General form of registration statement for all companies including face-amount certificate companies

NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.22.2.2
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Schedule of Reclassifications
               
    Before Reclassification         After Reclassification  
    For the         For the  
    Three Months Ended         Three Months Ended  
    September 30,         September 30,  
    2021         2021  
                 
REVENUES:           REVENUES:        
Technology systems   $ 1,153,150     Technology systems   $ 1,153,150  
Services and consulting     587,307     Services and consulting     587,307  
                     
Total Revenue     1,740,457     Total Revenue     1,740,457  
                     
COST OF REVENUES:           COST OF REVENUES:        
Technology systems     1,869,812     Technology systems     1,363,127  
Services and consulting     277,054     Services and consulting     305,669  
Overhead     657,907     —     —  
                     
Total Cost of Revenues     2,804,773     Total Cost of Revenues     1,668,796  
                     
GROSS MARGIN     (1,064,316 )   GROSS MARGIN     71,661  
                     
OPERATING EXPENSES:           OPERATING EXPENSES:        
Sales and marketing     361,820     Sales and marketing     361,820  
Research and development     57,000     Research and development     332,469  
General and administration     963,357     General and administration     1,823,865  
                     
Total Operating Expenses     1,382,177      Total Operating Expenses     2,518,154  
                     
LOSS FROM OPERATIONS   $ (2,446,493 )   LOSS FROM OPERATIONS   $ (2,446,493 )

 

The Company reclassified certain expenses for the nine months ended September 30, 2021 to conform to the 2022 classification. There was no net effect on the total expenses of such reclassification.

 

The following tables reflect the reclassification adjustment effect in the nine months ended September 30, 2021:

 

    Before Reclassification         After Reclassification  
    For the         For the  
    Nine Months Ended         Nine Months Ended  
    September 30,         September 30,  
    2021         2021  
                 
REVENUES:           REVENUES:        
Technology systems   $ 2,743,849     Technology systems   $ 2,743,849  
Services and consulting     1,800,030     Services and consulting     1,800,030  
                     
Total Revenue     4,543,879     Total Revenue     4,543,879  
                     
COST OF REVENUES:           COST OF REVENUES:        
Technology systems     4,979,667     Technology systems     3,162,866  
Services and consulting     986,757     Services and consulting     1,076,140  
Overhead     1,754,731     —     —  
                     
Total Cost of Revenues     7,721,155     Total Cost of Revenues     4,239,006  
                     
GROSS MARGIN     (3,177,276 )   GROSS MARGIN     304,873  
                     
OPERATING EXPENSES:           OPERATING EXPENSES:        
Sales and marketing     1,024,872     Sales and marketing     1,024,872  
Research and development     197,164     Research and development     1,163,341  
General and administration     2,817,949     General and administration     5,333,921  
                     
Total Operating Expenses     4,039,985      Total Operating Expenses     7,522,134  
                     
LOSS FROM OPERATIONS   $ (7,217,261 )   LOSS FROM OPERATIONS   $ (7,217,261 )
                   
      Before Reclassification           After Reclassification  
      For the Year Ended           For the Year Ended  
      December 31,           December 31,  
      2020           2020  
REVENUES:           REVENUES:        
Technology systems   $ 4,956,130     Technology systems   $ 5,964,801  
Technical support     1,801,043     Services and consulting     2,074,647  
Consulting services     273,604     —     —  
AI technologies     1,008,671     —     —  
                     
Total Revenue     8,039,448     Total Revenue     8,039,448  
                     
COST OF REVENUES:           COST OF REVENUES:        
Technology systems     3,665,493     Technology systems     5,642,880  
Technical support     1,109,741     Services and consulting     1,139,357  
Consulting services     117,004     Overhead     1,021,375  
AI technologies     360,817     —     —  
                     
Total Cost of Revenues     5,253,055     Total Cost of Revenues     7,803,612  
                     
GROSS MARGIN     2,786,393     GROSS MARGIN     235,836  
                     
OPERATING EXPENSES:           OPERATING EXPENSES:        
Sales and marketing     717,809     Sales and marketing     717,809  
Engineering     1,358,925     Research and development     102,219  
Research and development     1,022,188     Administration     6,050,236  
Administration     5,011,913     —     —  
AI technologies     1,309,986     —     —  
                     
Total Operating Expenses     9,420,821      Total Operating Expenses     6,870,264  
                     
LOSS FROM OPERATIONS   $ (6,634,428 )   LOSS FROM OPERATIONS   $ (6,634,428 )