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STOCKHOLDERS’ EQUITY (DEFICIT) | 9 Months Ended
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Sep. 30, 2022
Equity [Abstract] |
STOCKHOLDERS’ EQUITY (DEFICIT) | NOTE 11 STOCKHOLDERS’ EQUITY (DEFICIT) (A) Common Stock The Company issued the following common stock during the nine months ended September 30, 2022 and 2021: SCHEDULE OF COMMON STOCK
Transaction Type |  | Shares Issued |  | Valuation $ (Issued) |  | Range of Value Per Share
2022 Equity Transactions |  |  |  |  |  |  |  |  |  |  |  |
Common stock issued per exercise of options |  |  | 616,890 |  |  | $ | 390,624 |  |  | $ | 0.10-$3.00 |
Common stock issued per exercise of warrants, cashless |  |  | 416,750 |  |  |  | — |  |  |  | — |
Common stock issued, pursuant to services provided |  |  | 865,528 |  |  |  | 7,671,609 |  |  |  | 2.00-14.00 |
Conversion of preferred stock |  |  | 12,376,536 |  |  |  | 3,094,134 |  |  |  | 0.25 |
Issuance of common stock pursuant to offering, net |  |  | 1,650,000 |  |  |  | 23,100,000 |  |  |  | 14.00 |
Issuance of common stock, pursuant to anti-dilutive provisions |  |  | 335,073 |  |  |  | 4,691,022 |  |  |  | 14.00 |
Transaction Type |  | Qty Shares Issued |  | Valuation $ (Issued) |  | Range of Value Per Share
2021 Equity Transactions |  |  |  |  |  |  |  |  |  |  |  |
Common stock issued per PPM, Bridge Line Ventures |  |  | 231,624 |  |  | $ | 2,779,464 |  |  | $ | 12.00 |
Common stock issued, exercise of warrants, net |  |  | 21,250 |  |  |  | - |  |  |  | 3.50 |
Common stock issued, pursuant to services provided |  |  | 190,000 |  |  |  | 570,000 |  |  |  | 3.00 |
Conversion of preferred stock |  |  | 200,000 |  |  |  | 50,000 |  |  |  | 0.25 |
The Company issued 335,073 shares of its common stock to certain stockholders. who participated in private placements during 2019 through 2021, pursuant to certain anti-dilutive provisions, during the nine-month period ended September 30, 2022. The issuance of such shares was triggered based on the Company’s effective price of its initial public offering in February 2022. The fair value of the shares at the date of issuance were recorded as an increase in common stock and additional paid-in capital and accumulated deficit during the period and an increase in the denominator of the computation of the loss per share. The anti-dilutive provisions expire 24 months from the date of the private placements, which will lapse through December 31, 2023. (B) Preferred Stock The following is a summary of the Company’s Preferred Stock activity during the nine months ended September 30, 2022 and 2021: SCHEDULE OF PREFERRED STOCK
Transaction Type |  | Quantity |  |  | Carrying Value |  |  | Value per Share |
Preferred Stock Balance at December 31, 2021 |  |  | 13,256,936 |  |  | $ | 3,314,233 |  |  | $ | 0.25 |
Preferred Stock redemptions |  |  | (12,376,536 | ) |  |  | (3,094,134 | ) |  |  | 0.25 |
Preferred Stock Balance at September 30, 2022 |  |  | 880,400 |  |  | $ | 220,099 |  |  | $ | 0.25 |
Transaction Type |  | Quantity |  |  | Carrying Value |  |  | Value per Share |
Preferred Stock Balance at December 31, 2020 |  |  | 13,456,936 |  |  | $ | 3,364,233 |  |  | $ | 0.25 |
2021 Preferred Stock redemptions |  |  | (200,000 | ) |  |  | (50,000 | ) |  |  | 0.25 |
Preferred Stock Balance at September 30, 2021 |  |  | 13,256,936 |  |  | $ | 3,314,233 |  |  | $ | 0.25 |
The Preferred Stock is convertible at the holder’s option. Shares of the Preferred Stock may be repurchased by the Company upon 30 days’ prior written notice, for $3.50 per share. Holders also have a put option, allowing them to sell their shares of Preferred Stock back to the Company at $0.25 per share, the Note conversion price, and therefore the stock is classified as Mezzanine equity rather than permanent equity. For the nine months ended September 30, 2022 and 2021, the Company paid dividends in the amount of $32,504 and $97,655, respectively, to the Preferred Stock shareholders. (C) Stock Options The following is a summary of the Company’s stock option activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF STOCK OPTION ACTIVITY
Options |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (In Years) |  |  | Aggregate Intrinsic Value |
Outstanding, January 1, 2022 |  |  | 21,927,182 |  |  | $ | 3.36 |  |  |  |  |  |  |  |  |
Exercised |  |  | (616,890 | ) |  |  | 1.22 |  |  |  | — |  |  |  | — |
Granted |  |  | 13,832,500 |  |  |  | 11.74 |  |  |  | — |  |  |  | — |
Forfeited |  |  | (1,752,292 | ) |  |  | 3.81 |  |  |  | — |  |  |  | — |
Outstanding, September 30, 2022 |  |  | 33,390,500 |  |  | $ | 7.72 |  |  |  | 3.74 |  |  | $ | 13,657,954 |
Exercisable, September 30, 2022 |  |  | 11,852,438 |  |  | $ | 3.84 |  |  |  | 3.64 |  |  |  | 13,581,494 |
Options |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (In Years) |  |  | Aggregate Intrinsic Value |
Outstanding, January 1, 2021 |  |  | 14,010,432 |  |  | $ | 3.36 |  |  |  |  |  |  |  |  |
Granted |  |  | 7,679,250 |  |  |  | 6.59 |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding, September 30, 2021 |  |  | 21,689,682 |  |  | $ | 4.65 |  |  |  | 4.21 |  |  | $ | 556,089,127 |
Exercisable, September 30, 2021 |  |  | 11,965,158 |  |  | $ | 3.36 |  |  |  | 4.40 |  |  |  | 274,497,579 |
The following table summarizes the range of the Black Scholes pricing model assumptions used by the Company during the nine months ended September 30, 2022 and September 30, 2021: SCHEDULE OF BLACK SCHOLES PRICING MODEL
|  | September 30, 2022 |  |  | September 30, 2021 |
|  |  | Range |  |  |  | Range |
Stock price |  | $ | 6.00 - $12.34 |  |  | $ | 3.00 - $3.00 |
Exercise price |  | $ | 6.00 - $14.00 |  |  | $ | 3.00 - $12.00 |
Expected life (in years) |  |  | 1.5 – 10.0 |  |  |  | 1.3 |
Volatility |  |  | 37% - 54 | % |  |  | 34 | %
Risk-fee interest rate |  |  | 1.37% - 2.97 | % |  |  | .09% - 2.49 | %
Dividend yield |  |  | — |  |  |  | — |
The Company cannot use its historical volatility as expected volatility because there is not enough liquidity in trades of common stock during a term comparable to the expected term of stock option issued. The Company relies on the expected volatility of comparable publicly traded companies within its industry sector, which is deemed more relevant, to compute its expected volatility. Unamortized future option expense was $2,871,833 (excluding certain market-based options which management cannot ascertain to have a probable outcome) at September 30, 2022 and it is expected to be recognized over a weighted-average period of 4.00 years. (D) Warrants Issued The following is a summary of the Company’s warrant activity during the nine-month periods ended September 30, 2022 and 2021: SCHEDULE OF WARRANT ACTIVITY
|  | Number of Warrants |  |  | Weighted Average Exercise Price |
Balance, January 1, 2022 |  |  | 2,127,895 |  |  | $ | 5.4 |
Issued |  |  | 132,000 |  |  |  | 18.20 |
Exercised |  |  | (535,000 | ) |  |  | 3.30 |
Forfeited |  |  | (785,000 | ) |  |  | 3.01 |
Balance, September 30, 2022 |  |  | 939,895 |  |  | $ | 9.16 |
|  | Number of Warrants |  |  | Weighted Average Exercise Price |
Balance, January 1, 2021 |  |  | 1,602,415 |  |  | $ | 3.23 |
Issued |  |  | 261,624 |  |  |  | 12.00 |
Exercised |  |  | (30,000 | ) |  |  | 3.50 |
Forfeited/Cancelled |  |  | — |  |  |  | — |
Balance, September 30, 2021 |  |  | 1,834,039 |  |  | $ | 4.34 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 6 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008 + Details
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