XML 46 R31.htm IDEA: XBRL DOCUMENT
v3.25.1

OPERATING SEGMENTS | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment Reporting [Abstract] |
OPERATING SEGMENTS | NOTE 22. OPERATING SEGMENTS The Company adopted ASU 2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s consolidated financial statements. Segment financial information is prepared in accordance with GAAP and our significant accounting policies described in Note 1. Resources are allocated and performance is assessed using segment operating income by our Chief Executive Officer, whom we have determined to be our Chief Operating Decision Maker (“CODM”). Our CODM utilizes segment operating income when making decisions about allocating capital and personnel to the segments, predominantly in the annual budget and quarterly forecasting processes. In addition, our CODM uses operating income, including comparison of actual results to budget and forecast, in assessing the performance of each segment and in evaluating product pricing, distribution strategies and marketing investments. Our CODM reviews balance sheet information at a consolidated level. We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, asset impairment charges and restructuring charges. The SG&A used to compute each segment’s operating income is directly associated with the segment. We do not allocate non-operating income and expense, including interest or income taxes, to operating segments. We operate in three strategic business segments. The Video Solutions Segment encompasses our law, commercial, and shield divisions. This segment includes both service and product revenues through our subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. The Revenue Cycle Management Segment provides working capital and back-office services to a variety of healthcare organizations throughout the country, as a monthly service fee. The Entertainment Segment acts as an intermediary between ticket buyers and sellers within our secondary ticketing platform, ticketsmarter.com, and we also acquire tickets from primary sellers to then sell through various platforms. The Company’s corporate administration activities are reported in the corporate line item. These activities primarily include expense related to certain corporate officers and support staff, certain accounting staff, expense related to the Company’s Board of Directors, stock option expense for options granted to corporate administration employees, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes (if any), and deferred income taxes. Summarized financial information for the Company’s reportable business segments is provided for the years ended December 31, 2024, and 2023: SCHEDULE OF SEGMENT REPORTING
Year ended December 31, 2024
|  | Video Solutions |  |  | Entertainment |  |  | Revenue cycle Management |  |  | Corporate and other |  |  | Total |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 1,997,389 |  |  | $ | 3,406,928 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,404,317 |
Service |  |  | 3,758,002 |  |  |  | 4,356,833 |  |  |  | 6,131,650 |  |  |  | — |  |  |  | 14,246,485 |
Total segment net revenues |  | $ | 5,755,391 |  |  | $ | 7,763,761 |  |  | $ | 6,131,650 |  |  | $ | — |  |  | $ | 19,650,802 |
Less significant segment expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of Revenue - Product |  | $ | 1,780,284 |  |  | $ | 4,118,846 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,899,130 |
Cost of Revenue – Service and other |  |  | 1,252,213 |  |  |  | 3,243,791 |  |  |  | 3,766,336 |  |  |  | — |  |  |  | 8,262,340 |
Research and development expense |  |  | 1,339,673 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,339,673 |
Selling, advertising and promotional expense |  |  | 1,124,012 |  |  |  | 996,953 |  |  |  | 23,529 |  |  |  | — |  |  |  | 2,144,494 |
General and administrative expense |  |  | 1,459,064 |  |  |  | 3,701,024 |  |  |  | 1,838,399 |  |  |  | 5,378,218 |  |  |  | 12,376,705 |
Goodwill and intangible asset impairment charge |  |  | — |  |  |  | 508,000 |  |  |  | 4,322,000 |  |  |  | — |  |  |  | 4,830,000 |
Total segment operating income (loss) |  | $ | (1,199,855 | ) |  | $ | (4,804,853 | ) |  | $ | (3,818,614 | ) |  | $ | (5,378,218 | ) |  | $ | (15,201,540 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,815,323 | )
Loss on litigation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,959,396 | )
Change in fair value of derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,240,407 | )
Gain on the extinguishment of liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 917,935 |
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (753,339 | )
Gain on sale of property, plant and equipment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 360,082 |
Other non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (23,737 | )
Total non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,514,185 | )
Loss before income tax benefit (provision) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (21,715,725 | )
Depreciation and amortization expense |  | $ | 598,895 |  |  | $ | 1,316,541 |  |  | $ | 106,878 |  |  | $ | — |  |  | $ | 2,022,314 |
Total identifiable assets, net of eliminations |  | $ | 12,804,820 |  |  | $ | 5,741,116 |  |  | $ | 1,771,850 |  |  | $ | 7,418,787 |  |  | $ | 27,736,573 |
Year ended December 31, 2023
|  | Video Solutions |  |  | Entertainment |  |  | Revenue cycle Management |  |  | Corporate and other |  |  | Total |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 4,303,369 |  |  | $ | 5,044,576 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,347,945 |
Service |  |  | 3,167,916 |  |  |  | 9,018,805 |  |  |  | 6,713,678 |  |  |  | — |  |  |  | 18,900,399 |
Total segment net revenues |  | $ | 7,471,285 |  |  | $ | 14,063,381 |  |  | $ | 6,713,678 |  |  | $ | — |  |  | $ | 28,248,344 |
Less significant segment expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of Revenue - Product |  | $ | 4,824,967 |  |  | $ | 5,149,923 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,974,890 |
Cost of Revenue – Service and other |  |  | 1,355,809 |  |  |  | 7,213,754 |  |  |  | 3,941,407 |  |  |  | — |  |  |  | 12,510,970 |
Research and development expense |  |  | 2,618,746 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,618,746 |
Selling, advertising and promotional expense |  |  | 4,780,184 |  |  |  | 2,328,759 |  |  |  | 28,586 |  |  |  | — |  |  |  | 7,137,529 |
General and administrative expense |  |  | 1,027,163 |  |  |  | 3,017,715 |  |  |  | 2,451,142 |  |  |  | 11,750,742 |  |  |  | 18,246,762 |
Goodwill and intangible asset impairment charge |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total segment operating income (loss) |  | $ | (7,135,584 | ) |  | $ | (3,646,770 | ) |  | $ | 292,543 |  |  | $ | (11,750,742 | ) |  | $ | (22,240,553 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,134,253 | )
Change in fair value of derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,846,642 |
Gain on the extinguishment of liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 550,867 |
Loss on litigation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,792,308 | )
Loss on extinguishment of convertible debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,112,705 | )
Other non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 418,361 |
Total non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,223,396 | )
Loss before income tax benefit (provision) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (25,463,949 | )
Depreciation and amortization expense |  | $ | 836,699 |  |  | $ | 1,277,186 |  |  | $ | 104,352 |  |  | $ | — |  |  | $ | 2,218,237 |
Total identifiable assets, net of eliminations |  | $ | 26,396,559 |  |  | $ | 6,324,211 |  |  | $ | 2,260,376 |  |  | $ | 12,047,663 |  |  | $ | 47,028,809 |
The segments recorded noncash items affecting the gross profit and operating income (loss) through the established inventory reserves based on estimates of excess and/or obsolete current and non-current inventory. The Company recorded a reserve for excess and obsolete inventory in the video solutions segment of $2,037,252 and $4,355,666 and a reserve for the entertainment segment of $132,403 and $186,795 as of December 31, 2024 and 2023. The segment net revenues reported above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income, which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property, plant and equipment, accounts receivable, inventories, and other assets.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration