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NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS On December 23, 2021, AppTech Payments Corp. (“AppTech” or the “Company”) changed our name to AppTech Payments Corp from AppTech Corp. and re-domiciled to Delaware. We are headquartered in Carlsbad, CA and our stock trades under the symbol “APCX” and our warrants under the symbol “APCXW”. The Company successfully completed its capital raise and uplisting onto NASDAQ (herein referred to its “Offering”) on January 7, 2022. As part of the Offering, the Company executed a 9.5 to 1 reverse split of its common stock. In addition, the Offering sold 3,614,201 units of our common stock (a unit consisted of one share of common stock and a warrant to purchase one share of common stock) at $4.15 per unit. In addition, 542,168 warrants were granted by EF Hutton with a 5 five-year expiration and an exercise price of $5.19. The Offering provided net proceeds of approximately $13.4 million. The Company’s current cash position is significant enough to support the daily operations for a period in excess of one year from the date of filing this 10-Q. All shares and share prices within this 10-Q have been adjusted to reflect the stock split. AppTech Payments Corp. is a FinTech company providing electronic payment processing technologies and merchant services. These technologies allow businesses to accept cashless and/or contactless payments, such as credit cards, ACH, wireless payments, and more. Their patented, exclusively licensed and/or proprietary merchant services software offers or will offer integrated solutions for frictionless digital and mobile payment acceptance; AppTech is supplementing these capabilities with software that solves for multi-use case, multi-channel, API-driven, account-based issuer processing for card, digital tokens, and payment transfer transactions.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the accompanying financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended March 31, 2022 and March 31, 2021. Although management believes that the disclosures in these unaudited financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. The accompanying unaudited financial statements should be read in conjunction with the Company’s financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 31, 2022. The interim results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ended December 31, 2022 or for any future interim periods. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates. Concentration of Credit Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250 thousand per institution that pays Federal Deposit Insurance Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances. The accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses six financial institutions to service their merchants for which represented <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zZJM5DfWqTj2" title="Concentration of Credit Risk">100% of accounts receivable as of March 31, 2022. The loss of one of these financial institutions would not have a significant impact on the Company’s operations as there are additional financial institutions available to the Company. For the three months ended March 31, 2022 and 2021, the one merchant (customer) represented approximately 8.2% and 36% of the total revenues, respectively. The loss of this customer would have significant impact on the Company’s operations. Software Development Costs The Company capitalizes software development costs in developing internal use software when capitalizing requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred. Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) to measure and disclose the fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The three levels of fair value hierarchy defined by ASC 820 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term maturity of these financial instruments. Transactions involving related parties cannot be presumed to be carried out on an arms-length basis, as the requisite conditions of competitive, free-marketing dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. The following table presents liabilities that are measured and recognized at fair value as of March 31, 2022 and December 31, 2021 on recurring basis (in thousands): <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_pn3n3_zPEPcT4KqV72" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative liabilities (Details)"> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; text-align: center; text-indent: 0pt">Schedule of derivative liabilities</td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td></tr> </table> See Note 6 for discussion of valuation and roll forward related to derivative liabilities. Research and Development In accordance with ASC 730, Research and Development (“R&D”) costs are expensed when incurred. R&D costs include costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of the SMS short code texting platform, contract and other outside services. Total R&D costs for the three months ended March 31, 2022 and 2021 were $2.1 million and $0, respectively. Per Share Information Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include stock options, warrants granted, convertible debt and convertible preferred stock. The number of common stock equivalents not included in diluted income per share was 6,006,350 and 1,733,159 for the three months ended March 31, 2022 and 2021, respectively. The weighted average number of common stock equivalents is not included in diluted income (loss) per share, because the effects are anti-dilutive. <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zDQbt9JAQRRe" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Anti dilutive shares (Details)"> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; display: none; text-align: center; text-indent: -10pt"> Schedule of anti dilutive stock</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">Series A preferred stock</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zYoxf5zOyCi6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zdLEnsVmCEU6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Convertible debt</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zzD3u1nl292k" style="text-align: right" title="Anti-dilutive shares">175,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zgEMdLSIubqc" style="text-align: right" title="Anti-dilutive shares">645,432</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zhQWhm8nE4sj" style="text-align: right" title="Anti-dilutive shares">4,275,464</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zslzx5wVqO8f" style="text-align: right" title="Anti-dilutive shares">21,052</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zhlg7GScfhTe" style="text-align: right" title="Anti-dilutive shares">999,132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zT9ZMrKTqlx9" style="text-align: right" title="Anti-dilutive shares">706,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Restricted stock units</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zmXMPTbj73yl" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">554,973</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_znRaOsiGPIA4" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">359,526</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331_zNdqksGBLvfg" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">6,006,350</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_z6wJyBoJmyz8" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">1,733,159</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Derivative Liability The Company issued debts that consist of the issuance of convertible notes with variable conversion provisions. In addition, the Company issued warrants with variable anti-dilution provisions. The conversion terms of the convertible notes and warrants are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities on the issuance date and at each reporting period. New Accounting Pronouncements The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company. Risks and Uncertainties On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020, declared it to be a pandemic. Since the Company derives its revenues from processing of purchases from our merchant services clients, a downturn in economic activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases it processes, and thus its revenues. In addition, such a downturn could cause its merchant customers to cease operations permanently decreasing our payment processing unless new customers are found. The continuing effects of the potential impact cannot be estimated at this time.

Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the accompanying financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended March 31, 2022 and March 31, 2021. Although management believes that the disclosures in these unaudited financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in financial statements that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. The accompanying unaudited financial statements should be read in conjunction with the Company’s financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 31, 2022. The interim results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ended December 31, 2022 or for any future interim periods.

Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated liabilities related to various vendors in which communications have ceased, contingent liabilities, and realization of tax deferred tax assets. Actual results could differ from those estimates.

Concentration of Credit Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250 thousand per institution that pays Federal Deposit Insurance Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances. The accounts receivable from merchant services are paid by the financial institutions on a monthly basis. The Company currently uses six financial institutions to service their merchants for which represented <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_dp_c20220101__20220331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zZJM5DfWqTj2" title="Concentration of Credit Risk">100% of accounts receivable as of March 31, 2022. The loss of one of these financial institutions would not have a significant impact on the Company’s operations as there are additional financial institutions available to the Company. For the three months ended March 31, 2022 and 2021, the one merchant (customer) represented approximately 8.2% and 36% of the total revenues, respectively. The loss of this customer would have significant impact on the Company’s operations.

250000

0.082

0.36

Software Development Costs The Company capitalizes software development costs in developing internal use software when capitalizing requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred.

Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) to measure and disclose the fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The three levels of fair value hierarchy defined by ASC 820 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts reported in the Company’s financial statements for cash, accounts payable and accrued expenses approximate their fair value because of the immediate or short-term maturity of these financial instruments. Transactions involving related parties cannot be presumed to be carried out on an arms-length basis, as the requisite conditions of competitive, free-marketing dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. The following table presents liabilities that are measured and recognized at fair value as of March 31, 2022 and December 31, 2021 on recurring basis (in thousands): <table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_pn3n3_zPEPcT4KqV72" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative liabilities (Details)"> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; text-align: center; text-indent: 0pt">Schedule of derivative liabilities</td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td></tr> </table> See Note 6 for discussion of valuation and roll forward related to derivative liabilities.

<table cellpadding="0" cellspacing="0" id="xdx_896_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_pn3n3_zPEPcT4KqV72" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative liabilities (Details)"> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; padding-right: 0pt; padding-left: 0pt; text-align: center; text-indent: 0pt">Schedule of derivative liabilities</td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeAssetFairValueGrossLiability_c20220331_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">463</td><td style="width: 1%; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2021</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt; text-align: center; text-indent: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 1</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 2</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Level 3</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total Carrying Value</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 40%; text-align: left; text-indent: 0pt">Derivative liabilities</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel1Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel2Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--FairValueInputsLevel3Member_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeAssetFairValueGrossLiability_c20211231_pn3n3" style="width: 10%; text-align: right" title="Derivative liabilities">599</td><td style="width: 1%; text-align: left"> </td></tr> </table>

463000

599000

Research and Development In accordance with ASC 730, Research and Development (“R&D”) costs are expensed when incurred. R&D costs include costs of acquiring patents and other unproven technologies, contractor fees and other costs associated with the development of the SMS short code texting platform, contract and other outside services. Total R&D costs for the three months ended March 31, 2022 and 2021 were $2.1 million and $0, respectively.

2100000

Per Share Information Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include stock options, warrants granted, convertible debt and convertible preferred stock. The number of common stock equivalents not included in diluted income per share was 6,006,350 and 1,733,159 for the three months ended March 31, 2022 and 2021, respectively. The weighted average number of common stock equivalents is not included in diluted income (loss) per share, because the effects are anti-dilutive. <table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zDQbt9JAQRRe" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Anti dilutive shares (Details)"> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; display: none; text-align: center; text-indent: -10pt"> Schedule of anti dilutive stock</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">Series A preferred stock</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zYoxf5zOyCi6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zdLEnsVmCEU6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Convertible debt</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zzD3u1nl292k" style="text-align: right" title="Anti-dilutive shares">175,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zgEMdLSIubqc" style="text-align: right" title="Anti-dilutive shares">645,432</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zhQWhm8nE4sj" style="text-align: right" title="Anti-dilutive shares">4,275,464</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zslzx5wVqO8f" style="text-align: right" title="Anti-dilutive shares">21,052</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zhlg7GScfhTe" style="text-align: right" title="Anti-dilutive shares">999,132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zT9ZMrKTqlx9" style="text-align: right" title="Anti-dilutive shares">706,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Restricted stock units</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zmXMPTbj73yl" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">554,973</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_znRaOsiGPIA4" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">359,526</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331_zNdqksGBLvfg" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">6,006,350</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_z6wJyBoJmyz8" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">1,733,159</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6006350

1733159

<table cellpadding="0" cellspacing="0" id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zDQbt9JAQRRe" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Anti dilutive shares (Details)"> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; display: none; text-align: center; text-indent: -10pt"> Schedule of anti dilutive stock</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2021</td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">Series A preferred stock</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zYoxf5zOyCi6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zdLEnsVmCEU6" style="width: 12%; text-align: right" title="Anti-dilutive shares">1,149</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Convertible debt</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zzD3u1nl292k" style="text-align: right" title="Anti-dilutive shares">175,632</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--ConvertibleDebtMember_zgEMdLSIubqc" style="text-align: right" title="Anti-dilutive shares">645,432</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zhQWhm8nE4sj" style="text-align: right" title="Anti-dilutive shares">4,275,464</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zslzx5wVqO8f" style="text-align: right" title="Anti-dilutive shares">21,052</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Options</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zhlg7GScfhTe" style="text-align: right" title="Anti-dilutive shares">999,132</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--OptionMember_zT9ZMrKTqlx9" style="text-align: right" title="Anti-dilutive shares">706,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Restricted stock units</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_zmXMPTbj73yl" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">554,973</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--RestrictedStockUnitsRSUMember_znRaOsiGPIA4" style="border-bottom: Black 1pt solid; text-align: right" title="Anti-dilutive shares">359,526</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20220101__20220331_zNdqksGBLvfg" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">6,006,350</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_z6wJyBoJmyz8" style="border-bottom: Black 2.5pt double; text-align: right" title="Anti-dilutive shares">1,733,159</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1149

175632

645432

4275464

21052

999132

706000

554973

359526

6006350

1733159

Derivative Liability The Company issued debts that consist of the issuance of convertible notes with variable conversion provisions. In addition, the Company issued warrants with variable anti-dilution provisions. The conversion terms of the convertible notes and warrants are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants and shares to be issued were recorded as derivative liabilities on the issuance date and at each reporting period.

New Accounting Pronouncements The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. The Company believes those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

Risks and Uncertainties On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020, declared it to be a pandemic. Since the Company derives its revenues from processing of purchases from our merchant services clients, a downturn in economic activity, such as associated with the current coronavirus pandemic, could reduce the volume of purchases it processes, and thus its revenues. In addition, such a downturn could cause its merchant customers to cease operations permanently decreasing our payment processing unless new customers are found. The continuing effects of the potential impact cannot be estimated at this time.

NOTE 3 – PATENTS Patents On June 22, 2017, AppTech executed an Amendment to Asset Purchase Agreement with GlobalTel Media, Inc., the details of which were previously disclosed by AppTech. The referenced agreement acquired intellectual property assets including but not limited to USPTO 8,073,895 & 8,572,166 “System and Method for Delivering Web Content to a Mobile Device”, USPTO 8,315,184 “Computer to Mobile Two-Way Chat System and Method”, and USPTO 8,369,828 “Mobile-to-Mobile Payment System and Method”. AppTech intends to use these assets as an integral part of future business expansion and product development. As of March 31, 2022 and December 31, 2021, there were zero dollars in accounts payable related to the assumption of liabilities in connection with the patents. See Note 8 for more information on capitalized prepaid software development and license.

NOTE 4 – ACCRUED LIABILITIES Accrued liabilities as of March 31, 2022 and December 31, 2021 consist of the following (in thousands): <table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_pn3n3_zBEDiBrgdrM7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ACCRUED LIABILITIES (Detail)"> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> Schedule of Accrued Liabilities </td><td> </td> <td colspan="3" id="xdx_496_20220331" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_495_20211231" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2021</td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr id="xdx_402_ecustom--AccruedInterestThirdParties_iI_pn3n3_maALCz3Eq_zNqDX7HUce5b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">Accrued interest – third parties</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,305</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,420</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedPayrollTaxesCurrent_iI_pn3n3_maALCz3Eq_z3a5SBAjD5le" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accrued payroll</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">251</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">294</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--AccruedResiduals_iI_pn3n3_maALCz3Eq_z1Nx4QhcH9ac" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accrued residuals</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AntidilutionProvision_iI_pn3n3_maALCz3Eq_zS05wv4qCYij" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Anti-dilution provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,290</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_pn3n3_maALCz3Eq_zcatddqHdmig" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">237</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrent_iTI_pn3n3_mtALCz3Eq_zacv0JIIrKh5" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Total accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Accrued Interest Notes payable and convertible notes payable incur interest at rates between 10% and 15%, per annum. Accrued Residuals The Company pays commissions to independent agents which refer merchant accounts. The amounts payable to these independent agents is based upon a percentage of the amounts processed on a monthly basis by these merchant accounts. Anti-dilution provision The agreement between the Company and Infinios, formerly NEC Payments B.S.C., has an anti-dilution provision. To remain in compliance, the Company accrued 73,848 shares of its common stock at $17.46 per share for a total value of $1.3 million as of December 31, 2021. Further, in connection with the capital raise discussed in Note 1, the Company accrued an additional 378,109 shares of its common stock at $2.20 per share for a value of $832 thousand or a total value of $2.1 million as of March 31, 2022. The 451,957 total shares were issued in May 2022, were classified as a long-term liability and treated as additional consideration to Infinios.

<table cellpadding="0" cellspacing="0" id="xdx_887_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_pn3n3_zBEDiBrgdrM7" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ACCRUED LIABILITIES (Detail)"> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> Schedule of Accrued Liabilities </td><td> </td> <td colspan="3" id="xdx_496_20220331" style="text-align: center"> </td><td> </td> <td colspan="3" id="xdx_495_20211231" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">March 31, 2022</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2021</td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr id="xdx_402_ecustom--AccruedInterestThirdParties_iI_pn3n3_maALCz3Eq_zNqDX7HUce5b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; text-align: left; text-indent: -10pt">Accrued interest – third parties</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,305</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,420</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedPayrollTaxesCurrent_iI_pn3n3_maALCz3Eq_z3a5SBAjD5le" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accrued payroll</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">251</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">294</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--AccruedResiduals_iI_pn3n3_maALCz3Eq_z1Nx4QhcH9ac" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accrued residuals</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AntidilutionProvision_iI_pn3n3_maALCz3Eq_zS05wv4qCYij" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Anti-dilution provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,290</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AccruedLiabilitiesAndOtherLiabilities_iI_pn3n3_maALCz3Eq_zcatddqHdmig" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">237</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedLiabilitiesCurrent_iTI_pn3n3_mtALCz3Eq_zacv0JIIrKh5" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Total accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,821</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,136</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1305000 1420000

251000

294000

28000 98000 1290000

237000

34000

1821000

3136000

73848

17.46

1300000 378109

2.20

832000

NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE The Company funded operations through cash flows generated from operations and the issuance of loans and notes payable. The following is a summary of loans and notes payable outstanding as of March 31, 2022 and 2021. Related parties noted below are either members of management, board of directors, significant shareholders or individuals in which have significant influence over the Company. Subordinated Notes Payable In 2016, the Company issued $350 thousand in subordinated notes payable to third parties that incurred interest at 10% per annum. On September 30, 2021, the Company converted the notes issued for $530 thousand of principal and interest into 55,767 shares of the Company’s common stock. Since the notes were converted to equity, there will no longer be any accrued interest related to the subordinated notes. Convertible Notes Payable In 2020, the Company entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell to the investor a $300 thousand convertible note bearing interest at 12% per annum (the “Note”). The Note matures in 365 days from the date of issuance. The Note is convertible at the option of the holder at any time into shares of the Company’s common stock at nine dollars and fifty cents $9.50 for the one hundred and eighty (180) days immediately following the issue date and thereafter shall equal the lower of: 1) the lowest closing price of the common stock during the preceding twenty-five (25) trading day, ending on the last complete trading day prior to the issue date of the Note. 2) seventy-five (75) percent of the lowest trading price for the common stock during the twenty-five (25) consecutive trading days preceding the conversion date with a minimum trading volume of one thousand (1,000) shares. In the event of a default of the Note, the Holder in its sole discretion may elect to use a conversion price equal to the lower of: 1) the lowest trading price of the common stock on the trading day immediately preceding the issue date or 2) seventy-five (75) percent of either the lowest trading price or the closing bid price, whichever is lower during any trading day in which the event of default has not been cured. The embedded conversion feature of this Note was deemed to require bifurcation and liability classification, at fair value. Pursuant to the Securities Purchase Agreement, the Company also sold warrants to the investors to purchase up to an aggregate of 21,052 shares of common stock exercisable at fourteen dollars and twenty-five cents ($14.25) and expire in five (5) years. The fair value of the derivative liability and warrants as of the date of issuance was in excess of the Note (see Note 6 for valuation) resulting in full discount of the Note. The conversion feature and warrants have various reset provisions for which lower the exercise price and share and warrants issuable. As of March 31, 2022 and December 31, 2021, the convertible note payable balance was $280 thousand and $280 thousand, and has accrued interest of $68 thousand and $39 thousand, respectively. Total interest expense on convertible notes payable, inclusive of amortization of debt discount of $280 thousand, amounted to $315 thousand for the year ended December 31, 2021. As of March 31, 2022, the convertible note payable discount is $0. See Note 6– Derivative Liabilities. In 2015, the Company issued $50 thousand in convertible notes payable. The convertible notes payable are unsecured, were due in nine months, incur interest at 10% per annum and are convertible at $9.50 per share. The Company amended the convertible note on March 2, 2022 and an agreed offer of a $10 thousand discount on the principal and interest resulting in a $72 thousand payment in full. In 2014, the Company issued $400 thousand in convertible notes payable. The convertible notes payable are unsecured, due in periods ranging up to one year, incurring interest between 10% to 12% per annum and are convertible at prices ranging from $3.14 to $9.50 per share. In addition, the Company issued 42,105 shares of common stock in connection with the convertible notes payable. The Company had the obligation to repurchase the 42,105 shares of common stock at $9.50 per share within one year of the note issuance date. On March 30, 2022, the Company entered into three forbearance agreements which granted the holders 2,105 shares of our common stock in exchange for not enforcing the terms of the agreement for a period of twelve months. As of March 31, 2022 and December 31, 2021, the Company held the obligation to repurchase the shares for $400 thousand. As of March 31, 2022 and December 31, 2021, the accrued interest related to the convertible notes was $278 thousand and $268 thousand, respectively. Notes Payable In 2020, the Company entered into a 30-year unsecured note payable with U.S. Small Business Administration for $68 thousand in proceeds. The notes payable incurred a $100 fee upon issuance and incurs interest at 3.75% per annum. All payments of principal and interest are deferred for thirty months from the date of the note. As of March 31, 2022 and December 31, 2021 the balance of the note payable was $68 thousand and $68 thousand, and accrued interest was $4 thousand and $4 thousand, respectively. Two significant shareholders funded the Company’s operations through notes payable in primarily 2009 and 2010. The notes payable incur interest at 10% per annum and were due on December 31, 2016. On May 2, 2021, the Company entered into a debt reduction and confirmation agreement with a significant shareholder. The parties agreed to reduce the outstanding accrued interest in the amount of $275 thousand. On September 29, 2021, the Company converted notes issued for $51 thousand of principal and accrued interest into 5,329 shares of the Company’s common stock. On September 29, 2021, the Company entered into a forbearance agreement which granted the holder 3,140 shares with a current fair market value of $35 thousand in exchange for not enforcing the terms of the agreement for a period of twelve months. On February 4, 2022, the Company entered into an amended forbearance agreement. The parties agreed to reduce the outstanding accrued interest in the amount of $75 thousand along with a $50 thousand payment of accrued interest. As of March 31, 2022, and December 31, 2021, the aggregate balance of the notes payable was $597 thousand and accrued interest was $258 thousand and $383 thousand, respectively. In Q3 of 2021, the Company converted notes issued for $503 thousand into 52,942 shares of the Company’s common stock. Also, the Company entered into a forbearance agreement which granted the holders 2,760 shares of the Company’s common stock with a current fair market value of $120 thousand in exchange for not enforcing the terms of the agreement for a period of twelve months.

280000

68000

39000

280000

315000

400000 400000

278000

268000

68000

4000

75000

50000

597000

258000

383000

NOTE 6–DERIVATIVE LIABILITIES The Company issued debts that consist of the issuance of convertible notes with variable conversion provisions. In addition, the Company issued warrants with variable conversion provisions. The conversion terms of the convertible notes and warrants are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion option and warrants were recorded as derivative liabilities on the issuance date and revalued at March 31, 2022 and December 31, 2021. Based on the convertible notes described in Note 6, the derivative liability day one loss is $390 thousand and the change in fair value at March 31, 2022 and December 31, 2021 is $136 thousand and ($26 thousand), respectively. The fair value of applicable derivative liabilities on note, warrants and change in fair value of derivative liability are as follows for the three months ended March 31, 2022 (in thousands). <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_z44yWbEUG2Wi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - DERIVATIVE LIABILITIES (Detail)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Schedule of fair value of derivative liabilities </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; text-align: center; padding-right: 0pt; padding-left: 10pt; text-indent: -10pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Derivative Liability Convertible Notes</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Derivative Liability Warrants</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; width: 46%; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Balance as of December 31, 2021</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_zUIkE9J7BAnj" style="width: 11%; text-align: right" title="Balance as of begining">274</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_z2HTWfdlTGO9" style="width: 11%; text-align: right" title="Balance as of begining">325</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331_zafyj9Ugj5Hk" style="width: 11%; text-align: right" title="Balance as of begining">599</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ChangeInFairValue_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_pn3n3" style="text-align: right" title="Change in fair value">(76</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ChangeInFairValue_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_pn3n3" style="text-align: right" title="Change in fair value">(60</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ChangeInFairValue_c20220101__20220331_pn3n3" style="text-align: right" title="Change in fair value">(136</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 2.5pt 10pt; text-indent: -10pt">Balance as of March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_ze07sp6VdnGh" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_zDnoEAEq3Cj9" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">265</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331_zeRnzW67dpsj" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">463</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of March 31, 2022, the fair value of the derivative liability convertible notes is estimated using a Monte Carlo pricing model with the following assumptions: <table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_z82S39yZ6Ghj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - DERIVATIVE LIABILITIES Disclosure - DERIVATIVE LIABILITIES - Valuation Assumptions (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Schedule of pricing mode with assumptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 70%; text-indent: -10pt">Market value of common stock</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--MarketValueOfCommonStocks_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_pdd" style="width: 18%; text-align: right" title="Market value of common stock">1.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_znvG9EaWgGwf" title="Expected volatility">104.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_z4IVm0QeQZz8" title="Expected term (in years)">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_zBTDFKeQ4n" title="Risk-free interest rate">1.37</td><td style="text-align: left">%</td></tr> </table> As of March 31, 2022, the fair value of the derivative liability – warrants is estimated using a Monte Carlo pricing model with the following assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; width: 70%; padding-left: 0pt; text-indent: 0pt">Market value of common stock</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zoQeNM5PDoad" title="Expected volatility">108.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zQ38hvbccAUe" title="Expected term (in years)">3.64</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_z2XDbxj10h38" title="Risk-free interest rate">1.67</td><td style="text-align: left">%</td></tr> </table>

390000

136000

26000

<table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_z44yWbEUG2Wi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - DERIVATIVE LIABILITIES (Detail)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Schedule of fair value of derivative liabilities </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-top: 0pt; text-align: center; padding-right: 0pt; padding-left: 10pt; text-indent: -10pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Derivative Liability Convertible Notes</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Derivative Liability Warrants</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; width: 46%; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Balance as of December 31, 2021</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_zUIkE9J7BAnj" style="width: 11%; text-align: right" title="Balance as of begining">274</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_z2HTWfdlTGO9" style="width: 11%; text-align: right" title="Balance as of begining">325</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeFairValueOfDerivativeLiability_iS_pn3n3_c20220101__20220331_zafyj9Ugj5Hk" style="width: 11%; text-align: right" title="Balance as of begining">599</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 10pt; padding-right: 0pt; text-indent: -10pt">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ChangeInFairValue_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_pn3n3" style="text-align: right" title="Change in fair value">(76</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--ChangeInFairValue_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_pn3n3" style="text-align: right" title="Change in fair value">(60</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ChangeInFairValue_c20220101__20220331_pn3n3" style="text-align: right" title="Change in fair value">(136</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 2.5pt 10pt; text-indent: -10pt">Balance as of March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityConvertibleNotesMember_ze07sp6VdnGh" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--DerivativeLiabilityWarrantsMember_zDnoEAEq3Cj9" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">265</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeFairValueOfDerivativeLiability_iE_pn3n3_c20220101__20220331_zeRnzW67dpsj" style="border-bottom: Black 2.5pt double; text-align: right" title="Balance as of ending">463</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

274000

325000

599000

-76000 -60000 -136000

198000

265000

463000

<table cellpadding="0" cellspacing="0" id="xdx_894_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_z82S39yZ6Ghj" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - DERIVATIVE LIABILITIES Disclosure - DERIVATIVE LIABILITIES - Valuation Assumptions (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Schedule of pricing mode with assumptions</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 70%; text-indent: -10pt">Market value of common stock</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--MarketValueOfCommonStocks_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_pdd" style="width: 18%; text-align: right" title="Market value of common stock">1.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_znvG9EaWgGwf" title="Expected volatility">104.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_z4IVm0QeQZz8" title="Expected term (in years)">0.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--ConvertibleNotesMember_zBTDFKeQ4n" title="Risk-free interest rate">1.37</td><td style="text-align: left">%</td></tr> </table> As of March 31, 2022, the fair value of the derivative liability – warrants is estimated using a Monte Carlo pricing model with the following assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; width: 70%; padding-left: 0pt; text-indent: 0pt">Market value of common stock</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zoQeNM5PDoad" title="Expected volatility">108.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zQ38hvbccAUe" title="Expected term (in years)">3.64</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-top: 0pt; text-align: left; padding-left: 0pt; text-indent: 0pt">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_z2XDbxj10h38" title="Risk-free interest rate">1.67</td><td style="text-align: left">%</td></tr> </table>

1.35

1.048

P0Y3M

0.0137

1.35

1.089

P3Y7M20D

0.0167

NOTE 7–RIGHT OF USE ASSET Lease Agreement In January 2020, the Company entered into a lease agreement commencing February 8, 2020 for its current facility which expires in 2025. The term of the lease is for five years. At inception of the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 12% within the calculation. The following are the expected lease payments as of March 31, 2022, including the total amount of related imputed interest (in thousands): Years ended December 31: <table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_pn3n3_z7SwiUYbtSN9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - RIGHT OF USE ASSET (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of Future Minimum Rental Payments for Operating Leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220331_zGyrEGTvGw0l" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_zxf9rtRifUg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">2022</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">64</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_zhxBo1kAnND3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_z5ZqEgPyqwy8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_zuK8W1vePkJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pn3n3_zPz5KojFtfD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating Lease Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">249</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--ImputedInterests_iNI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(39</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">210</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The rent expense was $15 thousand and $15 thousand for the three months ended March 31, 2022 and 2021, respectively.

<table cellpadding="0" cellspacing="0" id="xdx_885_eus-gaap--ScheduleOfFutureMinimumRentalPaymentsForOperatingLeasesTableTextBlock_pn3n3_z7SwiUYbtSN9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - RIGHT OF USE ASSET (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of Future Minimum Rental Payments for Operating Leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220331_zGyrEGTvGw0l" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_zxf9rtRifUg8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">2022</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">64</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_zhxBo1kAnND3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2023</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_z5ZqEgPyqwy8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2024</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_zuK8W1vePkJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_pn3n3_zPz5KojFtfD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating Lease Total</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">249</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_ecustom--ImputedInterests_iNI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(39</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseLiability_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">210</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

64000

88000

90000

7000

249000

-39000

210000

15000

NOTE 8 - COMMITMENTS AND CONTINGENCIES Litigation Former Shareholders Lawsuit In November 2017, two shareholders of AppTech, Laura Farris and Eric Ottens, filed a lawsuit against the Company in the State of California, claiming conversion, aiding and abetting conversion, breach of fiduciary duty, breach of contract, breach of implied covenant of good faith and fair dealing and declaratory relief. The lawsuit was removed to the United States District Court for the Southern District of California. On December 19, 2019, the Company entered into a settlement and release agreement with the plaintiffs pursuant to which the Company will pay the plaintiffs an aggregate of $240 thousand in installments over three years, commencing on February 15, 2020. On January 24, 2021, the parties entered a stipulation modifying the repayment schedule of the settlement which altered the timing of payments over the three-year repayment period. The final payment was made in March 2022. The litigants are now paid in full and no further action is warranted by the Company. Other Lawsuit In July of 2020, an owner and corporation having a non-binding Memorandum of Understanding (“MOU”) filed a lawsuit against AppTech Payments Corp. (formally “AppTech Corp.”) in the County of San Diego, State of California. Plaintiffs amended the Complaint on March 11, 2021. The claims include breach of contract, intentional misrepresentation, negligent misrepresentation, and unjust enrichment. Service of process occurred on January 8, 2021. Management believes the non-binding MOU terminated after no Definite Agreement was executed between the parties, and negotiations ceased December 20, 2016. We filed an answer to the Amended Complaint on April 27, 2021 and began discovery. Management does not believe Plaintiffs’ claims for damages have merit or are supported by Plaintiffs’ evidence. We filed a Summary Judgment requesting an Order from the Court to narrow the issues in the Amended Complaint. This matter is scheduled for trial on July 8, 2022. We currently own a judgment dated February 17, 2017, against the owner and corporation in the amount of $517 thousand plus interest. The judgment was assigned to AppTech Payments Corp. and Management plans to use the judgment to assist in the possible settlement and dismissal of this case prior to trial. Convertible Note and Warrant Lawsuit On July 14, 2021, EMA Financial LLC, a Delaware limited liability company (“EMAF”), filed a complaint in the Southern District of New York against the Company. In its complaint, EMAF alleged that the Company breached the terms of a convertible note and a related warrant agreement purchased by EMAF pursuant to a securities purchase agreement between the parties. EMAF sought specific performance, payment of damages to be determined but not in excess of $2.75 million, reimbursement of costs and expenses, including reasonable legal fees, and non-interference. On September 2, 2021, EMAF filed a motion for summary judgment. On September 9, 2021, AppTech filed a motion to dismiss on the grounds the agreements were void as a result of the illegal activity by the plaintiff. On October 15, 2021, the parties filed memorandums in opposition to the respective motion. On October 25, 2021, the parties filed memorandums of law in further support of their respective motions. We believe EMAF’s claims are meritless and intend to vigorously defend against this lawsuit. The parties have engaged in settlement discussions with an expected range of potential liability between $400 thousand and $550 thousand, which includes principal and accrued interest of the convertible notes payable. Significant Contracts Capital Raise In February 2021, the Company entered into an engagement letter with Maxim Group LLC (“Maxim”) as the lead management underwriter for a follow-on offering which is non-binding. On October 27, 2021, Maxim and the Company terminated all relevant agreements and the Company issued Maxim 21,052 shares of the Company’s common stock in association with the termination. On October 18, 2021, the Company entered into an engagement letter with EF Hutton, division of Benchmark Investments, LLC. (“EF Hutton”) to act as lead underwriter, deal manager and investment banker for the Company’s proposed firm commitment follow-on public offering and uplisting. This engaged EF Hutton through the earlier of (i) October 2022 or (ii) the closing of a follow-on offering. The Company completed its offering on January 7, 2022. The Company sold 3,614,201 units of our common stock (a unit consisted of one share of common stock and a warrant to purchase one share of common stock) at $4.15 per unit. The offering provided net proceeds of approximately $13.4 million. See note 1 for information on the capital raise completed in January 2022. Silver Alert Services, LLC In August 2020, the Company entered into a strategic partnership with Silver Alert Services, LLC doing business as Lifelight Systems (“Lifelight”). The partnership would expand AppTech’s reach into new markets and provide advanced technological solutions for the telehealth and personal emergency response systems markets. The strategic partnership was cancelled on February 17, 2022. Infinios Financial Services (formerly NEC Payments B.S.C.) On October 1, 2020, the Company entered into a strategic partnership with Infinios Financial Services BSC (formally NEC Payments B.S.C) (“Infinios”) through a series of agreements, which included the following: (a) Subscription License and Services Agreement; (b) Digital Banking Platform Operating Agreement; (c) Subscription License Order Form; and (d) Registration Rights Agreement (collectively the “Agreements”). On February 11, 2021, the Company entered into an amended and restated Subscription License and Services Agreement, Digital Banking Platform Operating Agreement and Subscription License Order Form with Infinios (collectively the “Restated Agreements”). The gross total fees due under the Restated Agreements are $2.2 million excluding pass-through costs associated with infrastructure hosting fees. On February 19, 2021, the Company completed and validated its contractual obligations and paid to Infinios the $100 thousand engagement fee. On February 28, 2021, the Company paid the initial fee of $708 thousand to Infinios prior to the Funding Date. On March 25, 2021, the Company issued 1,895,948 shares of common stock to an Infinios affiliate on a fully diluted basis with piggyback rights. The Company valued the common stock issuance at $67.5 million based upon the closing market price on the effective date of the transaction based on the closing market price of the Company’s common stock. The issuance was recorded as a $3.8 million asset and $63.8 million expense in excess fair value of equity issuance over assets received. The capitalized asset was classified as capitalized prepaid software development of $2.8 million and capitalized licensing of $1.0 million. The estimated amortization is a 5-years life based on the term of the licensing agreement. The amortization is set to begin once the platform begins processing transactions (in thousand). As of March 31, 2022, the following fees were paid (in thousands): <table cellpadding="0" cellspacing="0" id="xdx_886_ecustom--ScheduleOfFeesPaidToNecpPlatformTableTextBlock_pn3n3_zukpX13WdZw" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - COMMITMENTS AND CONTINGENCIES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Schedule of fees paid to NECP platform</td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20220101_20220331" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--EngagementFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 70%; text-align: left; text-indent: -10pt">Engagement Fee (prepaid licensing cost)</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">100</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--LicenseSubscriptionFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">License subscription fee (prepaid licensing cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">750</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AnnualMaintenanceSubscriptionFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Annual maintenance subscription fee (prepaid licensing cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">113</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--ImplementationFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Implementation fee (capitalized software cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">325</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--InfrastructureImplementationFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Infrastructure implementation fee (capitalized software cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--TrainingFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Training fee (50% due at Funding Date)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--TotalFees_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The annual maintenance subscription fee of $113 thousand will be due annually beginning in the month of the platform launch. In addition, the infrastructure support fee of $72 thousand will be due annually beginning in 2022 and ending in 2026. Innovations Realized LLC On October 2, 2020, the Company entered into an independent contractor services agreement with Innovations Realized, LLC (“IR”) to develop a strategic operating plan focused on the design, execution and go-to-market implementation of the Infinios platform to enter the United States market. Under the agreement, the Company granted options to purchase 42,105 shares at a price of $0.095 and 263,157 shares at $2.375 and exercisable for two years after vesting. These options vest in equal monthly installments over 24 months. These options had a grant date fair value of $1.4 million and $8.7 million using a Black Scholes pricing model. The estimated amortization is a 5-year life based on the term of the licensing agreement. On February 18, 2021, the Company entered into an amended independent contractor services agreement for $760 thousand with IR. The final payment owed to IR of $171 thousand was paid in January 2022. Investor Relations On January 2, 2022, the Company entered into an agreement with an investor relations firm (“IR Firm”) that compensated IR Firm $50 thousand and 100,000 shares upon the successful uplisting onto NASDAQ. In addition, on January 31, 2022, the Company entered into a consulting agreement with IR Firm. The Company agreed to a six-month commitment with IR Firm that pays $5 thousand per month, grants IR Firm a stock purchase agreement to buy 45,000 shares of the Company stock at $0.001 per share and grants a monthly budget of approximately $100 thousand (with monthly automatic renewals unless the agreement were canceled in writing). In return, IR Firm agrees to provide investor relations outreach, public relations, advisory and consulting services, to AppTech. Payment for the two agreements was made in February 2022.

240000

21052

2800000

1000000.0 <table cellpadding="0" cellspacing="0" id="xdx_886_ecustom--ScheduleOfFeesPaidToNecpPlatformTableTextBlock_pn3n3_zukpX13WdZw" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - COMMITMENTS AND CONTINGENCIES (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Schedule of fees paid to NECP platform</td><td> </td> <td style="text-align: left"> </td><td id="xdx_490_20220101_20220331" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--EngagementFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 70%; text-align: left; text-indent: -10pt">Engagement Fee (prepaid licensing cost)</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">100</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--LicenseSubscriptionFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">License subscription fee (prepaid licensing cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">750</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AnnualMaintenanceSubscriptionFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Annual maintenance subscription fee (prepaid licensing cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">113</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--ImplementationFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Implementation fee (capitalized software cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">325</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--InfrastructureImplementationFee_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Infrastructure implementation fee (capitalized software cost)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--TrainingFee_i_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Training fee (50% due at Funding Date)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">50</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--TotalFees_i_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,403</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 100000 750000 113000 325000 65000 50000 1403000 113000 72000

NOTE 9 – STOCKHOLDERS’ DEFICIT Common Stock During the three months ended March 31, 2022 and 2021, the Company issued 233,816 and 247,000, respectively, shares of common stock to several consultants in connection with business development and professional services. The Company valued the common stock issuances at $466 thousand and $316 thousand, respectively, based upon the closing market price of the Company’s common stock on the date in which the performance was complete or issued based upon the vesting schedule and the closing market price of the Company’s common stock on the date of the agreement. The amounts were expensed to general and administrative expenses on the accompanying statements of operations. During the three months ended March 31, 2022 and 2021, the Company granted 76,664 and 9,211 shares of common stock to the board of directors valued at $103 thousand and $49 thousand, respectively. The shares vest quarterly over the period of approximately one year. See Note 8 – Significant Contracts for additional common stock issuance. Stock Options During the year ended December 31, 2021: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 18pt"/><td style="width: 18pt">a)</td><td style="text-align: justify">options to purchase 353,368 shares of common stock at a weighted average price of $<span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231__srt--CounterpartyNameAxis__custom--EmployeesMember_pdd" title="Weighted average price of option granted">16.25 were granted as compensation to employees. The options vest in equal monthly installments over 6 and 12 months. The options were valued at $6.3 million using a Black-Scholes options pricing model.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 18pt"/><td style="width: 18pt">b)</td><td style="text-align: justify">options to purchase <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20210101__20211231__srt--CounterpartyNameAxis__custom--ConsultantsMember_pdd" title="Option granted">38,421 shares of common stock at a weighted average price of $<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20210101__20211231__srt--CounterpartyNameAxis__custom--ConsultantsMember_pdd" title="Weighted average price of option granted">8.55 were granted as compensation for various services including accounting, sales, and marketing. The options were valued at $825 thousand using a Black-Scholes options pricing model. 13,158 shares were exercised.</td></tr></table> The fair value of the options for the year ended December 31, 2021 is estimated using a Black-Scholes option pricing model with the following range of assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Schedule of Black Scholes option pricing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Market value of common stock on issuance date</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$5.34 - $33.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Expected price</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$0.095 - $19.34</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zMk3oZaHWwb8" title="Expected volatility">450% - <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zgXMm8jBbEd7" title="Expected volatility">608%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtYp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zD33b7OmR3R9" title="Expected term (in years)">0.3 - <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zM8E1f5T7lza" title="Expected term (in years)">3.0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 70%; text-align: left; text-indent: 0pt">Risk-free interest rate</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zoga50J1dnGl" title="Risk-free interest rate">0.11%</td><td style="width: 1%; text-align: left"/></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected dividend yields</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp0_c20210101__20211231_ziVJRwg5En8j" style="text-align: right" title="Expected dividend yields">—</td><td style="text-align: left"> </td></tr> </table> During the three months ended March 31, 2022: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 18pt"/><td style="width: 18pt">a)</td><td style="text-align: justify">options to purchase 298,685 shares of common stock at a weighted average price of $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20220331__srt--CounterpartyNameAxis__custom--EmployeesMember_pdd" title="Weighted average price of option granted">3.00 were granted as compensation to employees. The options vest in equal monthly installments ranging from instantly to 24 months months. The options were valued at $897 thousand using a Black-Scholes options pricing model.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top"> <td style="width: 18pt"/><td style="width: 18pt">b)</td><td style="text-align: justify">options to purchase <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20220101__20220331__srt--CounterpartyNameAxis__custom--ConsultantsMember_pdd" title="Option granted">36,842 shares of common stock at a weighted average price of $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20220101__20220331__srt--CounterpartyNameAxis__custom--ConsultantsMember_pdd" title="Weighted average price of option granted">12.04 were granted as compensation for various services including engineering, accounting, and sales. The options were valued at $444 thousand using a Black-Scholes options pricing model.</td></tr></table> <div id="xdx_C0D_gL3SOBSOPTTB-VNFW_zOQU0eEHtvS2"><div> The fair value of the options for the three months ended March 31, 2022 is estimated using a Black-Scholes option pricing model with the following range of assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Market value of common stock on issuance date</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$1.24 - $12.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Expected price</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$1.24 - $12.04</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zCBOKUSb47Bg" title="Expected volatility">415% - <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zQWT190pnq5f" title="Expected volatility">442%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0 - 5.0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 70%; text-align: left; text-indent: 0pt">Risk-free interest rate</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zRMehfBm4nbh" title="Risk-free interest rate">0.11%</td><td style="width: 1%; text-align: left"/></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected dividend yields</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp0_c20220101__20220331_z5IGLjUDQvmh" style="text-align: right" title="Expected dividend yields">—</td><td style="text-align: left"> </td></tr> </table> </div></div> The following table summarizes option activity: <table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_z9oJzsXgPlp3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' DEFICIT - Option activity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of option activity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Number of shares</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average exercise price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average remaining years</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Outstanding December 31, 2021</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zPOimZB4t65j" style="width: 11%; text-align: right" title="Option outstanding Begining Balance">1,055,184</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zNOUJR56Q2kg" style="width: 11%; text-align: right" title="Weighted Average Exercise Price, Option outstanding Begining Balance">6.62</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z9QB6enreMMc" style="text-align: right" title="Option Issued">335,527</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zrp6JIl7NxTe" style="text-align: right" title="Weighted Average Exercise Price, Option Issued">4.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zq1Z0Z04Qczf" style="text-align: right" title="Option Exercised">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zl2wnzJaz0qi" style="text-align: right" title="Weighted Average Exercise Price, Option Exercised">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zuCZbJmGkJ0h" style="border-bottom: Black 1pt solid; text-align: right" title="Option Cancelled">(391,579</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z7DJTChWVc6h" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Option Cancelled">2.44</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Outstanding as of March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z0psaNx7wnu6" style="border-bottom: Black 2.5pt double; text-align: right" title="Option outstanding Ending Balance">999,132</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zG9DQUhfASEb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Option outstanding Ending Balance">7.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zsgngcwf96bk" title="Options outstanding weighted average remaining years">2.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outstanding as of March 31, 2022, vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pid_c20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z4qcwvajqdIg" style="border-bottom: Black 2.5pt double; text-align: right" title="Option outstanding vested">667,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z99cc317gHb5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average exercise price, Options, Vested">7.75</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zz9HlBVqkg94" title="Weighted Average remaining years Options, Vested">2.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The remaining expense outstanding through March 31, 2022 is $2.5 million which is expected to be expensed over the next <span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtM_c20220101__20220331_zKoNiEBzuMgl" title="Remaining expense outstanding term">23 months in general and administrative expense. See Note 8 – Significant Contracts for additional stock options granted. On December 7, 2021, the board authorized the Company’s Equity Incentive Plan in order to facilitate the grant of equity incentives to employees (including our named executive officers), directors, independent contractors, merchants, referral partners, channel partners and employees of our company to enable our company to attract, retain and motivate employees, directors, merchants, referral partners and channel partners, which is essential to our long-term success. A total of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_c20220331__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_pdd" title="Number of Shares Authorized">1,052,632 shares of common stock were authorized under the Equity Incentive Plan, for which as of March 31, 2022 a total of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_c20220331__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_pdd" title="Shares available for grant">796,547 are available for issuance. Warrants In 2020, the Company entered into a security purchase agreement with an investor pursuant to which the Company agreed to sell the investor a $300 thousand convertible note bearing interest at 12% per annum. The Company also sold warrants to the investors to purchase up to an aggregate of 21,052 shares of common stock, with an exercise term of five (5) years, at a per share price of $14.25 which may be exercised by cashless exercise. The number of warrants adjusted in the period ending March 31, 2022 due to a reset event on January 7, 2022 changed the exercise price from $9.50 to $2.52 and increased the number of warrants from 31,578 to 119,095. The warrants were deemed a derivative liability and recorded as a debt discount at its date of issuance. In total, the Company has 4,275,464 warrants outstanding. 3,614,201 were related to the Offering, 542,168 were granted on January 7 and the reset event added an additional 119,095. See Note 1 for information on warrants issued during the Offering and note 6 for additional information on the derivative liability.

233816

247000

466000

316000

76664

9211

103000

49000

353368

16.25

6300000

38421

8.55

825000

13158

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Schedule of Black Scholes option pricing</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Market value of common stock on issuance date</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$5.34 - $33.25</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Expected price</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$0.095 - $19.34</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zMk3oZaHWwb8" title="Expected volatility">450% - <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zgXMm8jBbEd7" title="Expected volatility">608%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtYp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zD33b7OmR3R9" title="Expected term (in years)">0.3 - <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zM8E1f5T7lza" title="Expected term (in years)">3.0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 70%; text-align: left; text-indent: 0pt">Risk-free interest rate</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20210101__20211231__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zoga50J1dnGl" title="Risk-free interest rate">0.11%</td><td style="width: 1%; text-align: left"/></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected dividend yields</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp0_c20210101__20211231_ziVJRwg5En8j" style="text-align: right" title="Expected dividend yields">—</td><td style="text-align: left"> </td></tr> </table> <div> The fair value of the options for the three months ended March 31, 2022 is estimated using a Black-Scholes option pricing model with the following range of assumptions: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Market value of common stock on issuance date</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$1.24 - $12.45</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-indent: 0pt">Expected price</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">$1.24 - $12.04</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zCBOKUSb47Bg" title="Expected volatility">415% - <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MaximumMember_zQWT190pnq5f" title="Expected volatility">442%</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.0 - 5.0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt; width: 70%; text-align: left; text-indent: 0pt">Risk-free interest rate</td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 18%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__srt--MinimumMember_zRMehfBm4nbh" title="Risk-free interest rate">0.11%</td><td style="width: 1%; text-align: left"/></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt; text-align: left; text-indent: 0pt">Expected dividend yields</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp0_c20220101__20220331_z5IGLjUDQvmh" style="text-align: right" title="Expected dividend yields">—</td><td style="text-align: left"> </td></tr> </table> </div> 5.34 33.25 0.095 19.34

4.50

6.08

P0Y3M18D

P3Y

0.0011

298685

3.00

897000

36842

12.04

444000 1.24 12.45 1.24 12.04

4.15

4.42

P5Y

0.0011

<table cellpadding="0" cellspacing="0" id="xdx_893_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_z9oJzsXgPlp3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' DEFICIT - Option activity (Details)"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Schedule of option activity</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Number of shares</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average exercise price</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average remaining years</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td><td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Outstanding December 31, 2021</td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zPOimZB4t65j" style="width: 11%; text-align: right" title="Option outstanding Begining Balance">1,055,184</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zNOUJR56Q2kg" style="width: 11%; text-align: right" title="Weighted Average Exercise Price, Option outstanding Begining Balance">6.62</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 11%; text-align: right"> </td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Issued</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z9QB6enreMMc" style="text-align: right" title="Option Issued">335,527</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zrp6JIl7NxTe" style="text-align: right" title="Weighted Average Exercise Price, Option Issued">4.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zq1Z0Z04Qczf" style="text-align: right" title="Option Exercised">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zl2wnzJaz0qi" style="text-align: right" title="Weighted Average Exercise Price, Option Exercised">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cancelled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zuCZbJmGkJ0h" style="border-bottom: Black 1pt solid; text-align: right" title="Option Cancelled">(391,579</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z7DJTChWVc6h" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Option Cancelled">2.44</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Outstanding as of March 31, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z0psaNx7wnu6" style="border-bottom: Black 2.5pt double; text-align: right" title="Option outstanding Ending Balance">999,132</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zG9DQUhfASEb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Option outstanding Ending Balance">7.38</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zsgngcwf96bk" title="Options outstanding weighted average remaining years">2.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outstanding as of March 31, 2022, vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pid_c20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z4qcwvajqdIg" style="border-bottom: Black 2.5pt double; text-align: right" title="Option outstanding vested">667,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_z99cc317gHb5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average exercise price, Options, Vested">7.75</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1_dtY_c20220101__20220331__us-gaap--OptionIndexedToIssuersEquityTypeAxis__custom--OptionActivityMember_zz9HlBVqkg94" title="Weighted Average remaining years Options, Vested">2.37</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1055184

6.62

335527

4.00

391579

2.44

999132

7.38

P2Y4M13D

667235

7.75

P2Y4M13D

2500000

P23M

1052632

796547

NOTE 10 – SUBSEQUENT EVENTS Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that no material subsequent events exist other than those disclosed below. The Company fully executed a Definitive Agreement to acquire Hothand Inc. (“Hothand”), a patent-holding company which owns the intellectual property rights to a wide array mobile credit/debit transaction and mobile search, location, offer and payment fields in April 2022. The purchase price was a combination of cash and stock, but should be finalized in the second quarter of 2022. The Company is still determining the impact of this transaction on the financial statements.