Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2023

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

For the transition period from ___________ to ____________

Commission File Number 000-56417

RDE, INC.

(Exact name of registrant as specified in its charter)

Delaware		45-2482974
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1100 Woodfield Road, Suite 510

Schaumburg, IL

60173

(Address of principal executive offices)

(ZIP Code)

(847) 506-9680

(Registrant’s telephone number, including area code)

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, par value $.001		RSTN		OTC Market Groups Inc.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: There were 16,506,404 shares of common stock outstanding as of August 7, 2023.

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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a 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 ☒

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		F-1

Item 1. Condensed Financial Statements		F-1

Condensed Consolidated Balance Sheets – June 30, 2023 (Unaudited) and December 31, 2022		F-1

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022 (Unaudited)		F-2

Condensed Consolidated Statements of Changes in Stockholders’ Deficiency for the three and six months ended June 30, 2023 and 2022 (Unaudited)		F-3

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (Unaudited)		F-5

Notes to Condensed Consolidated Financial Statements three and six months ended June 30, 2023 and 2022 (Unaudited)		F-6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		1

Item 3. Quantitative and Qualitative Disclosures About Market Risk		9

Item 4. Controls and Procedures		9

PART II – OTHER INFORMATION		10

Item 1. Legal Proceedings		10

Item 1A. Risk Factors		10

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		10

Item 3. Defaults Upon Senior Securities		10

Item 4. Mine Safety Disclosures		10

Item 5. Other Information		10

Item 6. Exhibits		11

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements and information in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Quarterly Report”) may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, which address activities, events, or developments that we expect or anticipate will or may occur in the future, including such things as future capital expenditures, growth, product development, sales, business strategy, statements related to any further expected effects on our business from the coronavirus (“COVID-19”) pandemic, inflation, the Russia-Ukraine conflict, and other similar matters are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or other comparable terminology. These forward-looking statements are based largely on our current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. These statements are subject to many risks, uncertainties, and other important factors that could cause actual future results to differ materially from those expressed in the forward-looking statements including, but not limited to, the continued duration and scope of the COVID-19 pandemic and any impact on the demand for our products; our ability to obtain needed raw materials and components from our suppliers; additional actions governments, businesses, and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps that we could take to reduce operating costs; our inability to sustain profitable sales growth, or reduce our costs to maintain competitive prices for our products; circumstances or developments that may make us unable to implement or realize the anticipated benefits, or that may increase the costs, of our current and planned business initiatives; and those factors detailed by us in our public filings with the Securities and Exchange Commission (the “SEC”), including in Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2022. In light of these risks and uncertainties, all of the forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized. We undertake no obligation to update or revise any of the forward-looking statements contained herein.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

RDE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2023			2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,134,182		$	1,122,958
Accounts receivable		138,517			209,808
Deposits with credit card processor		87,237			87,237
Prepaid expenses and other current assets		165,516			102,193
Total current assets		2,525,452			1,522,196

Operating lease right of use asset, net		286,418			52,608
Deposits		7,500			-
Total assets	$	2,819,370		$	1,574,804

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current liabilities:
Accounts payable	$	1,315,192		$	1,206,615
Accrued expenses		470,734			516,882
Deferred revenue		139,781			217,311
Government assistance notes payable-SBA loans, current portion		39,876			15,217
Operating lease liability, current portion		75,621			59,328
Convertible note payable, past due, including accrued interest of $18,637 and $17,137, respectively		38,637			37,137
Notes payable, acquisitions, current portion, including accrued interest of zero and $251,507, respectively		34,066			1,798,478
Total current liabilities		2,113,907			3,850,968

Notes payable, acquisitions, including accrued interest of $639 and $687, respectively		81,676			81,494
Government assistance notes payable -SBA loans, including accrued interest of $38,098 and $45,541, respectively, net of current portion		659,257			691,359
Operating lease liability, net of current portion		238,465			-
Total liabilities		3,093,305			4,623,821

Commitments and Contingencies		-			-

Stockholders’ deficiency:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding		-
Common stock, $0.001 par value, 750,000,000 shares authorized; 16,506,404 and 14,152,378 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		16,506			14,153
Additional paid-in-capital		63,161,577			58,123,246
Common stock issuable, 383,343 shares		383,343			383,343
Accumulated deficit		(63,835,361	)		(61,569,759	)
Total stockholders’ deficiency		(273,935	)		(3,049,017	)

Total liabilities and stockholders’ deficiency	$	2,819,370		$	1,574,804

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-1

RDE, INC. AND SUBSDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Six Months Ended June 30, 2023 and 2022

(Unaudited)

	2023			2022			2023			2022
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Revenues	$	721,488		$	1,811,154		$	1,533,199		$	2,570,934

Operating expenses
Cost of revenues		101,389			497,733			196,266			598,298
Selling, general and administrative expenses		2,453,615			1,475,455			3,569,634			2,912,050
Amortization of intangible assets		-			31,044			-			49,524
Total operating expenses		2,555,004			2,004,232			3,765,900			3,559,872

Loss from operations		(1,833,516	)		(193,078	)		(2,232,701	)		(988,938	)

Other income (expenses)
Interest		(7,170	)		(29,112	)		(32,901	)		(55,706	)
Gain on legal settlement		-			-			-			69,000
Gain on vendor settlement		-			28,600			-			28,600
Gain from forgiveness of government assistance notes payable		-			-			-			1,025,535
Total other income (expenses)		(7,170	)		(512	)		(32,901	)		1,067,429

Net income (loss)	$	(1,840,686	)	$	(193,590	)	$	(2,265,602	)	$	78,491

Net earnings/(loss) per share – basic	$	(0.12	)	$	(0.01	)	$	(0.15	)	$	0.01
Net earnings/(loss) per share –diluted	$	(0.12	)	$	(0.01	)	$	(0.15	)	$	0.01

Weighted average common shares outstanding – basic		15,983,909			14,090,269			15,167,932			13,391,965
Weighted average common shares outstanding – diluted		15,983,909			14,090,269			15,167,932			14,321,975

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-2

RDE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

For the Three Months Ended June 30, 2023

(Unaudited)

	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
	Common Stock				Common Stock Issuable				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, March 31, 2023		14,707,237	$	14,707		383,343	$	383,343	$	59,945,353	$	(61,994,675	)	$	(1,651,272	)

Fair value of vested options		-		-		-		-		145,496					145,946

Fair value of vested restricted stock units for directors		480,000		480		-		-		109,520					110,000

Fair value of vested restricted stock units for employees		166,667		166		-		-		433,861					434,027

Issuance of common stock for services		150,000		150						523,350					523,500

Issuance of common stock for cash		1,002,500		1,003		-		-		2,003,997					2,005,000

Net loss		-		-		-		-		-		(1,840,686	)		(1,840,686	)
Balance, June 30, 2023		16,506,404	$	16,506		383,343	$	383,343	$	63,161,577	$	(63,835,361	)	$	(273,935	)

For the Six Months Ended June 30, 2023

(Unaudited)

	Common Stock				Common Stock Issuable				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, December 31, 2022		14,152,378	$	14,153		383,343	$	383,343	$	58,123,246	$	(61,569,759	)	$	(3,049,017	)

Fair value of vested options		-		-		-		-		163,990					163,990

Fair value of vested restricted stock units for directors		480,000		480		-		-		139,520					140,000

Fair value of vested restricted stock units for employees		166,667		166		-		-		438,028					438,194

Issuance of common stock for services		150,000		150		-		-		523,350					523,500

Issuance of common stock for cash		1,002,500		1,003		-		-		2,003,997					2,005,000

Issuance of common stock on conversion of acquisition note		554,859		554		-		-		1,769,446					1,770,000

Net loss		-		-		-		-		-		(2,265,602	)		(2,265,602	)
Balance, June 30, 2023		16,506,404	$	16,506		383,343	$	383,343	$	63,161,577	$	(63,835,361	)	$	(273,935	)

F-3

For the Three Months Ended June 30, 2022

(Unaudited)

	Common Stock				Common Stock Issuable				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, March 31, 2022		13,803,261	$	13,803		383,343	$	383,343	$	57,448,885	$	(60,019,154	)	$	(2,173,123	)

Fair value of vested options		-		-		-		-		18,495					18,495

Fair value of vested restricted stock units		-		-		-		-		33,937					33,937

Issuance of common stock for services		189,784		190		-		-		210,319					210,509

Issuance of common stock for vendor balance		26,000		26		-		-		36,374					36,400

Issuance of common stock for cash		100,000		100		-		-		249,900					250,000

Net loss		-		-		-		-		-		(193,590	)		(193,590	)
Balance, June 30, 2022		14,119,045	$	14,119		383,343	$	383,343	$	57,997,910	$	(60,212,744	)	$	(1,817,372	)

For the Six Months Ended June 30, 2022

(Unaudited)

	Common Stock				Common Stock Issuable				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, December 31, 2021		12,879,428	$	12,880		383,343	$	383,343	$	56,875,273	$	(60,291,235	)	$	(3,019,739	)

Fair value of vested options		-		-		-		-		119,496					119,496

Fair value of vested restricted stock units		83,833		-		-		-		45,554					45,554

Issuance of common stock to employees		240,000		323		-		-		161,594					161,917

Issuance of common stock for services		189,784		190		-		-		210,319					210,509

Issuance of common stock for vendor balance		26,000		26		-		-		36,374					36,400

Issuance of common stock for cash		100,000		100		-		-		249,900					250,000

Issuance of common stock for GameIQ acquisition		600,000		600		-		-		299,400					300,000

Net income		-		-		-		-		-		78,491			78,491
Net income (loss)		-		-		-		-		-		78,491			78,491
Balance, June 30, 2022		14,119,045	$	14,119		383,343	$	383,343	$	57,997,910	$	(60,212,744	)	$	(1,817,372	)
Balance		14,119,045	$	14,119		383,343	$	383,343	$	57,997,910	$	(60,212,744	)	$	(1,817,372	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-4

RDE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2023 and 2022

(Unaudited)

	2023			2022
	Six Months Ended June 30,
	2023			2022
	(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(2,265,602	)	$	78,491
Adjustments to reconcile net income (loss) to net cash used in operating activities
Amortization of intangible assets		-			49,524
Fair value of vested stock options		163,990			119,496
Fair value of vested restricted stock for directors		140,000			45,554
Fair value of vested restricted stock for employees		438,195			161,917
Fair value of common stock issued for services		523,500			210,509
Gain on vendor settlement		-			(28,600	)
Gain on legal settlement		-			(69,000	)
Gain on forgiveness of government assistance note payable		-			(1,025,535	)
Changes in operating assets and liabilities:
Accounts receivable		71,291			72,634
Prepaid expenses and other current assets		(63,323	)		(39,697	)
Deposits		(7,500	)
Decrease in operating lease right of use assets		59,988			58,037
Accounts payable		108,575			274,910
Accrued expenses		(46,148	)		88,682
Deferred revenue		(77,530	)		(31,937	)
Accrued interest payable		12,512			55,706
Operating lease liability		(39,040	)		(56,601	)
Net cash used in operating activities		(981,092	)		(35,910	)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired on GameIQ acquisition		-			12,805
Net cash provided by investing activities		-			12,805

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock for cash		2,005,000			250,000
Repayment of acquisition obligation		(12,684	)		-
Net cash provided by financing activities		1,992,316			250,000

Net increase in cash and cash equivalents		1,011,224			226,895
Cash and cash equivalents beginning of period		1,122,958			1,930,325
Cash and cash equivalents end of period	$	2,134,182		$	2,157,220

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	$	-		$	-
Taxes paid	$	-		$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued on conversion of acquisition note principal and interest	$	1,770,000		$	-
Operating lease right of use asset and related lease liability	$	293,798		$	-
Goodwill and intangible assets acquired from acquisition of GameIQ	$	-		$	443,509
Fair value of common shares issued on acquisition of GameIQ	$	-		$	300,000
Notes payable issued from acquisition of GameIQ	$	-		$	140,914
Government assistance notes payable and accrued interest assumed on acquisition of GameIQ	$	-		$	15,400
Fair value of common shares issued in settlement of vendor payable	$	-		$	36,400

The accompanying notes are integral part of these condensed consolidated financial statements.

F-5

RDE, INC. AND SUBSIDIARY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three and Six Months Ended June 30, 2023 and 2022

(Unaudited)

1. Basis of Presentation

The accompanying interim condensed consolidated financial statements of RDE, Inc. (the “Company”, “we”, “us”, or “our”), are unaudited, but in the opinion of management contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position at June 30, 2023 and the results of operations and cash flows for the three and six months ended June 30, 2023 and 2022. Intercompany transactions and balances have been eliminated in consolidation.

Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. We believe that the disclosures contained in these condensed financial statements are adequate to make the information presented herein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 7, 2023.

The results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2023.

The accompanying consolidated financial statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

In accordance with the “Segment Reporting” Topic of the Accounting Standards Codification, the Company’s chief operating decision maker (the Company’s Chief Executive Officer) determined that the Company has only one reporting unit.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, during the six months ended June 30, 2023, the Company recorded a net loss of $2,265,602 and used cash in operations of $981,092 and had a stockholders’ deficit of $273,935 as of that date. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date of the financial statements being issued. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its business plan. As a result, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern. The Company’s independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2022, has also expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

At June 30, 2023, the Company had cash on hand in the amount of $2,134,182. The continuation of the Company as a going concern is dependent upon its ability to obtain necessary debt or equity financing to continue operations until it begins generating positive cash flow. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in case or equity financing.

F-6

COVID-19

The Company is closely monitoring the impact of the pandemic on all aspects of its business, including how the pandemic may continue to impact its employees, suppliers, vendors, and business partners. While the pandemic did not materially affect the Company’s financial results and business operations for the three and six months ended June 30, 2023, the Company is unable to predict the impact that COVID-19 will have on its financial position and operating results in future periods due to numerous uncertainties. The Company will continue to assess the evolving impact of the COVID-19 pandemic and will make adjustments to its operations as necessary.

2. Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to assumptions used in accruals for potential liabilities, redemption rate of promotional gift cards, assumptions used in valuing equity instruments issued for services, and the valuation allowance for deferred tax assets.

Revenue Recognition

Revenue is recognized when, or as, control of a promised product transfers to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products. Revenue excludes taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales and use taxes.

The Company operates online websites that sell discounted restaurant coupons, travel and vacation packages, and other merchandise. In addition, the Company also generates revenues based upon the number of times a third-party website(s) or products(s) are accessed or viewed by consumers from the Company’s website or platform.

Restaurant Coupons revenues

Sale of Restaurant Coupons

The Company sells discount certificates for restaurants on behalf of third-party restaurants. Approximately 9 to 13 days each month the Company emails its customers offers for restaurant discounts based on location and personal preferences. Consumers also access deals offered by the Company directly through the Company’s websites and mobile applications. A typical restaurant discount deal might offer a $25 discount that can be used toward a $50 purchase at a restaurant. The Company recognizes revenue on a gross basis upon sale and collection of the restaurant coupons from customers. The Company has no further commitment or obligation to third-party restaurants or the coupon purchasers upon the sale of restaurant coupons and no amounts are due to the third-party restaurants for these sales. Sale of restaurant coupons are generally non-refundable. On an infrequent case-by-case basis, the Company will accept customer’s request to transfer a restaurant coupon from one third-party restaurant to another (for example, upon the closure of a restaurant).

Sale of Promotional Gift Card Revenue

The Company sells Restaurant.com promotional gift cards which can only be redeemed for restaurant coupons offered by the Company on its website. Based on the Company’s historical redemption rates of its promotional gift cards, a portion of the sale of gift card revenue is recorded as deferred revenue liability at the time of sale and recognized as revenue in future periods based on historical redemption trend rates, but no longer than 24 months from the date of sale. The Company continues to review historical promotional gift card redemption information and considers any changes in redemption patterns to assess when revenue is realized. Future redemption rates may be different than our historical experience and subject to inherent uncertainty. If actual redemption activity differs significantly from our historical experience, our deferred revenue and results of operations could be materially impacted.

F-7

Travel, Vacation and Merchandise Revenues

The Company also derives revenue from transactions in which it sells complementary entertainment and travel offerings and consumer products on behalf of third-party merchants across a wide range of product categories, including, but not limited to, computer products, consumer electronics, apparel, housewares, watches, jewelry, travel, sporting goods, automobiles, home improvement products, and collectibles. Additional deals include discounted pricing at theaters, movies or other merchants. Customers purchase restaurant deals from the Company and redeem them with the Company’s merchant partners. Approximately 9 to 13 days each month the Company emails its customers offers for discounted experiences and products based on location and personal preferences. Consumers also access the Company’s deals directly through the Company’s websites and mobile applications. Those discounted experiences and products generally involve a customer’s purchase of a voucher through one of the Company’s websites that can be redeemed with a third-party merchant for services or goods (or for discounts on services and goods). Revenue from those transactions is reported on a net basis and equals the purchase price received from the customer for the voucher less an agreed upon portion of the purchase price paid by the Company to its partners.

Advertising Revenues

The Company also has agreements with selected third-party partners, such as Google Ads, wherein third-party website(s) and/or product(s) are shown or incorporated in the Company’s platform or website. The Company generates revenues based upon the number of times the third-party website(s) or product(s) are accessed or viewed by consumers from the Company’s platform or website. Revenue is recognized when its determinable, which is generally upon receipt of a statement and/or proceeds from the third-party partners.

In the following table, revenue is disaggregated by our divisions and type of revenue for the three months ended June 30, 2023 and 2022:

Schedule of Disaggregation of Revenue

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Three Months Ended June 30, 2023
Business to consumer (B2C)	$	165,196	$	75,423	$	36,362	$	276,981
Business to business (B2B)		444,507		-		-		444,507
Other		-		-		-		-
Total	$	609,703	$	75,423	$	36,362	$	721,488

Three Months Ended June 30, 2022
Business to consumer (B2C)	$	157,774	$	72,874	$	42,632	$	273,280
Business to business (B2B)		1,524,934		-		-		1,524,934
Other		12,940		-		-		12,940
Total	$	1,695,648	$	72,874	$	42,632	$	1,811,154

In the following table, revenue is disaggregated by our divisions and type of revenue for the six months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Six Months Ended June 30, 2023
Business to consumer (B2C)	$	453,374	$	135,693	$	89,590	$	659,657
Business to business (B2B)		873,542		-		-		873,542
Other		-		-		-		-
Total	$	1,307,916	$	135,693	$	89,590	$	1,533,199

Six Months Ended June 30, 2022
Business to consumer (B2C)	$	355,012	$	149,602	$	91,463	$	596,077
Business to business (B2B)		1,953,709		-		-		1,953,709
Other		21,148		-		-		21,148
Total	$	2,329,869	$	149,602	$	91,463	$	2,570,934

F-8

Business Combinations

The Company accounts for its business combinations using the acquisition method of accounting where the purchase consideration is allocated to the tangible and intangible assets acquired, and liabilities assumed, based on their respective fair values as of the acquisition date. The excess of the fair value of the purchase consideration over the estimated fair values of the net assets acquired is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth and margins, future changes in technology, brand awareness and discount rates. Fair value estimates are based on the assumptions that management believes a market participant would use in pricing the asset or liability.

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed using the weighted average number of common shares issued and outstanding during the period. Diluted earnings (loss) per share is computed using the weighted average number of common shares and the dilutive effect of contingent shares outstanding during the period. Potentially dilutive contingent shares, which primarily consist of convertible notes and stock issuable upon the exercise of stock options and warrants, have been excluded from the calculation of diluted loss per share because their effect is anti-dilutive.

Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock issued and outstanding during the respective periods. Basic and diluted loss per common share was the same for all periods presented because all convertible notes and stock issuable upon the exercise of stock options and warrants outstanding were anti-dilutive.

At June 30, 2023 and 2022, the Company excluded the outstanding convertible debt and securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive.

	June 30, 2023		June 30, 2022
Convertible notes payable		25,758		23,758
Common stock issuable		383,343		-
Common stock warrants		-		20,667
Common stock options		743,116		648,116
Total		1,152,217		692,541

Stock-Based Compensation

The Company periodically issues share-based awards to employees and non-employees and consultants for services rendered. Stock options vest and expire according to terms established at the issuance date of each grant. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as a charge to operations ratably over the requisite service, or vesting, period.

The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, dividend rate, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates.

F-9

Advertising Costs

The Company has marketing relationship agreements with various online companies such as portal networks, contextual sites, search engines and affiliate partners. Advertising costs are generally charged to the Company monthly per vendor agreements, which typically are based on visitors and/or registrations delivered to the site or at a set fee. Agreements do not provide for guaranteed renewal and may be terminated by the Company without cause. Such advertising costs are charged to expense as incurred and included in selling, general and administrative expenses in the statements of operations. During the six months ended June 30, 2023 and 2022, advertising costs were $136,261 and $247,759, respectively.

Customer and Vendor Concentration

As of June 30, 2023 and December 31, 2022, there were two customers and one customer who accounted for over 10% of the Company’s consolidated accounts receivable, respectively. As of June 30, 2023 and December 31, 2022, there were three vendors and three vendors, respectively, who accounted for over 10% of the Company’s consolidated accounts payable. During the six months ended June 30, 2023 and 2022, there were no customers who accounted for over 10% of the Company’s consolidated net revenue. During the six months ended June 30, 2023 and 2022, there were no vendors, respectively, who accounted for over 10% of the Company’s purchases.

Fair Value of Financial Instruments

The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties.

The three levels of the fair value hierarchy are as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying value of the Company’s financial instruments (consisting of cash, accounts receivables, deposits to credit card processor, prepaid expense and other current assets, accounts payable, accrued expenses, notes payable, and other liabilities) are considered to be representative of their respective fair values due to the short-term nature of those instruments.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASC 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses to estimate credit losses on certain types of financial instruments, including trade receivables, which may result in the earlier recognition of allowance for losses. ASU 2016-13 was effective beginning January 1, 2023 and early adoption is permitted. The Company adopted ASU 2016-13 effective January 1, 2023. The adoption of ASU 2016-13 did not have any impact on the Company’s consolidated financial statement presentation or disclosures.

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination as if it had originated the contracts. This is a shift from existing guidance, which required the acquirer to recognize contract assets and contract liabilities at their fair value as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. An entity should apply the guidance provided by ASU 2021-08 prospectively to business combinations occurring on or after January 1, 2023. Early adoption of ASU 2021-08 is permitted, including adoption in an interim period. An entity that early adopts the guidance in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company adopted ASU 2021-18 effective January 1, 2023. The adoption of ASU 2021-08 did not have any impact on the Company’s consolidated financial statement presentation or disclosure.

Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures.

F-10

3. Right-of-Use Assets and Operating Lease Liabilities

The Company leases certain corporate office spaces under an operating lease agreement.

Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in lease arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

As of December 31, 2022, the ROU assets were $52,608. In April 2023, Restaurant.com signed a lease for its office located in Schaumberg, Illinois. The lease has a term of 36 months and an average base rent of approximately $7,500 per month. At lease commencement, the Company recorded a right-of-use asset and lease liability of $293,798 based upon the present value of all lease payments. During the six months ended June 30, 2023, the Company reflected a decrease in its ROU asset of $59,988, resulting in a ROU asset balance of $286,418 as of June 30, 2023.

As of December 31, 2022, operating lease liabilities were $59,328. In April 2023, the Company recorded an operating lease liability of $293,798 as discussed above. During the six months ended June 30, 2023, the Company made lease payments of $39,040 towards its operating lease liability. As of June 30, 2023, ROU lease liabilities under operating leases totaled $314,086.

4. Convertible Note Payable- Past Due

Convertible notes consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Convertible Debt

	June 30, 2023		December 31, 2022

Total principal balance	$	20,000	$	20,000
Accrued interest		18,637		17,137
Total principal and accrued interest	$	38,637	$	37,137

In 2018, the Company merged with Incumaker, Inc. The merger was treated as a reverse merger and recapitalization of the Company for financial accounting purposes. In conjunction with the merger with Incumaker, Inc., the Company assumed certain outstanding convertible notes payable. At June 30, 2023 and December 31, 2022, the remaining convertible note assumed in the reverse merger had a principal balance outstanding of $20,000, was due July 2017, interest of 15% per annum, and accrued interest payable of $18,637 and $17,137, respectively. As of June 30, 2023, the convertible note, including accrued interest payable, was convertible at $1.50 per share into 25,758 shares of the Company’s common stock.

F-11

5. Notes Payable, Acquisitions

Notes payable, acquisitions consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Acquisition Notes Payable

	June 30,			December 31,
	2023			2022

GameIQ acquisition note payable	$	115,104		$	127,778
Restaurant.com acquisition note payable		-			1,500,000
Total principal balance		115,104			1,627,778
Accrued interest		638			252,194
Total principal and accrued interest		115,742			1,879,972
Less current portion		(34,066	)		(1,798,478	)
Non-current portion	$	81,676		$	81,494

GameIQ Acquisition Note Payable

On February 1, 2022, two notes payable for the purchase of GameIQ were issued, one for $78,813. and another for $62,101. RDE, Inc. promises to pay to the order of the holders the principal amounts together with annual interest of 1%, which shall be paid upon the earlier of (i) nine (9) equal biannual installments with the first installment due on the nine-month anniversary of February 1, 2022, and the final payment due February 1, 2025. In the event of default, the notes to the Holders are secured, in the manner that such payment to be made in cash or shares of the RDE, Inc.’s common stock at the election of the holders. These Notes may be prepaid in whole or in part by RDE, Inc.

As of December 31, 2022, the notes payable had an aggregate principal balance outstanding of $127,788 and accrued interest payable of $688. During the six months ended June 30, 2023, the Company made principal payments of $12,674. As of June 30, 2023, the notes payable had an aggregate principal balance outstanding of $115,104 and accrued interest payable of $638.

Restaurant.com Note Payable

Pursuant to the terms of the acquisition agreement with Restaurant.com, Inc. entered into on March 1, 2020, the Company executed an unsecured promissory note in the principal amount of $1,500,000 that matured on March 1, 2023. The promissory note bears interest at a rate of 6% per annum and is convertible at the option of the Company into common shares at a price to be determined on the date of conversion.

As of December 31, 2022, the note payable had a principal balance outstanding of $1,500,000 and accrued interest payable of $251,507. On March 1, 2023, the principal and interest balance of approximately $1,770,000 was converted into 554,859 shares of the Company’s common stock, and the note was retired.

F-12

6. Government Assistance Notes Payable -SBA Loans

Government Assistance Notes Payable-SBA Loans consists of the following at June 30, 2023, and December 31, 2022:

Schedule of Notes Payable

	June 30,			December 31,
	2023			2022

Economic Injury/Disaster Loans	$	661,035		$	661,035
Accrued interest		38,098			45,541
Total principal and accrued interest		699,133			706,576
Less current portion		(39,876	)		(15,217	)
Non-current portion	$	659,257		$	691,359

Economic Injury Disaster Loans (EIDL):

In 2020 and 2021, the Company received an aggregate of $650,000 of proceeds applicable to two loans administered by the Small Business Administration (“SBA”) as disaster loan assistance under the Covid-19 Economic Injury Disaster Loan (EIDL) Program. On January 31, 2022, the Company assumed an additional $14,500 EIDL, and accrued interest of $900, as part of the consideration paid for the acquisition of GameIQ.

The loans bear interest at 3.75% per annum, with a combined repayment of principal and interest of $3,500 per month over a period of 30 years. As of June 30, 2023 and December 31, 2022, the note payable had a principal balance outstanding of $661,035 and $661,035 and accrued interest payable of $38,098 and $45,541 respectively.

7. Stockholder’s Deficit

Common Stock Transactions

Issuance of Common Stock on Sale of Common Stock

During the six months ended June 30, 2023, the Company received net proceeds of $2,005,000 for the sale of 1,002,500 shares of common stock at $2.00 per share, as part of a private placement.

Issuance of Common Stock on Conversion of Acquisition Note

On March 1, 2023, the principal and interest balance of approximately $1,770,000 for the Restaurant.com acquisition note payable (see Note 5) was converted into 554,859 shares of the Company’s common stock, and the note was retired.

Issuance of Restricted Stock to Directors

During the year ended December 31, 2022, the Company granted 720,000 of shares to members of the Company’s Board of Directors with a fair value of $360,000 or $0.50 per share. The shares vest over a two-year period from grant date. During the year ended December 31, 2022, the Company issued 240,000 of these shares of common stock with a fair value of $220,000 based upon its vesting term. As of December 31, 2022, the aggregate amount of unvested compensation related to this common stock was approximately $140,000. During the six months ended June 30, 2023, the Company issued the remaining 480,000 shares of common stock and recognized $140,000 of expense related to the vesting of restricted shares, leaving no remaining future vesting expense.

Issuance of Restricted Stock to Employees

During the year ended December 31, 2022, the Company granted 150,500 shares of the Company’s restricted stock to employees with a fair value $75,250 or $0.50 per share. The shares vest over a two-year period from grant date. During the year ended December 31, 2022, the Company issued 83,833 of these shares of restricted stock with a fair value of $55,620 based upon its vesting term. During the six months ended June 30, 2023, the Company issued the remaining 66,667 shares of common stock and recognized $19,445 of expense related to the vesting of restricted shares, leaving no remaining future vesting expense.

F-13

On April 1,2023, the Company granted 300,000 shares of the Company’s restricted stock with an aggregate fair value of $1,005,000, or $3.35 per share. 200,000 shares of the restricted stock were issued to the Company’s Chief Executive Officer, and 100,000 shares of the restricted stock were issued to other employees. The restricted stock grant vest 33% on the grant date, and 33% on each subsequent anniversary date. During the six months ended June 30, 2023, the Company recognized $418,750 of expense related to the vesting of restricted shares, leaving $586,250 remaining to be expensed upon vesting in future periods through March 31, 2025. During the six months ended June 30, 2023, the Company issued 100,000 of these shares of restricted stock with a fair value of $335,000 based upon its vesting term.

Issuance of Common Stock for Services

During the six months ended June 30, 2023, the Company issued 150,000 shares of common stock with a fair value of $523,500, or $3.49 per share, to a consultant for services rendered, which was fully expensed when granted.

Common Stock Issuable

At June 30, 2023 and December 31, 2022, 383,343 shares of common stock with an aggregate value of $383,000 have not been issued and are reflected as common stock issuable in the accompanying condensed consolidated financial statements.

Stock Options

A summary of stock options for the six months ended June 30, 2023, is as follows:

Summary of Stock Options

	Number of Options		Weighted Average Exercise Price
Balance outstanding, December 31, 2022		648,116		4.59
Options granted		95,000		3.35
Options exercised		-		-
Options expired or forfeited		-		-
Balance outstanding, June 30, 2023		743,116	$	4.43
Balance exercisable, June 30, 2023		548,686	$	5.30

On April 1, 2023, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, approved options exercisable into 95,000 shares to be issued to its employees. The 95,000 stock options had an exercise price of $3.35 per share, with vesting of 33% on date of issuance, and then 33% on each subsequent anniversary date. The stock options are exercisable at a weighted average price of $3.35 per share with an average life to expiration of approximately three years. The total fair value of these options at grant date was approximately $294,000, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $3.35 per share, expected term of 3.00 years, volatility of 203%, dividend rate of 0%, and weighted average risk-free interest rate of 2.61%.

The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award.

During the six months ended June 30, 2023, the Company recognized $163,990 of compensation expense relating to vested stock options. As of June 30, 2023, the aggregate amount of unvested compensation related to stock options was approximately $229,881, which will be recognized as an expense as the options vest in future periods through March 31, 2025.

The weighted average remaining contractual life of common stock options outstanding and exercisable at June 30, 2023 was 5.53 years. Based on a fair market value of $3.00 per share on June 30, 2023, the intrinsic value attributed to exercisable but unexercised common stock options was $591,936 at June 30, 2023.

8. Contingencies

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, there are no such legal proceeding that are pending against the Company or that involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on the Company’s business or financial condition.

9. Subsequent Events

On August 18, 2023, RDE entered into an Agreement and Plan of Merger with CardCash Exchange, Inc., (“CardCash”) a leading secondary gift card exchange. RDE, subject to a number of closing conditions, including that it meet the listing standards for the Nasdaq Capital Market, will acquire the business of CardCash for (i) $2,000,000 of which $1,000,000 will be paid at the future closing of the transaction out of existing cash, and $1,000,000 will be paid in the form a promissory note due and payable on the second anniversary of the future closing date, and (ii) the issuance of 6,108,077 restricted shares of RDE’s common stock to the shareholders of CardCash with a fair value on August 18, 2023, of approximately $27.7 million, which would currently represents approximately 37% of RDE’s issued and outstanding shares of common stock after the future closing of the merger. Following the closing of the CardCash merger, CardCash will become a wholly owned subsidiary of RDE. The acquisition is targeted to close by the end of 2023. This transaction will be accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged will be recorded at estimated fair values on the date of closing of the acquisition.

F-14

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

Management’s Discussion and Analysis of Financial Condition and Results of Operations is designed to provide a reader of the financial statements with a narrative report on our financial condition, results of operations, and liquidity. This discussion and analysis should be read in conjunction with the attached unaudited Condensed Consolidated Financial Statements and notes thereto and our Annual Report on Form 10-K for the year ended December 31, 2022, including the audited Consolidated Financial Statements and notes thereto. The following discussion contains forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations, and intentions. Our actual results could differ materially from those discussed in the forward-looking statements. Please also see the cautionary language at the beginning of this Quarterly Report regarding forward-looking statements.

Business Overview

Restaurant.com is a pioneer in the restaurant deal space and the nation’s largest restaurant-focused digital deals brand. Founded in 1999, we connect digital consumers, businesses, and communities offering dining and merchant deal options nationwide at over 182,500 restaurants and retailers to over 7.8 million customers. Our 12,500 core restaurants and 170,000 Dining Discount Pass restaurants and retailers extend nationwide. Our top three B2C markets are New York, Chicago and Los Angeles.

We derive our revenue from transactions in which we sell discount certificates for restaurants on behalf of third-party restaurants. Approximately 9-13 days each month we email our customers offers for restaurant discounts based on location and personal preferences. Consumers also access our deals directly through our websites and mobile applications. A typical restaurant discount deal might offer a $25 discount that can be used toward a $50 purchase at a restaurant. Additional deals include discounted pricing at theaters, movies or other merchants. Customers purchase restaurant deals from us and redeem them with our merchant partners. We charge, and only collect, a service fee from our customers which allows them to download the discount certificates and redeem them at the restaurant. We receive no revenue or commission from the restaurants offering the discount deals.

We derive our revenue from transactions in which we sell complimentary entertainment and travel offerings and consumer products on behalf of third-party merchants. Approximately 9-13 days each month we email our customers offers for discounted experiences and products based on location and personal preferences. Consumers also access our deals directly through our websites and mobile applications. Those discounted experiences and products generally involve a customer’s purchase of a voucher through one of our websites that can be redeemed with a third-party merchant for services or goods (or for discounts on services and goods). Revenue from those transactions is reported on a net basis and equals the purchase price received from the customer for the voucher less an agreed upon portion of the purchase price paid by us to our partners.

Through our websites, www.restaurant.com, www.specials.restaurant.com, and mobile iOS and Android apps, we provide affordable dining and entertainment experiences. In addition to purchasing restaurant discount certificates, entertainment and travel deals and consumer products as well as company gift card redemption, our website and mobile platform provide additional information to assist the customer and encourage return visits to our websites, including restaurant menus, entrée pricing, mapping and directions, and extensive filtering options, including most popular, cuisine type and “Deals Near Me” for nearby restaurants. Paperless restaurant certificate redemption and validation can also occur on our mobile platforms. During the year ended December 31, 2022 , there were an average of 700,000 unique visitors per month to our digital platforms including our mobile and Specials offerings. Since the launch of our mobile apps in 2012, mobile has grown from zero to 49% of our B2C revenue and over 60% of the B2C orders with over 6.4 million downloads of our apps for the year ended December 31, 2022.

Our B2B sales program has grown significantly since its introduction in 2004 and comprises 50% of revenue. Our high-value, low-cost features enable businesses to use Restaurant.com Gift Cards to entice new and existing customers to increase sales, promote customer satisfaction and incent desired behavior. The availability of use in every market, features like “never expire” and online exchange, and use by every customer demographic fit every business’s customer base; features no other incentive product can match.

In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and the related adverse public health developments, have adversely affected work forces, economies and financial markets globally. The outbreak has negatively impacted our revenues as a result of the temporary closures of restaurants throughout the United States where our discount certificates and Discount Dining Passes are accepted and where dining is being restricted to outdoor locations or to capacity constraints for indoor dining. We expect that for the next several months, as the virus continues to limit visits to restaurants and as many prospective patrons choose to order delivery of meals from restaurants or take advantage of picking-up meals from restaurants, to continue to negatively impact our revenues from purchase of our discount certificates, since they can only be redeemed when dining in the restaurants. In addition, our dining certificates are not accepted for payment by third-party platforms that facilitate ordering and delivery of food on-demand. As the COVID-19 pandemic appears to be abating, we expect an improvement in our revenues in fiscal 2023.

Inflation

Global inflation also increased during 2021 and in 2022. The Russia and Ukraine conflict and other geopolitical conflicts, as well as related international response, have exacerbated inflationary pressures, including causing increases in the price for goods and services and global supply chain disruptions, which have resulted and may continue to result in shortages in food products, materials and services. Such shortages have resulted and may continue to result in inflationary cost increases for labor, fuel, food products, materials and services, and could continue to cause costs to increase as well as result in the scarcity of certain materials. We cannot predict any future trends in the rate of inflation or other negative economic factors or associated increases in our operating costs and how that may impact our business. To the extent we and the restaurant customers we service are unable to recover higher operating costs resulting from inflation or otherwise mitigate the impact of such costs on our and their business, our revenues and gross profit could decrease, and our financial condition and results of operations could be adversely affected.

Going Concern

During the six months ended June 30, 2023, we incurred a net loss of $2,265,602, utilized cash in operations of $981,092, and had a stockholders’ deficiency of $273,935 as of June 30, 2023. At June 30, 2023, we had cash of $2,134,182 available to fund its operations, including expansion plans, and to service its debt.

Our condensed consolidated financial statements have been presented on the basis that it will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have experienced operating losses and negative operating cash flows during 2022 and 2021. We have financed our working capital requirements through borrowings from various sources and the sale of our equity securities.

Our operations have been significantly and negatively impacted by the COVID-19 pandemic. Due to the uncertain and rapidly evolving nature of current conditions around the world, we are unable to predict accurately the impact that the COVID-19 pandemic will have on its business going forward. We expect the COVID-19 pandemic and its effects to continue to have a significant adverse impact on its business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period of time.

As a result, management has concluded that there is substantial doubt about our ability to continue as a going concern. The Company’s independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2022, has also expressed substantial doubt about the Company’s ability to continue as a going concern. The Company’s consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company’s ability to continue as a going concern is dependent upon its ability to raise additional debt or equity capital to fund its business activities and to ultimately achieve sustainable operating revenues and profitability.

As market conditions present uncertainty as to the Company’s ability to secure additional funds, there can be no assurances that the Company will be able to secure additional financing on acceptable terms, as and when necessary to continue to conduct operations. There is also significant uncertainty as to the effect that the coronavirus may have on the Company’s business plans and the amount and type of financing available to the Company in the future.

If the Company is unable to obtain the cash resources necessary to satisfy the Company’s ongoing cash requirements, the Company could be required to scale back its business activities or to discontinue its operations entirely.

Results of Operations - Three months ended June 30, 2023, compared to three months ended June 30, 2022

Revenue

In the following table, revenue is disaggregated by our divisions and type of revenue for the three months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Three Months Ended June 30, 2023
Business to consumer (B2C)	$	165,196	$	74,423	$	36,362	$	276,981
Business to business (B2B)		444,507		-		-		444,507
Other		-		-		-		-
Total	$	609,703	$	74,423	$	36,362	$	721,488

Three Months Ended June 30, 2022
Business to consumer (B2C)	$	157,774	$	72,874	$	42,632	$	273,280
Business to business (B2B)		1,524,934		-		-		1,524,934
Other		12,940		-		-		12,940
Total	$	1,695,648	$	72,874	$	42,632	$	1,811,154

Revenue for the three months ended June 30, 2023, was $721,488, a decrease of approximately $1,089,666 or 60%, as compared to $1,811,154 in the same period of the prior year.

During the three months ended June 30, 2022, we entered into an agreement with a national mobile telephone provider (“Provider”) to provide our coupon codes to the Provider’s mobile phone application user that are verified nurses and teachers. Each Provider participant who redeemed the promotion received a dining credit of $25.00 and two movie tickets. The dining credit can be redeemed for a certificate at any of our participating local restaurants. The movie tickets provided by us are through Fandango for use at participating theatres. The agreement started and ended in May 2022, and we earned $1,106,447 in revenues from this agreement during the three months ended June 30, 2022. No similar Provider agreement activity occurred during the current year period.

Operating Expenses

Cost of Revenues

Cost of revenues consists primarily of the costs incurred to generate revenues, consisting primarily of transaction fees. Management expects these costs to increase in the future as the Company focuses on increasing its revenues.

Costs of revenues decreased to $101,389 during the three months ended June 30, 2023, as compared to $497,733 during the three months ended June 30, 2022. During the three months ended June 30, 2023 and 2022, our cost of revenues, as a percentage of revenue, was 14% and 27%, respectively. The decrease in cost of revenues, as a percentage of revenue, was from Fandango movie ticket costs related to the agreement with our Provider discussed above. No similar Provider agreement activity occurred during the current year period.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist of costs incurred to identify, communicate with and evaluate potential customers and related business opportunities, and compensation to officers and directors, as well as legal and other professional fees, lease expense, and other general corporate expenses. Management expects selling, general and administrative expenses to increase in future periods as the Company adds personnel and incurs additional costs related to its operation as a public company, including higher legal, accounting, insurance, compliance, compensation and other costs.

Selling, general and administrative expenses were $2,453,615 during the three months ended June 30, 2023, as compared to $1,475,455 during the three months ended June 30, 2022, an increase of $978,161. The increase was related mainly to a $950,533 increase in stock-based compensation for directors, employees and contractors in the current period as compared to the prior year. Excluding stock-based compensation, our selling, general and administrative expenses increased $27,628 during the current period, related to general changes in our business and operations.

Amortization of Intangible Assets

Amortization of intangible assets relates to our acquisition of GameIQ effective February 28, 2022, and Restaurant.com, effective January 30, 2020. Amortization of intangible assets was $0 and $31,044 during the three months ended June 30, 2023 and 2022, respectively.

Loss from Operations

For the three months ended June 30, 2023, we incurred a loss from operations of $1,833,516, as compared to a loss from operations of $193,078 for the three months ended June 30, 2022. The increase in loss from operations was due to the decrease in revenue and increased operating expenses discussed above.

Other Income (Expenses)

The Company had other expenses of $7,170 for the three months ended June 30, 2023, as compared to other expense of $512 for the three months ended June 30, 2022. Other income for the three months ended June 30, 2022, consisted of a gain on vender settlement of $28,600, which did not occur in the current year period. Interest expense was $7,170 for the three months ended June 30, 2023, as compared to interest expense of $29,112 for the three months ended June 30, 2022.

Net Loss

We realized a net loss of $1,840,686 for the three months ended June 30, 2023, as compared to net loss of $193,590 for the three months ended June 30, 2022. The change to net loss was primarily from recording a gain on legal vender settlement of $28,600, which did not occur in the current year period, offset by the decrease in revenue and increased operating expenses during the three months ended June 30, 2023, as compared to the prior year period.

Results of Operations - Six months ended June 30, 2023, compared to six months ended June 30, 2022

Revenue

In the following table, revenue is disaggregated by our divisions and type of revenue for the six months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Six Months Ended June 30, 2023
Business to consumer (B2C)	$	434,374	$	135,693	$	89,590	$	659,657
Business to business (B2B)		873,542		-		-		873,542
Other		-		-		-		-
Total	$	1,307,916	$	135,693	$	89,590	$	1,533,199

Six Months Ended June 30, 2022
Business to consumer (B2C)	$	355,012	$	149,602	$	91,463	$	596,077
Business to business (B2B)		1,953,709		-		-		1,953,709
Other		21,148		-		-		21,148
Total	$	2,329,869	$	149,602	$	91,463	$	2,570,934

Revenue for the six months ended June 30, 2023, was $1,533,199, a decrease of approximately $1,037,735 or 40%, as compared to $2,570,934 in the same period of the prior year.

During the six months ended June 30, 2022, we entered into an agreement with a national mobile telephone provider (“Provider”) to provide our coupon codes to the Provider’s mobile phone application user that are verified nurses and teachers. Each Provider participant who redeemed the promotion received a dining credit of $25.00 and two movie tickets. The dining credit can be redeemed for a certificate at any of our participating local restaurants. The movie tickets provided by us are through Fandango for use at participating theatres. The agreement started and ended in May 2022, and we earned $1,106,447 in revenues from this agreement during the six months ended June 30, 2022. No similar Provider agreement activity occurred during the current year period.

Operating Expenses

Cost of Revenues

Costs of revenues decreased to $196,266 during the six months ended June 30, 2023, as compared to $598,298 during the six months ended June 30, 2022. During the six months ended June 30, 2023 and 2022, our cost of revenues, as a percentage of revenue, was 13% and 23%, respectively. The decrease in cost of revenues, as a percentage of revenue, was from Fandango movie ticket costs related to the agreement with our Provider discussed above. No similar Provider agreement activity occurred during the current year period.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $3,569,634 during the six months ended June 30, 2023, as compared to $2,912,050 during the six months ended June 30, 2022, an increase of $657,584. The decrease was related mainly to a $728,209 increase in stock-based compensation for directors, employees and contractors in the current period as compared to the prior year. Excluding stock-based compensation, our selling, general and administrative expenses decreased $70,625 during the current period, related to general changes in our business and operations.

Amortization of Intangible Assets

Amortization of intangible assets relates to our acquisition of GameIQ effective February 28, 2022, and Restaurant.com, effective January 30, 2020. Amortization of intangible assets was $0 and $49,524 during the six months ended June 30, 2023 and 2022, respectively.

Loss from Operations

For the six months ended June 30, 2023, we incurred a loss from operations of $2,232,701, as compared to a loss from operations of $988,938 for the six months ended June 30, 2022. The increase in loss from operations was due to the decrease in revenue offset by the decreased operating expenses discussed above.

Other Income (Expenses)

The Company had other expenses of $32,901 for the six months ended June 30, 2023, as compared to other income of $1,067,429 for the six months ended June 30, 2022. Other income for the six months ended June 30, 2022, consisted of a gain on legal settlement of $69,000, a gain on vender settlement of $28,600, and a gain from the forgiveness of a government assistance loan of $1,025,535, all of which did not occur in the current year period. Interest expense was $32,901 for the six months ended June 30, 2023, as compared to interest expense of $55,706 for the six months ended June 30, 2022.

Net Loss

We realized a net loss of $2,265,602 for the six months ended June 30, 2023, as compared to generating a net income of $78,491 for the six months ended June 30, 2022. The change to net loss from net income was primarily from recording a gain on legal settlement of $69,000, a gain on vendor settlement of $28,600, and a gain from the forgiveness of a government assistance loan of $1,025,535, which did not occur in the current year period, offset by the decrease in revenue and increased operating expenses during the six months ended June 30, 2023, as compared to the prior year period.

Liquidity and Capital Resources

The ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan. As a result, management has concluded that there is substantial doubt about our ability to continue as a going concern. Our independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2022, has also expressed substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

At June 30, 2023, we had cash on hand in the amount of $2,134,182. Our continuation as a going concern is dependent upon its ability to obtain necessary debt or equity financing to continue operations until it begins generating positive cash flow. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. Even if we are able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in case or equity financing.

The Company’s consolidated statements of cash flows as discussed herein are presented below.

	Six Months Ended June 30,
	2023			2022

Net cash used in operating activities	$	(981,092	)	$	(35,910	)
Net cash provided by investing activities		-			12,805
Net cash provided by financing activities		1,992,316			250,000
Net increase in cash	$	1,011,224		$	226,985

Operating Activities

Cash provided by or used in operating activities primarily consists of net loss adjusted for certain non-cash items, including amortization of intangible assets, impairment of intangible assets, gain on forgiveness of government assistance notes payable, and the fair value of common stock issued for directors, employees, and service providers, and the effect of changes in working capital and other activities.

Cash used in operating activities for the six months ended June 30, 2023 was approximately $981,092 and consisted of a net loss of $2,265,602, adjustments for non-cash stock based compensation, which totaled $1,265,685, and $18,822 in changes in working capital and other activities.

Cash used in operating activities for the six months ended June 30, 2022 was approximately $35,910 and consisted of a net income of approximately $78,491, adjustments for non-cash items, including amortization of intangible assets, gain on legal settlement, gain on forgiveness of government assistance notes payable, fair value of vested stock options, and the fair value of common stock and issued for directors, employees, and service providers, which in the aggregate total $478,098, and $363,697 in changes in working capital and other activities.

Investing Activities

The Company had no investing activities for the six months ended June 30, 2023. Cash provided by investing activities for the six months ended June 30, 2022 was $12,805 and was cash received on the acquisition of GameIQ.

Financing Activities

Cash provided by financing activities for the six months ended June 30, 2023 was $1,992,316, which was from proceeds of $2,005,000 from the sale of common stock, offset by $12,684 of principal payments on our acquisition notes payable.

For the six months ended June 30, 2022, cash provided by financing activities was $250,000, which was from the sale of common stock.

Convertible debt assumed upon reverse merger consists of the following at June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022

Total principal balance	$	20,000	$	20,000
Accrued interest		18,637		17,137
Total principal and accrued interest	$	38,637	$	37,137

On November 5, 2018, the Company completed a merger agreement dated October 23, 2018 with Incumaker, Inc., whereby all of the shareholders of the Company exchanged their shares of common stock in exchange for shares of Incumaker, Inc. common stock. The merger was treated as a reverse merger and recapitalization of the Company for financial accounting purposes. In conjunction with the merger agreement with Incumaker, Inc., the Company assumed certain outstanding convertible notes payable. The notes payable had interest rates ranging from 8% to 22% per annum. At June 30, 2023 and December 31, 2022, the remaining convertible debt assumed in the transaction had a principal balance outstanding of $20,000, and accrued interest payable of $18,637 and $17,137, respectively. As of June 30, 2023, convertible debt assumed in the transaction, including accrued interest payable, was convertible at $1.50 per share into 25,758 shares of the Company’s common stock.

Convertible Debt Assumed Upon Reverse Merger - Past Due

Convertible debt assumed upon reverse merger consists of the following at June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022

Total principal balance	$	20,000	$	20,000
Accrued interest		18,637		17,137
Total principal and accrued interest	$	38,637	$	37,137

In 2018, the Company merged with Incumaker, Inc. The merger was treated as a reverse merger and recapitalization of the Company for financial accounting purposes. In conjunction with the merger with Incumaker, Inc., the Company assumed certain outstanding convertible notes payable. At June 30, 2023 and December 31, 2022, the remaining convertible debt assumed in the transaction had a principal balance outstanding of $20,000, was due July 2017, interest at 15% per annum, and accrued interest payable of $18,637 and $17,137, respectively. As of June 30, 2023, the convertible debt, including accrued interest payable, was convertible at $1.50 per share into 25,758 shares of the Company’s common stock.

Acquisition Notes Payable

On February 1, 2022, two notes payable for the purchase of GameIQ was issued, one for $78,813. and another for $62,101. RDE, Inc. promises to pay to the order of the holders the principal amounts together with annual interest of 1%, which shall be paid upon the earlier of (i) nine (9) equal biannual installments with the first installment due on the nine-month anniversary of February 1, 2022, and the final payment due February 1, 2025. In the event of default, the notes to the Holders are secured, in the manner that such payment to be made in cash or shares of the RDE, Inc.’s common stock at the election of the holders. These Notes may be prepaid in whole or in part by RDE, Inc.

Government Assistance Notes Payable-SBA Loans

Government Assistance Notes Payable consists of the following at June 30, 2023, and December 31, 2022:

	June 30,			December 31,
	2023			2022

Economic Injury/Disaster Loans	$	661,035		$	661,035
Accrued interest		38,098			45,541
Total principal and accrued interest		699,133			706,576
Less current portion		(39,876	)		(15,217	)
Non-current portion	$	659,257		$	691,359

Economic Injury Disaster Loans (EIDL):

Off-Balance Sheet Arrangements

None.

Critical Accounting Policies and Estimates

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates under different assumptions or conditions. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates include those related to assumptions used in estimates for reserves of uncollectible accounts, , depreciable lives of property and equipment, analysis of impairments of recorded long-term tangible and intangible assets, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services. There were no changes to our critical accounting policies described in the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, that impacted our condensed consolidated financial statements and related notes included herein.

Recently Issued Accounting Pronouncements

See Note 2 of the Notes to Condensed Financial Statements for a discussion of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

A smaller reporting company is not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure control and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of June 30, 2023, the period covered in this Report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Inherent Limitations on the Effectiveness of Controls

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control systems are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of internal control over financial reporting can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been or will be detected.

These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The following exhibits are filed herewith as a part of this report.

Exhibit Number		Description

3.1		Certificate of Incorporation of Incumaker, Inc. (1)

3.2		Certificate of Amendment to Certificate of Incorporation (1)

3.3		Second and Restated Bylaws (1)

6.1		Executive Employment Agreement dated March 29, 2019 between RDE, Inc. (f/k/a Incumaker, Inc.) and Ketan Thakker (1)

10.1		Asset Purchase Agreement dated March 1, 2020 between RDE, Inc. (f/k/a uBid Holdings, Inc.) and Restaurant.com, Inc. (1)

10.2		Agreement and Plan of Merger dated January 31, 2022 by and among RDE, Inc., GameIQ Acquisition Corp. and GameIQ, Inc. (2)

31.1		Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)

31.2		Certification by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)

32.1**		Section 1350 Certification of Chief Executive Officer

32.2**		Section 1350 Certification of Chief Financial Officer

101.INS*		Inline XBRL Instance Document

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

(1)	Previously filed as an Exhibit to the Company’s Form 1-A filed with the Commission on November 17, 2020.

(2)	Previously filed as an Exhibit to the Company’s Form 8-K filed with the Commission on February 2, 2022.

	*	Filed herewith
	**	The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and are not deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, irrespective of any general incorporation language contained in such filing.

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.

		RDE, INC.

Date:	August 21, 2023	By:	/s/ Ketan Thakker
			Ketan Thakker
			President, Chief Executive Officer and Principal Financial Officer

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

I, Ketan Thakker, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of RDE, 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 presented in this 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 13a-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 report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial 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 involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:

August 21, 2023

/s/ Ketan Thakker

Ketan Thakker

Chief Executive Officer

(Principal Executive Officer)

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

I, Ketan Thakker, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of RDE, 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 presented in this 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 13a-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 report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial 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 involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 21, 2023	/s/ Ketan Thakker
		Ketan Thakker
		Principal Financial and Accounting Officer

Exhibit 32.1

Certification of Chief Executive Officer

Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code

Pursuant to U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned Chief Executive Officer of RDE, Inc. (the “Company”) does hereby certify, to the best of such officer’s knowledge, that:

	1.	The Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:

August 21, 2023

/s/ Ketan Thakker

Ketan Thakker

President and Chief Executive Officer

(Principal Executive Officer)

The certifications set forth above are being furnished as an exhibit solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to RDE, Inc. and will be retained by RDE, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

Certification of Chief Financial Officer

Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code

Pursuant to U.S.C. Section 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned Principal Financial Officer of RDE, Inc. (the “Company”) does hereby certify, to the best of such officer’s knowledge, that:

	1.	The Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:

August 21, 2023

/s/ Ketan Thakker

Ketan Thakker

Chief Financial Officer

(Principal Financial and Accounting Officer)

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-56417
Entity Registrant Name	RDE, INC.
Entity Central Index Key	0001760233
Entity Tax Identification Number	45-2482974
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1100 Woodfield Road
Entity Address, Address Line Two	Suite 510
Entity Address, City or Town	Schaumburg
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60173
City Area Code	(847)
Local Phone Number	506-9680
Title of 12(b) Security	Common Stock, par value $.001
Trading Symbol	RSTN
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,506,404

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 2,134,182	$ 1,122,958
Accounts receivable	138,517	209,808
Deposits with credit card processor	87,237	87,237
Prepaid expenses and other current assets	165,516	102,193
Total current assets	2,525,452	1,522,196
Operating lease right of use asset, net	286,418	52,608
Deposits	7,500
Total assets	2,819,370	1,574,804
Current liabilities:
Accounts payable	1,315,192	1,206,615
Accrued expenses	470,734	516,882
Deferred revenue	139,781	217,311
Government assistance notes payable-SBA loans, current portion	39,876	15,217
Operating lease liability, current portion	75,621	59,328
Convertible note payable, past due, including accrued interest of $18,637 and $17,137, respectively	38,637	37,137
Notes payable, acquisitions, current portion, including accrued interest of zero and $251,507, respectively	34,066	1,798,478
Total current liabilities	2,113,907	3,850,968
Notes payable, acquisitions, including accrued interest of $639 and $687, respectively	81,676	81,494
Government assistance notes payable -SBA loans, including accrued interest of $38,098 and $45,541, respectively, net of current portion	659,257	691,359
Operating lease liability, net of current portion	238,465
Total liabilities	3,093,305	4,623,821
Commitments and Contingencies
Stockholders’ deficiency:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value, 750,000,000 shares authorized; 16,506,404 and 14,152,378 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	16,506	14,153
Additional paid-in-capital	63,161,577	58,123,246
Common stock issuable, 383,343 shares	383,343	383,343
Accumulated deficit	(63,835,361)	(61,569,759)
Total stockholders’ deficiency	(273,935)	(3,049,017)
Total liabilities and stockholders’ deficiency	$ 2,819,370	$ 1,574,804

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares outstanding	16,506,404	14,152,378
Common stock, shares issued	16,506,404	14,152,378
Common stock issuable, shares	383,343	383,343
Convertible Debt [Member]
Short-Term Debt [Line Items]
Interest payable current	$ 18,637	$ 17,137
Acquisition Note Payable [Member]
Short-Term Debt [Line Items]
Interest payable current	0	251,507
Interest payable non current	639	687
Government Assistance Note Payable [Member]
Short-Term Debt [Line Items]
Interest payable non current	$ 38,098	$ 45,541

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues	$ 721,488	$ 1,811,154	$ 1,533,199	$ 2,570,934
Operating expenses
Cost of revenues	101,389	497,733	196,266	598,298
Selling, general and administrative expenses	2,453,615	1,475,455	3,569,634	2,912,050
Amortization of intangible assets		31,044		49,524
Total operating expenses	2,555,004	2,004,232	3,765,900	3,559,872
Loss from operations	(1,833,516)	(193,078)	(2,232,701)	(988,938)
Other income (expenses)
Interest	(7,170)	(29,112)	(32,901)	(55,706)
Gain on legal settlement				69,000
Gain on vendor settlement		28,600		28,600
Gain from forgiveness of government assistance notes payable				1,025,535
Total other income (expenses)	(7,170)	(512)	(32,901)	1,067,429
Net income (loss)	$ (1,840,686)	$ (193,590)	$ (2,265,602)	$ 78,491
Net earnings/(loss) per share – basic	$ (0.12)	$ (0.01)	$ (0.15)	$ 0.01
Net earnings/(loss) per share –diluted	$ (0.12)	$ (0.01)	$ (0.15)	$ 0.01
Weighted average common shares outstanding – basic	15,983,909	14,090,269	15,167,932	13,391,965
Weighted average common shares outstanding – diluted	15,983,909	14,090,269	15,167,932	14,321,975

Condensed Consolidated Statements of Changes in Stockholders' Deficiency (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Balance, December 31, 2021	$ (1,651,272)	$ (2,173,123)	$ (3,049,017)	$ (3,019,739)	$ (3,019,739)
Fair value of vested options	145,946	18,495	163,990	119,496
Fair value of vested restricted stock units for directors	110,000		$ 140,000
Fair value of vested restricted stock units for directors, shares			480,000
Fair value of vested restricted stock units for employees	434,027		$ 438,194
Issuance of common stock for services	523,500	210,509	523,500	210,509
Issuance of common stock for cash	2,005,000	250,000	2,005,000	250,000
Net income (loss)	(1,840,686)	(193,590)	(2,265,602)	78,491
Balance	(273,935)	(1,817,372)	(273,935)	(1,817,372)	(3,049,017)
Issuance of common stock on conversion of acquisition note			1,770,000
Fair value of vested restricted stock units		33,937		45,554
Issuance of common stock for vendor balance		36,400		36,400
Issuance of common stock to employees				161,917
Issuance of common stock for GameIQ acquisition				300,000
Common Stock [Member]
Balance, December 31, 2021	$ 14,707	$ 13,803	$ 14,153	$ 12,880	$ 12,880
Balance, shares	14,707,237	13,803,261	14,152,378	12,879,428	12,879,428
Fair value of vested options
Fair value of vested restricted stock units for directors	$ 480		$ 480
Fair value of vested restricted stock units for directors, shares	480,000		480,000
Fair value of vested restricted stock units for employees	$ 166		$ 166
Fair value of vested restricted stock units for employees, shares	166,667		166,667
Issuance of common stock for services	$ 150	$ 190	$ 150	$ 190
Issuance of common stock for services, shares	150,000	189,784	150,000	189,784
Issuance of common stock for cash	$ 1,003	$ 100	$ 1,003	$ 100
Issuance of common stock for cash, shares	1,002,500	100,000	1,002,500	100,000
Net income (loss)
Balance	$ 16,506	$ 14,119	$ 16,506	$ 14,119	$ 14,153
Balance, shares	16,506,404	14,119,045	16,506,404	14,119,045	14,152,378
Issuance of common stock on conversion of acquisition note			$ 554
Issuance of common stock on conversion of acquisition note, shares			554,859
Fair value of vested restricted stock units
Fair value of vested restricted stock units , shares				83,833
Issuance of common stock for vendor balance		$ 26		$ 26
Issuance of common stock for vendor balance, shares		26,000		26,000
Issuance of common stock to employees				$ 323
Issuance of common stock to employees, shares			66,667	240,000
Issuance of common stock for GameIQ acquisition				$ 600
Issuance of common stock for gameIQ acquisition, shares				600,000
Common Stock Issuable [Member]
Balance, December 31, 2021	$ 383,343	$ 383,343	$ 383,343	$ 383,343	$ 383,343
Balance, shares	383,343	383,343	383,343	383,343	383,343
Fair value of vested options
Fair value of vested restricted stock units for directors
Fair value of vested restricted stock units for employees
Issuance of common stock for services
Issuance of common stock for cash
Net income (loss)
Balance	$ 383,343	$ 383,343	$ 383,343	$ 383,343	$ 383,343
Balance, shares	383,343	383,343	383,343	383,343	383,343
Issuance of common stock on conversion of acquisition note
Fair value of vested restricted stock units
Issuance of common stock for vendor balance
Issuance of common stock to employees
Issuance of common stock for GameIQ acquisition
Additional Paid-in Capital [Member]
Balance, December 31, 2021	$ 59,945,353	57,448,885	58,123,246	56,875,273	$ 56,875,273
Fair value of vested options	145,496	18,495	163,990	119,496
Fair value of vested restricted stock units for directors	109,520		139,520
Fair value of vested restricted stock units for employees	433,861		438,028
Issuance of common stock for services	523,350	210,319	523,350	210,319
Issuance of common stock for cash	2,003,997	249,900	2,003,997	249,900
Net income (loss)
Balance	63,161,577	57,997,910	63,161,577	57,997,910	58,123,246
Issuance of common stock on conversion of acquisition note			1,769,446
Fair value of vested restricted stock units		33,937		45,554
Issuance of common stock for vendor balance		36,374		36,374
Issuance of common stock to employees				161,594
Issuance of common stock for GameIQ acquisition				299,400
Retained Earnings [Member]
Balance, December 31, 2021	(61,994,675)	(60,019,154)	(61,569,759)	(60,291,235)	(60,291,235)
Net income (loss)	(1,840,686)	(193,590)	(2,265,602)	78,491
Balance	$ (63,835,361)	$ (60,212,744)	$ (63,835,361)	$ (60,212,744)	$ (61,569,759)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,265,602)	$ 78,491
Adjustments to reconcile net income (loss) to net cash used in operating activities
Amortization of intangible assets		49,524
Fair value of vested stock options	163,990	119,496
Fair value of vested restricted stock for directors	140,000	45,554
Fair value of vested restricted stock for employees	438,195	161,917
Fair value of common stock issued for services	523,500	210,509
Gain on vendor settlement		(28,600)
Gain on legal settlement		(69,000)
Gain on forgiveness of government assistance note payable		(1,025,535)
Changes in operating assets and liabilities:
Accounts receivable	71,291	72,634
Prepaid expenses and other current assets	(63,323)	(39,697)
Deposits	(7,500)
Decrease in operating lease right of use assets	59,988	58,037
Accounts payable	108,575	274,910
Accrued expenses	(46,148)	88,682
Deferred revenue	(77,530)	(31,937)
Accrued interest payable	12,512	55,706
Operating lease liability	(39,040)	(56,601)
Net cash used in operating activities	(981,092)	(35,910)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired on GameIQ acquisition		12,805
Net cash provided by investing activities		12,805
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock for cash	2,005,000	250,000
Repayment of acquisition obligation	(12,684)
Net cash provided by financing activities	1,992,316	250,000
Net increase in cash and cash equivalents	1,011,224	226,895
Cash and cash equivalents beginning of period	1,122,958	1,930,325
Cash and cash equivalents end of period	2,134,182	2,157,220
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid
Taxes paid
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued on conversion of acquisition note principal and interest	1,770,000
Operating lease right of use asset and related lease liability	293,798
Goodwill and intangible assets acquired from acquisition of GameIQ		443,509
Fair value of common shares issued on acquisition of GameIQ		300,000
Notes payable issued from acquisition of GameIQ		140,914
Government assistance notes payable and accrued interest assumed on acquisition of GameIQ		15,400
Fair value of common shares issued in settlement of vendor payable		$ 36,400

Basis of Presentation

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2023.

Going Concern

COVID-19

Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Use of Estimates

Revenue Recognition

Restaurant Coupons revenues

Sale of Restaurant Coupons

Sale of Promotional Gift Card Revenue

Travel, Vacation and Merchandise Revenues

Advertising Revenues

In the following table, revenue is disaggregated by our divisions and type of revenue for the three months ended June 30, 2023 and 2022:

Schedule of Disaggregation of Revenue

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Three Months Ended June 30, 2023
Business to consumer (B2C)	$	165,196	$	75,423	$	36,362	$	276,981
Business to business (B2B)		444,507		-		-		444,507
Other		-		-		-		-
Total	$	609,703	$	75,423	$	36,362	$	721,488

Three Months Ended June 30, 2022
Business to consumer (B2C)	$	157,774	$	72,874	$	42,632	$	273,280
Business to business (B2B)		1,524,934		-		-		1,524,934
Other		12,940		-		-		12,940
Total	$	1,695,648	$	72,874	$	42,632	$	1,811,154

In the following table, revenue is disaggregated by our divisions and type of revenue for the six months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Six Months Ended June 30, 2023
Business to consumer (B2C)	$	453,374	$	135,693	$	89,590	$	659,657
Business to business (B2B)		873,542		-		-		873,542
Other		-		-		-		-
Total	$	1,307,916	$	135,693	$	89,590	$	1,533,199

Six Months Ended June 30, 2022
Business to consumer (B2C)	$	355,012	$	149,602	$	91,463	$	596,077
Business to business (B2B)		1,953,709		-		-		1,953,709
Other		21,148		-		-		21,148
Total	$	2,329,869	$	149,602	$	91,463	$	2,570,934

Business Combinations

Earnings (Loss) Per Share

	June 30, 2023		June 30, 2022
Convertible notes payable		25,758		23,758
Common stock issuable		383,343		-
Common stock warrants		-		20,667
Common stock options		743,116		648,116
Total		1,152,217		692,541

Stock-Based Compensation

Advertising Costs

Customer and Vendor Concentration

Fair Value of Financial Instruments

The three levels of the fair value hierarchy are as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Recent Accounting Pronouncements

Right-of-Use Assets and Operating Lease Liabilities

6 Months Ended

Jun. 30, 2023

Right-of-use Assets And Operating Lease Liabilities

Right-of-Use Assets and Operating Lease Liabilities

3. Right-of-Use Assets and Operating Lease Liabilities

The Company leases certain corporate office spaces under an operating lease agreement.

Convertible Note Payable- Past Due

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Convertible Note Payable- Past Due

4. Convertible Note Payable- Past Due

Convertible notes consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Convertible Debt

	June 30, 2023		December 31, 2022

Total principal balance	$	20,000	$	20,000
Accrued interest		18,637		17,137
Total principal and accrued interest	$	38,637	$	37,137

Notes Payable, Acquisitions

6 Months Ended

Jun. 30, 2023

Notes Payable Acquisitions

Notes Payable, Acquisitions

5. Notes Payable, Acquisitions

Notes payable, acquisitions consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Acquisition Notes Payable

	June 30,			December 31,
	2023			2022

GameIQ acquisition note payable	$	115,104		$	127,778
Restaurant.com acquisition note payable		-			1,500,000
Total principal balance		115,104			1,627,778
Accrued interest		638			252,194
Total principal and accrued interest		115,742			1,879,972
Less current portion		(34,066	)		(1,798,478	)
Non-current portion	$	81,676		$	81,494

GameIQ Acquisition Note Payable

Restaurant.com Note Payable

Government Assistance Notes Payable -SBA Loans

6 Months Ended

Jun. 30, 2023

Government Assistance Notes Payable -sba Loans

Government Assistance Notes Payable -SBA Loans

6. Government Assistance Notes Payable -SBA Loans

Government Assistance Notes Payable-SBA Loans consists of the following at June 30, 2023, and December 31, 2022:

Schedule of Notes Payable

	June 30,			December 31,
	2023			2022

Economic Injury/Disaster Loans	$	661,035		$	661,035
Accrued interest		38,098			45,541
Total principal and accrued interest		699,133			706,576
Less current portion		(39,876	)		(15,217	)
Non-current portion	$	659,257		$	691,359

Economic Injury Disaster Loans (EIDL):

Stockholder’s Deficit

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholder’s Deficit

7. Stockholder’s Deficit

Common Stock Transactions

Issuance of Common Stock on Sale of Common Stock

During the six months ended June 30, 2023, the Company received net proceeds of $2,005,000 for the sale of 1,002,500 shares of common stock at $2.00 per share, as part of a private placement.

Issuance of Common Stock on Conversion of Acquisition Note

Issuance of Restricted Stock to Directors

Issuance of Restricted Stock to Employees

Issuance of Common Stock for Services

Common Stock Issuable

Stock Options

A summary of stock options for the six months ended June 30, 2023, is as follows:

Summary of Stock Options

	Number of Options		Weighted Average Exercise Price
Balance outstanding, December 31, 2022		648,116		4.59
Options granted		95,000		3.35
Options exercised		-		-
Options expired or forfeited		-		-
Balance outstanding, June 30, 2023		743,116	$	4.43
Balance exercisable, June 30, 2023		548,686	$	5.30

Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies

8. Contingencies

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

9. Subsequent Events

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

Revenue Recognition

Revenue Recognition

Restaurant Coupons revenues

Sale of Restaurant Coupons

Sale of Promotional Gift Card Revenue

Travel, Vacation and Merchandise Revenues

Advertising Revenues

In the following table, revenue is disaggregated by our divisions and type of revenue for the three months ended June 30, 2023 and 2022:

Schedule of Disaggregation of Revenue

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Three Months Ended June 30, 2023
Business to consumer (B2C)	$	165,196	$	75,423	$	36,362	$	276,981
Business to business (B2B)		444,507		-		-		444,507
Other		-		-		-		-
Total	$	609,703	$	75,423	$	36,362	$	721,488

Three Months Ended June 30, 2022
Business to consumer (B2C)	$	157,774	$	72,874	$	42,632	$	273,280
Business to business (B2B)		1,524,934		-		-		1,524,934
Other		12,940		-		-		12,940
Total	$	1,695,648	$	72,874	$	42,632	$	1,811,154

In the following table, revenue is disaggregated by our divisions and type of revenue for the six months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Six Months Ended June 30, 2023
Business to consumer (B2C)	$	453,374	$	135,693	$	89,590	$	659,657
Business to business (B2B)		873,542		-		-		873,542
Other		-		-		-		-
Total	$	1,307,916	$	135,693	$	89,590	$	1,533,199

Six Months Ended June 30, 2022
Business to consumer (B2C)	$	355,012	$	149,602	$	91,463	$	596,077
Business to business (B2B)		1,953,709		-		-		1,953,709
Other		21,148		-		-		21,148
Total	$	2,329,869	$	149,602	$	91,463	$	2,570,934

Business Combinations

Business Combinations

Earnings (Loss) Per Share

Earnings (Loss) Per Share

	June 30, 2023		June 30, 2022
Convertible notes payable		25,758		23,758
Common stock issuable		383,343		-
Common stock warrants		-		20,667
Common stock options		743,116		648,116
Total		1,152,217		692,541

Stock-Based Compensation

Stock-Based Compensation

Advertising Costs

Advertising Costs

Customer and Vendor Concentration

Customer and Vendor Concentration

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The three levels of the fair value hierarchy are as follows:

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Schedule of Disaggregation of Revenue

In the following table, revenue is disaggregated by our divisions and type of revenue for the three months ended June 30, 2023 and 2022:

Schedule of Disaggregation of Revenue

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Three Months Ended June 30, 2023
Business to consumer (B2C)	$	165,196	$	75,423	$	36,362	$	276,981
Business to business (B2B)		444,507		-		-		444,507
Other		-		-		-		-
Total	$	609,703	$	75,423	$	36,362	$	721,488

Three Months Ended June 30, 2022
Business to consumer (B2C)	$	157,774	$	72,874	$	42,632	$	273,280
Business to business (B2B)		1,524,934		-		-		1,524,934
Other		12,940		-		-		12,940
Total	$	1,695,648	$	72,874	$	42,632	$	1,811,154

In the following table, revenue is disaggregated by our divisions and type of revenue for the six months ended June 30, 2023 and 2022:

Sales Channels	Restaurant Coupons		Sale of Travel, Vacation and Merchandise		Advertising		Total

Six Months Ended June 30, 2023
Business to consumer (B2C)	$	453,374	$	135,693	$	89,590	$	659,657
Business to business (B2B)		873,542		-		-		873,542
Other		-		-		-		-
Total	$	1,307,916	$	135,693	$	89,590	$	1,533,199

Six Months Ended June 30, 2022
Business to consumer (B2C)	$	355,012	$	149,602	$	91,463	$	596,077
Business to business (B2B)		1,953,709		-		-		1,953,709
Other		21,148		-		-		21,148
Total	$	2,329,869	$	149,602	$	91,463	$	2,570,934

Schedule of Anti- dilutive Securities Excluded from Computation of Earning Loss Per Share

	June 30, 2023		June 30, 2022
Convertible notes payable		25,758		23,758
Common stock issuable		383,343		-
Common stock warrants		-		20,667
Common stock options		743,116		648,116
Total		1,152,217		692,541

Convertible Note Payable- Past Due (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Convertible Debt

Convertible notes consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Convertible Debt

	June 30, 2023		December 31, 2022

Total principal balance	$	20,000	$	20,000
Accrued interest		18,637		17,137
Total principal and accrued interest	$	38,637	$	37,137

Notes Payable, Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Notes Payable Acquisitions

Schedule of Acquisition Notes Payable

Notes payable, acquisitions consists of the following at June 30, 2023 and December 31, 2022:

Schedule of Acquisition Notes Payable

	June 30,			December 31,
	2023			2022

GameIQ acquisition note payable	$	115,104		$	127,778
Restaurant.com acquisition note payable		-			1,500,000
Total principal balance		115,104			1,627,778
Accrued interest		638			252,194
Total principal and accrued interest		115,742			1,879,972
Less current portion		(34,066	)		(1,798,478	)
Non-current portion	$	81,676		$	81,494

Government Assistance Notes Payable -SBA Loans (Tables)

6 Months Ended

Jun. 30, 2023

Government Assistance Notes Payable -sba Loans

Schedule of Notes Payable

Government Assistance Notes Payable-SBA Loans consists of the following at June 30, 2023, and December 31, 2022:

Schedule of Notes Payable

	June 30,			December 31,
	2023			2022

Economic Injury/Disaster Loans	$	661,035		$	661,035
Accrued interest		38,098			45,541
Total principal and accrued interest		699,133			706,576
Less current portion		(39,876	)		(15,217	)
Non-current portion	$	659,257		$	691,359

Stockholder’s Deficit (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Summary of Stock Options

A summary of stock options for the six months ended June 30, 2023, is as follows:

Summary of Stock Options

	Number of Options		Weighted Average Exercise Price
Balance outstanding, December 31, 2022		648,116		4.59
Options granted		95,000		3.35
Options exercised		-		-
Options expired or forfeited		-		-
Balance outstanding, June 30, 2023		743,116	$	4.43
Balance exercisable, June 30, 2023		548,686	$	5.30

Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Basis of Presentation (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Net loss	$ 1,840,686	$ 193,590	$ 2,265,602	$ (78,491)
Net cash in operations			981,092	35,910
Stockholders' deficiency	273,935	$ 1,817,372	273,935	$ 1,817,372	$ 1,651,272	$ 3,049,017	$ 2,173,123	$ 3,019,739
Cash	$ 2,134,182		$ 2,134,182

Schedule of Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Product Information [Line Items]
Revenue	$ 721,488	$ 1,811,154	$ 1,533,199	$ 2,570,934
Sales Channel, Directly to Consumer [Member]
Product Information [Line Items]
Revenue	276,981	273,280	659,657	596,077
Business to Business [Member]
Product Information [Line Items]
Revenue	444,507	1,524,934	873,542	1,953,709
Other [Member]
Product Information [Line Items]
Revenue		12,940		21,148
Restaurant Coupons [Member]
Product Information [Line Items]
Revenue	609,703	1,695,648	1,307,916	2,329,869
Restaurant Coupons [Member] \| Sales Channel, Directly to Consumer [Member]
Product Information [Line Items]
Revenue	165,196	157,774	453,374	355,012
Restaurant Coupons [Member] \| Business to Business [Member]
Product Information [Line Items]
Revenue	444,507	1,524,934	873,542	1,953,709
Restaurant Coupons [Member] \| Other [Member]
Product Information [Line Items]
Revenue		12,940		21,148
Sale of Travel, Vacation and Merchandise [Member]
Product Information [Line Items]
Revenue	75,423	72,874	135,693	149,602
Sale of Travel, Vacation and Merchandise [Member] \| Sales Channel, Directly to Consumer [Member]
Product Information [Line Items]
Revenue	75,423	72,874	135,693	149,602
Sale of Travel, Vacation and Merchandise [Member] \| Business to Business [Member]
Product Information [Line Items]
Revenue
Sale of Travel, Vacation and Merchandise [Member] \| Other [Member]
Product Information [Line Items]
Revenue
Advertising [Member]
Product Information [Line Items]
Revenue	36,362	42,632	89,590	91,463
Advertising [Member] \| Sales Channel, Directly to Consumer [Member]
Product Information [Line Items]
Revenue	36,362	42,632	89,590	91,463
Advertising [Member] \| Business to Business [Member]
Product Information [Line Items]
Revenue
Advertising [Member] \| Other [Member]
Product Information [Line Items]
Revenue

Schedule of Anti- dilutive Securities Excluded from Computation of Earning Loss Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	1,152,217	692,541
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	25,758	23,758
Common Stock Issuable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	383,343
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities		20,667
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	743,116	648,116

Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Product Information [Line Items]
Discounted deals on online purchase	$ 25
Purchase from restaurant	50
Advertising expense	$ 136,261	$ 247,759
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Two Customers [Member]
Product Information [Line Items]
Concentration risk, percentage	10.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| One Customer [Member]
Product Information [Line Items]
Concentration risk, percentage			10.00%
Customer Concentration Risk [Member] \| Accounts Payable [Member] \| Three Vendors [Member]
Product Information [Line Items]
Concentration risk, percentage	10.00%		10.00%
Customer Concentration Risk [Member] \| Revenue, Rights Granted [Member] \| No Customers [Member]
Product Information [Line Items]
Concentration risk, percentage	10.00%		10.00%
Customer Concentration Risk [Member] \| Inventory Related [Member] \| No Vendors [Member]
Product Information [Line Items]
Concentration risk, percentage	10.00%		10.00%

Right-of-Use Assets and Operating Lease Liabilities (Details Narrative) - USD ($)		6 Months Ended
	Dec. 31, 2022	Jun. 30, 2023	Apr. 30, 2023
Right-of-use Assets And Operating Lease Liabilities
Right of use asset	$ 52,608	$ 286,418	$ 293,798
Lease term	36 months
Average base rent	$ 7,500
Changes in operating lease right of use asset		59,988
Operating lease liabilities	$ 59,328
Operating lease liabilities payment		39,040
Right of use operating lease liabilities		$ 314,086

Schedule of Convertible Debt (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Business Combination, Separately Recognized Transactions [Line Items]
Total principal and accrued interest	$ 38,637	$ 37,137
Reverse Merger [Member]
Business Combination, Separately Recognized Transactions [Line Items]
Total principal balance	20,000	20,000
Accrued interest	18,637	17,137
Total principal and accrued interest	$ 38,637	$ 37,137

Convertible Note Payable- Past Due (Details Narrative) - Merger Agreement [Member] - Convertible Debt [Member] - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Debt Instrument, Face Amount	$ 20,000
Interest rate	15.00%
Interest Payable	$ 18,637	$ 17,137
Shares Issued, Price Per Share	$ 1.50
Debt Conversion, Converted Instrument, Shares Issued	25,758

Schedule of Acquisition Notes Payable (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Less current portion	$ (34,066)	$ (1,798,478)
GameIQ Acquisition Corp., Inc [Member]
Short-Term Debt [Line Items]
Total principal balance	115,104	127,788
Accrued interest	638	688
Acquisition Note Payable [Member]
Short-Term Debt [Line Items]
Total principal balance	115,104	1,627,778
Accrued interest	638	252,194
Total principal and accrued interest	115,742	1,879,972
Less current portion	(34,066)	(1,798,478)
Non-current portion	81,676	81,494
Acquisition Note Payable [Member] \| GameIQ Acquisition Corp., Inc [Member]
Short-Term Debt [Line Items]
Total principal balance	115,104	127,778
Acquisition Note Payable [Member] \| Restaurant.com, Inc. [Member]
Short-Term Debt [Line Items]
Total principal balance		$ 1,500,000

Notes Payable, Acquisitions (Details Narrative) - USD ($)				6 Months Ended
	Mar. 01, 2023	Feb. 01, 2022	Mar. 01, 2020	Jun. 30, 2023	Mar. 02, 2023	Dec. 31, 2022
Common Stock [Member]
Restructuring Cost and Reserve [Line Items]
Convertible shares	554,859			554,859
Restaurant.com Acquisition Note Payable [Member]
Restructuring Cost and Reserve [Line Items]
Interest rate			6.00%
Maturity date			Mar. 01, 2023
Debt instrument face amount			$ 1,500,000		$ 1,770,000	$ 1,500,000
Accrued interest payable						251,507
Notes payable principal balance	$ 1,770,000
GameIQ Acquisition Corp., Inc [Member]
Restructuring Cost and Reserve [Line Items]
Interest rate		1.00%
Maturity date		Feb. 01, 2025
Debt instrument face amount				$ 115,104		127,788
Accrued interest payable				638		$ 688
Debt instrument face amount				$ 12,674
GameIQ Acquisition Corp., Inc [Member] \| Holder One [Member]
Restructuring Cost and Reserve [Line Items]
Notes payable		$ 78,813
GameIQ Acquisition Corp., Inc [Member] \| Holder Two [Member]
Restructuring Cost and Reserve [Line Items]
Notes payable		$ 62,101

Schedule of Notes Payable (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Accrued interest	$ 38,098	$ 45,541
Total principal and accrued interest	699,133	706,576
Less current portion	(39,876)	(15,217)
Non-current portion	659,257	691,359
Economic Injury Disaster Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Economic Injury/Disaster Loans	$ 661,035	$ 661,035

Government Assistance Notes Payable -SBA Loans (Details Narrative) - Economic Injury Disaster Loans [Member] - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2023	Dec. 31, 2022	Jan. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Accrued interest			$ 38,098	$ 45,541
Debt instrument interest rate	3.75%	3.75%
Repayment of principal and interest in notes payable	$ 3,500	$ 3,500
Debt instrument term	30 years	30 years
Notes payable outstanding			$ 661,035	$ 661,035
SBA [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Proceeds from loans	$ 650,000	$ 650,000
Total principal balance					$ 14,500
Accrued interest					$ 900

Summary of Stock Options (Details)	6 Months Ended
Summary of Stock Options (Details)	Jun. 30, 2023 $ / shares shares
Equity [Abstract]
Number of Options beginning balance outstanding \| shares	648,116
Number of Options balance exercisable \| $ / shares	$ 4.59
Number of Options, granted \| shares	95,000
Weighted Average Exercise Price, Options granted \| $ / shares	$ 3.35
Number of Options, exercised \| shares
Weighted Average Exercise Price, Options exercised \| $ / shares
Number of Options expired or forfeited \| shares
Weighted Average Exercise Price, Options expired or forfeited \| $ / shares
Number of Options ending balance outstanding \| shares	743,116
Weighted Average Exercise Price Options ending balance outstanding \| $ / shares	$ 4.43
Number of Options balance exercisable \| shares	548,686
Weighted Average Exercise Price Options balance exercisable \| $ / shares	$ 5.30

Stockholder’s Deficit (Details Narrative) - USD ($)				3 Months Ended		6 Months Ended		12 Months Ended
Stockholder’s Deficit (Details Narrative) - USD ($)	Apr. 01, 2023	Mar. 01, 2023	Apr. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 02, 2023	Mar. 01, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Proceeds from issuance or sale of equity						$ 2,005,000
Stock issued during period, shares, new issues						1,002,500
Sale of stock price per share				$ 2.00		$ 2.00
Issuance of common stock granted, shares						95,000
Fair value of shares issued for services				$ 523,500	$ 210,509	$ 523,500	$ 210,509
Fair value of vested restricted stock units for directors, shares						480,000
Stock options fair value	$ 1,005,000
Exercise price of vested options for subsequent date	33.00%
Number of stock options issued with exercise price	95,000
Stock issued during period, value, new issues						$ 383,000		$ 383,000
Number of options exercisable	95,000			548,686		548,686
Share-based payment award, fair value assumptions, exercise price	$ 3.35			$ 3.00		$ 3.00
Share-based payment award, fair value assumptions, expected term						3 years
Expected volatility						203.00%
Expected dividend yield						0.00%
Risk-free interest rate						2.61%
Fair value of vested options						$ 163,990	$ 119,496
Share-based payment arrangement						229,881
Exercisable common stock options				$ 591,936		591,936
Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share issued price per share	$ 3.35
Stock options fair value	$ 294,000
Number of stock options issued with exercise price			335,000
Stock Price [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share issued price per share	$ 3.35
Director [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issuance of common stock granted, shares								720,000
Fair value of common stock granted								$ 360,000
Share issued price per share								$ 0.50
Number of shares issued for services								240,000
Fair value of shares issued for services								$ 220,000
Unvested compensation				140,000		140,000		$ 140,000
Employees [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share issued price per share								$ 0.50
Unvested compensation				$ 19,445		$ 19,445
Issuance of restricted stock, shares	100,000							150,500
Fair value of restricted stock granted								$ 75,250
Restricted stock issued for service, shares								83,833
Fair value of restricted stock issued for service								$ 55,620
Restricted Stock Employees [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issuance of restricted stock, shares	300,000
Chief Executive Officer [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issuance of restricted stock, shares	200,000
Consultants for Services [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Share issued price per share				$ 3.49		$ 3.49
Number of shares issued for services						150,000
Fair value of shares issued for services						$ 523,500
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued during period, shares, new issues						383,343		383,343
Convertible shares		554,859				554,859
Number of shares issued for services				150,000	189,784	150,000	189,784
Fair value of shares issued for services				$ 150	$ 190	$ 150	$ 190
Fair value of vested restricted stock units for directors, shares				480,000		480,000
Remaining shares issued						66,667	240,000
Fair value of vested restricted stock units for employees, shares				166,667		166,667
Share-based payment award, fair value assumptions, expected term						5 years 6 months 10 days
Common Stock [Member] \| Restricted Stock Units (RSUs) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Fair value of vested restricted stock units for employees, shares						100,000
Restaurant.com Acquisition Note Payable [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Debt instrument face amount								$ 1,500,000	$ 1,770,000	$ 1,500,000

Subsequent Events (Details Narrative) - Subsequent Event [Member]	Aug. 18, 2023 USD ($) shares
Card Cash Exchange Inc [Member]
Subsequent Event [Line Items]
Ownership percent	37.00%
Card Cash Exchange Inc [Member]
Subsequent Event [Line Items]
Payments to acquire business	$ 2,000,000
Paid in future	1,000,000
Paid in equity	$ 1,000,000
Number of restricted shares \| shares	6,108,077
Number of restricted shares, value	$ 27,700,000