v3.26.1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Schedule of Disaggregated Revenue by Timing of Revenue Recognition

The following table provides information about disaggregated revenue from continuing operations by timing of revenue recognition:

 

   For the three months ended   For the six months ended 
   June 30,   June 30,   June 30,   June 30, 
   2026   2025   2026   2025 
Timing of revenue recognition                
Products and services transferred over time  $-   $-   $-   $- 
Products and services transferred at a point in time   1,561,884    1,055,191    3,441,177    2,252,805 
Total Revenue  $1,561,884   $1,055,191   $3,441,177   $2,252,805 
Schedule of Basic and Diluted Earnings Per Share Attributable to Continuing Operations

The following table presents basic and diluted earnings per share attributable to continuing operations for the three and six months ended June 30, 2026, and 2025.

 

   Three months ended   Six months ended 
   June 30,
2026		   June 30,
2025		   June 30,
2026		   June 30,
2025		 
Net loss from continuing operations - basic and diluted, net of tax  $(3,080,442)  $(1,903,933)  $(4,344,228)  $(5,543,067)
Weighted average shares outstanding – basic and diluted   53,657,720    16,422,651    51,280,293    16,368,254 
Net loss per share from continuing operations – basic and diluted  $(0.06)  $(0.12)  $(0.08)  $(0.34)
Excluded securities: (1)                    
Public Warrants   9,877,432    11,500,000    9,877,432    11,500,000 
Private Warrants   557,000    557,000    557,000    557,000 
Bridge Warrants   173,913    173,913    173,913    173,913 
Extension Warrants   26,086    26,086    26,086    26,086 
September 2024 Warrants   740,741    740,741    740,741    740,741 
Quantum Convertible Note, related party (2)   -    1,862,466    -    1,862,466 
Exchange Note (2)   -    827,330    -    827,330 
September 2024 Convertible Note (3)   -    1,258,733    -    1,258,733 
Series A Preferred stock common stock equivalents (4)   60,850    3,079,000    60,850    3,079,000 
Stock options granted   803,646    803,646    803,646    803,646 
Common stock issuance obligation   51,192    51,192    51,192    51,192 
March 2025 Convertible Note (5)   -    61,718    -    34,974 
May 2025 Convertible Note (6)   -    67,617    -    33,808 
Common Stock Warrants   19,672,130    -    19,672,130    - 
ClearThink Convertible Note (7)   2,010,262    -    1,397,989    - 

 

(1)The Company’s diluted shares have not been included in the computation of diluted net loss per share from continuing operations for the three and six months ended June 30, 2026, and 2025, as the result would be anti-dilutive.
(2)Includes the interest amount thereon and assumes the floor conversion price of $2.00.

 

(3)Includes the principal and interest amount thereon and calculated based on the initial fixed conversion price of $2.00.

 

(4)Assumes the maximum conversion thereon at the floor conversion price of $2.00.

 

(5)Includes the interest amount thereon and assumes the floor conversion price of $2.00.

 

(6)Includes the interest amount thereon and assumes the closing price as of the reporting date.

 

(7)Includes the interest amount thereon and assumes the average closing price for the reporting period.
   Three months ended   Six months ended 
   June 30,
2026		   June 30,
2025		   June 30,
2026		   June 30,
2025		 
Net income (loss) from discontinued operations - basic  $3,927,715   $(709,350)  $2,591,239   $(1,029,656)
Weighted average shares outstanding – basic   53,657,720    16,422,651    51,280,293    16,368,254 
Net income (loss) per share from discontinued operations – basic  $0.07   $(0.04)  $0.05   $(0.06)
                     
Net income (loss) from discontinued operations - diluted   3,920,835    (709,350)   2,578,216    (1,029,656)
Weighted average shares outstanding – diluted   55,780,024    16,422,651    52,790,324    16,368,254 
Net income (loss) per share from discontinued operations – diluted  $0.07   $(0.04)  $0.05   $(0.06)
Excluded securities: (1)                    
Public Warrants   9,877,432    11,500,000    9,877,432    11,500,000 
Private Warrants   557,000    557,000    557,000    557,000 
Bridge Warrants   173,913    173,913    173,913    173,913 
Extension Warrants   26,086    26,086    26,086    26,086 
September 2024 Warrants   740,741    740,741    740,741    740,741 
Quantum Convertible Note, related party (2)   -    1,862,466    -    1,862,466 
Exchange Note (2)   -    827,330    -    827,330 
September 2024 Convertible Note (3)   -    1,258,733    -    1,258,733 
Series A Preferred stock common stock equivalents (4)   -    3,079,000    -    3,079,000 
Stock options granted   803,646    803,646    803,646    803,646 
Common stock issuance obligation   -    51,192    -    51,192 
March 2025 Convertible Note (5)   -    61,718    -    34,974 
May 2025 Convertible Note (6)   -    67,617    -    33,808 
Common Stock Warrants   19,672,130    -    19,672,130    - 

 

(1)The Company’s diluted shares have not been included in the computation of diluted net loss per share from discontinued operations for the three and six months ended June 30, 2025, as the result would be anti-dilutive.
(3)Includes the principal and interest amount thereon and calculated based on the initial fixed conversion price of $2.00.

 

(4)Assumes the maximum conversion thereon at the floor conversion price of $2.00.

 

(5)Includes the interest amount thereon and assumes the floor conversion price of $2.00.

 

(6)Includes the interest amount thereon and assumes the closing price as of the reporting date.
Schedule of Allowance for Credit Losses

The following table presents the Company’s allowance for credit losses on June 30, 2026, and December 31, 2025:

 

   June 30,
2026		   December 31,
2025		 
         
Beginning allowance for credit losses  $835,007   $2,393,033 
Add: Credit loss expense   872,122    1,029,317 
Less: Accounts receivable write-off included in allowance for credit losses above   (64,895)   (2,587,343)
Ending allowance for credit losses  $1,642,234   $835,007 
Schedule of Identifiable Intangible Assets Subject to Amortization Developed technology and customer relationships are amortized using the straight-line method over the five-year and ten-year estimated useful lives of the assets, respectively.
   Estimated  June 30,   December 31, 
   Useful Life  2026   2025 
Customer relationships  10 years   2,100,000    2,100,000 
Developed technology  5 years   10,000,000    10,000,000 
Accumulated amortization      (4,419,996)   (3,315,000)
Intangible assets, net     $7,680,004   $8,785,000 
Schedule of Expected Amortization Expense

Expected amortization expense is as follows:

 

Year ending December 31, 2026 (remaining six months)   1,105,004 
Year ending December 31, 2027   2,210,000 
Year ending December 31, 2028   2,210,000 
Year ending December 31, 2029   1,210,000 
Year ending December 31, 2030   210,000 
Thereafter   735,000 
Total  $7,680,004