0001654954-21-005539.txt : 20210513 0001654954-21-005539.hdr.sgml : 20210513 20210513060456 ACCESSION NUMBER: 0001654954-21-005539 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 49 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210513 DATE AS OF CHANGE: 20210513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUOTEMEDIA INC CENTRAL INDEX KEY: 0001101433 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 912008633 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-28599 FILM NUMBER: 21917040 BUSINESS ADDRESS: STREET 1: 17100 E SHEA BLVD STREET 2: SUITE 230 CITY: FOUNTAIN HILLS STATE: AZ ZIP: 85268 BUSINESS PHONE: 4809057311 MAIL ADDRESS: STREET 1: 17100 E SHEA BLVD STREET 2: SUITE 230 CITY: FOUNTAIN HILLS STATE: AZ ZIP: 85268 FORMER COMPANY: FORMER CONFORMED NAME: QUOTEMEDIA INC DATE OF NAME CHANGE: 20030628 FORMER COMPANY: FORMER CONFORMED NAME: QUOTEMEDIA COM INC DATE OF NAME CHANGE: 19991221 10-Q 1 qmci_10q.htm 10-Q qmci_10q
 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 (Mark one)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2021
OR
 
☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period _________ to _________                    
    
Commission File Number:                   0-28599
 
QUOTEMEDIA, INC.
 (Exact name of registrant as specified in its charter)
 
Nevada
91-2008633
(State or Other Jurisdiction of Incorporation or Organization)
(IRS Employer Identification Number)
 
 
17100 East Shea Boulevard, Suite 230, Fountain Hills, AZ 85268
(Address of Principal Executive Offices)
 
(480) 905-7311
(Registrant’s Telephone Number, Including Area Code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☑   No ☐
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑    No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer  ☐
Accelerated filer  ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)
Smaller reporting company ☑ 
 
Emerging growth company ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐   No ☑
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.    
 
The Registrant has 90,477,798 shares of common stock outstanding as at May 3, 2021.
 

 
 
 
QUOTEMEDIA, INC.
 
FORM 10-Q for the Quarter Ended March 31, 2021
 
INDEX
 
 
 
Page
 
 
 
 
3
 
 
 
 
3
 
 
 
 
4
 
 
 
 
5
 
 
 
 
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020
6
 
 
 
 
7
 
 
 
16
 
 
 
21
 
 
 
 
 
 
 
22
 
 
 
 
23
 
 
 
 
PART I-FINANCIAL INFORMATION
 
 Item 1.    Financial Statements
 
QUOTEMEDIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
 
 
March 31,
2021
 
 
December 31,
2020
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
    Cash and cash equivalents
 $815,499 
 $417,910 
    Accounts receivable, net
  493,160 
  698,334 
    Prepaid expenses
  205,616 
  108,477 
    Other current assets
  38,762 
  113,826 
    Total current assets
  1,553,037 
  1,338,547 
 
    
    
    Deposits
  16,094 
  15,886 
    Property and equipment, net
  2,929,832 
  2,755,537 
    Goodwill
  110,000 
  110,000 
    Intangible assets
  70,196 
  61,914 
    Operating lease right-of-use assets
  642,470 
  671,402 
 
    
    
        Total assets
 $5,321,629 
 $4,953,286 
 
    
    
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT
    
    
 
    
    
Current liabilities:
    
    
    Accounts payable and accrued liabilities
 $2,552,890 
 $2,026,741 
    Deferred revenue
  541,862 
  544,902 
    Current portion of operating lease liabilities
  151,379 
  164,843 
    Current portion of finance lease liabilities
  4,560 
  11,951 
        Total current liabilities
  3,250,691 
  2,748,437 
 
    
    
Paycheck Protection Program loan (Note 8)
  - 
  133,257 
Long-term portion of operating lease liabilities
  474,785 
  504,783 
Long-term portion of finance lease liabilities
  1,426 
  2,108 
 
    
    
Mezzanine equity:
    
    
    Series A Redeemable Convertible Preferred stock, $0.001 par value,
    
    
    550,000 shares designated; Shares issued and outstanding:
    
    
    123,685 at March 31, 2021 and December 31, 2020
  2,983,857 
  2,983,857 
 
    
    
Stockholders’ deficit:
    
    
    Common stock, $0.001 par value, 150,000,000 shares authorized, shares issued and
    
    
    outstanding: 90,477,798 at March 31, 2021 and December 31, 2020
  90,479 
  90,479 
    Additional paid-in capital
  19,612,822 
  19,605,883 
    Accumulated deficit
  (21,092,431)
  (21,115,518)
        Total stockholders’ deficit
  (1,389,130)
  (1,419,156)
 
    
    
        Total liabilities and stockholders’ deficit
 $5,321,629 
 $4,953,286 
 
 
3
QUOTEMEDIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
 
 
 
 
 
 
 
REVENUE
 $3,606,218 
 $2,966,584 
 
    
    
COST OF REVENUE
  2,063,640 
  1,499,484 
 
    
    
GROSS PROFIT
  1,542,578 
  1,467,100 
 
    
    
OPERATING EXPENSES
    
    
 
    
    
Sales and marketing
  638,864 
  517,480 
General and administrative
  607,240 
  650,053 
Software development
  407,288 
  425,827 
 
  1,653,392 
  1,593,360 
 
    
    
OPERATING LOSS
  (110,814)
  (126,260)
 
    
    
OTHER INCOME (EXPENSES)
    
    
 
    
    
Foreign exchange gain
  2,448 
  11,206 
Interest expense
  (1,008)
  (1,527)
Other income (Note 8)
  133,257 
  - 
 
  134,697 
  9,679 
 
    
    
INCOME (LOSS) BEFORE INCOME TAXES
  23,883 
  (116,581)
 
    
    
Income tax expense
  (796)
  (744)
 
    
    
NET INCOME (LOSS)
 $23,087 
 $(117,325)
 
    
    
EARNINGS (LOSS) PER SHARE
    
    
 
    
    
Basic earnings (loss) per share
 $0.00 
 $(0.00)
Diluted earnings (loss) per share
 $0.00 
 $(0.00)
 
    
    
WEIGHTED AVERAGE SHARES OUTSTANDING
    
    
 
    
    
Basic
  90,477,798 
  90,477,798 
Diluted
  119,810,697 
  90,477,798 
 
 
4
QUOTEMEDIA, INC.
CONDENSED STATEMENTS OF CHANGES IN SERIES A REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
 (UNAUDITED)
 
 
 
 
 
Series A Redeemable Convertible
 Preferred Stock
 
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
 
Amount
 
 
Number of
Shares
 
 
Amount
 
 
Additional Paid-in Capital
 
 
Accumulated Deficit
 
 
Total Stockholders’ Equity (Deficit)
 
Balance, December 31, 2020
  123,685 
 $2,983,857 
  90,477,798 
 $90,479 
 $19,605,883 
 $(21,115,518)
 $(1,419,156)
 
    
    
    
    
    
    
    
Stock-based compensation
    
    
    
    
  6,939 
    
  6,939 
 
    
    
    
    
    
    
    
Net income
    
    
    
    
    
  23,087 
  23,087 
 
    
    
    
    
    
    
    
Balance, March 31, 2021
  123,685 
 $2,983,857 
  90,477,798 
 $90,479 
 $19,612,822 
 $(21,092,431)
 $(1,389,130)
 
 
 
 
Series A Redeemable Convertible
 Preferred Stock
 
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Number of Shares
 
 
Amount
 
 
Number of
Shares
 
 
Amount
 
 
Additional Paid-in Capital
 
 
Accumulated Deficit
 
 
Total Stockholders’ Equity (Deficit)
 
Balance, December 31, 2019
  123,685 
 $2,983,857 
  90,477,798 
 $90,479 
 $19,568,011 
 $(20,469,194)
 $(810,704)
 
    
    
    
    
    
    
    
Stock-based compensation
    
    
    
    
  11,991 
    
  11,991 
 
    
    
    
    
    
    
    
Net loss
    
    
    
    
    
  (117,325)
  (117,325)
 
    
    
    
    
    
    
    
Balance, March 31, 2020
  123,685 
 $2,983,857 
  90,477,798 
 $90,479 
 $19,580,002 
 $(20,586,519)
 $(916,038)
 
 
 
5
QUOTEMEDIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 $23,087 
 $(117,325)
 
    
    
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    
    
    Depreciation and amortization
  347,788 
  305,757 
    Stock-based compensation expense
  6,939 
  11,991 
    Gain on forgiveness of PPP loan (Note 8)
  (133,257)
  - 
Changes in assets and liabilities:
    
    
    Accounts receivable
  205,174 
  (19,899)
    Prepaid expenses
  (97,139)
  13,118 
    Other current assets
  75,064 
  (2,824)
    Deposits
  (208)
  (106)
    Accounts payable, accrued and other liabilities
  511,619 
  185,093 
    Deferred revenue
  (3,040)
  7,670 
Net cash provided by operating activities
  936,027 
  383,475 
 
    
    
INVESTING ACTIVITIES:
    
    
 
    
    
    Purchase of fixed assets
  (31,059)
  (33,292)
    Purchase of intangible assets
  (9,999)
  (17,128)
    Capitalized application software
  (489,307)
  (335,548)
Net cash used in investing activities
  (530,365)
  (385,968)
 
    
    
FINANCING ACTIVITIES:
    
    
 
    
    
    Repayment of finance lease obligations
  (8,073)
  (10,216)
Net cash used in financing activities
  (8,073)
  (10,216)
 
    
    
Net increase (decrease) in cash
  397,589 
  (12,709)
 
    
    
Cash and equivalents, beginning of period
  417,910 
  815,487 
 
    
    
Cash and equivalents, end of period
 $815,499 
 $802,778 
 
    
    
 
 
6
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
1.
BASIS OF PRESENTATION
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed consolidated financial statements the Company evaluated subsequent events after the balance sheet date of March 31, 2021 through the filing of this report.
 
As of March 31, 2021, the Company has a working capital deficit of $1,697,654. Our current liabilities include deferred revenue of $541,862. The costs expected to be incurred to realize the deferred revenue in the next 12 months are minimal.
 
The Company has a plan in place for the next 12 months to ensure ongoing expenditures are balanced with the expected growth rate and believes cash on hand and cash generated will be sufficient to fund operations for the next 12 months. However, to implement our business plan may require additional financing. Additional financings may come from future equity or debt offerings that could result in dilution to our stockholders. No assurance can be given that additional financing will be available or that, if it is available, it will be on terms acceptable to us.
 
These financial statements should be read in conjunction with our financial statements and the notes thereto for the fiscal year ended December 31, 2020 contained in our Form 10-K filed with the Securities and Exchange Commission dated March 26, 2021.
 
Risks and Uncertainties
 
We are continuing to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact team members, customers, suppliers, and global markets. While our licensed-based revenue is generally more recurring in nature, the uncertainty caused by the COVID-19 pandemic has led some clients to delay purchasing decisions, product and service implementations or cancel or reduce spending with us. Given the dynamic nature of these circumstances, it is too early to assess the full impact of the COVID-19 pandemic on our ongoing business, results of operations, and overall future financial performance.
 
2.
SIGNIFICANT ACCOUNTING POLICIES
 
a) Nature of operations
 
We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.
 
b) Basis of consolidation
 
The consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.
 
c) Foreign currency translation and transactions
 
The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in earnings in the period in which they occur.
 
 
7
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
d) Allowances for doubtful accounts
 
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $175,000 as of March 31, 2021 and December 31, 2020. Bad debt expense was $19,822 and $70,931 for the three months ended March 31, 2021 and 2020, respectively.
 
e) Accounting Pronouncements
 
Recently Adopted
 
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this Topic 740 on January 1, 2021. The adoption of the new tax standard did not have a material effect on our consolidated financial statements.
 
Not Yet Adopted
 
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which changes the impairment model for most financial assets, including accounts receivable, and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for the Company for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently assessing the timing and impact of adopting ASU 2016-13 on the Company’s consolidated financial statements.
 
Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.
 
3.
REVENUE
 
Disaggregated Revenue
 
The Company provides market data, financial web content solutions and cloud-based applications. Our revenue by type of service consists of the following:
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
Portfolio Management Systems:
 
 
 
 
 
 
   Corporate Quotestream
 $1,454,072 
 $976,917 
   Individual Quotestream
  562,787 
  438,634 
Interactive Content and Data Applications
  1,589,359 
  1,551,033 
Total revenue
 $3,606,218 
 $2,966,584 
 
 
8
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
Deferred Revenue
 
Changes in deferred revenue for the period were as follows:
 
Balance at December 31, 2020
 $544,902 
Revenue recognized in the current period from the amounts in the beginning balance
  (219,903)
New deferrals, net of amounts recognized in the current period
  217,232 
Effects of foreign currency translation
  (369)
Balance at March 31, 2021
 $541,862 
 
Practical Expedients 
 
As permitted under ASU 2014-09 (and related ASUs), unsatisfied performance obligations are not disclosed, as the original expected duration of substantially all of our contracts is one year or less.
 
4.
RELATED PARTIES
 
The Company entered into a five-year office lease with 410734 B.C. Ltd. effective May 1, 2016 for approximately $7,365 per month. David M. Shworan is a control person of 410734 B.C. Ltd. At March 31, 2021 and December 31, 2020, there were no amounts due to 410734 B.C. Ltd.
 
The Company entered into a marketing agreement with Bravenet Web Services, Inc. (“Bravenet”) effective November 28, 2019 for approximately $2,500 per month. David M. Shworan is a control person of Bravenet. At March 31, 2021 and December 31,2020, there was $6,500 and $7,500, respectively, due to Bravenet related to this agreement. As a matter of policy all related party transactions are subject to review and approval by the Company’s Board of Directors.
 
5.
LEASES
 
We have operating leases for corporate offices and finance leases for certain equipment. Our leases have remaining lease terms of 1 year to 5 years. We determine if an arrangement is a lease at inception. Operating lease assets and liabilities are included in operating lease right-of-use assets and operating lease liabilities, respectively, on our consolidated balance sheets. Finance lease assets and liabilities are included in property and equipment and finance lease liabilities, respectively, on our consolidated balance sheets.
 
Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. We elected the short-term lease exception and therefore only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. When determining lease terms, we factor in options to extend or terminate leases when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases we account for the lease and non-lease components as a single lease component.
 
 
9
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
Supplemental balance sheet information related to leases was as follows:
 
 
 
March 31,
2021
 
 
December 31,
2020
 
 
 
 
 
 
 
 
Operating Leases
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating lease right-of-use assets
 $642,470 
 $671,402 
 
    
    
Current portion of operating lease liability
 $151,379 
 $164,843 
Long-term portion of operating lease liability
  474,785 
  504,783 
Total operating lease liability
 $626,164 
 $669,626 
 
    
    
Finance Leases
    
    
 
    
    
Computer equipment on financing lease
 $101,049 
 $101,049 
Less: accumulated depreciation
  96,531 
  85,936 
Property and equipment, net
 $4,518 
 $15,113 
 
    
    
Current portion of finance lease liability
  4,560 
  11,951 
Long-term portion of finance lease liability
  1,426 
  2,108 
Total finance lease liability
 $5,986 
 $14,059 
 
    
    
 
 
 
March 31,
2021
 
 
December 31,
2020
 
 
 
 
 
 
 
 
Weighted Average Remaining Lease Term
 
 
 
 
 
 
    Operating leases
 
4.0 years
 
 
4.1 years
 
    Finance leases
 
1.2 years
 
 
0.9 years
 
Weighted Average Discount Rate
 
 
 
 
 
 
    Operating leases
  9.7%
  9.7%
    Finance leases
  8.2%
  8.8%
 
 
10
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
Maturities of lease liabilities were as follows:
 
 
Year ending December 31,
 
Operating
Leases
 
 
Finance
Leases
 
 
 
 
 
 
 
 
2021 (excluding the three months ended March 31, 2021)
 $156,583 
 $4,073 
2022
  187,609 
  2,157 
2023
  173,279 
  - 
2024
  157,721 
  - 
2025
  84,310 
  - 
Total lease payments
  759,502 
  6,230 
Less imputed interest
  (133,338)
  (244)
Total
 $626,164 
 $5,986 
 
The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:
 
 
 
2021
 
 
2020
 
Operating lease costs:
 
 
 
 
 
 
Operating lease costs
 $65,627 
 $56,956 
Short-term lease costs
  22,403 
  25,499 
Total operating lease costs
 $88,030 
 $82,455 
 
    
    
Finance lease costs:
    
    
Amortization
 $10,595 
 $8,763 
Interest
  142 
  949 
Total finance lease cost
 $10,737 
 $9,712 
 
Supplemental cash flow information for the three months ended March 31, 2021 and 2020 related to leases was as follows:
 
 
 
2021
 
 
2020
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
 
 
    Operating cash flows from operating leases
 $67,563 
 $54,774 
    Operating cash flows from finance leases
  142 
  949 
 
There were no additional right of use assets obtained in exchange for lease obligations for the three months ended March 31, 2021 and 2020.
 
 
11
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
6.
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
 
a) Redeemable Convertible Preferred Stock
 
We are authorized to issue up to 10,000,000 non-designated preferred shares at the Board of Directors’ discretion.
 
A total of 550,000 shares of the Company’s Preferred Stock are designated as “Series A Redeemable Convertible Preferred Stock.” The Series A Redeemable Convertible Preferred Stock has no dividend or voting rights.
 
At March 31, 2021, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding. No shares of Series A Redeemable Convertible Preferred Stock were issued or redeemed during the three months ended March 31, 2021 and 2020.
 
Redemption Rights
 
Holders of Series A Redeemable Convertible Preferred Stock shall have the right to convert their shares into shares of common stock at the rate of 83.33 shares of common stock for one share of Series A Redeemable Convertible Preferred Stock, at any time following the date the closing price of a share of common stock on a securities exchange or actively traded over-the-counter market has exceeded $0.30 for ninety (90) consecutive trading days. The conversion rights are subject to the availability of authorized but unissued shares of common stock.
 
In addition, 1,000 Series A Redeemable Convertible Preferred Stock may be redeemed at the holder’s option at the liquidation value of $25 per share if the cash balance of the Company as reported at the end of each fiscal quarter exceeds $400,000.
 
In accordance with ASC 480-10-S99, because a limited number of Series A Redeemable Convertible Preferred Stock may be redeemed at the holder’s option if the above criteria are met, it was classified as mezzanine equity and not permanent equity.
 
In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, before any distribution or payment is made to any holders of any shares of common stock, the holders of shares of Series A Redeemable Convertible Preferred Stock shall be entitled to be paid first out of the assets of the Corporation available for distribution to holders of the Company’s capital stock whether such assets are capital, surplus, or earnings, an amount equal to $25.00 per share of Series A Redeemable Convertible Preferred Stock.
 
b) Common stock
 
No shares of common stock were issued during the three months ended March 31, 2021 and 2020.
 
 
12
 
 
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
c) Stock Options and Warrants
 
FASB ASC 718, Stock Compensation, requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized.
 
Total stock-based compensation expense, related to all of the Company’s stock-based awards, recognized for the three months ended March 31, 2021 and 2020 was comprised as follows:
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
 
 
 
 
 
 
 
Sales and marketing
 $4,239 
 $9,291 
General and administrative
  2,700 
  2,700 
Total stock-based compensation expense
 $6,939 
 $11,991 
 
Common Stock Options and Warrants
 
The following table summarizes our common stock option and warrant activity for the three months ended March 31, 2021:
 
 
 
Common Stock Options
and Warrants
 
 
Weighted-Average Grant Date Exercise Price
 
 
 
 
 
 
 
 
Outstanding at January 1, 2021
  26,372,803 
 $0.06 
Forfeited during the period
  (600,000)
 $0.04 
Outstanding at March 31, 2021
  25,772,803 
 $0.06 
 
The following table summarizes our non-vested common stock option and warrant activity for the three months ended March 31, 2021:
 
 
 
Common Stock Options
and Warrants
 
 
Weighted-Average Grant Date Exercise Price
 
 
 
 
 
 
 
 
Non-vested at January 1, 2021
  3,700,000 
 $0.08 
Vested during the period
  (425,000)
 $0.04 
Non-vested at March 31, 2021
  3,275,000 
 $0.09 
 
 
13
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding at March 31, 2021:
 
 
 
 
Common Stock Options and Warrants Outstanding
 

Common Stock Options and Warrants Exercisable
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
 
 
Average
 
Weighted
 
 
 
Weighted
 
 
 
 
Remaining
 
Average
 
 
 
Average
 
 
Number
 
Contractual
 
Exercise
 
Number
 
Exercise
 
 
Outstanding
 
Life (Years)
 
Price
 
Exercisable
 
Price
 
 
 
 
 
 
 
 
 
 
 
$0.03-0.11
 
25,772,803
 
8.2
 
$0.06
 
22,497,803
 
$0.05
 
At March 31, 2021, there was $20,817 of unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock which is expected to be recognized over a weighted-average period of 1.6 years.
 
All stock options and warrants to purchase common stock have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant. At March 31, 2021, the aggregate intrinsic value of options and warrants outstanding was $4,075,659. The aggregate intrinsic value of options and warrants exercisable was $3,661,634. The intrinsic value of stock options and warrants are calculated as the amount by which the market price of our common stock exceeds the exercise price of the option or warrant.
 
Preferred Stock Warrants
 
Pursuant to the December 28, 2017 Compensation Agreement with David M. Shworan, the President and Chief Executive Officer of QuoteMedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc., the Company issued Mr. Shworan warrants to purchase shares of Series A Redeemable Convertible Preferred Stock (“Compensation Preferred Stock Warrants”) in lieu of a cash salary. From the period December 28, 2017 to December 31, 2019 the Company issued a total of 31,250 Compensation Preferred Stock Warrants at an exercise price equal to $1.00 per share.
 
Also pursuant to the Compensation Agreement with Mr. Shworan, on December 28, 2017 the Company issued Mr. Shworan warrants to purchase up to 382,243 shares of Series A Redeemable Convertible Preferred Stock at an exercise price equal to $1.00 per share (“Liquidity Preferred Stock Warrant”). The Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event as defined in the Company’s Certificate of Designation of Series A Redeemable Convertible Preferred Stock. The probability of the liquidity event performance condition is not currently determinable or probable; therefore, no compensation expense has been recognized as of March 31, 2021. The probability is re-evaluated each reporting period. As of March 31, 2021, there was $9,173,832 in unrecognized stock-based compensation expense related to these Liquidity Preferred Stock Warrants. Since the Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event which is currently determined not to be probable, we are also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized.
 
As of March 31, 2021, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 26.8 years. As of March 31, 2021, 31,250 preferred stock warrants were exercisable. No preferred stock warrants were exercised for the three months ended March 31, 2021 and 2020.
 
14
QUOTEMEDIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
 
 
7.
EARNINGS PER SHARE
 
Basic net income per share is computed by dividing net income during the period by the weighted-average number of common shares outstanding, excluding the dilutive effects of common stock equivalents. Common stock equivalents include redeemable convertible preferred stock, stock options and warrants. Diluted net income per share is computed by dividing net income by the weighted-average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated using the treasury stock method by adding to the weighted shares outstanding any potential shares of common stock from outstanding redeemable convertible preferred stock, stock options and warrants that are in-the-money. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per share results in the same value. The calculations for basic and diluted net income per share for the three months ended March 31, 2021 and 2020 are as follows:
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
 
 
 
 
 
 
 
Net income (loss)
 $23,087 
 $(117,325)
 
    
    
Weighted average common shares used to calculate net income per share
  90,477,798 
  90,477,798 
Warrants to purchase redeemable convertible preferred stock
  2,499,900 
  - 
Redeemable convertible preferred stock
  10,306,671 
  - 
Stock options and warrants to purchase common stock
  16,526,328 
  - 
Weighted average common shares used to calculate diluted net income per share
  119,810,697 
  90,477,798 
 
    
    
Net income (loss) per share – basic
 $0.00 
 $(0.00)
Net income (loss) per share – diluted
 $0.00 
 $(0.00)
 
The number of shares of potentially dilutive common stock related to options, warrants and redeemable convertible preferred stock that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three months ended March 31, 2021 and 2020 are shown below:
 
 
 
Three months ended March 31,
 
 
 
2021
 
 
2020
 
 
 
 
 
 
 
 
Warrants to purchase redeemable convertible preferred stock
  - 
  2,499,900 
Redeemable convertible preferred stock
  - 
  10,306,671 
Stock options and warrants to purchase common stock
  - 
  14,751,112 
Total potential common shares excluded
  - 
  27,557,683 
 
8.
PAYCHECK PROTECTION PROGRAM
 
On May 4, 2020, the Company received a $133,257 loan under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides qualifying businesses with these proceeds for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The proceeds and accrued interest are forgivable after twenty-four weeks, known as the covered period, as long as the borrower uses the proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The PPP loan was forgiven in its entirety on February 19, 2021. In accordance with ASC 470, Debt, the forgiveness of the loan was recognized as other income on our consolidated statements of operations.
 
 
15
 
 
ITEM 2. Management’s Discussion and Analysis
 
The following discussion should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. We caution readers regarding certain forward looking statements in the following discussion, elsewhere in this report, and in any other statements, made by, or on behalf of our company, whether or not in future filings with the Securities and Exchange Commission. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, our company. Uncertainties and contingencies that might cause such differences include those risk factors disclosed in our annual report on Form 10-K for the year ended December 31, 2020 and other reports filed from time to time with the SEC.
 
We disclaim any obligation to update forward-looking statements. All references to “we”, “our”, “us”, or “QuoteMedia” refer to QuoteMedia, Inc., and its predecessors, operating divisions, and subsidiaries.
 
This report should be read in conjunction with our Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission.
 
Overview
 
We are a developer of financial software and a distributor of market data and research information to online brokerages, clearing firms, banks, media properties, public companies and financial service corporations worldwide. Through the aggregation of information from many direct data, news, and research sources; we offer a comprehensive range of solutions for all market-related information provisioning requirements.
 
We have three general product lines: Interactive Content and Data Applications, Data Feed Services, and Portfolio Management Systems. For financial reporting purposes, our product categories share similar economic characteristics and share costs; therefore, they are combined into one reporting segment.
 
Our Interactive Content and Data Applications consist of a suite of software applications that provide publicly traded company and market information to corporate clients via the Internet. Products include stock market quotes, fundamentals, historical and interactive charts, company news, filings, option chains, insider transactions, corporate financials, corporate profiles, screeners, market research information, investor relations provisions, level II, watch lists, and real-time quotes. All of our content solutions are completely customizable and embed directly into client Web pages for seamless integration with existing content. We are continuing to develop and launch new modules of QModTM, our new proprietary Web delivery system. QMod was created for secure market data provisioning as well as ease of integration and unlimited customization. Additionally, QMod delivers search engine optimized (SEO) ready responsive content designed to adapt on the fly when rendered on mobile devices or standard Web pages – automatically resizing and reformatting to fit the device on which it is displayed.
 
Our Data Feed Services consist of raw streaming real-time market data delivered over the Internet or via dedicated telecommunication lines, and supplemental fundamental, historical, and analytical data, keyed to the same symbology, which provides a complete market data solution offered to our customers. Currently, QuoteMedia’s Data Feed services include complete coverage of North American exchanges and over 70 exchanges worldwide. For financial reporting purposes, Data Feed Services revenue is included in the Interactive Content and Data Applications revenue totals.
 
Our Portfolio Management Systems consist of QuotestreamTM, Quotestream Mobile, Quotestream Professional, and our Web Portfolio Management systems. Quotestream Desktop is an Internet-based streaming online portfolio management system that delivers real-time and delayed market data to both consumer and corporate markets. Quotestream has been designed for syndication and private branding by brokerage, banking, and Web portal companies. Quotestream’s enhanced features and functionality – most notably tick-by-tick true streaming data, significantly enhanced charting features, and a broad range of additional research and analytical content and functionality – offer a professional-level experience to nonprofessional users.
 
 
16
 
 
Quotestream Professional is specifically designed for use by financial services professionals, offering exceptional coverage and functionality at extremely aggressive pricing. Quotestream Professional features broad market coverage, reliability, complete flexibility, ultra-low-latency tick-by-tick data, as well as completely customizable screens, advanced charting, comprehensive technical analysis, news and research data.
 
Quotestream Mobile is a true companion product to the Quotestream desktop products (Quotestream and Quotestream Professional) – any changes made to portfolios in either the desktop or mobile application are automatically reflected in the other.
 
A key feature of QuoteMedia’s business model is that all of our product lines generate recurring monthly licensing revenue from each client. Contracts to license Quotestream to our corporate clients, for example, typically have a term of one to three years and are automatically renewed unless notice is given at least 90 days prior to the expiration of the current license term. We also generate Quotestream revenue through individual end-user licenses on a monthly or annual subscription fee basis. Interactive Content and Data Applications and Market Data Feeds are licensed for a monthly, quarterly, annual, or semi-annual subscription fee. Contracts to license our Financial Data Products and Data Feeds typically have a term of one to three years and are automatically renewed unless notice is given 90 days prior to the expiration of the contract term.
 
Business Environment and Trends
 
The global financial markets experienced extreme volatility and disruption over the past year due to COVID-19 pandemic. While global financial markets are recovering, risk still exists therefore we will continue to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact team members, customers, suppliers, and global markets. In Canada, our employees are subject to restrictions on their physical movements therefore most of our workforce in Canada continue to work remotely.
 
While our licensed-based revenue is generally more recurring in nature, the uncertainty caused by the COVID-19 pandemic has led some clients to delay purchasing decisions, product and service implementations or cancel or reduce spending with us. While the impact of COVID-19 appears to be diminishing, we are focused on maintaining a strong balance sheet and liquidity position and will continue to closely monitor the potential impact of COVID-19 and adjust our response going forward as circumstances dictate.
 
On May 4, 2020, the Company received a $133,257 loan under the Paycheck Protection Program (“PPP”). On February 19, 2021, the Company received forgiveness from the SBA for its PPP loan in its entirety. The Company recognized the forgiveness of the loan as other income on our consolidated statements of operations. See Financial Statement Note 8 – Paycheck Protection Program.
 
Our revenue grew 22% when comparing the quarter ended March 31, 2021 to the comparative 2020 period. Based on clients currently under contract, we expect to maintain similar revenue growth for the remainder of 2021.
 
Plan of Operation
 
For the remainder of 2021 we plan to continue to expand our product lines and improve our infrastructure. We plan to continue to add more features and data to our existing products and release newer versions with improved performance and flexibility for client integration.
 
We will maintain our focus on marketing Quotestream for deployments by brokerage firms to their retail clients and continue our expansion into the investment professional market with Quotestream Professional. We also plan to continue the growth of our Data Feed Services client base, particularly through the addition of major new international data feed coverage, as well as new data delivery products.
 
QuoteMedia will continue to focus on increasing the sales of its Interactive Content and Data Applications, particularly in the context of large-scale enterprise deployments encompassing solutions ranging across several product lines. QMod is a major component of this strategy, given the broad demand for mobile-ready, SEO-friendly Web content.
 
Important development projects for the remainder of 2021 include broad expansion of data and news coverage, including the addition of a wide array of international exchange data and news and video feeds, expansion of fixed-income coverage, and the introduction of several new and upgraded market information products.
 
 
17
 
 
New deployments of our trade integration capabilities, which allow our Quotestream applications to interact with our brokerage clients’ back-end trade execution and reporting platforms (enabling on-the-fly trade execution and tracking of holdings) are underway and will continue to be a priority in the coming year.
 
We are also creating new proprietary data sets, analytics, and scoring mechanisms. We are now aggregating data direct from the sources to produce data sets that are proprietary to QuoteMedia. This allows us to offer our clients new data products and lower our product costs structure as we replace some of our existing data providers with our own lower cost data.
 
Opportunistically, efforts will be made to evaluate and pursue the development of additional new products that may eventually be commercialized by our company. Although not currently anticipated, we may require additional capital to execute our proposed plan of operation. There can be no assurance that such additional capital will be available to our company on commercially reasonable terms or at all.
 
Our future performance will be subject to a number of business factors, including those beyond our control; such as a continuation of market uncertainty and evolving industry needs and preferences, as well as the level of competition and our ability to continue to successfully market our products and technology. There can be no assurance that we will be able to successfully implement our marketing strategy, continue our revenue growth, or achieve profitable operations.
 
Critical Accounting Policies and Estimates
 
In the 2020 Annual Report, we disclose our critical accounting policies and estimates upon which our financial statements are derived. There have been no material changes to these policies since December 31,2020 that are not included in Note 3 of the accompanying consolidated financial statements for the three months ended March 31, 2021. Readers are encouraged to read the 2020 Annual Report in conjunction
 
Results of Operations
 
Revenue
 
Three months ended March 31,
 
2021
 
 
2020
 
 
Change ($)
 
 
Change (%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Corporate Quotestream
 $1,454,072 
 $976,917 
 $477,155 
  49%
   Individual Quotestream
  562,787 
  438,634 
  124,153 
  28%
Total portfolio management systems
  2,016,859 
  1,415,551 
  601,308 
  42%
 
    
    
    
    
Interactive content and data applications
  1,589,359 
  1,551,033 
  38,326 
  2%
 
    
    
    
    
Total subscription revenue
 $3,606,218 
 $2,966,584 
 $639,634 
  22%
 
Total subscription revenue increased 22% when comparing the three months ended March 31, 2021 and 2020.
 
Our total Portfolio Management System revenue increased by 42% when comparing the three months ended March 31, 2021 and 2020, due to increases in both Corporate Quotestream and Individual Quotestream revenue.
 
Corporate Quotestream revenue increased 49% for the three months ended March 31, 2021 from the comparative period in 2020 primarily due to new contracts signed since the comparative period and an increase in the number of subscribers for existing clients. The increase is attributable in part to improvements and upgrades made to our Portfolio Management products as the additional data offerings and improved functionality have contributed to the increase in our average revenue per customer. We have also been able to take advantage of new opportunities arising from the economic downturn related to COVID-19 as financial sector firms are looking for more efficient and cost-effective solutions to their data and technology needs. We also believe there has been an increase in the need for our services for customers working remotely during the pandemic, a trend we expect to continue for the foreseeable future.
 
Individual Quotestream revenue increased 28% for the three months ended March 31, 2021 from the comparative period in 2020. There was an increase in total users, which can be attributed to new marketing efforts initiated since the comparative period and more customers working remotely due to COVID-19.
 
Interactive Content and Data Application revenue increased 2% when comparing the three-months ended March 31, 2021 and 2020, mainly attributable to an increase in the average revenue per client. The launch of new products and the expansion of our data coverage have allowed us to attract new, larger clients to replace some of our smaller clients lost due to the economic hardship related to COVID-19.
 
 
18
 
 
Cost of Revenue and Gross Profit Summary
 
Three months ended March 31,
 
2021
 
 
2020
 
 
Change ($)
 
 
Change (%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
 $2,063,640 
 $1,499,484 
 $564,156 
  38%
Gross profit
 $1,542,578 
 $1,467,100 
 $75,478 
  5%
Gross margin %
  43%
  49%
    
    
 
Our cost of revenue consists of fixed and variable stock exchange fees and data feed provisioning costs. Cost of revenue also includes amortization of capitalized internal-use software costs. We capitalize the costs associated with developing new products during the application development stage.
 
We launched a major growth initiative in early 2020, investing in infrastructure, new product development, data collection, and the expansion of our global market coverage. As a result, our cost of revenue increased 38% for the three months ended March 31, 2021 from the comparative period in 2020. We incurred increased stock exchange fees related to increased usage and new market data added since the comparative period, and increased amortization expense associated with internally developed application software.
 
Overall, the cost of revenue increased as a percentage of sales, as evidenced by our gross margin percentage that decreased to 43% for the three months ended March 31, 2021 from 49% in the comparative period. Our gross margins have also been impacted by our revenue mix, as our Portfolio Management System revenue has been growing at a higher rate than our Interactive Content revenue which typically has higher gross margins.
 
Operating Expenses Summary
 
Three months ended March 31,
 
2021
 
 
2020
 
 
Change ($)
 
 
Change (%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 $638,864 
 $517,480 
 $121,384 
  23%
General and administrative
  607,240 
  650,053 
  (42,813)
  (7%)
Software development
  407,288 
  425,827 
  (18,539)
  (4%)
Total operating expenses
 $1,653,392 
 $1,593,360 
 $60,032 
  4%
 
Sales and Marketing
 
Sales and marketing consist primarily of sales and customer service salaries, investor relations, travel and advertising expenses. Sales and marketing expenses increased by 23% when comparing the three months ended March 31, 2021 and 2020. The increase is a result of additional sales personnel hired to support our growth initiative.
 
General and Administrative
 
General and administrative expenses consist primarily of salaries expense, office rent, insurance premiums, and professional fees. General and administrative expenses decreased 7% when comparing the three months ended March 31, 2021 and 2020. The decrease is primarily driven by a decrease in bad debts from the comparative period. Bad debts in the comparative period were abnormally high due to the impact of COVID-19.
 
Software Development
 
Software development expenses consist primarily of costs associated with the design, programming, and testing of our software applications during the preliminary project stage. Software development expenses also include costs incurred to maintain our software applications.
 
Software development expenses decreased 4% for the three months ended March 31, 2021 when compared to the same period in 2020, primarily due to a higher capitalization rate. We capitalized $489,306 of development costs for the three months ended March 31, 2021 compared to $335,549 in the same period in 2020. These costs relate to the development of application software used by subscribers to access, manage, and analyze information in our databases. Capitalized costs associated with application software are amortized over their estimated economic life of three years.
 
 
19
 
 
Other Income and (Expense) Summary
 
Three months ended March 31,
 
2021
 
 
2020
 
 
 
 
 
 
 
 
Foreign exchange gain (loss)
 $2,448 
 $11,206 
Interest expense
  (1,008)
  (1,527)
Other income
  133,257 
  - 
Total other income and (expenses), net
 $134,697 
 $9,679 
 
Foreign Exchange Gain (Loss)
 
We incurred foreign exchange gains of $2,448 and $11,206 for the three months ended March 31, 2021 and 2020, respectively. Foreign exchange gains and losses arise from the re-measurement of Canadian dollar monetary assets and liabilities into U.S. dollars and from exchange rate fluctuations between transaction and settlement dates for foreign currency denominated transactions.
 
Interest Expense
 
Interest expense relates primarily to the interest expense associated with our finance leases and was relatively unchanged from the comparative period. Interest expense of $1,008 was incurred for the three months ended March 31, 2021, compared to $1,527 incurred in the same 2020 period.
 
Other Income
 
Other income was $133,257 for the three months ended March 31, 2021. On May 4, 2020, the Company received a $133,257 loan under the Paycheck Protection Program (“PPP”). The PPP loan was forgiven in its entirety on February 19, 2021 and was recognized as other income. No other income was recognized in the comparative 2020 period. See Financial Statement Note 8 “Paycheck Protection Program”.
 
Provision for Income Taxes
 
For the three months ended March 31, 2021, the Company recorded Canadian income tax expense of $796 compared to $744 in the comparative period in 2020.
 
Net Income (Loss) for the Period
 
As a result of the foregoing, our net income for the three months ended March 31, 2021 was $23,087 compared to net loss of $117,325 for the three months ended March 31, 2020. Basic and diluted earnings per share were $0.00 for the three months ended March 31, 2021, and $(0.00) for the three months ended March 31, 2020.
 
 
20
 
 
Liquidity and Capital Resources
 
Our cash totaled $815,499 at March 31, 2021, as compared with $417,910 at December 31, 2020, an increase of $397,589. Net cash of $936,027 was provided by operations for the three months ended March 31, 2021, primarily due to the net income during the period adjusted for non-cash charges and the increase in accounts payable. Net cash used in investing activities for the three months ended March 31, 2021 was $530,365 resulting primarily from capitalized application software costs. Cash used in financing activities for the three months ended March 31, 2021 was $8,073 related to the repayment of capital lease financing.
 
We typically operate with a working capital deficit. As of March 31, 2021 our working capital deficit is $1,697,654, however current liabilities include $541,862 in deferred revenue and the expected costs necessary to realize the deferred revenue are minimal. If circumstances dictate, we have the flexibility to reduce development spending to maintain a strong liquidity position.
 
Based on the factors discussed above, we believe that our cash on hand and cash generated from operations will be sufficient to fund our current operations for at least the next 12 months through May 2022. However, to implement our business plan may require additional financing. Additional financings may come from future equity or debt offerings that could result in dilution to our stockholders. Further, current adverse capital and credit market conditions could limit our access to capital. We may be unable to raise capital or bear an unattractive cost of capital that could reduce our financial flexibility.
 
Our long-term liquidity requirements will depend on many factors, including the rate at which we expand our business and whether we do so internally or through acquisitions. To the extent that the funds generated from operations are insufficient to fund our activities in the long term, we may be required to raise additional funds through public or private financing. No assurance can be given that additional financing will be available or that, if it is available, it will be on terms acceptable to us.
 
Preferred Stock Redemption Rights
 
At March 31, 2021, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding and 1,000 shares may be redeemed at the holder’s option at the liquidation value of $25 per share if the cash balance of the Company as reported at the end of each fiscal quarter exceeds $400,000. See Financial Statement Note 6 a) “Preferred shares”.
 
Foreign Exchange Risk
 
Approximately 28% of our consolidated revenue and 35% percent of our consolidated expenses are denominated in Canadian dollars; therefore, our consolidated cashflow may be impacted by foreign exchange fluctuations.
 
Off-Balance Sheet Arrangements
 
At March 31, 2021 and December 31, 2020, we did not have any unconsolidated entities or financial partnerships, or other off-balance sheet arrangements.
 
ITEM 4. Controls and Procedures
 
Under the supervision and with the participation of our Chairman of the Board and Chairman of the Audit Committee, Chief Executive Officer and Chief Financial Officer, we completed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) to the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, we and our management have concluded that our disclosure controls and procedures at March 31, 2021 were effective at the reasonable assurance level to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and are designed to ensure that information required to be disclosed by us in these reports is accumulated and communicated to our management, as appropriate to allow timely decisions regarding required disclosures. In the three months ended March 31, 2021, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to affect, our internal control over financial reporting.
 
We will consider further actions and continue to evaluate the effectiveness of our disclosure controls and internal controls and procedures on an ongoing basis, taking corrective action as appropriate. Management does not expect that disclosure controls and procedures or internal controls can prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable and not absolute assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. While management believes that its disclosure controls and procedures provide reasonable assurance that fraud can be detected and prevented, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
 
 
 
21
 
 
PART II - OTHER INFORMATION
 
 
ITEM 6.
EXHIBITS
 
 
ExhibitNumber
Description of Exhibit
 
 
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended.
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 
22
 
 
SIGNATURES
 
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
QUOTEMEDIA, INC.
 
By:
/s/ Keith J. Randall
 
 
Keith J. Randall
 
 
Chief Executive Officer and Chief Financial Officer
 
 
(Duly authorized officer and principal financial officer)
 
 
Dated: May 13, 2021
 
 
23
EX-31.1 2 qmci_e311.htm CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 qmci_e311
 
Exhibit 31.1
CERTIFICATION
 
I, Keith J. Randall, certify that:
 
1.            
I have reviewed this Quarterly Report on Form 10-Q of Quotemedia, Inc.;
 
2. 
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. 
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. 
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)            
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b)            
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c)            
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d)            
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5. 
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a)            
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b)            
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: May 13, 2021
By: /s/ Keith J. Randall
 
Keith J. Randall
Chief Executive Officer
 
EX-31.2 3 qmci_ex312.htm CERTIFICATION PURSUANT TO RULE 13A-14(A)/15D-14(A) CERTIFICATIONS SECTION 302 OF THE SARBANES-OXLY ACT OF 2002 qmci_ex312
 
Exhibit 31.2
CERTIFICATION
 
I, Keith J. Randall, certify that:
 
1.            
I have reviewed this Quarterly Report on Form 10-Q of Quotemedia, Inc.;
 
2. 
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. 
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. 
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)            
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b)            
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c)            
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d)            
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5. 
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
a)            
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
b)            
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: May 13, 2021
By: /s/ Keith J. Randall
 
Keith J. Randall
Chief Financial Officer
 
EX-32.1 4 qmci_ex321.htm CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 qmci_ex321
 
Exhibit 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report on Form 10-Q of Quotemedia, Inc. (the "Company") for the quarterly period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Keith J. Randall, Chief Executive Officer of the Company, certify, to my best knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
 
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
 
By: /s/ Keith J. Randall
____________________
 
Keith J. Randall
Chief Executive Officer
May 13, 2021
 
EX-32.2 5 qmci_ex322.htm CERTIFICATE PURSUANT TO SECTION 18 U.S.C. PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 qmci_ex322
 
Exhibit 32.2
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report on Form 10-Q of Quotemedia, Inc. (the "Company") for the quarterly period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Keith J. Randall, Chief Financial Officer of the Company, certify, to my best knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
 
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
 
By: /s/ Keith J. Randall
____________________
Keith J. Randall
Chief Financial Officer
May 14, 2021
 
 
EX-101.INS 6 qmci-20210331.xml XBRL INSTANCE DOCUMENT 0001101433 2021-01-01 2021-03-31 0001101433 2021-03-31 0001101433 2020-01-01 2020-03-31 0001101433 2020-12-31 0001101433 us-gaap:RedeemableConvertiblePreferredStockMember 2020-12-31 0001101433 us-gaap:RedeemableConvertiblePreferredStockMember 2021-03-31 0001101433 QMCI:CommonStockOptionsAndWarrantsMember 2021-01-01 2021-03-31 0001101433 QMCI:CommonStockOptionsAndWarrantsMember 2021-03-31 0001101433 2019-12-31 0001101433 2020-03-31 0001101433 QMCI:CorporateQuotestreamMember 2021-01-01 2021-03-31 0001101433 QMCI:CorporateQuotestreamMember 2020-01-01 2020-03-31 0001101433 QMCI:IndividualQuotestreamMember 2021-01-01 2021-03-31 0001101433 QMCI:IndividualQuotestreamMember 2020-01-01 2020-03-31 0001101433 QMCI:InteractiveContentAndDataApplicationsMember 2021-01-01 2021-03-31 0001101433 QMCI:InteractiveContentAndDataApplicationsMember 2020-01-01 2020-03-31 0001101433 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001101433 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0001101433 us-gaap:RedeemableConvertiblePreferredStockMember 2021-01-01 2021-03-31 0001101433 us-gaap:RedeemableConvertiblePreferredStockMember 2020-01-01 2020-03-31 0001101433 QMCI:CommonStockOptionsAndWarrantsMember 2021-01-01 2021-03-31 0001101433 QMCI:CommonStockOptionsAndWarrantsMember 2020-12-31 0001101433 QMCI:CommonStockOptionsAndWarrantsMember 2021-03-31 0001101433 us-gaap:PreferredStockMember 2020-12-31 0001101433 us-gaap:PreferredStockMember 2021-03-31 0001101433 us-gaap:PreferredStockMember 2020-03-31 0001101433 us-gaap:CommonStockMember 2020-12-31 0001101433 us-gaap:CommonStockMember 2021-03-31 0001101433 us-gaap:CommonStockMember 2020-03-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001101433 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001101433 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001101433 us-gaap:RetainedEarningsMember 2020-12-31 0001101433 us-gaap:RetainedEarningsMember 2021-03-31 0001101433 us-gaap:RetainedEarningsMember 2020-03-31 0001101433 us-gaap:SellingAndMarketingExpenseMember 2021-01-01 2021-03-31 0001101433 us-gaap:SellingAndMarketingExpenseMember 2020-01-01 2020-03-31 0001101433 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-03-31 0001101433 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-03-31 0001101433 QMCI:WarrantsToPurchaseRedeemableConvertiblePreferredStockMember 2021-01-01 2021-03-31 0001101433 QMCI:WarrantsToPurchaseRedeemableConvertiblePreferredStockMember 2020-01-01 2020-03-31 0001101433 us-gaap:PreferredStockMember 2019-12-31 0001101433 us-gaap:CommonStockMember 2019-12-31 0001101433 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001101433 us-gaap:RetainedEarningsMember 2019-12-31 0001101433 2021-05-03 0001101433 QMCI:PreferredStockWarrantsMember 2021-03-31 0001101433 QMCI:NonVestedMember QMCI:CommonStockOptionsAndWarrantsMember 2021-01-01 2021-03-31 0001101433 QMCI:NonVestedMember QMCI:CommonStockOptionsAndWarrantsMember 2020-12-31 0001101433 QMCI:NonVestedMember QMCI:CommonStockOptionsAndWarrantsMember 2021-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure QUOTEMEDIA INC 0001101433 10-Q 2021-03-31 false --12-31 Yes Non-accelerated Filer false true false Q1 2021 Yes NV 0-28599 90477798 1553037 1338547 38762 113826 205616 108477 493160 698334 815499 417910 642470 671402 70196 61914 110000 110000 2929832 2755537 16094 15886 5321629 4953286 3250691 2748437 4560 11951 151379 164843 541862 544902 2552890 2026741 1426 2108 474785 504783 0 133257 2983857 2983857 -1389130 -1419156 -810704 -916038 2983857 2983857 2983857 90479 90479 90479 19605883 19612822 19580002 -21115518 -21092431 -20586519 2983857 90479 19568011 -20469194 -21092431 -21115518 19612822 19605883 90479 90479 5321629 4953286 0.001 0.001 550000 550000 123685 123685 .001 .001 150000000 150000000 90477798 90477798 90477798 90477798 1542578 1467100 2063640 1499484 3606218 2966584 1454072 976917 562787 438634 1589359 1551033 1653392 1593360 407288 425827 607240 650053 638864 517480 -110814 -126260 134697 9679 133257 0 1008 1527 2448 11206 23087 -117325 23087 -117325 796 744 23883 -116581 0 -0.00 0 -0.00 119810697 90477798 90477798 90477798 123685 123685 123685 90477798 90477798 90477798 123685 90477798 6939 11991 6939 11991 -133257 0 6939 11991 4239 9291 2700 2700 347788 305757 936027 383475 -3040 7670 511619 185093 208 106 -75064 2824 97139 -13118 -205174 19899 -530365 -385968 489307 335548 9999 17128 31059 33292 -8073 -10216 8073 10216 815499 417910 815487 802778 397589 -12709 <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the generally accepted accounting principles for interim financial statements and instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for a full year. In connection with the preparation of the condensed consolidated financial statements the Company evaluated subsequent events after the balance sheet date of March 31, 2021 through the filing of this report.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2021, the Company has a working capital deficit of $1,697,654. Our current liabilities include deferred revenue of $541,862. The costs expected to be incurred to realize the deferred revenue in the next 12 months are minimal.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has a plan in place for the next 12 months to ensure ongoing expenditures are balanced with the expected growth rate and believes cash on hand and cash generated will be sufficient to fund operations for the next 12 months. However, to implement our business plan may require additional financing. Additional financings may come from future equity or debt offerings that could result in dilution to our stockholders. No assurance can be given that additional financing will be available or that, if it is available, it will be on terms acceptable to us.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These financial statements should be read in conjunction with our financial statements and the notes thereto for the fiscal year ended December 31, 2020 contained in our Form 10-K filed with the Securities and Exchange Commission dated March 26, 2021.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Risks and Uncertainties</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are continuing to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact team members, customers, suppliers, and global markets. While our licensed-based revenue is generally more recurring in nature, the uncertainty caused by the COVID-19 pandemic has led some clients to delay purchasing decisions, product and service implementations or cancel or reduce spending with us. Given the dynamic nature of these circumstances, it is too early to assess the full impact of the COVID-19 pandemic on our ongoing business, results of operations, and overall future financial performance.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>a) Nature of operations</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>b) Basis of consolidation</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>c) Foreign currency translation and transactions</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in earnings in the period in which they occur.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>d) Allowances for doubtful accounts</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company&#8217;s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $175,000 as of March 31, 2021 and December 31, 2020. Bad debt expense was $19,822 and $70,931 for the three months ended March 31, 2021 and 2020, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>e) Accounting Pronouncements</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Recently Adopted</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this Topic 740 on January 1, 2021. The adoption of the new tax standard did not have a material effect on our consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Not Yet Adopted</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which changes the impairment model for most financial assets, including accounts receivable, and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for the Company for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently assessing the timing and impact of adopting ASU 2016-13 on the Company&#8217;s consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#8217;s consolidated financial statements upon adoption.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Disaggregated Revenue</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company provides market data, financial web content solutions and cloud-based applications. Our revenue by type of service consists of the following:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Portfolio Management Systems:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">&#160;&#160;&#160;Corporate Quotestream</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,454,072</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">976,917</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;Individual Quotestream</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">562,787</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">438,634</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Interactive Content and Data Applications</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,589,359</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,551,033</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total revenue</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,606,218</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,966,584</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Deferred Revenue</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Changes in deferred revenue for the period were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%"><font style="font-size: 8pt">Balance at December 31, 2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">544,902</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Revenue recognized in the current period from the amounts in the beginning balance</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(219,903</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">New deferrals, net of amounts recognized in the current period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">217,232</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Effects of foreign currency translation</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(369</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">541,862</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Practical Expedients<font style="color: #9D1B11">&#160;</font></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As permitted under ASU 2014-09 (and related ASUs), unsatisfied performance obligations are not disclosed, as the original expected duration of substantially all of our contracts is one year or less.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company entered into a five-year office lease with 410734 B.C. Ltd. effective May 1, 2016 for approximately $7,365 per month. David M. Shworan is a control person of 410734 B.C. Ltd. At March 31, 2021 and December 31, 2020, there were no amounts due to 410734 B.C. Ltd.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company entered into a marketing agreement with Bravenet Web Services, Inc. (&#8220;Bravenet&#8221;) effective November 28, 2019 for approximately $2,500 per month. David M. Shworan is a control person of Bravenet. At March 31, 2021 and December 31,2020, there was $6,500 and $7,500, respectively, due to Bravenet related to this agreement. As a matter of policy all related party transactions are subject to review and approval by the Company&#8217;s Board of Directors.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have operating leases for corporate offices and finance leases for certain equipment. Our leases have remaining lease terms of 1 year to 5 years. We determine if an arrangement is a lease at inception. Operating lease assets and liabilities are included in operating lease right-of-use assets and operating lease liabilities, respectively, on our consolidated balance sheets. Finance lease assets and liabilities are included in property and equipment and finance lease liabilities, respectively, on our consolidated balance sheets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. We elected the short-term lease exception and therefore only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. When determining lease terms, we factor in options to extend or terminate leases when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases we account for the lease and non-lease components as a single lease component.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Supplemental balance sheet information related to leases was as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2021</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Operating Leases</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Operating lease right-of-use assets</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">642,470</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">671,402</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current portion of operating lease liability</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">151,379</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">164,843</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Long-term portion of operating lease liability</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">474,785</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">504,783</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total operating lease liability</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">626,164</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">669,626</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Finance Leases</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Computer equipment on financing lease</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">101,049</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">101,049</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Less: accumulated depreciation</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">96,531</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">85,936</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Property and equipment, net</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,518</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">15,113</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current portion of finance lease liability</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4,560</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">11,951</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Long-term portion of finance lease liability</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,426</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,108</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total finance lease liability</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,986</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">14,059</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2021</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Weighted Average Remaining Lease Term</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating leases</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">4.0 years</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">4.1 years</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Finance leases</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">1.2 years</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">0.9 years</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Weighted Average Discount Rate</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating leases</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9.7</font></td> <td style="width: 1%"><font style="font-size: 8pt">%</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9.7</font></td> <td style="width: 1%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Finance leases</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.2</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.8</font></td> <td><font style="font-size: 8pt">%</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Maturities of lease liabilities were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Year ending December 31,</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Operating</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Leases</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Finance</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Leases</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">2021 (excluding the three months ended March 31, 2021)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">156,583</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,073</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">187,609</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,157</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2023</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">173,279</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2024</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">157,721</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2025</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,310</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total lease payments</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">759,502</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,230</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Less imputed interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(133,338</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(244</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">626,164</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,986</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of lease expense for the three months ended March 31, 2021 and 2020 were as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Operating lease costs:</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Operating lease costs</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">65,627</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">56,956</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Short-term lease costs</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">22,403</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">25,499</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total operating lease costs</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">88,030</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">82,455</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Finance lease costs:</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Amortization</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">10,595</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">8,763</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">142</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">949</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total finance lease cost</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">10,737</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">9,712</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Supplemental cash flow information for the three months ended March 31, 2021 and 2020 related to leases was as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Cash paid for amounts included in the measurement of lease liabilities:</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating cash flows from operating leases</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">67,563</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">54,774</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating cash flows from finance leases</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">142</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">949</font></td> <td>&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">There were no additional right of use assets obtained in exchange for lease obligations for the three months ended March 31, 2021 and 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>a) Redeemable Convertible Preferred Stock</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are authorized to issue up to 10,000,000 non-designated preferred shares at the Board of Directors&#8217; discretion.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A total of 550,000 shares of the Company&#8217;s Preferred Stock are designated as &#8220;Series A Redeemable Convertible Preferred Stock.&#8221; The Series A Redeemable Convertible Preferred Stock has no dividend or voting rights.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 31, 2021, 123,685 shares of Series A Redeemable Convertible Preferred Stock were outstanding. No shares of Series A Redeemable Convertible Preferred Stock were issued or redeemed during the three months ended March 31, 2021 and 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Redemption Rights</i></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Holders of Series A Redeemable Convertible Preferred Stock shall have the right to convert their shares into shares of common stock at the rate of 83.33 shares of common stock for one share of Series A Redeemable Convertible Preferred Stock, at any time following the date the closing price of a share of common stock on a securities exchange or actively traded over-the-counter market has exceeded $0.30 for ninety (90) consecutive trading days. The conversion rights are subject to the availability of authorized but unissued shares of common stock.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, 1,000 Series A Redeemable Convertible Preferred Stock may be redeemed at the holder&#8217;s option at the liquidation value of $25 per share if the cash balance of the Company as reported at the end of each fiscal quarter exceeds $400,000.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with ASC 480-10-S99, because a limited number of Series A Redeemable Convertible Preferred Stock may be redeemed at the holder&#8217;s option if the above criteria are met, it was classified as mezzanine equity and not permanent equity.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the event of any liquidation, dissolution, or winding up of the Company, whether voluntary or involuntary, before any distribution or payment is made to any holders of any shares of common stock, the holders of shares of Series A Redeemable Convertible Preferred Stock shall be entitled to be paid first out of the assets of the Corporation available for distribution to holders of the Company&#8217;s capital stock whether such assets are capital, surplus, or earnings, an amount equal to $25.00 per share of Series A Redeemable Convertible Preferred Stock.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>b) Common stock</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No shares of common stock were issued during the three months ended March 31, 2021 and 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>c) Stock Options and Warrants</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FASB ASC 718, <i>Stock Compensation</i>, requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Total stock-based compensation expense, related to all of the Company&#8217;s stock-based awards, recognized for the three months ended March 31, 2021 and 2020 was comprised as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Sales and marketing</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,239</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,291</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">General and administrative</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total stock-based compensation expense</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">6,939</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">11,991</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Common Stock Options and Warrants</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes our common stock option and warrant activity for the three months ended March 31, 2021:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Warrants</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant Date Exercise Price</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Outstanding at January 1, 2021</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">26,372,803</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.06</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Forfeited during the period</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(600,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.04</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Outstanding at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">25,772,803</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.06</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table summarizes our non-vested common stock option and warrant activity for the three months ended March 31, 2021:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Warrants</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant Date Exercise Price</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Non-vested at January 1, 2021</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">3,700,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.08</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Vested during the period</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(425,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.04</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-vested at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,275,000</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.09</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table summarizes the weighted average remaining contractual life and exercise price of common stock options and warrants outstanding at March 31, 2021:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top">&#160;</td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options and Warrants Outstanding</b></p></td> <td style="vertical-align: top">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options and Warrants Exercisable</b></p></td></tr> <tr style="vertical-align: top"> <td style="width: 20%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%; text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Outstanding</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Life (Years)</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercisable</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">$0.03-0.11</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">25,772,803</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.2</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">$0.06</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">22,497,803</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">$0.05</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 31, 2021, there was $20,817 of unrecognized compensation cost related to non-vested options and warrants granted to purchase common stock which is expected to be recognized over a weighted-average period of 1.6 years.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All stock options and warrants to purchase common stock have been granted with exercise prices equal to or greater than the market value of the underlying common shares on the date of grant.<b>&#160;</b>At March 31, 2021, the aggregate intrinsic value of options and warrants outstanding was $4,075,659. The aggregate intrinsic value of options and warrants exercisable was $3,661,634. The intrinsic value of stock options and warrants are calculated as the amount by which the market price of our common stock exceeds the exercise price of the option or warrant.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Preferred Stock Warrants</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the December 28, 2017 Compensation Agreement with David M. Shworan, the President and Chief Executive Officer of QuoteMedia, Ltd., a wholly owned subsidiary of Quotemedia, Inc., the Company issued Mr. Shworan warrants to purchase shares of Series A Redeemable Convertible Preferred Stock (&#8220;Compensation Preferred Stock Warrants&#8221;) in lieu of a cash salary. From the period December 28, 2017 to December 31, 2019 the Company issued a total of 31,250 Compensation Preferred Stock Warrants at an exercise price equal to $1.00 per share.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Also pursuant to the Compensation Agreement with Mr. Shworan, on December 28, 2017 the Company issued Mr. Shworan warrants to purchase up to 382,243 shares of Series A Redeemable Convertible Preferred Stock at an exercise price equal to $1.00 per share (&#8220;Liquidity Preferred Stock Warrant&#8221;). The Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event as defined in the Company&#8217;s Certificate of Designation of Series A Redeemable Convertible Preferred Stock. The probability of the liquidity event performance condition is not currently determinable or probable; therefore, no compensation expense has been recognized as of March 31, 2021. The probability is re-evaluated each reporting period. As of March 31, 2021, there was $9,173,832 in unrecognized stock-based compensation expense related to these Liquidity Preferred Stock Warrants. Since the Liquidity Preferred Stock Warrants only vest and become exercisable on the consummation of a Liquidity Event which is currently determined not to be probable, we are also unable to determine the weighted-average period over which the unrecognized compensation cost will be recognized.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of March 31, 2021, there were a total of 413,493 preferred stock warrants outstanding with a weighted average remaining contractual life of 26.8 years. As of March 31, 2021, 31,250 preferred stock warrants were exercisable. No preferred stock warrants were exercised for the three months ended March 31, 2021 and 2020.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net income per share is computed by dividing net income during the period <font style="background-color: white">by the weighted-average number of common shares outstanding, excluding the dilutive effects of common stock equivalents. Common stock equivalents include redeemable convertible preferred stock, stock options and warrants. Diluted net income per share is computed by dividing net income by the weighted-average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated using the treasury stock method by adding to the weighted shares outstanding any potential shares of common stock from outstanding redeemable convertible preferred stock, stock options and warrants that are in-the-money. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per share results in the same value.</font> The calculations for basic and diluted net income per share for the three months ended March 31, 2021 and 2020 are as follows:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Net income (loss)</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">23,087</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(117,325</font></td> <td style="width: 2%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average common shares used to calculate net income per share</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Warrants to purchase redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,499,900</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,306,671</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Stock options and warrants to purchase common stock</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,526,328</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average common shares used to calculate diluted net income per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">119,810,697</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Net income (loss) per share &#8211; basic</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">0.00</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(0.00</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Net income (loss) per share &#8211; diluted</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">0.00</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(0.00</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="background-color: white">The number of shares of potentially dilutive common stock related to options, warrants and redeemable convertible preferred stock that were excluded from the calculation of dilutive shares since the inclusion of such shares would be anti-dilutive for the three months ended March 31, 2021 and 2020 are shown below:</font></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Warrants to purchase redeemable convertible preferred stock</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,499,900</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,306,671</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Stock options and warrants to purchase common stock</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">14,751,112</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total potential common shares excluded</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">27,557,683</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 4, 2020, the Company received a $133,257 loan under the Paycheck Protection Program (&#8220;PPP&#8221;). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (&#8220;CARES Act&#8221;), provides qualifying businesses with these proceeds for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The proceeds and accrued interest are forgivable after twenty-four weeks, known as the covered period, as long as the borrower uses the proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The PPP loan was forgiven in its entirety on February 19, 2021. In accordance with ASC 470, <i>Debt,</i> the forgiveness of the loan was recognized as other income on our consolidated statements of operations.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We are a software developer and distributor of financial market data and related services to a global marketplace. We specialize in the collection, aggregation, and delivery of both delayed and real-time financial data content via the Internet. We develop and license software components that deliver dynamic content to banks, brokerage firms, financial institutions, mutual fund companies, online information and financial portals, media outlets, public companies, and corporate intranets.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include the operations of QuoteMedia, Ltd., a wholly owned subsidiary of QuoteMedia, Inc. All intercompany transactions and balances have been eliminated.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The U.S. dollar is the functional currency of all our company's operations. Foreign currency asset and liability amounts are remeasured into U.S. dollars at end-of-period exchange rates, except for equipment and intangible assets, which are remeasured at historical rates. Foreign currency income and expenses are remeasured at average exchange rates in effect during the period, except for expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses arising from remeasurement of foreign currency-denominated monetary assets and liabilities are included in earnings in the period in which they occur.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of the Company&#8217;s customers to make required payments. The Company determines the allowance by reviewing the age of the receivables and assessing the anticipated ability of customers to pay. No collateral is required for any of the receivables and the Company does not usually apply financing charges to outstanding accounts receivable balances. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. The allowance for doubtful accounts was $175,000 as of March 31, 2021 and December 31, 2020. Bad debt expense was $19,822 and $70,931 for the three months ended March 31, 2021 and 2020, respectively.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Recently Adopted</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We adopted this Topic 740 on January 1, 2021. The adoption of the new tax standard did not have a material effect on our consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b><i>Not Yet Adopted</i></b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which changes the impairment model for most financial assets, including accounts receivable, and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for the Company for interim and annual periods beginning after December 15, 2022. Early adoption is permitted. The Company is currently assessing the timing and impact of adopting ASU 2016-13 on the Company&#8217;s consolidated financial statements.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company&#8217;s consolidated financial statements upon adoption.</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Portfolio Management Systems:</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">&#160;&#160;&#160;Corporate Quotestream</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">1,454,072</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">976,917</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;Individual Quotestream</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">562,787</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">438,634</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Interactive Content and Data Applications</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,589,359</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,551,033</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total revenue</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,606,218</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">2,966,584</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td style="width: 88%"><font style="font-size: 8pt">Balance at December 31, 2020</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">544,902</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Revenue recognized in the current period from the amounts in the beginning balance</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">(219,903</font></td> <td><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">New deferrals, net of amounts recognized in the current period</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">217,232</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Effects of foreign currency translation</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(369</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Balance at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">541,862</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2021</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Operating Leases</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Operating lease right-of-use assets</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">642,470</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">671,402</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current portion of operating lease liability</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">151,379</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">164,843</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Long-term portion of operating lease liability</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">474,785</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">504,783</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total operating lease liability</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">626,164</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">669,626</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Finance Leases</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Computer equipment on financing lease</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">101,049</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">101,049</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Less: accumulated depreciation</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">96,531</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">85,936</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Property and equipment, net</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">4,518</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">15,113</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Current portion of finance lease liability</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">4,560</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">11,951</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Long-term portion of finance lease liability</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">1,426</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,108</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total finance lease liability</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,986</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">14,059</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> </table> <p style="margin-top: 0; margin-bottom: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>March 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2021</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>December 31,</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>2020</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Weighted Average Remaining Lease Term</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating leases</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">4.0 years</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">4.1 years</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Finance leases</font></td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">1.2 years</font></td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center"><font style="font-size: 8pt">0.9 years</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Weighted Average Discount Rate</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating leases</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9.7</font></td> <td style="width: 1%"><font style="font-size: 8pt">%</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9.7</font></td> <td style="width: 1%"><font style="font-size: 8pt">%</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Finance leases</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.2</font></td> <td><font style="font-size: 8pt">%</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.8</font></td> <td><font style="font-size: 8pt">%</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Operating lease costs:</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Operating lease costs</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">65,627</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">56,956</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Short-term lease costs</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">22,403</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">25,499</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total operating lease costs</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">88,030</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">82,455</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Finance lease costs:</b></font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Amortization</font></td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">10,595</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">8,763</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">142</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">949</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total finance lease cost</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">10,737</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">9,712</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt"><b>Cash paid for amounts included in the measurement of lease liabilities:</b></font></td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating cash flows from operating leases</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">67,563</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">54,774</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">&#160;&#160;&#160;&#160;Operating cash flows from finance leases</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">142</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">949</font></td> <td>&#160;</td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Sales and marketing</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,239</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">9,291</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">General and administrative</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">2,700</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total stock-based compensation expense</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">6,939</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">11,991</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes our common stock option and warrant activity for the three months ended March 31, 2021:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Warrants</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant Date Exercise Price</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Outstanding at January 1, 2021</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">26,372,803</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.06</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Forfeited during the period</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(600,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.04</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Outstanding at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">25,772,803</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.06</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">The following table summarizes our non-vested common stock option and warrant activity for the three months ended March 31, 2021:</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>and Warrants</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Weighted-Average Grant Date Exercise Price</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">Non-vested at January 1, 2021</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">3,700,000</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">0.08</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Vested during the period</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(425,000</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.04</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Non-vested at March 31, 2021</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">3,275,000</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td><font style="font-size: 8pt">$</font></td> <td style="text-align: right"><font style="font-size: 8pt">0.09</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top">&#160;</td> <td colspan="5" style="border-bottom: black 1pt solid; vertical-align: bottom; padding-bottom: 1.5pt"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options and Warrants Outstanding</b></p></td> <td style="vertical-align: top">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Common Stock Options and Warrants Exercisable</b></p></td></tr> <tr style="vertical-align: top"> <td style="width: 20%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%; text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td> <td style="width: 2%">&#160;</td> <td style="width: 14%">&#160;</td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Weighted</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Remaining</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Average</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Contractual</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Number</b></font></td> <td>&#160;</td> <td style="text-align: center"><font style="font-size: 8pt"><b>Exercise</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Outstanding</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Life (Years)</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Exercisable</b></font></td> <td>&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Price</b></font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: top"> <td><font style="font-size: 8pt">$0.03-0.11</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">25,772,803</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">8.2</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">$0.06</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">22,497,803</font></td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">$0.05</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Net income (loss)</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">23,087</font></td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="width: 1%; padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double; width: 1%"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; width: 9%; text-align: right"><font style="font-size: 8pt">(117,325</font></td> <td style="width: 2%; padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average common shares used to calculate net income per share</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Warrants to purchase redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,499,900</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,306,671</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Stock options and warrants to purchase common stock</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">16,526,328</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Weighted average common shares used to calculate diluted net income per share</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">119,810,697</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">90,477,798</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Net income (loss) per share &#8211; basic</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">0.00</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(0.00</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Net income (loss) per share &#8211; diluted</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">0.00</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">(0.00</font></td> <td style="padding-bottom: 3pt"><font style="font-size: 8pt">)</font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>Three months ended March 31,</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2021</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 8pt"><b>2020</b></font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 75%"><font style="font-size: 8pt">Warrants to purchase redeemable convertible preferred stock</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">2,499,900</font></td> <td style="width: 2%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Redeemable convertible preferred stock</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">10,306,671</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Stock options and warrants to purchase common stock</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">14,751,112</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total potential common shares excluded</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double">&#160;</td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">27,557,683</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> -1697654 19822 70931 175000 175000 219903 217232 -369 626164 669626 101049 101049 96531 85936 4518 15113 5986 14059 P4Y P4Y1M6D P1Y2M12D P10M24D .097 .097 .082 .088 84310 157721 173279 187609 156583 0 0 0 2157 4073 <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: bottom"> <td> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Year ending December 31,</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Operating</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Leases</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1pt solid"> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Finance</b></p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Leases</b></p></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2" style="text-align: center">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="width: 76%"><font style="font-size: 8pt">2021 (excluding the three months ended March 31, 2021)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">156,583</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 8pt">$</font></td> <td style="width: 9%; text-align: right"><font style="font-size: 8pt">4,073</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2022</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">187,609</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">2,157</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2023</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">173,279</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2024</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">157,721</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">-</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">2025</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">84,310</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">-</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total lease payments</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">759,502</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">6,230</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Less imputed interest</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(133,338</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1pt solid">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 8pt">(244</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 8pt">)</font></td></tr> <tr style="vertical-align: bottom"> <td><font style="font-size: 8pt">Total</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">626,164</font></td> <td style="padding-bottom: 3pt">&#160;</td> <td style="padding-bottom: 3pt">&#160;</td> <td style="border-bottom: black 1pt double"><font style="font-size: 8pt">$</font></td> <td style="border-bottom: black 1pt double; text-align: right"><font style="font-size: 8pt">5,986</font></td> <td style="padding-bottom: 3pt">&#160;</td></tr> </table> 88030 82455 22403 25499 65627 56956 10737 9712 142 949 10595 8763 67563 54774 142 949 25772803 26372803 25772803 3700000 3275000 -600000 425000 .06 .06 .06 0.08 0.09 .04 0.04 .03 .11 P8Y2M12D 22497803 .05 10000000 10000000 550000 20817 9173832 P1Y7M6D 4075659 3661634 413493 2499900 0 10306671 0 16526328 0 0 27557683 0 14751112 0 10306671 0 2499900 759502 133338 6230 244 EX-101.SCH 7 qmci-20210331.xsd XBRL TAXONOMY EXTENSION SCHEMA 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONDENSED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - BASIS OF PRESENTATION link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - REVENUE link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - RELATED PARTIES link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - LEASES link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - EARNINGS PER SHARE link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - PAYCHECK PROTECTION PROGRAM link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - REVENUE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - LEASES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - EARNINGS PER SHARE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - BASIS OF PRESENTATION (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - REVENUE (Details) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - REVENUE (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - LEASES (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - LEASES (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - LEASES (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - LEASES (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (Details) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - EARNINGS PER SHARE (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - EARNINGS PER SHARE (Details 1) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 qmci-20210331_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE