XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.23.2

REVENUES AND CONTRACT ACCOUNTING | 3 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2023 | Dec. 31, 2022
Revenue from Contract with Customer [Abstract] |  |
REVENUES AND CONTRACT ACCOUNTING | NOTE 6 - REVENUE AND CONTRACT ACCOUNTING Revenue Recognition and Contract Accounting The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technology which is included in the consolidated statements of operations line-item Technology Systems; (3) Technical Support; and (4) Consulting Services which is included in the consolidated statements of operations line-item Services and Consulting. Contract assets and contract liabilities on uncompleted contracts for revenues recognized over time are as follows: Contract Assets Contract assets on uncompleted contracts represent cumulative revenues recognized in excess of billings and/or cash received on uncompleted contracts accounted for under the cost-to-cost input method, which recognizes revenue based on the ratio of cost incurred to total estimated costs. At March 31, 2023 and December 31, 2022, contract assets on uncompleted contracts consisted of the following:
Schedule Of Contract Assets On Uncompleted Contracts |  |  |  |  |  |
|  | March 31, 2023 |  |  | December 31, 2022 |
Cumulative revenues recognized |  | $ | 7,144,602 |  |  | $ | 5,934,205 |
Less: Billings or cash received |  |  | (5,718,290 | ) |  |  | (5,508,483 | )
Contract assets |  | $ | 1,426,312 |  |  | $ | 425,722 |
Contract Liabilities Contract liabilities, on uncompleted contracts represent billings and/or cash received that exceed cumulative revenues recognized on uncompleted contracts accounted for under the cost-to-cost input method, which recognizes revenues based on the ratio of the cost incurred to total estimated costs. Contract liabilities on services and consulting revenues represent billings and/or cash received in excess of revenue recognized on service agreements that are not accounted for under the cost-to-cost input method. At March 31, 2023 and December 31, 2022, contract liabilities on uncompleted contracts and contract liabilities on services and consulting consisted of the following:
Schedule of Contract Liabilities on Uncompleted Contracts |  |  |  |  |  |
|  | March 31, 2023 |  |  | December 31, 2022 |
Billings and/or cash receipts on uncompleted contracts |  | $ | 323,207 |  |  | $ | 4,355,470 |
Less: Cumulative revenues recognized |  |  | (262,988 | ) |  |  | (4,144,018 | )
Contract liabilities, technology systems |  |  | 60,219 |  |  |  | 211,452 |
Contract liabilities, services and consulting |  |  | 2,006,642 |  |  |  | 746,545 |
Total contract liabilities |  | $ | 2,066,861 |  |  | $ | 957,997 |
Contract Liabilities at December 31, 2022 were $957,997; of which $151,233 for technology systems and $248,856 in services and consulting has been recognized as of March 31, 2023 The Company expects to recognize all contract liabilities within 12 months from the consolidated balance sheet date. Disaggregation of Revenue The Company is following the guidance of ASC 606-10-55-296 and 297 for disaggregation of revenue. Accordingly, revenue has been disaggregated according to the nature, amount, timing and uncertainty of revenue and cash flows. We are providing qualitative and quantitative disclosures. Qualitative:
| 1. | We have four distinct revenue sources:
| a. | Technology Systems (Turnkey, engineered projects);
| b. | AI Technology (Associated maintenance and support services);
| c. | Technical Support (Licensing and professional services related to auditing of data center assets); and
| d. | Consulting Services (Predetermined algorithms to provide important operating information to the users of our systems).
| 2. | We currently operate in North America including the USA, Mexico and Canada.
| 3. | Our customers include rail transportation, commercial, government, banking and IT suppliers.
| 4. | Our services & maintenance contracts are fixed price and fall into two duration types:
| a. | Turnkey engineered projects and professional service contracts that are less than one year in duration and are typically one to two quarters in length; and
| b. | Maintenance and support contracts ranging from one to five years in length
Quantitative: For the Three Months Ended March 31, 2023
Schedule of Disaggregation of Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segments |  | Rail |  |  | Commercial |  |  | Government |  |  | Artificial Intelligence |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 2,376,449 |  |  | $ | 28,831 |  |  | $ | 11,353 |  |  | $ | 227,655 |  |  | $ | 2,644,288 |
Major Goods and Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnkey Projects |  | $ | 1,827,764 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,827,764 |
Maintenance and Support |  |  | 548,685 |  |  |  | 28,831 |  |  |  | 11,353 |  |  |  | — |  |  |  | 588,869 |
Algorithms |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 227,655 |  |  |  | 227,655 |
|  | $ | 2,376,449 |  |  | $ | 28,831 |  |  | $ | 11,353 |  |  | $ | 227,655 |  |  | $ | 2,644,288 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred over time |  | $ | 1,827,764 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,827,764 |
Services transferred over time |  |  | 548,685 |  |  |  | 28,831 |  |  |  | 11,353 |  |  |  | 227,655 |  |  |  | 816,524 |
|  | $ | 2,376,449 |  |  | $ | 28,831 |  |  | $ | 11,353 |  |  | $ | 227,655 |  |  | $ | 2,644,288 |
For the Three Months Ended March 31, 2022
Segments |  | Rail |  |  | Commercial |  |  | Government |  |  | Artificial Intelligence |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 1,007,273 |  |  | $ | 17,300 |  |  | $ | 152,142 |  |  | $ | 262,601 |  |  | $ | 1,439,316 |
Major Goods and Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnkey Projects |  | $ | 520,657 |  |  | $ | (498 | ) |  | $ | 131,921 |  |  | $ | — |  |  | $ | 652,080 |
Maintenance and Support |  |  | 486,616 |  |  |  | 17,798 |  |  |  | 20,221 |  |  |  | 131,412 |  |  |  | 656,047 |
Algorithms |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 131,189 |  |  |  | 131,189 |
|  | $ | 1,007,273 |  |  | $ | 17,300 |  |  | $ | 152,142 |  |  | $ | 262,601 |  |  | $ | 1,439,316 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred over time |  | $ | 520,657 |  |  | $ | (498 | ) |  | $ | 131,921 |  |  | $ | — |  |  | $ | 652,080 |
Goods delivered at point in time |  | $ | — |  |  |  | — |  |  |  | — |  |  |  | 131,189 |  |  |  | 131,189 |
Services transferred over time |  |  | 486,616 |  |  |  | 17,798 |  |  |  | 20,221 |  |  |  | 131,412 |  |  |  | 656,047 |
|  | $ | 1,007,273 |  |  | $ | 17,300 |  |  | $ | 152,142 |  |  | $ | 262,601 |  |  | $ | 1,439,316 |
| NOTE 8 – REVENUES AND CONTRACT ACCOUNTING The Company generates revenue from four sources: (1) Technology Systems; (2) AI Technology which is included in the consolidated statements of operations line-item Technology Systems; (3) Technical Support; and (4) Consulting Services which is included in the consolidated statements of operations line-item Services and Consulting. Contract assets and contract liabilities on uncompleted contracts for revenues recognized over time are as follows: Contract Assets Contract assets on uncompleted contracts represent cumulative revenues recognized in excess of billings and/or cash received on uncompleted contracts accounted for under the cost-to-cost input method which recognizes revenue based on the ratio of costs incurred to total estimated costs. At December 31, 2022 and 2021, contract assets on uncompleted contracts consisted of the following:
Schedule Of Contract Assets On Uncompleted Contracts |  |  |  |  |  |
|  | 2022 |  |  | 2021 |
Cumulative revenues recognized |  | $ | 5,934,205 |  |  | $ | 5,266,930 |
Less: Billings or cash received |  |  | (5,508,483 | ) |  |  | (5,263,481 | )
Contract Assets |  | $ | 425,722 |  |  | $ | 3,449 |
Contract Liabilities Contract liabilities on uncompleted contracts represent billings and/or cash received that exceed cumulative revenues recognized on uncompleted contracts accounted for under the cost-to-cost input method. Contract liabilities on services and consulting revenues represent billings and/or cash received in excess of revenue recognized on service agreements that are not accounted for under the cost-to-cost input method. The Company expects to recognize all contract liabilities within 12 months from the consolidated balance sheet date. At December 31, 2022 and 2021, contract liabilities on uncompleted contracts consisted of the following:
Schedule of Contract Liabilities on Uncompleted Contracts |  |  |  |  |  |  |  |
|  | 2022 |  |  | 2021 |
Billings and/or cash receipts on uncompleted contracts |  | $ | 4,355,470 |  |  | $ | 4,473,726 |
Less: Cumulative revenues |  |  | (4,144,018 | ) |  |  | (3,041,088 | )
Contract liabilities, technology systems |  | $ | 211,452 |  |  | $ | 1,232,638 |
Contract Liabilities, services and consulting |  |  | 746,545 |  |  |  | 596,673 |
Total Contract Liabilities |  | $ | 957,997 |  |  | $ | 1,829,311 |
Disaggregation of Revenue The Company is following the guidance of ASC 606-10-55-296 and 297 for disaggregation of revenue. Accordingly, revenue has been disaggregated according to the nature, amount, timing and uncertainty of revenue and cash flows. We are providing qualitative and quantitative disclosures. Qualitative: 1. We have four distinct revenue sources: a. Technology Systems (Turnkey, engineered projects); b. AI Technology (Associated maintenance and support services); c. Technical Support (Licensing and professional services related to auditing of data center assets); and d. Consulting Services (Predetermined algorithms to provide important operating information to the users of our systems). 2. We currently operate in North America including the USA, Mexico and Canada. 3. Our customers include rail transportation, commercial, government, banking and IT suppliers. 4. Our technology systems and equipment projects fall into two types: a. Transfer of goods and services are over time. b. Goods delivered at point in time. 5. Our services & maintenance contracts are fixed price and fall into two duration types: a. Turnkey engineered projects and professional service contracts that are less than one year in duration and are typically one to two quarters in length; and b. Maintenance and support contracts ranging from one to five years in length. Quantitative: For the Year Ended December 31, 2022
Schedule of Disaggregation of Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Segments |  | Rail |  |  | Commercial |  |  | Petrochemical |  |  | Government |  |  | Banking/Other |  |  | IT Suppliers |  |  | Artificial Intelligence |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 13,710,777 |  |  | $ | 115,443 |  |  | $ | — |  |  | $ | 237,414 |  |  | $ | — |  |  | $ | — |  |  | $ | 948,732 |  |  | $ | 15,012,366 |
Major Goods and Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnkey Projects |  | $ | 10,789,693 |  |  | $ | 9,297 |  |  | $ | — |  |  | $ | 156,530 |  |  | $ | — |  |  | $ | — |  |  | $ | 234,772 |  |  | $ | 11,190,292 |
Maintenance & Support |  |  | 2,921,084 |  |  |  | 106,146 |  |  |  | — |  |  |  | 80,884 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,108,114 |
Data Center Auditing Services |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Software License |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Algorithms |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 713,960 |  |  |  | 713,960 |
|  | $ | 13,710,777 |  |  | $ | 115,443 |  |  | $ | — |  |  | $ | 237,414 |  |  | $ | — |  |  | $ | — |  |  | $ | 948,732 |  |  | $ | 15,012,366 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred over time |  | $ | 10,789,693 |  |  | $ | 9,297 |  |  | $ | — |  |  | $ | 156,530 |  |  | $ | — |  |  | $ | — |  |  | $ | 234,772 |  |  | $ | 11,190,292 |
Services transferred over time |  |  | 2,921,084 |  |  |  | 106,146 |  |  |  | — |  |  |  | 80,884 |  |  |  | — |  |  |  | — |  |  |  | 713,960 |  |  |  | 3,822,074 |
|  | $ | 13,710,777 |  |  | $ | 115,443 |  |  | $ | — |  |  | $ | 237,414 |  |  | $ | — |  |  | $ | — |  |  | $ | 948,732 |  |  | $ | 15,012,366 |
Quantitative: For the Year Ended December 31, 2021
Segments |  | Rail |  |  | Commercial |  |  | Petrochemical |  |  | Government |  |  | Banking |  |  | IT Suppliers |  |  | Artificial Intelligence |  |  | Total |
Primary Geographical Markets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 6,883,670 |  |  | $ | 213,517 |  |  | $ | (867 | ) |  | $ | 314,030 |  |  | $ | 23,340 |  |  | $ | 134,717 |  |  | $ | 691,510 |  |  | $ | 8,259,917 |
Major Goods and Service Lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Turnkey Projects |  | $ | 5,255,491 |  |  | $ | 27,831 |  |  | $ | — |  |  | $ | 233,145 |  |  | $ | 1,537 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,518,004 |
Maintenance & Support |  |  | 1,628,179 |  |  |  | 185,686 |  |  |  | (867 | ) |  |  | 80,885 |  |  |  | 21,803 |  |  |  | — |  |  |  | 341,915 |  |  |  | 2,257,601 |
Data Center Auditing Services |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 131,537 |  |  |  | — |  |  |  | 131,537 |
Software License |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,180 |  |  |  | — |  |  |  | 3,180 |
Algorithms |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 349,595 |  |  |  | 349,595 |
|  | $ | 6,883,670 |  |  | $ | 213,517 |  |  | $ | (867 | ) |  | $ | 314,030 |  |  | $ | 23,340 |  |  | $ | 134,717 |  |  | $ | 691,510 |  |  | $ | 8,259,917 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goods transferred over time |  | $ | 5,255,491 |  |  | $ | 27,831 |  |  | $ | — |  |  | $ | 233,145 |  |  | $ | 1,537 |  |  | $ | 131,537 |  |  | $ | 349,595 |  |  | $ | 5,999,136 |
Services transferred over time |  |  | 1,628,179 |  |  |  | 185,686 |  |  |  | (867 | ) |  |  | 80,885 |  |  |  | 21,803 |  |  |  | 3,180 |  |  |  | 341,915 |  |  |  | 2,260,781 |
|  | $ | 6,883,670 |  |  | $ | 213,517 |  |  | $ | (867 | ) |  | $ | 314,030 |  |  | $ | 23,340 |  |  | $ | 134,717 |  |  | $ | 691,510 |  |  | $ | 8,259,917 |
Segment Information The Company operates in one reportable segment.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration