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OPERATING SEGMENTS | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
OPERATING SEGMENTS | NOTE 17. OPERATING SEGMENTS The Company adopted ASU 2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed 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 three months ended March 31, 2025, and 2024: SCHEDULE OF SEGMENT REPORTING
Three months ended March 31, 2025
|  | Video Solutions |  |  | Entertainment |  |  | Revenue cycle Management |  |  | Corporate and other |  |  | Total |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 54,231 |  |  | $ | 667,119 |  |  | $ | — |  |  | $ | — |  |  | $ | 721,350 |
Service |  |  | 868,050 |  |  |  | 1,535,313 |  |  |  | 1,350,551 |  |  |  | — |  |  |  | 3,753,914 |
Total segment net revenues |  | $ | 922,281 |  |  | $ | 2,202,432 |  |  | $ | 1,350,551 |  |  | $ | — |  |  | $ | 4,475,264 |
Less significant segment expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of Revenue - Product |  | $ | 64,552 |  |  | $ | 611,087 |  |  | $ | — |  |  | $ | — |  |  | $ | 675,639 |
Cost of Revenue – Service and other |  |  | 301,968 |  |  |  | 1,013,270 |  |  |  | 882,888 |  |  |  | — |  |  |  | 2,198,126 |
Research and development expense |  |  | 84,417 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 84,417 |
Selling, advertising and promotional expense |  |  | 20,517 |  |  |  | 75,864 |  |  |  | 11,660 |  |  |  | — |  |  |  | 108,041 |
General and administrative expense |  |  | 283,547 |  |  |  | 806,789 |  |  |  | 448,633 |  |  |  | 844,752 |  |  |  | 2,383,721 |
Total segment operating income (loss) |  | $ | 167,280 |  |  | $ | (304,578 | ) |  | $ | 7,370 |  |  | $ | (844,752 | ) |  | $ | (974,680 | )
Non-operating (expenses) income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (792,273 | )
Change in fair value of derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,515,891 |
Gain on the extinguishment of liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,220,097 |
Gain on extinguishment of debt – related party |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,249,372 |
Other non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 48,675 |
Total non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,241,762 |
Income before income tax benefit (provision) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,267,082 |
Depreciation and amortization expense |  | $ | 53,669 |  |  | $ | 340,597 |  |  | $ | 23,604 |  |  | $ | — |  |  | $ | 417,870 |
Total identifiable assets, net of eliminations |  | $ | 12,786,363 |  |  | $ | 4,898,381 |  |  | $ | 4,863,764 |  |  | $ | 7,707,828 |  |  | $ | 30,256,336 |
Three months ended March 31, 2024
|  | Video Solutions |  |  | Entertainment |  |  | Revenue cycle Management |  |  | Corporate and other |  |  | Total |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | $ | 721,188 |  |  | $ | 844,658 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,565,846 |
Service |  |  | 997,105 |  |  |  | 1,531,801 |  |  |  | 1,434,598 |  |  |  | — |  |  |  | 3,963,505 |
Total segment net revenues |  | $ | 1,718,293 |  |  | $ | 2,376,460 |  |  | $ | 1,434,598 |  |  | $ | — |  |  | $ | 5,529,351 |
Less significant segment expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of Revenue - Product |  | $ | 797,494 |  |  | $ | 769,899 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,567,393 |
Cost of Revenue – Service and other |  |  | 355,105 |  |  |  | 1,112,287 |  |  |  | 970,867 |  |  |  | — |  |  |  | 2,438,259 |
Research and development expense |  |  | 487,466 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 487,466 |
Selling, advertising and promotional expense |  |  | 423,894 |  |  |  | 330,519 |  |  |  | 6,705 |  |  |  | — |  |  |  | 761,118 |
General and administrative expense |  |  | 1,101,217 |  |  |  | 805,974 |  |  |  | 481,057 |  |  |  | 1,525,901 |  |  |  | 3,914,149 |
Total segment operating income (loss) |  | $ | (1,446,883 | ) |  | $ | (642,219 | ) |  | $ | (24,031 | ) |  | $ | (1,525,901 | ) |  | $ | (3,639,034 | )
Non-operating (expenses) income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (648,567 | )
Change in fair value of derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (348,891 | )
Gain on the extinguishment of liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 682,345 |
Other non-operating income (loss), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10,879 |
Total non-operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (304,234 | )
Loss before income tax benefit (provision) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (3,943,268 | )
Depreciation and amortization expense |  | $ | 198,028 |  |  | $ | 326,248 |  |  | $ | 26,715 |  |  | $ | — |  |  | $ | 550,991 |
Total identifiable assets, net of eliminations |  | $ | 24,172,478 |  |  | $ | 6,482,510 |  |  | $ | 1,989,068 |  |  | $ | 12,520,139 |  |  | $ | 45,164,195 |
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.

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- Definition The entire disclosure for reporting segments including data and tables. 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