| $		$ 3,300,000	$ 3,300,000
Warrants \| $	$ 1,229,226
Per share price \| $ / shares	$ 4.62
Weighted average remaining life	2 years 8 months 12 days
Number of directors	3
Stock options \| shares	100,000			100,000
Exercise price per share \| $ / shares	$ 0.33			$ 0.33
Stock option based compensation expense \| $				$ 800,000
Unrecognized compensation costs \| $	$ 6,600,000			$ 6,600,000
Common Stock [Member]
Stockholder's Equity (Details) [Line Items]
Shares issued \| shares				545,342
Common stock shares \| shares	186,488			186,488
Note Investors [Member]
Stockholder's Equity (Details) [Line Items]
Common stock shares \| shares	28,500			28,500