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

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 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: 0-29651

OCULUS VISIONTECH INC.

(Exact name of registrant as specified in its charter)

Wyoming	06-1576391
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

Suite 507 - 837 West Hastings Street, Vancouver, BC, Canada, V6C 3N6

(Address of principal executive offices) (Zip code)

(604) 685-1017

(Registrant’s telephone number, including area code)

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 for 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, 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 ☑

As at November 9th, 2023, there were 91,422,569 shares of the registrant’s common stock outstanding

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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
Common stock - no par value	OVTZ	Over The Counter Bulletin Board
Preferred stock - no par value	N/A	N/A
Common stock - no par value	OVT	TSX Venture Exchange
Common stock - no par value	USF1	Frankfurt Stock Exchange

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TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
		Forward Looking Statements	4
Item 1.		Financial Statements	6
		Condensed Interim Consolidated Balance Sheets	6
	(A)	Condensed Interim Consolidated Statements of Operations and Comprehensive Loss	7
	(B)	Condensed Interim Consolidated Statements of Stockholders’ Equity	8
	(C)	Condensed Interim Consolidated Statements of Cash Flows	10
	(D)	Notes to Condensed Interim Consolidated Financial Statements	11
Item 2.	(E)	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.		Controls and Procedures	23

		PART II – OTHER INFORMATION

Item 1.		Legal Proceedings	24
Item 1A.		Risk Factors	24
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.		Defaults Upon Senior Securities	24
Item 4.		Mine Safety Disclosure	24
Item 5.		Other Information	24
Item 6.		Exhibits	24

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FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for the purposes of this Quarterly Report on Form 10-Q. In some cases, you can identify these statements by forward-looking words such as “plan”, “may”, “will”, “expect”, “intend”, “anticipate”, believe”, “estimate” and “continue” or similar words. Forward-looking statements are statements that are not historical facts, and include, but are not limited to:

●

statements regarding our products and services, including:

	o	our digital watermarking technology and Cloud-based document protection system;
	o	our data privacy and data protection services and solutions; our technology, our cash needs, including our ability to fund our future capital expenditures and working capital requirements;
	o	our expectations regarding competition and growth in our sector; the future sources and availability of additional funding; and
	o	the effect of funding arrangements on projects and products.

You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. We believe that it is important to communicate future expectations to investors. However, there may be events in the future that we are not able to accurately predict or control. Accordingly, we do not undertake any obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.

Forward-looking statements are based on current expectations about future events affecting the Company and are subject to uncertainties and factors that affect all business operating in a global market as well as matters specific to the Company. These uncertainties and factors are difficult to predict, and many of them are beyond the Company’s control. Factors to consider when evaluating these forward-looking statements include, but are not limited to:

	●	the impact of pandemics;
	●	the Company’s limited operating history makes it difficult to evaluate its business and prospects;
	●	the Company has incurred substantial losses and expects to incur losses in the future and may never achieve profitability;
	●	if the Company is unable to obtain substantial additional financing, it may not be able to remain in business;
	●	the Company’s operating results in future periods are expected to be subject to significant fluctuations, which would likely affect the trading price of the Company’s common shares;
	●	the data privacy and data protection markets are highly competitive, and the Company’s failure to successfully compete will limit its ability to attain, retain and increase its market share;
	●	the document protection market is highly competitive, and the Company’s failure to compete successfully would limit its ability to retain and increase its market share;
	●	the video digital watermarking business is highly competitive, and the Company’s failure to compete successfully would limit its ability to retain and increase its market share;
	●	the Company is subject to rapid technological change, which could render its products and services obsolete;
	●	the Company is dependent upon vendors and other third-party service providers and will be competing with some of these companies;
	●	the Company’s services are technically complex, and it may not be able to prevent defects that could decrease their market acceptance, result in product liability, or harm its reputation;
	●	any loss of the Company’s personnel or inability to acquire new personnel could harm its business;
	●	a failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have material adverse effect on the Company’s business and operating results and shareholders could lose confidence in the Company’s financial reporting;
	●	the Company does not currently have any paying customers;
	●	the Company’s business may suffer if it cannot protect its intellectual property;
	●	the Company’s products may infringe the intellectual property rights of others, causing the Company to incur significant costs or prevent us from licensing its products;
	●	the Company’s success depends on the continued growth in demand for e-business applications;
	●	government regulation and legal uncertainties could add additional costs and risks to doing business on the Internet;
	●	the Company’s share price has been and could be highly volatile, which could result in substantial losses to investors;
	●	the Company has not paid cash dividends in the past and does not expect to pay cash dividends in the foreseeable future.

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Any return on investment may be limited to the value of the Company’s common shares;

	●	securities analysts may not initiate coverage or continue to cover the Company’s common shares, and this may have a negative impact on its market price;
	●	anti-takeover provisions in our charter documents could prevent or delay a change in control of the Company;
	●	the Company intends to issue additional equity securities, which may dilute the interests of current shareholders or carry rights or preferences senior to the common shares;
	●	the exercise of options and warrants and other issuances of common shares or securities convertible into or exercisable for common shares will dilute the ownership interest of the Company’s current shareholders and may adversely affect the future market price of the Company’s common shares;
	●	limited liability of executive officers and directors may discourage shareholders from bringing a lawsuit against them;
	●	requirements of the SEC with regard to low-priced “penny stocks” may adversely affect the ability of shareholders to sell their shares in the secondary market;
	●	the Company does not anticipate paying dividends to shareholders in the foreseeable future;
	●	the Company may be exposed to adverse currency exchange rate fluctuations, which could harm the Company’s financial results and cash flows;
	●	service outages and disruption of the Company’s infrastructure may harm the Company and adversely impact business operations and injure reputation;
	●	security vulnerabilities in the Company’s products and services or any breach of the Company’s security measures may injure its reputation and disrupt the Company’s business;
	●	the financial reporting obligations of being a public company in the United States are expensive, time consuming, and may place significant demands on the Company’s management; and
	●	the Company’s failure to manage or adequately address any one or more of these risks could result in the business suffering a material adverse effect.

The Company believes the items outlined above are important factors that could cause estimates included in its financial statements to differ materially from the actual results and those expressed in a forward-looking statement made in this report or elsewhere by the Company or on its behalf. The Company has discussed these factors in more detail under “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other periodic reports filed with the United States Securities and Exchange Commission (“SEC”). Accordingly, to the extent that this quarterly report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company’s actual financial condition, operating results and business performance may differ materially from that projected or estimated by the Company in forward-looking statements. We do not intend to update our description of important factors each time a potential important factor arises, except as required by applicable securities laws and regulations. We advise our shareholders that they should (i) be aware that factors not referred to above could affect the accuracy of the Company’s forward-looking statements and (ii) use caution when considering the Company’s forward-looking statements.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

OCULUS VISIONTECH INC. AND SUBSIDIARY

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

(Stated in US Dollars)

(Unaudited)

	September 30, 2023			December 31, 2022


ASSETS

Current Assets:
Cash and cash equivalents	$	239,682		$	687,602
Prepaid expenses and other current assets (Note 4)		7,447			30,238
Total Assets	$	247,129		$	717,840

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

Current Liabilities:
Accounts payable and accrued liabilities (Note 5)	$	103,226		$	133,796
Accounts payable and accrued liabilities - related parties		150,110			168,627
Total current liabilities		253,336			302,423

Stockholders' Equity (Deficiency):
Preferred stock - no par value; authorized 250,000,000 shares, none issued
Common stock and additional paid-in capital - no par value; authorized 500,000,000 shares, issued and outstanding 91,422,569		46,850,710			46,850,710
Additional paid in capital		1,470,933			1,394,997
Accumulated other comprehensive loss		(36,598	)		(34,856	)
Accumulated deficit		(48,291,252	)		(47,795,434	)
Stockholders' equity (deficiency)		(6,207	)		415,417
Total Liabilities and Stockholders' Equity (Deficiency)	$	247,129		$	717,840

SEE ACCOMPANYING NOTES

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OCULUS VISIONTECH INC. AND SUBSIDIARY

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Stated in US Dollars)

(Unaudited)

	For the three months ended September 30,						For the nine months ended September 30,
	2023			2022			2023			2022

Expenses:
Consulting (Note 11)	$	45,000		$	45,000		$	135,000		$	90,000
Research and development (Note 10)		4,624			283,269			93,561			912,892
Selling, general and administrative (Notes 9 and 11)		79,049			116,163			200,696			310,987
Stock-based compensation (Notes 7 and 11)		14,923			80,267			75,936			336,107

Loss from operations		(143,596	)		(524,699	)		(505,193	)		(1,649,986	)
Interest income		3,089			-			9,375			-

Net loss		(140,507	)		(524,699	)		(495,818	)		(1,649,986	)

Other comprehensive loss
Currency translation differences		(1,878	)		(22,525	)		(1,742	)		(46,409	)

Total comprehensive loss	$	(142,385	)	$	(547,224	)	$	(497,560	)	$	(1,696,395	)

Net loss per share - basic and diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.02	)

Weighted average number of common shares outstanding – basic and diluted		91,422,569			91,422,569			91,422,569			91,422,569

SEE ACCOMPANYING NOTES

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OCULUS VISIONTECH INC. AND SUBSIDIARY

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)

(Stated in US Dollars)

(Unaudited)

Nine Month Period Ended September 30, 2023

	Common Shares		Amount		Additional Paid in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity (Deficiency)

Balance at December 31, 2022		91,422,569	$	46,850,710	$	1,394,997	$	(34,856	)	$	(47,795,434	)	$	415,417

Share-based compensation		-		-		75,936		-			-			75,936
Currency translation differences		-		-		-		(1,742	)		-			(1,742	)
Net loss		-		-		-		-			(495,818	)		(495,818	)

Balance at September 30, 2023		91,422,569	$	46,850,710	$	1,470,933	$	(36,598	)	$	(48,291,252	)	$	(6,207	)

Three Month Period Ended September 30, 2023

	Common Shares		Amount		Additional Paid in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Stockholders’ Equity (Deficiency)

Balance at June 30, 2023		91,422,569	$	46,850,710	$	1,456,010	$	(34,720	)	$	(48,150,745	)	$	121,255

Share-based compensation		-		-		14,923		-			-			14,923
Currency translation differences		-		-		-		(1,878	)		-			(1,878	)
Net loss		-		-		-		-			(140,507	)		(140,507	)

Balance at September 30, 2023		91,422,569	$	46,850,710	$	1,470,933	$	(36,598	)	$	(48,291,252	)	$	(6,207	)

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Nine Month Period Ended September 30, 2022

	Common Shares		Amount		Additional Paid in Capital		Commitment to Issue Shares		Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Stockholders’ Equity

Balance at December 31, 2021		91,422,569	$	46,850,710	$	998,477	$	414,128	$	6,190		$	(46,145,845	)	$	2,123,660

Share-based compensation		-		-		336,107		-		-			-			336,107
Currency translation differences		-		-		-		-		(46,409	)		-			(46,409	)
Net loss		-		-		-		-		-			(1,649,986	)		(1,649,986	)

Balance at September 30, 2022		91,422,569	$	46,850,710	$	1,334,584	$	414,128	$	(40,219	)	$	(47,795,831	)	$	763,372

Three Month Period Ended September 30, 2022

	Common Shares		Amount		Additional Paid in Capital		Commitment to Issue Shares		Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Stockholders’ Equity

Balance at June 30, 2022		91,422,569	$	46,850,710	$	1,254,317	$	414,128	$	(17,694	)	$	(47,271,132	)	$	1,230,329

Share-based compensation		-		-		80,267		-		-			-			80,267
Currency translation differences		-		-		-		-		(22,525	)		-			(22,525	)
Net loss		-		-		-		-		-			(524,699	)		(524,699	)

Balance at September 30, 2022		91,422,569	$	46,850,710	$	1,334,584	$	414,128	$	(40,219	)	$	(47,795,831	)	$	763,372

SEE ACCOMPANYING NOTES

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OCULUS VISIONTECH INC. AND SUBSIDIARY

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Stated in US Dollars)

(Unaudited)

Nine months ended September 30,	2023			2022

Cash flows from operating activities:
Net loss	$	(495,818	)	$	(1,649,986	)
Add back non-cash share-based compensation		75,936			336,107
Adjustments to reconcile net loss to net cash used in operating activities:
Changes in operating assets and liabilities:
Decrease in prepaid expenses and other current assets		22,791			14,678
Increase (decrease) in accounts payable and accrued liabilities		(30,570	)		53,125
Increase (decrease) in accounts payable and accrued liabilities – related parties		(18,517	)		104,945
Net cash used in operating activities		(446,178	)		(1,141,131	)

Effect of foreign currency translation		(1,742	)		(47,363	)

Net decrease in cash and cash equivalents		(447,920	)		(1,188,494	)
Cash and cash equivalents at beginning of period		687,602			2,208,451
Cash and cash equivalents at end of period	$	239,682		$	1,019,957


Supplemental disclosures of cash flow information:

Cash paid during the period for interest	$	-		$	-
Cash paid during the period for income taxes	$	-		$	-

There were no non-cash financing or investing activities for the periods presented.

SEE ACCOMPANYING NOTES

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

1.	BASIS OF PRESENTATION AND BUSINESS

Oculus VisionTech, Inc. (the "Company") is a development-stage technology company focused on cyber security, data privacy and data protection solutions for Enterprise business customers. Substantially all of the Company's assets and substantially all its operations are located and conducted in the United States and Canada.

The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of the Company and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed interim consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the roles and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. Although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of September 30, 2023 and December 31, 2022, and its results of operation for the nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022

2.	GOING CONCERN

These condensed interim consolidated financial statements are prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses from inception and does not currently have the financial resources to sustain operations in the long-term. As shown in the financial statements, the Company has incurred a loss of $495,818 for the nine months ended September 30, 2023 and, in addition the Company incurred losses of $1,649,589 for the year ended December 31, 2022. As of September 30, 2023, the Company had an accumulated deficit of $48,291,252 and working capital deficiency of $6,207. As a result of the Company’s current financial position and challenging access to capital, there can be no assurance that the Company will be able raise additional funds in the future, in which case the Company will be unable to meet its financial obligations. These material uncertainties raise substantial doubt upon the Company’s ability to continue as a going concern. The financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. The Company’s ability to continue as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations as they come due which management believes it will be able to do. To date, the Company has funded operations primarily through the issuance of common stock and warrants to outside investors and the Company’s management. The Company believes that its operations will generate additional funds and that additional funding from outside investors and the Company’s management will continue to be available to the Company when needed.

3.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

These condensed interim consolidated financial statements are presented in United States dollars and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). On November 14, 2023, the Board approved the condensed interim consolidated financial statements dated September 30, 2023.

These condensed interim consolidated financial statements include the financial statements of the Company and the entities controlled by the Company. The financial statements of subsidiaries are included in the condensed interim consolidated financial statements from the date that control commences until the date that control ceases.

Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when an investor has existing rights that give it the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a Company’s capital stock. All significant intercompany transactions and balances have been eliminated.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

The controlled entities are listed in the following table:

Name of Subsidiary

Country of

Incorporation

Ownership

Interest at

September 30,

2023

Ownership

Interest at

December 31,

2022

Principal Activity

ComplyTrust Inc.

US/Delaware

100

Software Development

Significant judgments, estimates and assumptions

The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. These judgments, estimates and assumptions are regularly evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.

The areas which require significant judgment and estimates that management has made at the financial reporting date, that could result in a material change to the carrying amounts of assets and liabilities, in the event actual results differ from the assumptions made, relate to, but are not limited to the following:

Significant judgments

	●	the determination of functional currencies
	●	share-based compensation and warrants issued in connection with private placements, using the fair value method. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based compensation. This estimate also requires determining the most appropriate inputs to the valuation model. The main factor affecting the estimates of the fair value of stock options is the stock price, expected volatility used and the expected duration of the instrument. The Company currently estimates the expected volatility of its common shares based on historical stock price information.

Cash and cash equivalents

Cash equivalents include highly liquid investments with original maturities of twelve months or less, and which are subject to an insignificant risk of change in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

Impairment of long-lived assets and long-lived assets to be disposed of

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell.

Research and development

Expenditures on research activities is recognized on the consolidated statement of operations and comprehensive loss as incurred. Development expenditures are capitalized as part of the cost of the resulting intangible asset only if the expenditures can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Management determined that as at September 30, 2023 , it was not yet able to demonstrate with sufficient certainty that it is probable that any economic benefits will flow to the Company. Accordingly, all research and development costs incurred to date have been expensed.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

Intangible assets

Identifiable intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is valued at fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment annually and whenever there is an indication that the intangible asset may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in profit or loss.

Intangible assets with indefinite lives are measured at cost less any accumulated impairment losses. These intangible assets are tested for impairment on an annual basis and more frequently if there are indicators that intangible assets may be impaired.

Income taxes

The Company accounts for income taxes under the asset and liability method. Current income taxes are the expected taxes payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to taxes payable in respect of previous years. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under the asset and liability method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be recognized.

Net loss per share

Basic loss per share is calculated using the weighted average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if securities or contracts that may require the issuance of common shares in the future were converted, unless the impact is anti-dilutive. For the period ended September 30, 2023, this calculation proved to be anti-dilutive, and therefore the Company’s 1,815,000 (2022: 5,415,000) stock options and 12,500,000 (2022: 17,400,000) warrants were excluded from the calculation.

Stock-based compensation

The Company follows the provisions of the Accounting Standards Codification Section 718 “Compensation - Stock Compensation”, which establishes accounting for equity-based compensation awards to be accounted for using the fair value method. Equity-settled share-based payment arrangements are initially measured at fair value at the date of grant and recorded within shareholders’ equity. Arrangements considered to be cash-settled are initially recorded at fair value and classified as accrued liabilities, and subsequently re-measured at fair value at each reporting date. The Company’s stock option plan is an equity-settled arrangement.

The fair value at grant date of all share-based payments is recognized as compensation expense over the period for which benefits of services are expected to be derived, with a corresponding credit to shareholders’ equity or accrued liabilities depending on whether they are equity-settled or cash-settled. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model and estimate the expected forfeiture rate at the date of grant.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

Functional currency

The Company’s consolidated financial statements are presented in U.S. dollars, which is the Company’s reporting currency. The functional currency of Oculus VisionTech Inc. is the Canadian (“CAD” or “C”) dollar and the functional currency of ComplyTrust Inc. is the U.S. dollar.

In accordance with ASC 830, Foreign Currency Matters, for companies that have a functional currency other than the US dollar, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and comprehensive loss and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from CAD into U.S. dollars are recorded in shareholders' equity as part of accumulated other comprehensive loss.

Foreign currency transactions are translated into the functional currency of the respective currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in the statement of operations and comprehensive loss.

Recently issued accounting pronouncements

The Company has reviewed new and revised accounting pronouncements that have been issued but are not yet effective. The Company does not expect any material impact from future accounting pronouncements.

4.	PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

	September 30,		December 31,
	2023		2022

Prepaid expenses	$	3,035	$	28,028
Tax Receivable – Canadian GST		4,412		2,210
	$	7,447	$	30,238

5.	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

	September 30, 2023		December 31, 2022

Accounts payable	$	85,532	$	81,927
Accrued fees and liabilities		17,694		51,869
	$	103,226	$	133,796

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

6.	COMMON STOCK

The Company has no par value common stock with 500,000,000 authorized shares and 91,422,569 outstanding on September 30, 2023 and December 31, 2022.

The Company has authorized the issuance of 250,000,000 non-voting preferred shares without par value, none issued.

As of September 30, 2023, there were Nil common shares held in escrow.

7.	STOCK OPTIONS

During the period ended September 30, 2023 and year ended December 31, 2022, the Company had a Rolling Stock Option Plan. Up to 10% of the Company’s issued and outstanding common shares may be reserved for granting of stock options. All of the options granted vest 20% every six months.

However, all options will be considered vested if one of the following criteria are met by the Company:

i.	Meeting sales forecasts:
	-	The greater of either the 20% vesting every six months or based on a pro rata percentage of revenue earned by the Company’s subsidiary.

ii.	the listing of the Company on any national securities exchange.

iii.	a Change of Control Event.

During the period ended September 30, 2023, the Company did not grant any stock options and recorded $75,936 (2022: $336,107) of share-based compensation for vested portion that were previously granted.

The changes in options are as follows:

	Number of options			Weighted average exercise price		Aggregate Intrinsic Value
Options outstanding, December 31, 2021		5,315,000		$	0.49	$	-
Granted		100,000			0.80		-
Options outstanding, December 31, 2022		5,415,000		$	0.50	$	-
Expired		(3,600,000	)		0.35		-
Options outstanding, September 30, 2023		1,815,000		$	0.80	$	-

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money at September 30, 2023.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

Details of options outstanding as at September 30, 2023 are as follows:

Exercise price (CAD)		Number of options outstanding		Expiry date	Number of options exercisable		Remaining contractual life (years)

$	0.450		250,000	December 21, 2023		250,000		0.22
$	1.200		500,000	January 29, 2024		500,000		0.33
$	0.800		375,000	June 10, 2024		300,000		0.70
$	0.600		590,000	October 14, 2024		354,000		1.04
$	0.800		100,000	January 31, 2025		40,000		1.34

			1,815,000			1,444,000

8.	WARRANTS

The changes in warrants are as follows:

	Number of warrants			Weighted average exercise price
Warrants outstanding, December 31, 2021 and 2022		17,400,000		$	0.28
Expired		(4,900,000	)	$	1.00
Warrants outstanding, September 30, 2023		12,500,000		$	0.001

Details of warrants outstanding as at September 30, 2023 are as follows:

Exercise price				Number of warrants outstanding		Expiry date	Number of warrants exercisable		Remaining contractual life (years)

$	0.001	⁽¹⁾	(USA)		12,500,000	June 4, 2025		-		1.68

					12,500,000			-

(1)

No share purchase warrants are exercisable until specific performance criteria have been met. Such criteria being 1) revenue sales projections per ComplyTrust Inc.’s 5-year proformas, or 2) listing on a major US exchange, or 3) change of control.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

9.	SELLING, GENERAL AND ADMINISTRATIVE

The breakdown of selling, general and administrative for the period ended September 30, 2023 and 2022 is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Filing and regulatory fees	$	8,514	$	5,789	$	26,557	$	34,280
Marketing		-		19,359		-		73,053
Professional fees		13,614		20,733		39,722		67,882
Rent		10,936		10,249		32,587		28,807
Office and administration		45,985		60,033		101,830		106,963

	$	79,049	$	116,163	$	200,696	$	310,987

10.

RESEARCH AND DEVELOPMENT

The breakdown of research and development for the period ended September 30, 2023 and 2022 is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Project management	$	-	$	-	$	-	$	11,990
Software development		4,624		203,687		59,123		677,035
Business development		-		33,435		3,952		99,636
Payroll		-		46,147		30,486		124,231

	$	4,624	$	283,269	$	93,561	$	912,892

11.

RELATED PARTIES

Related parties include the Board of Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions.

The Company defines its key management as the Board of Directors, Chief Executive Officer, President, and Chief Financial Officer. Remuneration of directors and key management personnel of the Company for the period ended September 30, 2023 and 2022 was as follows:


	2023		2022

Consulting	$	135,000	$	90,000
Selling general and administrative		79,913		65,742
Share-based compensation to directors and officers		1,442		40,761
	$	216,355	$	196,503

The Company for the period ended September 30, 2023 and 2022 reimbursed a related party $79,913 and $65,742, respectively, for selling, general and administrative expenses paid on behalf of the Company. The Company incurred $135,000 (2022 - $90,000) of consulting fees accrued to a company controlled by a director of the Company for the period ended September 30, 2023 and 2022.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

The Company also recorded share-based compensation of $1,442 (2022 - $40,761) for options vested to related parties during the period ended September 30, 2023 and 2022.

12.

FINANCIAL INSTRUMENTS AND RISKS

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are described below.

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Fair value of financial instruments

The Company has various financial instruments including cash and cash equivalents, accounts payable and accrued liabilities, and accounts payable and accrued liabilities – related parties. The carrying values of accounts payable and accrued liabilities and accounts payable and accrued liabilities – related parties approximate their fair values due to the short-term nature of these financial instruments.

Cash and cash equivalents is carried at a level 1 fair value measurement.

The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:

Credit risk

The Company is exposed to credit risk only with respect to uncertainties as to timing and amount of collectability of receivables. The Company believes its credit risk is low because receivables is comprised of goods and services tax (GST) which is recoverable from the governing body in Canada. Management does not believe the receivables are impaired. The Company doesn’t believe there is significant credit risk associated with cash as these amounts are held with major Canadian banks.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at September 30, 2023, the Company had a cash and cash equivalents balance of $239,682 ( December 31, 2022 – $687,602) to settle current liabilities of $253,336 ( December 31, 2022 – $302,423). All of the Company’s financial liabilities have contractual maturities of 30 days or due on demand and are subject to normal trade terms.

Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The risk that the Company will realize such a loss is limited as it does not have any significant interest-bearing financial instruments.

Foreign currency risk

As at September 30, 2023 and December 31, 2022, the Company is exposed to foreign currency risk as certain monetary financial instruments are denominated in Canadian currency. The Company’s sensitivity analysis suggests that reasonably expected changes in the rates of exchange in the United States would change foreign exchange gain or loss by an insignificant amount.

13.

OPERATING LEASES

The Company has one operating lease with unrelated third parties for office space at Vancouver, Canada.

The lease at the Vancouver, Canada location is on a month-to-month basis with monthly rental payments of $3,950 (CND). For the period ended September 30, 2023 and 2022 rent expense was $31,066 and $27,288, respectively.

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OCULUS VISIONTECH INC. AND SUBSIDIARY

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Stated in US Dollars)

(Unaudited)

14.

SEGMENTED INFORMATION

The Company currently operates in a single reportable operating segment. All of the Company’s assets and expenditures are located in Canada and the United States.

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Item 2.

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

FORWARD-LOOKING STATEMENTS AND SUPPLEMENTARY DATA

The following discussion should be read in conjunction with our condensed interim financial statements and other financial information appearing elsewhere in this quarterly report. In addition to historical information, the following discussion and other parts of this quarterly report contain forward-looking statements under applicable securities laws. You can identify these statements by forward-looking words such as “plan”, “may”, “will”, “expect”, “intend”, “anticipate”, believe”, “estimate” and “continue” or similar words. Forward-looking statements are statements that are not historical facts, and include, but are not limited to, statements regarding our products and services, including our digital watermarking technology and Cloud-based document protection system, our data privacy and data protection services and solutions, our technology, our cash needs, including our ability to fund our future capital expenditures and working capital requirements, and our expectations regarding competition and growth in our sector, are forward looking statements, the future sources and availability of additional funding, and the effect of funding arrangements on projects and products. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. We believe that it is important to communicate future expectations to investors. However, there may be events in the future that we are not able to accurately predict or control. Accordingly, we do not undertake any obligation to update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as required by law.

The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other periodic reports filed with the United States Securities and Exchange Commission (“SEC”). Accordingly, to the extent that this quarterly report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company’s actual financial condition, operating results and business performance may differ materially from that projected or estimated by the Company in forward-looking statements.

OVERVIEW OF THE COMPANY

Oculus VisionTech Inc. (OVTZ) is a Canadian-based development-stage technology company focused on cyber security, data privacy and data protection solutions for Enterprise business customers. Headquartered in Vancouver, British Columbia, Canada, the company was originally founded by image processing experts and is operated by experienced leadership. Currently, OVTZ is expanding and investing in a suite of new data protection and data privacy security products that will revolutionize CCPA, GDPR, LGPD and other data privacy legislation compliance for both data subjects and data controllers worldwide. Our mission is innovation of viable software tools that enable intelligent automated solutions for public cloud customer services and needs specific to data privacy and data protection for individuals, organizations and their customers worldwide, through a vision of mutually trusted data compliance.

Our Forget-Me-Yes® data privacy product is a Software-as-a-Service (SaaS) platform developed to specifically address the global ‘Right-to-be-Forgotten’ (RtbF) and Right-of-Erase (RoE) legal components of Brazil’s LGPD, Europe’s GDPR, California Consumer Privacy Act (CCPA), Colorado Privacy Act (CPA) and Virginia CDPA data privacy regulatory compliance. An additional new data protection software tool, ComplyScan®, is being developed to address public cloud data governance compliance. Our legacy Cloud Document Protection System (Cloud-DPS) technology leveraged our digital watermarking technology to enable OVTZ to offer a SaaS-based document management platform for tamper-proof document authentication and protection. Historically, we have used our digital watermarking technology for streaming video content distribution based on embedded digital watermarking, as well as video-on-demand (VOD) systems, services and source-to-destination digital media delivery solutions that allow live or recorded digitized and compressed video to be transmitted through Internet, intranet, satellite or wireless connectivity.

We were incorporated on April 18, 1986, as "First Commercial Financial Group Inc." in the Province of Alberta, Canada. In 1989, our name was changed to "Micron Metals Canada Corp.", which purchased 100% of the outstanding shares of USA Video Inc., a Texas corporation, in order to focus on the digital media business. In 1995, we changed our name to "USA Video Interactive Corp." and continued out of the Province of Alberta into the State of Wyoming. At a shareholders meeting held on December 30, 2011, a resolution was passed to change our name to "Oculus VisionTech Inc." and to alter our share capital by way of a reverse stock split (share consolidation) on the basis of fifteen old common shares for one new common share. On January 25, 2012, we changed our name to "Oculus VisionTech Inc." In June 2020, OVTZ acquired OCL Technologies Inc. (OCL), a Delaware corporation data privacy software development startup based in San Diego, California. As a 100% wholly-owned subsidiary of OVTZ and to better align with customer and market focus, OCL has completed a corporate name change to ComplyTrust® Inc. (CTI) on January 21, 2021. All OCL references throughout this document are synonymous with the new name change, CTI.

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Our executive and corporate headquarter offices are located at Suite 507, 837 West Hastings Street, Vancouver, British Columbia, Canada, V6C 3N6. Our telephone number is 1-800-684-0183 and our facsimile number is 604-685-5777. Our email address is contact@ovtz.com and our website is www.ovtz.com. Our common shares are listed for trading on the TSX Venture Exchange (TSX.V – OVT, OTCQB – OVTZ, FSE – USF1).

BUSINESS OBJECTIVES:

In this age of digital transformation, data monetization, IoT, and massive data migration to converged hyperscale, geo-disbursed Cloud infrastructure and workloads, data protection and data privacy have taken center stage. GDPR, LGPD, CCPA, and many other new international (Canada/PIPEDA, China/PIPL, India/DIA) and upcoming US Federal (ADPPA) and individual State data privacy regulations enable individuals and organizations the right to access and request deletion of all personal information for a given data subject. In our ever increasing Everything-as-a-Service world, OVTZ recognizes the need for global cloud-native data privacy and data protection solutions that are multi-cloud platform-ready and can augment both existing legacy and newer agile-driven architectures. OVTZ is building modular microservices-based software solutions and services for both hybrid on-premise and multi-cloud data management that incorporate automated malware, privacy and ransomware scanning, reporting and visualization.

Our new Forget-Me-Yes® (FMY) Software-as-a-Service (SaaS) data privacy solution is a secure, Zero-Knowledge platform providing a single-source capability of continuous ‘right-to-be-forgotten’ (RtbF) and ‘right-of-erase’ (RoE) privacy compliance by incorporating automated policy-driven re-query services that guarantees a Data Subject’s requested RtbF/RoE data remains ‘forgotten’ over the life of their FMY subscription. FMY incorporates hybrid encryption technology that ensures all User Interface, data-in-transit and data-at-rest remain secure and can only be accessed by the subscriber. With a cloud-native architecture, the FMY functionality can be utilized as either a complete turnkey SaaS subscription platform, or individually licensed for seamless integration with existing 3rd party applications and data privacy platforms.

Our new ComplyTrust® Software-as-a-Service Suite (CTSS) is a set of software tools specifically designed to address cloud-native data management and regulatory compliant data governance. CTSS will help to remove enterprise organizational barriers and blockers to further enable successful cloud migration and deployment that benefit the cloud infrastructure providers, enterprise organizations, and users collectively. CTSS helps to automate and visualize cloud compliance reporting across accounts, regions and services based on a variety of user-definable and data driven metrics. Development of the first CTSS product, a cloud-native data backup compliance reporting tool called ComplyScan® (CS), has commenced.

OVTZ had recognized that cloud-based, digital document security/protection products were a potentially viable business opportunity for the Company that allowed us to apply our proprietary real-time digital video watermarking technology, originally developed for studios and networks in the entertainment industry, to the digital document security/protection market. Cloud-DPS secures and protects digital documents (including text documents, photos, blueprints, etc.) from any modification, and/or attempted forgery by imperceptibly watermarking documents, using real-time image processing and watermarking algorithms, embedded into a secured/protected copy of a document. This authentication and verification process ensures the integrity of the original digital document.

Our near-term business objectives for the above:

1.	Patent and license new technology developed within the corporate research and development program;

Demonstrate proof of concept on selected commercial projects with our Forget-Me-Yes® (FMY) data privacy Software-as-a-Service platform and ComplyTrust® SaaS Suite (CTSS), gain industry recognition for the architectural and business differentiators of the company product’s FMY data privacy, ComplyScan® (CS) compliance validation tool and our legacy C-DPS authentication/tamper-proof functionality, and generate sales and support revenues in FY21+.

CRITICAL ACCOUNTING POLICIES (AND ESTIMATES)

In preparing its consolidated financials statement, the Company follows GAAP, which is described in Note 3, Summary of Significant Accounting Policies, to the Company’s December 31, 2022 Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K. The application of these principles requires significant judgements or an estimation process that can affect the results of operations, financial position and cash flows of the Company, as well as the related footnote disclosures. The Company continually reviews its accounting policies and financials information disclosures. Except as noted in Note 3, Summary of Significant Accounting Policies, of the Company’s financials statements, there have been no material changes in the Company’s critical accounting policies or estimates since December 31, 2022.

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RESULTS OF OPERATIONS

Sales

Sales for the nine-month period ended September 30, 2023 and 2022 were $Nil.

Cost of Sales

The cost of sales for the nine-month period ended September 30, 2023 and 2022 were $Nil.

Selling, General and Administrative Expenses

Selling, general and administrative expenses, consisting of product marketing liabilities, consulting fees, office, professional fees and other expenses to execute our business plan and for our day-to-day operations, decreased in the period ended September 30, 2023. We continue to develop and market C-DPS – Cloud Document Protection System and the “Right-to-be-Forgotten” and “Right-to-Erase” platform. Administrative expenses have decreased moderately as a result of insignificant fluctuations in general costs.

We have arranged for additional staff and consultants to engage in marketing activities in an effort to identify and assess appropriate market segments, develop business arrangements with prospective partners, create awareness of new products and services, and communicate to the industry and potential customers. Other components of selling, general and administrative expenses did not change significantly.

Nine-month period ended September 30, 2023

Selling, general and administrative expenses for the nine months ended September 30, 2023 decreased to $200,969 from $310,987 for the period ended September 30, 2022. We incurred decreased costs during the period due to minimal corporate and filing activities during the fiscal period.

Three-month period ended September 30, 2023

Selling, general and administrative expenses for the three months ended September 30, 2023 decreased to $79,049 from $116,163 for the period ended September 30, 2022. We incurred decreased costs during the period due to minimal corporate and filing activities during the fiscal period.

Research and Development

Nine-month period ended September 30, 2023

Research and development for the nine months ended September 30, 2023 decreased to $93,561 from $912,892 for the comparable period. This was a result of the Company’s effort to reduce costs due to the minimal activity during the period. We incurred comparable costs in 2022 as the management maintain its decision in 2021, to develop CTSS (ComplyScan®) as well as the on-going development of our subsidiary’s Forget-Me-Yes® zero trust data privacy platform. (“Right-to-be-Forgotten” and “Right-to-Erase”).

Three-month period ended September 30, 2023

Research and development for the three months ended September 30, 2023 decreased to $4,624 from $283,269 for the comparable period. This was a result of the Company’s effort to reduce costs due to the minimal activity during the period. We incurred comparable costs in 2022 as the management maintain its decision in 2021, to develop CTSS (ComplyScan®) as well as the on-going development of our subsidiary’s Forget-Me-Yes® zero trust data privacy platform. (“Right-to-be-Forgotten” and “Right-to-Erase”).

Net Losses

Nine-month period ended September 30, 2023

To date, we have not achieved profitability and expect to incur substantial losses for the foreseeable future. Our net loss for the nine months ended September 30, 2023 was $495,818, compared with a net loss of $1,649,986 for the comparative period.

Three-month period ended September 30, 2023

To date, we have not achieved profitability and expect to incur substantial losses for the foreseeable future. Our net loss for the three months ended September 30, 2023 was $140,507, compared with a net loss of $524,699 for the comparative period.

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Liquidity and Capital Resources

At September 30, 2023 our cash and cash equivalents position was $239,682, a decrease from $687,602 at December 31, 2022. We had a working capital deficiency of $6,207 and an accumulated deficit of $48,291,252 at September 30, 2023.

We have historically satisfied our capital needs primarily by shareholders’ loans and issuing equity securities to our officers, directors, employees and a small group of investors, and from short-term bridge loans from members of management.

As of September 30, 2023, we had $239,682 in cash and cash equivalents. Management has forecasted the Company will not have sufficient working capital to operate for the ensuing 12 months. We will require an additional $3 million to $5 million to finance operations for the fiscal 2023 and we intend to obtain such financing through sales of our equity securities. While the Company has been successful in the past in obtaining financing, there can be no assurance that the Company will be able to obtain adequate financing, or that such financing will be on terms acceptable to the Company, to meet future operational needs which may result in the delay, reduction, or discontinuation of ongoing development programs.

Assuming the aforementioned $3 million to $5 million in financing is obtained, continuing operations for the longer-term will be supported through anticipated growth in revenues and through additional sales of our securities. Although longer-term financing requirements may vary depending upon our sales performance, management expects that we will require additional financing of $3 million to $5 million for fiscal 2023. We have no binding commitments or arrangements for additional financing, and there is no assurance that management will be able to obtain any additional financing on terms acceptable to us, if at all.

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 2023, we have no off-balance sheet arrangements.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Oculus is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is not required to provide information required under this Item.

Item 4.

Controls and Procedures.

We maintain “disclosure controls and procedures”, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, who is our principal executive officer, and Chief Financial Officer, who is our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.

As of September 30, 2023, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting for the quarterly period ended September 30, 2023, identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or Rule 15d-15, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1.

Legal Proceedings.

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

Item 1A.

Risk Factors.

Oculus is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide information required under this Item. A description of the risks associated with our business, financial condition, and results of operations is set forth in Part I, Item 1A, of our Annual Report on Form 10 -K for the fiscal year ended December 31, 2022 filed with the SEC on March 28, 2023. Those factors continue to be meaningful for your evaluation of Oculus and we urge you to review and consider the risk factors presented in such Form 10-K.

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 information required by this Item is set forth on the exhibit index which follows the signature page of this report.

Exhibit No.	Description

EX-31.1	Certification of CEO

EX-31.2	Certification of CFO

EX-32.1	SOX Certifiaction of CEO

EX-32.2	SOC Certification of CFO

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 and contained in Exhibit 101)

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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.

	OCULUS VISIONTECH INC.

November 9th, 2023	By:	/s/ Rowland Perkins
		Rowland Perkins
		President and Chief Executive Officer
		(principal executive officer)


November 9th, 2023	By:	/s/ Anton J. Drescher
		Anton J. Drescher
		Chief Financial Officer
		(principal financial and accounting officer)

EXHIBIT 31.1

CERTIFICATION

I, Rowland Perkins, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Oculus VisionTech 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: November 9th, 2023

By:

/s/ Rowland Perkins

Rowland Perkins

Chief Executive Officer

(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATIONS

I, Anton J. Drescher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Oculus VisionTech Inc.;

(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: November 9th, 2023

By:

/s/ Anton J. Drescher

Anton J. Drescher

Chief Financial Officer

(Principal Financial and Accounting Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Oculus VisionTech Inc. (the “Company”), for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Rowland Perkins, Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Date: November 9th, 2023

By:

/s/ Rowland Perkins

Rowland Perkins

Chief Executive Officer

(Principal Executive Officer)

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Oculus VisionTech Inc. (the “Company”), for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anton J. Drescher , Chief Financial Officer for the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Date: November 9th, 2023

By:

/s/ Anton J. Drescher

Anton J. Drescher

Chief Financial Officer

(Principal Financial and Accounting Officer)

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Nov. 09, 2023
Document Information [Line Items]
Entity Central Index Key	0001107280
Entity Registrant Name	OCULUS VISIONTECH INC.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	0-29651
Entity Incorporation, State or Country Code	WY
Entity Tax Identification Number	06-1576391
Entity Address, Address Line One	Suite 507 - 837 West Hastings Street
Entity Address, City or Town	Vancouver
Entity Address, State or Province	BC
Entity Address, Postal Zip Code	V6C 3N6
City Area Code	604
Local Phone Number	685-1017
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		91,422,569

Condensed Interim Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 239,682	$ 687,602
Prepaid expenses and other current assets (Note 4)	7,447	30,238
Total Assets	247,129	717,840
Current Liabilities:
Total current liabilities	253,336	302,423
Stockholders' Equity (Deficiency):
Common stock and additional paid-in capital - no par value; authorized 500,000,000 shares, issued and outstanding 91,422,569	46,850,710	46,850,710
Additional paid in capital	1,470,933	1,394,997
Accumulated other comprehensive loss	(36,598)	(34,856)
Accumulated deficit	(48,291,252)	(47,795,434)
Stockholders' equity (deficiency)	(6,207)	415,417
Total Liabilities and Stockholders' Equity (Deficiency)	247,129	717,840
Nonrelated Party [Member]
Current Liabilities:
Accounts payable and accrued expenses	103,226	133,796
Related Party [Member]
Current Liabilities:
Accounts payable and accrued expenses	$ 150,110	$ 168,627

Condensed Interim Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	250,000,000	250,000,000
Preferred stock, issued (in shares)	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	91,422,569	91,422,569
Common stock, shares outstanding (in shares)	91,422,569	91,422,569

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Expenses:
Consulting (Note 11)	$ 45,000	$ 45,000	$ 135,000	$ 90,000
Research and development (Note 10)	4,624	283,269	93,561	912,892
Selling, general and administrative (Notes 9 and 11)	79,049	116,163	200,696	310,987
Stock-based compensation (Notes 7 and 11)	14,923	80,267	75,936	336,107
Loss from operations	(143,596)	(524,699)	(505,193)	(1,649,986)
Interest income	3,089	0	9,375	0
Net loss	(140,507)	(524,699)	(495,818)	(1,649,986)
Other comprehensive loss
Currency translation differences	(1,878)	(22,525)	(1,742)	(46,409)
Total comprehensive loss	$ (142,385)	$ (547,224)	$ (497,560)	$ (1,696,395)
Net loss per share - basic and diluted (in dollars per share)	$ (0)	$ (0.01)	$ (0.01)	$ (0.02)
Weighted average number of common shares outstanding – basic and diluted (in shares)	91,422,569	91,422,569	91,422,569	91,422,569

Condensed Interim Consolidated Statements of Stockholders' Equity (Deficiency) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Commitment to Issue Shares [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2021	91,422,569
Balance at Dec. 31, 2021	$ 46,850,710	$ 998,477	$ 414,128	$ 6,190	$ (46,145,845)	$ 2,123,660
Share-based compensation	0	336,107	0	0	0	336,107
Currency translation differences	0	0	0	(46,409)	0	(46,409)
Net loss	$ 0	0	0	0	(1,649,986)	(1,649,986)
Balance (in shares) at Sep. 30, 2022	91,422,569
Balance at Sep. 30, 2022	$ 46,850,710	1,334,584	414,128	(40,219)	(47,795,831)	763,372
Balance (in shares) at Dec. 31, 2021	91,422,569
Balance at Dec. 31, 2021	$ 46,850,710	998,477	414,128	6,190	(46,145,845)	2,123,660
Net loss						(1,649,589)
Balance (in shares) at Dec. 31, 2022	91,422,569
Balance at Dec. 31, 2022	$ 46,850,710	1,394,997		(34,856)	(47,795,434)	415,417
Balance (in shares) at Jun. 30, 2022	91,422,569
Balance at Jun. 30, 2022	$ 46,850,710	1,254,317	414,128	(17,694)	(47,271,132)	1,230,329
Share-based compensation	0	80,267	0	0	0	80,267
Currency translation differences	0	0	0	(22,525)	0	(22,525)
Net loss	$ 0	0	0	0	(524,699)	(524,699)
Balance (in shares) at Sep. 30, 2022	91,422,569
Balance at Sep. 30, 2022	$ 46,850,710	1,334,584	$ 414,128	(40,219)	(47,795,831)	763,372
Balance (in shares) at Dec. 31, 2022	91,422,569
Balance at Dec. 31, 2022	$ 46,850,710	1,394,997		(34,856)	(47,795,434)	415,417
Share-based compensation	0	75,936		0	0	75,936
Currency translation differences	0	0		(1,742)	0	(1,742)
Net loss	$ 0	0		0	(495,818)	(495,818)
Balance (in shares) at Sep. 30, 2023	91,422,569
Balance at Sep. 30, 2023	$ 46,850,710	1,470,933		(36,598)	(48,291,252)	(6,207)
Balance (in shares) at Jun. 30, 2023	91,422,569
Balance at Jun. 30, 2023	$ 46,850,710	1,456,010		(34,720)	(48,150,745)	121,255
Share-based compensation	0	14,923		0	0	14,923
Currency translation differences	0	0		(1,878)	0	(1,878)
Net loss	$ 0	0		0	(140,507)	(140,507)
Balance (in shares) at Sep. 30, 2023	91,422,569
Balance at Sep. 30, 2023	$ 46,850,710	$ 1,470,933		$ (36,598)	$ (48,291,252)	$ (6,207)

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Net loss	$ (140,507)	$ (524,699)	$ (495,818)	$ (1,649,986)	$ (1,649,589)
Add back non-cash share-based compensation			75,936	336,107
Changes in operating assets and liabilities:
Decrease in prepaid expenses and other current assets			22,791	14,678
Increase (decrease) in accounts payable and accrued liabilities			(30,570)	53,125
Increase (decrease) in accounts payable and accrued liabilities – related parties			(18,517)	104,945
Net cash used in operating activities			(446,178)	(1,141,131)
Effect of foreign currency translation			(1,742)	(47,363)
Net decrease in cash and cash equivalents			(447,920)	(1,188,494)
Cash and cash equivalents at beginning of period			687,602	2,208,451	2,208,451
Cash and cash equivalents at end of period	$ 239,682	$ 1,019,957	239,682	1,019,957	$ 687,602
Supplemental disclosures of cash flow information:
Cash paid during the period for interest			0	0
Cash paid during the period for income taxes			$ 0	$ 0

Note 1 - Basis of Presentation and Business

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.	BASIS OF PRESENTATION AND BUSINESS

Note 2 - Going Concern

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

2.	GOING CONCERN

Note 3 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

3.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

The controlled entities are listed in the following table:

Name of Subsidiary

Country of

Incorporation

Ownership

Interest at

September 30,

2023

Ownership

Interest at

December 31,

2022

Principal Activity

ComplyTrust Inc.

US/Delaware

100

Software Development

Significant judgments, estimates and assumptions

Significant judgments

	●	the determination of functional currencies
	●	share-based compensation and warrants issued in connection with private placements, using the fair value method. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based compensation. This estimate also requires determining the most appropriate inputs to the valuation model. The main factor affecting the estimates of the fair value of stock options is the stock price, expected volatility used and the expected duration of the instrument. The Company currently estimates the expected volatility of its common shares based on historical stock price information.

Cash and cash equivalents

Impairment of long-lived assets and long-lived assets to be disposed of

Research and development

Intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite.

Income taxes

Net loss per share

Stock-based compensation

Functional currency

Recently issued accounting pronouncements

Note 4 - Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Other Assets Disclosure [Text Block]

4.	PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

	September 30,		December 31,
	2023		2022

Prepaid expenses	$	3,035	$	28,028
Tax Receivable – Canadian GST		4,412		2,210
	$	7,447	$	30,238

Note 5 - Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

5.	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

	September 30, 2023		December 31, 2022

Accounts payable	$	85,532	$	81,927
Accrued fees and liabilities		17,694		51,869
	$	103,226	$	133,796

Note 6 - Common Stock

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Equity [Text Block]

6.	COMMON STOCK

The Company has no par value common stock with 500,000,000 authorized shares and 91,422,569 outstanding on September 30, 2023 and December 31, 2022.

The Company has authorized the issuance of 250,000,000 non-voting preferred shares without par value, none issued.

As of September 30, 2023, there were Nil common shares held in escrow.

Note 7 - Stock Options

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7.	STOCK OPTIONS

However, all options will be considered vested if one of the following criteria are met by the Company:

i.	Meeting sales forecasts:
	-	The greater of either the 20% vesting every six months or based on a pro rata percentage of revenue earned by the Company’s subsidiary.

ii.	the listing of the Company on any national securities exchange.

iii.	a Change of Control Event.

The changes in options are as follows:

	Number of options			Weighted average exercise price		Aggregate Intrinsic Value
Options outstanding, December 31, 2021		5,315,000		$	0.49	$	-
Granted		100,000			0.80		-
Options outstanding, December 31, 2022		5,415,000		$	0.50	$	-
Expired		(3,600,000	)		0.35		-
Options outstanding, September 30, 2023		1,815,000		$	0.80	$	-

Details of options outstanding as at September 30, 2023 are as follows:

Exercise price (CAD)		Number of options outstanding		Expiry date	Number of options exercisable		Remaining contractual life (years)

$	0.450		250,000	December 21, 2023		250,000		0.22
$	1.200		500,000	January 29, 2024		500,000		0.33
$	0.800		375,000	June 10, 2024		300,000		0.70
$	0.600		590,000	October 14, 2024		354,000		1.04
$	0.800		100,000	January 31, 2025		40,000		1.34

			1,815,000			1,444,000

Note 8 - Warrants

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Class of Warrant or Right [Text Block]

8.	WARRANTS

The changes in warrants are as follows:

	Number of warrants			Weighted average exercise price
Warrants outstanding, December 31, 2021 and 2022		17,400,000		$	0.28
Expired		(4,900,000	)	$	1.00
Warrants outstanding, September 30, 2023		12,500,000		$	0.001

Details of warrants outstanding as at September 30, 2023 are as follows:

Exercise price				Number of warrants outstanding		Expiry date	Number of warrants exercisable		Remaining contractual life (years)

$	0.001	⁽¹⁾	(USA)		12,500,000	June 4, 2025		-		1.68

					12,500,000			-

(1)

Note 9 - Selling, General and Administrative

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Selling, General and Administrative Disclosure [Text Block]

9.	SELLING, GENERAL AND ADMINISTRATIVE

The breakdown of selling, general and administrative for the period ended September 30, 2023 and 2022 is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Filing and regulatory fees	$	8,514	$	5,789	$	26,557	$	34,280
Marketing		-		19,359		-		73,053
Professional fees		13,614		20,733		39,722		67,882
Rent		10,936		10,249		32,587		28,807
Office and administration		45,985		60,033		101,830		106,963

	$	79,049	$	116,163	$	200,696	$	310,987

Note 10 - Research and Development

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Research, Development, and Computer Software Disclosure [Text Block]

10.

RESEARCH AND DEVELOPMENT

The breakdown of research and development for the period ended September 30, 2023 and 2022 is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Project management	$	-	$	-	$	-	$	11,990
Software development		4,624		203,687		59,123		677,035
Business development		-		33,435		3,952		99,636
Payroll		-		46,147		30,486		124,231

	$	4,624	$	283,269	$	93,561	$	912,892

Note 11 - Related Parties

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

11.

RELATED PARTIES

Related parties include the Board of Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions.


	2023		2022

Consulting	$	135,000	$	90,000
Selling general and administrative		79,913		65,742
Share-based compensation to directors and officers		1,442		40,761
	$	216,355	$	196,503

The Company also recorded share-based compensation of $1,442 (2022 - $40,761) for options vested to related parties during the period ended September 30, 2023 and 2022.

Note 12 - Financial Instruments and Risks

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Financial Instruments Disclosure [Text Block]

12.

FINANCIAL INSTRUMENTS AND RISKS

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Fair value of financial instruments

Cash and cash equivalents is carried at a level 1 fair value measurement.

The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:

Credit risk

Liquidity risk

Interest rate risk

Foreign currency risk

Note 13 - Operating Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13.

OPERATING LEASES

The Company has one operating lease with unrelated third parties for office space at Vancouver, Canada.

Note 14 - Segmented Information

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14.

SEGMENTED INFORMATION

The Company currently operates in a single reportable operating segment. All of the Company’s assets and expenditures are located in Canada and the United States.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of consolidation

The controlled entities are listed in the following table:

Name of Subsidiary

Country of

Incorporation

Ownership

Interest at

September 30,

2023

Ownership

Interest at

December 31,

2022

Principal Activity

ComplyTrust Inc.

US/Delaware

100

Software Development

Use of Estimates, Policy [Policy Text Block]

Significant judgments, estimates and assumptions

Significant judgments

	●	the determination of functional currencies
	●	share-based compensation and warrants issued in connection with private placements, using the fair value method. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based compensation. This estimate also requires determining the most appropriate inputs to the valuation model. The main factor affecting the estimates of the fair value of stock options is the stock price, expected volatility used and the expected duration of the instrument. The Company currently estimates the expected volatility of its common shares based on historical stock price information.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of long-lived assets and long-lived assets to be disposed of

Research and Development Expense, Policy [Policy Text Block]

Research and development

Goodwill and Intangible Assets, Policy [Policy Text Block]

Intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite.

Income Tax, Policy [Policy Text Block]

Income taxes

Earnings Per Share, Policy [Policy Text Block]

Net loss per share

Share-Based Payment Arrangement [Policy Text Block]

Stock-based compensation

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Functional currency

New Accounting Pronouncements, Policy [Policy Text Block]

Recently issued accounting pronouncements

Note 3 - Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

Name of Subsidiary

Country of

Incorporation

Ownership

Interest at

September 30,

2023

Ownership

Interest at

December 31,

2022

Principal Activity

ComplyTrust Inc.

US/Delaware

100

Software Development

Note 4 - Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

	September 30,		December 31,
	2023		2022

Prepaid expenses	$	3,035	$	28,028
Tax Receivable – Canadian GST		4,412		2,210
	$	7,447	$	30,238

Note 5 - Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	September 30, 2023		December 31, 2022

Accounts payable	$	85,532	$	81,927
Accrued fees and liabilities		17,694		51,869
	$	103,226	$	133,796

Note 7 - Stock Options (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of options			Weighted average exercise price		Aggregate Intrinsic Value
Options outstanding, December 31, 2021		5,315,000		$	0.49	$	-
Granted		100,000			0.80		-
Options outstanding, December 31, 2022		5,415,000		$	0.50	$	-
Expired		(3,600,000	)		0.35		-
Options outstanding, September 30, 2023		1,815,000		$	0.80	$	-

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

Exercise price (CAD)		Number of options outstanding		Expiry date	Number of options exercisable		Remaining contractual life (years)

$	0.450		250,000	December 21, 2023		250,000		0.22
$	1.200		500,000	January 29, 2024		500,000		0.33
$	0.800		375,000	June 10, 2024		300,000		0.70
$	0.600		590,000	October 14, 2024		354,000		1.04
$	0.800		100,000	January 31, 2025		40,000		1.34

			1,815,000			1,444,000

Note 8 - Warrants (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Warrants or Right [Table Text Block]

	Number of warrants			Weighted average exercise price
Warrants outstanding, December 31, 2021 and 2022		17,400,000		$	0.28
Expired		(4,900,000	)	$	1.00
Warrants outstanding, September 30, 2023		12,500,000		$	0.001

Exercise price				Number of warrants outstanding		Expiry date	Number of warrants exercisable		Remaining contractual life (years)

$	0.001	⁽¹⁾	(USA)		12,500,000	June 4, 2025		-		1.68

					12,500,000			-

Note 9 - Selling, General and Administrative (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Selling, General and Administrative Expenses [Table Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Filing and regulatory fees	$	8,514	$	5,789	$	26,557	$	34,280
Marketing		-		19,359		-		73,053
Professional fees		13,614		20,733		39,722		67,882
Rent		10,936		10,249		32,587		28,807
Office and administration		45,985		60,033		101,830		106,963

	$	79,049	$	116,163	$	200,696	$	310,987

Note 10 - Research and Development (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Research and Development Expenses [Table Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022

Project management	$	-	$	-	$	-	$	11,990
Software development		4,624		203,687		59,123		677,035
Business development		-		33,435		3,952		99,636
Payroll		-		46,147		30,486		124,231

	$	4,624	$	283,269	$	93,561	$	912,892

Note 11 - Related Parties (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables


	2023		2022

Consulting	$	135,000	$	90,000
Selling general and administrative		79,913		65,742
Share-based compensation to directors and officers		1,442		40,761
	$	216,355	$	196,503

Note 2 - Going Concern (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Note 2 - Going Concern (Details Textual) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Net Income (Loss) Attributable to Parent	$ (140,507)	$ (524,699)	$ (495,818)	$ (1,649,986)	$ (1,649,589)
Retained Earnings (Accumulated Deficit)	(48,291,252)		(48,291,252)		$ (47,795,434)
Working Capital (Deficit)	$ 6,207		$ 6,207

Note 3 - Summary of Significant Accounting Policies (Details Textual) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	1,815,000	5,415,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	12,500,000	17,400,000

Note 3 - Summary of Significant Accounting Policies - Summary of Subsidiary (Details)	Sep. 30, 2023	Dec. 31, 2022
ComplyTrust Inc. [Member]
Ownership interest	100.00%	100.00%

Note 4 - Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Prepaid expenses	$ 3,035	$ 28,028
Tax Receivable – Canadian GST	4,412	2,210
Prepaid Expense and Other Assets, Current	$ 7,447	$ 30,238

Note 5 - Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Details) - Nonrelated Party [Member] - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Accounts payable	$ 85,532	$ 81,927
Accrued fees and liabilities	17,694	51,869
Accounts Payable and Accrued Liabilities, Current	$ 103,226	$ 133,796

Note 6 - Common Stock (Details Textual) - $ / shares $ / shares in Thousands	Sep. 30, 2023	Dec. 31, 2022
Common Stock, No Par Value (in dollars per share)	$ 0	$ 0
Common Stock, Shares Authorized (in shares)	500,000,000	500,000,000
Common Stock, Shares, Outstanding, Ending Balance (in shares)	91,422,569	91,422,569
Preferred Stock, Shares Authorized (in shares)	250,000,000	250,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Common Stock, Shares Held in Escrow (in shares)	0

Note 7 - Stock Options (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Note 7 - Stock Options (Details Textual) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)					100,000
Share-Based Payment Arrangement, Expense	$ 14,923	$ 80,267	$ 75,936	$ 336,107
Rolling Stock Option Plan [Member]
Share-based Compensation Arrangement, Percent of Issued and Outstanding Common Shares Reserved	10.00%		10.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)			0
Share-Based Payment Arrangement, Expense			$ 75,936	$ 336,107
Rolling Stock Option Plan [Member] \| Vesting Every Six Months [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			20.00%
Rolling Stock Option Plan [Member] \| Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			20.00%

Note 7 - Stock Options - Changes in Options (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Options outstanding (in shares)	5,415,000	5,315,000
Options outstanding, weighted average exercise price (in dollars per share)	$ 0.5	$ 0.49
Options outstanding, aggregate intrinsic value	$ 0	$ 0	$ 0
Granted, options (in shares)		100,000
Granted, weighted average exercise price (in dollars per share)		$ 0.8
Granted, aggregate intrinsic value (in dollars per share)		$ 0
Expired, options (in shares)	(3,600,000)
Expired, weighted average exercise price (in dollars per share)	$ 0.35
Expired, aggregate intrinsic value (in dollars per share)	$ 0
Options outstanding (in shares)	1,815,000	5,415,000
Options outstanding, weighted average exercise price (in dollars per share)	$ 0.8	$ 0.5

Note 7 - Stock Options - Details of Options Outstanding (Details) - shares	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of options outstanding (in shares)	1,815,000	5,415,000	5,315,000
Exercisable (in shares)	1,444,000
Range Two [Member]
Number of options outstanding (in shares)	250,000
Expiry date	Dec. 21, 2023
Exercisable (in shares)	250,000
Remaining contractual life (Year)	2 months 19 days
Range Three [Member]
Number of options outstanding (in shares)	500,000
Expiry date	Jan. 29, 2024
Exercisable (in shares)	500,000
Remaining contractual life (Year)	3 months 29 days
Range Four [Member]
Number of options outstanding (in shares)	375,000
Expiry date	Jun. 10, 2024
Exercisable (in shares)	300,000
Remaining contractual life (Year)	8 months 12 days
Range Five [Member]
Number of options outstanding (in shares)	590,000
Expiry date	Oct. 14, 2024
Exercisable (in shares)	354,000
Remaining contractual life (Year)	1 year 14 days
Range Six [Member]
Number of options outstanding (in shares)	100,000
Expiry date	Jan. 31, 2025
Exercisable (in shares)	40,000
Remaining contractual life (Year)	1 year 4 months 2 days

Note 8 - Warrants - Schedule of Warrants (Details)

9 Months Ended

Sep. 30, 2023

$ / shares

Warrants outstanding (in shares)

17,400,000

Warrants outstanding, weighted average exercise price (in dollars per share) | $ / shares

$ 0.28

Expired (in shares)

(4,900,000)

Expired (in dollars per share) | $ / shares

$ 1

Warrants outstanding (in shares)

12,500,000

Warrants outstanding, weighted average exercise price (in dollars per share) | $ / shares

$ 0.001

Number of warrants outstanding (in shares)

12,500,000

Number of warrants exercisable (in shares)

Warrants Expiring on June 4, 2025 [Member]

Warrants outstanding (in shares)

12,500,000

Exercise price (in dollars per share) | $ / shares

$ 0.001

^[1]

Number of warrants outstanding (in shares)

12,500,000

Number of warrants exercisable (in shares)

Remaining contractual life (Year)

1 year 8 months 4 days

[1]	No share purchase warrants are exercisable until specific performance criteria have been met. Such criteria being 1) revenue sales projections per ComplyTrust Inc.’s 5-year proformas, or 2) listing on a major US exchange, or 3) change of control.

Note 9 - Selling, General and Administrative - Selling, General and Administrative Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Filing and regulatory fees	$ 8,514	$ 5,789	$ 26,557	$ 34,280
Marketing	0	19,359	0	73,053
Professional fees	13,614	20,733	39,722	67,882
Rent	10,936	10,249	32,587	28,807
Office and administration	45,985	60,033	101,830	106,963
Selling, General and Administrative Expense	$ 79,049	$ 116,163	$ 200,696	$ 310,987

Note 10 - Research and Development - Research and Development (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Project management	$ 0	$ 0	$ 0	$ 11,990
Software development	4,624	203,687	59,123	677,035
Business development	0	33,435	3,952	99,636
Payroll	0	46,147	30,486	124,231
Research and Development Expense	$ 4,624	$ 283,269	$ 93,561	$ 912,892

Note 11 - Related Parties (Details Textual) - USD ($)	9 Months Ended
Note 11 - Related Parties (Details Textual) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction, Amounts of Transaction	$ 216,355	$ 196,503
Consulting Fees [Member]
Related Party Transaction, Amounts of Transaction	135,000	90,000
Selling, General and Administrative Expenses [Member]
Related Party Transaction, Amounts of Transaction	79,913	65,742
Share-based Compensation [Member]
Related Party Transaction, Amounts of Transaction	$ 1,442	$ 40,761

Note 11 - Related Parties - Related Party Expenses (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Related party transactions	$ 216,355	$ 196,503
Consulting Fees [Member]
Related party transactions	135,000	90,000
Selling, General and Administrative Expenses [Member]
Related party transactions	79,913	65,742
Share-based Compensation [Member]
Related party transactions	$ 1,442	$ 40,761

Note 12 - Financial Instruments and Risks (Details Textual) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents, at Carrying Value	$ 239,682	$ 687,602
Liabilities, Current	$ 253,336	$ 302,423

Note 13 - Operating Leases (Details Textual)	3 Months Ended		9 Months Ended
Note 13 - Operating Leases (Details Textual)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CAD ($)	Sep. 30, 2022 USD ($)
Operating Lease, Expense	$ 10,936	$ 10,249	$ 32,587		$ 28,807
Vancouver, CA Operating Lease [Member]
Operating Leases, Monthly Rent Expense				$ 3,950
Operating Lease, Expense			$ 31,066		$ 27,288

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