10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

Or

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to               

Commission File Number 000-53461

SPECTRUM GLOBAL SOLUTIONS, INC. 

(Exact name of registrant as specified in its charter)

Nevada	26-0592672
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
300 Crown Oak Centre Drive, Longwood, Florida	32750
(Address of principal executive offices)	(Zip Code)

407-512-9102

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ YES ☐ NO

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ YES ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES ☒ NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ☐ YES ☐ NO

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	SGSI	OTCQB

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

2,639,381 common shares issued and outstanding as of June 26, 2020.

Table of Contents

PART I - FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
PART II - OTHER INFORMATION		46
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
SIGNATURES		48

i

PART I – FINANCIAL INFORMATION

EXPLANATORY NOTE

As previously disclosed in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (the “SEC”) on May 14, 2020, the filing of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020 was delayed due to difficulties in communication between the Company’s internal personnel and with external advisors during the COVID-19 emergency. The Company relied on the SEC’s Order Under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies, dated March 25, 2020 (Release No. 34-88465), to delay the filing of this Quarterly Report.

Item 1. Financial Statements

The unaudited interim consolidated financial statements of our company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars, unless otherwise noted.

SPECTRUM GLOBAL SOLUTIONS, INC.

	Page
	Number
Condensed consolidated balance sheets as of March 31, 2020 (unaudited) and December 31, 2019	2
Condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 (unaudited)	3
Condensed consolidated statements of stockholders’ deficit for the three months ended March 31, 2020 and 2019 (unaudited)	4
Condensed consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 (unaudited)	5
Notes to unaudited condensed consolidated financial statements	6-42

1

SPECTRUM GLOBAL SOLUTIONS, INC.

Condensed consolidated balance sheets

	March 31,			December 31,
ASSETS	2020			2019
	(Unaudited)
Current Assets:
Cash	$	73,985		$	468,819
Accounts receivable, net of allowances of $470,303 and $504,785, respectively		4,807,283			5,167,261
Contract assets		237,862			461,681
Due from related party		5,207,585			-
Prepaid expenses and deposits		169,925			200,119
Total current assets		10,496,640			6,297,880
Property and equipment, net of accumulated depreciation of $1,069,416 and $1,058,973, respectively		82,624			93,067
Goodwill		1,905,822			1,905,822
Customer lists, net of accumulated amortization of $504,181 and $440,805, respectively		2,426,648			2,490,024
Tradenames, net accumulated amortization of $235,580 and $212,226, respectively		1,164,541			1,187,895
Operating lease right-of-use assets		136,211			168,384
Other assets		96,189			25,746
Total assets	$	16,308,675		$	12,168,818
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued liabilities	$	4,885,191		$	4,028,285
Contract liabilities		705,396			704,544
Loans payable to related parties		701,258			3,701,258
Loans payable, net of debt discount of $39,409 and $280,174, respectively		347,862			3,578,386
Convertible debentures, current portion, net of discount of $501,346 and $352,055, respectively		3,242,205			2,809,355
Factor financing		2,844,381			-
Derivative liability		2,063,063			992,733
Warrant liability		100,000			100,000
Operating lease liabilities		141,688			173,351
Total current liabilities		15,031,044			16,087,912
Long-term liabilities:
Convertible debentures, net of current portion, net of debt discount of $0 and $98,176, respectively		-			28,324
Total long-term liabilities		-			28,324
Total liabilities		15,031,044			16,116,236
Commitments and Contingencies
Series A preferred stock; $0.00001 par value; 8,000,000 shares authorized; 899,427 issued and 794,427 and 829,427 outstanding as of March 31, 2020 and December 31, 2019, respectively		965,357			1,007,888
Series B preferred stock; $3,500 stated value; 1,000 shares authorized; 1,000 issued and outstanding as of March 31, 2020 and December 31, 2019		484,530			484,530
Total mezzanine equity		1,449,887			1,492,418
Stockholders’ Deficit:
Common stock; $0.00001 par value; 750,000,000 shares authorized; 1,314,705 and 195,715 issued and 1,312,634 and 193,644 outstanding as of March 31, 2020 and December 31, 2019, respectively		13			2
Additional paid-in capital		34,174,562			25,255,291
Treasury stock, at cost		(277,436	)		(277,436	)
Common stock subscribed		74,742			74,742
Accumulated deficit		(34,144,137	)		(30,492,435	)
Total stockholders' deficit		(172,256	)		(5,439,836	)
Total liabilities and stockholders’ deficit	$	16,308,675		$	12,168,818

(The accompanying notes are an integral part of these unaudited condensed consolidated financial statements)

2

SPECTRUM GLOBAL SOLUTIONS, INC.

Condensed consolidated statements of operations

(Unaudited)

	For the three months ended
	March 31,
	2020			2019
Revenue	$	7,130,480		$	11,335,732
Operating expenses:
Cost of revenues		6,619,826			8,824,165
Depreciation and amortization		97,173			93,952
General and administrative		946,131			1,044,706
Salaries and wages		1,128,902			1,358,208
Total operating expenses		8,792,032			11,321,031
(Loss) income from operations		(1,661,552	)		14,701
Other (expenses) income:
(Loss) gain on settlement of debt		(190,902	)		164,467
Amortization of discounts on convertible debentures and loans payable		(388,982	)		(661,352	)
Loss on change in fair value of derivatives		(813,630	)		(369,391	)
Default and debt extension fees		(180,489	)		-
Interest expense		(416,147	)		(471,412	)
Total other (expense) income		(1,990,150	)		(1,337,688	)
Net loss before income taxes		(3,651,702	)		(1,322,987	)
Provision for income taxes		-			9,600
Net loss	$	(3,651,702	)	$	(1,332,587	)
Net loss per share, basic and diluted:	$	(5.06	)	$	(33.96	)
Weighted average common shares outstanding, basic and diluted		722,364			39,240

(The accompanying notes are an integral part of these unaudited condensed consolidated financial statements)

3

SPECTRUM GLOBAL SOLUTIONS, INC.

Condensed consolidated statements of stockholder’s deficit

(Unaudited)

	For the three months ended March 31, 2020
	Common stock				Additional		Common stock		Treasury			Accumulated
	Shares		$		paid-in capital		subscribed		stock			deficit			Total
Balances, January 1, 2020		195,715	$	2	$	25,255,291	$	74,742	$	(277,436	)	$	(30,492,435	)	$	(5,439,836	)
Issuance of common stock to M2B Funding		1,112		-		12,151		-		-			-			12,151
Issuance of common stock to CCAG Investments		9,755		-		51,500		-		-			-			51,500
Issuance of common stock to FJ Vulis		9,755		-		51,500		-		-			-			51,500
Issuance of common stock to Dominion Capital		2,778		-		30,379		-		-			-			30,379
Issuance of common stock to GS Capital Partners		12,859		-		64,257		-		-			-			64,257
Issuance of common stock to WaveTech GmbH debtholders		1,082,731		11		8,507,546		-		-			-			8,507,557
Shares issued for services		-		-		201,938		-		-			-			201,938
Net loss for the period		-		-		-		-		-			(3,651,702	)		(3,651,702	)
Ending balance, March 31, 2020		1,314,705	$	13	$	34,174,562	$	74,742	$	(277,436	)	$	(34,144,137	)	$	(172,256	)

	For the three months ended March 31, 2019
	Common stock				Additional		Common stock		Treasury			Accumulated
	Shares		$		paid-in capital		subscribed		stock			deficit			Total
Balances, January 1, 2019		25,703	$	-	$	18,681,467	$	74,742	$	(277,436	)	$	(24,170,105	)	$	(5,691,332	)
Issuance of common stock to RDW Capital, LLC		3,867		-		293,165		-		-			-			293,165
Issuance of common stock to Silverback Capital		2,060		-		119,663		-		-			-			119,663
Issuance of common stock to Virtual Capital		3,572		-		321,425		-		-			-			321,425
Issuance of common stock to employees pursuant to the conversions of convertible debt		4,667		-		308,000		-		-			-			308,000
Shares issued for services		9,565		-		471,343		-		-			-			471,343
Net loss for the period		-		-		-		-		-			(1,332,587	)		(1,332,587	)
Ending balance, March 31, 2019		49,434	$	-	$	20,195,063	$	74,742	$	(277,436	)	$	(25,502,692	)	$	(5,510,323	)

(The accompanying notes are an integral part of these unaudited condensed consolidated financial statements)

4

SPECTRUM GLOBAL SOLUTIONS, INC.

Condensed consolidated statements of cash flows

(Unaudited)

	For the three months ended
	March 31,
	2020			2019
Cash flows from operating activities:
Net loss	$	(3,651,702	)	$	(1,332,587	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on change in fair value of derivative liability		813,630			369,391
Amortization of discounts on convertible debentures and loans payable		388,982			661,352
Depreciation and amortization		97,173			93,952
Amortization of operating right-of-use assets		32,173			37,016
Amortization of operating right-of-use liabilities		(31,663	)		(36,150	)
Stock-based compensation		201,938			471,343
Loss (gain) on settlement of debt		190,902			(164,468	)
Default and debt extensions fees		180,489			-
Original issue discount		-			20,000
Changes in operating assets and liabilities:
Accounts receivable		359,978			(1,131,653	)
Contract assets		223,819			(365,300	)
Prepaid expenses and deposits		30,194			390,717
Other assets		(70,443	)		3,591
Accounts payable and accrued liabilities		902,627			961,180
Contract liabilities		852			(523,083	)
Net cash used in operating activities		(331,051	)		(544,699	)
Cash flows from investing activities:
Net cash paid upon acquisition		-			(941,593	)
Purchase of equipment		-			(52,540	)
Net cash used in investing activities		-			(994,133	)
Cash flows from financing activities:
Proceeds from loans payable		3,044,690			8,367,190
Repayments of loans payable		(6,515,979	)		(6,147,609	)
Proceeds from loans payable to related parties		299,972			-
Proceeds from convertible debentures		315,000			-
Repayments of convertible debentures		(51,847	)		(334,552	)
Proceeds from factoring financing		4,685,390			-
Repayments of factor financing		(1,841,009	)		-
Net cash (used in) provided by financing activities		(63,783	)		1,885,029
Net (decrease) increase in cash		(394,834	)		346,197
Cash, beginning of period		468,819			620,593
Cash, end of period	$	73,985		$	966,790
Supplemental disclosures of cash flow information:
Cash paid for interest	$	56,847		$	206,467
Cash paid for income taxes	$	-		$	-
Non-cash investing and financing activities:
Common stock issued for conversion of convertible debentures	$	64,257		$	1,042,254
Original issue discounts	$	35,000		$	20,000
Original debt discount against derivative liability	$	315,000		$	189,000
Common stock issued for conversion of Series A preferred stock	$	42,530		$	-
Addition to principal of convertible debenture due to defaults	$	132,758		$	-
Addition to principal of convertible debenture due to debt extension fee	$	47,731		$	-
Common stock issued upon conversion of WaveTech GmbH debt assumed by the Company	$	8,507,557		$	-
Issuance of common stock upon execution of convertible debenture agreements	$	103,000		$	-
Addition to derivative liability due to issuance of stock options	$	44,700		$	-
Net assets acquired in TNS acquisition	$	-		$	935,834
Convertible note issued in TNS acquisition	$	-		$	665,000
Third-party payment of third-party debt	$	-		$	150,000

(The accompanying notes are an integral part of these unaudited consolidated financial statements) 

5

SPECTRUM GLOBAL SOLUTIONS, INC.

Notes to the unaudited condensed consolidated financial statements

March 31, 2020

1. Organization and Going Concern

Spectrum Global Solutions, Inc., (the “Company”) (f/k/a Mantra Venture Group Ltd.) was incorporated in the State of Nevada on January 22, 2007 to acquire and commercially exploit various new energy related technologies through licenses and purchases. On December 8, 2008, the Company reincorporated in the province of British Columbia, Canada.

On April 25, 2017, the Company entered into and closed on an Asset Purchase Agreement with InterCloud Systems, Inc. (“InterCloud”). Pursuant to the terms of the Asset Purchase Agreement, the Company purchased 80.1% of the assets associated with InterCloud’s AW Solutions, Inc., AW Solutions Puerto Rico, LLC, and Tropical Communications, Inc. (collectively “AWS” or the “AWS Entities”) subsidiaries.

On November 15, 2017, the Company changed its name to “Spectrum Global Solutions, Inc.” and reincorporated in the state of Nevada.

On February 14, 2018, the Company entered into an agreement with InterCloud providing for the sale, transfer, conveyance and delivery to the Company of the remaining 19.9% of the assets associated with InterCloud’s AWS business not already purchased by the Company.

On February 6, 2018, the Company entered into and closed on a Stock Purchase Agreement with InterCloud Systems, Inc. (“InterCloud”). Pursuant to the terms of the Stock Purchase Agreement, the Company purchased all of the issued and outstanding capital stock and membership interests of ADEX Corporation, ADEX Puerto Rico LLC, ADEX Towers, Inc. and ADEX Telecom, Inc. (collectively “ADEX” or the “ADEX Entities”). The Company completed the acquisition on February 27, 2018.

On May 18, 2018, the Company transferred all of its ownership interests in and to its subsidiaries Carbon Commodity Corporation, Mantra China Limited, Mantra Media Corp., Mantra NextGen Power Inc., Mantra Wind Inc., Climate ESCO Ltd. and Mantra Energy Alternatives Ltd. to an entity controlled by the Company’s former Chief Executive Officer, Larry Kristof. The new owner of the aforementioned entities assumed all liabilities and obligations with respect to such entities.

On January 4, 2019, the Company entered into a Stock Purchase Agreement with InterCloud. Pursuant to the terms of the Purchase Agreement, InterCloud agreed to sell, and the Company agreed to purchase, all of the issued and outstanding capital stock of TNS, Inc. (“TNS”), an Illinois corporation.

During September 2019, the Company formed ADEX Canada, which is included in the ADEX Entities.

The Company’s AWS Entities are professional, multi-service line, telecommunications infrastructure companies that provide outsourced services to the wireless and wireline industry. The Company’s ADEX Entities are a leading outsource provider of engineering and installation services, staffing solutions and other services which include consulting to the telecommunications industry, service providers and enterprise customers domestically and internationally. The Company’s TNS subsidiary is a Chicago-based structured cabling and next-generation DAS design and installation firm that supports voice, data, video, security and multimedia systems within commercial office buildings, multi-building campus environments, high-rise buildings, data centers and other structures.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of management to raise additional equity capital through private and public offerings of its common stock, and the attainment of profitable operations. As of March 31, 2020, the Company had an accumulated deficit of $34,144,137, and a working capital deficit of $4,534,404. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management requires additional funds over the next twelve months to fully implement its business plan. Management is currently seeking additional financing through the sale of equity and from borrowings from private lenders to cover its operating expenditures. There can be no certainty that these sources will provide the additional funds required for the next twelve months.

6

2. Significant Accounting Policies

Condensed Financial Statements

The accompanying unaudited interim consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Form 10-K for the year ended December 31, 2019. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.

Basis of Presentation/Principles of Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and its subsidiaries, the AWS Entities, the ADEX Entities, and TNS (from the date of acquisition, January 4, 2019). All of the subsidiaries are wholly-owned.

All inter-company balances and transactions have been eliminated.

Reverse Stock Split

On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split.

The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.

All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, equity component of convertible debt, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

7

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company records unbilled receivables for services performed but not billed. Management reviews a customer’s credit history before extending credit. The Company maintains an allowance for doubtful accounts for estimated losses. Estimates of uncollectible amounts are reviewed each period, and changes are recorded in the period in which they become known. Management analyzes the collectability of accounts receivable each period. This review considers the aging of account balances, historical bad debt experience, and changes in customer creditworthiness, current economic trends, customer payment activity and other relevant factors. Should any of these factors change, the estimate made by management may also change. The allowance for doubtful accounts at March 31, 2020 and December 31, 2019 was $470,303 and $504,785, respectively.

Property and Equipment

Property and equipment are stated at cost. The Company depreciates the cost of property and equipment over their estimated useful lives at the following annual rates:

Automotive	3-5 years straight-line basis
Computer equipment and software	3-7 years straight-line basis
Leasehold improvements	5 years straight-line basis
Office equipment and furniture	5 years straight-line basis
Research equipment	5 years straight-line basis

Goodwill

Goodwill was generated through the acquisition of AWS, ADEX and TNS as the total consideration paid exceeded the fair value of the net assets acquired.

The Company tests its goodwill for impairment at least annually on December 31st and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and the Company’s consolidated financial results.

The Company tests goodwill by estimating fair value using a Discounted Cash Flow (“DCF”) model. The key assumptions used in the DCF model to determine the highest and best use of estimated future cash flows include revenue growth rates and profit margins based on internal forecasts, terminal value and an estimate of a market participant’s weighted-average cost of capital used to discount future cash flows to their present value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

8

Intangible Assets

At March 31, 2020 and December 31, 2019, definite-lived intangible assets primarily consisted of tradenames and customer relationships which are being amortized over their estimated useful lives ranging from 5-35 years.

The Company periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence when events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. The Company has no intangibles with indefinite lives.

For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. The Company measures the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

Long-lived Assets

In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. There were no impairment charges recorded during the three months ended March 31, 2020 and 2019.

Foreign Currency Translation

Transactions in foreign currencies are translated into the currency of measurement at the exchange rates in effect on the transaction date. Monetary balance sheet items expressed in foreign currencies are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting foreign exchange gains and losses are recognized in income.

The Company’s integrated foreign subsidiaries are financially or operationally dependent on the Company. The Company uses the temporal method to translate the accounts of its integrated operations into U.S. dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period, except for amortization, which is translated on the same basis as the related asset. The resulting foreign exchange gains or losses are recognized in income.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

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The Company conducts business, and files federal and state income, franchise or net worth, tax returns in Canada, the United States, in various states within the United States and the Commonwealth of Puerto Rico. The Company determines it’s filing obligations in a jurisdiction in accordance with existing statutory and case law. The Company may be subject to a reassessment of federal and provincial income taxes by Canadian tax authorities for a period of three years from the date of the original notice of assessment in respect of any particular taxation year. For Canadian and U.S. income tax returns, the open taxation years range from 2010 to 2019. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. U.S. state statutes of limitations for income tax assessment vary from state to state. Tax authorities of Canada and U.S. have not audited any of the Company’s, or its subsidiaries’, income tax returns for the open taxation years noted above.

Significant management judgment is required in determining the provision for income taxes, and in particular, any valuation allowance recorded against the Company’s deferred tax assets. Deferred tax assets are regularly reviewed for recoverability. The Company currently has significant deferred tax assets resulting from net operating loss carryforwards and deductible temporary differences, which should reduce taxable income in future periods. The realization of these assets is dependent on generating future taxable income.

The Company follows the guidance set forth within ASC Topic 740, “Income Taxes” (“ASC Topic 740”) which prescribes a two-step process for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. The first step evaluates an income tax position in order to determine whether it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The second step measures the benefit to be recognized in the financial statements for those income tax positions that meet the more likely than not recognition threshold. ASC Topic 740 also provides guidance on de-recognition, classification, recognition and classification of interest and penalties, accounting in interim periods, disclosure and transition. Penalties and interest, if incurred, would be recorded as a component of current income tax expense.

The Company received a tax notice from the Puerto Rican government requesting payment of taxes related to 2014. The amount due as of March 31, 2020 and December 31, 2019 was $156,711 plus penalties and interest of $126,700 for a total obligation due of $283,411. This tax assessment was included in accrued expenses at March 31, 2020 and December 31, 2019.

Revenue Recognition

Adoption of New Accounting Guidance on Revenue Recognition

The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied.

Contract Types

The Company’s contracts fall under three main types: 1) unit-price, 2) fixed-price, and 3) time-and-materials. Unit-price contracts relate to services being performed and paid on a unit basis, such as per mile of construction completed. Fixed-price contracts are based on purchase order line items that are billed on individual invoices as the project progresses and milestones are reached. Time-and-materials contracts include employees working permanently at customer locations and materials costs incurred by those employees.

A significant portion of the Company’s revenues come from customers with whom the Company has a master service agreement (“MSA”). These MSA’s generally contain customer specific service requirements.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the Company’s different revenue service types the performance obligation is satisfied at different times. For professional services revenue, the performance obligation is met when the work is performed. In certain cases this may be each day, or each week depending on the customer. For construction services, the performance obligation is met when the work is completed and the customer has approved the work. Contract assets include unbilled amounts for costs of services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets.

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Revenue Service Types

The following is a description of the Company’s revenue service types, which include professional services and construction:

● Professional services are services provided to the clients where the Company delivers distinct contractual deliverables and/or services. Deliverables may include but are not be limited to: engineering drawings, designs, reports and specification. Services may include, but are not be limited to: consulting or professional staffing to support our client’s objectives. Consulting or professional staffing services may be provided remotely or on client premises and under their direction and supervision.

● Construction Services are services provided to the client where the Company may self-perform or subcontract services that require the physical construction of infrastructure or installation of equipment and materials.

Disaggregation of Revenues

The Company disaggregates its revenue from contracts with customers by service type, contract type, contract duration, and timing of transfer of goods or services. See the below tables:

Revenue by service type	Three months ended March 31, 2020		Three months ended March 31, 2019
Professional Services	$	5,367,311	$	5,935,226
Construction		1,763,169		5,400,506
Total	$	7,130,480	$	11,335,732

Revenue by contract duration	Three months ended March 31, 2020		Three months ended March 31, 2019
Short-term	$	28,305	$	65,430
Long-term		7,102,175		11,270,302
Total	$	7,130,480	$	11,335,732

Revenue by contract type	Three months ended March 31, 2020		Three months ended March 31, 2019
Unit-price	$	160,827	$	3,238,658
Fixed-price		1,602,342		2,161,848
Time-and-materials		5,367,311		5,935,226
Total	$	7,130,480	$	11,335,732

The Company also disaggregates its revenue by operating segment and geographic location (refer to Note 16, Segment Disclosures, for additional information).

Accounts Receivable

Accounts receivable include amounts from work completed in which the Company has billed. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable.

Contract Assets and Liabilities

Contract assets include costs and services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract assets totaled $237,862 and $461,681, respectively.

Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract liabilities totaled $705,396 and $704,544, respectively.

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Cost of Revenues

Cost of revenues includes all direct costs of providing services under the Company’s contracts, including costs for direct labor provided by employees, services by independent subcontractors, operation of capital equipment (excluding depreciation and amortization), direct materials, insurance claims and other direct costs.

Research and Development Costs

Research and development costs are expensed as incurred.

Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”), using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

The Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASU 2018-07.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock-based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations over the requisite service period.

Loss per Share

The Company computes loss per share in accordance with ASC 260, “Earnings per Share” which requires presentation of both basic and diluted loss per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2020 and December 31, 2019, respectively, the Company had 990,158 and 286,736 common stock equivalents outstanding.

Leases

The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 840.

The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

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The Company recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per ASC 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities, Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or result of operations.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivables. The Company maintains its cash balances with high-credit-quality financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. These deposits may be withdrawn upon demand and therefore bear minimal risk.

The Company provides credit to customers on an uncollateralized basis after evaluating client creditworthiness. For the three months ended March 31, 2020, three customers accounted for 31%, 13% and 13%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 42%, 3% and 10%, respectively, of trade accounts receivable as of March 31, 2020. For the three months ended March 31, 2019, four customers accounted for 30%, 18%, 10% and 10%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 30%, 20%, 7% and 5%, respectively, of trade accounts receivable as of March 31, 2019.

The Company’s customers are primarily located within the domestic United States of America and Puerto Rico. Revenues generated within the domestic United States of America accounted for approximately 98% and 97% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively. Revenues generated from customers in Puerto Rico accounted for approximately 2% and 3% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively.

Fair Value Measurements

The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by US generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows:

Level 1 – quoted prices for identical instruments in active markets;

Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Financial instruments consist principally of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, loans payable and convertible debentures. Derivative liabilities are determined based on “Level 3” inputs, which are significant and unobservable and have the lowest priority. There were no transfers into or out of “Level 3” during the three months ended March 31, 2020 or the year ended December 31, 2019. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

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The Company’s financial assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2020 and December 31, 2019 consisted of the following:

	Total fair value at March 31, 2020		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	2,063,063	$	-	$	-	$	2,063,063

	Total fair value at December 31, 2019		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	992,733	$	-	$	-	$	992,733

(1) The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Refer to Note 10, Derivative Liabilities, for additional information.

Derivative Liabilities

The Company accounts for derivative instruments in accordance with ASC Topic 815, “Derivatives and Hedging” and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads, relying first on observable data from active markets. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of March 31, 2020 and December 31, 2019, the Company had a derivative liability of $2,063,063 and $992,733, respectively.

Sequencing Policy

Under ASC 815-40-35, the Company has adopted a sequencing policy whereby, in the event that reclassification of contracts from equity to assets or liabilities is necessary pursuant to ASC 815 due to the Company’s inability to demonstrate it has sufficient authorized shares as a result of certain securities with a potentially indeterminable number of shares, shares will be allocated on the basis of the earliest issuance date of potentially dilutive instruments, with the earliest grants receiving the first allocation of shares. Pursuant to ASC 815, issuance of securities to the Company’s employees or directors are not subject to the sequencing policy.

Reclassifications

Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on total financial position, net income, or stockholders’ equity.

3. Due From Related Party

As of March 31, 2020, the Company had a due from related party balance of $5,207,585. This amount is the net of the amounts discussed below in the “Assumption of WaveTech GmbH debt” and “Loan with WaveTech GmbH, 8% interest” sections of this note.

Assumption of WaveTech GmbH debt

In connection with the share purchase agreement with WaveTech GmbH discussed in Note 15, Commitments and Contingencies, the Company assumed $7,531,309 of WaveTech GmbH debt. The amount included both principal and accrued interest. These note holders were issued new notes which were convertible into shares of the Company’s common stock. On February 18, 2020, these notes were converted into 1,082,731 shares at a conversion price of $7.80 per share. The value of the conversion was determined using the principal and accrued interest of the new notes at the time of conversion, which was $8,507,557. The Company did not record a gain or loss on the conversion as WaveTech GmbH is considered a related party (refer to Note 6, Related Party Transactions, for additional detail). In the event that the Company’s acquisition of WaveTech GmbH is terminated, this amount will be owed by WaveTech GmbH to the Company. The amount owed would be offset by the amounts owed by the Company to WaveTech GmbH discussed in the “Loan with WaveTech GmbH, 8% interest” section of this note. The share purchase agreement is not considered closed for accounting purposes because, as of the date of this report, the Series C preferred stock shares have not been issued (refer to Note 15, Commitments and Contingencies, for additional detail).

Loan with WaveTech GmbH, 8% interest

As of March 31, 2020, the loan with WaveTech GmbH discussed in Note 6, Related Party Transactions, is being netted against the amounts discussed in the “Assumption of WaveTech GmbH debt” section of this note. The balance as of December 31, 2019 was $3,000,000.

During the three months ended March 31, 2020, the Company received an additional $299,972 from WaveTech GmbH.

As of March 31, 2020, principal of $3,299,972 remains outstanding. The note is due on demand.

In the event that the Company’s acquisition of WaveTech GmbH is terminated, the amount of this note would be used to offset amounts owed by WaveTech GmbH to the Company.

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4. Property and Equipment

Property and equipment as of March 31, 2020 and December 31, 2019 consisted of the following:

	March 31,			December 31,
	2020			2019
Computers and office equipment	$	349,271		$	349,271
Equipment		382,140			382,140
Research equipment		143,129			143,129
Software		227,563			227,563
Vehicles		94,356			94,356
Vehicles under capital lease		-			-
Total		1,196,459			1,196,459
Less: impairment		(44,419	)		(44,419	)
Less: accumulated depreciation		(1,069,416	)		(1,058,973	)
Equipment, net	$	82,624		$	93,067

During the three months ended March 31, 2020 and 2019, the Company recorded depreciation expense of $10,443 and $7,018, respectively. 

5. Intangible Assets

Intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following:

	Cost		Accumulated Amortization		Impairment		Net carrying value at March 31, 2020		Net carrying value at December 31, 2019
Customer relationship and lists	$	2,930,829	$	504,181	$	-	$	2,426,648	$	2,490,024
Trade names		1,400,121		235,580		-		1,164,541		1,187,895
Total intangible assets	$	4,330,950	$	739,761	$	-	$	3,591,189	$	3,677,919

During the three months ended March 31, 2020 and 2019, the Company recorded amortization expense of $86,730 and $86,934, respectively.

The estimated future amortization expense for the next five years and thereafter is as follows:

Year ending December 31,
2020	$	260,191
2021		346,921
2022		346,921
2023		346,921
2024		346,921
Thereafter		1,943,314
Total	$	3,591,189

6. Related Party Transactions

Unsecured Amounts Due to InterCloud

As of March 31, 2020 and December 31, 2019, the Company owed $50,577 to InterCloud, which is non-interest bearing, unsecured, and due on demand and included in accounts payable and accrued liabilities.

InterCloud Related Party Reclassification

During May 2019, as a result of shares of common stock issued to InterCloud as a result of conversions of convertible debentures, the Company determined that InterCloud is a related party. The effective date of the reclassification was January 1, 2018. 

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WaveTech GmbH Related Party Reclassification

During November 2019, as a result of the Company acquiring 60% of the outstanding shares of WaveTech GmbH (refer to Note 15, Commitments and Contingencies, for additional detail), the Company determined that WaveTech GmbH is a related party. The effective date of the reclassification was January 1, 2019. The transaction is not considered closed for accounting purposes because as of the date of this report the Series C preferred stock shares have not been issued.

Loans Payable to Related Parties

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following loans payable to related parties:

	March 31,			December 31,
	2020			2019
Promissory note issued to Roger Ponder, 10% interest, unsecured, due on demand	$	18,858		$	18,858
Promissory note issued to Keith Hayter, 10% interest, unsecured, due on demand		130,000			130,000
Promissory note issued to Keith Hayter, 10% and 8% interest, unsecured, matures April 13, 2020		85,000			85,000
Promissory note issued to Keith Hayter, 8% interest, unsecured, due on demand		80,000			80,000
Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020		170,000			170,000
Promissory note issued to InterCloud Systems, Inc., non-interest bearing, unsecured and due on demand		217,400			217,400
Loan with WaveTech GmbH, 8% interest, due on demand		-	*		3,000,000
Total	$	701,258		$	3,701,258

* As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

Promissory note issued to Roger Ponder, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019

On November 30, 2017, the Company received $18,858 pursuant to a promissory note issued to the Chief Executive Officer of the Company. The note issued is unsecured, was due on November 30, 2018 and bears interest at a rate of 10% per annum. On November 30, 2018, the lender agreed to extend the maturity of the loan to November 30, 2019. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on November 30, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019

On November 30, 2017, the Company received $130,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, due on November 30, 2018 and bears interest at a rate of 10% per annum. On November 30, 2018, the lender agreed to extend the maturity of the loan to November 30, 2019. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on November 30, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% and 8% interest, unsecured, matures April 13, 2020

On April 13, 2018, the Company received $85,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, due on April 13, 2019 and bears interest at a rate of 8% per annum. At December 31, 2018, the amount of $85,000 was owed. On April 13, 2019, the note was amended to a maturity date of April 13, 2020 and an interest rate of 10%. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on April 13, 2020 and is now due on demand.

Promissory note issued to Keith Hayter, 8% interest, unsecured, matured October 1, 2019

On August 21, 2018, the Company received $80,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, was due on August 20, 2019 and bears interest at a rate of 8% per annum. On August 20, 2019, the note was amended to a maturity date of October 1, 2019 and an interest rate of 10%. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on October 1, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020

On August 12, 2019, the Company received $170,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, is due on August 11, 2020 and bears interest at a rate of 10% per annum.

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Convertible promissory note, InterCloud Systems, Inc, 8% interest, unsecured, matured April 27, 2018

On April 27, 2017, the Company issued a convertible promissory note in the aggregate principal amount of $2,000,000. The interest on the outstanding principal due under the unsecured note accrued at a rate of 8% per annum. All principal and accrued interest under the unsecured note was due one year following the issue date of the unsecured note and was convertible into shares of common stock at a conversion price equal to 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $1,174,000 resulted in a discount to the note payable of $943,299. On December 15, 2017, February 14, 2018, February 21, 2018, June 7, 2018, January 24, 2019, and March 15, 2019 the holder of the convertible promissory note entered into agreement to sell and assign a total of $105,000, $105,000, $105,000, $39,375, $100,000 and $100,000 of the outstanding principal, respectively to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the conversion price for the total of $354,375 of notes assigned was equal to the lesser 70% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. The Company accounted for this assignment in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the assignment as a debt extinguishment and adjusted the fair value of the derivative to its fair value on the assignment date.

On May 6, 2019, the remaining principal balance of $1,445,625 was converted into shares of the Company’s common stock through an automatic forced conversion.

Convertible promissory note, InterCloud Systems, Inc, 1% interest, unsecured, matures August 16, 2019

On February 16, 2018, the Company issued InterCloud a convertible note with a principal amount of $793,894 to settle a contingent liability of $793,894 owed to InterCloud as a result of the acquisition of AWS. The note was originally due on August 16, 2019 and bore interest at 1% per annum. The note was convertible into common shares of the Company at a conversion price equal to the 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging” (refer to Note 10, Derivative Liabilities, for additional information on embedded conversion features). The initial fair value of the conversion feature of $348,000 resulted in a discount to the note payable of $348,000.

On August 16, 2019, the remaining principal balance of $793,894 was converted into shares of the Company’s common stock through an automatic forced conversion.

Convertible promissory note, InterCloud Systems, Inc, 6% interest, unsecured, matured March 27, 2019

On February 27, 2018, the Company issued a convertible promissory note in the aggregate principal amount of $2,000,000. The interest on the outstanding principal due under the ADEX note accrued at a rate of 6% per annum. All principal and accrued interest under the ADEX note was due one year following the issue date of the ADEX note and was convertible into shares of common stock at a conversion price equal to of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion, but in no event ever lower than $300 (the “Floor”), unless the note was in default, at which time the Floor would have terminated.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $2,455,000 resulted in a discount to the note payable of $639,000.

On September 26, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $75,000 of the outstanding principal to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the assigned note bore interest at 5% and the conversion price for the $75,000 of notes assigned was equal to the lesser 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. On December 3, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $50,000 of the outstanding principal to a third party. The Company accounted for the assignments in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the assignment as a debt extinguishment and adjusted the fair value of the derivative to its fair value on the assignment date.

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During the year ended December 31, 2019, the Company repaid $55,124 of principal outstanding.

During the year ended December 31, 2019, the principal amount was reduced by $295,000 as a result of a working capital adjustment.

On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.

Promissory note issued to InterCloud Systems, Inc., non-interest bearing, unsecured and due on demand

In connection with the acquisition of ADEX from InterCloud, $500,000 of the purchase price was retained by the Company to satisfy any outstanding liabilities of ADEX incurred prior to the closing date.

During the year ended December 31, 2019, the Company repaid $57,600 of this amount.

As of March 31, 2020, principal of $217,400 remains outstanding.

Loan with WaveTech GmbH., 8% interest

On July 15, 2019, the Company entered into a share purchase agreement with WaveTech GmbH, a German corporation (refer to Note 15, Commitments and Contingencies, for additional detail). In connection with the share purchase agreement, the Company was to receive $3,000,000 in cash at or before consummation of the transactions described in the agreement. The Company received $1,325,895 which was placed into escrow to satisfy the amounts outstanding to WaveTech Global, Inc (refer to Note 7, Loans Payable, for additional detail). The Company received an additional $1,664,083 during July 2019 to satisfy the $3,000,000 of cash per the share purchase agreement. The remaining $10,022 was recorded as a foreign exchange loss in the consolidated statement of operations for the year ended December 31, 2019. The loan bears interest at a rate of 8% per annum.

On November 14, 2019, the Company acquired 60% of the outstanding shares of WaveTech GmbH (refer to Note 15, Commitments and Contingencies, for additional detail). As a result, the $1,325,895 in escrow was returned to the Company. As of December 31, 2019, principal of $3,000,000 was outstanding.

As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

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7. Loans Payable

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following loans payable:

	March 31,		December 31,
	2020		2019
Promissory note issued to J. Thacker, non-interest bearing, unsecured and due on demand	$	41,361	$	41,361
Promissory note issued to S. Kahn, non-interest bearing, unsecured and due on demand		7,760		7,760
Promissory note issued to 0738856 BC ltd non-interest bearing, unsecured and due on demand		2,636		2,636
Promissory note issued to 0738856 BC Ltd, non-interest bearing, unsecured and due on demand		15,000		15,000
Promissory note issued to Bluekey Energy, non-interest bearing, unsecured and due on demand		7,500		7,500
Subscription amount due to T. Warkentin non-interest bearing, unsecured and due on demand		50,000		50,000
Promissory note issued to Old Main Capital LLC, 10% interest, unsecured and due on demand		12,000		12,000
Promissory note issued to Pawn Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $11,260 and $31,365		60,459		94,928
Promissory note issued to RDM Capital Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $28,149 and $79,087		151,146		237,319
Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020, net of debt discount of $149,180		-		2,973,458
Promissory note issued to C6 Capital, non-interest bearing, matures April 15, 2020, net of debt discount of $20,272		-		136,424
Total	$	347,862	$	3,578,386

Promissory note issued to J. Thacker, non-interest bearing, unsecured and due on demand

The Company owed $41,361 ($53,300 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to S. Kahn, non-interest bearing, unsecured and due on demand

The Company owed $7,760 ($10,000 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to 0738856 BC ltd non-interest bearing, unsecured and due on demand

The Company owed $2,636 ($3,400 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to 0738856 BC Ltd, non-interest bearing, unsecured and due on demand

The Company owed $15,000 to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to Bluekey Energy, non-interest bearing, unsecured and due on demand

The Company owed $7,500 to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Subscription amount due to T. Warkentin non-interest bearing, unsecured and due on demand

In March 2012, the Company received $50,000 for the subscription of 167 shares of the Company’s common stock. During the year ended May 31, 2013, the Company and the subscriber agreed that the shares would not be issued and that the subscription would be returned. The subscription has been reclassified as a non-interest bearing demand loan until the funds are refunded to the subscriber. The Company owed $50,000 as of March 31, 2020 and December 31, 2019.

Promissory note issued to Old Main Capital LLC, 10% interest, unsecured and due on demand

On April 12, 2017, received $12,000 pursuant to a promissory note. The note issued is unsecured, due on demand and bears interest at a rate of 10% per annum. The Company owed $12,000 as of March 31, 2020 and December 31, 2019.

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Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020

On October 10, 2018, the Company’s wholly-owned subsidiary, ADEX (the “Borrower”), entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Heritage Bank of Commerce (the “Lender”). Under the Loan and Security Agreement, the Borrower may borrow an aggregate outstanding amount not to exceed the lesser of up to (i) $5,000,000 or (ii) the Borrowing Base (as defined in the Loan and Security Agreement) through one or more advances through October 10, 2020 (the “Maturity Date”), subject to the Lender’s satisfactory annual review of the Borrower which is currently ongoing. On the Maturity Date, all advances must be repaid. The Lender may, in its sole discretion and upon the Borrower’s request, make advances to the Borrower after the Maturity Date subject to the terms and conditions under the Loan and Security Agreement. Part of the proceeds of the initial credit extension of the Loan and Security Agreement were used to pay off borrowings owed to Prestige Capital Corporation described in Note 8, Convertible Debentures.

Interest is payable under the Loan and Security Agreement at a per annum rate equal to the Prime Rate (as defined in the Loan and Security Agreement) plus 2%. The Borrower’s obligations under the Loan and Security Agreement are secured by all assets of the Company. In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.

The Loan and Security Agreement provides that upon the occurrence of an event of default, among other things, all outstanding amounts under the Loan and Security Agreement or any portion thereof becomes immediately due and payable. Events of default under the Loan and Security Agreement include, among other items, the Borrower’s failure to comply with certain affirmative and negative covenants relating to the Company, its securities and its financial condition.

In connection with the financing, on October 10, 2018, the Company also issued a warrant to purchase 380 shares of the Company’s common stock at $375.00 per share for three years. The fair value of the warrants of $87,410 and $190,000 of debt issuance costs resulted in a discount to the note payable of $277,410. At December 31, 2018, the Company owed $3,483,015 pursuant to this agreement and will record accretion equal to the debt discount of $257,194 over the remaining term of the note.

During the year ended December 31, 2019, the Company received an aggregate of $26,772,037 and repaid an aggregate of $27,132,642, for a net repaid amount of $360,605. At December 31, 2019, the Company owed $3,122,638 pursuant to this agreement and was to record accretion equal to the debt discount of $149,180 over the remaining term of the note.

During the three months ended March 31, 2020, the Company received an aggregate of $6,167,328 and repaid an aggregate of $3,142,796.

On February 11, 2020, pursuant to an assignment and consent agreement, Heritage sold, transferred and assigned to Bay View Funding all of Heritage’s right, title, and interest in the loan and security agreement (refer to Note 9, Factor Financing, for additional detail). As a result of the assignment, the Company recorded a loss on settlement of debt of $149,180 related to the remaining accretion of debt discount in the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

Loan with Libertas Funding LLC

On January 4, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with Libertas Funding LLC, a Connecticut limited liability company (“Libertas”). Under the Financing Agreement, the Financing Parties sold to Libertas future receivables in an aggregate amount equal to $1,460,000 for a purchase price of $1,000,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay Libertas $31,602 each week based upon an anticipated 20% of its future receivables until such time as $1,460,000 had been paid, a period Libertas and the Financing Parties estimated to be approximately eleven months. In the event that the Financing Agreement was paid off earlier than eleven months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions. The Company used the proceeds of the Financing Agreement for the acquisition of TNS.

On February 1, 2019, the Company fully repaid the Financing Agreement. As a result, the amount owed at December 31, 2019 was $0.

Loan with WaveTech Global, Inc., matured April 28, 2019

On February 4, 2019, the Company entered into a share purchase agreement with WaveTech Global. This agreement included a promissory note in the principal amount of $1,325,895, which matured on April 28, 2019. On July 9, 2019, the share purchase agreement was terminated. As a result, the Company placed the amount due to WaveTech Global into escrow using cash received from the WaveTech GmbH share purchase agreement (refer to Note 15, Commitments and Contingencies for additional detail). In connection with the WaveTech GmbH transaction dated November 14, 2019, the escrow amount was returned to the Company.

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Loan with C6 Capital

On August 16, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with C6 Capital. Under the Financing Agreement, the Financing Parties sold to C6 Capital future receivables in an aggregate amount equal to $337,500 for a purchase price of $250,000. The Company received cash of $242,500 and recorded a debt discount of $95,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay C6 Capital $10,045 each week based upon an anticipated 20% of its future receivables until such time as $337,500 had been paid, a period C6 Capital and the Financing Parties estimated to be approximately eight months. In the event that the Financing Agreement was paid off earlier than eight months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $180,804 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $156,696 of the original balance under the agreement. As a result, the amount owed at March 31, 2020 was $0. The Company recorded a loss on settlement of debt of $1,490 to the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

Loan with Pawn Funding

On December 10, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with Pawn Funding. Under the Financing Agreement, the Financing Parties sold to Pawn Funding future receivables in an aggregate amount equal to $135,000 for a purchase price of $100,000. The Company received cash of $97,000 and recorded a debt discount of $38,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay Pawn Funding $4,219 each week based upon an anticipated 15% of its future receivables until such time as $135,000 has been paid, a period Pawn Funding and the Financing Parties estimate to be approximately eight months. In the event that the Financing Agreement is paid off earlier than eight months, there is to be a discount to the sum owed. The Financing Agreement also contains customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $8,437 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $54,844 of the original balance under the agreement.

At March 31, 2020, the Company owed $71,719 pursuant to this agreement and will record accretion equal to the debt discount of $11,260 over the remaining term of the note.

Loan with RDM Capital Funding

On December 10, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with RDM Capital Funding. Under the Financing Agreement, the Financing Parties sold to RDM Capital Funding future receivables in an aggregate amount equal to $337,500 for a purchase price of $250,000. The Company received cash of $242,500 and recorded a debt discount of $95,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay RDM Capital Funding $10,574 each week based upon an anticipated 3% of its future receivables until such time as $337,500 had been paid, a period RDM Capital Funding and the Financing Parties estimated to be approximately eight months. In the event that the Financing Agreement was paid off earlier than eight months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $21,094 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $137,111 of the original balance under the agreement. At March 31, 2020, the Company owed $179,295 pursuant to this agreement and was to record accretion equal to the debt discount of $28,149 over the remaining term of the note.

During the period of April 1, 2020 through May 8, 2020, the Company repaid the balance in full. The final payment included the discount described above, which amounted to $62,652 (refer to Note 17, Subsequent Events, for additional detail).

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8. Convertible Debentures

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following convertible debentures:

	March 31,		December 31,
	2020		2019
Convertible promissory note, Barn 11, 18% interest, unsecured, matured June 1, 2019	$	594,362	$	594,362
Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020, net of debt discount of $50,443 and 105,752		1,512,458		1,461,265
Convertible promissory note, Michael Roeske, 24% interest, unsecured, due on demand, net of debt discount of $0 and $3,512		145,000		112,488
Convertible promissory note, Joel Raven, 24% interest, unsecured, due on demand, net of debt discount of $0 and $8,658		455,000		355,342
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures August 2, 2020, net of debt discount of $13,891 and $24,819		86,109		98,181
Convertible promissory note, SCS, LLC, 24% interest, unsecured, matured March 30, 2020, due on demand, net of debt discount of $0 and $13,005		63,788		38,025
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020, net of debt discount of $75,861 and $113,674		72,139		34,326
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021, net of debt discount of $40,750 and $53,051		27,750		15,449
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021, net of debt discount of $35,417 and $45,125		22,583		12,875
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures October 24 2020, net of debt discount of $16,778 and $23,986		106,222		99,014
Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020, net of debt discount of $46,898 and $58,648		28,102		16,352
Convertible promissory note, CCAG Investments, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Convertible promissory note, FJ Vulis and Associates, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Total		3,242,205		2,837,679
Less: Long-term portion of convertible debentures, net of debt discount		-		(28,324	)
Convertible debentures, current portion, net of debt discount	$	3,242,205	$	2,809,355

Convertible promissory note, Barn 11, 18% interest, unsecured, matured June 1, 2019

On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates.

The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851.

On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default.

During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020.

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Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020

On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding.

As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019.

The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020.

During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note.

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Convertible promissory note issued in connection with the acquisition of TNS, Inc.

On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00.

The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000.

On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement.

Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020

On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020.

During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock.

The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum.

At March 31, 2020, the Company owed $145,000 pursuant to this agreement.

Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020

On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020.

During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock

The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum.

At March 31, 2020, the Company owed $455,000 pursuant to this agreement.

Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020

On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000.

24

The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note was originally due on August 2, 2020. The secured note was convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price had a floor of $3.00 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $28,000 resulted in an additional discount to the note payable of $28,000, for a total debt discount of $39,000.

During the three months ended March 31, 2020, the holder of the note converted $23,000 of principal and $1,026 of accrued interest into shares of the Company’s common stock (refer to Note 11, Common Stock, for additional information). As a result of these conversions, the Company recorded a loss on settlement of debt of $40,232 to the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

At March 31, 2020, the Company owed $100,000 pursuant to this agreement and was to record accretion equal to the debt discount of $13,891 over the remaining term of the note.

On April 30, 2020, the holder of the note converted the remaining $100,000 of principal and $5,742 of accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, GS Capital Partners, LLC, 8% interest, unsecured, matures October 24, 2020

On October 24, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on October 24, 2020. The note is convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price has a floor of $3.00 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $20,000 resulted in an additional discount to the note payable of $20,000, for a total debt discount of $31,000.

At March 31, 2020, the Company owed $123,000 pursuant to this agreement and will record accretion equal to the debt discount of $16,778 over the remaining term of the note.

Convertible promissory note, SCS, LLC, 8% interest, unsecured, matured March 30, 2020

On September 1, 2019, the Company entered into and closed on a Securities Purchase Agreement with SCS, LLC, pursuant to which the Company issued to SCS, LLC an unsecured convertible promissory note in the aggregate principal amount of $51,030 in exchange for rent.

The interest on the outstanding principal due under the unsecured note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note and has a maturity date of March 30, 2020. The secured note is convertible into shares of the Company’s common stock at 75% of the lowest average VWAP in the 15 trading days prior to the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $29,000 resulted in a discount to the note payable of $29,000.

25

The note matured on March 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $12,758. The interest also increased from 8% per annum to 24% per annum.

At March 31, 2020, the Company owed $63,788 pursuant to this agreement.

On June 19, 2020, the holder of the note began converting principal and accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020

On September 17, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $148,000 for an aggregate purchase price of $135,000. The Company received the cash on October 1, 2019.

The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $159,000 resulted in an additional discount to the note payable of $135,000, for a total debt discount of $148,000. The remaining $24,000 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019.

At March 31, 2020, the Company owed $148,000 pursuant to this agreement and was to record accretion equal to the debt discount of $75,861 over the remaining term of the note.

On April 1 2020, the holder of the note began converting principal into shares of the Company’s common stock. Between that date and June 9, 2020, the holder of the note converted the full principal amount of the note along with the accrued interest (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021

On October 22, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $68,500 for an aggregate purchase price of $60,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on January 22, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $56,000 resulted in an additional discount to the note payable of $56,000, for a total debt discount of $64,500.

At March 31, 2020, the Company owed $68,500 pursuant to this agreement and will record accretion equal to the debt discount of $40,751 over the remaining term of the note.

On June 9, 2020, the holder of the note began converting principal into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

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Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021

On November 27, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $58,000 for an aggregate purchase price of $50,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on February 26, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $43,000 resulted in an additional discount to the note payable of $43,000, for a total debt discount of $51,000.

At March 31, 2020, the Company owed $58,000 pursuant to this agreement and will record accretion equal to the debt discount of $35,417 over the remaining term of the note.

Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020

On November 12, 2019, the Company entered into and closed on a Securities Purchase Agreement with Crown Bridge Partners, LLC, pursuant to which the Company issued to Crown Bridge Partners, LLC a convertible promissory note in the aggregate principal amount of $225,000 for an aggregate purchase price of $202,500. The Company received the first tranche of $75,000 on November 21, 2019 for an aggregate purchase price of $65,500. The Company also issued a warrant equal to the face amount of the note with a term of three years to purchase 2,500 shares of common stock at an exercise price of $30.00 per share.

The interest on the outstanding principal due under the first tranche of the note accrues at a rate of 10% per annum. All principal and accrued but unpaid interest under the first tranche of the note is due on November 21, 2020. The first tranche of the note is convertible into shares of the Company’s common stock at 60% of the average of the three lowest VWAPs in the 20 trading days prior to and including the conversion date.

The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion option feature of $138,000 and warrant feature of $20,138 resulted in an additional discount to the note payable of $65,500, for a total debt discount of $75,000. The remaining $92,638 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019.

At March 31, 2020, the Company owed $75,000 pursuant to this agreement and will record accretion equal to the debt discount of $46,898 over the remaining term of the note.

Convertible promissory note, CCAG Investments, LLC, 20% interest, secured, matures June 30, 2020

On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with CCAG Investments, LLC, pursuant to which the Company issued to CCAG Investments, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share.

The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.

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In connection with the issuance of the note, the Company also issued to CCAG Investments, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail).

The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000.

The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance.

On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, FJ Vulis and Associates LLC, 20% interest, secured, matures June 30, 2020

On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with FJ Vulis and Associates, LLC, pursuant to which the Company issued to FJ Vulis and Associates, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share.

The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.

In connection with the issuance of the note, the Company also issued to FJ Vulis and Associates, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail).

The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000.

The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance.

On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail).

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9. Factor Financing

On February 11, 2020, pursuant to an assignment and consent agreement, Bay View Funding was sold, transferred and assigned all of Heritage’s right, title, and interest in the loan and security agreement with the Company’s wholly-owned subsidiary, ADEX, discussed in Note 7, Loans Payable. In connection with the agreement, the Company received $3,024,532 from Bay View Funding. This money was used to pay off the amounts owed to Heritage at the time of the assignment and consent agreement. The initial term of the factoring agreement is twelve months from the initial funding date.

Under the factoring agreement, the Company’s ADEX subsidiary may borrow up to the lesser of $5,000,000 or an amount equal to the sum of all undisputed purchased receivables multiplied by the advance percentage, less any funds in reserve. ADEX will pay to Bay View Funding a factoring fee upon purchase of receivables by Bay View Funding equal to 0.75% of the gross face value of the purchased receivable for the first 30 day period from the date said purchased receivable is first purchased by Bay View Funding, and a factoring fee of 0.35% per 15 days thereafter until the date said purchased receivable is paid in full or otherwise repurchased by ADEX or otherwise written off by Bay View Funding within the write off period. ADEX will also pay a finance fee to Bay View Funding on the outstanding advances under the agreement at a floating rate per annum equal to the Prime Rate plus 3%. The finance rate will increase or decrease monthly, on the first day of each month, by the amount of any increase or decrease in the Prime Rate, but at no time will the finance fee be less than 7.75%.

During the three months ended March 31, 2020, the Company received an aggregate of $4,685,390 and repaid an aggregate of $1,841,858. The Company owed $2,844,381 under the agreement as of March 31, 2020.

10. Derivative Liabilities

The embedded conversion options of the convertible debentures described in Note 8, Convertible Debentures, contain conversion features that qualify for embedded derivative classification. The fair value of the liability is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on change in fair value of derivatives. Derivative liabilities also include the fair value of the Company’s share purchase warrants and stock options discussed in Note 13, Share Purchase Warrants and Stock Options. As of March 31, 2020, the derivative liability balance of $2,063,062 was comprised of $1,225,000 of derivatives related to the Company’s convertible debentures, and $838,062 of derivatives related to the Company’s share purchase warrants and stock options. As of December 31, 2019, the derivative liability balance of $992,733 was comprised of $801,000 of derivatives related to the Company’s convertible debentures, and $191,732 of derivatives related to the Company’s share purchase warrants and stock options.

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the three months ended March 31, 2020 and the year ended December 31, 2019:

	March 31,		December 31,
	2020		2019
Balance at the beginning of the period	$	992,733	$	3,166,886
Change in fair value of embedded conversion option		813,630		(1,843,935	)
Fair value of debt derivatives at issuance		84,000		-
Fair value of warrant derivatives at issuance		128,000		-
Fair value of option derivatives at issuance		44,700		-
Conversion of derivative liability		-		(1,281,888	)
Original discount limited to proceeds of notes				376,500
Repayment of convertible note		-		(164,468	)
Derivative issued as part of acquisition		-		189,000
Fair value of derivative liabilities in excess of notes proceeds received		-		116,638
Addition to derivative due to default penalty		-		466,000
Impact of note extinguishment		-		(32,000	)
Balance at the end of the period	$	2,063,063	$	992,733

The Company uses Level 3 inputs for its valuation methodology for the embedded conversion option liabilities as their fair values were determined by using Monte-Carlo model or a Binomial Model based on various assumptions.

Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:

	Expected volatility	Risk-free interest rate	Expected dividend yield			Expected life (in years)
At December 31, 2019	230 - 304%	1.55 - 1.75%		0	%	0.25 - 1.16
At March 31, 2020	193 - 361%	0.04 - 1.75%		0	%	0.08 - 2.85

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11. Common Stock

Authorized Shares

On November 15, 2017, the Company revised its authorized share capital to increase the number of authorized common shares from 275,000,000 common shares with a par value of $0.00001, to 750,000,000 common shares with a par value of $0.00001. The reverse stock split discussed in Note 2, Significant Accounting Policies, did not change the number of authorized shares of the Company’s common stock.

Treasury Stock

The Company holds 2,071 common shares in treasury at a cost of $277,436.

Issuance of Shares Pursuant to Conversion of Series A Preferred Stock

On January 7, 2020, the Company issued 1,112 shares of common stock to M2B Funding upon the conversion of 10,000 shares of Series A preferred stock with a stated value of $1 per share.

On February 11, 2020, the Company issued 2,778 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

Issuance of Shares Pursuant to the Execution of New Convertible Debentures

On February 7, 2020, the Company issued 9,755 shares of common stock to CCAG Investments, LLC upon the execution of a new convertible note described in Note 8, Convertible Debentures.

On February 7, 2020, the Company issued 9,755 shares of common stock to FJ Vulis and Associates, LLC upon the execution of a new convertible note described in Note 8, Convertible Debentures.

Issuance of Shares Pursuant to GS Capital Partners, LLC Convertible Debentures

On February 12, 2020, the Company issued 1,647 shares of common stock to GS Capital Partners, LLC upon the conversion of $8,000 of principal and $323 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On March 13, 2020, the Company issued 11,212 shares of common stock to GS Capital Partners, LLC upon the conversion of $15,000 of principal and $703 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Issuance of Shares Pursuant to WaveTech GmbH Post-Closing Notes

On February 18, 2020, the Company issued 1,082,731 shares of common stock to holders of WaveTech GmbH post-closing notes upon the conversion of $8,507,557 of principal and accrued interest pursuant to the post-closing notes described in Note 3, Due From Related Party.

12. Preferred Stock

Series A

On November 15, 2017, the Company created one series of the 20,000,000 preferred shares it is authorized to issue, consisting of 8,000,000 shares, to be designated as Series A preferred stock.

On October 29, 2018, the Company made the first amendment to the Certificate of Designation of its Series A convertible preferred stock. This amendment updated the conversion price to be equal to the greater of 75% of the lowest VWAP during the ten trading day period immediately preceding the date a conversion notice is delivered or $120.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock.

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On August 16, 2019, the Company made the second amendment to the Certificate of Designation of its Series A convertible preferred stock. As a result of this amendment, the Company recorded a deemed dividend of $488,072 for the year ended December 31, 2019 in accordance with ASC 260-10-599-2. Subsequent to the second amendment, the principal terms of the Series A preferred stock shares were as follows:

Voting rights – The Series A preferred stock shares do not have voting rights.

Dividend rights – The holders of the Series A preferred stock shares shall not be entitled to receive any dividends. No dividends (other than those payable solely in common stock) shall be paid on the common stock or any class or series of capital stock ranking junior, as to dividends, to the Series A preferred stock shares during any fiscal year of the Company until there shall have been paid or declared and set apart during that fiscal year for the holders of the Series A preferred stock shares a dividend in an amount per share equal to (i) the number of shares of common stock issuable upon conversion of the Series A preferred stock times (ii) the amount per share of the dividend to be paid on the common stock.

Conversion rights – The holders of the Series A preferred stock shares have the right to convert each Series A preferred stock share and all accrued and unpaid dividends thereon shall be convertible at the option of the holder thereof, at any time after the issuance of such share into fully paid and nonassessable shares of common stock of the Company. The number of shares of common stock into which each share of the Series A preferred stock shares may be converted shall be determined by dividing the sum of the stated value of the Series A preferred stock shares ($1.00 per share) being converted and any accrued and unpaid dividends by the conversion price in effect at the time of the conversion. The Series A preferred stock shares may be converted at an initial conversion price of the lower of 80% of the lowest VWAP during the five trading day period immediately preceding the date a conversion notice is delivered or $15.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock. The conversion price has a floor of $9.00 per share.

Liquidation rights – Upon the occurrence of any liquidation, each holder of Series A preferred stock shares then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment shall be made in respect of the common stock, or other series of preferred stock then in existence that is outstanding and junior to the Series A preferred stock shares upon liquidation, an amount per share of Series A preferred stock shares equal to the amount that would be receivable if the Series A preferred stock shares had been converted into common stock immediately prior to such liquidation distribution, plus, accrued and unpaid dividends.

In accordance with ASC 480 Distinguishing Liabilities from Equity, the Company has classified the Series A preferred stock shares as temporary equity or “mezzanine.”

Holders of Series A preferred stock shares began converting into shares of common stock during May 2018 (refer to Note 11, Common Stock, for additional detail).

On April 8, 2020, the Company made the third amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price and the conversion price floor to $3.00 per share (refer to Note 17, Subsequent Events, for additional detail).

On June 18, 2020, the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share (refer to Note 17, Subsequent Events, for additional detail).

Series B

On April 16, 2018, the Company designated 1,000 shares of Series B preferred stock of the Company with a stated value of $3,500 per share. The Series B preferred stock is neither redeemable nor convertible into common stock. The principal terms of the Series B preferred stock shares are as follows:

Issue Price - The stated price for the Series B preferred stock shares shall be $3,500 per share.

Redemption - The Series B preferred stock shares are not redeemable.

Dividends - The holders of the Series B preferred stock shares shall not be entitled to receive any dividends.

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Preference of Liquidation - The Corporation’s Series A preferred stock (the “Senior Preferred Stock) shall have a liquidation preference senior to the Series B preferred stock. Upon any fundamental transaction, liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the holders of the shares of the Series B preferred stock shares shall be entitled, after any distribution or payment is made upon any shares of capital stock of the Company having a liquidation preference senior to the Series B preferred stock shares, including the Senior Preferred Stock, but before any distribution or payment is made upon any shares of common stock or other capital stock of the Company having a liquidation preference junior to the Series B preferred stock shares, to be paid in cash the sum of $3,500 per share. If upon such liquidation, dissolution or winding up, the assets to be distributed among the Series B preferred stock holders and all other shares of capital stock of the Company having the same liquidation preference as the Series B preferred stock shall be insufficient to permit payment to said holders of such amounts, then all of the assets of the Company then remaining shall be distributed ratably among the Series B preferred stock holders and such other capital stock of the Company having the same liquidation preference as the Series B preferred stock, if any. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, after provision is made for Series B preferred stock holders and all other shares of capital stock of the Company having the same liquidation preference as the Series B preferred stock, if any, then-outstanding as provided above, the holders of common stock and other capital stock of the Company having a liquidation preference junior to the Series B preferred stock shall be entitled to receive ratably all remaining assets of the Company to be distributed.

Voting - The holders of shares of Series B preferred stock shall be voted together with the shares of common stock such that the aggregate voting power of the Series B preferred stock is equal to 51% of the total voting power of the Company.

Conversion - There are no conversion rights.

In accordance with ASC 480 Distinguishing Liabilities from Equity, the Company has classified the Series B preferred stock shares as temporary equity or “mezzanine.”

Series C

On November 14, 2019, the Company designated 9,000,000 shares of Series C preferred stock of the Company with a stated value of $0.00001 per share. The principal terms of the Series C preferred stock shares are as follows:

Issue Price - The stated price for the Series C preferred stock shall be $0.00001 per share.

Redemption - The Series C preferred stock shares are not redeemable.

Dividends - The holders of the Series C preferred stock shares shall not be entitled to receive any dividends.

Preference of Liquidation - Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a “liquidation”), the Series C preferred stock shall (i) first be entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to $0.00001 for each share of Series C preferred stock before any distribution or payment shall be made to the holders of any junior securities and (ii) then be entitled to receive out of the assets, whether capital or surplus, of the Company the same amount that a holder of common stock would receive if the Series C preferred stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders of common stock.

Voting - Except as otherwise provided herein or as required by law, the Series C preferred stock shall be voted together with the shares of common stock, par value $0.00001 per share of the Company and any other series of preferred stock then outstanding, and not as a separate class, at any annual or special meeting of stockholders of the Company, with respect to any question or matter upon which the holders of common stock have the right to vote, such that the voting power of each share of Series C preferred stock is equal to the voting power of the shares of common stock that each such share of Series C preferred stock is convertible into pursuant hereto. The Series C preferred stock shall be entitled to notice of any stockholders’ meeting in accordance with the bylaws of the Company, and may act by written consent in the same manner as the holders of common stock of the Company.

Conversion - on the second business day following the earlier of (i) the reverse split of the Company’s common stock, (ii) the listing of the Company on a national securities exchange and (iii) the six-month anniversary of the closing date (as defined below) (the “Series C Conversion Date”), without any further action, all outstanding shares of Series C shall automatically convert into an aggregate number of shares of the Company’s common stock equal to the greater of (i) $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below), or (ii) the Aggregate Value/$9.75 (as adjusted for any reverse stock split or similar adjustment that may occur prior to the Series C Conversion Date). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any Losses (as defined below).

For purposes hereof, a “Triggering Event” shall include any liability arising from a breach of the representations or warranties of WaveTech GmbH (as defined below) contained in the share purchase agreement dated July 15, 2019 and all amendments thereto (as amended, the “SPA”), by and between the Company and WaveTech GmbH, a corporation organized under the laws of the Republic of Germany. “Closing Date” shall have the meaning ascribed to the term in the SPA. “Strike Price” shall mean the closing price per share of the Company’s common stock on the trading day immediately preceding the Series C Conversion Date.

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement with WaveTech GmbH. As a result of the amendment, certain terms of the Company’s Series C preferred stock were changed (refer to Note 17, Subsequent Events, for additional detail).

As of the date of this report, the Series C shares have not been issued. The Company expects to issue these shares during the third quarter of 2020 (refer to Note 15, Commitments and Contingencies, for additional detail).

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13. Share Purchase Warrants and Stock Options

From time to time, the Company issues share purchase warrants and stock options, which are classified as liabilities. The total fair value of the Company’s share purchase warrants and stock options was $838,062 and $191,732 as of March 31, 2020 and December 31, 2019, respectively. This amount is included in derivative liabilities on the consolidated balance sheets. The valuation methodology, including the assumptions used in the valuation, are discussed in Note 10, Derivative Liabilities. The weighted-average remaining life on the share purchase warrants as of March 31, 2020 and December 31, 2019 was 1.6 years and 1.3 years, respectively. The stock options outstanding at March 31, 2020 and December 31, 2019 were not subject to any vesting terms.

The following table summarizes the activity of share purchase warrants for the three months ended March 31, 2020:

	Number of warrants		Weighted average exercise price
Balance at December 31, 2019		14,075	$	331.46
Issued		64,134		253.57
Expired		-		-
Balance at March 31, 2020		78,209	$	267.59

As of March 31, 2020, the following share purchase warrants were outstanding:

Number of warrants		Exercise price		Issuance Date	Expiry date
459			1,530.00	28-04-2017	28-04-2020
834			300.00	27-06-2017	27-06-2020
52,506	*		360.00	14-02-2018	13-02-2021
417			480.00	21-02-2018	21-02-2021
1,667			300.00	17-05-2018	17-05-2020
380			324.00	10-10-2018	10-10-2021
2,500			30.00	21-11-2019	21-11-2022
9,723			9.00	07-02-2020	07-02-2023
9,723			9.00	07-02-2020	07-02-2023
78,209

* This warrant is convertible into 4% of the number of common shares of the Company outstanding. At March 31, 2020, it is 4% of the 1,312,634 shares outstanding as of that date.

The following table summarizes the activity of stock options for the three months ended March 31, 2020:

	Number of stock options		Weighted average exercise price
Balance at December 31, 2019		5,000	$	9.00
Issued		-		-
Expired		-		-
Balance at March 31, 2020		5,000	$	9.00

As of March 31, 2020, the following stock options were outstanding:

Number of stock options		Exercise price		Issuance Date	Expiry date
	5,000		9.00	11/25/2019	11/25/2021

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14. Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases, which introduced a lessee model that requires the majority of leases to be recognized on the balance sheet. On January 1, 2019, the Company adopted the ASU using the modified retrospective transition approach and elected the transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of $269,341 as of January 1, 2019. During the year ended December 31, 2019, non-cash right of use assets recorded in exchange for non-cash operating lease liabilities was $316,600. The Company leases certain office space and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term. The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The Company used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The following table sets forth the operating lease right of use (“ROU”) assets and liabilities as of March 31, 2020:

	March 31,		December 31,
	2020		2019
Operating lease assets	$	136,211	$	168,384
Operating lease liabilities:
Current operating lease liabilities		141,688		173,351
Total operating lease liabilities	$	141,688	$	173,351

Expense related to leases is recorded on a straight-line basis over the lease term, including rent holidays. During the three months ended March 31, 2020 and 2019, the Company recognized operating lease expense of $52,308 and $48,175, respectively. Operating lease costs are included within selling, administrative and other expenses on the consolidated statements of operations. During the three months ended March 31, 2020, short-term lease costs were $50,073 and $78,035, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $51,799 and $47,309 for the three months ended March 31, 2020 and 2019, respectively, and this amount is included in operating activities in the consolidated statements of cash flows. During the three months ended March 31, 2020 and 2019, respectively, the Company reduced its operating lease liabilities by $31,662 and $36,150 for cash paid.

The operating lease liabilities as of March 31, 2020 reflect a weighted average discount rate of 58%. The weighted average remaining term of the leases is 2.75 years. Remaining lease payments as of March 31, 2020 are as follows: 

Year ending December 31,
2020	$	70,203
2021		95,914
2022		86,681
2023		21,330
Total lease payments		274,128
Less: imputed interest		(132,440	)
Total	$	141,688

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15. Commitments and Contingencies

Leases

The Company leases certain of its properties under leases that expire on various dates through 2023. Some of these agreements include escalation clauses and provide for renewal options ranging from one to five years. Leases with an initial term of 12 months or less and immaterial leases are not recorded on the balance sheet (refer to Note 14, Leases, for amounts expensed during the three months ended March 31, 2020 and 2019).

WaveTech GmbH Share Purchase Agreement

On July 15, 2019, the Company entered into a share purchase agreement with WaveTech GmbH, a German corporation.

The merger of WaveTech GmbH into the Company shall be effected through a sale and exchange of shares and cash. Pursuant to the share purchase agreement, in exchange for shares of common stock of the Company, the Company will acquire all right, title and interest in all of the issued and outstanding shares of stock of WaveTech GmbH in exchange for the issuance of the Company’s Series C preferred stock as well as the assumption by the Company of $8,507,557 of WaveTech GmbH debt (refer to Note 3, Due From Related Party, for additional detail). The Company was to receive $3,000,000 in cash at or before consummation of the transactions contemplated by the share purchase agreement (the “Transactions”). Upon consummation of the Transactions, the current WaveTech GmbH shareholders will beneficially own a majority of the outstanding shares of the Company.

The consummation of the Transactions is also subject to the satisfaction or waiver (if permitted by law) of certain closing conditions, including, among other things, (i) the accuracy of the representations and warranties of the parties in all material respects and (ii) the performance of and compliance with the covenants of the parties in all material respects.

The parties are required to use commercially reasonable efforts to cause to be taken and to do or cause to be done all actions and things as are necessary under the terms of the share purchase agreement or under applicable law, in order to consummate the Transactions. The parties are also required to, among other things, cooperate in all respects with each other in connection with any filing or submission to any governmental authority in connection with the Transactions.

The share purchase agreement also contains certain termination rights for both the Company and WaveTech GmbH, including that the Company or WaveTech GmbH may terminate the share purchase agreement if WaveTech GmbH has not obtained executed assignment agreements from its shareholders holding an aggregate of (i) fifty one percent (51%) of the issued and outstanding shares of WaveTech GmbH by the date that is ninety (90) days following the date of the share purchase agreement and (ii) ninety percent (90%) of the issued and outstanding shares of WaveTech GmbH by March 31, 2020. As of the date of this report, the executed assignment agreements had not been obtained and neither party had chosen to terminate the deal.

On November 14, 2019, the Company entered into Amendment Number 1 of the share purchase agreement and acquired approximately 60% of the outstanding shares of WaveTech GmbH. In connection with the Company acquiring these shares, the Company’s board appointed Dag Valand to be a director of the Company and appointed Silas Poel to be the Company’s Chief Operating Officer and director. Mr. Valand is the CEO and co-founder of WaveTech GmbH and Mr. Poel is the Chief Operating Officer of WaveTech GmbH. Additionally, on February 19, 2020, the Company’s board appointed Brynjar Meling to be a director of the Company. Mr. Meling previously served as a director of WaveTech GmbH.

The Company determined that the acquisition had not been completed for accounting purposes as of the three months ended March 31, 2020 because the Series C preferred stock shares have not yet been issued.

As of December 31, 2019, the Company had received $2,989,978 in cash from WaveTech GmbH. Additionally, the Company recorded a foreign exchange loss of $10,022 in the consolidated statement of operations for the year ended December 31, 2019. During the three months ended March 31, 2020, the Company received an additional $299,972 in cash from WaveTech GmbH. This $3,299,972 is included in due from related party as of March 31, 2020 (refer to Note 3, Due From Related Party, for additional detail). Additionally, as of the date of this report, the Series C preferred stock shares have not been issued. 

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement (refer to Note 17, Subsequent Events, for additional detail).

Between the period of April 1, 2020 through June 25, 2020, the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH (refer to Note 17, Subsequent Events, for additional detail). As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH. 

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Oasis Capital, LLC Equity Purchase Agreement and Registration Rights Agreement

On August 29, 2019, the Company entered into an equity purchase agreement and registration rights agreement with Oasis Capital, LLC, a Puerto Rico limited liability Company. Under the terms of the equity purchase agreement, Oasis Capital agreed to purchase from the Company up to $2,500,000 of the Company’s common stock upon effectiveness of a registration statement on Form S-1 (the “Registration Statement”) filed with the SEC and subject to certain limitations and conditions set forth in the equity purchase agreement.

Following effectiveness of the Registration Statement, and subject to certain limitations and conditions set forth in the equity purchase agreement, the Company shall have the discretion to deliver put notices to Oasis Capital and Oasis Capital will be obligated to purchase shares of the Company’s common stock, par value $0.00001 per share based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to Oasis Capital in each put notice shall not exceed the lesser of $250,000 or two hundred percent (200%) of the average daily trading volume of the Company’s common stock during the ten (10) trading days preceding the put. Pursuant to the equity purchase agreement, Oasis Capital and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s common stock to Oasis Capital that would result in Oasis Capital’s beneficial ownership of the Company’s outstanding common stock exceeding 9.99%. The price of each put share shall be equal to eighty five percent (85%) of the market price (as defined in the equity purchase agreement). Puts may be delivered by the Company to Oasis Capital until the earlier of (i) the date on which Oasis Capital has purchased an aggregate of $2,500,000 worth of common stock under the terms of the equity purchase agreement, (ii) August 29, 2022, or (iii) written notice of termination delivered by the Company to Oasis Capital, subject to certain equity conditions set forth in the equity purchase agreement.

As of the date of this report, the Company has not received the funds described in the equity purchase agreement and has not filed the Registration Statement with the SEC.

16. Segment Disclosures

During the three months ended March 31, 2020 and 2019, the Company had two operating segments including:

● AWS/ADEX/TNS, which is comprised of the AWS Entities, the ADEX Entities, and TNS.

● Spectrum Global Solutions (SGS), which consists of the rest of the Company’s operations.

Factors used to identify the Company’s reportable segments include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance. The Company’s operating segments have been broken out based on similar economic and other qualitative criteria. The Company operates the SGS reporting segment in one geographical area (the United States) and the AWS/ADEX/TNS operating segment in two geographical areas (the United States and Puerto Rico).

Financial statement information by operating segment for the three months ended March 31, 2020 is presented below:

	Three Months Ended March 31, 2020
	Spectrum Global			AWS/ADEX/ TNS			Total
Net sales	$	-		$	7,130,480		$	7,130,480
Operating loss		(745,562	)		(915,990	)		(1,661,552	)
Interest expense		341,226			74,921			416,147
Depreciation and amortization		-			97,173			97,173
Total assets as of March 31, 2020		5,194,959			11,113,716			16,308,675

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Geographic information as of and for the three months ended March 31, 2020 is presented below:

	Revenues For The Three Months Ended March 31, 2020		Long-lived Assets as of March 31, 2020
Puerto Rico	$	170,512	$	9,268
United States		6,959,968		5,802,767
Consolidated total		7,130,480		5,812,035

Financial statement information by operating segment for the three months ended March 31, 2019 and as of December 31, 2019 is presented below:

	Three Months Ended March 31, 2019
	Spectrum Global			AWS/ADEX		Total
Net sales	$	-		$	11,335,732	$	11,335,732
Operating (loss) income		(954,965	)		969,666		14,701
Interest expense		399,555			71,857		471,412
Depreciation and amortization		-			93,952		93,952
Total assets as of December 31, 2019		11,783			12,157,035		12,168,818

Geographic information for the three months ended March 31, 2019 and as of December 31, 2019 is presented below: 

	Revenues For The Three Months Ended March 31, 2019		Long-lived Assets as of December 31, 2019
Puerto Rico	$	310,478	$	9,698
United States		11,025,254		5,861,240
Consolidated total		11,335,732		5,870,938

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17. Subsequent Events

COVID-19

Beginning in early 2020, there has been an outbreak of coronavirus (“COVID-19”), initially in China and which has spread globally. The full extent of the outbreak, related business and travel restrictions and changes to behavior intended to reduce its spread are evolving. Therefore, the full extent to which COVID-19 may impact Company’s results of operations, liquidity or financial position is uncertain. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company and the economies in which the Company operates.

On April 21, April 27, 2020, and May 12, 2020, our AWS, ADEX, and AWS PR subsidiaries received $672,400, $2,682,125, and $78,000, respectively (the “PPP Funds”). AWS entered into a loan agreement with Iberia Bank, ADEX entered into a loan agreement with Heritage Bank of Commerce, and AWS PR entered into a loan agreement with Banco Popular de Puerto Rico. These loan agreements were pursuant to the CARES Act. The CARES Act was established in order to enable small businesses to pay employees during the economic slowdown caused by COVID-19 by providing forgivable loans to qualifying businesses for up to 2.5 times their average monthly payroll costs. The amount borrowed under the CARES Act is eligible to be forgiven provided that (a) the Company uses the PPP Funds during the eight week period after receipt thereof, and (b) the PPP Funds are only used to cover payroll costs (including benefits), rent, mortgage interest, and utility costs. The amount of loan forgiveness will be reduced if, among other reasons, the Company does not maintain staffing or payroll levels. Principal and interest payments on any unforgiven portion of the PPP Funds (the “PPP Loan”) will be deferred for six months and will accrue interest at a fixed annual rate of 1.0% and carry a two year maturity date. There is no prepayment penalty on the CARES Act Loan.

Issuance of Shares Pursuant to Power Up Lending Group LTD. Convertible Debentures

On April 1, 2020, the Company issued 5,715 shares of common stock to Power Up Lending Group LTD. upon the conversion of $12,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 13, 2020, the Company issued 9,196 shares of common stock to Power Up Lending Group LTD. upon the conversion of $16,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 16, 2020, the Company issued 8,621 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 16, 2020, the Company issued 8,621 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 20, 2020, the Company issued 12,122 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 30, 2020, the Company issued 58,434 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On May 12, 2020, the Company issued 38,956 shares of common stock to Power Up Lending Group LTD. upon the conversion of $10,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On May 13, 2020, the Company issued 77,912 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

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On May 20, 2020, the Company issued 113,379 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 9, 2020, the Company issued 62,359 shares of common stock to Power Up Lending Group LTD. upon the conversion of $5,000 of principal and $5,520 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 9, 2020, the Company issued 71,132 shares of common stock to Power Up Lending Group LTD. upon the conversion of $12,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 12, 2020, the Company issued 118,554 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 16, 2020, the Company issued 118,554 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 26, 2020, the Company issued 118,777 shares of common stock to Power Up Lending Group LTD. upon the conversion of $16,500 of principal and $2,540 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Dominion Capital Modification

On April 2, 2020, in connection with the convertible debenture outstanding to Dominion Capital, the Company paid a $20,000 modification fee in order to avoid an event of default under the note and receive payment forbearance for a period of 30 days.

Issuance of Shares Pursuant to Conversion of Series A Preferred Stock

On April 9, 2020, the Company issued 8,334 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

On April 29, 2020, the Company issued 8,334 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

On June 22, 2020, the Company issued 85,000 shares of common stock to M2B Funding upon the conversion of 17,000 shares of Series A preferred stock with a stated value of $1 per share.

On June 25, 2020, the Company issued 75,000 shares of common stock to Dominion Capital upon the conversion of 15,000 shares of Series A preferred stock with a stated value of $1 per share.

Amendments to the Certificate of Designation of the Company’s Series A Preferred Stock

On April 8, 2020, the Company made the third amendment to the Certificate of Designation of its Series A preferred stock which lowered the fixed conversion price and the conversion price floor to $3.00 per share.

On June 18, 2020, the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share.

Reverse Stock Split

On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split.

The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.

All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.

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Amendment Number 2 of the Share Purchase Agreement with WaveTech GmbH

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement with WaveTech GmbH. Amendment Number 2 replaced the conversion terms of the Series C preferred stock included with Amendment Number 1 with the following:

Conversion. On the second business day following the earlier of (i) the later of (A) April 30, 2020, or such later date as may be determined by the Board, and (B) a reverse split of the common stock. (ii) the listing of the Company on a national securities exchange and (iii) the six-month anniversary of the issuance of shares of Series C to such holder (such earliest date. the “Series C Conversion Date”), without any further action, all outstanding shares of Series C shall automatically convert into an aggregate number of shares of common stock equal to $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any losses (as defined below). “Strike Price” shall mean the closing price per share of the Company’s common stock on the trading day immediately preceding the Series C Conversion Date.

For purposes hereof, a “Triggering Event” shall include any liability arising from a breach by WaveTech GmbH, a corporation organized under the laws of the Republic of Germany, of any of its representations or warranties contained in that certain Share Purchase Agreement (the “SPA”), by and between the Corporation and WaveTech GmbH. “Losses” shall have the meaning set forth in the SPA.

Additionally, Amendment Number 2 adjusted the amount of common stock issued on the Series C Conversion Date as follows:

If on the earlier of (a) the tenth (l0th) business day prior to the listing of the Company on a national securities exchange (“Uplisting”), or (b) December 15, 2020, the aggregate value of the shares of common stock issued upon conversion of the Series C (the “Conversion Shares”) is less than 95% of the aggregate value of the Conversion Shares on the Series C Conversion Date (such difference in value, the “First Value Differential”), then the Company shall make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the First Value Differential (such additional shares, the “First True-Up Shares”). In the event (i) an Uplisting does not occur until sometime in 2021, and (ii) on such date in 2021 as the Board may determine, but in no event later than the tenth (10th) business day prior to the Uplisting (the “Second True-Up Date”), the aggregate value of the Conversion Shares as of the Second True-Up Date is less than 95% of the aggregate value of the Conversion Shares as of December 15, 2020 (such difference in value, the “Second Value Differential”), the Company shall, at the Board’s discretion, make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the Second Value Differential (such additional shares, the “Second True-Up Shares”). To the extent any shares of Series C are issued after the Series C Conversion Date, then the holder(s) of such shares shall receive the same number of Conversion Shares such holder(s) would have received had they held the Series C on the Series C Conversion Date.

Issuance of Shares Pursuant to GS Capital Partners, LLC Convertible Debentures

 On April 30, 2020, the Company issued 302,121 shares of common stock to GS Capital Partners, LLC upon the conversion of $100,000 of principal and $5,742 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Repayment of CCAG Investments, LLC Convertible Promissory Note

On May 6, 2020, the Company repaid 120% of the principal balance owed to CCAG Investments, LLC. The total payment was $218,534, which included accrued interest of $8,534.

Repayment of FJ Vulis and Associates, LLC Convertible Promissory Note

On May 6, 2020, the Company repaid 120% of the principal balance owed to FJ Vulis and Associates, LLC. The total payment was $218,247, which included accrued interest of $8,247.

Payments to RDM Capital Funding

During the period of April 1, 2020 through May 8, 2020, the Company repaid the balance in full. Total cash payments during this period were $116,643, with a discount of $62,652 as a result of the Company paying the note off in under eight months from issuance.

Issuance of Shares Pursuant to SCS, LLC Convertible Debentures

On June 19, 2020, the Company issued 23,555 shares of common stock to SCS, LLC upon the conversion of $4,000 of principal and $240 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Update on WaveTech GmbH transaction

Between the period of April 1, 2020 through June 25, 2020, the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH. As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH. 

Both parties have mutually agreed that the Series C preferred stock shares will be issued subsequent to June 30, 2020, likely during the third quarter of 2020. Once the Series C preferred stock shares are issued, the transaction will be considered closed for accounting purposes.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plan”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our unaudited consolidated financial statements are stated in United States dollars ($) and are prepared in accordance with United States generally accepted accounting principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to “$” refer to United States dollars and all references to “common stock” refer to the common shares in our capital stock.

Unless specifically set forth to the contrary, when used in this report the terms “we”, “our”, the “Company” and similar terms refer to Spectrum Global Solutions, Inc., a Nevada corporation, and its consolidated subsidiaries.

The information that appears on our website at www.SpectrumGlobalSolutions.com is not part of this report.

Description of Business

On February 5, 2018, we completed our corporate jurisdiction continuation from the jurisdiction of the Province of British Columbia to the jurisdiction of the State of Nevada in accordance with the Articles of Conversion and the Articles of Incorporation filed with the Nevada Secretary of State. Our principal offices are located at 300 Crown Oak Centre, Longwood, Florida 32750. Our telephone number is (407) 512-9102. On January 2, 2018, we changed our fiscal year end to December 31.

We are a leading provider of services and solutions in the telecommunications industry to top tier communication carriers, service providers, utilities and Fortune 1000 enterprises. The telecommunications sector provides services and solutions throughout the United States, Guam, Canada and the Caribbean.

Our telecommunications services are supported by our subsidiaries: the AWS Entities, the ADEX Entities, and TNS. The AWS Entities provide a broad range of professional services and solutions to top tier communication carriers and Fortune 1000 enterprise customers. The telecommunication division offers carriers, service providers and enterprise customers professional contracting services, to include: infrastructure audits; site acquisition; architectural, structural and civil design and analysis; construction management; construction; installation; warehousing and logistics; maintenance services, that support the build-out and upgrade and operation of some of the most advanced networks, small cell, Wi-Fi, fiber and distributed antenna system (DAS) networks. We believe the expansion and migration of these next-generation networks, our long-term relationships supported by multiyear master service agreements (MSA) and multi-year service contracts with major wireless, commercial wireline and wireless operators, DAS operators, tower companies, original equipment manufacturers (OEMs) and prime contractor/project management organization provides us a significant opportunity as a long term leading and well respected industry leader in this marketplace. ADEX is a leading outsource provider of engineering and installation services, staffing solutions and other services which include consulting to the telecommunications industry, service providers and enterprise customers. ADEX’s managed solutions diversifies the ability to service customers domestically and internationally throughout the project lifecycle. ADEX customers include many leading wireless and wireline telecommunications providers, cable broadband multiple-system operators (“MSOs”) and OEMs. On a weekly basis, the Company deploys hundreds of telecommunication professionals in support of its customers. The Company believes that its global footprint of support is a differentiating factor for national and international-based customers needing a broad range of technical expertise for management of their legacy and next generation networks. The Company seeks to assist its customers throughout the entire life cycle of a network deployment via its comprehensive suite of managed solutions that include consulting and professional staffing services to service providers as well as enterprise customers, network implementation, network installation, network upgrades, rebuilds, design, engineering and integration wireless network support, wireless network integration, wireless and wireline equipment installation and commissioning, wireless site development and construction management, network engineering, project management, disaster recovery design engineering and integration. TNS is a Chicago-based structured cabling and next-generation DAS design and installation firm that supports voice, data, video, security and multimedia systems within commercial office buildings, multi-building campus environments, high-rise buildings, data centers and other structures. TNS extends our geographic reach to the Midwest area and our client reach to end-users, such as multinational corporations, universities, school districts and other large organizations and enterprise clientele that have significant ongoing next generation network needs. TNS works both in the U.S. and internationally.

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We provide the following categories of offerings to our customers:

● Telecommunications: We provide a comprehensive technology platform and array of professional services and solutions to our clients that are applicable across multiple platforms and technologies to include but not limited to: Wi-Fi , Wi-Max and wide-area networks, fiber networks (ISP/OSP), DAS networks (iDAS/oDAS), small cell distributed networks, public safety networks and enterprise networks for incumbent local exchange carriers (ILECs), telecommunications original equipment manufacturers (OEMs), cable broadband multiple system operators (MSOs), tower and network aggregators, utility entities, government and enterprise customers. Our services teams support the deployment of new networks and technologies, as well as expand, maintain and decommission existing networks.

● WaveTech GmbH, which is under a definitive agreement to be acquired by us, is a global next-generation technology platform that is creating an efficient and reliable energy infrastructure. WaveTech GmbH’s platform of products makes energy supply more cost-efficient, reliable and eco-friendly. WaveTech GmbH’s patented approach, Crystal Control Technology (CCT®), dramatically reduces the need for backup energy capital expenditure and associated operating costs for the environmental control and maintenance needed to protect and operate these critical energy assets.

As of the date of this report, we have acquired approximately 90% of the outstanding shares of WaveTech GmbH. The transaction is not considered closed for accounting purposes because as of the date of this report the Series C preferred stock shares have not been issued. We expect to issue these shares during the third quarter of 2020. Upon completion of our proposed acquisition of WaveTech GmbH, we will be a leading technology platform company that provides software, services, and solutions that dramatically increase the availability and cost efficiency of global communication networks. The global communication networks our software and services address include data-center, wireless, and wireline-based networks across the globe.

Our Operating Units

Our company is comprised of the following:

● The AWS Entities. The AWS Entities are professional, multi-service line, telecommunications infrastructure companies that provide outsourced services to the wireless and wireline industry. The AWS Entities services include network systems design, site acquisition services, asset audits, architectural and engineering services, program management, construction management and inspection, construction, installation, maintenance and other technical services. The AWS Entities provide in-field design, computer aided design and drawing services (CADD), fiber and DAS deployments for facilities and outdoor environments.

● The ADEX Entities. The ADEX Entities are a leading outsource provider of engineering and installation services, staffing solutions and other services which include consulting to the telecommunications industry, service providers and enterprise customers domestically and internationally. ADEX seeks to assist its customers throughout the entire life cycle of a network deployment via its comprehensive suite of managed solutions that include consulting and professional staffing services to service providers as well as enterprise customers, network implementation, network installation, network upgrades, rebuilds, design, engineering and integration wireless network support, wireless network integration, wireless and wireline equipment installation and commissioning, wireless site development and construction management, network engineering, project management, disaster recovery design engineering and integration.

● TNS. TNS is a Chicago-based structured cabling and next-generation DAS design and installation firm that supports voice, data, video, security and multimedia systems within commercial office buildings, multi-building campus environments, high-rise buildings, data centers and other structures. TNS extends our geographic reach to the Midwest area and our client reach to end-users, such as multinational corporations, universities, school districts and other large organizations and enterprise clientele that have significant ongoing next generation network needs. TNS works both in the U.S. and internationally.

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Impact of the COVID-19 Pandemic

The extent to which the coronavirus (“COVID-19”) outbreak and measures taken in response thereto impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.

Global health concerns relating to the coronavirus outbreak have been weighing on the macroeconomic environment, and the outbreak has significantly increased economic uncertainty. Risks related to consumers and businesses lowering or changing spending, which impact domestic and international spend. The outbreak has resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and business shutdowns. These measures have not only negatively impacted consumer spending and business spending habits, they have also adversely impacted and may further impact our workforce and operations and the operations of our customers, suppliers and business partners. These measures may remain in place for a significant period of time and they are likely to continue to adversely affect our business, results of operations and financial condition.

The spread of the coronavirus has caused us to modify our business practices (including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences), and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities.

The extent to which the coronavirus outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the coronavirus outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or may occur in the future.

There are no comparable recent events which may provide guidance as to the effect of the spread of the coronavirus and a global pandemic, and, as a result, the ultimate impact of the coronavirus outbreak or a similar health epidemic is highly uncertain and subject to change. We do not yet know the full extent of the impacts on our business, our operations or the global economy as a whole. However, the effects could have a material impact on our results of operations, and we will continue to monitor the coronavirus situation closely.

Results of Operations for the Three Month Periods Ended March 31, 2020 and March 31, 2019

Our operating results for the three month periods ended March 31, 2020 and 2019 are summarized as follows:

	Three Months Ended
	March 31, 2020			March 31, 2019			Difference
Revenue	$	7,130,480		$	11,335,732		$	(4,205,252	)
Operating expenses		8,792,033			11,321,031			(2,528,998	)
Other expense		(1,990,149	)		(1,337,688	)		(652,461	)
Provision for income taxes		-			9,600			(9,600	)
Net loss		(3,651,702	)		(1,332,587	)		(2,319,115	)

Revenues

Revenue generated during the three months ended March 31, 2020, was $7,130,480 compared to $11,335,752 for the period ended March 31, 2019. The decrease of $4,205,252 is primarily related to a decrease in sales of $2,987,443 for ADEX and $1,429,268 for TNS. Three large ADEX customers totaled $452,353 in the three months ended March 31, 2020, compared to $4,976,192 in the same period of 2019. TNS had a decrease of $1,302,774 from its largest customer in the first quarter of 2020 compared to the first quarter of 2019. Additionally, the COVID-19 pandemic began to affect our operations and the operations of our customers in March 2020.

Operating Expenses

During the three months ended March 31, 2020, our operating expenses were $8,792,033, compared to operating expenses of $11,321,033 for the same period of 2019. The decrease of $2,528,998 is primarily related to a $2,204,339 decrease in cost of revenues and a $412,077 decrease in salaries and wages as a result of the decrease in sales as discussed above.

43

Other Expense

For the three months ended March 31, 2020, we had other expense of $1,990,149 compared to other expense of $1,337,688 the same period in 2019. The increase of 652,461 was primarily due to an increase in loss on change in fair value of derivatives of $444,239 and a loss on settlement of debt of $190,902 compared to a gain of $164,467 in the prior period. This increase was partially offset by a decrease in amortization of discounts on convertible debentures and loans payable of $272,370.

Net Loss

For the three months ended March 31, 2020, we incurred a net loss of $3,651,702 compared to a net loss of $1,332,587 for the same period in 2019. 

Liquidity and Capital Resources

As of March 31, 2020, our total current assets were $13,796,612 and our total current liabilities were $18,331,016, resulting in a working capital deficit of $4,534,404, compared to a working capital deficit of $9,790,032 as of December 31, 2019.

We suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed. In this regard, we have historically raised additional capital through equity offerings and loan transactions.

Cash Flows

	Three months ended March 31,
	2020			2019
Net cash used in operating activities	$	(331,051	)	$	(544,699	)
Net cash used in investing activities		-			(994,133	)
Net cash (used in) provided by financing activities		(63,783	)		1,885,029
Change in cash	$	(394,834	)	$	346,197

The decrease in cash that we experienced in the three months ended March 31, 2020, compared to the increase during the same period of 2019, is primarily due to the cash used in operating activities of $331,051. This amount included the net loss of $3,651,702. It was partially offset by a loss on change in fair value of derivative liability of $813,630, amortization of discounts on convertible debentures and loans payable of $388,982, stock-based compensation of $201,938, loss on settlement of debt of $190,902, and net changes in operating assets and liabilities of $1,447,027. Additionally, net cash used in financing activities was $63,783 in the three months ended March 31, 2020, compared to net cash provided by financing activities of $1,885,029 in the three months ended March 31, 2019. This was due to net repayments of loans payable, convertible debentures, and factor financing exceeding the net proceeds for the quarter.

In order to improve our liquidity, we intend to pursue additional equity financing from private placement sales of our equity securities or shareholders loans. There is no assurance that we will be successful in completing any further private placement financing. If we are unable to achieve the necessary additional financing, then we plan to reduce the amounts we spend on our business activities and administrative expenses in order to be within the amount of capital resources that are available to us.

As of March 31, 2020, we had cash of $73,985 compared to $468,819 as of December 31, 2019.

44

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Inflation

The effect of inflation on our revenue and operating results has not been significant.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures.

Our management, with the participation of our Chief Executive Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on management’s evaluation, our Chief Executive Officer concluded that, as a result of the material weaknesses described below, as of March 31, 2020, our disclosure controls and procedures are not designed at a reasonable assurance level and are not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, as appropriate, to allow timely decisions regarding required disclosure. The material weaknesses, which relate to internal control over financial reporting, that were identified are:

a)

Due to our small size, we do not have a proper segregation of duties in certain areas of our financial reporting process. The areas where we have a lack of segregation of duties include cash receipts and disbursements, approval of purchases and approval of accounts payable invoices for payment. This control deficiency, which is pervasive in nature, results in a reasonable possibility that material misstatements of the consolidated financial statements will not be prevented or detected on a timely basis;

b)

we do not have any formally adopted internal controls surrounding our cash and financial reporting procedures; and

c) the lack of the quantity of resources to implement an appropriate level of review controls to properly evaluate the completeness and accuracy of transactions entered into by our company.

We are committed to improving our financial organization. In addition, we will look to increase our personnel resources and technical accounting expertise within the accounting function to resolve non-routine or complex accounting matters.

Changes in internal control over financial reporting.

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

45

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

Item 1A. Risk Factors

As a “smaller reporting company,” we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Since the beginning of the three month period ended March 31, 2020, we have not sold any equity securities that were not registered under the Securities Act of 1933 that were not previously reported in an annual report on Form 10-K, in a quarterly report on Form 10-Q or in a current report on Form 8-K, or are listed below.

On January 7, 2020, we issued 1,112 shares of our common stock to M2B Funding upon the conversion of 10,000 shares of Series A preferred stock with a stated value of $1 per share.

On February 7, 2020, we issued 9,755 shares of our common stock to CCAG Investments, LLC upon the execution of a new convertible note.

On February 7, 2020, we issued 9,755 shares of our common stock to FJ Vulis and Associates, LLC upon the execution of a new convertible note.

On February 11, 2020, we issued 2,778 shares of our common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

On February 12, 2020, we issued 1,647 shares of our common stock to GS Capital Partners, LLC upon the conversion of $8,000 of principal and $323 of accrued interest pursuant a convertible debenture.

On February 18, 2020, we issued 1,082,731 shares of our common stock to holders of WaveTech GmbH post-closing notes upon the conversion of $8,507,557 of principal and accrued interest.

On March 13, 2020, we issued 11,212 shares of our common stock to GS Capital Partners, LLC upon the conversion of $15,000 of principal and $703 of accrued interest pursuant to a convertible debenture.

The above issuances of our securities were not registered under the Securities Act and the Company relied on an exemption from registration provided by rule 506 of Regulation D promulgated under the Securities Act for such issuances.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

46

Item 6. Exhibits

Exhibit #	Exhibit Description
31.1	Certification of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 SCH	XBRL Taxonomy Extension Schema Document
101 CAL	XBRL Taxonomy Calculation Linkbase Document
101 LAB	XBRL Taxonomy Labels Linkbase Document
101 PRE	XBRL Taxonomy Presentation Linkbase Document
101 DEF	XBRL Taxonomy Extension Definition Linkbase Document

47

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPECTRUM GLOBAL SOLUTIONS, INC.
Date: June 29, 2020	By:	/s/ Roger M. Ponder
		Roger M. Ponder
		Chief Executive Officer and Principal Financial Officer

48

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Roger Ponder, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Spectrum Global Solutions, Inc.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this Quarterly Report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 29, 2020	By:	/s/ Roger Ponder
		Roger Ponder
		Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report on Form 10-Q of Spectrum Global Solutions, Inc. for the quarter ended March 31, 2020, I, Roger Ponder, Chief Executive Officer of Spectrum Global Solutions, Inc., hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:

1. Such Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in such Quarterly Report on Form 10-Q for the Quarter ended March 31, 2020, fairly presents, in all material respects, the financial condition and results of operations of Spectrum Global Solutions,, Inc.

Date: June 29, 2020	By:	/s/ Roger Ponder
		Roger Ponder
		Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) Spectrum Global Solutions, Inc.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Jun. 26, 2020
Document Information Line Items
Entity Registrant Name	Spectrum Global Solutions, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		2,639,381
Amendment Flag	false
Entity Central Index Key	0001413891
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	000-53461
Entity Incorporation, State or Country Code	NV
Entity Interactive Data Current	Yes

XML

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 73,985	$ 468,819
Accounts receivable, net of allowances of $470,303 and $504,785, respectively	4,807,283	5,167,261
Contract assets	237,862	461,681
Due from related party	5,207,585
Prepaid expenses and deposits	169,925	200,119
Total current assets	10,496,640	6,297,880
Property and equipment, net of accumulated depreciation of $1,069,416 and $1,058,973, respectively	82,624	93,067
Goodwill	1,905,822	1,905,822
Customer lists, net of accumulated amortization of $504,181 and $440,805, respectively	2,426,648	2,490,024
Tradenames, net accumulated amortization of $235,580 and $212,226, respectively	1,164,541	1,187,895
Operating lease right-of-use assets	136,211	168,384
Other assets	96,189	25,746
Total assets	16,308,675	12,168,818
Current Liabilities:
Accounts payable and accrued liabilities	4,885,191	4,028,285
Contract liabilities	705,396	704,544
Loans payable to related parties	701,258	3,701,258
Loans payable, net of debt discount of $39,409 and $280,174, respectively	347,862	3,578,386
Convertible debentures, current portion, net of discount of $501,346 and $352,055, respectively	3,242,205	2,809,355
Factor financing	2,844,381
Derivative liability	2,063,063	992,733
Warrant liability	100,000	100,000
Operating lease liabilities	141,688	173,351
Total current liabilities	15,031,044	16,087,912
Long-term liabilities:
Convertible debentures, net of current portion, net of debt discount of $0 and $98,176, respectively		28,324
Total long-term liabilities		28,324
Total liabilities	15,031,044	16,116,236
Commitments and Contingencies
Total mezzanine equity	1,449,887	1,492,418
Stockholders’ Deficit:
Common stock; $0.00001 par value; 750,000,000 shares authorized; 1,314,705 and 195,715 issued and 1,312,634 and 193,644 outstanding as of March 31, 2020 and December 31, 2019, respectively	13	2
Additional paid-in capital	34,174,562	25,255,291
Treasury stock, at cost	(277,436)	(277,436)
Common stock subscribed	74,742	74,742
Accumulated deficit	(34,144,137)	(30,492,435)
Total stockholders' deficit	(172,256)	(5,439,836)
Total liabilities and stockholders' deficit	16,308,675	12,168,818
Series A Preferred Stock
Long-term liabilities:
Preferred stock, value	965,357	1,007,888
Series B Preferred Stock
Long-term liabilities:
Preferred stock, value	$ 484,530	$ 484,530

XML

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Accounts receivable, net of allowances (in Dollars)	$ 470,303	$ 504,785
Accumulated depreciation (in Dollars)	1,069,416	1,058,973
Customer lists (net of accumulated amortization) (in Dollars)	504,181	440,805
Tradenames (net of accumulated amortization) (in Dollars)	235,580	212,226
Loans payable, net of debt discount (in Dollars)	39,409	280,174
Convertible debentures, net of discount (in Dollars)	501,346	352,055
Convertible debentures, net of current portion (in Dollars)	$ 0	$ 98,176
Common stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	1,314,705	195,715
Common stock, shares outstanding	1,312,634	193,644
Series A Preferred Stock
Preferred stock, par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	8,000,000	8,000,000
Preferred stock, shares issued	899,427	899,427
Preferred stock, shares outstanding	794,427	829,427
Series B Preferred Stock
Preferred stock, par value (in Dollars per share)	$ 3,500	$ 3,500
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	1,000	1,000
Preferred stock, shares outstanding	1,000	1,000

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 7,130,480	$ 11,335,732
Operating expenses:
Cost of revenues	6,619,826	8,824,165
Depreciation and amortization	97,173	93,952
General and administrative	946,131	1,044,706
Salaries and wages	1,128,902	1,358,208
Total operating expenses	8,792,032	11,321,031
(Loss) income from operations	(1,661,552)	14,701
Other (expenses) income:
(Loss) gain on settlement of debt	(190,902)	164,467
Amortization of discounts on convertible debentures and loans payable	(388,982)	(661,352)
Loss on change in fair value of derivatives	(813,630)	(369,391)
Default and debt extension fees	(180,489)
Interest expense	(416,147)	(471,412)
Total other (expense) income	(1,990,150)	(1,337,688)
Net loss before income taxes	(3,651,702)	(1,322,987)
Provision for income taxes		9,600
Net loss	$ (3,651,702)	$ (1,332,587)
Net loss per share, basic and diluted: (in Dollars per share)	$ (5.06)	$ (33.96)
Weighted average common shares outstanding, basic and diluted: (in Shares)	722,364	39,240

XML

Condensed Consolidated Statements of Stockholder's Deficit (Unaudited) - USD ($)	Common stock	Additional paid-in capital	Common stock subscribed	Treasury stock	Accumulated deficit	Total
Balances at Dec. 31, 2018		$ 18,681,467	$ 74,742	$ (277,436)	$ (24,170,105)	$ (5,691,332)
Balances (in Shares) at Dec. 31, 2018	25,703
Issuance of common stock to RDW Capital, LLC		293,165				293,165
Issuance of common stock to RDW Capital, LLC (in Shares)	3,867
Issuance of common stock to Silverback Capital		119,663				119,663
Issuance of common stock to Silverback Capital (in Shares)	2,060
Issuance of common stock to Virtual Capital		321,425				321,425
Issuance of common stock to Virtual Capital (in Shares)	3,572
Issuance of common stock to employees pursuant to the conversions of convertible debt		308,000				308,000
Issuance of common stock to employees pursuant to the conversions of convertible debt (in Shares)	4,667
Shares issued for services		471,343				471,343
Shares issued for services (in Shares)	9,565
Net loss for the period					(1,332,587)	(1,332,587)
Balances at Mar. 31, 2019		20,195,063	74,742	(277,436)	(25,502,692)	(5,510,323)
Balances (in Shares) at Mar. 31, 2019	49,434
Balances at Dec. 31, 2018		18,681,467	74,742	(277,436)	(24,170,105)	(5,691,332)
Balances (in Shares) at Dec. 31, 2018	25,703
Balances at Dec. 31, 2019	$ 2	25,255,291	74,742	(277,436)	(30,492,435)	(5,439,836)
Balances (in Shares) at Dec. 31, 2019	195,715
Issuance of common stock to M2B Funding		12,151				12,151
Issuance of common stock to M2B Funding (in Shares)	1,112
Issuance of common stock to CCAG Investments		51,500				51,500
Issuance of common stock to CCAG Investments (in Shares)	9,755
Issuance of common stock to FJ Vulis		51,500				51,500
Issuance of common stock to FJ Vulis (in Shares)	9,755
Issuance of common stock to Dominion Capital		30,379				30,379
Issuance of common stock to Dominion Capital (in Shares)	2,778
Issuance of common stock to GS Capital Partners		64,257				64,257
Issuance of common stock to GS Capital Partners (in Shares)	12,859
Issuance of common stock to WaveTech GmbH debtholders	$ 11	8,507,546				8,507,557
Issuance of common stock to WaveTech GmbH debtholders (in Shares)	1,082,731
Shares issued for services		201,938				201,938
Shares issued for services (in Shares)
Net loss for the period					(3,651,702)	(3,651,702)
Balances at Mar. 31, 2020	$ 13	$ 34,174,562	$ 74,742	$ (277,436)	$ (34,144,137)	$ (172,256)
Balances (in Shares) at Mar. 31, 2020	1,314,705

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Cash Flows [Abstract]
Net loss	$ (3,651,702)	$ (1,332,587)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on change in fair value of derivative liability	813,630	369,391
Amortization of discounts on convertible debentures and loans payable	388,982	661,352
Depreciation and amortization	97,173	93,952
Amortization of operating right-of-use assets	32,173	37,016
Amortization of operating right-of-use liabilities	(31,663)	(36,150)
Stock-based compensation	201,938	471,343
Loss (gain) on settlement of debt	190,902	(164,468)
Default and debt extensions fees	180,489
Original issue discount		20,000
Changes in operating assets and liabilities:
Accounts receivable	359,978	(1,131,653)
Contract assets	223,819	(365,300)
Prepaid expenses and deposits	30,194	390,717
Other assets	(70,443)	3,591
Accounts payable and accrued liabilities	902,627	961,180
Contract liabilities	852	(523,083)
Net cash used in operating activities	(331,051)	(544,699)
Cash flows from investing activities:
Net cash paid upon acquisition		(941,593)
Purchase of equipment		(52,540)
Net cash used in investing activities		(994,133)
Cash flows from financing activities:
Proceeds from loans payable	3,044,690	8,367,190
Repayments of loans payable	(6,515,979)	(6,147,609)
Proceeds from loans payable to related parties	299,972
Proceeds from convertible debentures	315,000
Repayments of convertible debentures	(51,847)	(334,552)
Proceeds from factoring financing	4,685,390
Repayments of factor financing	(1,841,009)
Net cash (used in) provided by financing activities	(63,783)	1,885,029
Net (decrease) increase in cash	(394,834)	346,197
Cash, beginning of period	468,819	620,593
Cash, end of period	73,985	966,790
Supplemental disclosures of cash flow information:
Cash paid for interest	56,847	206,467
Cash paid for income taxes
Non-cash investing and financing activities:
Common stock issued for conversion of convertible debentures	64,257	1,042,254
Original issue discounts	35,000	20,000
Original debt discount against derivative liability	315,000	189,000
Common stock issued for conversion of Series A preferred stock	42,530
Addition to principal of convertible debenture due to defaults	132,758
Addition to principal of convertible debenture due to debt extension fee	47,731
Common stock issued upon conversion of WaveTech GmbH debt assumed by the Company	8,507,557
Issuance of common stock upon execution of convertible debenture agreements	103,000
Addition to derivative liability due to issuance of stock options	44,700
Net assets acquired in TNS acquisition		935,834
Convertible note issued in TNS acquisition		665,000
Third-party payment of third-party debt		$ 150,000

XML

Organization and Going Concern

3 Months Ended

Mar. 31, 2020

Organization and Going Concern [Abstract]

Organization and Going Concern

1. Organization and Going Concern

Spectrum Global Solutions, Inc., (the “Company”) (f/k/a Mantra Venture Group Ltd.) was incorporated in the State of Nevada on January 22, 2007 to acquire and commercially exploit various new energy related technologies through licenses and purchases. On December 8, 2008, the Company reincorporated in the province of British Columbia, Canada.

On April 25, 2017, the Company entered into and closed on an Asset Purchase Agreement with InterCloud Systems, Inc. (“InterCloud”). Pursuant to the terms of the Asset Purchase Agreement, the Company purchased 80.1% of the assets associated with InterCloud’s AW Solutions, Inc., AW Solutions Puerto Rico, LLC, and Tropical Communications, Inc. (collectively “AWS” or the “AWS Entities”) subsidiaries.

On November 15, 2017, the Company changed its name to “Spectrum Global Solutions, Inc.” and reincorporated in the state of Nevada.

On February 14, 2018, the Company entered into an agreement with InterCloud providing for the sale, transfer, conveyance and delivery to the Company of the remaining 19.9% of the assets associated with InterCloud’s AWS business not already purchased by the Company.

On February 6, 2018, the Company entered into and closed on a Stock Purchase Agreement with InterCloud Systems, Inc. (“InterCloud”). Pursuant to the terms of the Stock Purchase Agreement, the Company purchased all of the issued and outstanding capital stock and membership interests of ADEX Corporation, ADEX Puerto Rico LLC, ADEX Towers, Inc. and ADEX Telecom, Inc. (collectively “ADEX” or the “ADEX Entities”). The Company completed the acquisition on February 27, 2018.

On May 18, 2018, the Company transferred all of its ownership interests in and to its subsidiaries Carbon Commodity Corporation, Mantra China Limited, Mantra Media Corp., Mantra NextGen Power Inc., Mantra Wind Inc., Climate ESCO Ltd. and Mantra Energy Alternatives Ltd. to an entity controlled by the Company’s former Chief Executive Officer, Larry Kristof. The new owner of the aforementioned entities assumed all liabilities and obligations with respect to such entities.

On January 4, 2019, the Company entered into a Stock Purchase Agreement with InterCloud. Pursuant to the terms of the Purchase Agreement, InterCloud agreed to sell, and the Company agreed to purchase, all of the issued and outstanding capital stock of TNS, Inc. (“TNS”), an Illinois corporation.

During September 2019, the Company formed ADEX Canada, which is included in the ADEX Entities.

The Company’s AWS Entities are professional, multi-service line, telecommunications infrastructure companies that provide outsourced services to the wireless and wireline industry. The Company’s ADEX Entities are a leading outsource provider of engineering and installation services, staffing solutions and other services which include consulting to the telecommunications industry, service providers and enterprise customers domestically and internationally. The Company’s TNS subsidiary is a Chicago-based structured cabling and next-generation DAS design and installation firm that supports voice, data, video, security and multimedia systems within commercial office buildings, multi-building campus environments, high-rise buildings, data centers and other structures.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of management to raise additional equity capital through private and public offerings of its common stock, and the attainment of profitable operations. As of March 31, 2020, the Company had an accumulated deficit of $34,144,137, and a working capital deficit of $4,534,404. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management requires additional funds over the next twelve months to fully implement its business plan. Management is currently seeking additional financing through the sale of equity and from borrowings from private lenders to cover its operating expenditures. There can be no certainty that these sources will provide the additional funds required for the next twelve months.

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Condensed Financial Statements

The accompanying unaudited interim consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Form 10-K for the year ended December 31, 2019. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.

Basis of Presentation/Principles of Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and its subsidiaries, the AWS Entities, the ADEX Entities, and TNS (from the date of acquisition, January 4, 2019). All of the subsidiaries are wholly-owned.

All inter-company balances and transactions have been eliminated.

Reverse Stock Split

On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split.

The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.

All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, equity component of convertible debt, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company records unbilled receivables for services performed but not billed. Management reviews a customer’s credit history before extending credit. The Company maintains an allowance for doubtful accounts for estimated losses. Estimates of uncollectible amounts are reviewed each period, and changes are recorded in the period in which they become known. Management analyzes the collectability of accounts receivable each period. This review considers the aging of account balances, historical bad debt experience, and changes in customer creditworthiness, current economic trends, customer payment activity and other relevant factors. Should any of these factors change, the estimate made by management may also change. The allowance for doubtful accounts at March 31, 2020 and December 31, 2019 was $470,303 and $504,785, respectively.

Property and Equipment

Property and equipment are stated at cost. The Company depreciates the cost of property and equipment over their estimated useful lives at the following annual rates:

Automotive	3-5 years straight-line basis
Computer equipment and software	3-7 years straight-line basis
Leasehold improvements	5 years straight-line basis
Office equipment and furniture	5 years straight-line basis
Research equipment	5 years straight-line basis

Goodwill

Goodwill was generated through the acquisition of AWS, ADEX and TNS as the total consideration paid exceeded the fair value of the net assets acquired.

The Company tests its goodwill for impairment at least annually on December 31st and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and the Company’s consolidated financial results.

The Company tests goodwill by estimating fair value using a Discounted Cash Flow (“DCF”) model. The key assumptions used in the DCF model to determine the highest and best use of estimated future cash flows include revenue growth rates and profit margins based on internal forecasts, terminal value and an estimate of a market participant’s weighted-average cost of capital used to discount future cash flows to their present value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

Intangible Assets

At March 31, 2020 and December 31, 2019, definite-lived intangible assets primarily consisted of tradenames and customer relationships which are being amortized over their estimated useful lives ranging from 5-35 years.

The Company periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence when events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. The Company has no intangibles with indefinite lives.

For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. The Company measures the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

Long-lived Assets

In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. There were no impairment charges recorded during the three months ended March 31, 2020 and 2019.

Foreign Currency Translation

Transactions in foreign currencies are translated into the currency of measurement at the exchange rates in effect on the transaction date. Monetary balance sheet items expressed in foreign currencies are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting foreign exchange gains and losses are recognized in income.

The Company’s integrated foreign subsidiaries are financially or operationally dependent on the Company. The Company uses the temporal method to translate the accounts of its integrated operations into U.S. dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period, except for amortization, which is translated on the same basis as the related asset. The resulting foreign exchange gains or losses are recognized in income.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

The Company conducts business, and files federal and state income, franchise or net worth, tax returns in Canada, the United States, in various states within the United States and the Commonwealth of Puerto Rico. The Company determines it’s filing obligations in a jurisdiction in accordance with existing statutory and case law. The Company may be subject to a reassessment of federal and provincial income taxes by Canadian tax authorities for a period of three years from the date of the original notice of assessment in respect of any particular taxation year. For Canadian and U.S. income tax returns, the open taxation years range from 2010 to 2019. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. U.S. state statutes of limitations for income tax assessment vary from state to state. Tax authorities of Canada and U.S. have not audited any of the Company’s, or its subsidiaries’, income tax returns for the open taxation years noted above.

Significant management judgment is required in determining the provision for income taxes, and in particular, any valuation allowance recorded against the Company’s deferred tax assets. Deferred tax assets are regularly reviewed for recoverability. The Company currently has significant deferred tax assets resulting from net operating loss carryforwards and deductible temporary differences, which should reduce taxable income in future periods. The realization of these assets is dependent on generating future taxable income.

The Company follows the guidance set forth within ASC Topic 740, “Income Taxes” (“ASC Topic 740”) which prescribes a two-step process for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. The first step evaluates an income tax position in order to determine whether it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The second step measures the benefit to be recognized in the financial statements for those income tax positions that meet the more likely than not recognition threshold. ASC Topic 740 also provides guidance on de-recognition, classification, recognition and classification of interest and penalties, accounting in interim periods, disclosure and transition. Penalties and interest, if incurred, would be recorded as a component of current income tax expense.

The Company received a tax notice from the Puerto Rican government requesting payment of taxes related to 2014. The amount due as of March 31, 2020 and December 31, 2019 was $156,711 plus penalties and interest of $126,700 for a total obligation due of $283,411. This tax assessment was included in accrued expenses at March 31, 2020 and December 31, 2019.

Revenue Recognition

Adoption of New Accounting Guidance on Revenue Recognition

The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied.

Contract Types

The Company’s contracts fall under three main types: 1) unit-price, 2) fixed-price, and 3) time-and-materials. Unit-price contracts relate to services being performed and paid on a unit basis, such as per mile of construction completed. Fixed-price contracts are based on purchase order line items that are billed on individual invoices as the project progresses and milestones are reached. Time-and-materials contracts include employees working permanently at customer locations and materials costs incurred by those employees.

A significant portion of the Company’s revenues come from customers with whom the Company has a master service agreement (“MSA”). These MSA’s generally contain customer specific service requirements.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the Company’s different revenue service types the performance obligation is satisfied at different times. For professional services revenue, the performance obligation is met when the work is performed. In certain cases this may be each day, or each week depending on the customer. For construction services, the performance obligation is met when the work is completed and the customer has approved the work. Contract assets include unbilled amounts for costs of services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets.

Revenue Service Types

The following is a description of the Company’s revenue service types, which include professional services and construction:

● Professional services are services provided to the clients where the Company delivers distinct contractual deliverables and/or services. Deliverables may include but are not be limited to: engineering drawings, designs, reports and specification. Services may include, but are not be limited to: consulting or professional staffing to support our client’s objectives. Consulting or professional staffing services may be provided remotely or on client premises and under their direction and supervision.

● Construction Services are services provided to the client where the Company may self-perform or subcontract services that require the physical construction of infrastructure or installation of equipment and materials.

Disaggregation of Revenues

The Company disaggregates its revenue from contracts with customers by service type, contract type, contract duration, and timing of transfer of goods or services. See the below tables:

Revenue by service type	Three months ended March 31, 2020		Three months ended March 31, 2019
Professional Services	$	5,367,311	$	5,935,226
Construction		1,763,169		5,400,506
Total	$	7,130,480	$	11,335,732

Revenue by contract duration	Three months ended March 31, 2020		Three months ended March 31, 2019
Short-term	$	28,305	$	65,430
Long-term		7,102,175		11,270,302
Total	$	7,130,480	$	11,335,732

Revenue by contract type	Three months ended March 31, 2020		Three months ended March 31, 2019
Unit-price	$	160,827	$	3,238,658
Fixed-price		1,602,342		2,161,848
Time-and-materials		5,367,311		5,935,226
Total	$	7,130,480	$	11,335,732

The Company also disaggregates its revenue by operating segment and geographic location (refer to Note 16, Segment Disclosures, for additional information).

Accounts Receivable

Accounts receivable include amounts from work completed in which the Company has billed. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable.

Contract Assets and Liabilities

Contract assets include costs and services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract assets totaled $237,862 and $461,681, respectively.

Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract liabilities totaled $705,396 and $704,544, respectively.

Cost of Revenues

Cost of revenues includes all direct costs of providing services under the Company’s contracts, including costs for direct labor provided by employees, services by independent subcontractors, operation of capital equipment (excluding depreciation and amortization), direct materials, insurance claims and other direct costs.

Research and Development Costs

Research and development costs are expensed as incurred.

Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”), using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

The Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASU 2018-07.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock-based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations over the requisite service period.

Loss per Share

The Company computes loss per share in accordance with ASC 260, “Earnings per Share” which requires presentation of both basic and diluted loss per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2020 and December 31, 2019, respectively, the Company had 990,158 and 286,736 common stock equivalents outstanding.

Leases

The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 840.

The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per ASC 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities, Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur.

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or result of operations.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivables. The Company maintains its cash balances with high-credit-quality financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. These deposits may be withdrawn upon demand and therefore bear minimal risk.

The Company provides credit to customers on an uncollateralized basis after evaluating client creditworthiness. For the three months ended March 31, 2020, three customers accounted for 31%, 13% and 13%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 42%, 3% and 10%, respectively, of trade accounts receivable as of March 31, 2020. For the three months ended March 31, 2019, four customers accounted for 30%, 18%, 10% and 10%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 30%, 20%, 7% and 5%, respectively, of trade accounts receivable as of March 31, 2019.

The Company’s customers are primarily located within the domestic United States of America and Puerto Rico. Revenues generated within the domestic United States of America accounted for approximately 98% and 97% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively. Revenues generated from customers in Puerto Rico accounted for approximately 2% and 3% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively.

Fair Value Measurements

The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by US generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows:

Level 1 – quoted prices for identical instruments in active markets;

Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Financial instruments consist principally of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, loans payable and convertible debentures. Derivative liabilities are determined based on “Level 3” inputs, which are significant and unobservable and have the lowest priority. There were no transfers into or out of “Level 3” during the three months ended March 31, 2020 or the year ended December 31, 2019. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

The Company’s financial assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2020 and December 31, 2019 consisted of the following:

	Total fair value at March 31, 2020		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	2,063,063	$	-	$	-	$	2,063,063

	Total fair value at December 31, 2019		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	992,733	$	-	$	-	$	992,733

(1) The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Refer to Note 10, Derivative Liabilities, for additional information.

Derivative Liabilities

The Company accounts for derivative instruments in accordance with ASC Topic 815, “Derivatives and Hedging” and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads, relying first on observable data from active markets. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of March 31, 2020 and December 31, 2019, the Company had a derivative liability of $2,063,063 and $992,733, respectively.

Sequencing Policy

Under ASC 815-40-35, the Company has adopted a sequencing policy whereby, in the event that reclassification of contracts from equity to assets or liabilities is necessary pursuant to ASC 815 due to the Company’s inability to demonstrate it has sufficient authorized shares as a result of certain securities with a potentially indeterminable number of shares, shares will be allocated on the basis of the earliest issuance date of potentially dilutive instruments, with the earliest grants receiving the first allocation of shares. Pursuant to ASC 815, issuance of securities to the Company’s employees or directors are not subject to the sequencing policy.

Reclassifications

Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on total financial position, net income, or stockholders’ equity.

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Due From Related Party

3 Months Ended

Mar. 31, 2020

Due From Related Party Disclosure [Abstract]

Due From Related Party

3. Due From Related Party

As of March 31, 2020, the Company had a due from related party balance of $5,207,585. This amount is the net of the amounts discussed below in the “Assumption of WaveTech GmbH debt” and “Loan with WaveTech GmbH, 8% interest” sections of this note.

Assumption of WaveTech GmbH debt

In connection with the share purchase agreement with WaveTech GmbH discussed in Note 15, Commitments and Contingencies, the Company assumed $7,531,309 of WaveTech GmbH debt. The amount included both principal and accrued interest. These note holders were issued new notes which were convertible into shares of the Company’s common stock. On February 18, 2020, these notes were converted into 1,082,731 shares at a conversion price of $7.80 per share. The value of the conversion was determined using the principal and accrued interest of the new notes at the time of conversion, which was $8,507,557. The Company did not record a gain or loss on the conversion as WaveTech GmbH is considered a related party (refer to Note 6, Related Party Transactions, for additional detail). In the event that the Company’s acquisition of WaveTech GmbH is terminated, this amount will be owed by WaveTech GmbH to the Company. The amount owed would be offset by the amounts owed by the Company to WaveTech GmbH discussed in the “Loan with WaveTech GmbH, 8% interest” section of this note. The share purchase agreement is not considered closed for accounting purposes because, as of the date of this report, the Series C preferred stock shares have not been issued (refer to Note 15, Commitments and Contingencies, for additional detail).

Loan with WaveTech GmbH, 8% interest

As of March 31, 2020, the loan with WaveTech GmbH discussed in Note 6, Related Party Transactions, is being netted against the amounts discussed in the “Assumption of WaveTech GmbH debt” section of this note. The balance as of December 31, 2019 was $3,000,000.

During the three months ended March 31, 2020, the Company received an additional $299,972 from WaveTech GmbH.

As of March 31, 2020, principal of $3,299,972 remains outstanding. The note is due on demand.

In the event that the Company’s acquisition of WaveTech GmbH is terminated, the amount of this note would be used to offset amounts owed by WaveTech GmbH to the Company.

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Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment as of March 31, 2020 and December 31, 2019 consisted of the following:

	March 31,			December 31,
	2020			2019
Computers and office equipment	$	349,271		$	349,271
Equipment		382,140			382,140
Research equipment		143,129			143,129
Software		227,563			227,563
Vehicles		94,356			94,356
Vehicles under capital lease		-			-
Total		1,196,459			1,196,459
Less: impairment		(44,419	)		(44,419	)
Less: accumulated depreciation		(1,069,416	)		(1,058,973	)
Equipment, net	$	82,624		$	93,067

During the three months ended March 31, 2020 and 2019, the Company recorded depreciation expense of $10,443 and $7,018, respectively. 

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Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

Intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following:

	Cost		Accumulated Amortization		Impairment		Net carrying value at March 31, 2020		Net carrying value at December 31, 2019
Customer relationship and lists	$	2,930,829	$	504,181	$	-	$	2,426,648	$	2,490,024
Trade names		1,400,121		235,580		-		1,164,541		1,187,895
Total intangible assets	$	4,330,950	$	739,761	$	-	$	3,591,189	$	3,677,919

During the three months ended March 31, 2020 and 2019, the Company recorded amortization expense of $86,730 and $86,934, respectively.

The estimated future amortization expense for the next five years and thereafter is as follows:

Year ending December 31,
2020	$	260,191
2021		346,921
2022		346,921
2023		346,921
2024		346,921
Thereafter		1,943,314
Total	$	3,591,189

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Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

6. Related Party Transactions

Unsecured Amounts Due to InterCloud

As of March 31, 2020 and December 31, 2019, the Company owed $50,577 to InterCloud, which is non-interest bearing, unsecured, and due on demand and included in accounts payable and accrued liabilities.

InterCloud Related Party Reclassification

During May 2019, as a result of shares of common stock issued to InterCloud as a result of conversions of convertible debentures, the Company determined that InterCloud is a related party. The effective date of the reclassification was January 1, 2018. 

WaveTech GmbH Related Party Reclassification

During November 2019, as a result of the Company acquiring 60% of the outstanding shares of WaveTech GmbH (refer to Note 15, Commitments and Contingencies, for additional detail), the Company determined that WaveTech GmbH is a related party. The effective date of the reclassification was January 1, 2019. The transaction is not considered closed for accounting purposes because as of the date of this report the Series C preferred stock shares have not been issued.

Loans Payable to Related Parties

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following loans payable to related parties:

	March 31,			December 31,
	2020			2019
Promissory note issued to Roger Ponder, 10% interest, unsecured, due on demand	$	18,858		$	18,858
Promissory note issued to Keith Hayter, 10% interest, unsecured, due on demand		130,000			130,000
Promissory note issued to Keith Hayter, 10% and 8% interest, unsecured, matures April 13, 2020		85,000			85,000
Promissory note issued to Keith Hayter, 8% interest, unsecured, due on demand		80,000			80,000
Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020		170,000			170,000
Promissory note issued to InterCloud Systems, Inc., non-interest bearing, unsecured and due on demand		217,400			217,400
Loan with WaveTech GmbH, 8% interest, due on demand		-	*		3,000,000
Total	$	701,258		$	3,701,258

* As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

Promissory note issued to Roger Ponder, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019

On November 30, 2017, the Company received $18,858 pursuant to a promissory note issued to the Chief Executive Officer of the Company. The note issued is unsecured, was due on November 30, 2018 and bears interest at a rate of 10% per annum. On November 30, 2018, the lender agreed to extend the maturity of the loan to November 30, 2019. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on November 30, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019

On November 30, 2017, the Company received $130,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, due on November 30, 2018 and bears interest at a rate of 10% per annum. On November 30, 2018, the lender agreed to extend the maturity of the loan to November 30, 2019. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on November 30, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% and 8% interest, unsecured, matures April 13, 2020

On April 13, 2018, the Company received $85,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, due on April 13, 2019 and bears interest at a rate of 8% per annum. At December 31, 2018, the amount of $85,000 was owed. On April 13, 2019, the note was amended to a maturity date of April 13, 2020 and an interest rate of 10%. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on April 13, 2020 and is now due on demand.

Promissory note issued to Keith Hayter, 8% interest, unsecured, matured October 1, 2019

On August 21, 2018, the Company received $80,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, was due on August 20, 2019 and bears interest at a rate of 8% per annum. On August 20, 2019, the note was amended to a maturity date of October 1, 2019 and an interest rate of 10%. The Company accounted for the modification in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the extension as a modification and no gain or loss was recognized.

The note matured on October 1, 2019 and is now due on demand.

Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020

On August 12, 2019, the Company received $170,000 pursuant to a promissory note issued to the President of the Company. The note issued is unsecured, is due on August 11, 2020 and bears interest at a rate of 10% per annum.

Convertible promissory note, InterCloud Systems, Inc, 8% interest, unsecured, matured April 27, 2018

On April 27, 2017, the Company issued a convertible promissory note in the aggregate principal amount of $2,000,000. The interest on the outstanding principal due under the unsecured note accrued at a rate of 8% per annum. All principal and accrued interest under the unsecured note was due one year following the issue date of the unsecured note and was convertible into shares of common stock at a conversion price equal to 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $1,174,000 resulted in a discount to the note payable of $943,299. On December 15, 2017, February 14, 2018, February 21, 2018, June 7, 2018, January 24, 2019, and March 15, 2019 the holder of the convertible promissory note entered into agreement to sell and assign a total of $105,000, $105,000, $105,000, $39,375, $100,000 and $100,000 of the outstanding principal, respectively to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the conversion price for the total of $354,375 of notes assigned was equal to the lesser 70% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. The Company accounted for this assignment in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the assignment as a debt extinguishment and adjusted the fair value of the derivative to its fair value on the assignment date.

On May 6, 2019, the remaining principal balance of $1,445,625 was converted into shares of the Company’s common stock through an automatic forced conversion.

Convertible promissory note, InterCloud Systems, Inc, 1% interest, unsecured, matures August 16, 2019

On February 16, 2018, the Company issued InterCloud a convertible note with a principal amount of $793,894 to settle a contingent liability of $793,894 owed to InterCloud as a result of the acquisition of AWS. The note was originally due on August 16, 2019 and bore interest at 1% per annum. The note was convertible into common shares of the Company at a conversion price equal to the 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging” (refer to Note 10, Derivative Liabilities, for additional information on embedded conversion features). The initial fair value of the conversion feature of $348,000 resulted in a discount to the note payable of $348,000.

On August 16, 2019, the remaining principal balance of $793,894 was converted into shares of the Company’s common stock through an automatic forced conversion.

Convertible promissory note, InterCloud Systems, Inc, 6% interest, unsecured, matured March 27, 2019

On February 27, 2018, the Company issued a convertible promissory note in the aggregate principal amount of $2,000,000. The interest on the outstanding principal due under the ADEX note accrued at a rate of 6% per annum. All principal and accrued interest under the ADEX note was due one year following the issue date of the ADEX note and was convertible into shares of common stock at a conversion price equal to of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion, but in no event ever lower than $300 (the “Floor”), unless the note was in default, at which time the Floor would have terminated.

The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $2,455,000 resulted in a discount to the note payable of $639,000.

On September 26, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $75,000 of the outstanding principal to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the assigned note bore interest at 5% and the conversion price for the $75,000 of notes assigned was equal to the lesser 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. On December 3, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $50,000 of the outstanding principal to a third party. The Company accounted for the assignments in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the assignment as a debt extinguishment and adjusted the fair value of the derivative to its fair value on the assignment date.

During the year ended December 31, 2019, the Company repaid $55,124 of principal outstanding.

During the year ended December 31, 2019, the principal amount was reduced by $295,000 as a result of a working capital adjustment.

On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.

Promissory note issued to InterCloud Systems, Inc., non-interest bearing, unsecured and due on demand

In connection with the acquisition of ADEX from InterCloud, $500,000 of the purchase price was retained by the Company to satisfy any outstanding liabilities of ADEX incurred prior to the closing date.

During the year ended December 31, 2019, the Company repaid $57,600 of this amount.

As of March 31, 2020, principal of $217,400 remains outstanding.

Loan with WaveTech GmbH., 8% interest

On July 15, 2019, the Company entered into a share purchase agreement with WaveTech GmbH, a German corporation (refer to Note 15, Commitments and Contingencies, for additional detail). In connection with the share purchase agreement, the Company was to receive $3,000,000 in cash at or before consummation of the transactions described in the agreement. The Company received $1,325,895 which was placed into escrow to satisfy the amounts outstanding to WaveTech Global, Inc (refer to Note 7, Loans Payable, for additional detail). The Company received an additional $1,664,083 during July 2019 to satisfy the $3,000,000 of cash per the share purchase agreement. The remaining $10,022 was recorded as a foreign exchange loss in the consolidated statement of operations for the year ended December 31, 2019. The loan bears interest at a rate of 8% per annum.

On November 14, 2019, the Company acquired 60% of the outstanding shares of WaveTech GmbH (refer to Note 15, Commitments and Contingencies, for additional detail). As a result, the $1,325,895 in escrow was returned to the Company. As of December 31, 2019, principal of $3,000,000 was outstanding.

As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

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Loans Payable

3 Months Ended

Mar. 31, 2020

Loans Payable [Abstract]

Loans Payable

7. Loans Payable

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following loans payable:

	March 31,		December 31,
	2020		2019
Promissory note issued to J. Thacker, non-interest bearing, unsecured and due on demand	$	41,361	$	41,361
Promissory note issued to S. Kahn, non-interest bearing, unsecured and due on demand		7,760		7,760
Promissory note issued to 0738856 BC ltd non-interest bearing, unsecured and due on demand		2,636		2,636
Promissory note issued to 0738856 BC Ltd, non-interest bearing, unsecured and due on demand		15,000		15,000
Promissory note issued to Bluekey Energy, non-interest bearing, unsecured and due on demand		7,500		7,500
Subscription amount due to T. Warkentin non-interest bearing, unsecured and due on demand		50,000		50,000
Promissory note issued to Old Main Capital LLC, 10% interest, unsecured and due on demand		12,000		12,000
Promissory note issued to Pawn Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $11,260 and $31,365		60,459		94,928
Promissory note issued to RDM Capital Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $28,149 and $79,087		151,146		237,319
Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020, net of debt discount of $149,180		-		2,973,458
Promissory note issued to C6 Capital, non-interest bearing, matures April 15, 2020, net of debt discount of $20,272		-		136,424
Total	$	347,862	$	3,578,386

Promissory note issued to J. Thacker, non-interest bearing, unsecured and due on demand

The Company owed $41,361 ($53,300 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to S. Kahn, non-interest bearing, unsecured and due on demand

The Company owed $7,760 ($10,000 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to 0738856 BC ltd non-interest bearing, unsecured and due on demand

The Company owed $2,636 ($3,400 Canadian dollars) to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to 0738856 BC Ltd, non-interest bearing, unsecured and due on demand

The Company owed $15,000 to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Promissory note issued to Bluekey Energy, non-interest bearing, unsecured and due on demand

The Company owed $7,500 to a non-related party as of March 31, 2020 and December 31, 2019. This promissory note is non-interest bearing, unsecured, and due on demand.

Subscription amount due to T. Warkentin non-interest bearing, unsecured and due on demand

In March 2012, the Company received $50,000 for the subscription of 167 shares of the Company’s common stock. During the year ended May 31, 2013, the Company and the subscriber agreed that the shares would not be issued and that the subscription would be returned. The subscription has been reclassified as a non-interest bearing demand loan until the funds are refunded to the subscriber. The Company owed $50,000 as of March 31, 2020 and December 31, 2019.

Promissory note issued to Old Main Capital LLC, 10% interest, unsecured and due on demand

On April 12, 2017, received $12,000 pursuant to a promissory note. The note issued is unsecured, due on demand and bears interest at a rate of 10% per annum. The Company owed $12,000 as of March 31, 2020 and December 31, 2019.

Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020

On October 10, 2018, the Company’s wholly-owned subsidiary, ADEX (the “Borrower”), entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with Heritage Bank of Commerce (the “Lender”). Under the Loan and Security Agreement, the Borrower may borrow an aggregate outstanding amount not to exceed the lesser of up to (i) $5,000,000 or (ii) the Borrowing Base (as defined in the Loan and Security Agreement) through one or more advances through October 10, 2020 (the “Maturity Date”), subject to the Lender’s satisfactory annual review of the Borrower which is currently ongoing. On the Maturity Date, all advances must be repaid. The Lender may, in its sole discretion and upon the Borrower’s request, make advances to the Borrower after the Maturity Date subject to the terms and conditions under the Loan and Security Agreement. Part of the proceeds of the initial credit extension of the Loan and Security Agreement were used to pay off borrowings owed to Prestige Capital Corporation described in Note 8, Convertible Debentures.

Interest is payable under the Loan and Security Agreement at a per annum rate equal to the Prime Rate (as defined in the Loan and Security Agreement) plus 2%. The Borrower’s obligations under the Loan and Security Agreement are secured by all assets of the Company. In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.

The Loan and Security Agreement provides that upon the occurrence of an event of default, among other things, all outstanding amounts under the Loan and Security Agreement or any portion thereof becomes immediately due and payable. Events of default under the Loan and Security Agreement include, among other items, the Borrower’s failure to comply with certain affirmative and negative covenants relating to the Company, its securities and its financial condition.

In connection with the financing, on October 10, 2018, the Company also issued a warrant to purchase 380 shares of the Company’s common stock at $375.00 per share for three years. The fair value of the warrants of $87,410 and $190,000 of debt issuance costs resulted in a discount to the note payable of $277,410. At December 31, 2018, the Company owed $3,483,015 pursuant to this agreement and will record accretion equal to the debt discount of $257,194 over the remaining term of the note.

During the year ended December 31, 2019, the Company received an aggregate of $26,772,037 and repaid an aggregate of $27,132,642, for a net repaid amount of $360,605. At December 31, 2019, the Company owed $3,122,638 pursuant to this agreement and was to record accretion equal to the debt discount of $149,180 over the remaining term of the note.

During the three months ended March 31, 2020, the Company received an aggregate of $6,167,328 and repaid an aggregate of $3,142,796.

On February 11, 2020, pursuant to an assignment and consent agreement, Heritage sold, transferred and assigned to Bay View Funding all of Heritage’s right, title, and interest in the loan and security agreement (refer to Note 9, Factor Financing, for additional detail). As a result of the assignment, the Company recorded a loss on settlement of debt of $149,180 related to the remaining accretion of debt discount in the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

Loan with Libertas Funding LLC

On January 4, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with Libertas Funding LLC, a Connecticut limited liability company (“Libertas”). Under the Financing Agreement, the Financing Parties sold to Libertas future receivables in an aggregate amount equal to $1,460,000 for a purchase price of $1,000,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay Libertas $31,602 each week based upon an anticipated 20% of its future receivables until such time as $1,460,000 had been paid, a period Libertas and the Financing Parties estimated to be approximately eleven months. In the event that the Financing Agreement was paid off earlier than eleven months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions. The Company used the proceeds of the Financing Agreement for the acquisition of TNS.

On February 1, 2019, the Company fully repaid the Financing Agreement. As a result, the amount owed at December 31, 2019 was $0.

Loan with WaveTech Global, Inc., matured April 28, 2019

On February 4, 2019, the Company entered into a share purchase agreement with WaveTech Global. This agreement included a promissory note in the principal amount of $1,325,895, which matured on April 28, 2019. On July 9, 2019, the share purchase agreement was terminated. As a result, the Company placed the amount due to WaveTech Global into escrow using cash received from the WaveTech GmbH share purchase agreement (refer to Note 15, Commitments and Contingencies for additional detail). In connection with the WaveTech GmbH transaction dated November 14, 2019, the escrow amount was returned to the Company.

Loan with C6 Capital

On August 16, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with C6 Capital. Under the Financing Agreement, the Financing Parties sold to C6 Capital future receivables in an aggregate amount equal to $337,500 for a purchase price of $250,000. The Company received cash of $242,500 and recorded a debt discount of $95,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay C6 Capital $10,045 each week based upon an anticipated 20% of its future receivables until such time as $337,500 had been paid, a period C6 Capital and the Financing Parties estimated to be approximately eight months. In the event that the Financing Agreement was paid off earlier than eight months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $180,804 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $156,696 of the original balance under the agreement. As a result, the amount owed at March 31, 2020 was $0. The Company recorded a loss on settlement of debt of $1,490 to the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

Loan with Pawn Funding

On December 10, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with Pawn Funding. Under the Financing Agreement, the Financing Parties sold to Pawn Funding future receivables in an aggregate amount equal to $135,000 for a purchase price of $100,000. The Company received cash of $97,000 and recorded a debt discount of $38,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay Pawn Funding $4,219 each week based upon an anticipated 15% of its future receivables until such time as $135,000 has been paid, a period Pawn Funding and the Financing Parties estimate to be approximately eight months. In the event that the Financing Agreement is paid off earlier than eight months, there is to be a discount to the sum owed. The Financing Agreement also contains customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $8,437 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $54,844 of the original balance under the agreement.

At March 31, 2020, the Company owed $71,719 pursuant to this agreement and will record accretion equal to the debt discount of $11,260 over the remaining term of the note.

Loan with RDM Capital Funding

On December 10, 2019, the Company, together with its subsidiaries, AWS, ADEX, and TNS (collectively with the Company, the “Financing Parties”), entered into an Agreement of Sale of Future Receipts (the “Financing Agreement”) with RDM Capital Funding. Under the Financing Agreement, the Financing Parties sold to RDM Capital Funding future receivables in an aggregate amount equal to $337,500 for a purchase price of $250,000. The Company received cash of $242,500 and recorded a debt discount of $95,000.

Pursuant to the terms of the Financing Agreement, the Company agreed to pay RDM Capital Funding $10,574 each week based upon an anticipated 3% of its future receivables until such time as $337,500 had been paid, a period RDM Capital Funding and the Financing Parties estimated to be approximately eight months. In the event that the Financing Agreement was paid off earlier than eight months, there was to be a discount to the sum owed. The Financing Agreement also contained customary affirmative and negative covenants, representations and warranties, and default and termination provisions.

During the year ended December 31, 2019, the Company paid $21,094 of the original balance under the agreement. During the three months ended March 31, 2020, the Company paid $137,111 of the original balance under the agreement. At March 31, 2020, the Company owed $179,295 pursuant to this agreement and was to record accretion equal to the debt discount of $28,149 over the remaining term of the note.

During the period of April 1, 2020 through May 8, 2020, the Company repaid the balance in full. The final payment included the discount described above, which amounted to $62,652 (refer to Note 17, Subsequent Events, for additional detail).

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Convertible Debentures

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Convertible Debentures

8. Convertible Debentures

As of March 31, 2020 and December 31, 2019, the Company had outstanding the following convertible debentures:

	March 31,		December 31,
	2020		2019
Convertible promissory note, Barn 11, 18% interest, unsecured, matured June 1, 2019	$	594,362	$	594,362
Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020, net of debt discount of $50,443 and 105,752		1,512,458		1,461,265
Convertible promissory note, Michael Roeske, 24% interest, unsecured, due on demand, net of debt discount of $0 and $3,512		145,000		112,488
Convertible promissory note, Joel Raven, 24% interest, unsecured, due on demand, net of debt discount of $0 and $8,658		455,000		355,342
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures August 2, 2020, net of debt discount of $13,891 and $24,819		86,109		98,181
Convertible promissory note, SCS, LLC, 24% interest, unsecured, matured March 30, 2020, due on demand, net of debt discount of $0 and $13,005		63,788		38,025
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020, net of debt discount of $75,861 and $113,674		72,139		34,326
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021, net of debt discount of $40,750 and $53,051		27,750		15,449
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021, net of debt discount of $35,417 and $45,125		22,583		12,875
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures October 24 2020, net of debt discount of $16,778 and $23,986		106,222		99,014
Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020, net of debt discount of $46,898 and $58,648		28,102		16,352
Convertible promissory note, CCAG Investments, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Convertible promissory note, FJ Vulis and Associates, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Total		3,242,205		2,837,679
Less: Long-term portion of convertible debentures, net of debt discount		-		(28,324	)
Convertible debentures, current portion, net of debt discount	$	3,242,205	$	2,809,355

Convertible promissory note, Barn 11, 18% interest, unsecured, matured June 1, 2019

On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates.

The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851.

On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default.

During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020.

Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020

On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding.

As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019.

The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020.

During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note.

Convertible promissory note issued in connection with the acquisition of TNS, Inc.

On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00.

The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000.

On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement.

Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020

On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020.

During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock.

The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum.

At March 31, 2020, the Company owed $145,000 pursuant to this agreement.

Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020

On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020.

During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock

The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum.

At March 31, 2020, the Company owed $455,000 pursuant to this agreement.

Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020

On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000.

The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note was originally due on August 2, 2020. The secured note was convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price had a floor of $3.00 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $28,000 resulted in an additional discount to the note payable of $28,000, for a total debt discount of $39,000.

During the three months ended March 31, 2020, the holder of the note converted $23,000 of principal and $1,026 of accrued interest into shares of the Company’s common stock (refer to Note 11, Common Stock, for additional information). As a result of these conversions, the Company recorded a loss on settlement of debt of $40,232 to the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020.

At March 31, 2020, the Company owed $100,000 pursuant to this agreement and was to record accretion equal to the debt discount of $13,891 over the remaining term of the note.

On April 30, 2020, the holder of the note converted the remaining $100,000 of principal and $5,742 of accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, GS Capital Partners, LLC, 8% interest, unsecured, matures October 24, 2020

On October 24, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on October 24, 2020. The note is convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price has a floor of $3.00 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $20,000 resulted in an additional discount to the note payable of $20,000, for a total debt discount of $31,000.

At March 31, 2020, the Company owed $123,000 pursuant to this agreement and will record accretion equal to the debt discount of $16,778 over the remaining term of the note.

Convertible promissory note, SCS, LLC, 8% interest, unsecured, matured March 30, 2020

On September 1, 2019, the Company entered into and closed on a Securities Purchase Agreement with SCS, LLC, pursuant to which the Company issued to SCS, LLC an unsecured convertible promissory note in the aggregate principal amount of $51,030 in exchange for rent.

The interest on the outstanding principal due under the unsecured note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note and has a maturity date of March 30, 2020. The secured note is convertible into shares of the Company’s common stock at 75% of the lowest average VWAP in the 15 trading days prior to the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $29,000 resulted in a discount to the note payable of $29,000.

The note matured on March 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $12,758. The interest also increased from 8% per annum to 24% per annum.

At March 31, 2020, the Company owed $63,788 pursuant to this agreement.

On June 19, 2020, the holder of the note began converting principal and accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020

On September 17, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $148,000 for an aggregate purchase price of $135,000. The Company received the cash on October 1, 2019.

The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $159,000 resulted in an additional discount to the note payable of $135,000, for a total debt discount of $148,000. The remaining $24,000 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019.

At March 31, 2020, the Company owed $148,000 pursuant to this agreement and was to record accretion equal to the debt discount of $75,861 over the remaining term of the note.

On April 1 2020, the holder of the note began converting principal into shares of the Company’s common stock. Between that date and June 9, 2020, the holder of the note converted the full principal amount of the note along with the accrued interest (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021

On October 22, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $68,500 for an aggregate purchase price of $60,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on January 22, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $56,000 resulted in an additional discount to the note payable of $56,000, for a total debt discount of $64,500.

At March 31, 2020, the Company owed $68,500 pursuant to this agreement and will record accretion equal to the debt discount of $40,751 over the remaining term of the note.

On June 9, 2020, the holder of the note began converting principal into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021

On November 27, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $58,000 for an aggregate purchase price of $50,000.

The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on February 26, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share.

The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $43,000 resulted in an additional discount to the note payable of $43,000, for a total debt discount of $51,000.

At March 31, 2020, the Company owed $58,000 pursuant to this agreement and will record accretion equal to the debt discount of $35,417 over the remaining term of the note.

Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020

On November 12, 2019, the Company entered into and closed on a Securities Purchase Agreement with Crown Bridge Partners, LLC, pursuant to which the Company issued to Crown Bridge Partners, LLC a convertible promissory note in the aggregate principal amount of $225,000 for an aggregate purchase price of $202,500. The Company received the first tranche of $75,000 on November 21, 2019 for an aggregate purchase price of $65,500. The Company also issued a warrant equal to the face amount of the note with a term of three years to purchase 2,500 shares of common stock at an exercise price of $30.00 per share.

The interest on the outstanding principal due under the first tranche of the note accrues at a rate of 10% per annum. All principal and accrued but unpaid interest under the first tranche of the note is due on November 21, 2020. The first tranche of the note is convertible into shares of the Company’s common stock at 60% of the average of the three lowest VWAPs in the 20 trading days prior to and including the conversion date.

The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion option feature of $138,000 and warrant feature of $20,138 resulted in an additional discount to the note payable of $65,500, for a total debt discount of $75,000. The remaining $92,638 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019.

At March 31, 2020, the Company owed $75,000 pursuant to this agreement and will record accretion equal to the debt discount of $46,898 over the remaining term of the note.

Convertible promissory note, CCAG Investments, LLC, 20% interest, secured, matures June 30, 2020

On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with CCAG Investments, LLC, pursuant to which the Company issued to CCAG Investments, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share.

The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.

In connection with the issuance of the note, the Company also issued to CCAG Investments, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail).

The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000.

The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance.

On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail).

Convertible promissory note, FJ Vulis and Associates LLC, 20% interest, secured, matures June 30, 2020

On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with FJ Vulis and Associates, LLC, pursuant to which the Company issued to FJ Vulis and Associates, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share.

The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.

In connection with the issuance of the note, the Company also issued to FJ Vulis and Associates, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail).

The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000.

The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance.

On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail).

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Factor Financing

3 Months Ended

Mar. 31, 2020

Factor Financing Disclosure [Abstract]

Factor Financing

9. Factor Financing

On February 11, 2020, pursuant to an assignment and consent agreement, Bay View Funding was sold, transferred and assigned all of Heritage’s right, title, and interest in the loan and security agreement with the Company’s wholly-owned subsidiary, ADEX, discussed in Note 7, Loans Payable. In connection with the agreement, the Company received $3,024,532 from Bay View Funding. This money was used to pay off the amounts owed to Heritage at the time of the assignment and consent agreement. The initial term of the factoring agreement is twelve months from the initial funding date.

Under the factoring agreement, the Company’s ADEX subsidiary may borrow up to the lesser of $5,000,000 or an amount equal to the sum of all undisputed purchased receivables multiplied by the advance percentage, less any funds in reserve. ADEX will pay to Bay View Funding a factoring fee upon purchase of receivables by Bay View Funding equal to 0.75% of the gross face value of the purchased receivable for the first 30 day period from the date said purchased receivable is first purchased by Bay View Funding, and a factoring fee of 0.35% per 15 days thereafter until the date said purchased receivable is paid in full or otherwise repurchased by ADEX or otherwise written off by Bay View Funding within the write off period. ADEX will also pay a finance fee to Bay View Funding on the outstanding advances under the agreement at a floating rate per annum equal to the Prime Rate plus 3%. The finance rate will increase or decrease monthly, on the first day of each month, by the amount of any increase or decrease in the Prime Rate, but at no time will the finance fee be less than 7.75%.

During the three months ended March 31, 2020, the Company received an aggregate of $4,685,390 and repaid an aggregate of $1,841,858. The Company owed $2,844,381 under the agreement as of March 31, 2020.

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Derivative Liabilities

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liabilities

10. Derivative Liabilities

The embedded conversion options of the convertible debentures described in Note 8, Convertible Debentures, contain conversion features that qualify for embedded derivative classification. The fair value of the liability is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on change in fair value of derivatives. Derivative liabilities also include the fair value of the Company’s share purchase warrants and stock options discussed in Note 13, Share Purchase Warrants and Stock Options. As of March 31, 2020, the derivative liability balance of $2,063,062 was comprised of $1,225,000 of derivatives related to the Company’s convertible debentures, and $838,062 of derivatives related to the Company’s share purchase warrants and stock options. As of December 31, 2019, the derivative liability balance of $992,733 was comprised of $801,000 of derivatives related to the Company’s convertible debentures, and $191,732 of derivatives related to the Company’s share purchase warrants and stock options.

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities for the three months ended March 31, 2020 and the year ended December 31, 2019:

	March 31,		December 31,
	2020		2019
Balance at the beginning of the period	$	992,733	$	3,166,886
Change in fair value of embedded conversion option		813,630		(1,843,935	)
Fair value of debt derivatives at issuance		84,000		-
Fair value of warrant derivatives at issuance		128,000		-
Fair value of option derivatives at issuance		44,700		-
Conversion of derivative liability		-		(1,281,888	)
Original discount limited to proceeds of notes				376,500
Repayment of convertible note		-		(164,468	)
Derivative issued as part of acquisition		-		189,000
Fair value of derivative liabilities in excess of notes proceeds received		-		116,638
Addition to derivative due to default penalty		-		466,000
Impact of note extinguishment		-		(32,000	)
Balance at the end of the period	$	2,063,063	$	992,733

The Company uses Level 3 inputs for its valuation methodology for the embedded conversion option liabilities as their fair values were determined by using Monte-Carlo model or a Binomial Model based on various assumptions.

Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:

	Expected volatility	Risk-free interest rate	Expected dividend yield			Expected life (in years)
At December 31, 2019	230 - 304%	1.55 - 1.75%		0	%	0.25 - 1.16
At March 31, 2020	193 - 361%	0.04 - 1.75%		0	%	0.08 - 2.85

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Common Stock

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Common Stock

11. Common Stock

Authorized Shares

On November 15, 2017, the Company revised its authorized share capital to increase the number of authorized common shares from 275,000,000 common shares with a par value of $0.00001, to 750,000,000 common shares with a par value of $0.00001. The reverse stock split discussed in Note 2, Significant Accounting Policies, did not change the number of authorized shares of the Company’s common stock.

Treasury Stock

The Company holds 2,071 common shares in treasury at a cost of $277,436.

Issuance of Shares Pursuant to Conversion of Series A Preferred Stock

On January 7, 2020, the Company issued 1,112 shares of common stock to M2B Funding upon the conversion of 10,000 shares of Series A preferred stock with a stated value of $1 per share.

On February 11, 2020, the Company issued 2,778 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

Issuance of Shares Pursuant to the Execution of New Convertible Debentures

On February 7, 2020, the Company issued 9,755 shares of common stock to CCAG Investments, LLC upon the execution of a new convertible note described in Note 8, Convertible Debentures.

On February 7, 2020, the Company issued 9,755 shares of common stock to FJ Vulis and Associates, LLC upon the execution of a new convertible note described in Note 8, Convertible Debentures.

Issuance of Shares Pursuant to GS Capital Partners, LLC Convertible Debentures

On February 12, 2020, the Company issued 1,647 shares of common stock to GS Capital Partners, LLC upon the conversion of $8,000 of principal and $323 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On March 13, 2020, the Company issued 11,212 shares of common stock to GS Capital Partners, LLC upon the conversion of $15,000 of principal and $703 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Issuance of Shares Pursuant to WaveTech GmbH Post-Closing Notes

On February 18, 2020, the Company issued 1,082,731 shares of common stock to holders of WaveTech GmbH post-closing notes upon the conversion of $8,507,557 of principal and accrued interest pursuant to the post-closing notes described in Note 3, Due From Related Party.

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Preferred Stock

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Preferred Stock

12. Preferred Stock

Series A

On November 15, 2017, the Company created one series of the 20,000,000 preferred shares it is authorized to issue, consisting of 8,000,000 shares, to be designated as Series A preferred stock.

On October 29, 2018, the Company made the first amendment to the Certificate of Designation of its Series A convertible preferred stock. This amendment updated the conversion price to be equal to the greater of 75% of the lowest VWAP during the ten trading day period immediately preceding the date a conversion notice is delivered or $120.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock.

On August 16, 2019, the Company made the second amendment to the Certificate of Designation of its Series A convertible preferred stock. As a result of this amendment, the Company recorded a deemed dividend of $488,072 for the year ended December 31, 2019 in accordance with ASC 260-10-599-2. Subsequent to the second amendment, the principal terms of the Series A preferred stock shares were as follows:

Voting rights – The Series A preferred stock shares do not have voting rights.

Dividend rights – The holders of the Series A preferred stock shares shall not be entitled to receive any dividends. No dividends (other than those payable solely in common stock) shall be paid on the common stock or any class or series of capital stock ranking junior, as to dividends, to the Series A preferred stock shares during any fiscal year of the Company until there shall have been paid or declared and set apart during that fiscal year for the holders of the Series A preferred stock shares a dividend in an amount per share equal to (i) the number of shares of common stock issuable upon conversion of the Series A preferred stock times (ii) the amount per share of the dividend to be paid on the common stock.

Conversion rights – The holders of the Series A preferred stock shares have the right to convert each Series A preferred stock share and all accrued and unpaid dividends thereon shall be convertible at the option of the holder thereof, at any time after the issuance of such share into fully paid and nonassessable shares of common stock of the Company. The number of shares of common stock into which each share of the Series A preferred stock shares may be converted shall be determined by dividing the sum of the stated value of the Series A preferred stock shares ($1.00 per share) being converted and any accrued and unpaid dividends by the conversion price in effect at the time of the conversion. The Series A preferred stock shares may be converted at an initial conversion price of the lower of 80% of the lowest VWAP during the five trading day period immediately preceding the date a conversion notice is delivered or $15.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock. The conversion price has a floor of $9.00 per share.

Liquidation rights – Upon the occurrence of any liquidation, each holder of Series A preferred stock shares then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment shall be made in respect of the common stock, or other series of preferred stock then in existence that is outstanding and junior to the Series A preferred stock shares upon liquidation, an amount per share of Series A preferred stock shares equal to the amount that would be receivable if the Series A preferred stock shares had been converted into common stock immediately prior to such liquidation distribution, plus, accrued and unpaid dividends.

In accordance with ASC 480 Distinguishing Liabilities from Equity, the Company has classified the Series A preferred stock shares as temporary equity or “mezzanine.”

Holders of Series A preferred stock shares began converting into shares of common stock during May 2018 (refer to Note 11, Common Stock, for additional detail).

On April 8, 2020, the Company made the third amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price and the conversion price floor to $3.00 per share (refer to Note 17, Subsequent Events, for additional detail).

On June 18, 2020, the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share (refer to Note 17, Subsequent Events, for additional detail).

Series B

On April 16, 2018, the Company designated 1,000 shares of Series B preferred stock of the Company with a stated value of $3,500 per share. The Series B preferred stock is neither redeemable nor convertible into common stock. The principal terms of the Series B preferred stock shares are as follows:

Issue Price - The stated price for the Series B preferred stock shares shall be $3,500 per share.

Redemption - The Series B preferred stock shares are not redeemable.

Dividends - The holders of the Series B preferred stock shares shall not be entitled to receive any dividends.

Preference of Liquidation - The Corporation’s Series A preferred stock (the “Senior Preferred Stock) shall have a liquidation preference senior to the Series B preferred stock. Upon any fundamental transaction, liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, the holders of the shares of the Series B preferred stock shares shall be entitled, after any distribution or payment is made upon any shares of capital stock of the Company having a liquidation preference senior to the Series B preferred stock shares, including the Senior Preferred Stock, but before any distribution or payment is made upon any shares of common stock or other capital stock of the Company having a liquidation preference junior to the Series B preferred stock shares, to be paid in cash the sum of $3,500 per share. If upon such liquidation, dissolution or winding up, the assets to be distributed among the Series B preferred stock holders and all other shares of capital stock of the Company having the same liquidation preference as the Series B preferred stock shall be insufficient to permit payment to said holders of such amounts, then all of the assets of the Company then remaining shall be distributed ratably among the Series B preferred stock holders and such other capital stock of the Company having the same liquidation preference as the Series B preferred stock, if any. Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, after provision is made for Series B preferred stock holders and all other shares of capital stock of the Company having the same liquidation preference as the Series B preferred stock, if any, then-outstanding as provided above, the holders of common stock and other capital stock of the Company having a liquidation preference junior to the Series B preferred stock shall be entitled to receive ratably all remaining assets of the Company to be distributed.

Voting - The holders of shares of Series B preferred stock shall be voted together with the shares of common stock such that the aggregate voting power of the Series B preferred stock is equal to 51% of the total voting power of the Company.

Conversion - There are no conversion rights.

In accordance with ASC 480 Distinguishing Liabilities from Equity, the Company has classified the Series B preferred stock shares as temporary equity or “mezzanine.”

Series C

On November 14, 2019, the Company designated 9,000,000 shares of Series C preferred stock of the Company with a stated value of $0.00001 per share. The principal terms of the Series C preferred stock shares are as follows:

Issue Price - The stated price for the Series C preferred stock shall be $0.00001 per share.

Redemption - The Series C preferred stock shares are not redeemable.

Dividends - The holders of the Series C preferred stock shares shall not be entitled to receive any dividends.

Preference of Liquidation - Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a “liquidation”), the Series C preferred stock shall (i) first be entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to $0.00001 for each share of Series C preferred stock before any distribution or payment shall be made to the holders of any junior securities and (ii) then be entitled to receive out of the assets, whether capital or surplus, of the Company the same amount that a holder of common stock would receive if the Series C preferred stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders of common stock.

Voting - Except as otherwise provided herein or as required by law, the Series C preferred stock shall be voted together with the shares of common stock, par value $0.00001 per share of the Company and any other series of preferred stock then outstanding, and not as a separate class, at any annual or special meeting of stockholders of the Company, with respect to any question or matter upon which the holders of common stock have the right to vote, such that the voting power of each share of Series C preferred stock is equal to the voting power of the shares of common stock that each such share of Series C preferred stock is convertible into pursuant hereto. The Series C preferred stock shall be entitled to notice of any stockholders’ meeting in accordance with the bylaws of the Company, and may act by written consent in the same manner as the holders of common stock of the Company.

Conversion - on the second business day following the earlier of (i) the reverse split of the Company’s common stock, (ii) the listing of the Company on a national securities exchange and (iii) the six-month anniversary of the closing date (as defined below) (the “Series C Conversion Date”), without any further action, all outstanding shares of Series C shall automatically convert into an aggregate number of shares of the Company’s common stock equal to the greater of (i) $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below), or (ii) the Aggregate Value/$9.75 (as adjusted for any reverse stock split or similar adjustment that may occur prior to the Series C Conversion Date). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any Losses (as defined below).

For purposes hereof, a “Triggering Event” shall include any liability arising from a breach of the representations or warranties of WaveTech GmbH (as defined below) contained in the share purchase agreement dated July 15, 2019 and all amendments thereto (as amended, the “SPA”), by and between the Company and WaveTech GmbH, a corporation organized under the laws of the Republic of Germany. “Closing Date” shall have the meaning ascribed to the term in the SPA. “Strike Price” shall mean the closing price per share of the Company’s common stock on the trading day immediately preceding the Series C Conversion Date.

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement with WaveTech GmbH. As a result of the amendment, certain terms of the Company’s Series C preferred stock were changed (refer to Note 17, Subsequent Events, for additional detail).

As of the date of this report, the Series C shares have not been issued. The Company expects to issue these shares during the third quarter of 2020 (refer to Note 15, Commitments and Contingencies, for additional detail).

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Share Purchase Warrants and Stock Options

3 Months Ended

Mar. 31, 2020

Share Purchase Warrants [Abstract]

Share Purchase Warrants and Stock Options

13. Share Purchase Warrants and Stock Options

From time to time, the Company issues share purchase warrants and stock options, which are classified as liabilities. The total fair value of the Company’s share purchase warrants and stock options was $838,062 and $191,732 as of March 31, 2020 and December 31, 2019, respectively. This amount is included in derivative liabilities on the consolidated balance sheets. The valuation methodology, including the assumptions used in the valuation, are discussed in Note 10, Derivative Liabilities. The weighted-average remaining life on the share purchase warrants as of March 31, 2020 and December 31, 2019 was 1.6 years and 1.3 years, respectively. The stock options outstanding at March 31, 2020 and December 31, 2019 were not subject to any vesting terms.

The following table summarizes the activity of share purchase warrants for the three months ended March 31, 2020:

	Number of warrants		Weighted average exercise price
Balance at December 31, 2019		14,075	$	331.46
Issued		64,134		253.57
Expired		-		-
Balance at March 31, 2020		78,209	$	267.59

As of March 31, 2020, the following share purchase warrants were outstanding:

Number of warrants		Exercise price		Issuance Date	Expiry date
459			1,530.00	28-04-2017	28-04-2020
834			300.00	27-06-2017	27-06-2020
52,506	*		360.00	14-02-2018	13-02-2021
417			480.00	21-02-2018	21-02-2021
1,667			300.00	17-05-2018	17-05-2020
380			324.00	10-10-2018	10-10-2021
2,500			30.00	21-11-2019	21-11-2022
9,723			9.00	07-02-2020	07-02-2023
9,723			9.00	07-02-2020	07-02-2023
78,209

* This warrant is convertible into 4% of the number of common shares of the Company outstanding. At March 31, 2020, it is 4% of the 1,312,634 shares outstanding as of that date.

The following table summarizes the activity of stock options for the three months ended March 31, 2020:

	Number of stock options		Weighted average exercise price
Balance at December 31, 2019		5,000	$	9.00
Issued		-		-
Expired		-		-
Balance at March 31, 2020		5,000	$	9.00

As of March 31, 2020, the following stock options were outstanding:

Number of stock options		Exercise price		Issuance Date	Expiry date
	5,000		9.00	11/25/2019	11/25/2021

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Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

14. Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases, which introduced a lessee model that requires the majority of leases to be recognized on the balance sheet. On January 1, 2019, the Company adopted the ASU using the modified retrospective transition approach and elected the transition option to recognize the adjustment in the period of adoption rather than in the earliest period presented. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of $269,341 as of January 1, 2019. During the year ended December 31, 2019, non-cash right of use assets recorded in exchange for non-cash operating lease liabilities was $316,600. The Company leases certain office space and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term. The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The Company used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The following table sets forth the operating lease right of use (“ROU”) assets and liabilities as of March 31, 2020:

	March 31,		December 31,
	2020		2019
Operating lease assets	$	136,211	$	168,384
Operating lease liabilities:
Current operating lease liabilities		141,688		173,351
Total operating lease liabilities	$	141,688	$	173,351

Expense related to leases is recorded on a straight-line basis over the lease term, including rent holidays. During the three months ended March 31, 2020 and 2019, the Company recognized operating lease expense of $52,308 and $48,175, respectively. Operating lease costs are included within selling, administrative and other expenses on the consolidated statements of operations. During the three months ended March 31, 2020, short-term lease costs were $50,073 and $78,035, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $51,799 and $47,309 for the three months ended March 31, 2020 and 2019, respectively, and this amount is included in operating activities in the consolidated statements of cash flows. During the three months ended March 31, 2020 and 2019, respectively, the Company reduced its operating lease liabilities by $31,662 and $36,150 for cash paid.

The operating lease liabilities as of March 31, 2020 reflect a weighted average discount rate of 58%. The weighted average remaining term of the leases is 2.75 years. Remaining lease payments as of March 31, 2020 are as follows: 

Year ending December 31,
2020	$	70,203
2021		95,914
2022		86,681
2023		21,330
Total lease payments		274,128
Less: imputed interest		(132,440	)
Total	$	141,688

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

15. Commitments and Contingencies

Leases

The Company leases certain of its properties under leases that expire on various dates through 2023. Some of these agreements include escalation clauses and provide for renewal options ranging from one to five years. Leases with an initial term of 12 months or less and immaterial leases are not recorded on the balance sheet (refer to Note 14, Leases, for amounts expensed during the three months ended March 31, 2020 and 2019).

WaveTech GmbH Share Purchase Agreement

On July 15, 2019, the Company entered into a share purchase agreement with WaveTech GmbH, a German corporation.

The merger of WaveTech GmbH into the Company shall be effected through a sale and exchange of shares and cash. Pursuant to the share purchase agreement, in exchange for shares of common stock of the Company, the Company will acquire all right, title and interest in all of the issued and outstanding shares of stock of WaveTech GmbH in exchange for the issuance of the Company’s Series C preferred stock as well as the assumption by the Company of $8,507,557 of WaveTech GmbH debt (refer to Note 3, Due From Related Party, for additional detail). The Company was to receive $3,000,000 in cash at or before consummation of the transactions contemplated by the share purchase agreement (the “Transactions”). Upon consummation of the Transactions, the current WaveTech GmbH shareholders will beneficially own a majority of the outstanding shares of the Company.

The consummation of the Transactions is also subject to the satisfaction or waiver (if permitted by law) of certain closing conditions, including, among other things, (i) the accuracy of the representations and warranties of the parties in all material respects and (ii) the performance of and compliance with the covenants of the parties in all material respects.

The parties are required to use commercially reasonable efforts to cause to be taken and to do or cause to be done all actions and things as are necessary under the terms of the share purchase agreement or under applicable law, in order to consummate the Transactions. The parties are also required to, among other things, cooperate in all respects with each other in connection with any filing or submission to any governmental authority in connection with the Transactions.

The share purchase agreement also contains certain termination rights for both the Company and WaveTech GmbH, including that the Company or WaveTech GmbH may terminate the share purchase agreement if WaveTech GmbH has not obtained executed assignment agreements from its shareholders holding an aggregate of (i) fifty one percent (51%) of the issued and outstanding shares of WaveTech GmbH by the date that is ninety (90) days following the date of the share purchase agreement and (ii) ninety percent (90%) of the issued and outstanding shares of WaveTech GmbH by March 31, 2020. As of the date of this report, the executed assignment agreements had not been obtained and neither party had chosen to terminate the deal.

On November 14, 2019, the Company entered into Amendment Number 1 of the share purchase agreement and acquired approximately 60% of the outstanding shares of WaveTech GmbH. In connection with the Company acquiring these shares, the Company’s board appointed Dag Valand to be a director of the Company and appointed Silas Poel to be the Company’s Chief Operating Officer and director. Mr. Valand is the CEO and co-founder of WaveTech GmbH and Mr. Poel is the Chief Operating Officer of WaveTech GmbH. Additionally, on February 19, 2020, the Company’s board appointed Brynjar Meling to be a director of the Company. Mr. Meling previously served as a director of WaveTech GmbH.

The Company determined that the acquisition had not been completed for accounting purposes as of the three months ended March 31, 2020 because the Series C preferred stock shares have not yet been issued.

As of December 31, 2019, the Company had received $2,989,978 in cash from WaveTech GmbH. Additionally, the Company recorded a foreign exchange loss of $10,022 in the consolidated statement of operations for the year ended December 31, 2019. During the three months ended March 31, 2020, the Company received an additional $299,972 in cash from WaveTech GmbH. This $3,299,972 is included in due from related party as of March 31, 2020 (refer to Note 3, Due From Related Party, for additional detail). Additionally, as of the date of this report, the Series C preferred stock shares have not been issued. 

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement (refer to Note 17, Subsequent Events, for additional detail).

Between the period of April 1, 2020 through June 25, 2020, the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH (refer to Note 17, Subsequent Events, for additional detail). As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH. 

Oasis Capital, LLC Equity Purchase Agreement and Registration Rights Agreement

On August 29, 2019, the Company entered into an equity purchase agreement and registration rights agreement with Oasis Capital, LLC, a Puerto Rico limited liability Company. Under the terms of the equity purchase agreement, Oasis Capital agreed to purchase from the Company up to $2,500,000 of the Company’s common stock upon effectiveness of a registration statement on Form S-1 (the “Registration Statement”) filed with the SEC and subject to certain limitations and conditions set forth in the equity purchase agreement.

Following effectiveness of the Registration Statement, and subject to certain limitations and conditions set forth in the equity purchase agreement, the Company shall have the discretion to deliver put notices to Oasis Capital and Oasis Capital will be obligated to purchase shares of the Company’s common stock, par value $0.00001 per share based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to Oasis Capital in each put notice shall not exceed the lesser of $250,000 or two hundred percent (200%) of the average daily trading volume of the Company’s common stock during the ten (10) trading days preceding the put. Pursuant to the equity purchase agreement, Oasis Capital and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s common stock to Oasis Capital that would result in Oasis Capital’s beneficial ownership of the Company’s outstanding common stock exceeding 9.99%. The price of each put share shall be equal to eighty five percent (85%) of the market price (as defined in the equity purchase agreement). Puts may be delivered by the Company to Oasis Capital until the earlier of (i) the date on which Oasis Capital has purchased an aggregate of $2,500,000 worth of common stock under the terms of the equity purchase agreement, (ii) August 29, 2022, or (iii) written notice of termination delivered by the Company to Oasis Capital, subject to certain equity conditions set forth in the equity purchase agreement.

As of the date of this report, the Company has not received the funds described in the equity purchase agreement and has not filed the Registration Statement with the SEC.

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Segment Disclosures

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Disclosures

16. Segment Disclosures

During the three months ended March 31, 2020 and 2019, the Company had two operating segments including:

● AWS/ADEX/TNS, which is comprised of the AWS Entities, the ADEX Entities, and TNS.

● Spectrum Global Solutions (SGS), which consists of the rest of the Company’s operations.

Factors used to identify the Company’s reportable segments include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance. The Company’s operating segments have been broken out based on similar economic and other qualitative criteria. The Company operates the SGS reporting segment in one geographical area (the United States) and the AWS/ADEX/TNS operating segment in two geographical areas (the United States and Puerto Rico).

Financial statement information by operating segment for the three months ended March 31, 2020 is presented below:

	Three Months Ended March 31, 2020
	Spectrum Global			AWS/ADEX/ TNS			Total
Net sales	$	-		$	7,130,480		$	7,130,480
Operating loss		(745,562	)		(915,990	)		(1,661,552	)
Interest expense		341,226			74,921			416,147
Depreciation and amortization		-			97,173			97,173
Total assets as of March 31, 2020		5,194,959			11,113,716			16,308,675

Geographic information as of and for the three months ended March 31, 2020 is presented below:

	Revenues For The Three Months Ended March 31, 2020		Long-lived Assets as of March 31, 2020
Puerto Rico	$	170,512	$	9,268
United States		6,959,968		5,802,767
Consolidated total		7,130,480		5,812,035

Financial statement information by operating segment for the three months ended March 31, 2019 and as of December 31, 2019 is presented below:

	Three Months Ended March 31, 2019
	Spectrum Global			AWS/ADEX		Total
Net sales	$	-		$	11,335,732	$	11,335,732
Operating (loss) income		(954,965	)		969,666		14,701
Interest expense		399,555			71,857		471,412
Depreciation and amortization		-			93,952		93,952
Total assets as of December 31, 2019		11,783			12,157,035		12,168,818

Geographic information for the three months ended March 31, 2019 and as of December 31, 2019 is presented below: 

	Revenues For The Three Months Ended March 31, 2019		Long-lived Assets as of December 31, 2019
Puerto Rico	$	310,478	$	9,698
United States		11,025,254		5,861,240
Consolidated total		11,335,732		5,870,938

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Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

17. Subsequent Events

COVID-19

Beginning in early 2020, there has been an outbreak of coronavirus (“COVID-19”), initially in China and which has spread globally. The full extent of the outbreak, related business and travel restrictions and changes to behavior intended to reduce its spread are evolving. Therefore, the full extent to which COVID-19 may impact Company’s results of operations, liquidity or financial position is uncertain. Management continues to monitor the impact that the COVID-19 pandemic is having on the Company and the economies in which the Company operates.

On April 21, April 27, 2020, and May 12, 2020, our AWS, ADEX, and AWS PR subsidiaries received $672,400, $2,682,125, and $78,000, respectively (the “PPP Funds”). AWS entered into a loan agreement with Iberia Bank, ADEX entered into a loan agreement with Heritage Bank of Commerce, and AWS PR entered into a loan agreement with Banco Popular de Puerto Rico. These loan agreements were pursuant to the CARES Act. The CARES Act was established in order to enable small businesses to pay employees during the economic slowdown caused by COVID-19 by providing forgivable loans to qualifying businesses for up to 2.5 times their average monthly payroll costs. The amount borrowed under the CARES Act is eligible to be forgiven provided that (a) the Company uses the PPP Funds during the eight week period after receipt thereof, and (b) the PPP Funds are only used to cover payroll costs (including benefits), rent, mortgage interest, and utility costs. The amount of loan forgiveness will be reduced if, among other reasons, the Company does not maintain staffing or payroll levels. Principal and interest payments on any unforgiven portion of the PPP Funds (the “PPP Loan”) will be deferred for six months and will accrue interest at a fixed annual rate of 1.0% and carry a two year maturity date. There is no prepayment penalty on the CARES Act Loan.

Issuance of Shares Pursuant to Power Up Lending Group LTD. Convertible Debentures

On April 1, 2020, the Company issued 5,715 shares of common stock to Power Up Lending Group LTD. upon the conversion of $12,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 13, 2020, the Company issued 9,196 shares of common stock to Power Up Lending Group LTD. upon the conversion of $16,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 16, 2020, the Company issued 8,621 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 16, 2020, the Company issued 8,621 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 20, 2020, the Company issued 12,122 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On April 30, 2020, the Company issued 58,434 shares of common stock to Power Up Lending Group LTD. upon the conversion of $15,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On May 12, 2020, the Company issued 38,956 shares of common stock to Power Up Lending Group LTD. upon the conversion of $10,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On May 13, 2020, the Company issued 77,912 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On May 20, 2020, the Company issued 113,379 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 9, 2020, the Company issued 62,359 shares of common stock to Power Up Lending Group LTD. upon the conversion of $5,000 of principal and $5,520 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 9, 2020, the Company issued 71,132 shares of common stock to Power Up Lending Group LTD. upon the conversion of $12,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 12, 2020, the Company issued 118,554 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 16, 2020, the Company issued 118,554 shares of common stock to Power Up Lending Group LTD. upon the conversion of $20,000 of principal pursuant to the convertible debenture described in Note 8, Convertible Debentures.

On June 26, 2020, the Company issued 118,777 shares of common stock to Power Up Lending Group LTD. upon the conversion of $16,500 of principal and $2,540 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Dominion Capital Modification

On April 2, 2020, in connection with the convertible debenture outstanding to Dominion Capital, the Company paid a $20,000 modification fee in order to avoid an event of default under the note and receive payment forbearance for a period of 30 days.

Issuance of Shares Pursuant to Conversion of Series A Preferred Stock

On April 9, 2020, the Company issued 8,334 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

On April 29, 2020, the Company issued 8,334 shares of common stock to Dominion Capital upon the conversion of 25,000 shares of Series A preferred stock with a stated value of $1 per share.

On June 22, 2020, the Company issued 85,000 shares of common stock to M2B Funding upon the conversion of 17,000 shares of Series A preferred stock with a stated value of $1 per share.

On June 25, 2020, the Company issued 75,000 shares of common stock to Dominion Capital upon the conversion of 15,000 shares of Series A preferred stock with a stated value of $1 per share.

Amendments to the Certificate of Designation of the Company’s Series A Preferred Stock

On April 8, 2020, the Company made the third amendment to the Certificate of Designation of its Series A preferred stock which lowered the fixed conversion price and the conversion price floor to $3.00 per share.

On June 18, 2020, the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share.

Reverse Stock Split

On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split.

The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.

All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.

Amendment Number 2 of the Share Purchase Agreement with WaveTech GmbH

On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement with WaveTech GmbH. Amendment Number 2 replaced the conversion terms of the Series C preferred stock included with Amendment Number 1 with the following:

Conversion. On the second business day following the earlier of (i) the later of (A) April 30, 2020, or such later date as may be determined by the Board, and (B) a reverse split of the common stock. (ii) the listing of the Company on a national securities exchange and (iii) the six-month anniversary of the issuance of shares of Series C to such holder (such earliest date. the “Series C Conversion Date”), without any further action, all outstanding shares of Series C shall automatically convert into an aggregate number of shares of common stock equal to $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any losses (as defined below). “Strike Price” shall mean the closing price per share of the Company’s common stock on the trading day immediately preceding the Series C Conversion Date.

For purposes hereof, a “Triggering Event” shall include any liability arising from a breach by WaveTech GmbH, a corporation organized under the laws of the Republic of Germany, of any of its representations or warranties contained in that certain Share Purchase Agreement (the “SPA”), by and between the Corporation and WaveTech GmbH. “Losses” shall have the meaning set forth in the SPA.

Additionally, Amendment Number 2 adjusted the amount of common stock issued on the Series C Conversion Date as follows:

If on the earlier of (a) the tenth (l0th) business day prior to the listing of the Company on a national securities exchange (“Uplisting”), or (b) December 15, 2020, the aggregate value of the shares of common stock issued upon conversion of the Series C (the “Conversion Shares”) is less than 95% of the aggregate value of the Conversion Shares on the Series C Conversion Date (such difference in value, the “First Value Differential”), then the Company shall make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the First Value Differential (such additional shares, the “First True-Up Shares”). In the event (i) an Uplisting does not occur until sometime in 2021, and (ii) on such date in 2021 as the Board may determine, but in no event later than the tenth (10th) business day prior to the Uplisting (the “Second True-Up Date”), the aggregate value of the Conversion Shares as of the Second True-Up Date is less than 95% of the aggregate value of the Conversion Shares as of December 15, 2020 (such difference in value, the “Second Value Differential”), the Company shall, at the Board’s discretion, make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the Second Value Differential (such additional shares, the “Second True-Up Shares”). To the extent any shares of Series C are issued after the Series C Conversion Date, then the holder(s) of such shares shall receive the same number of Conversion Shares such holder(s) would have received had they held the Series C on the Series C Conversion Date.

Issuance of Shares Pursuant to GS Capital Partners, LLC Convertible Debentures

 On April 30, 2020, the Company issued 302,121 shares of common stock to GS Capital Partners, LLC upon the conversion of $100,000 of principal and $5,742 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Repayment of CCAG Investments, LLC Convertible Promissory Note

On May 6, 2020, the Company repaid 120% of the principal balance owed to CCAG Investments, LLC. The total payment was $218,534, which included accrued interest of $8,534.

Repayment of FJ Vulis and Associates, LLC Convertible Promissory Note

On May 6, 2020, the Company repaid 120% of the principal balance owed to FJ Vulis and Associates, LLC. The total payment was $218,247, which included accrued interest of $8,247.

Payments to RDM Capital Funding

During the period of April 1, 2020 through May 8, 2020, the Company repaid the balance in full. Total cash payments during this period were $116,643, with a discount of $62,652 as a result of the Company paying the note off in under eight months from issuance.

Issuance of Shares Pursuant to SCS, LLC Convertible Debentures

On June 19, 2020, the Company issued 23,555 shares of common stock to SCS, LLC upon the conversion of $4,000 of principal and $240 of accrued interest pursuant to the convertible debenture described in Note 8, Convertible Debentures.

Update on WaveTech GmbH transaction

Between the period of April 1, 2020 through June 25, 2020, the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH. As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH. 

Both parties have mutually agreed that the Series C preferred stock shares will be issued subsequent to June 30, 2020, likely during the third quarter of 2020. Once the Series C preferred stock shares are issued, the transaction will be considered closed for accounting purposes.

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Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Condensed Financial Statements

Condensed Financial Statements

The accompanying unaudited interim consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Form 10-K for the year ended December 31, 2019. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.

Basis of Presentation/Principles of Consolidation

Basis of Presentation/Principles of Consolidation

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States. These consolidated financial statements include the accounts of the Company and its subsidiaries, the AWS Entities, the ADEX Entities, and TNS (from the date of acquisition, January 4, 2019). All of the subsidiaries are wholly-owned.

All inter-company balances and transactions have been eliminated.

Reverse Stock Split

Reverse Stock Split

On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split.

The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.

All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for doubtful accounts, the estimated useful lives and recoverability of long-lived assets, equity component of convertible debt, stock-based compensation, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

Accounts Receivable

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company records unbilled receivables for services performed but not billed. Management reviews a customer’s credit history before extending credit. The Company maintains an allowance for doubtful accounts for estimated losses. Estimates of uncollectible amounts are reviewed each period, and changes are recorded in the period in which they become known. Management analyzes the collectability of accounts receivable each period. This review considers the aging of account balances, historical bad debt experience, and changes in customer creditworthiness, current economic trends, customer payment activity and other relevant factors. Should any of these factors change, the estimate made by management may also change. The allowance for doubtful accounts at March 31, 2020 and December 31, 2019 was $470,303 and $504,785, respectively.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost. The Company depreciates the cost of property and equipment over their estimated useful lives at the following annual rates:

Automotive	3-5 years straight-line basis
Computer equipment and software	3-7 years straight-line basis
Leasehold improvements	5 years straight-line basis
Office equipment and furniture	5 years straight-line basis
Research equipment	5 years straight-line basis

Goodwill

Goodwill

Goodwill was generated through the acquisition of AWS, ADEX and TNS as the total consideration paid exceeded the fair value of the net assets acquired.

The Company tests its goodwill for impairment at least annually on December 31st and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and the Company’s consolidated financial results.

The Company tests goodwill by estimating fair value using a Discounted Cash Flow (“DCF”) model. The key assumptions used in the DCF model to determine the highest and best use of estimated future cash flows include revenue growth rates and profit margins based on internal forecasts, terminal value and an estimate of a market participant’s weighted-average cost of capital used to discount future cash flows to their present value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

Intangible Assets

Intangible Assets

At March 31, 2020 and December 31, 2019, definite-lived intangible assets primarily consisted of tradenames and customer relationships which are being amortized over their estimated useful lives ranging from 5-35 years.

The Company periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence when events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. The Company has no intangibles with indefinite lives.

For long-lived assets, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. The Company measures the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. There were no impairment charges during the three months ended March 31, 2020 and 2019.

Long-lived Assets

Long-lived Assets

In accordance with ASC 360, “Property, Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value, which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. There were no impairment charges recorded during the three months ended March 31, 2020 and 2019.

Foreign Currency Translation

Foreign Currency Translation

Transactions in foreign currencies are translated into the currency of measurement at the exchange rates in effect on the transaction date. Monetary balance sheet items expressed in foreign currencies are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting foreign exchange gains and losses are recognized in income.

The Company’s integrated foreign subsidiaries are financially or operationally dependent on the Company. The Company uses the temporal method to translate the accounts of its integrated operations into U.S. dollars. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at average rates for the period, except for amortization, which is translated on the same basis as the related asset. The resulting foreign exchange gains or losses are recognized in income.

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

The Company conducts business, and files federal and state income, franchise or net worth, tax returns in Canada, the United States, in various states within the United States and the Commonwealth of Puerto Rico. The Company determines it’s filing obligations in a jurisdiction in accordance with existing statutory and case law. The Company may be subject to a reassessment of federal and provincial income taxes by Canadian tax authorities for a period of three years from the date of the original notice of assessment in respect of any particular taxation year. For Canadian and U.S. income tax returns, the open taxation years range from 2010 to 2019. In certain circumstances, the U.S. federal statute of limitations can reach beyond the standard three year period. U.S. state statutes of limitations for income tax assessment vary from state to state. Tax authorities of Canada and U.S. have not audited any of the Company’s, or its subsidiaries’, income tax returns for the open taxation years noted above.

Significant management judgment is required in determining the provision for income taxes, and in particular, any valuation allowance recorded against the Company’s deferred tax assets. Deferred tax assets are regularly reviewed for recoverability. The Company currently has significant deferred tax assets resulting from net operating loss carryforwards and deductible temporary differences, which should reduce taxable income in future periods. The realization of these assets is dependent on generating future taxable income.

The Company follows the guidance set forth within ASC Topic 740, “Income Taxes” (“ASC Topic 740”) which prescribes a two-step process for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. The first step evaluates an income tax position in order to determine whether it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The second step measures the benefit to be recognized in the financial statements for those income tax positions that meet the more likely than not recognition threshold. ASC Topic 740 also provides guidance on de-recognition, classification, recognition and classification of interest and penalties, accounting in interim periods, disclosure and transition. Penalties and interest, if incurred, would be recorded as a component of current income tax expense.

The Company received a tax notice from the Puerto Rican government requesting payment of taxes related to 2014. The amount due as of March 31, 2020 and December 31, 2019 was $156,711 plus penalties and interest of $126,700 for a total obligation due of $283,411. This tax assessment was included in accrued expenses at March 31, 2020 and December 31, 2019.

Revenue Recognition

Revenue Recognition

Adoption of New Accounting Guidance on Revenue Recognition

The Company recognizes revenue based on the five criteria for revenue recognition established under Topic 606: 1) identify the contract, 2) identify separate performance obligations, 3) determine the transaction price, 4) allocate the transaction price among the performance obligations, and 5) recognize revenue as the performance obligations are satisfied.

Contract Types

The Company’s contracts fall under three main types: 1) unit-price, 2) fixed-price, and 3) time-and-materials. Unit-price contracts relate to services being performed and paid on a unit basis, such as per mile of construction completed. Fixed-price contracts are based on purchase order line items that are billed on individual invoices as the project progresses and milestones are reached. Time-and-materials contracts include employees working permanently at customer locations and materials costs incurred by those employees.

A significant portion of the Company’s revenues come from customers with whom the Company has a master service agreement (“MSA”). These MSA’s generally contain customer specific service requirements.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For the Company’s different revenue service types the performance obligation is satisfied at different times. For professional services revenue, the performance obligation is met when the work is performed. In certain cases this may be each day, or each week depending on the customer. For construction services, the performance obligation is met when the work is completed and the customer has approved the work. Contract assets include unbilled amounts for costs of services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets.

Revenue Service Types

The following is a description of the Company’s revenue service types, which include professional services and construction:

● Professional services are services provided to the clients where the Company delivers distinct contractual deliverables and/or services. Deliverables may include but are not be limited to: engineering drawings, designs, reports and specification. Services may include, but are not be limited to: consulting or professional staffing to support our client’s objectives. Consulting or professional staffing services may be provided remotely or on client premises and under their direction and supervision.

● Construction Services are services provided to the client where the Company may self-perform or subcontract services that require the physical construction of infrastructure or installation of equipment and materials.

Disaggregation of Revenues

The Company disaggregates its revenue from contracts with customers by service type, contract type, contract duration, and timing of transfer of goods or services. See the below tables:

Revenue by service type	Three months ended March 31, 2020		Three months ended March 31, 2019
Professional Services	$	5,367,311	$	5,935,226
Construction		1,763,169		5,400,506
Total	$	7,130,480	$	11,335,732

Revenue by contract duration	Three months ended March 31, 2020		Three months ended March 31, 2019
Short-term	$	28,305	$	65,430
Long-term		7,102,175		11,270,302
Total	$	7,130,480	$	11,335,732

Revenue by contract type	Three months ended March 31, 2020		Three months ended March 31, 2019
Unit-price	$	160,827	$	3,238,658
Fixed-price		1,602,342		2,161,848
Time-and-materials		5,367,311		5,935,226
Total	$	7,130,480	$	11,335,732

The Company also disaggregates its revenue by operating segment and geographic location (refer to Note 16, Segment Disclosures, for additional information).

Accounts Receivable

Accounts receivable include amounts from work completed in which the Company has billed. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable.

Contract Assets and Liabilities

Contract assets include costs and services incurred on contracts with open performance obligations. These amounts are included in contract assets on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract assets totaled $237,862 and $461,681, respectively.

Contract liabilities include costs incurred and are included in contract liabilities on the consolidated balance sheets. At March 31, 2020 and December 31, 2019, contract liabilities totaled $705,396 and $704,544, respectively.

Cost of Revenues

Cost of Revenues

Cost of revenues includes all direct costs of providing services under the Company’s contracts, including costs for direct labor provided by employees, services by independent subcontractors, operation of capital equipment (excluding depreciation and amortization), direct materials, insurance claims and other direct costs.

Research and Development Costs

Research and Development Costs

Research and development costs are expensed as incurred.

Stock-based Compensation

Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” (“ASC 718”), using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

The Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in ASU 2018-07.

The Company uses the Black-Scholes option pricing model to calculate the fair value of stock-based awards. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These subjective variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. The value of the portion of the award that is ultimately expected to vest is recognized as an expense in the consolidated statement of operations over the requisite service period.

Loss per Share

Loss per Share

The Company computes loss per share in accordance with ASC 260, “Earnings per Share” which requires presentation of both basic and diluted loss per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2020 and December 31, 2019, respectively, the Company had 990,158 and 286,736 common stock equivalents outstanding.

Leases

Leases

The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard on January 1, 2019. As such, the disclosures required under ASC 842 are not presented for periods before the date of adoption. For the comparative periods prior to adoption, the Company presented the disclosures which were required under ASC 840.

The new leasing standard requires recognition of leases on the consolidated balance sheets as right-of-use (“ROU”) assets and lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company recognized lease liabilities, with corresponding ROU assets, based on the present value of unpaid lease payments for existing operating leases longer than twelve months as of January 1, 2019. The ROU assets were adjusted per ASC 842 transition guidance for existing lease-related balances of accrued and prepaid rent, unamortized lease incentives provided by lessors, and restructuring liabilities, Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term and is recorded in selling, general and administrative expenses. Variable lease payments for common area maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances on which the variable lease payments are based occur.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or result of operations.

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivables. The Company maintains its cash balances with high-credit-quality financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. These deposits may be withdrawn upon demand and therefore bear minimal risk.

The Company provides credit to customers on an uncollateralized basis after evaluating client creditworthiness. For the three months ended March 31, 2020, three customers accounted for 31%, 13% and 13%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 42%, 3% and 10%, respectively, of trade accounts receivable as of March 31, 2020. For the three months ended March 31, 2019, four customers accounted for 30%, 18%, 10% and 10%, respectively, of consolidated revenues for the period. In addition, amounts due from these customers represented 30%, 20%, 7% and 5%, respectively, of trade accounts receivable as of March 31, 2019.

The Company’s customers are primarily located within the domestic United States of America and Puerto Rico. Revenues generated within the domestic United States of America accounted for approximately 98% and 97% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively. Revenues generated from customers in Puerto Rico accounted for approximately 2% and 3% of consolidated revenues for the three months ended March 31, 2020 and 2019, respectively.

Fair Value Measurements

Fair Value Measurements

The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by US generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows:

Level 1 – quoted prices for identical instruments in active markets;

Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Financial instruments consist principally of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, loans payable and convertible debentures. Derivative liabilities are determined based on “Level 3” inputs, which are significant and unobservable and have the lowest priority. There were no transfers into or out of “Level 3” during the three months ended March 31, 2020 or the year ended December 31, 2019. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

The Company’s financial assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2020 and December 31, 2019 consisted of the following:

	Total fair value at March 31, 2020		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	2,063,063	$	-	$	-	$	2,063,063

	Total fair value at December 31, 2019		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	992,733	$	-	$	-	$	992,733

(1) The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Refer to Note 10, Derivative Liabilities, for additional information.

Derivative Liabilities

Derivative Liabilities

The Company accounts for derivative instruments in accordance with ASC Topic 815, “Derivatives and Hedging” and all derivative instruments are reflected as either assets or liabilities at fair value in the balance sheet. The Company uses estimates of fair value to value its derivative instruments. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company’s policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads, relying first on observable data from active markets. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. The Company categorizes its fair value estimates in accordance with ASC 820 based on the hierarchical framework associated with the three levels of price transparency utilized in measuring financial instruments at fair value as discussed above. As of March 31, 2020 and December 31, 2019, the Company had a derivative liability of $2,063,063 and $992,733, respectively.

Sequencing Policy

Sequencing Policy

Under ASC 815-40-35, the Company has adopted a sequencing policy whereby, in the event that reclassification of contracts from equity to assets or liabilities is necessary pursuant to ASC 815 due to the Company’s inability to demonstrate it has sufficient authorized shares as a result of certain securities with a potentially indeterminable number of shares, shares will be allocated on the basis of the earliest issuance date of potentially dilutive instruments, with the earliest grants receiving the first allocation of shares. Pursuant to ASC 815, issuance of securities to the Company’s employees or directors are not subject to the sequencing policy.

Reclassifications

Reclassifications

Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on total financial position, net income, or stockholders’ equity.

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of property and equipment estimated useful lives

Automotive	3-5 years straight-line basis
Computer equipment and software	3-7 years straight-line basis
Leasehold improvements	5 years straight-line basis
Office equipment and furniture	5 years straight-line basis
Research equipment	5 years straight-line basis

Schedule of disaggregates its revenue from contracts with customers by service type

Revenue by service type	Three months ended March 31, 2020		Three months ended March 31, 2019
Professional Services	$	5,367,311	$	5,935,226
Construction		1,763,169		5,400,506
Total	$	7,130,480	$	11,335,732

Revenue by contract duration	Three months ended March 31, 2020		Three months ended March 31, 2019
Short-term	$	28,305	$	65,430
Long-term		7,102,175		11,270,302
Total	$	7,130,480	$	11,335,732

Revenue by contract type	Three months ended March 31, 2020		Three months ended March 31, 2019
Unit-price	$	160,827	$	3,238,658
Fixed-price		1,602,342		2,161,848
Time-and-materials		5,367,311		5,935,226
Total	$	7,130,480	$	11,335,732

Schedule of financial assets and liabilities fair value measured on a recurring basis

	Total fair value at March 31, 2020		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	2,063,063	$	-	$	-	$	2,063,063

	Total fair value at December 31, 2019		Quoted prices in active markets (Level 1)		Quoted prices in active markets (Level 2)		Quoted prices in active markets (Level 3)
Derivative liability (1)	$	992,733	$	-	$	-	$	992,733

(1) The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31,			December 31,
	2020			2019
Computers and office equipment	$	349,271		$	349,271
Equipment		382,140			382,140
Research equipment		143,129			143,129
Software		227,563			227,563
Vehicles		94,356			94,356
Vehicles under capital lease		-			-
Total		1,196,459			1,196,459
Less: impairment		(44,419	)		(44,419	)
Less: accumulated depreciation		(1,069,416	)		(1,058,973	)
Equipment, net	$	82,624		$	93,067

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	Cost		Accumulated Amortization		Impairment		Net carrying value at March 31, 2020		Net carrying value at December 31, 2019
Customer relationship and lists	$	2,930,829	$	504,181	$	-	$	2,426,648	$	2,490,024
Trade names		1,400,121		235,580		-		1,164,541		1,187,895
Total intangible assets	$	4,330,950	$	739,761	$	-	$	3,591,189	$	3,677,919

Schedule of estimated future amortization expense

Year ending December 31,
2020	$	260,191
2021		346,921
2022		346,921
2023		346,921
2024		346,921
Thereafter		1,943,314
Total	$	3,591,189

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Schedule of related party transactions

	March 31,			December 31,
	2020			2019
Promissory note issued to Roger Ponder, 10% interest, unsecured, due on demand	$	18,858		$	18,858
Promissory note issued to Keith Hayter, 10% interest, unsecured, due on demand		130,000			130,000
Promissory note issued to Keith Hayter, 10% and 8% interest, unsecured, matures April 13, 2020		85,000			85,000
Promissory note issued to Keith Hayter, 8% interest, unsecured, due on demand		80,000			80,000
Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020		170,000			170,000
Promissory note issued to InterCloud Systems, Inc., non-interest bearing, unsecured and due on demand		217,400			217,400
Loan with WaveTech GmbH, 8% interest, due on demand		-	*		3,000,000
Total	$	701,258		$	3,701,258

* As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

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Loans Payable (Tables)

3 Months Ended

Mar. 31, 2020

Loans Payable [Abstract]

Schedule of loans payable

	March 31,		December 31,
	2020		2019
Promissory note issued to J. Thacker, non-interest bearing, unsecured and due on demand	$	41,361	$	41,361
Promissory note issued to S. Kahn, non-interest bearing, unsecured and due on demand		7,760		7,760
Promissory note issued to 0738856 BC ltd non-interest bearing, unsecured and due on demand		2,636		2,636
Promissory note issued to 0738856 BC Ltd, non-interest bearing, unsecured and due on demand		15,000		15,000
Promissory note issued to Bluekey Energy, non-interest bearing, unsecured and due on demand		7,500		7,500
Subscription amount due to T. Warkentin non-interest bearing, unsecured and due on demand		50,000		50,000
Promissory note issued to Old Main Capital LLC, 10% interest, unsecured and due on demand		12,000		12,000
Promissory note issued to Pawn Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $11,260 and $31,365		60,459		94,928
Promissory note issued to RDM Capital Funding, non-interest bearing, matures July 24, 2020, net of debt discount of $28,149 and $79,087		151,146		237,319
Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020, net of debt discount of $149,180		-		2,973,458
Promissory note issued to C6 Capital, non-interest bearing, matures April 15, 2020, net of debt discount of $20,272		-		136,424
Total	$	347,862	$	3,578,386

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Convertible Debentures (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of convertible promissory note

	March 31,		December 31,
	2020		2019
Convertible promissory note, Barn 11, 18% interest, unsecured, matured June 1, 2019	$	594,362	$	594,362
Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020, net of debt discount of $50,443 and 105,752		1,512,458		1,461,265
Convertible promissory note, Michael Roeske, 24% interest, unsecured, due on demand, net of debt discount of $0 and $3,512		145,000		112,488
Convertible promissory note, Joel Raven, 24% interest, unsecured, due on demand, net of debt discount of $0 and $8,658		455,000		355,342
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures August 2, 2020, net of debt discount of $13,891 and $24,819		86,109		98,181
Convertible promissory note, SCS, LLC, 24% interest, unsecured, matured March 30, 2020, due on demand, net of debt discount of $0 and $13,005		63,788		38,025
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020, net of debt discount of $75,861 and $113,674		72,139		34,326
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021, net of debt discount of $40,750 and $53,051		27,750		15,449
Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021, net of debt discount of $35,417 and $45,125		22,583		12,875
Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured. matures October 24 2020, net of debt discount of $16,778 and $23,986		106,222		99,014
Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020, net of debt discount of $46,898 and $58,648		28,102		16,352
Convertible promissory note, CCAG Investments, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Convertible promissory note, FJ Vulis and Associates, LLC, 8% interest, secured, matures June 30, 2020, net of debt discount of $110,654		64,346		-
Total		3,242,205		2,837,679
Less: Long-term portion of convertible debentures, net of debt discount		-		(28,324	)
Convertible debentures, current portion, net of debt discount	$	3,242,205	$	2,809,355

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Derivative Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of changes in the fair value of the Company's Level 3 financial liabilities

	March 31,		December 31,
	2020		2019
Balance at the beginning of the period	$	992,733	$	3,166,886
Change in fair value of embedded conversion option		813,630		(1,843,935	)
Fair value of debt derivatives at issuance		84,000		-
Fair value of warrant derivatives at issuance		128,000		-
Fair value of option derivatives at issuance		44,700		-
Conversion of derivative liability		-		(1,281,888	)
Original discount limited to proceeds of notes				376,500
Repayment of convertible note		-		(164,468	)
Derivative issued as part of acquisition		-		189,000
Fair value of derivative liabilities in excess of notes proceeds received		-		116,638
Addition to derivative due to default penalty		-		466,000
Impact of note extinguishment		-		(32,000	)
Balance at the end of the period	$	2,063,063	$	992,733

Schedule of assumptions used in the calculations

	Expected volatility	Risk-free interest rate	Expected dividend yield			Expected life (in years)
At December 31, 2019	230 - 304%	1.55 - 1.75%		0	%	0.25 - 1.16
At March 31, 2020	193 - 361%	0.04 - 1.75%		0	%	0.08 - 2.85

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Share Purchase Warrants and Stock Options (Tables)

3 Months Ended

Mar. 31, 2020

Share Purchase Warrants [Abstract]

Schedule of share purchase warrants

	Number of warrants		Weighted average exercise price
Balance at December 31, 2019		14,075	$	331.46
Issued		64,134		253.57
Expired		-		-
Balance at March 31, 2020		78,209	$	267.59

Schedule of stock options outstanding

Number of warrants		Exercise price		Issuance Date	Expiry date
459			1,530.00	28-04-2017	28-04-2020
834			300.00	27-06-2017	27-06-2020
52,506	*		360.00	14-02-2018	13-02-2021
417			480.00	21-02-2018	21-02-2021
1,667			300.00	17-05-2018	17-05-2020
380			324.00	10-10-2018	10-10-2021
2,500			30.00	21-11-2019	21-11-2022
9,723			9.00	07-02-2020	07-02-2023
9,723			9.00	07-02-2020	07-02-2023
78,209

* This warrant is convertible into 4% of the number of common shares of the Company outstanding. At March 31, 2020, it is 4% of the 1,312,634 shares outstanding as of that date.

Schedule of stock options outstanding

	Number of stock options		Weighted average exercise price
Balance at December 31, 2019		5,000	$	9.00
Issued		-		-
Expired		-		-
Balance at March 31, 2020		5,000	$	9.00

Schedule of stock options outstanding

Number of stock options		Exercise price		Issuance Date	Expiry date
	5,000		9.00	11/25/2019	11/25/2021

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Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of operating leases related to assets and liabilities

	March 31,		December 31,
	2020		2019
Operating lease assets	$	136,211	$	168,384
Operating lease liabilities:
Current operating lease liabilities		141,688		173,351
Total operating lease liabilities	$	141,688	$	173,351

Schedule of weighted-average discount rate

Year ending December 31,
2020	$	70,203
2021		95,914
2022		86,681
2023		21,330
Total lease payments		274,128
Less: imputed interest		(132,440	)
Total	$	141,688

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Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of information by operating segment

	Three Months Ended March 31, 2020
	Spectrum Global			AWS/ADEX/ TNS			Total
Net sales	$	-		$	7,130,480		$	7,130,480
Operating loss		(745,562	)		(915,990	)		(1,661,552	)
Interest expense		341,226			74,921			416,147
Depreciation and amortization		-			97,173			97,173
Total assets as of March 31, 2020		5,194,959			11,113,716			16,308,675

	Three Months Ended March 31, 2019
	Spectrum Global			AWS/ADEX		Total
Net sales	$	-		$	11,335,732	$	11,335,732
Operating (loss) income		(954,965	)		969,666		14,701
Interest expense		399,555			71,857		471,412
Depreciation and amortization		-			93,952		93,952
Total assets as of December 31, 2019		11,783			12,157,035		12,168,818

Schedule of geographic information

	Revenues For The Three Months Ended March 31, 2020		Long-lived Assets as of March 31, 2020
Puerto Rico	$	170,512	$	9,268
United States		6,959,968		5,802,767
Consolidated total		7,130,480		5,812,035

	Revenues For The Three Months Ended March 31, 2019		Long-lived Assets as of December 31, 2019
Puerto Rico	$	310,478	$	9,698
United States		11,025,254		5,861,240
Consolidated total		11,335,732		5,870,938

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Organization and Going Concern (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019	Feb. 14, 2018	Apr. 25, 2017
Organization and Going Concern (Details) [Line Items]
Accumulated deficit	$ (34,144,137)	$ (30,492,435)
Working capital deficit	$ 4,534,404
Inter Cloud [Member]
Organization and Going Concern (Details) [Line Items]
Business acquisition, percentage			19.90%
Purchase Agreement of Financial Assets [Member] | Inter Cloud [Member]
Organization and Going Concern (Details) [Line Items]
Business acquisition, percentage				80.10%

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Significant Accounting Policies (Details)			3 Months Ended		12 Months Ended
		Apr. 14, 2020	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019	Dec. 31, 2019 USD ($) shares
Significant Accounting Policies (Details) [Line Items]
Reverse stock split, description			All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.
Common stock converted, description			The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number.
Allowance for doubtful accounts (in Dollars)			$ 470,303		$ 504,785
Contract assets (in Dollars)			237,862		461,681
Contract liabilities (in Dollars)			$ 705,396		$ 704,544
Dilutive potential shares outstanding (in Shares) | shares			286,736		990,158
Number of customers			3	4
Derivative liability (in Dollars)	[1]		$ 2,063,063		$ 992,733
Maximum [Member]
Significant Accounting Policies (Details) [Line Items]
Definite-lived intangible assets useful lives			2 years		2 years
Minimum [Member]
Significant Accounting Policies (Details) [Line Items]
Definite-lived intangible assets useful lives			5 years		2 years
Subsequent Event [Member]
Significant Accounting Policies (Details) [Line Items]
Reverse stock split, description		2.
Revenue Benchmark [Member] | Customer One [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			31.00%	30.00%
Revenue Benchmark [Member] | Customer Two [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			13.00%	18.00%
Revenue Benchmark [Member] | Customer Three [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			13.00%	10.00%
Revenue Benchmark [Member] | Customer Four [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage				10.00%
Accounts Receivable [Member] | Customer One [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			42.00%	30.00%
Accounts Receivable [Member] | Customer Two [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			3.00%	20.00%
Accounts Receivable [Member] | Customer Three [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			10.00%	7.00%
Accounts Receivable [Member] | Customer Four [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage				5.00%
UNITED STATES | Revenue Benchmark [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			98.00%	97.00%
PUERTO RICO | Revenue Benchmark [Member]
Significant Accounting Policies (Details) [Line Items]
Customers risk, percentage			2.00%	3.00%

[1] The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

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Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives	12 Months Ended
	Dec. 31, 2019
Leasehold improvements [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	5 years
Office equipment and furniture [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	5 years
Research equipment [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	5 years
Minimum [Member] | Automotive [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	3 years
Minimum [Member] | Computer equipment and software [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	3 years
Maximum [Member] | Automotive [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	5 years
Maximum [Member] | Computer equipment and software [Member]
Significant Accounting Policies (Details) - Schedule of property and equipment estimated useful lives [Line Items]
Property and equipment, useful lives	7 years

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Significant Accounting Policies (Details) - Schedule of disaggregates its revenue from contracts with customers by service type - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Professional Services [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 5,367,311	$ 5,935,226
Constrction [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,763,169	5,400,506
Revenue by service type [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,130,480	11,335,732
Short-term [Member]
Disaggregation of Revenue [Line Items]
Revenue	28,305	65,430
Long-term [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,102,175	11,270,302
Revenue by contract duration [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,130,480	11,335,732
Unit Price [Member]
Disaggregation of Revenue [Line Items]
Revenue	160,827	3,238,658
Fixed-price [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,602,342	2,161,848
Time-and-materials [Member]
Disaggregation of Revenue [Line Items]
Revenue	5,367,311	5,935,226
Revenue by contract type [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 7,130,480	$ 11,335,732

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Significant Accounting Policies (Details) - Schedule of financial assets and liabilities fair value measured on a recurring basis - USD ($)		Mar. 31, 2020	Dec. 31, 2019
Significant Accounting Policies (Details) - Schedule of financial assets and liabilities fair value measured on a recurring basis [Line Items]
Derivative liability	[1]	$ 2,063,063	$ 992,733
Quoted prices in active markets (Level 1) [Member]
Significant Accounting Policies (Details) - Schedule of financial assets and liabilities fair value measured on a recurring basis [Line Items]
Derivative liability	[1]
Quoted prices in active markets (Level 2) [Member]
Significant Accounting Policies (Details) - Schedule of financial assets and liabilities fair value measured on a recurring basis [Line Items]
Derivative liability	[1]
Quoted prices in active markets (Level 3) [Member]
Significant Accounting Policies (Details) - Schedule of financial assets and liabilities fair value measured on a recurring basis [Line Items]
Derivative liability	[1]	$ 2,063,063	$ 992,733

[1] The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

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Due From Related Party (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Feb. 04, 2019
Due From Related Party (Details) [Line Items]
Due from related parties	$ 5,207,585
Interest rate	8.00%
Conversion of shares (in Shares)	1,082,731
Conversion price (in Dollars per share)	$ 7.80
ConversionOfStockAmountIssued1	$ 8,507,557
Balance loan	299,972		$ 1,325,895
WaveTech GmbH [Member]
Due From Related Party (Details) [Line Items]
Cash	7,531,309
Balance loan	3,000,000
Outstanding loan	$ 3,299,972

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Property and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 10,443	$ 7,018

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Property and Equipment (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total	$ 1,196,459	$ 1,196,459
Less: impairment	(44,419)	(44,419)
Less: accumulated depreciation	(1,069,416)	(1,058,973)
Equipment, net	82,624	93,067
Computers and office equipment [Member]
Property, Plant and Equipment [Line Items]
Total	349,271	349,271
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	382,140	382,140
Research equipment [Member]
Property, Plant and Equipment [Line Items]
Total	143,129	143,129
Software [Member]
Property, Plant and Equipment [Line Items]
Total	227,563	227,563
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total	94,356	94,356
Vehicles under capital lease [Member]
Property, Plant and Equipment [Line Items]
Total

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Intangible Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 86,730	$ 86,934

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Intangible Assets (Details) - Schedule of intangible assets - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Cost	$ 4,330,950
Accumulated Amortization	739,761
Impairment
Net carrying value	3,591,189	$ 3,677,919
Customer relationship and lists [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	2,930,829
Accumulated Amortization	504,181
Impairment
Net carrying value	2,426,648	2,490,024
Trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,400,121
Accumulated Amortization	235,580
Impairment
Net carrying value	$ 1,164,541	$ 1,187,895

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Intangible Assets (Details) - Schedule of estimated future amortization expense - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Schedule of estimated future amortization expense [Abstract]
2020	$ 260,191
2021	346,921
2022	346,921
2023	346,921
2024	346,921
Thereafter	1,943,314
Total	$ 3,591,189	$ 3,677,919

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Related Party Transactions (Details) - USD ($)															1 Months Ended												3 Months Ended		12 Months Ended
	Nov. 14, 2019	Nov. 14, 2019	Aug. 12, 2019	Aug. 02, 2019	Jul. 15, 2019	May 06, 2019	Apr. 13, 2019	Mar. 15, 2019	Dec. 03, 2018	Oct. 10, 2018	Jun. 07, 2018	Apr. 13, 2018	Dec. 15, 2017	Jul. 15, 2017	Nov. 30, 2019	Aug. 20, 2019	Jan. 24, 2019	Sep. 26, 2018	Aug. 21, 2018	Jul. 03, 2018	Feb. 27, 2018	Feb. 21, 2018	Feb. 16, 2018	Feb. 14, 2018	Nov. 30, 2017	Apr. 27, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 17, 2019	Aug. 16, 2019	Aug. 27, 2017
Related Party Transactions (Details) [Line Items]
Due to related parties																													$ 50,577
Acquiring percentage		60.00%
Description of promissory note						On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.				In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.										On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum.
Proceeds from issuance of promissory notes																														$ 85,000
Interest rate																											8.00%
Gain loss on settlement of debt																											$ (190,902)	$ 164,467
Debt instrument, interest rate terms, description																		the holder of the convertible promissory note entered into agreement to sell and assign a total of $75,000 of the outstanding principal to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the assigned note bore interest at 5% and the conversion price for the $75,000 of notes assigned was equal to the lesser 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. On December 3, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $50,000 of the outstanding principal to a third party.
ConversionOfStockAmountIssued1																											8,507,557
Aggregate principal amount																															$ 135,000
Fair value of the warrants																											838,062
Repaid loan amount																													164,468
Loan received in cash					$ 3,000,000
Additional loan received														$ 1,664,083
Adex [Member]
Related Party Transactions (Details) [Line Items]
Interest rate														8.00%
Outstanding principal amount																											217,400
Purchase price																													500,000
Repaid loan amount																													$ 57,600
WaveTech GmbH [Member]
Related Party Transactions (Details) [Line Items]
Acquiring percentage															60.00%
Outstanding principal amount																											$ 3,000,000
Aggregate principal amount																					$ 2,000,000
Loan received in cash	$ 1,325,895
Acquiring outstanding shares (in Shares)	0.60
Roger Ponden [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note																											Promissory note issued to Roger Ponder, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019
Keith Hayter [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note																											Promissory note issued to Keith Hayter, 10% interest, unsecured, matured on November 30, 2018 and extended to November 30, 2019
President [Member]
Related Party Transactions (Details) [Line Items]
Due date							Apr. 13, 2020
Bearing interest rate, per annum							10.00%
Keith Hayter 1 [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note																											Promissory note issued to Keith Hayter, 8% interest, unsecured, matured October 1, 2019
Keith Hayter 2 [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note																											Promissory note issued to Keith Hayter, 10% interest, unsecured, matures August 11, 2020
Inter Cloud [Member]
Related Party Transactions (Details) [Line Items]
Due to related parties																											$ 50,577
Chief Executive Officer [Member]
Related Party Transactions (Details) [Line Items]
Proceeds from issuance of promissory notes																									$ 18,858
Chief Executive Officer [Member] | Unsecured Debt [Member]
Related Party Transactions (Details) [Line Items]
Due date																									Nov. 30, 2018
Bearing interest rate, per annum																									10.00%
President [Member]
Related Party Transactions (Details) [Line Items]
Proceeds from issuance of promissory notes				$ 170,000															$ 80,000
Bearing interest rate, per annum			0.10%
President [Member] | Unsecured Debt [Member]
Related Party Transactions (Details) [Line Items]
Proceeds from issuance of promissory notes																									$ 130,000
President Two [Member]
Related Party Transactions (Details) [Line Items]
Bearing interest rate, per annum																			8.00%
Interest rate																10.00%
Debt Instrument, Maturity Date, Description																On August 20, 2019, the note was amended to a maturity date of October 1, 2019 and an interest rate of 10%.
President Two [Member] | Unsecured Debt [Member]
Related Party Transactions (Details) [Line Items]
Interest rate																													8.00%
President One [Member]
Related Party Transactions (Details) [Line Items]
Proceeds from issuance of promissory notes												$ 85,000
Bearing interest rate, per annum												8.00%
Keith Hayter [Member]
Related Party Transactions (Details) [Line Items]
Proceeds from issuance of promissory notes																													$ 0.08
Convertible Promissory Notes [Member]
Related Party Transactions (Details) [Line Items]
Due date																													Apr. 27, 2018
Bearing interest rate, per annum																													8.00%
Debt instrument, interest rate terms, description																										As a result of the assignment, the conversion price for the total of $354,375 of notes assigned was equal to the lesser 70% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00.
Fair value of the conversion feature																										$ 1,174,000							$ 348,000
Notes payable																										$ 943,299							$ 348,000
Outstanding principal amount								$ 100,000			$ 39,375		$ 105,000				$ 100,000					$ 105,000		$ 105,000
ConversionOfStockAmountIssued1																											$ 354,375
Loan received in cash														$ 3,000,000
Convertible Promissory Notes [Member] | Unsecured Debt [Member]
Related Party Transactions (Details) [Line Items]
Debt instrument, interest rate terms, description																										The interest on the outstanding principal due under the unsecured note accrued at a rate of 8% per annum. All principal and accrued interest under the unsecured note was due one year following the issue date of the unsecured note and was convertible into shares of common stock at a conversion price equal to 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion.
Convertible Promissory Notes [Member] | Inter Cloud [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note						On May 6, 2019, the remaining principal balance of $1,445,625 was converted into shares of the Company’s common stock through an automatic forced conversion.
Aggregate principal amount																													$ 55,124
Working capital adjustment																													$ 295,000
Convertible Promissory Notes [Member] | Inter Cloud [Member]
Related Party Transactions (Details) [Line Items]
Gain loss on settlement of debt																										$ 2,000,000
Convertible Note [Member] | Designated as Hedging Instrument [Member]
Related Party Transactions (Details) [Line Items]
Debt instrument, interest rate terms, description																							The note was originally due on August 16, 2019 and bore interest at 1% per annum. The note was convertible into common shares of the Company at a conversion price equal to the 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion.
Notes payable																					639,000
Base compensation																							$ 793,894
Aggregate principal amount																							$ 793,894									$ 793,894
Fair value of the warrants																					$ 2,455,000
Promissory note issued to Keith Hayter [Member]
Related Party Transactions (Details) [Line Items]
Bearing interest rate, per annum																													10.00%
Interest rate																											10.00%
Keith Hayter [Member] | President Two [Member]
Related Party Transactions (Details) [Line Items]
Bearing interest rate, per annum																													10.00%
Keith Hayter [Member] | President One [Member]
Related Party Transactions (Details) [Line Items]
Bearing interest rate, per annum																									10.00%
Convertible promissory note, InterCloud Systems, Inc. [Member]
Related Party Transactions (Details) [Line Items]
Description of promissory note																					The interest on the outstanding principal due under the ADEX note accrued at a rate of 6% per annum. All principal and accrued interest under the ADEX note was due one year following the issue date of the ADEX note and was convertible into shares of common stock at a conversion price equal to of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion, but in no event ever lower than $300 (the “Floor”), unless the note was in default, at which time the Floor would have terminated.
Debt instrument, interest rate terms, description									the holder of the convertible promissory note entered into agreement to sell and assign a total of $50,000 of the outstanding principal to a third party. The Company accounted for the assignments in accordance with ASC 470-50 “Modifications and Extinguishments”. In accordance with ASC 470-50, the Company accounted for the assignment as a debt extinguishment and adjusted the fair value of the derivative to its fair value on the assignment date.
WaveTech GmbH [Member]
Related Party Transactions (Details) [Line Items]
Bearing interest rate, per annum																													8.00%
Loan received in cash														$ 1,325,895
Additional loan received																													$ 10,022

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Related Party Transactions (Details) - Schedule of related party transactions - USD ($)	Mar. 31, 2020		Dec. 31, 2019
Related Party Transaction [Line Items]
Total	$ 701,258		$ 3,701,258
Promissory note issued to Roger Ponder [Member]
Related Party Transaction [Line Items]
Total	18,858		18,858
Promissory note issued to Keith Hayter [Member]
Related Party Transaction [Line Items]
Total	130,000		130,000
Promissory note issued to Keith Hayter One [Member]
Related Party Transaction [Line Items]
Total	85,000		85,000
Promissory note issued to Keith Hayter Two [Member]
Related Party Transaction [Line Items]
Total	80,000		80,000
Promissory note issued to Keith Hayter Three [Member]
Related Party Transaction [Line Items]
Total	170,000		170,000
Promissory note issued to InterCloud Systems, Inc. [Member]
Related Party Transaction [Line Items]
Total	217,400		217,400
Loan with WaveTech GmbH, [Member]
Related Party Transaction [Line Items]
Total		[1]	$ 3,000,000

[1] As of March 31, 2020, in connection with amounts owed to the Company from WaveTech GmbH, the loan with WaveTech GmbH is now being netted against amounts due from WaveTech GmbH (refer to Note 3, Due From Related Party, for additional detail).

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Related Party Transactions (Details) - Schedule of related party transactions (Parentheticals)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Promissory note issued to Roger Ponder [Member]
Related Party Transaction [Line Items]
Interest rate	10.00%
Promissory note issued to Keith Hayter [Member]
Related Party Transaction [Line Items]
Interest rate	10.00%
Promissory note issued to Keith Hayter One [Member]
Related Party Transaction [Line Items]
Interest rate	10.00%	8.00%
Maturity date	Apr. 13, 2020
Promissory note issued to Keith Hayter Two [Member]
Related Party Transaction [Line Items]
Interest rate	8.00%
Promissory note issued to Keith Hayter Three [Member]
Related Party Transaction [Line Items]
Interest rate	10.00%
Maturity date	Aug. 11, 2020
Loan with WaveTech GmbH, [Member]
Related Party Transaction [Line Items]
Interest rate	8.00%

XML

Loans Payable (Details) - USD ($)				1 Months Ended					3 Months Ended		12 Months Ended
	May 06, 2019	Jan. 04, 2019	Oct. 10, 2018	Jun. 18, 2020	May 08, 2020	Dec. 10, 2019	Aug. 16, 2019	Jul. 03, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Feb. 04, 2019	Dec. 31, 2018	Apr. 12, 2017	Mar. 31, 2012
Loans Payable (Details) [Line Items]
Common stock subscribed									$ 74,742		$ 74,742
Description of loan payable	On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.		In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.					On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum.
Interest payable prime rate, percentage			2.00%
Debt discount									39,409		280,174
Repaid on aggregate amount									51,847	$ 334,552
Principal amount									299,972			$ 1,325,895
Loan and Security Agreement [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party											3,122,638
Description of loan payable			Under the Loan and Security Agreement, the Borrower may borrow an aggregate outstanding amount not to exceed the lesser of up to (i) $5,000,000 or (ii) the Borrowing Base (as defined in the Loan and Security Agreement) through one or more advances through October 10, 2020 (the “Maturity Date”), subject to the Lender’s satisfactory annual review of the Borrower which is currently ongoing.
Debt discount											149,180
Received on aggregate amount									6,167,328		26,772,037
Repaid on aggregate amount									3,142,796		27,132,642
Repaid net amount											360,605
Loss on settlement of debt									149,180
Financing Agreement [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									0
Description of loan payable		Pursuant to the terms of the Financing Agreement, the Company agreed to pay Libertas $31,602 each week based upon an anticipated 20% of its future receivables until such time as $1,460,000 had been paid, a period Libertas and the Financing Parties estimated to be approximately eleven months.
Warrant [Member] | Loan and Security Agreement [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party													$ 3,483,015
Common stock subscribed			$ 150,000
Debt discount													$ (257,194)
Common Stock [Member] | Loan and Security Agreement [Member]
Loans Payable (Details) [Line Items]
Description of loan payable			the Company also issued a warrant to purchase 380 shares of the Company’s common stock at $375.00 per share for three years. The fair value of the warrants of $87,410 and $190,000 of debt issuance costs resulted in a discount to the note payable of $277,410
Promissory note issued to J. Thacker [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									41,361
Promissory note issued to 0738856 BC ltd [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									2,636
Promissory note issued to S. Kahn [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party											3,400
Promissory note issued to 0738856 BC ltd [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									15,000		15,000
Subscription amount due to T. Warkentin [Member]
Loans Payable (Details) [Line Items]
Common stock subscribed									50,000		50,000				$ 50,000
Common stock share subscriptions (in Shares)															167
Promissory note issued to Old Main Capital LLC [Member]
Loans Payable (Details) [Line Items]
Promissory note														$ 12,000
Subsequent Event [Member]
Loans Payable (Details) [Line Items]
Description of loan payable				the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share.
Promissory note issued to S. Kahn [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party											7,760
Promissory note issued to Bluekey Energy [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									7,500
Promissory note issued to Old Main Capital LLC [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									$ 12,000		12,000
Promissory note issued to Old Main Capital LLC [Member] | Unsecured Debt [Member]
Loans Payable (Details) [Line Items]
Interest rate									10.00%
Loan with Heritage Bank [Member]
Loans Payable (Details) [Line Items]
Description of loan payable									Loan with Heritage Bank of Commerce, interest rate of prime plus 2%, secured by all assets of the Company, matures October 20, 2020
Loan with Heritage Bank [Member] | Secured Debt [Member]
Loans Payable (Details) [Line Items]
Interest rate														2.00%
Loan with Libertas Funding LLC [Member]
Loans Payable (Details) [Line Items]
Debt discount									$ 11,260		31,365
Loan with Libertas Funding LLC [Member] | Financing Agreement [Member]
Loans Payable (Details) [Line Items]
Description of loan payable		Under the Financing Agreement, the Financing Parties sold to Libertas future receivables in an aggregate amount equal to $1,460,000 for a purchase price of $1,000,000.
Loan with WaveTech Global, Inc [Member]
Loans Payable (Details) [Line Items]
Maturity date									Apr. 28, 2019
Loan with C6 Capital [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									$ 0
Debt discount							$ 95,000		11,260
Loss on settlement of debt									1,490
Aggregate amount							337,500
Purchase price							250,000
Cash							$ 242,500
Original balance									156,696		180,804
Loan with Pawn Funding [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									71,719
Description of loan payable						Pursuant to the terms of the Financing Agreement, the Company agreed to pay Pawn Funding $4,219 each week based upon an anticipated 15% of its future receivables until such time as $135,000 has been paid, a period Pawn Funding and the Financing Parties estimate to be approximately eight months.
Aggregate amount						$ 135,000
Purchase price						100,000
Cash						97,000
Original balance									54,844		8,437
Debt discount						$ 38,000
Loan with RDM Capital Funding [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party									179,295
Description of loan payable						Pursuant to the terms of the Financing Agreement, the Company agreed to pay RDM Capital Funding $10,574 each week based upon an anticipated 3% of its future receivables until such time as $337,500 had been paid, a period RDM Capital Funding and the Financing Parties estimated to be approximately eight months.
Debt discount						$ 95,000			28,149
Aggregate amount						337,500
Purchase price						250,000
Cash						$ 242,500
Original balance									$ 137,111		21,094
Loan with RDM Capital Funding [Member] | Subsequent Event [Member]
Loans Payable (Details) [Line Items]
Cash discount					$ 62,652
Canada, Dollars | Promissory note issued to J. Thacker [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party											53,300
Canada, Dollars | Promissory note issued to S. Kahn [Member]
Loans Payable (Details) [Line Items]
Owed to a non-related party											$ 10,000

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Loans Payable (Details) - Schedule of loans payable - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Dividends Payable [Line Items]
Loans payable	$ 347,862	$ 3,578,386
Promissory note issued to J. Thacker [Member]
Dividends Payable [Line Items]
Loans payable	41,361	41,361
Promissory note issued to S. Kahn [Member]
Dividends Payable [Line Items]
Loans payable	7,760	7,760
Promissory note issued to 0738856 BC ltd [Member]
Dividends Payable [Line Items]
Loans payable	2,636	2,636
Promissory note issued to 0738856 BC Ltd [Member]
Dividends Payable [Line Items]
Loans payable	15,000	15,000
Promissory note issued to Bluekey Energy [Member]
Dividends Payable [Line Items]
Loans payable	7,500	7,500
Promissory note issued to Old Main Capital LLC [Member]
Dividends Payable [Line Items]
Loans payable	12,000	12,000
Promissory note issued to Pawn Funding [Member]
Dividends Payable [Line Items]
Loans payable	60,459	94,928
Promissory note issued to RDM Capital Funding [Member]
Dividends Payable [Line Items]
Loans payable	151,146	237,319
Promissory note issued to C6 Capital [Member]
Dividends Payable [Line Items]
Loans payable		136,424
Subscription amount due to T. Warkentin [Member]
Dividends Payable [Line Items]
Loans payable	$ 50,000	50,000
Loan with Heritage Bank of Commerce [Member]
Dividends Payable [Line Items]
Loans payable		$ 2,973,458

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Loans Payable (Details) - Schedule of loans payable (Parentheticals) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Promissory note issued to Pawn Funding [Member]
Dividends Payable [Line Items]
Debt discount	$ 11,260	$ 31,365
Promissory note issued to RDM Capital Funding [Member]
Dividends Payable [Line Items]
Debt discount	$ 28,149	79,087
Loan with Heritage Bank [Member] | Secured Debt [Member]
Dividends Payable [Line Items]
Debt discount		149,180
Promissory note issued to C6 Capital [Member]
Dividends Payable [Line Items]
Debt discount		$ 20,272

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Convertible Debentures (Details) - USD ($)								1 Months Ended																	3 Months Ended		12 Months Ended
		May 06, 2020	Feb. 07, 2020	Nov. 12, 2019	May 06, 2019	Oct. 10, 2018	Feb. 21, 2018	Jun. 18, 2020	Nov. 27, 2019	Nov. 21, 2019	Oct. 24, 2019	Oct. 22, 2019	Sep. 17, 2019	Sep. 01, 2019	Aug. 02, 2019	Apr. 17, 2019	Jan. 28, 2019	Jan. 28, 2019	Dec. 04, 2018	Sep. 26, 2018	Sep. 26, 2018	Jul. 03, 2018	May 18, 2018	Apr. 27, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jun. 26, 2020	Jun. 19, 2020	Jun. 09, 2020	Apr. 30, 2020	Sep. 30, 2019	Sep. 02, 2019	Jun. 01, 2019	Jan. 04, 2019	Jul. 31, 2018	Apr. 23, 2018	Aug. 27, 2017
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									8.00%
Debt Instrument, description					On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.	In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.																On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum.
Aggregate principal amount													$ 135,000
Exercise price (in Dollars per share)																									$ 7.80
Debt instrument, interest rate terms, description																				the holder of the convertible promissory note entered into agreement to sell and assign a total of $75,000 of the outstanding principal to a third party. The Company approved and was bound by the assignment and sale agreement. As a result of the assignment, the assigned note bore interest at 5% and the conversion price for the $75,000 of notes assigned was equal to the lesser 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00. On December 3, 2018, the holder of the convertible promissory note entered into agreement to sell and assign a total of $50,000 of the outstanding principal to a third party.
Fair value of the warrants																									$ 838,062
Derivative expenses	[1]																								2,063,063		$ 992,733
Additional paid-in capital																									34,174,562		25,255,291
Loss on settlement of debt																									(190,902)	$ 164,467
Principal note																											$ 47,731
Fair value of conversion feature																										308,000
original issue discount																									35,000	20,000
Stock Issued During Period, Value, New Issues																										$ 293,165
SCS, LLC [Member] | Unsecured Debt [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Convertible promissory note, maturity date																											Mar. 30, 2020
GS Capital Partners, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description															The secured note was convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price had a floor of $3.00 per share.
GS Capital Partners, LLC [Member] | Unsecured Debt [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																											8.00%
Dominion Capital Three [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description																The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note.
Aggregate principal amount																											$ 51,848
Convertible Note One [Member] | Barn [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																											25,000
Face owed amount																									$ 594,362
Convertible Note One [Member] | Barn [Member] | Derivative And Hedging [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									18.00%
Aggregate principal amount							$ 500,000
Issued shares of common stock (in Shares)							417
Exercise price (in Dollars per share)							$ 480.00
Debt instrument, interest rate terms, description							The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates.
Fair value of the conversion feature							$ 571,079
Fair value of the warrants							158,772
Notes payable							500,000
Derivative expenses							$ 229,851																											$ 466,000
Convertible Note One [Member] | Dominion Capital Two [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description																							During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note was originally due on August 2, 2020. The secured note was convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price had a floor of $3.00 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $28,000 resulted in an additional discount to the note payable of $28,000, for a total debt discount of $39,000. During the three months ended March 31, 2020, the holder of the note converted $23,000 of principal and $1,026 of accrued interest into shares of the Company’s common stock (refer to Note 11, Common Stock, for additional information). As a result of these conversions, the Company recorded a loss on settlement of debt of $40,232 to the unaudited condensed consolidated statement of operations for the three months ended March 31, 2020. At March 31, 2020, the Company owed $100,000 pursuant to this agreement and was to record accretion equal to the debt discount of $13,891 over the remaining term of the note. On April 30, 2020, the holder of the note converted the remaining $100,000 of principal and $5,742 of accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, GS Capital Partners, LLC, 8% interest, unsecured, matures October 24, 2020 On October 24, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on October 24, 2020. The note is convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price has a floor of $3.00 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $20,000 resulted in an additional discount to the note payable of $20,000, for a total debt discount of $31,000. At March 31, 2020, the Company owed $123,000 pursuant to this agreement and will record accretion equal to the debt discount of $16,778 over the remaining term of the note. Convertible promissory note, SCS, LLC, 8% interest, unsecured, matured March 30, 2020 On September 1, 2019, the Company entered into and closed on a Securities Purchase Agreement with SCS, LLC, pursuant to which the Company issued to SCS, LLC an unsecured convertible promissory note in the aggregate principal amount of $51,030 in exchange for rent. The interest on the outstanding principal due under the unsecured note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note and has a maturity date of March 30, 2020. The secured note is convertible into shares of the Company’s common stock at 75% of the lowest average VWAP in the 15 trading days prior to the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $29,000 resulted in a discount to the note payable of $29,000. The note matured on March 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $12,758. The interest also increased from 8% per annum to 24% per annum. At March 31, 2020, the Company owed $63,788 pursuant to this agreement. On June 19, 2020, the holder of the note began converting principal and accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020 On September 17, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $148,000 for an aggregate purchase price of $135,000. The Company received the cash on October 1, 2019. The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $159,000 resulted in an additional discount to the note payable of $135,000, for a total debt discount of $148,000. The remaining $24,000 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019. At March 31, 2020, the Company owed $148,000 pursuant to this agreement and was to record accretion equal to the debt discount of $75,861 over the remaining term of the note. On April 1 2020, the holder of the note began converting principal into shares of the Company’s common stock. Between that date and June 9, 2020, the holder of the note converted the full principal amount of the note along with the accrued interest (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021 On October 22, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $68,500 for an aggregate purchase price of $60,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on January 22, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $56,000 resulted in an additional discount to the note payable of $56,000, for a total debt discount of $64,500. At March 31, 2020, the Company owed $68,500 pursuant to this agreement and will record accretion equal to the debt discount of $40,751 over the remaining term of the note. On June 9, 2020, the holder of the note began converting principal into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021 On November 27, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $58,000 for an aggregate purchase price of $50,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on February 26, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $43,000 resulted in an additional discount to the note payable of $43,000, for a total debt discount of $51,000. At March 31, 2020, the Company owed $58,000 pursuant to this agreement and will record accretion equal to the debt discount of $35,417 over the remaining term of the note. Convertible promissory note, Crown Bridge Partners, LLC, 10% interest, unsecured, matures November 21, 2020 On November 12, 2019, the Company entered into and closed on a Securities Purchase Agreement with Crown Bridge Partners, LLC, pursuant to which the Company issued to Crown Bridge Partners, LLC a convertible promissory note in the aggregate principal amount of $225,000 for an aggregate purchase price of $202,500. The Company received the first tranche of $75,000 on November 21, 2019 for an aggregate purchase price of $65,500. The Company also issued a warrant equal to the face amount of the note with a term of three years to purchase 2,500 shares of common stock at an exercise price of $30.00 per share. The interest on the outstanding principal due under the first tranche of the note accrues at a rate of 10% per annum. All principal and accrued but unpaid interest under the first tranche of the note is due on November 21, 2020. The first tranche of the note is convertible into shares of the Company’s common stock at 60% of the average of the three lowest VWAPs in the 20 trading days prior to and including the conversion date. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion option feature of $138,000 and warrant feature of $20,138 resulted in an additional discount to the note payable of $65,500, for a total debt discount of $75,000. The remaining $92,638 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019. At March 31, 2020, the Company owed $75,000 pursuant to this agreement and will record accretion equal to the debt discount of $46,898 over the remaining term of the note. Convertible promissory note, CCAG Investments, LLC, 20% interest, secured, matures June 30, 2020 On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with CCAG Investments, LLC, pursuant to which the Company issued to CCAG Investments, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share. The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. In connection with the issuance of the note, the Company also issued to CCAG Investments, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail). The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000. The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance. On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, FJ Vulis and Associates LLC, 20% interest, secured, matures June 30, 2020 On February 7, 2020, the Company entered into and closed on a Securities Purchase Agreement with FJ Vulis and Associates, LLC, pursuant to which the Company issued to FJ Vulis and Associates, LLC a secured convertible redeemable note in the aggregate principal amount of $175,000 for an aggregate purchase price of $157,500, resulting in an original issue discount of $17,500. The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share. The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. In connection with the issuance of the note, the Company also issued to FJ Vulis and Associates, LLC 9,755 shares of common stock (refer to Note 11, Common Stock, for additional detail). The embedded conversion option and warrants issued qualified for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature and warrants issued was $42,000 and $64,000, resulting in an additional discount to the note payable of $106,000. The shares issued with the note were valued at $51,500, for a total debt discount of $175,000. The Company had the option of repaying 120% of the principal balance if paid within 90 days of issuance, or 125% of the principal if paid greater than 90 days after issuance. On May 6, 2020, the Company repaid 120% of the principal balance (refer to Note 17, Subsequent Events, for additional detail).
Convertible Note One [Member] | Dominion Capital Two [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, Interest Rate, Effective Percentage																							8.00%
Convertible Note Five [Member] | SCS, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description																					The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement.
Aggregate principal amount																																	$ 100,000
Accrued interest, percentage																									8.00%
Convertible Note Five [Member] | GS Capital Partners, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Face owed amount																									$ 123,000
Convertible debentures, net of discount																									16,778
Convertible Note Four [Member] | GS Capital Partners, LLC [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																									23,000
Accrued interest																									1,026
Loss on settlement of debt																									$ 40,232
Convertible Note Four [Member] | GS Capital Partners, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate															15.00%										8.00%
Debt Instrument, description											All principal and accrued but unpaid interest under the note is due on October 24, 2020. The note is convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price has a floor of $3.00 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $20,000 resulted in an additional discount to the note payable of $20,000, for a total debt discount of $31,000. At March 31, 2020, the Company owed $123,000 pursuant to this agreement and will record accretion equal to the debt discount of $16,778 over the remaining term of the note. Convertible promissory note, SCS, LLC, 8% interest, unsecured, matured March 30, 2020 On September 1, 2019, the Company entered into and closed on a Securities Purchase Agreement with SCS, LLC, pursuant to which the Company issued to SCS, LLC an unsecured convertible promissory note in the aggregate principal amount of $51,030 in exchange for rent. The interest on the outstanding principal due under the unsecured note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note and has a maturity date of March 30, 2020. The secured note is convertible into shares of the Company’s common stock at 75% of the lowest average VWAP in the 15 trading days prior to the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $29,000 resulted in a discount to the note payable of $29,000. The note matured on March 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $12,758. The interest also increased from 8% per annum to 24% per annum. At March 31, 2020, the Company owed $63,788 pursuant to this agreement. On June 19, 2020, the holder of the note began converting principal and accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020 On September 17, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $148,000 for an aggregate purchase price of $135,000. The Company received the cash on October 1, 2019. The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $159,000 resulted in an additional discount to the note payable of $135,000, for a total debt discount of $148,000. The remaining $24,000 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019. At March 31, 2020, the Company owed $148,000 pursuant to this agreement and was to record accretion equal to the debt discount of $75,861 over the remaining term of the note. On April 1 2020, the holder of the note began converting principal into shares of the Company’s common stock. Between that date and June 9, 2020, the holder of the note converted the full principal amount of the note along with the accrued interest (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021 On October 22, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $68,500 for an aggregate purchase price of $60,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on January 22, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $56,000 resulted in an additional discount to the note payable of $56,000, for a total debt discount of $64,500. At March 31, 2020, the Company owed $68,500 pursuant to this agreement and will record accretion equal to the debt discount of $40,751 over the remaining term of the note. On June 9, 2020, the holder of the note began converting principal into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021 On November 27, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $58,000 for an aggregate purchase price of $50,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum.				The secured note was convertible into shares of the Company’s common stock at 71% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date. The conversion price had a floor of $3.00 per share.
Aggregate principal amount											$ 123,000
Notes payable											20,000				$ 28,000
Convertible promissory note, maturity date																									Aug. 02, 2020
Convertible debentures, net of discount											31,000				39,000										$ 13,891
Fair value of conversion feature											20,000				$ 28,000
Aggregate purchase price											$ 112,000
Convertible Note Two [Member] | Silverback [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate terms, description																			to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum.
Convertible Note Two [Member] | Dominion Capital Three [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									12.00%
Debt Instrument, description																									The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments.
Aggregate principal amount																$ 1,571,134									$ 51,848
Accrued interest, percentage																12.00%
Convertible promissory note, maturity date																									Oct. 17, 2020
Additional paid-in capital																											314,228
Loss on settlement of debt																											$ 904,469
Convertible Note Two [Member] | Michael Roeske [Member] | TNS, Inc. [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																	$ 186,000	$ 186,000
Convertible Note Two [Member] | InterCloud Systems, Inc. [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																																			$ 620,000
Convertible Note Two [Member] | TNS, Inc. [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																																			0.25
Convertible Note Two [Member] | TNS, Inc. [Member] | Derivative And Hedging [Member]
Convertible Debentures (Details) [Line Items]
Notes payable																																			$ 144,000
Convertible Promissory Notes [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate terms, description																								As a result of the assignment, the conversion price for the total of $354,375 of notes assigned was equal to the lesser 70% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion and $2,400.00.
Fair value of the conversion feature																								$ 1,174,000														$ 348,000
Notes payable																								$ 943,299														$ 348,000
Convertible promissory note, maturity date																											Apr. 27, 2018
Convertible Promissory Notes [Member] | Unsecured Debt [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate terms, description																								The interest on the outstanding principal due under the unsecured note accrued at a rate of 8% per annum. All principal and accrued interest under the unsecured note was due one year following the issue date of the unsecured note and was convertible into shares of common stock at a conversion price equal to 75% of the lowest volume-weighted average price during the 15 trading days immediately preceding the date of conversion.
Convertible Promissory Notes [Member] | Dominion Capital Two [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Accrued interest, percentage																																					619362.00%
Fixed conversion price (in Dollars per share)																																					$ 24,000
Convertible Note Seven [Member] | GS Capital Partners, LLC [Member]
Convertible Debentures (Details) [Line Items]
Notes payable																																$ 40,751
Convertible Note Seven [Member] | Power Up Lending Group LTD [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description												The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $29,000 resulted in a discount to the note payable of $29,000. The note matured on March 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $12,758. The interest also increased from 8% per annum to 24% per annum. At March 31, 2020, the Company owed $63,788 pursuant to this agreement. On June 19, 2020, the holder of the note began converting principal and accrued interest into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures September 17, 2020 On September 17, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $148,000 for an aggregate purchase price of $135,000. The Company received the cash on October 1, 2019. The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $159,000 resulted in an additional discount to the note payable of $135,000, for a total debt discount of $148,000. The remaining $24,000 of the initial fair value of the conversion feature was recorded as initial derivative expense on the consolidated statement of operations for the year ended December 31, 2019. At March 31, 2020, the Company owed $148,000 pursuant to this agreement and was to record accretion equal to the debt discount of $75,861 over the remaining term of the note. On April 1 2020, the holder of the note began converting principal into shares of the Company’s common stock. Between that date and June 9, 2020, the holder of the note converted the full principal amount of the note along with the accrued interest (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures January 22, 2021 On October 22, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $68,500 for an aggregate purchase price of $60,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on January 22, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price has a floor of $1.50 per share. The embedded conversion option qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $56,000 resulted in an additional discount to the note payable of $56,000, for a total debt discount of $64,500. At March 31, 2020, the Company owed $68,500 pursuant to this agreement and will record accretion equal to the debt discount of $40,751 over the remaining term of the note. On June 9, 2020, the holder of the note began converting principal into shares of the Company’s common stock (refer to Note 17, Subsequent Events, for additional detail). Convertible promissory note, Power Up Lending Group LTD., 8% interest, unsecured, matures February 26, 2021 On November 27, 2019, the Company entered into and closed on a Securities Purchase Agreement with Power Up Lending Group LTD. (“Power Up Lending”), pursuant to which the Company issued to Power Up Lending a convertible promissory note in the aggregate principal amount of $58,000 for an aggregate purchase price of $50,000. The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on February 26, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date.
Notes payable												$ 56,000
Total debt discount												64,500
Convertible Note Seven [Member] | Power Up Lending Group LTD [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount									$ 75,000
Face owed amount																											$ 0.14
Aggregate purchase price									$ 65,500
Convertible Note Three [Member] | SCS, LLC [Member]
Convertible Debentures (Details) [Line Items]
Face owed amount																											63,788
Convertible Note Three [Member] | Michael Roeske [Member]
Convertible Debentures (Details) [Line Items]
Accrued interest, percentage																	8.00%	8.00%
Face owed amount																									$ 145,000		1,562,901
Convertible debentures, net of discount																											$ 50,443
Convertible Note Three [Member] | Michael Roeske [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									6.00%
Convertible promissory note, maturity date																									Jan. 30, 2020
Convertible Note Three [Member] | Michael Roeske [Member] | TNS, Inc. [Member]
Convertible Debentures (Details) [Line Items]
Accrued interest, percentage																	6.00%	6.00%
Convertible Note Three [Member] | M2B Funding [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																																				6.00%
Convertible note principal amount																						$ 70,000
Convertible Note Three [Member] | Joel Raven [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									6.00%
Aggregate principal amount																	$ 434,000	$ 434,000
Accrued interest, percentage																	6.00%	6.00%
Face owed amount																									$ 455,000
Convertible promissory note, maturity date																									Jan. 30, 2020
Accrued interest maturity date																	Jan. 30, 2020	Jan. 30, 2020
Convertible Note Three [Member] | M2B Funding One [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Convertible note principal amount																																$ 70,000
Convertible Note Six [Member] | SCS, LLC [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																									$ 12,758
Convertible Note Six [Member] | SCS, LLC [Member] | Maximum [Member]
Convertible Debentures (Details) [Line Items]
Accrued interest, percentage																									24.00%
Convertible Note Six [Member] | SCS, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description														The interest on the outstanding principal due under the unsecured note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the secured note and has a maturity date of March 30, 2020. The secured note is convertible into shares of the Company’s common stock at 75% of the lowest average VWAP in the 15 trading days prior to the conversion date. The conversion price has a floor of $1.50 per share.
Notes payable														$ 29,000
Convertible Note Six [Member] | Power Up Lending Group LTD [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																											8.00%
Convertible debentures, net of discount																											$ 75,861
Convertible Note Six [Member] | Power Up Lending Group LTD [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																											8.00%
Debt Instrument, description									The interest on the outstanding principal due under the note accrues at a rate of 8% per annum. All principal and accrued but unpaid interest under the note is due on February 26, 2021. The note is convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date.				The interest on the outstanding principal due under the note accrued at a rate of 8% per annum. All principal and accrued but unpaid interest under the note was originally due on September 17, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 15 trading days prior to and including the conversion date. The conversion price had a floor of $1.50 per share.
Aggregate principal amount												58,000	$ 148,000
Notes payable									$ 43,000
Face owed amount																									$ 58,000
Convertible debentures, net of discount									51,000				$ 148,000												35,417
Fair value of conversion feature									$ 43,000
Aggregate purchase price												$ 50,000
Convertible Note Six [Member] | Crown Bridge Partners, LLC [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description				The interest on the outstanding principal due under the first tranche of the note accrues at a rate of 10% per annum. All principal and accrued but unpaid interest under the first tranche of the note is due on November 21, 2020. The first tranche of the note is convertible into shares of the Company’s common stock at 60% of the average of the three lowest VWAPs in the 20 trading days prior to and including the conversion date.
Convertible Note Six [Member] | Crown Bridge Partners, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description				The interest on the outstanding principal due under the first tranche of the note accrues at a rate of 10% per annum. All principal and accrued but unpaid interest under the first tranche of the note is due on November 21, 2020. The first tranche of the note is convertible into shares of the Company’s common stock at 60% of the average of the three lowest VWAPs in the 20 trading days prior to and including the conversion date.
Aggregate principal amount				$ 225,000										$ 51,030
Notes payable																									$ 65,500
Accrued interest, percentage																									10.00%
Convertible debentures, net of discount																									$ 75,000
Fair value of conversion feature																									138,000		$ 92,638
Aggregate purchase price				$ 202,500
Shares issued (in Shares)										2,500
Exercise price (in Dollars per share)										$ 30.00
Fair value of warrant feature																									$ 20,138
Convertible Note Six [Member] | CCAG Investments, LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description			The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.
Aggregate principal amount			$ 175,000
Fair value of the warrants			64,000
Notes payable			106,000
Convertible promissory note, maturity date																									Jun. 30, 2020
Convertible debentures, net of discount			175,000
Fair value of conversion feature			42,000
Aggregate purchase price			157,500
original issue discount			17,500
Stock Issued During Period, Value, New Issues			$ 51,500
Warrant issued, description			The Company also issued a warrant equal to 50% of the face amount of the note with a term of three years to purchase 9,723 shares of common stock at an initial exercise price of $9.00 per share.
Convertible Note Six [Member] | CCAG Investments, LLC [Member] | Convertible Note Six [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate																									20.00%
Convertible Note Six [Member] | FJ Vulis and Associates LLC [Member] | Securities Purchase Agreement One [Member]
Convertible Debentures (Details) [Line Items]
Debt instrument, interest rate			20.00%
Debt Instrument, description			The interest on the outstanding principal due under the note accrued at a rate of 20% per annum. All principal and accrued but unpaid under the secured note was originally due on June 30, 2020. The note was convertible into shares of the Company’s common stock at 70% of the average of the three lowest VWAPs in the 12 trading days prior to and including the conversion date.
Aggregate principal amount			$ 175,000
Fair value of the warrants			64,000
Notes payable			$ 106,000
Convertible promissory note, maturity date			Jun. 30, 2020
Convertible debentures, net of discount			$ 175,000
Fair value of conversion feature			42,000
Aggregate purchase price			157,500
original issue discount			17,500
Issuance of common stock			$ 51,500
Subsequent Event [Member]
Convertible Debentures (Details) [Line Items]
Debt Instrument, description								the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share.
Subsequent Event [Member] | GS Capital Partners, LLC [Member]
Convertible Debentures (Details) [Line Items]
Convertible note principal amount																															$ 5,742
Subsequent Event [Member] | Power Up Lending Group LTD [Member]
Convertible Debentures (Details) [Line Items]
Convertible note principal amount																												$ 2,540	$ 240	$ 5,520
Subsequent Event [Member] | Convertible Note Four [Member] | GS Capital Partners, LLC [Member]
Convertible Debentures (Details) [Line Items]
Aggregate principal amount																															100,000
Accrued interest																															$ 5,742
Subsequent Event [Member] | Convertible Note Six [Member]
Convertible Debentures (Details) [Line Items]
Principal repayment, percentage		120.00%

[1] The Company has estimated the fair value of these derivatives using the Monte-Carlo model and/or a Binomial Model.

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Convertible Debentures (Details) - Schedule of convertible promissory note - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	$ 3,242,205	$ 2,837,679
Less: Long-term portion of convertible debentures, net of debt discount		(28,324)
Convertible debentures, current portion, net of debt discount	3,242,205	2,809,355
Convertible Note [Member] | Barn [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	594,362	594,362
Convertible Note [Member] | Dominion Capital Three [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	1,512,458	1,461,265
Convertible Note [Member] | Michael Roeske [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	145,000	112,488
Convertible Note [Member] | Joel Raven [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	455,000	355,342
Convertible Note [Member] | GS Capital Partners LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	86,109	98,181
Convertible Note [Member] | SCS, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	63,788	38,025
Convertible Note [Member] | Power Up Lending Group LTD [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	72,139	34,326
Convertible Note [Member] | Power Up Lending Group LTD One [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	27,750	15,449
Convertible Note [Member] | Power Up Lending Group LTD Two [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	22,583	12,875
Convertible Note [Member] | GS Capital Partners, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	106,222	99,014
Convertible Note [Member] | Crown Bridge Partners [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	28,102	$ 16,352
Convertible Note [Member] | CCAG Investments, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	64,346
Convertible Note [Member] | FJ Vulis and Associates LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note [Line Items]
Convertible promissory note	$ 64,346

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Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) - Convertible Note [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Barn [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	18.00%	18.00%
Debt instrument maturity date	Jun. 01, 2019	Jun. 01, 2019
Dominion Capital Three [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	12.00%	12.00%
Debt instrument maturity date	Oct. 17, 2020	Oct. 17, 2020
Convertible debentures, net of discount (in Dollars)	$ 50,443	$ 105,752
Michael Roeske [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	24.00%	24.00%
Convertible debentures, net of discount (in Dollars)	$ 0	$ 3,512
Joel Raven [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	24.00%	24.00%
Convertible debentures, net of discount (in Dollars)	$ 0	$ 8,658
GS Capital Partners LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Aug. 02, 2020	Aug. 02, 2020
Convertible debentures, net of discount (in Dollars)	$ 13,891	$ 24,819
SCS, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	24.00%	24.00%
Debt instrument maturity date	Mar. 30, 2020	Mar. 30, 2020
Convertible debentures, net of discount (in Dollars)	$ 0	$ 13,005
Power Up Lending Group LTD [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Sep. 17, 2020	Sep. 17, 2020
Convertible debentures, net of discount (in Dollars)	$ 75,861	$ 113,674
Power Up Lending Group LTD One [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Jan. 22, 2021	Jan. 22, 2021
Convertible debentures, net of discount (in Dollars)	$ 40,750	$ 53,051
Power Up Lending Group LTD Two [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Feb. 26, 2021	Feb. 26, 2021
Convertible debentures, net of discount (in Dollars)	$ 35,417	$ 45,125
GS Capital Partners, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	18.00%	18.00%
Debt instrument maturity date	Oct. 24, 2020	Oct. 24, 2020
Convertible debentures, net of discount (in Dollars)	$ 16,778	$ 23,986
Crown Bridge Partners [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	10.00%	10.00%
Debt instrument maturity date	Nov. 21, 2020	Nov. 21, 2020
Convertible debentures, net of discount (in Dollars)	$ 46,898	$ 58,648
CCAG Investments, LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Jun. 30, 2020	Jun. 30, 2020
Convertible debentures, net of discount (in Dollars)	$ 110,654
FJ Vulis and Associates LLC [Member]
Convertible Debentures (Details) - Schedule of convertible promissory note (Parentheticals) [Line Items]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument maturity date	Jun. 30, 2020	Jun. 30, 2020
Convertible debentures, net of discount (in Dollars)	$ 110,654

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Factor Financing (Details) - USD ($)		3 Months Ended		12 Months Ended
	Feb. 11, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Factor Financing (Details) [Line Items]
Amount from bay view funding	$ 3,024,532
Other Loans Payable, Current	$ 5,000,000
Proceeds from factoring financing		$ 4,685,390
Repayment of factor financing				$ 164,468
Factor financing owned		2,844,381
Adex [Member]
Factor Financing (Details) [Line Items]
Factor agreement, description	the Company’s ADEX subsidiary may borrow up to the lesser of $5,000,000 or an amount equal to the sum of all undisputed purchased receivables multiplied by the advance percentage, less any funds in reserve. ADEX will pay to Bay View Funding a factoring fee upon purchase of receivables by Bay View Funding equal to 0.75% of the gross face value of the purchased receivable for the first 30 day period from the date said purchased receivable is first purchased by Bay View Funding, and a factoring fee of 0.35% per 15 days thereafter until the date said purchased receivable is paid in full or otherwise repurchased by ADEX or otherwise written off by Bay View Funding within the write off period. ADEX will also pay a finance fee to Bay View Funding on the outstanding advances under the agreement at a floating rate per annum equal to the Prime Rate plus 3%. The finance rate will increase or decrease monthly, on the first day of each month, by the amount of any increase or decrease in the Prime Rate, but at no time will the finance fee be less than 7.75%.
Repayment of factor financing				$ 57,600
Factoring Agreement [Member]
Factor Financing (Details) [Line Items]
Proceeds from factoring financing		4,685,390
Repayment of factor financing		1,841,858
Factor financing owned		$ 2,844,381

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Derivative Liabilities (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities description	As of March 31, 2020, the derivative liability balance of $2,063,062 was comprised of $1,225,000 of derivatives related to the Company’s convertible debentures, and $838,062 of derivatives related to the Company’s share purchase warrants and stock options.	As of December 31, 2019, the derivative liability balance of $992,733 was comprised of $801,000 of derivatives related to the Company’s convertible debentures, and $191,732 of derivatives related to the Company’s share purchase warrants and stock options.

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Derivative Liabilities (Details) - Schedule of changes in the fair value of the Company's Level 3 financial liabilities - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Schedule of changes in the fair value of the Company's Level 3 financial liabilities [Abstract]
Balance at the beginning of the period	$ 992,733	$ 3,166,886
Change in fair value of embedded conversion option	813,630	(1,843,935)
Fair value of debt derivatives at issuance	84,000
Fair value of warrant derivatives at issuance	128,000
Fair value of option derivatives at issuance	44,700
Conversion of derivative liability		(1,281,888)
Original discount limited to proceeds of notes		376,500
Repayment of convertible note		(164,468)
Derivative issued as part of acquisition		189,000
Fair value of derivative liabilities in excess of notes proceeds received		116,638
Addition to derivative due to default penalty		466,000
Impact of note extinguishment		(32,000)
Balance at the end of the period	$ 2,063,063	$ 992,733

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Derivative Liabilities (Details) - Schedule of assumptions used in the calculations	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected volatility	193.00%	230.00%
Risk-free interest rate	0.04%	1.55%
Expected life (in years)	29 days	3 months
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expected volatility	361.00%	304.00%
Risk-free interest rate	1.75%	1.75%
Expected life (in years)	2 years 310 days	1 year 58 days

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Common Stock (Details) - Common Stock [Member] - USD ($)						1 Months Ended	3 Months Ended
	Mar. 13, 2020	Feb. 12, 2020	Feb. 11, 2020	Feb. 07, 2020	Jan. 07, 2020	Feb. 18, 2020	Mar. 31, 2020	Mar. 31, 2019	Nov. 15, 2017
Common Stock (Details) [Line Items]
Treasury stock common shares							2,071
Treasury stock common value (in Dollars)							$ 277,436
Common stock issued for services								9,565
Minimum [Member]
Common Stock (Details) [Line Items]
Common stock, shares authorized									275,000,000
Common stock par value (in Dollars per share)									$ 0.00001
Maximum [Member]
Common Stock (Details) [Line Items]
Common stock, shares authorized									750,000,000
Common stock par value (in Dollars per share)									$ 0.00001
CCAG Investments, LLC [Member]
Common Stock (Details) [Line Items]
Common stock, shares issued				9,755
FJ Vulis and Associates, LLC [Member]
Common Stock (Details) [Line Items]
Common stock, shares issued				9,755
GS Capital Partners, LLC Convertible Debentures [Member]
Common Stock (Details) [Line Items]
Common stock, shares issued	11,212	1,647
Conversion of principal amount (in Dollars)	$ 15,000	$ 8,000
Accrued interest (in Dollars)	$ 703	$ 323
WaveTech GmbH Post-Closing Notes [Member]
Common Stock (Details) [Line Items]
Common stock, shares issued						1,082,731
Conversion of principal amount (in Dollars)						$ 8,507,557
Series A Preferred Stock [Member]
Common Stock (Details) [Line Items]
Common stock issued for services			2,778		1,112
Conversion of shares			25,000		10,000
Stated value per share (in Dollars per share)			$ 1		$ 1

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Preferred Stock (Details) - USD ($)			1 Months Ended				12 Months Ended
	Apr. 08, 2020	Nov. 14, 2019	Jun. 18, 2020	Aug. 16, 2019	Oct. 29, 2018	Apr. 16, 2018	Dec. 31, 2019	Mar. 31, 2020	Nov. 15, 2017
Preferred Stock (Details) [Line Items]
Conversion rights, description	the Company made the third amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price and the conversion price floor to $3.00 per share (refer to Note 17, Subsequent Events, for additional detail).		the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share (refer to Note 17, Subsequent Events, for additional detail).
Stated value per share						$ 3,500
Series B preferred stock voting, description						The holders of shares of Series B preferred stock shall be voted together with the shares of common stock such that the aggregate voting power of the Series B preferred stock is equal to 51% of the total voting power of the Company.
Common stock, par value							$ 0.00001	$ 0.00001
Series A Preferred Stock [Member]
Preferred Stock (Details) [Line Items]
Preferred stock, shares authorized (in Shares)							8,000,000	8,000,000	20,000,000
Preferred stock shares designated (in Shares)									8,000,000
Preferred stock conversion, description					the Company made the first amendment to the Certificate of Designation of its Series A convertible preferred stock. This amendment updated the conversion price to be equal to the greater of 75% of the lowest VWAP during the ten trading day period immediately preceding the date a conversion notice is delivered or $120.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock.
Preferred stock deemed dividend (in Dollars)							$ 488,072
Conversion rights, description				The number of shares of common stock into which each share of the Series A preferred stock shares may be converted shall be determined by dividing the sum of the stated value of the Series A preferred stock shares ($1.00 per share) being converted and any accrued and unpaid dividends by the conversion price in effect at the time of the conversion. The Series A preferred stock shares may be converted at an initial conversion price of the lower of 80% of the lowest VWAP during the five trading day period immediately preceding the date a conversion notice is delivered or $15.00, subject to adjustment for any subdivision or combination of the Company’s outstanding shares of common stock. The conversion price has a floor of $9.00 per share.
Preferred stock, stated value							$ 0.00001	$ 0.00001
Series B Preferred Stock [Member]
Preferred Stock (Details) [Line Items]
Preferred stock, shares authorized (in Shares)							1,000	1,000
Preferred stock shares designated (in Shares)						1,000
Stated value per share						$ 3,500		$ 3,500
Preferred stock, stated value							$ 3,500	3,500
Series C Preferred Stock [Member]
Preferred Stock (Details) [Line Items]
Preferred stock shares designated (in Shares)		9,000,000
Conversion rights, description		(i) $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below), or (ii) the Aggregate Value/$9.75 (as adjusted for any reverse stock split or similar adjustment that may occur prior to the Series C Conversion Date). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any Losses (as defined below).
Stated value per share		$ 0.00001						$ 0.00001
Preferred stock, stated value		$ 0.00001

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Share Purchase Warrants and Stock Options (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share Purchase Warrants [Abstract]
Fair Value Adjustment of Warrants	$ 838,062
Proceeds from Stock Options Exercised		$ 191,732
Percentage of warrant convertible shares	4.00%
Shares outstanding	1,312,634
Share purchase warrants	1 year 219 days	1 year 109 days

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Share Purchase Warrants and Stock Options (Details) - Schedule of share purchase warrants	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Schedule of share purchase warrants [Abstract]
Number of warrants, Beginning Balance | shares	14,075
Weighted average exercise price, Beginning Balance | $ / shares	$ 331.46
Number of warrants, Issued | shares	64,134
Weighted average exercise price, Issued | $ / shares	$ 253.57
Number of warrants, Expired | shares
Weighted average exercise price, Expired | $ / shares
Number of warrants, Ending Balance | shares	78,209
Weighted average exercise price, Ending Balance | $ / shares	$ 267.59

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Share Purchase Warrants and Stock Options (Details) - Schedule of share purchase warrants outstanding	3 Months Ended
	Mar. 31, 2020 shares
Class of Warrant or Right [Line Items]
Number of warrants	78,209
Warrant Expiry Date [Member]
Class of Warrant or Right [Line Items]
Number of warrants	459
Exercise Price	1,530.00
Issuance Date	28-04-2017
Expiry date	28-04-2020
Warrant Expiry Date One [Member]
Class of Warrant or Right [Line Items]
Number of warrants	834
Exercise Price	300.00
Issuance Date	27-06-2017
Expiry date	27-06-2020
Warrant Expiry Date Two [Member]
Class of Warrant or Right [Line Items]
Number of warrants	52,506	[1]
Exercise Price	360.00
Issuance Date	14-02-2018
Expiry date	13-02-2021
Warrant Expiry Date Three [Member]
Class of Warrant or Right [Line Items]
Number of warrants	417
Exercise Price	480.00
Issuance Date	21-02-2018
Expiry date	21-02-2021
Warrant Expiry Date Four [Member]
Class of Warrant or Right [Line Items]
Number of warrants	1,667
Exercise Price	300.00
Issuance Date	17-05-2018
Expiry date	17-05-2020
Warrant Expiry Date Five [Member]
Class of Warrant or Right [Line Items]
Number of warrants	380
Exercise Price	324.00
Issuance Date	10-10-2018
Expiry date	10-10-2021
Warrant Expiry Date Six [Member]
Class of Warrant or Right [Line Items]
Number of warrants	2,500
Exercise Price	30.00
Issuance Date	21-11-2019
Expiry date	21-11-2022
Warrant Expiry Date Seven [Member]
Class of Warrant or Right [Line Items]
Number of warrants	9,723
Exercise Price	9.00
Issuance Date	07-02-2020
Expiry date	07-02-2023
Warrant Expiry Date Eight [Member]
Class of Warrant or Right [Line Items]
Number of warrants	9,723
Exercise Price	9.00
Issuance Date	07-02-2020
Expiry date	07-02-2023

[1] This warrant is convertible into 4% of the number of common shares of the Company outstanding. At March 31, 2020, it is 4% of the 1,312,634 shares outstanding as of that date.

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Share Purchase Warrants and Stock Options (Details) - Schedule of activity of stock options	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Schedule of activity of stock options [Abstract]
Number of stock options, Beginning Balance | shares	5,000
Weighted average exercise price, Beginning Balance | $ / shares	$ 9.00
Number of stock options, Issued | shares
Weighted average exercise price, Issued | $ / shares
Number of stock options, Expired | shares
Weighted average exercise price, Expired | $ / shares
Number of stock options, Ending Balance | shares	5,000
Weighted average exercise price, Ending Balance | $ / shares	$ 9.00

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Share Purchase Warrants and Stock Options (Details) - Schedule of stock options outstanding	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Schedule of stock options outstanding [Abstract]
Number of stock options | shares	5,000
Exercise price | $ / shares	$ 9.00
Issuance Date	Nov. 25, 2019
Expiry date	Nov. 25, 2021

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Leases (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Jan. 02, 2019
Disclosure Text Block [Abstract]
Net lease liabilities			$ 269,341
Non-cash operating lease liabilities		$ 316,600
Operating lease expense	$ 52,308	48,175
Short-term lease costs	50,073	78,035
Measurement of operating lease liabilities	$ 51,799	$ 47,309
Lease, description	the Company reduced its operating lease liabilities by $31,662 and $36,150 for cash paid.
Weighted average discount rate	58.00%
Weighted average remaining term	2 years 9 months

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Leases (Details) - Schedule of operating leases related to assets and liabilities - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Schedule of operating leases related to assets and liabilities [Abstract]
Operating lease assets	$ 136,211	$ 168,384
Current operating lease liabilities	141,688	173,351
Total operating lease liabilities	$ 141,688	$ 173,351

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Leases (Details) - Schedule of weighted-average discount rate	Dec. 31, 2020 USD ($)
Schedule of weighted-average discount rate [Abstract]
2020	$ 70,203
2021	95,914
2022	86,681
2023	21,330
Total lease payments	274,128
Less: imputed interest	(132,440)
Total	$ 141,688

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Commitments and Contingencies (Details) - USD ($)					1 Months Ended		3 Months Ended			12 Months Ended
	Nov. 14, 2019	Jul. 15, 2019	May 06, 2019	Oct. 10, 2018	Aug. 29, 2019	Jul. 03, 2018	Jun. 25, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Feb. 04, 2019
Commitments and Contingencies (Details) [Line Items]
Lease term, description								The Company leases certain of its properties under leases that expire on various dates through 2023. Some of these agreements include escalation clauses and provide for renewal options ranging from one to five years. Leases with an initial term of 12 months or less and immaterial leases are not recorded on the balance sheet (refer to Note 14, Leases, for amounts expensed during the three months ended March 31, 2020 and 2019).	The Company leases certain of its properties under leases that expire on various dates through 2023. Some of these agreements include escalation clauses and provide for renewal options ranging from one to five years. Leases with an initial term of 12 months or less and immaterial leases are not recorded on the balance sheet (refer to Note 14, Leases, for amounts expensed during the three months ended March 31, 2020 and 2019).
Purchase of common stock		$ 8,507,557
Cash receivable		$ 3,000,000
Purchase Agreement, Description		The share purchase agreement also contains certain termination rights for both the Company and WaveTech GmbH, including that the Company or WaveTech GmbH may terminate the share purchase agreement if WaveTech GmbH has not obtained executed assignment agreements from its shareholders holding an aggregate of (i) fifty one percent (51%) of the issued and outstanding shares of WaveTech GmbH by the date that is ninety (90) days following the date of the share purchase agreement and (ii) ninety percent (90%) of the issued and outstanding shares of WaveTech GmbH by March 31, 2020.
Acquiring percentage	60.00%
Percentage of aggregate shares issued and outstanding										3.00%
Exchange loss										$ (10,022)
Cash from WaveTech GmbH								$ 299,972			$ 1,325,895
			On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.	In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.		On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum.
Description of equity purchase agreement					the equity purchase agreement, the Company shall have the discretion to deliver put notices to Oasis Capital and Oasis Capital will be obligated to purchase shares of the Company’s common stock, par value $0.00001 per share based on the investment amount specified in each put notice. The maximum amount that the Company shall be entitled to put to Oasis Capital in each put notice shall not exceed the lesser of $250,000 or two hundred percent (200%) of the average daily trading volume of the Company’s common stock during the ten (10) trading days preceding the put. Pursuant to the equity purchase agreement, Oasis Capital and its affiliates will not be permitted to purchase and the Company may not put shares of the Company’s common stock to Oasis Capital that would result in Oasis Capital’s beneficial ownership of the Company’s outstanding common stock exceeding 9.99%. The price of each put share shall be equal to eighty five percent (85%) of the market price (as defined in the equity purchase agreement). Puts may be delivered by the Company to Oasis Capital until the earlier of (i) the date on which Oasis Capital has purchased an aggregate of $2,500,000 worth of common stock under the terms of the equity purchase agreement, (ii) August 29, 2022, or (iii) written notice of termination delivered by the Company to Oasis Capital, subject to certain equity conditions set forth in the equity purchase agreement.
WaveTech GmbH [Member]
Commitments and Contingencies (Details) [Line Items]
Cash from WaveTech GmbH								3,000,000
Due from related party								$ 3,299,972
							the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH (refer to Note 17, Subsequent Events, for additional detail). As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH.
WaveTech GmbH [Member]
Commitments and Contingencies (Details) [Line Items]
Cash received										$ 2,989,978
Oasis Capital Agreed [Member]
Commitments and Contingencies (Details) [Line Items]
Purchase of common stock					$ 2,500,000

XML

Segment Disclosures (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Number of operating segments	2	2
Segment reporting, description	The Company operates the SGS reporting segment in one geographical area (the United States) and the AWS/ADEX/TNS operating segment in two geographical areas (the United States and Puerto Rico).
Number of geographical area	1

XML

Segment Disclosures (Details) - Schedule of information by operating segment - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ 7,130,480	$ 11,335,732	$ 11,335,732
Operating (loss) income	(1,661,552)	14,701	14,701
Interest expense	416,147	471,412	471,412
Depreciation and amortization	97,173	$ 93,952	93,952
Total assets	16,308,675		12,168,818
Spectrum Global [Member]
Segment Reporting Information [Line Items]
Net sales
Operating (loss) income	(745,562)		(954,965)
Interest expense	341,226		399,555
Depreciation and amortization
Total assets	5,194,959		11,783
TNS [Member] | AWS [Member] | Adex [Member]
Segment Reporting Information [Line Items]
Net sales	7,130,480		11,335,732
Operating (loss) income	(915,990)		969,666
Interest expense	74,921		71,857
Depreciation and amortization	97,173		93,952
Total assets	$ 11,113,716		$ 12,157,035

XML

Segment Disclosures (Details) - Schedule of geographic information - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, Consolidated Total	$ 7,130,480	$ 11,335,732	$ 11,335,732
Long-Lived Assets, Consolidated Total	5,812,035		5,870,938
Puerto Rico [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, Consolidated Total	170,512	310,478
Long-Lived Assets, Consolidated Total	9,268		9,698
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, Consolidated Total	6,959,968	$ 11,025,254
Long-Lived Assets, Consolidated Total	$ 5,802,767		$ 5,861,240

XML

Subsequent Events (Details) - USD ($)																1 Months Ended													3 Months Ended
	Jun. 12, 2020	Jun. 09, 2020	May 20, 2020	May 13, 2020	May 12, 2020	May 06, 2020	Apr. 16, 2020	Apr. 14, 2020	Apr. 13, 2020	Apr. 09, 2020	Apr. 08, 2020	Apr. 02, 2020	Apr. 01, 2020	May 06, 2019	Oct. 10, 2018	Jun. 26, 2020	Jun. 25, 2020	Jun. 22, 2020	Jun. 19, 2020	Jun. 18, 2020	Jun. 16, 2020	May 08, 2020	Apr. 30, 2020	Apr. 29, 2020	Apr. 27, 2020	Apr. 21, 2020	Apr. 20, 2020	Jul. 03, 2018	Jun. 25, 2020	Mar. 31, 2020	Mar. 31, 2019	Feb. 04, 2019
Subsequent Events (Details) [Line Items]
CARES Act Loan Description																														Principal and interest payments on any unforgiven portion of the PPP Funds (the “PPP Loan”) will be deferred for six months and will accrue interest at a fixed annual rate of 1.0% and carry a two year maturity date. There is no prepayment penalty on the CARES Act Loan.
Debt conversion amount converted																														$ 64,257	$ 1,042,254
Common stock, shares issued (in Shares)																														1,082,731
Description of promissory note														On May 6, 2019, the remaining principal balance of $1,452,299 was converted into shares of the Company’s common stock through an automatic forced conversion.	In addition, the Company issued a warrant (the “Warrant”) to the Lender to purchase an amount of shares of the Company’s common stock equal to $150,000 divided by the Warrant Price (as defined in the Warrant) at a price per share equal to 125% of the prior day’s closing price.													On February 21, 2018, the Company issued a convertible note with a principal amount of $500,000 and a warrant with a term of three years to purchase up to 417 shares of common stock of the Company at an exercise price of $480.00 per share to Barn 11. The exercise price of the warrant was to reduce to 85% of the closing price of the Company’s common stock if the closing price of the Company’s common stock was less than $480.00 on July 31, 2018. The note was due on January 15, 2019, and in February 2019, the maturity date was extended to June 1, 2019, and bears interest at 6% per annum. The note is convertible into common shares of the Company at a conversion price equal to the lower of 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion and $300.00 (the “Floor”), unless the note is in default, at which time the Floor terminates. The embedded conversion option and warrant qualified for derivative accounting and the conversion option qualified for bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $571,079 and the warrant of $158,772 resulted in a discount to the note payable of $500,000 and an initial derivative expense of $229,851. On June 1, 2019, the Company was in default on the note. As a result of the default, a 15% premium was added to the balance owed, including all accrued interest. Subsequent to the default, the new principal balance of the note is $619,362, with interest now accruing at 18% per annum. Additionally, $466,000 was added to the derivative liability balance in connection with the default. During the year ended December 31, 2019, the Company paid $25,000 of principal. The Company owed $594,362 as of March 31, 2020. Convertible promissory note, Dominion Capital, 12% interest, unsecured, matures October 17, 2020 On April 17, 2019, Dominion Capital exchanged two notes into a new note (the “Exchange Note”) with a principal amount of $1,571,134. Interest accrues on the new note at 12% per annum. All principal and accrued interest under the Exchange Note is due on October 17, 2020 and is convertible into shares of the Company’s common stock. The conversion price in effect on the date such conversion is effected shall be equal to (i) initially, $30.00 or (ii) on or after the date of the closing of the next public or private offering of equity or equity-linked securities of the Company in which the Company receives gross proceeds in an amount greater than $100,000, one hundred and five percent (105%) of the price of the common stock issuable in the offering. While during the first six months that the Exchange Note is outstanding, only interest payments are due to the holder, beginning in October 2019, and on each monthly anniversary thereafter until maturity, amortization payments are due for principal and interest due under the Exchange Note. The Exchange Note includes customary events of default, including non-payment of the principal or accrued interest due on the Exchange Note. Upon an event of default, all obligations under the Exchange Note will become immediately due and payable. The Holder was granted a right to participate in future financing transactions of the Company while the Exchange Note remains outstanding. As a result of the beneficial conversion feature associated with the Dominion notes, $314,228 was added to additional paid-in capital during the year ended December 31, 2019. In connection with the exchange, the Company recorded a loss on settlement of debt of $904,469 on the consolidated statement of operations for the year ended December 31, 2019. The Company was to begin making principal payments in equal installments beginning on October 1, 2019. On October 22, 2019, the Company reached an agreement with Dominion Capital to postpone the principal payments. In exchange for the extension, the Company will pay to Dominion Capital an extension fee equal to 14% of the postponed payments. As a result of this agreement, the Company added $47,731 of principal to note during the year ended December 31, 2019 and the three months ended March 31, 2020. During the year ended December 31, 2019 and the three months ended March 31, 2020, the Company paid $51,848 of principal. The Company owed $1,562,901 as of March 31, 2020 and will record accretion equal to the debt discount of $50,443 over the remaining term of the note. Convertible promissory note issued in connection with the acquisition of TNS, Inc. On January 4, 2019, as part of the acquisition described in Note 3, Acquisition of TNS, Inc., the Company issued to InterCloud a convertible promissory note in the aggregate principal amount of $620,000 (the “Note”). The interest on the outstanding principal due under the Note accrued at a rate of 6% per annum. All principal and accrued interest under the Note was due January 30, 2020, and was convertible, at any time at InterCloud’s election, into shares of common stock of the Company at a conversion price equal to the greater of 75% of the lowest volume-weighted average price during the 10 trading days immediately preceding the date of conversion and $30.00. The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “Derivatives and Hedging”. The initial fair value of the conversion feature of $189,000 resulted in a discount to the note payable of $144,000. On January 28, 2019, the holder of the convertible promissory note entered into agreement to sell and assign a total of $620,000 of the $620,000 outstanding principal to two third parties, with $186,000 and $434,000 of principal assigned to each party (refer to the “Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020” and “Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020” sections of this note for further detail). The Company approved and is bound by the assignment and sale agreement. Convertible promissory note, Michael Roeske, 6% interest, unsecured, matures, January 30, 2020 On January 28, 2019, InterCloud assigned $186,000 of the note issued in connection with the acquisition of TNS to Michael Roeske. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Roeske converted $70,000 of principal of the note into shares of the Company’s common stock. The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $29,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $145,000 pursuant to this agreement. Convertible promissory note, Joel Raven, 6% interest, unsecured, matures January 30, 2020 On January 28, 2019, InterCloud assigned $434,000 of the note issued in connection with the acquisition of TNS to Joel Raven. The note accrues interest at a rate of 6% per annum and had a maturity date of January 30, 2020. During the year ended December 31, 2019, Mr. Raven converted $70,000 of principal of the note into shares of the Company’s common stock The note matured on January 30, 2020 and is in default. As a result of the default, the note balance was increased by 25% of outstanding principal, resulting in additional principal of $91,000. The interest also increased from 6% per annum to 24% per annum. At March 31, 2020, the Company owed $455,000 pursuant to this agreement. Convertible promissory note, GS Capital Partners, LLC, 8% interest, secured, matures August 2, 2020 On August 2, 2019, the Company entered into and closed on a Securities Purchase Agreement with GS Capital Partners, LLC, pursuant to which the Company issued to GS Capital Partners, LLC a senior secured convertible promissory note in the aggregate principal amount of $123,000 for an aggregate purchase price of $112,000. The interest on the outstanding principal due under the secured note accrued at a rate of 8% per annum.
Reverse stock split description																														All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.
Purchase agreement amendment description								Amendment Number 2 adjusted the amount of common stock issued on the Series C Conversion Date as follows: If on the earlier of (a) the tenth (l0th) business day prior to the listing of the Company on a national securities exchange (“Uplisting”), or (b) December 15, 2020, the aggregate value of the shares of common stock issued upon conversion of the Series C (the “Conversion Shares”) is less than 95% of the aggregate value of the Conversion Shares on the Series C Conversion Date (such difference in value, the “First Value Differential”), then the Company shall make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the First Value Differential (such additional shares, the “First True-Up Shares”). In the event (i) an Uplisting does not occur until sometime in 2021, and (ii) on such date in 2021 as the Board may determine, but in no event later than the tenth (10th) business day prior to the Uplisting (the “Second True-Up Date”), the aggregate value of the Conversion Shares as of the Second True-Up Date is less than 95% of the aggregate value of the Conversion Shares as of December 15, 2020 (such difference in value, the “Second Value Differential”), the Company shall, at the Board’s discretion, make a pro-rata issuance of additional shares of common stock to each holder in an aggregate amount equal to the Second Value Differential (such additional shares, the “Second True-Up Shares”). To the extent any shares of Series C are issued after the Series C Conversion Date, then the holder(s) of such shares shall receive the same number of Conversion Shares such holder(s) would have received had they held the Series C on the Series C Conversion Date.
Aggregate principal amount																														$ 299,972		$ 1,325,895
RDM Capital Funding [Member]
Subsequent Events (Details) [Line Items]
Cash discount																						$ 62,652
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Preferred stock, convertible, conversion price, decrease (in Dollars per share)											$ 3.00
Description of promissory note																				the Company made the fourth amendment to the Certificate of Designation of its Series A preferred stock, which lowered the fixed conversion price to $0.20 per share and the conversion price floor to $0.01 per share.
Reverse stock split description								On April 14, 2020, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the state of Nevada to effect a 1-for-300 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment became effective on April 14, 2020 with the state of Nevada, and on April 20, 2020, Financial Industry Regulatory Authority, Inc. (FINRA) made the announcement of the reverse stock split. The reverse stock split was previously approved by the board of directors and the majority of stockholders of the Company. The reverse stock split was deemed effective at the open of business on April 21, 2020. As a result of the reverse stock split, every three hundred (300) shares of outstanding common stock of the Company as of April 14, 2020 were converted into one (1) share of common stock. Fractional shares resulting from the reverse stock split will be rounded up to the next whole number. All common share, warrant, stock option, and per share information in the consolidated financial statements gives retroactive effect to the 1-for-300 reverse stock split. There was no change to the number of authorized shares of common stock or preferred stock of the Company as a result of the reverse stock split. The par value of the Company’s common stock was unchanged at $0.00001 per share post-split.
Purchase agreement description								On April 14, 2020, the Company entered into Amendment Number 2 of the share purchase agreement with WaveTech GmbH. Amendment Number 2 replaced the conversion terms of the Series C preferred stock included with Amendment Number 1 with the following: Conversion. On the second business day following the earlier of (i) the later of (A) April 30, 2020, or such later date as may be determined by the Board, and (B) a reverse split of the common stock. (ii) the listing of the Company on a national securities exchange and (iii) the six-month anniversary of the issuance of shares of Series C to such holder (such earliest date. the “Series C Conversion Date”), without any further action, all outstanding shares of Series C shall automatically convert into an aggregate number of shares of common stock equal to $90,000,000 (the “Aggregate Value”)/Strike Price (as defined below). Provided, however, if a Triggering Event (as defined below) occurs, the Aggregate Value shall be reduced by the amount of any losses (as defined below). “Strike Price” shall mean the closing price per share of the Company’s common stock on the trading day immediately preceding the Series C Conversion Date.
Subsequent Event [Member] | AWS [Member]
Subsequent Events (Details) [Line Items]
Subsidiaries received					$ 78,000																					$ 672,400
Subsequent Event [Member] | Adex [Member]
Subsequent Events (Details) [Line Items]
Subsidiaries received																									$ 2,682,125
Subsequent Event [Member] | Power Up Lending Group LTD [Member]
Subsequent Events (Details) [Line Items]
Shares issued (in Shares)	118,554	62,359	113,379	77,912	38,956		8,621		9,196				5,715			118,777					118,554		58,434				12,122
Debt conversion amount converted	$ 20,000	$ 5,000	$ 20,000	$ 20,000	$ 10,000		$ 15,000		$ 16,000				$ 12,000			$ 16,500					$ 20,000		$ 15,000				$ 20,000
Accrued interest		$ 5,520														$ 2,540			$ 240
Common stock, shares issued (in Shares)																								8,334
Subsequent Event [Member] | Power Up Lending Group LTD One [Member]
Subsequent Events (Details) [Line Items]
Shares issued (in Shares)		71,132					8,621
Debt conversion amount converted		$ 12,000					$ 15,000
Subsequent Event [Member] | Dominion Capital [Member]
Subsequent Events (Details) [Line Items]
Debt conversion description												On April 2, 2020, in connection with the convertible debenture outstanding to Dominion Capital, the Company paid a $20,000 modification fee in order to avoid an event of default under the note and receive payment forbearance for a period of 30 days.
Common stock, shares issued (in Shares)										8,334							75,000
Shares converted (in Shares)										25,000							15,000							25,000
Share price (in Dollars per share)										$ 1							$ 1							$ 1					$ 1
Subsequent Event [Member] | M2B Funding [Member]
Subsequent Events (Details) [Line Items]
Common stock, shares issued (in Shares)																		85,000
Shares converted (in Shares)																		17,000
Share price (in Dollars per share)																		$ 1
Subsequent Event [Member] | GS Capital Partners LLC [Member]
Subsequent Events (Details) [Line Items]
Shares issued (in Shares)																							302,121
Debt conversion amount converted																							$ 100,000
Accrued interest																							$ 5,742
Subsequent Event [Member] | CCAG Investments, LLC [Member]
Subsequent Events (Details) [Line Items]
Interest rate						120.00%
Aggregate principal amount						$ 218,534
Accrued interest						$ 8,534
Subsequent Event [Member] | FJ Vulis and Associates LLC [Member]
Subsequent Events (Details) [Line Items]
Interest rate						120.00%
Aggregate principal amount						$ 218,247
Accrued interest						$ 8,247
Subsequent Event [Member] | RDM Capital Funding [Member]
Subsequent Events (Details) [Line Items]
Cash payments																						$ 116,643
Subsequent Event [Member] | SCS, LLC [Member]
Subsequent Events (Details) [Line Items]
Shares issued (in Shares)																			23,555
Debt conversion amount converted																			$ 4,000
Subsequent Event [Member] | Wave Yech GmbH [Member]
Subsequent Events (Details) [Line Items]
Description of promissory note																													the Company obtained additional executed assignment agreements from shareholders holding an aggregate of 30% of the issued and outstanding shares of WaveTech GmbH. As a result, as of the date of this report, the Company has obtained executed assignment agreements from shareholders holding an aggregate of 90% of the issued and outstanding shares of WaveTech GmbH.