Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Disaggregation of Revenue

 

   

For the Years

Ended December 31,

 
    2021     2020  
             
Revenues:                
Product sales   $ 8,392,827     $ 15,522,649  
Digital media sales     1,182,640       -  
Licensing revenues     215,905       258,670  
Total revenues, net   $ 9,791,372     $ 15,781,319  
Schedule of Revenue from External Customers

For the years ended December 31, 2021 and 2020 the following customers that represented more than 10% of total net revenues:

 

    For the years ended
December 31,
 
    2021     2020  
Customer:            
Customer A     *       14 %
Customer B     11 %     *  

 

*Did not represent more than 10% of total net revenues.

Schedule of Revenue by Geographical Areas

For the years ended December 31, 2021 and 2020, the following geographical regions represented more than 10% of total net revenues:

 

    For the Years Ended
December 31,
 
    2021     2020  
Region:                
North America     100 %     76 %
Asia-Pacific     0 %     9 %
Europe     0 %     15 %
Schedule of Fair Value of Financial Assets and Liabilities

The following fair value of financial assets and liabilities and the input level used to determine the fair value at December 31, 2021 and 2020 is presented below:

 

   

Fair Value Measurements as of

December 31, 2021

 
    Level 1     Level 2     Level 3  
                   
Assets:                        
Short-term investments   $ 178,000     $ -     $ -  
                         
Liabilities:                        
Warrant liability     -       -       198,566,170  
Total     178,000       -       198,566,170  

 

   

Fair Value Measurements as of

December 31, 2020

 
    Level 1     Level 2     Level 3  
                   
Assets:                        
Short-term investments   $ 1,018,000     $ -     $    -  
Total     1,018,000       -       -  
Schedule of Reconciliation of Liabilities Measured at Fair Value

The following table presents a reconciliation of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended December 31, 2021:

 

    Contingent Consideration Earnout     Warrant Liability  
             
Balance, January 1, 2020   $ -     $ -  
TBD Safety, LLC’s sellers earnout     200,000       -  
Balance, December 31, 2020     200,000       -  
Change in fair value of earnout     (200,000 )     -  
Issuance of warrants     -       756,924,148  
Change in fair value of warrants     -       (94,817,673 )
Exercise of warrants     -       (463,540,305 )
Balance, December 31, 2021   $ -     $ 198,566,170  
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of vested common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number vested of common shares, plus the net impact of common shares (computed using the treasury stock method), if dilutive, resulting from the exercise of dilutive securities. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. As of December 31, 2021 and 2020, the Company excluded the common stock equivalents summarized below, which entitle the holders thereof to ultimately acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive.

 

    2021     2020  
   

For the Years

Ended December 31,

 
    2021     2020  
             
Selling Agent Warrants     -       160,492  
Shares reserved in exchange for the cancellation of certain non-voting membership interest in EVNT Platform, LLC     4,000,000       -  
Options     80,000       80,000  
Convertible shares under notes payable     28,274,454       517,073  
Warrants for noteholders     107,942,653       625,000  
Restricted stock units     -       30,000  
Series B Convertible Stock     -       764,618  
Shares to be issued     -       1,071,483  
Total     140,297,107       3,248,666