wordproof.doc

0001477932-21-003161.txt : 20210514 0001477932-21-003161.hdr.sgml : 20210514 20210514160538 ACCESSION NUMBER: 0001477932-21-003161 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 66 CONFORMED PERIOD OF REPORT: 20210331 FILED AS OF DATE: 20210514 DATE AS OF CHANGE: 20210514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: nDivision Inc. CENTRAL INDEX KEY: 0001659183 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 475133966 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55920 FILM NUMBER: 21924531 BUSINESS ADDRESS: STREET 1: 4925 GREENVILLE AVENUE, SUITE 200 CITY: DALLAS STATE: TX ZIP: 75206 BUSINESS PHONE: 214-785-6355 MAIL ADDRESS: STREET 1: 4925 GREENVILLE AVENUE, SUITE 200 CITY: DALLAS STATE: TX ZIP: 75206 FORMER COMPANY: FORMER CONFORMED NAME: GO2GREEN LANDSCAPING, INC. DATE OF NAME CHANGE: 20151123 10-Q 1 ndvn_10q.htm FORM 10-Q wordproof.doc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 333-212446

NDIVISION INC.

(Exact name of registrant as specified in its charter)

Nevada		47-5133966
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

7301 N. State Highway 161, Suite 100, Irving TX		75039
(Address of principal executive offices)		(Zip Code)

(214) 785-6355

(Registrant’s telephone number, including area code)

____________________________________________________________

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

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 every Interactive Data File required to be submitted 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 such files). ☒ YES ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☒

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 provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES ☒ NO

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

42,648,225 common shares issued and outstanding as of May 13, 2021.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

Item 1.	Interim Condensed and Consolidated Financial Statements	4

Item 2.	Management’s Discussion and Analysis of Financial Condition or Plan of Operation	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	25

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults Upon Senior Securities	25

Item 4.	Mine Safety Disclosures	25

Item 5.	Other Information	25

Item 6.	Exhibits	26

SIGNATURES		27

Table of Contents

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our unaudited consolidated financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our common stock.

As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean nDivision Inc., unless otherwise indicated.

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NDIVISION, INC.

Interim Condensed Consolidated Financial Statements

For the Quarterly Period Ended March 31, 2021

		Page

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (Unaudited)		5

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020 (Unaudited)		6

Condensed Consolidated Statements of Stockholders’ (Deficit) Equity for the Three Months Ended March 31, 2021 and 2020 (Unaudited)		7

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020 (Unaudited)		8

Notes to the Unaudited Condensed Consolidated Financial Statements		9

Table of Contents

NDIVISION INC

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

	March 31,			December 31,
	2021			2020
ASSETS
Current assets
Cash	$	1,721,369		$	1,806,606
Accounts receivable, net (allowance for doubtful accounts was $10,000 at March 31, 2021 and $26,000 at December 31, 2020)		498,220			531,244
Prepaid expenses		229,783			121,339
Total current assets		2,449,372			2,459,189

Equipment and software licenses - at cost, less accumulated
depreciation and amortization		517,304			540,918

Other assets
Intangible asset, less accumulated amortization		404,682			455,320
Right-of-use asset		416,344			441,940
Total other assets		821,026			897,260

Total assets	$	3,787,702		$	3,897,367

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities
Accounts payable	$	257,530		$	153,427
Accrued liabilities		514,618			373,487
Deferred revenue		702,803			870,184
Current portion of note payable		634,244			514,678
Current portion of acquisition note payable		3,800			18,102
Current portion of operating lease payable		87,887			105,615
Current portion of finance lease obligations		170,199			125,449
Total current liabilities		2,371,081			2,160,942

Note payable		76,256			195,822
Convertible notes payable, net of discount		923,241			734,282
Operating lease payable, net of current portion		328,154			336,520
Finance lease obligations, net of current portion		329,774			380,209
Total long-term liabilities		1,657,425			1,646,833

Commitments

Stockholders' (deficit) equity
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $0.001 par value, 180,000,000 shares authorized, and 42,584,886 and 42,499,783 shares issued and outstanding, respectively		42,585			42,500
Additional paid in capital		8,077,882			7,160,175
Accumulated deficit		(8,361,271	)		(7,113,083	)
Total stockholders' (deficit) equity		(240,804	)		89,592
Total liabilities and stockholders' (deficit) equity	$	3,787,702		$	3,897,367

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

NDIVISION INC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended March 31,
	2021			2020

Service revenue	$	1,377,454		$	1,666,890

Service costs		1,142,023			1,020,152

Gross profit		235,431			646,738

Operating expenses
Selling, general and administrative expenses		1,370,594			735,953
		1,370,594			735,953

Loss from operations		(1,135,163	)		(89,215	)

Other (expense) income
Interest expense		(113,236	)		(30,047	)
Other income		211			-
Other (expense) income		(113,025	)		(30,047	)

Net loss before income tax		(1,248,188	)		(119,262	)

Income tax expense		-			-

Net loss		(1,248,188	)		(119,262	)

Basic and diluted loss per share	$	(0.03	)	$	(0.00	)

Weighted average shares outstanding		42,519,640			41,249,783

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

NDIVISION INC

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited)


	Common Stock		Common Stock		Additional Paid			Accumulated			Total Shareholders'
	Shares		Par		In Capital			Deficit			(Deficit) Equity
2020
Balance, December 31, 2019		41,249,783	$	41,250	$	6,037,767		$	(5,614,157	)	$	464,860

Amortization of stock option and warrant expense		-		-		145,797			-			145,797

Net loss		-		-		-			(119,262	)		(119,262	)

Balance, March 31, 2020		41,249,783	$	41,250	$	6,183,564		$	(5,733,419	)	$	491,395

2021
Balance, December 31, 2020		42,499,783	$	42,500	$	7,160,175		$	(7,113,083	)	$	89,592

Amortization of stock option and warrant expense		-		-		297,417			-			297,417

Beneficial conversion feature		-		-		620,375			-			620,375

Exercise of stock options		85,103		85		(85	)		-			-

Net loss		-		-		-			(1,248,188	)		(1,248,188	)

Balance, March 31, 2021		42,584,886	$	42,585	$	8,077,882		$	(8,361,271	)	$	(240,804	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

NDIVISION INC

CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities
Net loss	$	(1,248,188	)	$	(119,262	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		100,463			113,239
Provision for doubtful accounts		(16,000	)		(8,190	)
Amortization of beneficial conversion feature		70,567			-
Non-cash lease expense		25,596			22,092
Stock based compensation		297,417			145,797
Changes in assets and liabilities
Accounts receivable		49,024			74,973
Prepaid expenses		(154,677	)		(22,303	)
Accounts payable and accrued liabilities		245,234			1,186
Deferred revenue		(167,381	)		(396,361	)
Operating lease payable		(26,094	)		(10,064	)
Net cash used in operating activities		(824,039	)		(198,893	)

Cash flows from investing activities
Repayment of debt related to acquisition		(14,302	)		(12,413	)
Acquisition of equipment and software licenses		-			(2,741	)
Net cash used in investing activities		(14,302	)		(15,154	)

Cash flows from financing activities
Proceeds from issuance of notes payable		785,000			-
Repayment of finance lease obligations		(31,896	)		(64,714	)
Net cash provided by (used in) financing activities		753,104			(64,714	)

Net decrease in cash		(85,237	)		(278,761	)
Cash, beginning of period		1,806,606			1,757,695
Cash, end of period		1,721,369		$	1,478,934

Supplemental cash flow disclosures
Interest paid	$	10,332		$	6,278
Non-cash financing activities
Cashless exercise of options	$	85		$	-
Purchase of equipment under capital lease	$	26,211		$	115,968
Beneficial conversion feature	$	620,375		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

nDivision Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

1. DESCRIPTION OF BUSINESS

nDivision Inc. (“nDivision” or the “Company”) was incorporated under the laws of the state of Nevada. nDivision’s registered office is located at 7301 N. State Highway 161, Suite 100, Irving, TX, 75039. The Company provides managed IT services and project-based professional services in the information technology industry, selling its services directly to customers and through global service providers (GSP). The Company operates in most states of the United States of America.

2. LIQUIDITY

The Company has experienced significant losses and negative cash flows from operations in the past. Management has secured new managed services contracts, implemented a strategy which includes cost reduction efforts, as well as identifying strategic acquisitions to improve the overall profitability and cash flows of the Company.

During the three months ended March 31, 2021, the Company received proceeds from the issuance of convertible notes payable of approximately $785,000. The Company also has working capital of $78,291 at March 31, 2021.

Management intends to finance operating costs over the next twelve months from the date of the issuance of these consolidated financial statements with existing cash on hand and expected cash flow from operations. Management believes the expected cash flow from operations, and cash on hand will be sufficient to finance operations over the next twelve months from the date of this report.

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company has transitioned its operations to 100% work from home and there has been minimal impact to our internal operations from the transition. The Company is unable to determine if there will be a material future impact to its customers’ operations and ultimately an impact to the Company’s overall revenues.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K filed on March 30, 2021 from which the accompanying December 31, 2020 numbers are derived.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, nDivision Services Inc. (incorporated in the state of Texas). All significant inter-company accounts and transactions are eliminated in consolidation.

Table of Contents

Use of Estimates

Management uses estimates and assumptions in preparing these unaudited condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Revenue Recognition

For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as managed services and professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid.

The Company has elected the following practical expedients in applying ASC 606:

Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration.

Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer.

Cash and Cash Equivalents

For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

The Company’s cash balances are maintained at one bank. Balances are insured by the Federal Deposit Insurance Corporation subject to certain limitations.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables.

Intangible Assets

Customer contracts acquired were recorded at their estimated fair value at the date of acquisition and are being amortized over their estimated useful life of five years using the straight-line method.

Table of Contents

Impairment of Long-lived Assets

The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company did not record any impairment during the three months ended March 31, 2021 and 2020.

Paycheck Protection Note Payable

The Company received a loan from the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the amount of $710,500. The loan is subject to a note dated May 2, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act. The loan may be repaid at any time with no prepayment penalty. The Company has not been required to make installment payments as of the date of this report.

Concentration of Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and accounts receivable. See Note 14 for significant customer concentration disclosure.

Cash is maintained with one major financial institution in the United States and may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and, therefore, bear minimal risk.

Equipment and Software Licenses

Equipment and software licenses are stated at cost. Depreciation is calculated using the straight-line method over an estimated useful life of one to ten years.

Convertible Debt and Securities

The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence.

Earnings and Loss per Share

Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were approximately 15,387,000 of common stock equivalents excluded for the three months ended March 31, 2021 and 6,949,000 of common stock equivalents excluded for the three months ended March 31, 2020, respectively because their effect is anti-dilutive.

Marketing Costs

Marketing costs, which are expensed as incurred, totaled approximately $158,859 for the three months ended March 31, 2021 and $5,091 for the three months ended March 31, 2020, respectively and is included in selling, general and administrative expenses.

Table of Contents

Stock-Based Compensation

Compensation expense related to share-based transactions, including employee stock options, is measured in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense.

See Note 12 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation.

Leases

The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The interest element of the finance leases are accounted for as finance costs and expensed over the lease term using the effective interest rate method.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statement of operations. As of March 31, 2021, no accrued interest or penalties are included on the related tax liability line in the balance sheet.

Table of Contents

4. RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules were effective for the Company in the first quarter of 2021. The Company determined that the adoption of this ASU had no impact on its consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASC 326”), authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity, which simplifies the guidance for certain convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. As a result, convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to increase the carrying value of its Convertible Debt and reduce its reported interest expense. In addition, the Company will be required to use the if-converted method for calculating diluted earnings per share. The Company is currently evaluating the impact the adoption of this standard will have on its condensed consolidated financial statements.

No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company’s present or future unaudited condensed consolidated financial statements.

5. EQUIPMENT AND SOFTWARE LICENSES

Equipment and software licenses consist of the following:

	March 31,			December 31,
	2021			2020
Equipment and software	$	626,111		$	599,900
Software licenses		1,302,141			1,302,141
		1,928,252			1,902,041
Less - Accumulated depreciation and amortization		(1,410,948	)		(1,361,123	)
	$	517,304		$	540,918

Depreciation and amortization expense related to assets for the three months ended March 31, 2021 and 2020 was approximately $49,825 and $62,601, respectively.

Included in the above paragraph is depreciation and amortization expense related to leased assets for the three months ended March 31, 2021 and 2020 of approximately $40,622 and $43,562, respectively.

Table of Contents

6. INTANGIBLE ASSETS

Intangible Assets

As of March 31, 2021

Useful Life

Cost

Accumulated

Amortization

Net

Book Value

Service Contracts

1,012,335

607,653

404,682

There was approximately $50,638 of amortization expense for each of the three month periods ended March 31, 2021 and 2020. Service contracts are amortized based on the future undiscounted cash flows or straight – line basis over estimated remaining useful lives of five years.

Over the next three fiscal years annual amortization expense for these finite life intangible assets will total approximately $404,682 as follows: remainder of fiscal 2021 - $151,914, fiscal 2022 - $202,551, fiscal 2023 - $50,217.

Long-lived assets, including purchased intangibles subject to amortization, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company regularly evaluates whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. As of March 31, 2021, the Company has not recorded any impairments.

7. ACCRUED LIABILITIES

	March 31,		December 31,
	2021		2020
Accrued compensation	$	258,929	$	138,707
Accrued interest		50,638		23,185
Accrued sales tax		7,368		23,525
Accrued franchise tax		16,010		11,832
Accrued professional fees and other payables		181,673		176,238
Total accrued liabilities	$	514,618	$	373,487

8. FACTORING CREDIT FACILITY

The Company has agreements with an unrelated third party for factoring of specific accounts receivable. Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. The agreement provides for an advanced rate of 90% with a fee of 1.9% to be charged on the gross face amount of the invoices purchased for 30 days, and an additional 0.06% charge for each additional day until the invoice(s) are paid. The Company has retained late payment and credit risk related to the factored receivables and therefore continues to recognize the factored receivables in their entirety on its balance sheet. The Company has not factored any receivables under this agreement for the three months ended March 31, 2021 and 2020.

Table of Contents

9. NOTE PAYABLE

On May 2, 2020, the Company entered into a Paycheck Protection Program loan for $710,500 in connection with the CARES Act related to COVID-19. $634,244 of the Paycheck Protection Program loan is classified as current as the Company has not been required to make the installment payments. The promissory note has a fixed payment schedule, with a deferral period for loan payments of either (1) the date that SBA remits the borrower's loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower's loan forgiveness covered period. Therefore estimated commencing payment date is ten months after the 24-week covered period. A final payment for the unpaid principal and accrued interest will be payable no later than May 2, 2022. The note will bear interest at a rate of 1.00% per annum and is deferred for the first six months of the loan. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount, if any.

10. CONVERTIBLE NOTES PAYABLE

The Company entered several promissory notes with various investors of the Company with a face value of $1,835,000 of which $200,000 is from a related party (“the Notes”) with $785,000 raised during the three months ended March 31, 2021 and $1,050,000 raised during the year ended December 31, 2020. The Notes had an initial beneficial conversion feature valued at $956,675, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. For the three month’s ended March 31, 2021, the Company amortized $24,334 of the discount to interest expense. The notes have an interest rate of 8%. The principle and interest of the notes are due in full beginning September 2022 through March 2023 or can be converted into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a debt or equity offering that occurs subsequent to the date of the closing of the offering that results in gross offering proceeds of at least Five Million Dollars.

11. LEASE OBLIGATIONS

The Company finances certain property and equipment using finance leases. The finance lease obligations represent the present value of the minimum lease payments, net of imputed interest. The finance lease obligations are secured by the underlying leased assets. Leases are payable in monthly installments ranging from $354 to $4,397 including interest, ranging from 3.6% to 12% per annum.

Future minimum lease payments, including principle and interest, under the finance leases for subsequent years are as follows:

Year ended
Remainder of 2021	$	127,749
2022		155,642
2023		136,058
2024		117,774
2025		43,970

Total		581,193
Less: interest		(81,220	)
Present value of net minimum lease payments		499,973

Short term		170,199
Long term total	$	329,774

Table of Contents

Lease payments for the three months ended March 31, 2021 and 2020 aggregated approximately $43,057 and $69,745, respectively.

The finance lease obligations are secured by underlying leased assets with a net book value of approximately $494,638 and $509,050 as of March 31, 2021 and December 31, 2020, respectively.

Operating Lease

The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option will result in an economic penalty. All of the Company’s real estate leases are classified as operating leases.

Most real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term for an additional four to five years. The exercise of lease renewal options is at the Company’s discretion. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2021 are:

Weighted average remaining lease term		44 Months
Weighted average incremental borrowing rate			5.0	%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized in the unaudited condensed consolidated balance sheet as of March 31, 2021:

Remainder of 2021	$	73,998
2022		129,392
2023		131,859
2024		120,871
Total undiscounted future minimum lease payments		456,120
Less: Imputed interest		(40,079	)
Present value of operating lease obligation	$	416,041

The Company has one leased facility which is office, manufacturing, and warehouse space. The Company is responsible for real estate taxes, utilities, and repairs under the terms of certain of the operating leases. Therefore, all lease and non-lease components are combined and accounted for as single lease component.

Table of Contents

For the three months ended March 31, 2021, the components of lease expense, included in cost of services and general and administrative expenses and the related interest expense in the consolidated statements of operations income, are as follows:

	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating lease cost:
Operating lease cost	$	31,617	$	31,119
Financing lease cost:
Amortization of financed lease assets	$	26,200	$	43,562
Interest expense		5,417		3,997
Total lease cost	$	31,617	$	47,559

12. STOCK BASED COMPENSATION

Number of options outstanding:
2018 Equity Incentive Plan			7,726,677
Options granted not part of a shareholder approved plan			2,200,000

March 31, 2021			9,926,677

The Board of Directors approved the Company’s 2018 Equity Incentive Plan (the “2018 Plan”). The purpose of the 2018 Plan is to provide additional incentives to select persons who can make, are making, and continue to make substantial contributions to the growth and success of the Company, to attract and retain the employment and services of such persons, and to encourage and reward such contributions, by providing these individuals with an opportunity to acquire or increase stock ownership in the Company through either the grant of options or restricted stock. The 2018 Plan is administered by the Compensation Committee or such other committee as is appointed by the Board of Directors pursuant to the 2018 Plan (the “Committee”). The Committee has full authority to administer and interpret the provisions of the 2018 Plan including, but not limited to, the authority to make all determinations with regard to the terms and conditions of an award made under the 2018 Plan. The maximum number of shares that may be granted under the 2018 Plan is 8,000,000. This number is subject to adjustment to reflect changes in the capital structure or organization of the Company.

The following table reflects the stock options for the three months ended March 31, 2021:

A summary of stock option activity is as follows:

Number of options outstanding:
Beginning of year		9,601,677
Granted		500,000
Exercised		(175,000	)
Forfeited		-

March 31, 2021		9,926,677

Number of options exercisable at end of period		6,953,076
Number of options available for grant at end of period		273,323

Weighted average option prices per share:	$	0.40
Granted during the period		0.56
Exercised during the period		0.375
Forfeited during the period		-
Outstanding at end of the period		0.39
Exercisable at end of period	$	0.40

Table of Contents

Stock-based compensation expense attributable to stock options was $180,000 for the three month period ended March 31, 2021 and $145,797 for the three month period ended March 31, 2020. As of March 31, 2021, there was approximately $1,170,000 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 5 years.

During the three month period ended March 31, 2021, the Company granted options to purchase 500,000 shares of common stock with an average vesting period of 3 years, an average expected life of 6.5 years and an average exercise price of $0.56 per common share. Total value was $243,964.

The Company did not issue any options or warrants during the three month period ended March 31, 2020.

	2021

Expected option life (years)		6.5
Expected stock price volatility		117	%
Expected dividend yield	—		%
Risk-free interest rate		1.15	%

During the year ended December 31, 2020, the Company issued a warrant to a related party consultant to purchase up to 750,000 shares of common stock at a per common share price of $0.625. The consulting contract is for eighteen months and the warrant term is eighteen months. The warrant vests immediately and the total value was approximately $174,000.

The Gamwell contract acquisition warrants remain outstanding. The warrant can be exercised for 122,752 of the Company’s common stock at an exercise price of $0.375 per share and expire April 23, 2028.

13. RELATED PARTY TRANSACTIONS

The Company contracted with Norco Professional Services, LLC. (“Norco”) to provide consulting services. The Company spent approximately $22,500 for the three-month period ended March 31, 2021. Norco is owned by Andrew J. Norstrud, who joined the Company in January of 2019, as the Company’s Chief Financial Officer. The Company continues to contract Andrew Norstrud’s services through Norco.

During the year ended December 31, 2020, the Company obtained $200,000 in debt and granted a warrant to a related party for consulting services over the following 18 months, see note 10 and 12 for additional related party transaction details.

The above related party transactions are not necessarily indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent parties.

14. SIGNIFICANT CUSTOMERS

The Company had significant customers in each of the quarters presented. A significant customer is defined as one that makes up ten percent or more of total revenues in a particular quarter or ten percent of outstanding accounts receivable balance as of end of the period.

Table of Contents

Net revenues for the three months ended March 31, 2021 and 2020 include revenues from significant customers as follows:

	Three Month Ended March 31,
	2021			2020
Customer A		54	%		40	%
Customer B		11	%		32	%

Accounts receivable balances as of March 31, 2021 and December 31, 2020 from significant customers are as follows:

	March 31,			December 31,
	2021			2020
Customer A		93	%		79	%
Customer C		0	%		14	%

15. SUBSEQUENT EVENTS

Subsequent to March 31, 2021, the Company entered into several promissory notes with various investors of the Company with a face value of $405,000 (“the Notes”). The Notes have a beneficial conversion feature valued at $405,000, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. The notes have an interest rate of 8% and are payable quarterly and twelve months after issuance, 1/12 of the principle will repaid monthly. The principal and interest of the note is convertible into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a Qualified Offering.

Effective on May 5, 2021 the board approved an amended and restated stock option plan that increases the available options from 8,000,000 shares to 18,000,000 shares, which was approved by majority written consent of the shareholders.

On May 6, 2021, the Company issued 300,000 common stock options to a new board member at an exercised price of $0.78 per share. The option vests monthly over 36 months.

On May 11, 2021, the Company issued 63,339 shares of common stock to an investor that converted $25,000 of principal and $336 of interest in to shares per the Notes agreement.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

General Overview

As used in this current report and unless otherwise indicated, the terms “we”, “us” and “our” mean nDivision, Inc.

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company has transition its operations to 100% work from home and there has been minimal impact to our internal operations from the transition. The Company is unable to determine if there will be a material future impact to its customers’ operations and ultimately an impact to the Company’s overall revenues.

Results of Operations

The following summary of the Company’s operations should be read in conjunction with its unaudited condensed consolidated financial statements for the three months ended March 31, 2021 and 2020, which are included herein.

Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

	March 31,
	2021			2020			Change
Revenue	$	1,377,454		$	1,666,890		$	(289,436	)
Cost of revenue		1,142,023			1,020,152			121,871
Operating expenses		1,370,594			735,953			634,641
Other (expenses) income		113,025			30,047			82,978
Net loss	$	(1,248,188	)	$	(119,262	)	$	(1,128,926	)

Revenues decreased by $289,436 or 17% compared with the same period last year. Revenue increased by approximately $205,400 from new customers and an increase of approximately $71,800 of new, non-recurring revenue, which was offset by approximately $228,000 loss of customers and $338,700 due to changes in services or devices. The loss of customers were non-renewed contracts, including one contract that was terminated per their agreement for customer convenience and effectively terminated on March 31, 2020; approximately $41,700 of monthly recurring revenue.

Cost of revenue includes system infrastructure, software licenses, wages and related payroll taxes and employee benefits of the engineers providing direct services to our customers. There is a component of these costs that are recurring and fixed to provide our minimum service level as a managed service provider. Cost of revenue increased by $121,871 or 12% compared with the same period last year. The increase was related to the addition of three service employees in 2020 and converting two contract laborers to employees in the second quarter of 2020 to support recurring contracts and additional direct expenses incurred including annual service personnel salary increases. This was offset by the decrease in depreciation for fully depreciated assets. Gross profit decreased by $411,307 and the gross margin decreased by approximately 22%. This was caused by the lower than expected revenue and the additional costs incurred from the new service employees, professional services cost and increase is MSP costs.

Operating expenses increased by $634,641 or 70% compared with the same period last year. There was an increase for a new marketing campaign, compensation for a new Chief Revenue Officer and the addition of two new sales directors, sales commissions, and consulting fees, increased stock compensation expense which was partially offset by decreases in travel, depreciation, and other general expenses. The Company’s management is continuing to control operating expenses while also implementing management growth strategies.

The Company incurred a net loss of $1,248,188 and $119,261 for the three months ended March 31, 2021 and March 31, 2020, respectively. The increase in the net loss is primarily related to the increase in operating expenses and lower profit margins.

Liquidity and Capital Resources

Working Capital

	As at March 31, 2021		As at December 31, 2020
Current assets	$	2,449,372	$	2,459,189
Current liabilities	$	2,371,081	$	2,160,942
Working capital	$	78,291	$	298,247

Table of Contents

Cash Flows

	Three Months Ended March 31,
	2021			2020
Cash flows used in operating activities	$	(824,039	)	$	(198,893	)
Cash flows used in investing activities		(14,302	)		(15,154	)
Cash flows provided by (used in) financing activities		753,104			(64,714	)
Net decrease in cash during period	$	(85,237	)	$	(278,761	)

At March 31, 2021, the Company had cash of $1,721,369 or a decrease of $85,237 from the December 31, 2020 cash balance. Cash flow used in operating activities was $824,039 for the three months ended March 31, 2021. The decrease is primarily related to increased net loss sustained during the quarter. At March 31, 2021 and December 31, 2020 deferred revenue was $702,803 and $870,184, respectively.

Net cash used in investing activities for the three months ended March 31, 2021 and 2020 was $14,302 and $15,154, respectively. For the period ended March 31, 2021 the use of cash was primarily due to the repayment of debt related to the acquisition of equipment and software licenses.

Net cash flows provided by financing activities for the three months ended March 31, 2021 was $753,104 compared to net cash flows used in financing activities of $64,714 in the three months ended March 31, 2020. The increase is primarily related to the issuance of notes payable of $785,000 net of repayment of the finance lease obligations.

Management intends to finance operating costs over the next twelve months from the date of the issuance of these unaudited condensed consolidated financial statements with existing cash on hand, projected operations and short-term debt from the factoring of receivables. Management believes the cash flow from operations and cash on hand will be sufficient to finance operations over the next twelve months.

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company has transition its operations to 100% work from home and there has been minimal impact to our internal operations from the transition. The Company is unable to determine if there will be a material future impact to its customers’ operations and ultimately an impact to the Company’s overall revenues.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based on our unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to bad debts, intangible assets, and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of certain assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

We have identified below the accounting policies, related to what we believe are most critical to our business operations and are discussed throughout Management’s Discussion and Analysis of Financial Condition or Plan of Operation where such policies affect our reported and expected financial results.

Revenue Recognition

Table of Contents

The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid.

The Company has elected the following practical expedients in applying ASC 606:

Accounts Receivable

Accounts receivable are stated at the amounts management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables.

Intangible Assets

Impairment of Long-lived Assets

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Table of Contents

New Accounting Pronouncements Not Yet Adopted

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, the Company is not required to provide the information required by this Item.

Item 4. Controls and Procedures

Management’s Report on Disclosure Controls and Procedures

Under the supervision and with the participation of our senior management, including our chief executive officer and chief financial officer, we conducted 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) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”). Based on this evaluation, our chief executive officer and chief financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were not effective such that the information relating to us required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over the Company’s financial reporting. In order to evaluate the effectiveness of internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002. Our management, with the participation of our principal executive officer and principal financial officer have conducted an assessment, including testing, using the criteria in Internal Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) (2013). Our system of internal control over financial reporting is designed 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. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. This assessment included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management concluded that our internal control over financial reporting was not effective as of March 31, 2021. The ineffectiveness of the Company’s internal control over financial reporting was due to the following material weaknesses, which are indicative of many small companies with small staff:

Table of Contents

	(i)	inadequate segregation of duties consistent with control objectives; and

	(ii)	lack of multiple levels of supervision and review.

We believe that the weaknesses identified above have not had any material effect on our financial results. We are currently reviewing our disclosure controls and procedures related to these material weaknesses and expect to implement changes in the current fiscal year, including identifying specific areas within our governance, accounting, and financial reporting processes to add adequate resources to potentially mitigate these material weaknesses.

Our management will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

Because of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management’s Remediation Plan

The weaknesses and their related risks are not uncommon in a company of our size because of the limitations in the size and number of staff. Due to our size and nature, segregation of all conflicting duties has not always been possible and may not be economically feasible.

However, we plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes by the end of the 2021 fiscal year as resources allow:

(i)

Appoint additional qualified personnel to address inadequate segregation of duties and implement modifications to our financial controls to address such inadequacies; and

(ii)

We will attempt to implement the remediation efforts set out herein by the end of the 2021 fiscal year. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

Management believes that despite our material weaknesses set forth above, our financial statements for the quarter ended March 31, 2021 are fairly stated, in all material respects, in accordance with U.S. GAAP.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2021 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

Table of Contents

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. The Company is not involved in any pending legal proceeding or litigation and, to the best of its knowledge, no governmental authority is contemplating any proceeding to which we are a party or to which any of its properties is subject, which would reasonably be likely to have a material adverse effect on the Company.

Item 1A. Risk Factors

As a “smaller reporting company”, the Company is not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2021 the Company entered several promissory notes with various investors of the Company with a face value of $785,000. The principle and interest of the note is convertible into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a Qualified Offering.

The above Convertible Promissory Notes are exempt from registration pursuant to Regulation D, Rule 506(b), and related state securities laws.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

Table of Contents

Item 6. Exhibits

Exhibit Number		Description
(3)		Articles of Incorporation and Bylaws
3.1		Articles of Incorporation (Incorporated by reference to our Registration Statement on Form S-1 filed on July 8, 2016)
3.2		Amended Articles of Incorporation (Incorporated by reference to our Registration Statement on Form S-1 filed on July 8, 2016)
3.3		Bylaws (Incorporated by reference to our Registration Statement on Form S-1 filed on July 2016)
(31)		Rule 13a-14 (d)/15d-14d) Certifications
31.1*		Section 302 Certification by the Principal Executive Officer
31.2*		Section 302 Certification by the Principal Financial Officer and Principal Accounting Officer
(32)		Section 1350 Certifications
32.1*		Section 906 Certification by the Principal Executive Officer
32.2*		Section 906 Certification by the Principal Financial Officer and Principal Accounting Officer
101**		Interactive Data File
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

__________

* Filed herewith.

** Furnished herewith.

Table of Contents

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		NDIVISION, INC.
		(Registrant)

Dated: May 14, 2021		/s/ Alan Hixon
		Alan Hixon
		President, Chief Executive Officer, and Director
		(Principal Executive Officer)

Dated: May 14, 2021		/s/ Andrew J. Norstrud
		Andrew J. Norstrud
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-31.1 2 ndvn_ex311.htm CERTIFICATION ndvn_ex311.htm

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alan Hixon, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of nDivision, 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.	I am 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 Rules 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;

5.	I have disclosed, based on my 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 14, 2021

/s/ Alan Hixon

Alan Hixon President,

Chief Executive Officer and Director

(Principal Executive Officer)

EX-31.2 3 ndvn_ex312.htm CERTIFICATION ndvn_ex312.htm

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrew J. Norstrud, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of nDivision, 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.	I am 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 Rules 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;

5.	I have disclosed, based on my 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)

(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 14, 2021

/s/ Andrew J. Norstrud

Andrew J. Norstrud,

Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-32.1 4 ndvn_ex321.htm CERTIFICATION ndvn_ex321.htm

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

The undersigned, Alan Hixon, President and Chief Executive Officer, of nDivision, Inc., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

the quarterly report on Form 10-Q of nDivision, Inc. for the period ended March 31, 2021 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of nDivision, Inc.

Dated: May 14, 2021

/s/ Alan Hixon

Alan Hixon President, Chief Executive Officer and Director

(Principal Executive Officer)

EX-32.2 5 ndvn_ex322.htm CERTIFICATION ndvn_ex322.htm

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

The undersigned, Andrew J. Norstrud, Chief Financial Officer, of nDivision, Inc., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of nDivision, Inc.

Dated: May 14, 2021

/s/ Andrew J. Norstrud

Andrew J. Norstrud,

Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

EX-101.INS 6 ndvn-20210331.xml XBRL INSTANCE DOCUMENT 0001659183 2021-01-01 2021-03-31 0001659183 ndvn:SubsequentEventsMember ndvn:NewBoardMember 2021-05-06 0001659183 ndvn:SubsequentEventsMember ndvn:NewBoardMember 2021-05-01 2021-05-06 0001659183 ndvn:SubsequentEventsMember ndvn:InvestorsMember 2021-05-01 2021-05-11 0001659183 ndvn:SubsequentEventsMember ndvn:InvestorsMember 2021-05-11 0001659183 ndvn:SubsequentEventsMember ndvn:InvestorsMember 2021-05-01 2021-05-05 0001659183 ndvn:SubsequentEventsMember ndvn:InvestorsMember 2021-03-31 0001659183 ndvn:SubsequentEventsMember ndvn:InvestorsMember 2021-01-01 2021-03-31 0001659183 us-gaap:AccountsReceivableMember ndvn:CustomerCMember 2021-01-01 2021-03-31 0001659183 us-gaap:AccountsReceivableMember ndvn:CustomerCMember 2020-01-01 2020-03-31 0001659183 us-gaap:AccountsReceivableMember ndvn:CustomerAMember 2021-01-01 2021-03-31 0001659183 us-gaap:AccountsReceivableMember ndvn:CustomerAMember 2020-01-01 2020-03-31 0001659183 us-gaap:SalesRevenueNetMember ndvn:CustomerAMember 2021-01-01 2021-03-31 0001659183 us-gaap:SalesRevenueNetMember ndvn:CustomerBMember 2020-01-01 2020-03-31 0001659183 us-gaap:SalesRevenueNetMember ndvn:CustomerAMember 2020-01-01 2020-03-31 0001659183 us-gaap:SalesRevenueNetMember ndvn:CustomerBMember 2021-01-01 2021-03-31 0001659183 ndvn:NorcoProfessionalServicesLLCMember 2021-01-01 2021-03-31 0001659183 ndvn:RelatedPartyMember 2020-12-31 0001659183 ndvn:EquityIncentivePlan2018Member 2021-01-01 2021-03-31 0001659183 ndvn:ConsultantMember ndvn:WarrantsMember 2020-12-31 0001659183 ndvn:ConsultantMember ndvn:WarrantsMember 2020-01-01 2020-12-31 0001659183 ndvn:TheGamwellContractMember ndvn:WarrantsMember 2021-01-01 2021-03-31 0001659183 ndvn:TheGamwellContractMember ndvn:WarrantsMember 2021-03-31 0001659183 2021-01-03 2021-03-31 0001659183 srt:MaximumMember 2021-01-01 2021-03-31 0001659183 srt:MinimumMember 2021-01-01 2021-03-31 0001659183 ndvn:SeveralInvestorsMember 2021-01-01 2021-03-31 0001659183 ndvn:SeveralInvestorsMember 2020-12-31 0001659183 ndvn:RelatedPartyMember 2021-03-31 0001659183 ndvn:SeveralInvestorsMember 2021-03-31 0001659183 us-gaap:InvestorMember 2020-05-02 0001659183 us-gaap:InvestorMember 2020-04-01 2020-05-02 0001659183 ndvn:FactoringCreditFacilityMember 2021-01-01 2021-03-31 0001659183 ndvn:ServiceContractsMember 2021-01-01 2021-03-31 0001659183 ndvn:ServiceContractsMember 2021-03-31 0001659183 ndvn:SoftwareLicenseMember 2021-03-31 0001659183 ndvn:SoftwareLicenseMember 2020-12-31 0001659183 ndvn:EquipmentAndSoftwareMember 2021-03-31 0001659183 ndvn:EquipmentAndSoftwareMember 2020-12-31 0001659183 ndvn:CommonStocksMember 2021-01-01 2021-03-31 0001659183 ndvn:PaycheckProtectionProgramMember 2020-05-02 0001659183 ndvn:PaycheckProtectionProgramMember 2021-01-01 2021-03-31 0001659183 ndvn:CommonStocksMember 2020-01-01 2020-03-31 0001659183 us-gaap:RetainedEarningsMember 2021-03-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001659183 us-gaap:CommonStockMember 2021-03-31 0001659183 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001659183 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001659183 us-gaap:RetainedEarningsMember 2020-12-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001659183 us-gaap:CommonStockMember 2020-12-31 0001659183 2020-03-31 0001659183 us-gaap:RetainedEarningsMember 2020-03-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001659183 us-gaap:CommonStockMember 2020-03-31 0001659183 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001659183 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001659183 2019-12-31 0001659183 us-gaap:RetainedEarningsMember 2019-12-31 0001659183 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001659183 us-gaap:CommonStockMember 2019-12-31 0001659183 2020-01-01 2020-03-31 0001659183 2020-12-31 0001659183 2021-03-31 0001659183 2021-05-13 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure nDivision Inc. 0001659183 10-Q false --12-31 true false true Yes 2021-03-31 Non-accelerated Filer Q1 2021 true 42648225 true false Yes

1721369

1806606

498220

531244

229783

121339

2449372

2459189

517304 540918

404682

455320

416344

441940

821026

897260

3787702

3897367

257530

153427

514618

373487

702803

870184

634244

514678

3800

18102

87887

105615

170199

125449

2371081

2160942

76256

195822

923241

734282

328154

336520

329774

380209

1657425

1646833

42585

42500

8077882

7160175

-8361271

-7113083

-240804

89592

3787702

3897367

10000

26000

0.001

20000000

0.001

180000000

42584886

42499783

42584886

42499783

1377454

1666890

1142023 1020152

646738

235431

1370594

735953

1370594

735953

-1135163

-89215

113236

30047

211

-113025

-30047

-1248188

-119262

-1248188

-119262

-0.03

-0.00

42519640

41249783

41250

6037767

-5614157

464860

0 145797 0 145797

-119262

41249783

41250

6183564

-5733419

491395

42499783

42500

7160175

-7113083

0 297417 0 297417 0 620375 0 620375 85103 85 -85 0 0

-1248188

42584886

42585

8077882

-8361271

100463

113239

16000

8190

70567

25596 22092

297417

145797

49024

74973

-154677

-22303

245234

1186

-167381

-396361

-26094

-10064

-824039

-198893

14302

12413

2741

-14302

-15154

785000

-31896 -64714

753104

-64714

-85237

-278761

1757695

1478934

10332

6278

85 0 26211 115968

620375

<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN">nDivision Inc. (“nDivision” or the “Company”) was incorporated under the laws of the state of Nevada. nDivision’s registered office is located at 7301 N. State Highway 161, Suite 100, Irving, TX, 75039. The Company provides managed IT services and project-based professional services in the information technology industry, selling its services directly to customers and through global service providers (GSP). The Company operates in most states of the United States of America.</div>

<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN">The Company has experienced significant losses and negative cash flows from operations in the past. Management has secured new managed services contracts, implemented a strategy which includes cost reduction efforts, as well as identifying strategic acquisitions to improve the overall profitability and cash flows of the Company. During the three months ended March 31, 2021, the Company received proceeds from the issuance of convertible notes payable of approximately $785,000. The Company also has working capital of $78,291 at March 31, 2021. Management intends to finance operating costs over the next twelve months from the date of the issuance of these consolidated financial statements with existing cash on hand and expected cash flow from operations. Management believes the expected cash flow from operations, and cash on hand will be sufficient to finance operations over the next twelve months from the date of this report. In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company has transitioned its operations to 100% work from home and there has been minimal impact to our internal operations from the transition. The Company is unable to determine if there will be a material future impact to its customers’ operations and ultimately an impact to the Company’s overall revenues.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Basis of Presentation   The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K filed on March 30, 2021 from which the accompanying December 31, 2020 numbers are derived.   Principles of Consolidation   The unaudited condensed consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, nDivision Services Inc. (incorporated in the state of Texas). All significant inter-company accounts and transactions are eliminated in consolidation.    Use of Estimates   Management uses estimates and assumptions in preparing these unaudited condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.   Revenue Recognition   For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.   The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as managed services and professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid.   The Company has elected the following practical expedients in applying ASC 606:   Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.   Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration.   Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer.   Cash and Cash Equivalents   For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.   The Company’s cash balances are maintained at one bank. Balances are insured by the Federal Deposit Insurance Corporation subject to certain limitations.   Accounts Receivable   Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables.   Intangible Assets   Customer contracts acquired were recorded at their estimated fair value at the date of acquisition and are being amortized over their estimated useful life of five years using the straight-line method.   Impairment of Long-lived Assets   The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company did not record any impairment during the three months ended March 31, 2021 and 2020.   Paycheck Protection Note Payable   The Company received a loan from the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the amount of $710,500. The loan is subject to a note dated May 2, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act. The loan may be repaid at any time with no prepayment penalty. The Company has not been required to make installment payments as of the date of this report.   Concentration of Risk   Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and accounts receivable. See Note 14 for significant customer concentration disclosure.   Cash is maintained with one major financial institution in the United States and may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and, therefore, bear minimal risk.   Equipment and Software Licenses   Equipment and software licenses are stated at cost. Depreciation is calculated using the straight-line method over an estimated useful life of one to ten years.   Convertible Debt and Securities   The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence.   Earnings and Loss per Share   Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were approximately 15,387,000 of common stock equivalents excluded for the three months ended March 31, 2021 and 6,949,000 of common stock equivalents excluded for the three months ended March 31, 2020, respectively because their effect is anti-dilutive.   Marketing Costs   Marketing costs, which are expensed as incurred, totaled approximately $158,859 for the three months ended March 31, 2021 and $5,091 for the three months ended March 31, 2020, respectively and is included in selling, general and administrative expenses.   Stock-Based Compensation   Compensation expense related to share-based transactions, including employee stock options, is measured in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense.   See Note 12 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation.   Leases   The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets.   Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.   Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The interest element of the finance leases are accounted for as finance costs and expensed over the lease term using the effective interest rate method.   Income Taxes   The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.   The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.   The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.   The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statement of operations. As of March 31, 2021, no accrued interest or penalties are included on the related tax liability line in the balance sheet.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Equipment and software licenses consist of the following:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Equipment and software</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">626,111</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">599,900</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Software licenses</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,302,141</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,302,141</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,928,252</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,902,041</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less - Accumulated depreciation and amortization</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(1,410,948 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(1,361,123 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">517,304</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">540,918</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr></table>   Depreciation and amortization expense related to assets for the three months ended March 31, 2021 and 2020 was approximately $49,825 and $62,601, respectively.   Included in the above paragraph is depreciation and amortization expense related to leased assets for the three months ended March 31, 2021 and 2020 of approximately $40,622 and $43,562, respectively.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Intangible Assets   As of March 31, 2021   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"> Useful Life</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Cost</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Accumulated Amortization</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Net Book Value</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td></td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Service Contracts</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;"> 5</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,012,335</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">607,653</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">404,682</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table>   There was approximately $50,638 of amortization expense for each of the three month periods ended March 31, 2021 and 2020. Service contracts are amortized based on the future undiscounted cash flows or straight – line basis over estimated remaining useful lives of five years.   Over the next three fiscal years annual amortization expense for these finite life intangible assets will total approximately $404,682 as follows: remainder of fiscal 2021 - $151,914, fiscal 2022 - $202,551, fiscal 2023 - $50,217.   Long-lived assets, including purchased intangibles subject to amortization, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company regularly evaluates whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. As of March 31, 2021, the Company has not recorded any impairments.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued compensation</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">258,929</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">138,707</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Accrued interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">50,638</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">23,185</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued sales tax</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">7,368</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">23,525</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Accrued franchise tax</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">16,010</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11,832</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued professional fees and other payables</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">181,673</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">176,238</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Total accrued liabilities</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">514,618</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">373,487</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN">The Company has agreements with an unrelated third party for factoring of specific accounts receivable. Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. The agreement provides for an advanced rate of 90% with a fee of 1.9% to be charged on the gross face amount of the invoices purchased for 30 days, and an additional 0.06% charge for each additional day until the invoice(s) are paid. The Company has retained late payment and credit risk related to the factored receivables and therefore continues to recognize the factored receivables in their entirety on its balance sheet. The Company has not factored any receivables under this agreement for the three months ended March 31, 2021 and 2020.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">On May 2, 2020, the Company entered into a Paycheck Protection Program loan for $710,500 in connection with the CARES Act related to COVID-19. $634,244 of the Paycheck Protection Program loan is classified as current as the Company has not been required to make the installment payments. The promissory note has a fixed payment schedule, with a deferral period for loan payments of either (1) the date that SBA remits the borrower's loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower's loan forgiveness covered period. Therefore estimated commencing payment date is ten months after the 24-week covered period. A final payment for the unpaid principal and accrued interest will be payable no later than May 2, 2022. The note will bear interest at a rate of 1.00% per annum and is deferred for the first six months of the loan. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount, if any. </div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company entered several promissory notes with various investors of the Company with a face value of $1,835,000 of which $200,000 is from a related party (“the Notes”) with $785,000 raised during the three months ended March 31, 2021 and $1,050,000 raised during the year ended December 31, 2020. The Notes had an initial beneficial conversion feature valued at $956,675, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. For the three month’s ended March 31, 2021, the Company amortized $24,334 of the discount to interest expense. The notes have an interest rate of 8%. The principle and interest of the notes are due in full beginning September 2022 through March 2023 or can be converted into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a debt or equity offering that occurs subsequent to the date of the closing of the offering that results in gross offering proceeds of at least Five Million Dollars.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company finances certain property and equipment using finance leases. The finance lease obligations represent the present value of the minimum lease payments, net of imputed interest. The finance lease obligations are secured by the underlying leased assets. Leases are payable in monthly installments ranging from $354 to $4,397 including interest, ranging from 3.6% to 12% per annum.   Future minimum lease payments, including principle and interest, under the finance leases for subsequent years are as follows:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: 1px solid;vertical-align:top;"> Year ended</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;" colspan="2">  </td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Remainder of 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">127,749</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2022</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">155,642</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2023</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">136,058</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2024</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">117,774</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2025</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">43,970</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">581,193</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less: interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(81,220 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Present value of net minimum lease payments</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">499,973</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Short term</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">170,199</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Long term total</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">329,774</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr></table>   Lease payments for the three months ended March 31, 2021 and 2020 aggregated approximately $43,057 and $69,745, respectively.   The finance lease obligations are secured by underlying leased assets with a net book value of approximately $494,638 and $509,050 as of March 31, 2021 and December 31, 2020, respectively.   Operating Lease   The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option will result in an economic penalty. All of the Company’s real estate leases are classified as operating leases.   Most real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term for an additional four to five years. The exercise of lease renewal options is at the Company’s discretion. The Company evaluates renewal options at lease inception and on an ongoing basis and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.   The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.   The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2021 are:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:bottom;"> Weighted average remaining lease term</td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> 44 Months</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Weighted average incremental borrowing rate</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">5.0</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table>   The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized in the unaudited condensed consolidated balance sheet as of March 31, 2021:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Remainder of 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">73,998</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2022</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">129,392</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2023</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">131,859</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2024</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">120,871</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total undiscounted future minimum lease payments</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">456,120</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less: Imputed interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(40,079 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Present value of operating lease obligation</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">416,041</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table>   The Company has one leased facility which is office, manufacturing, and warehouse space. The Company is responsible for real estate taxes, utilities, and repairs under the terms of certain of the operating leases. Therefore, all lease and non-lease components are combined and accounted for as single lease component.   For the three months ended March 31, 2021, the components of lease expense, included in cost of services and general and administrative expenses and the related interest expense in the consolidated statements of operations income, are as follows:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Three months ended March 31, 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Three months ended March 31, 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> Operating lease cost:</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Operating lease cost</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,617</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,119</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Financing lease cost:</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Amortization of financed lease assets</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">26,200</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">43,562</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Interest expense</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">5,417</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">3,997</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total lease cost</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,617</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">47,559</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="vertical-align:top;"> Number of options outstanding:</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2018 Equity Incentive Plan</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">7,726,677</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Options granted not part of a shareholder approved plan</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,200,000</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> March 31, 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">9,926,677</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr></table>   The Board of Directors approved the Company’s 2018 Equity Incentive Plan (the “2018 Plan”). The purpose of the 2018 Plan is to provide additional incentives to select persons who can make, are making, and continue to make substantial contributions to the growth and success of the Company, to attract and retain the employment and services of such persons, and to encourage and reward such contributions, by providing these individuals with an opportunity to acquire or increase stock ownership in the Company through either the grant of options or restricted stock. The 2018 Plan is administered by the Compensation Committee or such other committee as is appointed by the Board of Directors pursuant to the 2018 Plan (the “Committee”). The Committee has full authority to administer and interpret the provisions of the 2018 Plan including, but not limited to, the authority to make all determinations with regard to the terms and conditions of an award made under the 2018 Plan. The maximum number of shares that may be granted under the 2018 Plan is 8,000,000. This number is subject to adjustment to reflect changes in the capital structure or organization of the Company.   The following table reflects the stock options for the three months ended March 31, 2021:   A summary of stock option activity is as follows:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="vertical-align:top;"> Number of options outstanding:</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Beginning of year</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">9,601,677</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Granted</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">500,000</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Exercised</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(175,000 </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Forfeited</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> March 31, 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">9,926,677</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Number of options exercisable at end of period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">6,953,076</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Number of options available for grant at end of period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">273,323</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Weighted average option prices per share:</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.40</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Granted during the period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.56</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Exercised during the period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.375</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Forfeited during the period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Outstanding at end of the period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0.39</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Exercisable at end of period</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">0.40</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr></table>   Stock-based compensation expense attributable to stock options was $180,000 for the three month period ended March 31, 2021 and $145,797 for the three month period ended March 31, 2020. As of March 31, 2021, there was approximately $1,170,000 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 5 years.   During the three month period ended March 31, 2021, the Company granted options to purchase 500,000 shares of common stock with an average vesting period of 3 years, an average expected life of 6.5 years and an average exercise price of $0.56 per common share. Total value was $243,964.   The Company did not issue any options or warrants during the three month period ended March 31, 2020.   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Expected option life (years)</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">6.5</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Expected stock price volatility</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">117</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Expected dividend yield</td> <td style="width:1%;white-space: nowrap;">  </td> <td colspan="2"> —</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;"> %</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Risk-free interest rate</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1.15</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table>   During the year ended December 31, 2020, the Company issued a warrant to a related party consultant to purchase up to 750,000 shares of common stock at a per common share price of $0.625. The consulting contract is for eighteen months and the warrant term is eighteen months. The warrant vests immediately and the total value was approximately $174,000.   The Gamwell contract acquisition warrants remain outstanding. The warrant can be exercised for 122,752 of the Company’s common stock at an exercise price of $0.375 per share and expire April 23, 2028.</div>

<div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN">The Company contracted with Norco Professional Services, LLC. (“Norco”) to provide consulting services. The Company spent approximately $22,500 for the three-month period ended March 31, 2021. Norco is owned by Andrew J. Norstrud, who joined the Company in January of 2019, as the Company’s Chief Financial Officer. The Company continues to contract Andrew Norstrud’s services through Norco. During the year ended December 31, 2020, the Company obtained $200,000 in debt and granted a warrant to a related party for consulting services over the following 18 months, see note 10 and 12 for additional related party transaction details. The above related party transactions are not necessarily indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent parties.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company had significant customers in each of the quarters presented. A significant customer is defined as one that makes up ten percent or more of total revenues in a particular quarter or ten percent of outstanding accounts receivable balance as of end of the period.   Net revenues for the three months ended March 31, 2021 and 2020 include revenues from significant customers as follows:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"> Three Month Ended March 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Customer A</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">54</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">40</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Customer B</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">32</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table>   Accounts receivable balances as of March 31, 2021 and December 31, 2020 from significant customers are as follows:   <table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Customer A</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">93</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">79</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Customer C</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">14</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Subsequent to March 31, 2021, the Company entered into several promissory notes with various investors of the Company with a face value of $405,000 (“the Notes”). The Notes have a beneficial conversion feature valued at $405,000, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. The notes have an interest rate of 8% and are payable quarterly and twelve months after issuance, 1/12 of the principle will repaid monthly. The principal and interest of the note is convertible into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a Qualified Offering.   Effective on May 5, 2021 the board approved an amended and restated stock option plan that increases the available options from 8,000,000 shares to 18,000,000 shares, which was approved by majority written consent of the shareholders.   On May 6, 2021, the Company issued 300,000 common stock options to a new board member at an exercised price of $0.78 per share. The option vests monthly over 36 months.    On May 11, 2021, the Company issued 63,339 shares of common stock to an investor that converted $25,000 of principal and $336 of interest in to shares per the Notes agreement.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K filed on March 30, 2021 from which the accompanying December 31, 2020 numbers are derived.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The unaudited condensed consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, nDivision Services Inc. (incorporated in the state of Texas). All significant inter-company accounts and transactions are eliminated in consolidation.  </div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Management uses estimates and assumptions in preparing these unaudited condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.   The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as managed services and professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid.   The Company has elected the following practical expedients in applying ASC 606:   Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.   Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration.   Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.   The Company’s cash balances are maintained at one bank. Balances are insured by the Federal Deposit Insurance Corporation subject to certain limitations.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Customer contracts acquired were recorded at their estimated fair value at the date of acquisition and are being amortized over their estimated useful life of five years using the straight-line method.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company did not record any impairment during the three months ended March 31, 2021 and 2020.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company received a loan from the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the amount of $710,500. The loan is subject to a note dated May 2, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act. The loan may be repaid at any time with no prepayment penalty. The Company has not been required to make installment payments as of the date of this report.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and accounts receivable. See Note 14 for significant customer concentration disclosure.   Cash is maintained with one major financial institution in the United States and may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and, therefore, bear minimal risk.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Equipment and software licenses are stated at cost. Depreciation is calculated using the straight-line method over an estimated useful life of one to ten years.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were approximately 15,387,000 of common stock equivalents excluded for the three months ended March 31, 2021 and 6,949,000 of common stock equivalents excluded for the three months ended March 31, 2020, respectively because their effect is anti-dilutive.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Marketing costs, which are expensed as incurred, totaled approximately $158,859 for the three months ended March 31, 2021 and $5,091 for the three months ended March 31, 2020, respectively and is included in selling, general and administrative expenses.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">Compensation expense related to share-based transactions, including employee stock options, is measured in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense.   See Note 12 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets.   Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.   Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The interest element of the finance leases are accounted for as finance costs and expensed over the lease term using the effective interest rate method.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN">The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.   The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.   The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.   The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statement of operations. As of March 31, 2021, no accrued interest or penalties are included on the related tax liability line in the balance sheet.</div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Equipment and software</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">626,111</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">599,900</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Software licenses</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,302,141</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,302,141</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,928,252</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,902,041</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less - Accumulated depreciation and amortization</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(1,410,948 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(1,361,123 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">517,304</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">540,918</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"> Useful Life</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Cost</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Accumulated Amortization</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Net Book Value</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td></td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Service Contracts</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;"> 5</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,012,335</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">607,653</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">404,682</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued compensation</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">258,929</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">138,707</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Accrued interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">50,638</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">23,185</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued sales tax</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">7,368</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">23,525</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Accrued franchise tax</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">16,010</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11,832</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Accrued professional fees and other payables</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">181,673</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">176,238</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Total accrued liabilities</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">514,618</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">373,487</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: 1px solid;vertical-align:top;"> Year ended</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;" colspan="2">  </td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Remainder of 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">127,749</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2022</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">155,642</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2023</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">136,058</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2024</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">117,774</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2025</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">43,970</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">581,193</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less: interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(81,220 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Present value of net minimum lease payments</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">499,973</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Short term</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">170,199</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Long term total</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">329,774</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:bottom;"> Weighted average remaining lease term</td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> 44 Months</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Weighted average incremental borrowing rate</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">5.0</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Remainder of 2021</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">73,998</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2022</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">129,392</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> 2023</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">131,859</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> 2024</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">120,871</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total undiscounted future minimum lease payments</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">456,120</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Less: Imputed interest</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(40,079 </td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Present value of operating lease obligation</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">416,041</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td></td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Three months ended March 31, 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> Three months ended March 31, 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> Operating lease cost:</td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Operating lease cost</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,617</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,119</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Financing lease cost:</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Amortization of financed lease assets</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">26,200</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">43,562</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Interest expense</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">5,417</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">3,997</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Total lease cost</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">31,617</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">47,559</td> <td style="width:1%;white-space: nowrap;">  </td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" colspan="2" style="width:9%;">  </td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Expected option life (years)</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">6.5</td> <td style="width:1%;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Expected stock price volatility</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">117</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Expected dividend yield</td> <td style="width:1%;white-space: nowrap;">  </td> <td colspan="2"> —</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;"> %</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Risk-free interest rate</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1.15</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"> Three Month Ended March 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Customer A</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">54</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">40</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Customer B</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">32</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div>

<div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> March 31,</td> <td style="white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> December 31,</td> <td style="white-space: nowrap;">  </td></tr> <tr style="height:15px"> <td>  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2021</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td> <td style="white-space: nowrap;">  </td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> 2020</td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;">  </td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> Customer A</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">93</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">79</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> Customer C</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">0</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;">  </td> <td style="width:1%;white-space: nowrap;">  </td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">14</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div>

785000

78291

6949000

5091

158859

0.01

710500

The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act

15387000

1902041

1928252

1361123

1410948

540918

517304

599900

626111

1302141

62601

49825

43562

40622

1012335

607653

404682

P5Y

50638

151914

202551

50217

404682

138707

258929

50638

23185

23525

7368

11832 16010

176238

181673

373487

514618

The agreement provides for an advanced rate of 90% with a fee of 1.9% to be charged on the gross face amount of the invoices purchased for 30 days, and an additional 0.06% charge for each additional day until the invoice(s) are paid

634244

0.01

710500

785000

200000

1050000

956675

24334

0.08

0.40

1835000

0.25

127749

155642

136058

117774

43970

581193

-81220

499973

170199

329774

P44M

0.05

73998

129392

131859

120871

456120

-40079

416041

31119

31617

43562

26200

3997

5417

47559

31617

43057

69745

509050

494638

354

0.036

4397

0.12

7726677

2200000 9926677 9601677

500000

-175000

9926677 6953076 273323 0.40

0.56

0.375

0 0.39 0.40

P6Y5M30D

1.17

0.0115

145797

180000

1170000

P6Y5M30D P5Y

122752

243964 0.56 0.375

2028-04-23

P3Y

P18M 0.625

750000

174000

8000000

200000

22500

0.11

0.4

0.32

0.54

0.79

0.93

0.14

The notes have an interest rate of 8% and are payable quarterly and twelve months after issuance, 1/12 of the principle will repaid monthly

0.40

405000

0.08

The board approved an amended and restated stock option plan that increases the available options from 8,000,000 shares to 18,000,000 shares, which was approved by majority written consent of the shareholders

63339

25000

336

P36M

300000

0.78

EX-101.SCH 7 ndvn-20210331.xsd XBRL TAXONOMY EXTENSION SCHEMA 000001 - Document - Cover link:presentationLink link:calculationLink link:definitionLink 000002 - Statement - CONDENSED CONSOLDIATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 000003 - Statement - CONDENSED CONSOLDIATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 000004 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 000005 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited) link:presentationLink link:calculationLink link:definitionLink 000006 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) link:presentationLink link:calculationLink link:definitionLink 000007 - Disclosure - DESCRIPTION OF BUSINESS link:presentationLink link:calculationLink link:definitionLink 000008 - Disclosure - LIQUIDITY link:presentationLink link:calculationLink link:definitionLink 000009 - Disclosure - SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 000010 - Disclosure - RECENT ACCOUNTING PRONOUNCEMENTS link:presentationLink link:calculationLink link:definitionLink 000011 - Disclosure - EQUIPMENT AND SOFTWARE LICENSES link:presentationLink link:calculationLink link:definitionLink 000012 - Disclosure - INTANGIBLE ASSETS link:presentationLink link:calculationLink link:definitionLink 000013 - Disclosure - ACCRUED LIABILITIES link:presentationLink link:calculationLink link:definitionLink 000014 - Disclosure - FACTORING CREDIT FACILITY link:presentationLink link:calculationLink link:definitionLink 000015 - Disclosure - NOTE PAYABLE link:presentationLink link:calculationLink link:definitionLink 000016 - Disclosure - CONVERTIBLE NOTES PAYABLE link:presentationLink link:calculationLink link:definitionLink 000017 - Disclosure - LEASE OBLIGATIONS link:presentationLink link:calculationLink link:definitionLink 000018 - Disclosure - STOCK BASED COMPENSATION link:presentationLink link:calculationLink link:definitionLink 000019 - Disclosure - RELATED PARTY TRANSACTIONS link:presentationLink link:calculationLink link:definitionLink 000020 - Disclosure - SIGNIFICANT CUSTOMER link:presentationLink link:calculationLink link:definitionLink 000021 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 000022 - Disclosure - SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 000023 - Disclosure - EQUIPMENT AND SOFTWARE LICENSES (Tables) link:presentationLink link:calculationLink link:definitionLink 000024 - Disclosure - INTANGIBLE ASSETS (Tables) link:presentationLink link:calculationLink link:definitionLink 000025 - Disclosure - ACCRUED LIABILITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 000026 - Disclosure - LEASE OBLIGATIONS (Tables) link:presentationLink link:calculationLink link:definitionLink 000027 - Disclosure - STOCK BASED COMPENSATION (Tables) link:presentationLink link:calculationLink link:definitionLink 000028 - Disclosure - SIGNIFICANT CUSTOMERS (Tables) link:presentationLink link:calculationLink link:definitionLink 000029 - Disclosure - LIQUIDITY (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000030 - Disclosure - SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000031 - Disclosure - EQUIPMENT AND SOFTWARE LICENSES (Details) link:presentationLink link:calculationLink link:definitionLink 000032 - Disclosure - EQUIPMENT AND SOFTWARE LICENSES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000033 - Disclosure - INTANGIBLE ASSETS (Details) link:presentationLink link:calculationLink link:definitionLink 000034 - Disclosure - INTANGIBLE ASSETS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000035 - Disclosure - ACCRUED LIABILITIES (Details) link:presentationLink link:calculationLink link:definitionLink 000036 - Disclosure - FACTORING CREDIT FACILITY (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000037 - Disclosure - NOTE PAYABLE (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000038 - Disclosure - CONVERTIBLE NOTES PAYABLE (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000039 - Disclosure - LEASE OBLIGATIONS (Details) link:presentationLink link:calculationLink link:definitionLink 000040 - Disclosure - LEASE OBLIGATIONS (Details 1) link:presentationLink link:calculationLink link:definitionLink 000041 - Disclosure - LEASE OBLIGATIONS (Details 2) link:presentationLink link:calculationLink link:definitionLink 000042 - Disclosure - LEASE OBLIGATIONS (Details 3) link:presentationLink link:calculationLink link:definitionLink 000043 - Disclosure - LEASE OBLIGATIONS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000044 - Disclosure - STOCK BASED COMPENSATION (Details) link:presentationLink link:calculationLink link:definitionLink 000045 - Disclosure - STOCK BASED COMPENSATION (Details 1) link:presentationLink link:calculationLink link:definitionLink 000046 - Disclosure - STOCK BASED COMPENSATION (Details 2) link:presentationLink link:calculationLink link:definitionLink 000047 - Disclosure - STOCK BASED COMPENSATION (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000048 - Disclosure - RELATED PARTY TRANSACTIONS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 000049 - Disclosure - SIGNIFICANT CUSTOMERS (Details) link:presentationLink link:calculationLink link:definitionLink 000050 - Disclosure - SUBSEQUENT EVENTS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.LAB 8 ndvn-20210331_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Cover [Abstract] Entity Registrant Name Entity Central Index Key Document Type Amendment Flag Current Fiscal Year End Date Entity Small Business Entity Shell Company Entity Emerging Growth Company Entity Current Reporting Status Document Period End Date Entity Filer Category Document Fiscal Period Focus Document Fiscal Year Focus Entity Ex Transition Period Entity Common Stock Shares Outstanding Document Quarterly Report Document Transition Report Entity Interactive Data Current CONDENSED CONSOLDIATED BALANCE SHEETS ASSETS Current assets Cash Accounts receivable, net (allowance for doubtful accounts was $10,000 at March 31, 2021 and $26,000 at December 31, 2020) Prepaid expenses Total current assets [Assets, Current] Equipment and software licenses - at cost, less accumulated depreciation and amortization Other assets Intangible asset, less accumulated amortization Right-of-use asset Total other assets [Other Assets] Total assets [Assets] LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities Accounts payable Accrued liabilities Deferred revenue Current portion of note payable Current portion of acquisition note payable Current portion of operating lease payable Current portion of finance lease obligations Total current liabilities [Liabilities, Current] Note payable Convertible notes payable, net of discount Operating lease payable, net of current portion Finance lease obligations, net of current portion Total long-term liabilities [Liabilities, Noncurrent] Stockholders' (deficit) equity Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding Common stock, $0.001 par value, 180,000,000 shares authorized, and 42,584,886 and 42,499,783 shares issued and outstanding, respectively Additional paid in capital Accumulated deficit Total stockholders' (deficit) equity [Stockholders' Equity Attributable to Parent] Total liabilities and stockholders' (deficit) equity [Liabilities and Equity] Current assets Allowance for doubtful debts Stockholder's equity Preferred stock, shares par value Preferred stock, shares authorized Common stock, shares par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Service revenue Service costs Gross profit [Gross Profit] Selling, general and administrative expenses Operating expenses [Operating Expenses] Loss from operations [Operating Income (Loss)] Other (expense) income Interest expense [Interest Expense] Other income Other (expense) income [Other Nonoperating Income (Expense)] Net loss before income tax Income tax expense Net loss Basic and diluted loss per share Weighted average shares outstanding CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited) Statement [Table] Statement [Line Items] Statement Equity Components [Axis] Common Stock Additional Paid-In Capital Accumulated Deficit Balance, shares [Shares, Issued] Balance, amount Amortization of stock option and warrant expense Net loss Beneficial conversion feature Exercise of stock options, shares Exercise of stock options, amount Balance, shares Balance, amount CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization Provision for doubtful accounts [Accounts Receivable, Credit Loss Expense (Reversal)] Amortization of beneficial conversion feature Non-cash lease expense Stock based compensation Changes in assets and liabilities Accounts receivable Prepaid expenses [Increase (Decrease) in Prepaid Expense] Accounts payable and accrued liabilities Deferred revenue [Increase (Decrease) in Deferred Revenue] Operating lease payable Net cash used in operating activities [Net Cash Provided by (Used in) Operating Activities] Cash flows from investing activities Repayment of debt related to acquisition [Repayments of Debt] Acquisition of equipment and software licenses [Payments to Acquire Property, Plant, and Equipment] Net cash used in investing activities [Net Cash Provided by (Used in) Investing Activities] Cash flows from financing activities Proceeds from issuance of notes payable Repayment of finance lease obligations Net cash provided by (used in) financing activities [Net Cash Provided by (Used in) Financing Activities] Net decrease in cash Cash, beginning of period Cash, end of period Supplemental cash flow disclosures Interest paid Non-cash financing activities Cashless exercise of options Purchase of equipment under capital lease Beneficial conversion feature [Business Combination, Consideration Transferred] DESCRIPTION OF BUSINESS 1. DESCRIPTION OF BUSINESS LIQUIDITY 2. LIQUIDITY SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3. SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECENT ACCOUNTING PRONOUNCEMENTS 4. RECENT ACCOUNTING PRONOUNCEMENTS EQUIPMENT AND SOFTWARE LICENSES 5. EQUIPMENT AND SOFTWARE LICENSES INTANGIBLE ASSETS 6. INTANGIBLE ASSETS ACCRUED LIABILITIES 7. ACCRUED LIABILITIES FACTORING CREDIT FACILITY 8. FACTORING CREDIT FACILITY NOTE PAYABLE 9. NOTE PAYABLE CONVERTIBLE NOTES PAYABLE 10. CONVERTIBLE NOTES PAYABLE LEASE OBLIGATIONS 11. LEASE OBLIGATIONS STOCK BASED COMPENSATION 12. STOCK BASED COMPENSATION RELATED PARTY TRANSACTIONS 13. RELATED PARTY TRANSACTIONS SIGNIFICANT CUSTOMER 14. SIGNIFICANT CUSTOMERS SUBSEQUENT EVENTS 15. SUBSEQUENT EVENTS Basis of Presentation Principles of Consolidation Use of Estimates Revenue Recognition Cash and Cash Equivalents Accounts Receivable Intangible Assets Impairment of Long-lived Assets Paycheck Protection Note Payable Concentration of Risk Equipment and Software Licenses Convertible Debt and Securities Earnings and Loss per Share Marketing Costs Stock-Based Compensation Leases Income Taxes Schedule of equipment and software licenses Intangible Assets Schedule of Intangible Assets and Goodwill [Table Text Block] Schedule of accrued liabilities LEASE OBLIGATIONS (Tables) Schedule of future minimum lease payments Schedule of weighted average remaining lease term and discount rate for operating leases Schedule of minimum lease commitments Schedule of consolidated statements of operations income Schedule of stock based compensation EX-101.CAL 9 ndvn-20210331_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.PRE 10 ndvn-20210331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE EX-101.DEF 11 ndvn-20210331_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE XML 12 R1.htm IDEA: XBRL DOCUMENT

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2021	May 13, 2021
Cover [Abstract]
Entity Registrant Name	nDivision Inc.
Entity Central Index Key	0001659183
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		42,648,225
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

XML 13 R2.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLDIATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash	$ 1,721,369	$ 1,806,606
Accounts receivable, net (allowance for doubtful accounts was $10,000 at March 31, 2021 and $26,000 at December 31, 2020)	498,220	531,244
Prepaid expenses	229,783	121,339
Total current assets	2,449,372	2,459,189
Equipment and software licenses - at cost, less accumulated depreciation and amortization	517,304	540,918
Other assets
Intangible asset, less accumulated amortization	404,682	455,320
Right-of-use asset	416,344	441,940
Total other assets	821,026	897,260
Total assets	3,787,702	3,897,367
Current liabilities
Accounts payable	257,530	153,427
Accrued liabilities	514,618	373,487
Deferred revenue	702,803	870,184
Current portion of note payable	634,244	514,678
Current portion of acquisition note payable	3,800	18,102
Current portion of operating lease payable	87,887	105,615
Current portion of finance lease obligations	170,199	125,449
Total current liabilities	2,371,081	2,160,942
Note payable	76,256	195,822
Convertible notes payable, net of discount	923,241	734,282
Operating lease payable, net of current portion	328,154	336,520
Finance lease obligations, net of current portion	329,774	380,209
Total long-term liabilities	1,657,425	1,646,833
Stockholders' (deficit) equity
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value, 180,000,000 shares authorized, and 42,584,886 and 42,499,783 shares issued and outstanding, respectively	42,585	42,500
Additional paid in capital	8,077,882	7,160,175
Accumulated deficit	(8,361,271)	(7,113,083)
Total stockholders' (deficit) equity	(240,804)	89,592
Total liabilities and stockholders' (deficit) equity	$ 3,787,702	$ 3,897,367

XML 14 R3.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLDIATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets
Allowance for doubtful debts	$ 10,000	$ 26,000
Stockholder's equity
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	42,584,886	42,499,783
Common stock, shares outstanding	42,584,886	42,499,783

XML 15 R4.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Service revenue	$ 1,377,454	$ 1,666,890
Service costs	1,142,023	1,020,152
Gross profit	235,431	646,738
Selling, general and administrative expenses	1,370,594	735,953
Operating expenses	1,370,594	735,953
Loss from operations	(1,135,163)	(89,215)
Other (expense) income
Interest expense	(113,236)	(30,047)
Other income	211	0
Other (expense) income	(113,025)	(30,047)
Net loss before income tax	(1,248,188)	(119,262)
Income tax expense	0	0
Net loss	$ (1,248,188)	$ (119,262)
Basic and diluted loss per share	$ (0.03)	$ (0.00)
Weighted average shares outstanding	42,519,640	41,249,783

XML 16 R5.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance, shares at Dec. 31, 2019		41,249,783
Balance, amount at Dec. 31, 2019	$ 464,860	$ 41,250	$ 6,037,767	$ (5,614,157)
Amortization of stock option and warrant expense	145,797	0	145,797	0
Net loss	(119,262)	$ 0	0	(119,262)
Balance, shares at Mar. 31, 2020		41,249,783
Balance, amount at Mar. 31, 2020	491,395	$ 41,250	6,183,564	(5,733,419)
Balance, shares at Dec. 31, 2020		42,499,783
Balance, amount at Dec. 31, 2020	89,592	$ 42,500	7,160,175	(7,113,083)
Amortization of stock option and warrant expense	297,417	0	297,417	0
Net loss	(1,248,188)	0	0	(1,248,188)
Beneficial conversion feature	620,375	$ 0	620,375	0
Exercise of stock options, shares		85,103
Exercise of stock options, amount	0	$ 85	(85)	0
Balance, shares at Mar. 31, 2021		42,584,886
Balance, amount at Mar. 31, 2021	$ (240,804)	$ 42,585	$ 8,077,882	$ (8,361,271)

- Definition

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

+ References + Details

XML 17 R6.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net loss	$ (1,248,188)	$ (119,262)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	100,463	113,239
Provision for doubtful accounts	(16,000)	(8,190)
Amortization of beneficial conversion feature	70,567	0
Non-cash lease expense	25,596	22,092
Stock based compensation	297,417	145,797
Changes in assets and liabilities
Accounts receivable	49,024	74,973
Prepaid expenses	(154,677)	(22,303)
Accounts payable and accrued liabilities	245,234	1,186
Deferred revenue	(167,381)	(396,361)
Operating lease payable	(26,094)	(10,064)
Net cash used in operating activities	(824,039)	(198,893)
Cash flows from investing activities
Repayment of debt related to acquisition	(14,302)	(12,413)
Acquisition of equipment and software licenses	0	(2,741)
Net cash used in investing activities	(14,302)	(15,154)
Cash flows from financing activities
Proceeds from issuance of notes payable	785,000	0
Repayment of finance lease obligations	(31,896)	(64,714)
Net cash provided by (used in) financing activities	753,104	(64,714)
Net decrease in cash	(85,237)	(278,761)
Cash, beginning of period	1,806,606	1,757,695
Cash, end of period	1,721,369	1,478,934
Supplemental cash flow disclosures
Interest paid	10,332	6,278
Non-cash financing activities
Cashless exercise of options	85	0
Purchase of equipment under capital lease	26,211	115,968
Beneficial conversion feature	$ 620,375	$ 0

XML 18 R7.htm IDEA: XBRL DOCUMENT

DESCRIPTION OF BUSINESS	3 Months Ended
DESCRIPTION OF BUSINESS	Mar. 31, 2021
DESCRIPTION OF BUSINESS
1. DESCRIPTION OF BUSINESS	nDivision Inc. (“nDivision” or the “Company”) was incorporated under the laws of the state of Nevada. nDivision’s registered office is located at 7301 N. State Highway 161, Suite 100, Irving, TX, 75039. The Company provides managed IT services and project-based professional services in the information technology industry, selling its services directly to customers and through global service providers (GSP). The Company operates in most states of the United States of America.

XML 19 R8.htm IDEA: XBRL DOCUMENT

LIQUIDITY	3 Months Ended
LIQUIDITY	Mar. 31, 2021
LIQUIDITY
2. LIQUIDITY	The Company has experienced significant losses and negative cash flows from operations in the past. Management has secured new managed services contracts, implemented a strategy which includes cost reduction efforts, as well as identifying strategic acquisitions to improve the overall profitability and cash flows of the Company. During the three months ended March 31, 2021, the Company received proceeds from the issuance of convertible notes payable of approximately $785,000. The Company also has working capital of $78,291 at March 31, 2021. Management intends to finance operating costs over the next twelve months from the date of the issuance of these consolidated financial statements with existing cash on hand and expected cash flow from operations. Management believes the expected cash flow from operations, and cash on hand will be sufficient to finance operations over the next twelve months from the date of this report. In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company has transitioned its operations to 100% work from home and there has been minimal impact to our internal operations from the transition. The Company is unable to determine if there will be a material future impact to its customers’ operations and ultimately an impact to the Company’s overall revenues.

XML 20 R9.htm IDEA: XBRL DOCUMENT

SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Mar. 31, 2021
SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K filed on March 30, 2021 from which the accompanying December 31, 2020 numbers are derived. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, nDivision Services Inc. (incorporated in the state of Texas). All significant inter-company accounts and transactions are eliminated in consolidation. Use of Estimates Management uses estimates and assumptions in preparing these unaudited condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Revenue Recognition For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as managed services and professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid. The Company has elected the following practical expedients in applying ASC 606: Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. Cash and Cash Equivalents For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company’s cash balances are maintained at one bank. Balances are insured by the Federal Deposit Insurance Corporation subject to certain limitations. Accounts Receivable Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables. Intangible Assets Customer contracts acquired were recorded at their estimated fair value at the date of acquisition and are being amortized over their estimated useful life of five years using the straight-line method. Impairment of Long-lived Assets The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company did not record any impairment during the three months ended March 31, 2021 and 2020. Paycheck Protection Note Payable The Company received a loan from the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the amount of $710,500. The loan is subject to a note dated May 2, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act. The loan may be repaid at any time with no prepayment penalty. The Company has not been required to make installment payments as of the date of this report. Concentration of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and accounts receivable. See Note 14 for significant customer concentration disclosure. Cash is maintained with one major financial institution in the United States and may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and, therefore, bear minimal risk. Equipment and Software Licenses Equipment and software licenses are stated at cost. Depreciation is calculated using the straight-line method over an estimated useful life of one to ten years. Convertible Debt and Securities The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence. Earnings and Loss per Share Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were approximately 15,387,000 of common stock equivalents excluded for the three months ended March 31, 2021 and 6,949,000 of common stock equivalents excluded for the three months ended March 31, 2020, respectively because their effect is anti-dilutive. Marketing Costs Marketing costs, which are expensed as incurred, totaled approximately $158,859 for the three months ended March 31, 2021 and $5,091 for the three months ended March 31, 2020, respectively and is included in selling, general and administrative expenses. Stock-Based Compensation Compensation expense related to share-based transactions, including employee stock options, is measured in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. See Note 12 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation. Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The interest element of the finance leases are accounted for as finance costs and expensed over the lease term using the effective interest rate method. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statement of operations. As of March 31, 2021, no accrued interest or penalties are included on the related tax liability line in the balance sheet.

XML 21 R10.htm IDEA: XBRL DOCUMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Mar. 31, 2021
RECENT ACCOUNTING PRONOUNCEMENTS
4. RECENT ACCOUNTING PRONOUNCEMENTS	*Recently Adopted Accounting Pronouncements* In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The new rules were effective for the Company in the first quarter of 2021. The Company determined that the adoption of this ASU had no impact on its consolidated financial statements. *New Accounting Pronouncements Not Yet Adopted* In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASC 326”), authoritative guidance amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model, which is a new impairment model based on expected losses. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity, which simplifies the guidance for certain convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. As a result, convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will be no longer available. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company expects the primary impacts of this new standard will be to increase the carrying value of its Convertible Debt and reduce its reported interest expense. In addition, the Company will be required to use the if-converted method for calculating diluted earnings per share. The Company is currently evaluating the impact the adoption of this standard will have on its condensed consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company’s present or future unaudited condensed consolidated financial statements.

XML 22 R11.htm IDEA: XBRL DOCUMENT

EQUIPMENT AND SOFTWARE LICENSES

3 Months Ended

Mar. 31, 2021

EQUIPMENT AND SOFTWARE LICENSES

5. EQUIPMENT AND SOFTWARE LICENSES

Equipment and software licenses consist of the following:

	March 31,			December 31,
	2021			2020
Equipment and software	$	626,111		$	599,900
Software licenses		1,302,141			1,302,141
		1,928,252			1,902,041
Less - Accumulated depreciation and amortization		(1,410,948	)		(1,361,123	)
	$	517,304		$	540,918

Depreciation and amortization expense related to assets for the three months ended March 31, 2021 and 2020 was approximately $49,825 and $62,601, respectively.

XML 23 R12.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2021

INTANGIBLE ASSETS

6. INTANGIBLE ASSETS

Intangible Assets

As of March 31, 2021

Useful Life

Cost

Accumulated

Amortization

Net

Book Value

Service Contracts

1,012,335

607,653

404,682

XML 24 R13.htm IDEA: XBRL DOCUMENT

ACCRUED LIABILITIES

3 Months Ended

Mar. 31, 2021

ACCRUED LIABILITIES

7. ACCRUED LIABILITIES

	March 31,		December 31,
	2021		2020
Accrued compensation	$	258,929	$	138,707
Accrued interest		50,638		23,185
Accrued sales tax		7,368		23,525
Accrued franchise tax		16,010		11,832
Accrued professional fees and other payables		181,673		176,238
Total accrued liabilities	$	514,618	$	373,487

XML 25 R14.htm IDEA: XBRL DOCUMENT

FACTORING CREDIT FACILITY	3 Months Ended
FACTORING CREDIT FACILITY	Mar. 31, 2021
FACTORING CREDIT FACILITY
8. FACTORING CREDIT FACILITY	The Company has agreements with an unrelated third party for factoring of specific accounts receivable. Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange for cash and is prevented from selling or pledging the receivables. The agreement provides for an advanced rate of 90% with a fee of 1.9% to be charged on the gross face amount of the invoices purchased for 30 days, and an additional 0.06% charge for each additional day until the invoice(s) are paid. The Company has retained late payment and credit risk related to the factored receivables and therefore continues to recognize the factored receivables in their entirety on its balance sheet. The Company has not factored any receivables under this agreement for the three months ended March 31, 2021 and 2020.

XML 26 R15.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE	3 Months Ended
NOTE PAYABLE	Mar. 31, 2021
NOTE PAYABLE
9. NOTE PAYABLE	On May 2, 2020, the Company entered into a Paycheck Protection Program loan for $710,500 in connection with the CARES Act related to COVID-19. $634,244 of the Paycheck Protection Program loan is classified as current as the Company has not been required to make the installment payments. The promissory note has a fixed payment schedule, with a deferral period for loan payments of either (1) the date that SBA remits the borrower's loan forgiveness amount to the lender or (2) if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower's loan forgiveness covered period. Therefore estimated commencing payment date is ten months after the 24-week covered period. A final payment for the unpaid principal and accrued interest will be payable no later than May 2, 2022. The note will bear interest at a rate of 1.00% per annum and is deferred for the first six months of the loan. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount, if any.

XML 27 R16.htm IDEA: XBRL DOCUMENT

CONVERTIBLE NOTES PAYABLE	3 Months Ended
CONVERTIBLE NOTES PAYABLE	Mar. 31, 2021
CONVERTIBLE NOTES PAYABLE
10. CONVERTIBLE NOTES PAYABLE	The Company entered several promissory notes with various investors of the Company with a face value of $1,835,000 of which $200,000 is from a related party (“the Notes”) with $785,000 raised during the three months ended March 31, 2021 and $1,050,000 raised during the year ended December 31, 2020. The Notes had an initial beneficial conversion feature valued at $956,675, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. For the three month’s ended March 31, 2021, the Company amortized $24,334 of the discount to interest expense. The notes have an interest rate of 8%. The principle and interest of the notes are due in full beginning September 2022 through March 2023 or can be converted into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a debt or equity offering that occurs subsequent to the date of the closing of the offering that results in gross offering proceeds of at least Five Million Dollars.

XML 28 R17.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2021

LEASE OBLIGATIONS

11. LEASE OBLIGATIONS

Future minimum lease payments, including principle and interest, under the finance leases for subsequent years are as follows:

Year ended
Remainder of 2021	$	127,749
2022		155,642
2023		136,058
2024		117,774
2025		43,970

Total		581,193
Less: interest		(81,220	)
Present value of net minimum lease payments		499,973

Short term		170,199
Long term total	$	329,774

Lease payments for the three months ended March 31, 2021 and 2020 aggregated approximately $43,057 and $69,745, respectively.

The finance lease obligations are secured by underlying leased assets with a net book value of approximately $494,638 and $509,050 as of March 31, 2021 and December 31, 2020, respectively.

Operating Lease

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2021 are:

Weighted average remaining lease term		44 Months
Weighted average incremental borrowing rate			5.0	%

Remainder of 2021	$	73,998
2022		129,392
2023		131,859
2024		120,871
Total undiscounted future minimum lease payments		456,120
Less: Imputed interest		(40,079	)
Present value of operating lease obligation	$	416,041

	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating lease cost:
Operating lease cost	$	31,617	$	31,119
Financing lease cost:
Amortization of financed lease assets	$	26,200	$	43,562
Interest expense		5,417		3,997
Total lease cost	$	31,617	$	47,559

XML 29 R18.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2021

STOCK BASED COMPENSATION

12. STOCK BASED COMPENSATION

Number of options outstanding:
2018 Equity Incentive Plan			7,726,677
Options granted not part of a shareholder approved plan			2,200,000

March 31, 2021			9,926,677

The following table reflects the stock options for the three months ended March 31, 2021:

A summary of stock option activity is as follows:

Number of options outstanding:
Beginning of year		9,601,677
Granted		500,000
Exercised		(175,000	)
Forfeited		-

March 31, 2021		9,926,677

Number of options exercisable at end of period		6,953,076
Number of options available for grant at end of period		273,323

Weighted average option prices per share:	$	0.40
Granted during the period		0.56
Exercised during the period		0.375
Forfeited during the period		-
Outstanding at end of the period		0.39
Exercisable at end of period	$	0.40

The Company did not issue any options or warrants during the three month period ended March 31, 2020.

	2021

Expected option life (years)		6.5
Expected stock price volatility		117	%
Expected dividend yield	—		%
Risk-free interest rate		1.15	%

XML 30 R19.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Mar. 31, 2021
RELATED PARTY TRANSACTIONS
13. RELATED PARTY TRANSACTIONS	The Company contracted with Norco Professional Services, LLC. (“Norco”) to provide consulting services. The Company spent approximately $22,500 for the three-month period ended March 31, 2021. Norco is owned by Andrew J. Norstrud, who joined the Company in January of 2019, as the Company’s Chief Financial Officer. The Company continues to contract Andrew Norstrud’s services through Norco. During the year ended December 31, 2020, the Company obtained $200,000 in debt and granted a warrant to a related party for consulting services over the following 18 months, see note 10 and 12 for additional related party transaction details. The above related party transactions are not necessarily indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent parties.

XML 31 R20.htm IDEA: XBRL DOCUMENT

SIGNIFICANT CUSTOMER

3 Months Ended

Mar. 31, 2021

SIGNIFICANT CUSTOMER

14. SIGNIFICANT CUSTOMERS

Net revenues for the three months ended March 31, 2021 and 2020 include revenues from significant customers as follows:

	Three Month Ended March 31,
	2021			2020
Customer A		54	%		40	%
Customer B		11	%		32	%

Accounts receivable balances as of March 31, 2021 and December 31, 2020 from significant customers are as follows:

	March 31,			December 31,
	2021			2020
Customer A		93	%		79	%
Customer C		0	%		14	%

XML 32 R21.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2021
SUBSEQUENT EVENTS
15. SUBSEQUENT EVENTS	Subsequent to March 31, 2021, the Company entered into several promissory notes with various investors of the Company with a face value of $405,000 (“the Notes”). The Notes have a beneficial conversion feature valued at $405,000, which is recorded as a discount. The total discount on the Notes will be amortized over the life of the Notes and recorded as interest expense. The notes have an interest rate of 8% and are payable quarterly and twelve months after issuance, 1/12 of the principle will repaid monthly. The principal and interest of the note is convertible into the Company’s common stock at a purchase price of the lesser of $0.40 per common share at any time after issuance or a 25% discount of the common stock price of a Qualified Offering. Effective on May 5, 2021 the board approved an amended and restated stock option plan that increases the available options from 8,000,000 shares to 18,000,000 shares, which was approved by majority written consent of the shareholders. On May 6, 2021, the Company issued 300,000 common stock options to a new board member at an exercised price of $0.78 per share. The option vests monthly over 36 months. On May 11, 2021, the Company issued 63,339 shares of common stock to an investor that converted $25,000 of principal and $336 of interest in to shares per the Notes agreement.

XML 33 R22.htm IDEA: XBRL DOCUMENT

SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2021
SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K filed on March 30, 2021 from which the accompanying December 31, 2020 numbers are derived.
Principles of Consolidation	The unaudited condensed consolidated financial statements include the accounts and transactions of the Company and its wholly owned subsidiary, nDivision Services Inc. (incorporated in the state of Texas). All significant inter-company accounts and transactions are eliminated in consolidation.
Use of Estimates	Management uses estimates and assumptions in preparing these unaudited condensed consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.
Revenue Recognition	For revenue recognition arrangements that we determine are within the scope of Topic ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We only apply the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we evaluate the goods or services promised within each contract related performance obligation and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as managed services and professional service hours purchased in bulk for a given time period. Any early termination fees are recognized in the period the contract is terminated and the termination invoice is paid. The Company has elected the following practical expedients in applying ASC 606: Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer.
Cash and Cash Equivalents	For purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company’s cash balances are maintained at one bank. Balances are insured by the Federal Deposit Insurance Corporation subject to certain limitations.
Accounts Receivable	Accounts receivable are stated at the amount management expects to collect. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect the Company’s estimate of potential losses inherent in accounts receivable balances, based on historical loss and known factors impacting its customers. The Company recorded an allowance for doubtful accounts of $10,000 and $26,000 as of March 31, 2021 and December 31, 2020, respectively. The Company does not accrue interest on past due receivables.
Intangible Assets	Customer contracts acquired were recorded at their estimated fair value at the date of acquisition and are being amortized over their estimated useful life of five years using the straight-line method.
Impairment of Long-lived Assets	The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. The Company did not record any impairment during the three months ended March 31, 2021 and 2020.
Paycheck Protection Note Payable	The Company received a loan from the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the amount of $710,500. The loan is subject to a note dated May 2, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. Certain portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. The Company has applied for full forgiveness of this loan, however at the date of this report there has been no determination for forgiveness amount. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act. The loan may be repaid at any time with no prepayment penalty. The Company has not been required to make installment payments as of the date of this report.
Concentration of Risk	Financial instruments, which potentially subject the Company to concentrations of credit risk, are cash and accounts receivable. See Note 14 for significant customer concentration disclosure. Cash is maintained with one major financial institution in the United States and may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and, therefore, bear minimal risk.
Equipment and Software Licenses	Equipment and software licenses are stated at cost. Depreciation is calculated using the straight-line method over an estimated useful life of one to ten years.
Convertible Debt and Securities	The Company follows beneficial conversion feature guidance in ASC 470-20, which applies to convertible stock as well as convertible debt. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as interest over the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the expense must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence.
Earnings and Loss per Share	Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were approximately 15,387,000 of common stock equivalents excluded for the three months ended March 31, 2021 and 6,949,000 of common stock equivalents excluded for the three months ended March 31, 2020, respectively because their effect is anti-dilutive.
Marketing Costs	Marketing costs, which are expensed as incurred, totaled approximately $158,859 for the three months ended March 31, 2021 and $5,091 for the three months ended March 31, 2020, respectively and is included in selling, general and administrative expenses.
Stock-Based Compensation	Compensation expense related to share-based transactions, including employee stock options, is measured in the financial statements based on a determination of the fair value. The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all stock options, the Company recognizes expense over the requisite service period on a straight-line basis (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected term. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense. See Note 12 for the assumptions used to calculate the fair value of stock-based employee and non-employee compensation.
Leases	The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases of assets where the Company has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recognized at the lower of the fair value of the leased assets and the present value of the minimum lease payments. The interest element of the finance leases are accounted for as finance costs and expensed over the lease term using the effective interest rate method.
Income Taxes	The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statement of operations. As of March 31, 2021, no accrued interest or penalties are included on the related tax liability line in the balance sheet.

XML 34 R23.htm IDEA: XBRL DOCUMENT

EQUIPMENT AND SOFTWARE LICENSES (Tables)

3 Months Ended

Mar. 31, 2021

EQUIPMENT AND SOFTWARE LICENSES

Schedule of equipment and software licenses

	March 31,			December 31,
	2021			2020
Equipment and software	$	626,111		$	599,900
Software licenses		1,302,141			1,302,141
		1,928,252			1,902,041
Less - Accumulated depreciation and amortization		(1,410,948	)		(1,361,123	)
	$	517,304		$	540,918

XML 35 R24.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2021

INTANGIBLE ASSETS

Intangible Assets

Useful Life

Cost

Accumulated

Amortization

Net

Book Value

Service Contracts

1,012,335

607,653

404,682

XML 36 R25.htm IDEA: XBRL DOCUMENT

ACCRUED LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2021

ACCRUED LIABILITIES

Schedule of accrued liabilities

	March 31,		December 31,
	2021		2020
Accrued compensation	$	258,929	$	138,707
Accrued interest		50,638		23,185
Accrued sales tax		7,368		23,525
Accrued franchise tax		16,010		11,832
Accrued professional fees and other payables		181,673		176,238
Total accrued liabilities	$	514,618	$	373,487

XML 37 R26.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Tables)

3 Months Ended

Mar. 31, 2021

LEASE OBLIGATIONS (Tables)

Schedule of future minimum lease payments

Year ended
Remainder of 2021	$	127,749
2022		155,642
2023		136,058
2024		117,774
2025		43,970

Total		581,193
Less: interest		(81,220	)
Present value of net minimum lease payments		499,973

Short term		170,199
Long term total	$	329,774

Schedule of weighted average remaining lease term and discount rate for operating leases

Weighted average remaining lease term		44 Months
Weighted average incremental borrowing rate			5.0	%

Schedule of minimum lease commitments

Remainder of 2021	$	73,998
2022		129,392
2023		131,859
2024		120,871
Total undiscounted future minimum lease payments		456,120
Less: Imputed interest		(40,079	)
Present value of operating lease obligation	$	416,041

Schedule of consolidated statements of operations income

	Three months ended March 31, 2021		Three months ended March 31, 2020
Operating lease cost:
Operating lease cost	$	31,617	$	31,119
Financing lease cost:
Amortization of financed lease assets	$	26,200	$	43,562
Interest expense		5,417		3,997
Total lease cost	$	31,617	$	47,559

XML 38 R27.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2021

STOCK BASED COMPENSATION

Schedule of stock based compensation

Number of options outstanding:
2018 Equity Incentive Plan			7,726,677
Options granted not part of a shareholder approved plan			2,200,000

March 31, 2021			9,926,677

Summary of Stock option activity

Number of options outstanding:
Beginning of year		9,601,677
Granted		500,000
Exercised		(175,000	)
Forfeited		-

March 31, 2021		9,926,677

Number of options exercisable at end of period		6,953,076
Number of options available for grant at end of period		273,323

Weighted average option prices per share:	$	0.40
Granted during the period		0.56
Exercised during the period		0.375
Forfeited during the period		-
Outstanding at end of the period		0.39
Exercisable at end of period	$	0.40

Schedule of granted options

	2021

Expected option life (years)		6.5
Expected stock price volatility		117	%
Expected dividend yield	—		%
Risk-free interest rate		1.15	%

XML 39 R28.htm IDEA: XBRL DOCUMENT

SIGNIFICANT CUSTOMERS (Tables)

3 Months Ended

Mar. 31, 2021

Schedules of Concentration

	Three Month Ended March 31,
	2021			2020
Customer A		54	%		40	%
Customer B		11	%		32	%

Schedules of customer accounts receivable,concenteration

	March 31,			December 31,
	2021			2020
Customer A		93	%		79	%
Customer C		0	%		14	%

XML 40 R29.htm IDEA: XBRL DOCUMENT

LIQUIDITY (Details Narrative)	3 Months Ended
LIQUIDITY (Details Narrative)	Mar. 31, 2021 USD ($)
LIQUIDITY
Proceeds from the issuance of notes payable	$ 785,000
Working capital	$ 78,291

XML 41 R30.htm IDEA: XBRL DOCUMENT

SUMMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	May 02, 2020
Allowance for doubtful accounts	$ 10,000		$ 26,000
Marketing costs	$ 158,859	$ 5,091
Paycheck Protection Program [Member]
Interest rate	1.00%
Loan amount				$ 710,500
Interest rate description	The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 10 months from the end of the “covered period” as defined in the CARES Act
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share	15,387,000	6,949,000

XML 42 R31.htm IDEA: XBRL DOCUMENT

EQUIPMENT AND SOFTWARE LICENSES (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment, Gross	$ 1,928,252	$ 1,902,041
Less - accumulated depreciation and amortization	(1,410,948)	(1,361,123)
Property, Plant and Equipment, Net	517,304	540,918
Equipment and software [Member]
Property, Plant and Equipment, Gross	626,111	599,900
Software License [Member]
Property, Plant and Equipment, Gross	$ 1,302,141	$ 1,302,141

XML 43 R32.htm IDEA: XBRL DOCUMENT

EQUIPMENT AND SOFTWARE LICENSES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
EQUIPMENT AND SOFTWARE LICENSES
Depreciation and amortization related to assets	$ 49,825	$ 62,601
Depreciation and amortization expenses related to leased assets	$ 40,622	$ 43,562

XML 44 R33.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Details)	3 Months Ended
INTANGIBLE ASSETS (Details)	Mar. 31, 2021 USD ($)
Intangible assets net	$ 404,682
Service Contracts [Member]
Intangible assets gross	1,012,335
Accumulated amortization	607,653
Intangible assets net	$ 404,682
Useful life of intangible assets	5 years

XML 45 R34.htm IDEA: XBRL DOCUMENT

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
INTANGIBLE ASSETS (Details Narrative) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
INTANGIBLE ASSETS
Amortization expense	$ 50,638	$ 50,638
2021	151,914
2022	202,551
2023	50,217
Intangible assets net	$ 404,682

XML 46 R35.htm IDEA: XBRL DOCUMENT

ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
NOTE PAYABLE
Accrued compensation	$ 258,929	$ 138,707
Accrued interest	50,638	23,185
Accrued sales tax	7,368	23,525
Accrued franchise tax	16,010	11,832
Accrued professional fees and other payables	181,673	176,238
Total accrued liabilities	$ 514,618	$ 373,487

XML 47 R36.htm IDEA: XBRL DOCUMENT

FACTORING CREDIT FACILITY (Details Narrative)	3 Months Ended
FACTORING CREDIT FACILITY (Details Narrative)	Mar. 31, 2021
Factoring Credit Facility [Member]
Agreement description	The agreement provides for an advanced rate of 90% with a fee of 1.9% to be charged on the gross face amount of the invoices purchased for 30 days, and an additional 0.06% charge for each additional day until the invoice(s) are paid

XML 48 R37.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE (Details Narrative) - Investor [Member]	1 Months Ended
NOTE PAYABLE (Details Narrative) - Investor [Member]	May 02, 2020 USD ($)
Proceeds from loan	$ 634,244
Interest rate	1.00%
Loan amount	$ 710,500

XML 49 R38.htm IDEA: XBRL DOCUMENT

CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended
CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Beneficial conversion feature	$ 620,375	$ 0
Interest expense	113,236	$ 30,047
Several Investors [Member]
Convertible promissory note	785,000		$ 1,050,000
Beneficial conversion feature	956,675
Interest expense	$ 24,334
Rate of interest	8.00%
Price per share	$ 0.40
Due to related party	$ 1,835,000
Discount rate	25.00%
A Related Party [Member]
Convertible promissory note	$ 200,000		$ 200,000

XML 50 R39.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Details)	Mar. 31, 2021 USD ($)
LEASE OBLIGATIONS (Tables)
2021	$ 127,749
2022	155,642
2023	136,058
2024	117,774
2025	43,970
Total	581,193
Less: interest	(81,220)
Present value of net minimum lease payments	499,973
Short term	170,199
Long term total	$ 329,774

XML 51 R40.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Details 1)	3 Months Ended
LEASE OBLIGATIONS (Details 1)	Mar. 31, 2021
LEASE OBLIGATIONS (Tables)
Weighted average remaining lease term	44 months
Weighted average incremental borrowing rate	5.00%

XML 52 R41.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Details 2)	Mar. 31, 2021 USD ($)
LEASE OBLIGATIONS (Tables)
2021	$ 73,998
2022	129,392
2023	131,859
2024	120,871
Total undiscounted future minimum lease payments	456,120
Less: Imputed interest	(40,079)
Present value of operating lease obligation	$ 416,041

XML 53 R42.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Details 3) - USD ($)	3 Months Ended
LEASE OBLIGATIONS (Details 3) - USD ($)	Mar. 31, 2021	Mar. 31, 2020
Operating lease cost
Operating lease cost	$ 31,617	$ 31,119
Finance lease cost
Amortization of leased assets	26,200	43,562
Interest expense	5,417	3,997
Total lease cost	$ 31,617	$ 47,559

XML 54 R43.htm IDEA: XBRL DOCUMENT

LEASE OBLIGATIONS (Details Narrative) - USD ($)	3 Months Ended
LEASE OBLIGATIONS (Details Narrative) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Lease payments	$ 43,057	$ 69,745
Leased assets, net book value	494,638		$ 509,050
Minimum [Member]
Leases Periodic payments	$ 354
Interest rate	3.60%
Maximum [Member]
Leases Periodic payments	$ 4,397
Interest rate	12.00%

XML 55 R44.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION (Details)	3 Months Ended
STOCK BASED COMPENSATION (Details)	Mar. 31, 2021 shares
Number of options outstanding
2018 Equity incentive plan	7,726,677
Options granted not part of a shareholder approved plan	2,200,000
March 31, 2021	9,926,677

XML 56 R45.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION (Details 1)	3 Months Ended
STOCK BASED COMPENSATION (Details 1)	Mar. 31, 2021 USD ($) $ / shares shares
Number of options outstanding
Number of options outstanding, begining balance \| $	$ 9,601,677
Granted \| shares	500,000
Exercised, converted \| shares	(175,000)
Forfeited / exchanged / modification \| shares	0
Number of options outstanding, ending balance \| shares	9,926,677
Number of options exercisable at end of period \| shares	6,953,076
Number of options available for grant at end of period \| shares	273,323
Weighted average option prices per share
Weighted average option prices per share \| $ / shares	$ 0.40
Granted during the period \| $ / shares	0.56
Exercised during the period \| $ / shares	0.375
Forfeited during the period \| $ / shares	0
Outstanding at end of the period \| $ / shares	0.39
Exercisable at end of period \| $ / shares	$ 0.40

XML 57 R46.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION (Details 2)	3 Months Ended
STOCK BASED COMPENSATION (Details 2)	Mar. 31, 2021
STOCK BASED COMPENSATION
Expected option life (years)	6 years 5 months 30 days
Expected stock price volatility	117.00%
Expected dividend yield	0.00%
Risk-free interest rate	1.15%

XML 58 R47.htm IDEA: XBRL DOCUMENT

STOCK BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended			12 Months Ended
STOCK BASED COMPENSATION (Details Narrative) - USD ($)	Mar. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Stock-based compensation expense	$ 180,000		$ 145,797
Unrecognized compensation expense	$ 1,170,000	$ 1,170,000
Average expected life	5 years	6 years 5 months 30 days
Stock option granted during the period	500,000
Total value of options/rights granted	$ 243,964
Exercise price	$ 0.56
Weighted average vesting period of options	3 years
Warrants [Member] \| Consultant [Member]
Total value of options/rights granted				$ 174,000
Exercise price				$ 0.625
Common stock shares issuable upon exercise of options/rights				750,000
Term of options/rights				18 months
The Gamwell Contract [Member] \| Warrants [Member]
Exercise price	$ 0.375
Common stock shares issuable upon exercise of options/rights	122,752	122,752
Expiration date	Apr. 23, 2028
2018 Equity Incentive Plan
Maximum number of shares granted under plan	8,000,000

XML 59 R48.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Norco Professional Services, LLC [Member]
Related party expenses	$ 22,500
A Related Party [Member]
Convertible promissory note	$ 200,000	$ 200,000

XML 60 R49.htm IDEA: XBRL DOCUMENT

SIGNIFICANT CUSTOMERS (Details)	3 Months Ended
SIGNIFICANT CUSTOMERS (Details)	Mar. 31, 2021	Mar. 31, 2020
Net Revenue [Member] \| Customer B [Member]
Concentration percentage	11.00%	32.00%
Net Revenue [Member] \| Customer A [Member]
Concentration percentage	54.00%	40.00%
Accounts receivable [Member] \| Customer A [Member]
Concentration percentage	93.00%	79.00%
Accounts receivable [Member] \| Customer C
Concentration percentage	0.00%	14.00%

XML 61 R50.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS (Details Narrative) - USD ($)				3 Months Ended
SUBSEQUENT EVENTS (Details Narrative) - USD ($)	May 11, 2021	May 06, 2021	May 05, 2021	Mar. 31, 2021	Dec. 31, 2020
Common stock, shares issued				42,584,886	42,499,783
Term of option				3 years
Subsequent Event [Member] \| Investor [Member]
Debt instrument payment description				The notes have an interest rate of 8% and are payable quarterly and twelve months after issuance, 1/12 of the principle will repaid monthly
Price per share				$ 0.40
Promissory note				$ 405,000
Beneficial conversion feature				$ 405,000
Rate of interest				8.00%
Restated stock option plan descripton			The board approved an amended and restated stock option plan that increases the available options from 8,000,000 shares to 18,000,000 shares, which was approved by majority written consent of the shareholders
Common stock, shares issued	63,339
Debt Conversion, Converted Instrument, Principal Amount	$ 25,000
Debt Conversion, Converted Instrument, Interest	$ 336
Subsequent Event [Member] \| New Board Member [Member]
Price per share		$ 0.78
Common stock, shares issued		300,000
Term of option		36 months

EXCEL 62 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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