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Balance Sheet Components

3 Months Ended

12 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Prepaid expenses and other current assets

Prepaid expenses and other current assets as of March 31, 2023 and December 31, 2022 consisted of the following:


	March 31,		December 31,
	2023		2022
Prepaid operating expenses	$	236,470	$	225,756
Rent deposit		61,412		55,981
VAT receivable associated with SAIT		82,423		71,742
Tax credit receivable (short-term)		66,135		218,239
Miscellaneous receivable		15,804		8,368
Prepaid expenses and other current assets	$	462,244	$	580,086

Capitalized internal-use software, net

Capitalized internal-use software, net as of March 31, 2023 and December 31, 2022 consisted of the following:


		March 31,		December 31,
	Useful Lives	2023		2022
Internally developed software	5 Years	$	3,482,118	$	3,314,450
Less accumulated depreciation			(2,036,455)		(1,895,778)
Capitalized internal-use software, net		$	1,445,663	$	1,418,672

Amortization expense is recognized on a straight-line basis and for the three months ended March 31, 2023 and 2022 totaled $141 thousand and $120 thousand, respectively.

Property and equipment, net

Property and equipment, net as of March 31, 2023 and December 31, 2022 consisted of the following:


			March 31,	December 31,
	Useful Lives	2023		2022
Computer equipment	3-4 Years	$	148,690	$	148,832
Furniture and fixtures	10 Years		27,565		27,220
Phone- equipment	2.5 years		—		297,150
Property and equipment, gross			176,255		473,202
Less accumulated depreciation			(94,146)		(172,538)
Property and equipment, net		$	82,109	$	300,664

Depreciation expense is recognized on a straight-line basis and for the three months ended March 31, 2023 and 2022 totaled $42 thousand and $10 thousand, respectively.

Held for sale equipment, net

The Company’s phone equipment was classified as held for sale as of March 31, 2023 as the result of the Company accepting an offer for the sale of the phone equipment in the second quarter of 2023. The major classes of assets and liabilities of the phone equipment held for sale were as follows:


	March 31, 2023
Equipment assets held for sale
Phone equipment	$	297,150
Accumulated depreciation		(119,240)
Total equipment assets held for sale	$	177,910

Liabilities of equipment assets held for sale
Short-term financial liabilities	$	177,905
Total liabilities of equipment assets held for sale	$	177,905

Subsequent to March 31, 2023, on April 26, 2023, the Company sold a portion of the property and equipment for a gross sales price of $451 thousand and an estimated gain of $287 thousand.

Accrued expenses

Accrued expenses as of March 31, 2023 and December 31, 2022 consisted of the following:


	March 31,		December 31,
	2023		2022
Compensation payable	$	224,812	$	171,851
Commission liability		78,176		58,771
Accrued employee taxes		791,534		591,992
Accrued mobile expenses		10,000		177,099
Other accrued liabilities		86,596		100,111
Accrued expenses	$	1,191,118	$	1,099,824

5. Balance Sheet Components

Prepaid expenses and other current assets

Prepaid expenses and other current assets as of December 31, 2022 and 2021 consisted of the following:


	As of December 31,
	2022		2021
Prepaid operating expenses	$	225,756	$	319,996
Rent deposit		55,981		100,425
VAT receivable associated with SAIT		71,742		68,798
Prepaid sponsorship		—		100,000
Tax credit receivable (short-term)		218,239		75,106
Miscellaneous receivable		8,368		332,277
Prepaid expenses and other current assets	$	580,086	$	996,602

Capitalized internal-use software, net

Capitalized internal-use software, net as of December 31, 2022 and 2021 consisted of the following:


		As of December 31,
	Useful Lives	2022		2021
Internally developed software	5 years	$	3,314,450	$	2,538,395
Less accumulated amortization			(1,895,778)		(1,378,351)
Capitalized internal-use software, net		$	1,418,672	$	1,160,044

Amortization expense is recognized on a straight-line basis and for the years ended December 31, 2022 and 2021 totaled $517 thousand and $454 thousand, respectively.

Property and equipment, net

Property and equipment, net as of December 31, 2022 and 2021 consisted of the following:


		As of December 31,
	Useful Lives	2022		2021
Computer equipment	3-4 years	$	148,832	$	125,139
Furniture and fixtures	10 years		27,220		28,870
Phone equipment	2.5 years		297,150		—
Property and equipment, gross			473,202		154,009
Less accumulated depreciation			(172,538)		(42,241)
Property and equipment, net		$	300,664	$	111,768

Depreciation expense is recognized on a straight-line basis and for the years ended December 31, 2022 and 2021 totaled $136 thousand and $50 thousand, respectively.

Other assets

Other assets as of December 31, 2022 and 2021 consisted of the following:


	As of December 31,
	2022		2021
Digital assets	$	2,066		—
Tax credit receivable (long-term)		—	$	178,140
Other assets	$	2,066	$	178,140

Accrued expenses

Accrued expenses as of December 31, 2022 and 2021 consisted of the following:


	As of December 31,
	2022		2021
Compensation payable	$	171,851	$	597,849
Commission liability		58,771		—
Accrued employee taxes		591,992		349,256
Accrued mobile expenses		177,099		—
Other accrued expenses		100,111		112,427
Accrued expenses	$	1,099,824	$	1,059,532