View Filing Data

Date: 7/6/2020 Form: 10-K - Annual Report

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Jun. 26, 2020	Jun. 28, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	ComSovereign Holding Corp.
Entity Central Index Key	0001178727
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	No
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity File Number	333-150332
Entity Interactive Data Current	No
Entity Incorporation State Country Code	NV
Entity Public Float			$ 2,094,794
Entity Common Stock, Shares Outstanding		128,846,064

Consolidated Balance Sheet	Dec. 31, 2019 USD ($)
Current Assets
Cash	$ 812,452
Accounts receivable, net	2,168,659
Receivables - related party	1,595
Inventory, net	4,671,396
Prepaid expenses	916,729
Other current assets	94,538
Total Current Assets	8,665,369
Property and equipment, net	1,458,106
Operating lease right-of-use assets	2,199,682
Intangible assets, net	51,277,482
Goodwill	56,386,796
Total Assets	119,987,435
Current Liabilities
Accounts payable	2,245,704
Accrued interest	306,445
Accrued liabilities	1,383,008
Accrued liabilities - related party	461,254
Accrued payroll	1,050,703
Contract liabilities, current	149,923
Accrued warranty liability	195,138
Operating lease liabilities, current	467,979
Line of credit	2,000,000
Notes payable - related party	1,492,953
Current portion of long-term debt, net of unamortized discounts and debt issuance costs	5,389,492
Total Current Liabilities	15,142,599
Contract liabilities, net of current portion	152,892
Operating lease liabilities, net of current portion	1,744,569
Total Liabilities	17,040,060
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, no shares issued and outstanding as of December 31, 2019
Common stock, $0.0001 par value, 300,000,000 shares authorized, 128,326,243 shares issued and outstanding as of December 31, 2019	12,833
Additional paid-in capital	130,553,180
Accumulated deficit	(27,545,255)
Accumulated other comprehensive loss	(23,383)
Treasury stock, at cost, 100,000 shares as of December 31, 2019	(50,000)
Total Stockholders' Equity	102,947,375
Total Liabilities and Stockholders' Equity	$ 119,987,435

Consolidated Balance Sheet (Parenthetical)	Dec. 31, 2019 $ / shares shares
Statement of Financial Position [Abstract]
Preferred stock, par value \| $ / shares	$ 0.0001
Preferred stock, shares authorized	100,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value \| $ / shares	$ 0.0001
Common stock, shares authorized	300,000,000
Common stock, shares issued	128,326,243
Common stock, shares outstanding	128,326,243
Treasury stock, shares	100,000

Consolidated Statement of Operations

12 Months Ended

Dec. 31, 2019

USD ($)

$ / shares

Income Statement [Abstract]

Revenue

$ 4,712,212

Cost of Goods Sold

2,990,716

^[1]

Gross Profit

1,721,496

Operating Expenses

Research and development

174,257

^[1]

Sales and marketing

6,222

^[1]

General and administrative

14,325,078

^[1]

Depreciation and amortization

7,567,184

Gain on sale of fixed assets

(98,410)

Total Operating Expenses

21,974,331

Net Operating Loss

(20,252,835)

Other Income (Expense)

Loss on conversion of debt

(2,640,000)

Net loss on extinguishment of debt

(434,774)

Foreign currency transaction gain

191,547

Interest expense

(8,399,663)

Other expense

(147,430)

Total Other Expenses

(11,430,320)

Net Loss Before Income Taxes

(31,683,155)

Deferred Tax Benefit

4,137,900

Net Loss

$ (27,545,255)

Loss per common share:

Basic | $ / shares

$ (0.57)

Diluted | $ / shares

$ (0.57)

Weighted-average shares outstanding:

Basic | shares

48,714,099

Diluted | shares

48,714,099

[1]	These are exclusive of depreciation and amortization

Consolidated Statement of Comprehensive Loss	12 Months Ended
Consolidated Statement of Comprehensive Loss	Dec. 31, 2019 USD ($)
Statement of Comprehensive Income [Abstract]
Net Loss	$ (27,545,255)
Other Comprehensive Loss:
Foreign currency translation adjustment	(23,383)
Total Comprehensive Loss	$ (27,568,638)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statement of Stockholders' Equity - 12 months ended Dec. 31, 2019 - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Accumulated Deficit	Total
Beginning balance at Jan. 09, 2019
Beginning balance, shares at Jan. 09, 2019
Issuance of founder shares at inception		$ 2,789					2,789
Issuance of founder shares at inception, shares		27,890,000
Issuance of preferred stock for VEO, Inc. acquisition	$ 150		13,214,850				13,215,000
Issuance of preferred stock for VEO, Inc. acquisition, shares	1,500,000
Issuance of preferred stock for InduraPower, Inc. acquisition	$ 80		7,047,920				7,048,000
Issuance of preferred stock for InduraPower, Inc. acquisition, shares	800,000
Issuance of preferred stock for Silver Bullet Technology, Inc. acquisition	$ 30		2,642,970				2,643,000
Issuance of preferred stock for Silver Bullet Technology, Inc. acquisition, shares	300,000
Issuance of common stock for DragonWave-X LLC and Lextrum, Inc. acquisitions		$ 1,324	58,242,132				58,243,456
Issuance of common stock for DragonWave-X LLC and Lextrum, Inc. acquisitions, shares		13,237,149
Common stock issued for cash		$ 50	4,950				5,000
Common stock issued for cash, shares		500,000
Common stock issued for cashless exercise of warrants		$ 337	33,388				33,725
Common stock issued for cashless exercise of warrants, shares		3,372,500
Common stock issued for conversion of senior convertible debentures		$ 110	3,752,388				3,752,498
Common stock issued for conversion of senior convertible debentures, shares		1,100,000
Common stock issued in debt conversion		$ 16	703,984				704,000
Common stock issued in debt conversion, shares		160,000
Warrants issued for services			4,074,330				4,074,330
Warrants issued in conjunction with debt agreements			3,138,667				3,138,667
Common stock issued as debt issuance costs		$ 123	7,805,489				7,805,612
Common stock issued as debt issuance costs, shares		1,235,140
Common stock issued for services		$ 12	525,290				525,302
Common stock issued for services, shares		120,000
Share-based compensation		$ 5	258,256				258,261
Share-based compensation, shares		45,660
Beneficial conversion feature			855,549				855,549
Conversion of preferred stock	$ (260)	$ 260
Conversion of preferred stock, shares	(2,600,000)	2,600,000
Conversion of ComSovereign Corp. stock at 0.8902 into Drone Aviation Holding Corp. stock		$ 4,474	(4,474)
Conversion of ComSovereign Corp. stock at 0.8902 into Drone Aviation Holding Corp. stock, shares		44,739,551
Merger with Drone Aviation Holding Corp.		$ 3,333	28,257,491		(50,000)		28,210,824
Merger with Drone Aviation Holding Corp., shares		33,326,243
Net loss						(27,545,255)	(27,545,255)
Other comprehensive loss				(23,383)			(23,383)
Ending balance at Dec. 31, 2019		$ 12,833	$ 130,553,180	$ (23,383)	$ (50,000)	$ (27,545,255)	$ 102,947,375
Ending balance, shares at Dec. 31, 2019		128,326,243

Consolidated Statement of Stockholders' Equity (Parenthetical)	Dec. 31, 2019 $ / shares
Statement of Stockholders' Equity [Abstract]
Common stock at a price	$ 0.8902

Consolidated Statement of Cash Flows	12 Months Ended
Consolidated Statement of Cash Flows	Dec. 31, 2019 USD ($)
Cash flows from operating activities:
Net loss	$ (27,545,255)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	623,884
Amortization	6,943,300
Share-based compensation	258,256
Deferred income taxes	(4,137,900)
Amortization of debt discounts and debt issuance costs	8,458,341
Amortization of right-of-use asset	135,542
Gain on sale of fixed assets	(98,410)
Loss on conversion of debt	2,640,000
Net loss on extinguishment of debt	434,774
Other, net	525,307
Changes in assets and liabilities:
Accounts receivable	(26,992)
Receivables- related party	(4,876,258)
Inventory	(1,136,012)
Prepaids	(767,355)
Other current assets	(93,289)
Accounts payable	(1,141,823)
Accrued liabilities	2,295,273
Accrued interest	1,109,252
Related party payable	9,826,112
Operating lease liabilities	(123,534)
Other current liabilities	(156,460)
Net cash used in operating activities	(6,853,247)
Cash flows from investing activities:
Cash acquired from acquisitions	2,925,273
Additions to property and equipment	(87,038)
Net cash provided by investing activities	2,838,235
Cash flows from financing activities:
Proceeds from issuance of common stock	5,000
Proceeds from issuance of related party debt	485,000
Proceeds from issuance of debt	6,249,170
Repayment of debt	(1,808,323)
Debt issuance costs	(80,000)
Net cash provided by financing activities	4,850,847
Effect of exchange rates on cash	(23,383)
Net increase in cash and cash equivalents	812,452
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of year	812,452
Supplemental disclosures of cash flow information:
Taxes
Interest
Non-cash investing and financing activities:
Recognition of right-of-use operating lease asset and liability	2,335,224
Issuance of founder shares at inception	2,789
Common stock issued for cashless exercise of warrants	33,725
Common stock issued for conversion of senior convertible debentures	3,725,498
Common stock issued in debt conversion	704,000
Warrants issued for services	4,074,330
Warrants issued in conjunction with debt agreements	3,138,667
Common stock issued as debt issuance costs	7,805,612
Beneficial conversion feature	855,549
Issuance of preferred stock for VEO, Inc. acquisition	13,215,000
Issuance of preferred stock for InduraPower, Inc. acquisition	7,048,000
Issuance of preferred stock for Silver Bullet Technology, Inc. acquisition	2,643,000
Issuance of common stock for DragonWave-X LLC and Lextrum, Inc. acquisitions	$ 58,243,456

Description of Business and Basis of Presentation

12 Months Ended

Dec. 31, 2019

Description of Business and Basis of Presentation [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business

COMSovereign Holding Corp., formerly known as Drone Aviation Holding Corp. ("the "Company"), is a provider of technologically-advanced telecom solutions to network operators, mobile device carriers, governmental units and other enterprises worldwide. The Company has assembled a portfolio of communications, power and niche technologies, capabilities and products that enable the upgrading of latent 3G networks to 4G and 4G-LTE networks and will facilitate the rapid rollout of the 5G and "next-Generation" ("nG") networks of the future. The Company focuses on special capabilities, including signal modulations, antennae, software, hardware and firmware technologies that enable increasingly efficient data transmission across the radio-frequency spectrum. The Company's product solutions are complemented by a broad array of services including technical support, systems design and integration, and sophisticated research and development programs. The Company competes globally on the basis of its innovative technology, broad product offerings, high-quality and cost-effective customer solutions, as well as the scale of its global customer base and distribution. In addition, the Company believes it is in a unique position to rapidly increase its near-term domestic sales as it is among the few U.S.-based providers of telecommunications equipment and services.

Acquisition of ComSovereign Corp.

The Company was incorporated under the laws of the State of Nevada on April 17, 2014. On November 27, 2019, the Company entered into an Agreement and Plan of Merger dated as of November 27, 2019 (the "Merger Agreement") with ComSovereign Corp., a Delaware corporation ("ComSovereign"), and DACS Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of the Company ("Merger Sub"). The Merger Agreement provided for the merger of Merger Sub with and into ComSovereign (hereafter referred to as the "ComSovereign Acquisition"). As a result of the ComSovereign Acquisition, Merger Sub ceased to exist, and ComSovereign became the surviving corporation and a direct wholly-owned subsidiary of the Company. Additionally, the former stockholders of ComSovereign (the "ComSovereign Stockholders") received a direct equity ownership and controlling equity interest in the Company. For each share of ComSovereign common stock, the stockholder received 1.8902 shares of the Company's common stock. The ComSovereign Acquisition was completed on November 27, 2019. On December 10, 2019, the Company changed its name from Drone Aviation Holding Corp. to COMSovereign Holding Corp.

The ComSovereign Acquisition was accounted for as a reverse merger with ComSovereign acquiring the assets of the Company, and the net assets, including other intangible assets, of the Company prior to the ComSovereign Acquisition being recorded at fair value with the excess purchase price allocated to goodwill. As a result of the completion of the ComSovereign Acquisition, these consolidated financial statements include (1) the assets and liabilities of the Company and its consolidated subsidiaries, including ComSovereign and its subsidiaries, as of December 31, 2019, (2) the historical operations of ComSovereign from inception (January 10, 2019) to the date of consummation of the ComSovereign Acquisition, and (3) and the operations of the Company and its subsidiaries from the date of completion of the ComSovereign Acquisition (November 27, 2019) to December 31, 2019.

Corporate History of ComSovereign

ComSovereign was incorporated in the state of Delaware on January 10, 2019. From the date of incorporation until the date of its first acquisition, as described below, ComSovereign had no business operations.

On January 12, 2019, two founding members of ComSovereign each acquired 6,000,000 shares of common stock at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 20, 2019, the same two founding members of ComSovereign each acquired an additional 6,000,000 shares of common stock at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 22, 2019, an additional 11 founding members of ComSovereign acquired an aggregate of 3,290,000 shares of common stock at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 23, 2019, one of the additional 11 founding members acquired an additional 500,000 shares of common stock at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 29, 2019, an additional founding member of ComSovereign acquired 100,000 shares of common stock at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 31, 2019, ComSovereign acquired the capital stock of VEO, Inc. ("VEO"). VEO is a research and development company innovating silicon photonic ("SiP") technologies for use in copper-to-fiber-to-copper switching, high-speed computing, high-speed ethernet, autonomous vehicle applications, mobile devices and 5G wireless equipment. In connection with the purchase of VEO, ComSovereign issued 1,500,000 unregistered shares of Series A Redeemable Convertible Preferred stock ("Preferred Series A") to Dr. Chen K. Sun, who is also a founding member of ComSovereign.

On January 31, 2019, ComSovereign acquired the capital stock of InduraPower Inc. ("InduraPower"). InduraPower is a manufacturer of intelligent batteries and back-up power supplies for network systems and telecom nodes. It also provides power designs and batteries for aerospace, marine and automotive industries. In connection with the purchase of InduraPower, ComSovereign issued an aggregate of 800,000 unregistered Preferred Series A shares. Of those 800,000 shares, 688,800 Preferred Series A shares were issued to Sergei Begliarov, who is a founding member of ComSovereign and who became the Chief Executive Officer of InduraPower, and the balance was distributed to four other shareholders.

On March 4, 2019, ComSovereign acquired the capital stock of Silver Bullet Technology, Inc. ("Silver Bullet"). Silver Bullet is an engineering firm that designs and develops next generation network systems and components, including large-scale network protocol development, software-defined radio-systems and wireless network designs. In connection with the purchase of Silver Bullet, ComSovereign issued 300,000 unregistered Preferred Series A shares to Dr. Dustin McIntire, who is a founding member of ComSovereign and who became the Company's Chief Technology Officer.

On April 1, 2019, ComSovereign acquired the capital stock of DragonWave-X LLC ("DragonWave") and Lextrum, Inc. ("Lextrum"). DragonWave is a manufacturer of high-capacity microwave and millimeter point-to-point telecom backhaul radio units. Lextrum is a manufacturer of full-duplex wireless technologies and components, including multi-reconfigurable radio frequency antennae and software programs. This technology enables the doubling of a given spectrum band by allowing simultaneous transmission and receipt of radio signals on the same frequencies. In connection with the purchase of DragonWave and Lextrum, ComSovereign issued an aggregate of 13,237,149 shares of common stock to the shareholders of the parent company of DragonWave and Lextrum. Included in those shareholders were Daniel L. Hodges, the Chairman of the parent company, and John E. Howell, the Director and Chief Executive Officer of the parent company. In accordance with the subsections of ASC 805-50, Business Combinations, Transactions Between Entities Under Common Control, the Company noted common control did not exist based on either voting interests or qualitative factors; therefore, the Company concluded that the transaction was considered at arms-length and accounted for the transaction based on ASC 805, Business Combinations.

On November 15, 2019, the 2,600,000 outstanding shares of Preferred Series A were exchanged for an aggregate of 2,600,000 shares of ComSovereign's common stock.

Basis of Presentation

The accompanying financial statements of the Company were prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The historical information is not necessarily indicative of the Company's future results of operations, financial position or cash flows.

Principle of Consolidation

The consolidated financial statements as of, and for the period from January 10, 2019 (inception) to December 31, 2019 ("fiscal 2019") include the accounts of the Company and its subsidiaries: Drone AFS Corp., Lighter Than Air Systems Corp., DragonWave, Lextrum, Silver Bullet, VEO and InduraPower.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

Cash and cash equivalents are represented by operating accounts or money market accounts maintained with insured financial institutions, including all short-term, highly-liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December 31, 2019.

Accounts Receivable and Credit Policies

Trade accounts receivable consist of amounts due from the sale of the Company's products and services. Such accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 45 days of receipt of the invoice. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts based on historical collection experience and a review of the current status of trade accounts receivable. As of December 31, 2019, the Company characterized $690,830 as uncollectible.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and trade accounts receivables. The Company places its cash with high-credit-quality financial institutions. At times, such cash may be in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance coverage limit of $250,000 per depositor. As a result, there could be a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company has not experienced any losses due to these excess deposits and believes the risk is not significant. With respect to trade receivables, the Company routinely assesses the financial strength of its customers and, as a consequence, believes that the receivable credit risk exposure is limited.

Related Parties

The Company accounts for related party transactions in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 850, Related Party Disclosures. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Inventory

Inventory is valued at the lower of cost and net realizable value ("NRV"). The cost of inventory is calculated on a standard cost basis, which approximates weighted average actual cost. NRV is determined as the market value for finished goods, replacement cost for raw materials and finished goods market value less cost to complete for work in progress inventory. The Company regularly reviews inventory quantities on hand and records an impairment for excess and obsolete inventory based on factors including its estimated forecast of product demand, the stage of the product life cycle and production requirements for the units in question. Indirect manufacturing costs and direct labor expenses are allocated systematically to the total production inventory.

Investments

An investment is considered impaired if the fair value of the investment is less than its cost. Generally, an impairment is considered other-than-temporary unless (1) the Company has the ability and intent to hold an investment for a reasonable period of time sufficient for an anticipated recovery of the fair value up to (or beyond) the cost of the investment; and (2) evidence indicating that the cost of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. If impairment is determined to be other that temporary, then an impairment loss is recognized equal to the difference between the investment's cost and fair value.

Property and Equipment, net

Property and equipment are stated at cost when acquired. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:

Asset Type		Useful Life
Test equipment, research and development equipment		4-5 years
Computer hardware		2 years
Production fixtures		3 years
Leasehold improvements		5 years
Other		3-5 years

Expenditures for maintenance and repairs are charged to expense as incurred, whereas expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized.

Long-Lived Assets and Goodwill

The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, Property, Plant and Equipment, Impairment or Disposal of Long-lived Assets. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount 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 undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

The Company accounts for goodwill and intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other. ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. During fiscal 2019, the Company recorded no impairments.

Beneficial Conversion Features and Warrants

The Company evaluates the conversion feature of convertible debt instruments to determine whether the conversion feature was beneficial as described in ASC 470-30, Debt with Conversion and Other Options. The Company records a beneficial conversion feature ("BCF") related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital. The Company calculates the fair value of warrants with the convertible instruments using the Black-Scholes valuation model.

Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.

Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurement. As defined in ASC 820, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement) as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally-developed methodologies that result in management's best estimate of fair value.

The Company's financial instruments consist of cash, accounts receivable, accounts payable and notes payable. The Company has determined that the book value of its outstanding financial instruments as of December 31, 2019 approximated their fair value due to their short-term nature.

Debt Discounts

The Company records debt discounts as a deduction from the carrying amount of the related indebtedness on its Consolidated Balance Sheet with the respective debt discount amortized in interest expense on its Consolidated Statement of Operations. In connection with the issuance of certain notes payable and senior convertible debentures, the Company, or its subsidiaries, issued warrants to purchase shares of its common stock and has BCFs. See Note 10 – Debt Agreements and Note 15 – Warrants. The warrants are exercisable at various exercise prices per share. The Company evaluated the terms of these warrants at issuance and concluded that they should be treated as equity. The fair value of the warrants was determined by using the Black-Scholes model and was recorded as a debt discount offsetting the carrying value of the debt obligation in the Consolidated Balance Sheet.

As described above under Beneficial Conversion Features and Warrants, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.

Debt Issuance Costs

The Company presents debt issuance costs as a direct deduction from the carrying amount of the related indebtedness on its Consolidated Balance Sheet and amortizes these costs over the term of the related debt liability using the straight-line method, which approximates the effective interest method. Amortization is recorded in interest expense on the Consolidated Statement of Operations.

Foreign Currency Translation

The Company's operations and balances denominated in foreign currencies, including those of its foreign Canadian subsidiary, DragonWave, that are primarily a direct and integral component or extension of the Company's operations, are translated into U.S. dollars ("USD") using the following: monetary assets and liabilities are translated at the period end exchange rate; non-monetary assets are translated at the historical exchange rate; and revenue and expense items are translated at the average exchange rate and records the translation adjustments in accumulated other comprehensive income (loss) on the Consolidated Balance Sheet. Foreign currency transaction gains and losses are included in foreign currency transaction gain (loss) in the Consolidated Statement of Operations.

Revenue Recognition

In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance sets forth a five-step revenue recognition model which replaced the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance and to require more detailed disclosures. The five steps of the revenue recognition model are: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs:

●

ASU 2016-08 (Issued March 2016) — Principal versus Agent Consideration (Reporting Revenue Gross versus Net)

●

ASU 2016-10 (Issued April 2016) — Identifying Performance Obligations and Licensing

●

ASU 2016-12 (Issued May 2016) — Narrow-Scope Improvements and Practical Expedients

●

ASU 2016-20 (Issued December 2016) — Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers

The Company adopted these standards as of January 10, 2019 (date of incorporation).

At contract inception, the Company assesses the goods and services promised in the contract with customers and identifies a performance obligation for each. To determine the performance obligation, the Company considers all products and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. The timing of satisfaction of the performance obligation is not subject to significant judgment. The Company measures revenue as the amount of consideration expected to be received in exchange for transferring goods and services. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities.

The Company has determined that it has the following performance obligations related to its products and services: equipment, software license, extended warranty, training, installation and consulting service. Revenue from equipment, software license, training and installation are all recognized at a point in time when control of the goods is transferred to the customer, generally occurring upon shipment or delivery dependent upon the terms of the underlying contract, or services is completed. Revenue from extended warranties is recognized over time using an input method that results in a straight-line basis recognition over the warranty period, as the contract usually provides the customer equal benefit throughout the warranty period. Revenue from consulting services is recognized over time using an input method of labor hours expensed, as it directly measures the efforts toward satisfying the performance obligation.

For contracts with customers that contain multiple performance obligations, the Company accounts for the promised performance obligations separately as individual performance obligations if they are distinct. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, including the degree of interrelation and interdependence between obligations and whether or not the good or service significantly modifies or transforms another good or service in the contract. After identifying the separate performance obligations, the transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company generally determines the standalone selling prices based on the prices charged to customers. Judgment may be used to determine the standalone selling prices for items that are not sold separately, including taking into consideration either historical pricing practices or an adjusted market assessment. Unsatisfied and partially unsatisfied performance obligations as of the end of the reporting period primarily consist of products and services for which customer purchase orders have been accepted and that are in the process of being delivered.

Transaction price is calculated as the selling price less any variable consideration, consisting of rebates and discounts. Discounts provided to customers are known at contract inception. Rebates are calculated on the "expected value" method where the Company (1) estimates the probability of each rebate amount which could be earned by the distributor, (2) multiplies each estimated amount by its assigned probability factor, and (3) calculates a final sum of each of the probability-weighted amounts calculated in step (2). The sum calculated in step (3) is the rebate amount, which along with discounts reduces the amount of revenue recognized.

Costs incurred for shipping and handling are included in costs of goods sold on the Consolidated Statement of Operations. Amounts billed to a customer for shipping and handling are reported as revenue on the Consolidated Statement of Operations.

The Company provides limited warranties for products sold to customers, typically for 13 months, covering product defects. Such limited warranties are not sold separately and do not provide customers with a service in addition to assurance of compliance with agreed-upon specifications. Accordingly, these types of limited warranties are not considered to be separate performance obligations. In accordance with applicable guidance, the expected cost of the limited warranties is recorded as accrued warranty liability on the Consolidated Balance Sheet. Optional extended warranties are sold to customers and include additional support services.

The Company records contract assets when it has a right to consideration and records accounts receivable when it has an unconditional right to consideration. The Company records contract liabilities when cash payments are received (or unconditional rights to receive cash) in advance of fulfilling its performance obligations. When the services have been performed or the goods delivered, revenue will be recognized, and contract liabilities will be reduced.

The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. The majority of the Company's performance obligations in its contracts with customers relate to contracts with durations of less than one year. The transaction price allocated to unsatisfied performance obligations included in contracts with durations of more than 12 months is reflected in contract liabilities on the Consolidated Balance Sheet.

Applying a practical expedient, the Company recognizes the incremental costs of obtaining contracts, which primarily consist of sales commissions, as expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. If the service period, inclusive of any anticipated renewal, is longer than a year, the incremental direct costs are capitalized and amortized over the period of benefit. As of December 31, 2019, there were no such capitalized costs.

The Company also applies the practical expedient not to adjust the promised amount of consideration for the effects of a financing component if the Company expects, at contract inception, that the period between when the Company transfers a good or service to the customer and when the customer pays for the good or service will be one year or less. During fiscal 2019, there were no such financing components.

Research and Development

Research costs are expensed as incurred. Development costs are expensed as incurred unless they meet generally accepted accounting criteria for deferral and amortization. Development costs incurred prior to establishment of technological feasibility do not meet these criteria and are expensed as incurred.

Share-Based Compensation

Employees

The Company accounts for share-based compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant-date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. The Company has elected to adopt ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting ("Topic 718") and has a policy to account for forfeitures as they occur.

Non-Employees

Effective January 10, 2019, the Company adopted ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"), which aligns accounting for share-based payments issued to non-employees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to non-employees under Subtopic 505-50, Equity, Equity – Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company's consolidated financial statements.

Share-based compensation for employees and non-employees is recorded in the Consolidated Statement of Operations as a component of general and administrative expense with a corresponding increase to additional paid-in capital in shareholders' equity.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires organizations to recognize right-of-use ("ROU") lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. The FASB retained the distinction between finance leases and operating leases, leaving the effect of leases in the statement of comprehensive income and the statement of cash flows largely unchanged from previous U.S. GAAP. To further assist with adoption and implementation of ASU 2016-02, the FASB issued the following ASUs:

●

ASU 2018-10 (Issued July 2018) — Codification Improvements to Topic 842, Leases

●

ASU 2018-11 (Issued July 2018) — Leases (Topic 842): Targeted Improvements ("ASU 2018-11")

●

ASU 2018-20 (Issued December 2018) — Leases (Topic 842): Narrow-Scope Improvements for Lessors

●

ASU 2019-01 (Issued March 2019) — Leases (Topic 842): Codification Improvements

ASU 2018-11 provided entities with an additional transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. The new lease standard was effective for fiscal years beginning after December 15, 2018. The Company adopted these standards in the first quarter of 2019 utilizing the transition method allowed under ASU 2018-11. See Note 17 — Leases for more information related to the Company's leases.

Income Taxes

The Company accounts for income taxes utilizing ASC 740, Income Taxes. ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards and of deferred tax liabilities for taxable temporary differences. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Company's financial statements or tax returns. The Company has recorded a 100% valuation allowance against net deferred tax assets due to the uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company also follows the guidance for accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of December 31, 2019. If the Company has to recognize any interest or penalties associated with its tax positions or returns, any interest or penalties will be recorded as income tax expense in the Consolidated Statement of Operations.

Earnings or Loss per Share

The Company accounts for earnings or loss per share pursuant to ASC 260, Earnings Per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options, restricted stock awards and warrants for each period.

There were no adjustments to net loss, the numerator, for purposes of computing basic earnings per share. The following table sets out the computation of basic and diluted income (loss) per share:

(Amounts in US$'s, except share data)	January 10, 2019 (Inception) to December 31, 2019
Numerator:
Net loss	$	(27,545,255	)

Numerator for basic earnings per share - loss available to common shareholders	$	(27,545,255	)

Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding		48,714,099
Dilutive effect of warrants and options		—
Denominator for diluted earnings per share - weighted average common shares outstanding and assumed conversions		48,714,099
Basic loss per common share	$	(0.57	)
Diluted loss per common share	$	(0.57	)

Potential common shares issuable to employees, non-employees and directors upon exercise or conversion of shares are excluded from the computation of diluted earnings per common share when the effect would be anti-dilutive. All potential common shares are dilutive in periods of net loss available to common shareholders. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company's common stock for the period, regardless of whether the Company is in a period of net loss available to common shareholders. The following weighted-average potential common shares were excluded from the diluted loss per common share as their effect was anti-dilutive: stock options of 837,479, restricted stock units of 156,091 and warrants of 48,498.

Reportable Segments

U.S. GAAP establishes standards for reporting financial and descriptive information about a company's reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our Chief Executive Officer, who currently reviews the financial performance and the results of operations of our operating subsidiaries on a consolidated basis when making decisions about allocating resources and assessing performance of our company. Accordingly, we currently consider ourselves to be in a single reporting segment for reporting purposes focused on the North American development, manufacturing and production of products and services for the telecom infrastructure market.

As we are still in the early stages of developing our company, we have historically managed our subsidiaries within this single operating segment and do not assess the performance of our product lines or geographic regions or other measures of income or expense, such as product expense, operating income or net income. Each of our subsidiaries is operated under the same senior management of our company, and we view the operations of our subsidiaries as a whole for making business decisions. Employees of one subsidiary, particularly mechanical engineers, are often called upon to assist in the operations of another subsidiary. As the development of our company matures and we move toward full scale production with increased marketing efforts, we will continue to evaluate additional segment disclosure requirements.

Recent Accounting Pronouncements

Management believes there have not been any recently issued, but not effective, accounting standards which, if currently adopted, would have a material effect on the Company's financial statements.

Business Acquisitions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

BUSINESS ACQUISITIONS

3. BUSINESS ACQUISITIONS

The Company's acquisitions are accounted for such that the assets acquired and liabilities assumed are recognized at their acquisition date fair values, with any excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill.

For fiscal 2019, the Company recorded the following acquisitions.

VEO, Inc.

On January 31, 2019, ComSovereign entered a stock-for-stock exchange with the stockholder of VEO. At the effective date of the acquisition, all of the outstanding capital stock of VEO that was issued and outstanding at such time was exchanged for 1,500,000 unregistered Preferred Series A shares of ComSovereign.

Purchase consideration has been evaluated based on the business enterprise valuation of VEO. The shares of Preferred Series A issued to acquire VEO were valued at $8.81 per share (non-marketable basis).

VEO Purchase Price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		1,500,000
Per share value	$	8.81
Purchase price	$	13,215,000

The allocation of the total preliminary estimated purchase price to the tangible and intangible assets acquired and liabilities assumed by ComSovereign based on the estimated fair values as of January 31, 2019 was as follows:

(Amounts in US$'s)	Fair Value
Cash	$	55,261
Fixed and other long-term assets		4,000
Assumed liabilities		(40,531	)
Intangible assets and goodwill:
Technology		6,410,000
Goodwill		6,786,270
Total intangible assets and goodwill		13,196,270
Total Consideration	$	13,215,000

InduraPower, Inc.

On January 31, 2019, ComSovereign entered a stock-for-stock exchange with the stockholders of InduraPower. At the effective date of the acquisition, all of the outstanding capital stock of InduraPower that was issued and outstanding at such time was exchanged for 800,000 unregistered shares of Preferred Series A of ComSovereign.

Purchase consideration has been evaluated based on the business enterprise valuation of InduraPower. The shares of Preferred Series A issued to acquire InduraPower were valued at $8.81 per share (non-marketable basis).

InduraPower Purchase Price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		800,000
Per share value	$	8.81
Purchase price	$	7,048,000

(Amounts in US$'s)	Fair Value
Cash	$	18,791
Debt-free net working capital (excluding cash)		263,459
Fixed and other long-term assets		97,384
Assumed liabilities		(1,240,097	)
Intangible assets and goodwill:
Technology		1,000,000
Goodwill estimate		6,908,463
Total intangible assets and goodwill		7,908,463
Total Consideration	$	7,048,000

Silver Bullet Technology, Inc.

On March 4, 2019, ComSovereign entered a stock-for-stock exchange with the stockholder of Silver Bullet. At the effective date of the acquisition, all of the outstanding capital stock of Silver Bullet that was issued and outstanding at such time was exchanged for 300,000 unregistered shares of Preferred Series A of ComSovereign.

Purchase consideration has been evaluated based on the business enterprise valuation of Silver Bullet. The shares of Preferred Series A issued to acquire Silver Bullet were valued at $8.81 per share (non-marketable basis).

Silver Bullet Purchase Price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		300,000
Per share value	$	8.81
Purchase price	$	2,643,000

(Amounts in US$'s)	Fair Value
Cash	$	273,290
Debt-free net working capital (excluding cash)		103,537
Fixed and other long-term assets		21,000
Liabilities assumed		(84,382	)
Intangible assets and goodwill:
Technology		210,000
Trade name		200,000
Customer relationships		400,000
Goodwill estimate		1,519,555
Total intangible assets and goodwill		2,329,555
Total Consideration	$	2,643,000

DragonWave-X LLC and Lextrum, Inc.

On April 1, 2019, ComSovereign entered into a stock-for-stock exchange with the owner of DragonWave and Lextrum. At the effective date of the acquisition, all of the equity interests of DragonWave and Lextrum were exchanged for an aggregate of 13,237,149 shares of ComSovereign's restricted common stock.

Purchase consideration has been evaluated based on the business enterprise valuation of DragonWave and Lextrum. The shares of common stock issued to acquire DragonWave and Lextrum were valued at $4.40 per share (non-marketable basis).

DragonWave and Lextrum Purchase Price

(Amounts in US$'s, except share data)	Consideration
Number of common stock paid		13,237,149
Per share value	$	4.40
Purchase price	$	58,243,456
DragonWave	$	42,081,392
Lextrum	$	16,162,064

DragonWave

(Amounts in US$'s)	Fair Value
Cash	$	1,274,072
Debt-free net working capital (excluding cash)		(1,099,194	)
Note payable		(5,690,000	)
Fixed and other long-term assets		2,455,714
Intangible assets:
Technology		13,750,000
Trade name		4,210,000
Customer relationships		13,080,000
Goodwill estimate		14,100,800
Total intangible assets and goodwill		45,140,800
Total Consideration	$	42,081,392

Lextrum

The allocation of the total preliminary estimated purchase price to the acquired tangible and intangible assets and liabilities assumed by ComSovereign based on the estimated fair values as of April 1, 2019 was as follows:

(Amounts in US$'s)	Fair Value
Cash	$	8,105
Debt-free net working capital (excluding cash)		(103,611	)
Fixed and other long-term assets		—
Intangible assets:
Technology		11,430,000
Goodwill estimate		4,827,570
Total intangible assets		16,257,570
Total Consideration	$	16,162,064

Historical Drone Aviation Holding Corp

The allocation of the total preliminary estimated purchase price to Drone Aviation Holding Corp's acquired tangible and intangible assets and assumed liabilities based on the estimated fair values as of November 27, 2019 was as follows:

(Amounts in US$'s)	Fair Value
Working capital	$	2,399,800
Other assets		220,672
Intangible assets and goodwill:
Intellectual property		3,729,537
Trade name		1,233,204
Customer relationships		1,630,792
Noncompete		937,249
Goodwill estimate		18,106,237
Total intangible assets and goodwill		25,637,019
Total Consideration	$	28,257,491

Going Concern

12 Months Ended

Dec. 31, 2019

Going Concern

GOING CONCERN

4. GOING CONCERN

On August 27, 2014, the FASB issued ASU 2014-05, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires management to assess a company's ability to continue as a going concern within one year from the financial statement issuance and to provide related note disclosures in certain circumstances.

The accompanying consolidated financial statements and notes have been prepared assuming the Company will continue as a going concern. For fiscal 2019, the Company generated negative cash flows from operations of $6,853,247 and had an accumulated deficit of $27,545,255 and negative working capital of $6,477,230.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund growth initiatives. The Company intends to position itself so that it will be able to raise additional funds through the capital markets and secure lines of credit. The Company is in discussion with its investment bankers regarding the sale of approximately $13,000,000 of equity in the third quarter of 2020.

The Company's fiscal operating results, accumulated deficit and negative working capital, among other factors, raise substantial doubt about the Company's ability to continue as a going concern. However, the Company believes the fundraising actions outlined above, and its future operating cash flows, will enable it to meet its liquidity requirements through June 2021. There can be no assurance that the Company will be successful in any capital-raising efforts that it may undertake, and the failure of the Company to raise additional capital could adversely affect its future operations and viability.

Inventory

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

INVENTORY

5. INVENTORY

Inventory consisted of the following as of December 31, 2019:

(Amounts in US$'s)	December 31, 2019
Raw materials	$	1,041,256
Work in progress		1,566,147
Finished goods		3,060,518
Total production inventory		5,667,921
Inventory held for customer service/warranty		56,409
Total inventory		5,724,330
Reserve		(1,052,934	)
Total inventory, net	$	4,671,396

Prepaid Expenses

12 Months Ended

Dec. 31, 2019

Prepaid Expense, Current [Abstract]

PREPAID EXPENSES

6. PREPAID EXPENSES

Prepaid expenses consisted of the following as of December 31, 2019:

(Amounts in US$'s)	December 31, 2019
Prepaid products and services	$	873,617
Prepaid rent and security deposit		43,112
	$	916,729

Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

7. PROPERTY AND EQUIPMENT, NET

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

(Amounts in US$'s)	December 31, 2019
Shop machinery and equipment	$	8,100,667
Computers and electronics		558,561
Office furniture and fixtures		341,214
Leasehold improvements		222,332
		9,222,774
Less - accumulated depreciation		(7,764,668	)
	$	1,458,106

For fiscal 2019, the Company invested $87,038 in capital expenditures.

The Company recognized $623,884 of depreciation expense for fiscal 2019.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amount of goodwill for fiscal 2019:

(Amounts in US$'s)	Total
Balance at January 10, 2019 (inception)	$	—
Acquisitions		56,386,796
Balance at December 31, 2019	$	56,386,796

The following table sets forth the gross carrying amounts and accumulated amortization of the Company's intangible assets as of December 31, 2019:

(Amounts in US$'s)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets:
Trade names	$	5,643,204	$	(489,222	)	$	5,153,982
Technology		32,800,000		(4,308,333	)		28,491,667
Customer relationships		15,110,792		(2,054,894	)		13,055,898
Intellectual property		3,729,537		(51,799	)		3,677,738
Noncompete		937,249		(39,052	)		898,197
Total definite-lived intangible assets	$	58,220,782	$	(6,943,300	)	$	51,277,482

The following table sets forth the amortization expense (actual and estimated) for intangible assets, assuming no additional amortizable intangible assets, for fiscal 2019 and each of the following five years:

	Actual		Estimated
(Amounts in US$'s)	2019		2020		2021		2022		2023		2024
Amortization expense	$	6,943,300	$	10,385,211	$	10,346,159	$	9,916,587	$	9,916,587	$	7,861,692

Revolving Line of Credit and Note Payable

12 Months Ended

Dec. 31, 2019

Line of Credit Facility [Abstract]

REVOLVING LINE OF CREDIT AND NOTE PAYABLE

9. REVOLVING LINE OF CREDIT AND NOTE PAYABLE

Revolving Line of Credit

In 2017, the Company issued a promissory note (the "CNB Note") to City National Bank of Florida ("CNB") in the principal amount of $2,000,000, with a maturity date of August 2, 2018. In 2018, the maturity date of the CNB Note was extended to August 2, 2019. On August 29, 2019, the maturity date of the CNB Note was extended to August 2, 2020. The August 2019 modification was evaluated and it was determined that it did not qualify as an extinguishment of debt. The CNB Note allows for a CNB line of credit with advances that may be requested by the Company until the maturity date of August 2, 2020 so long as no event of default exists under the CNB Note or certain other events.

The CNB Note bears an interest rate equal to the average of the interest rates per annum at which U.S. Dollars are offered in the London Interbank Borrowing Market ("LIBOR") for a 30-day period (the "Index") plus 2.9% over the Index. The Company will pay to CNB a late charge of 5.0% of any monthly payment not received by CNB within 10 calendar days after its due date. The Company may prepay the CNB Note at any time without penalty. In the event of a default, the interest rate will increase to the highest lawful rate. As of December 31, 2019, the interest rate on the CNB Note is 4.6% per annum.

Under the terms of the CNB Note, the Company is obligated to maintain its primary operating account with CNB with a minimum average annual balance of $1,600,000. In the event the Company does not maintain this account balance, CNB may charge the Company a fee equal to 2% of the deficiency as additional interest under the CNB Note. Management believes that it was in compliance at all times during the year with this covenant and was never charged the 2% deficiency fee. The CNB Note is personally guaranteed by the Company's former Chief Executive Officer, Mr. Jay H. Nussbaum and his estate ("Guarantors"). The Company and the Guarantors are obligated to maintain aggregate unencumbered liquidity of no less than $6,000,000 in accounts with recognized financial institutions or licensed brokerage firms during the term of the CNB Note. Management believes that it was in compliance at all times during the year with this covenant. In addition, the CNB Note is secured by all of the Company's accounts, inventory and equipment, along with an assignment of a $120,000 bank account the Company maintains at CNB. The Company maintained the $120,000 bank account as of December 31, 2019. As of December 31, 2019, $2,000,000 had been drawn against the CNB line of credit.

See Note 20 – Subsequent Events for details regarding the payoff of the CNB Note.

Indemnification Agreement

On August 3, 2017, the Company entered into an Indemnification Agreement with Mr. Nussbaum in order to indemnify and defend him to the fullest extent permitted by law for any claim, expense or obligation which might arise as a result of his guarantee of the CNB Note.

Debt Agreements

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

DEBT AGREEMENTS

10. DEBT AGREEMENTS

Long-term debt consisted of the following as of December 31, 2019:

		December 31, 2019
(Amounts in US$'s)	Maturity Date	Amount Outstanding			Interest Rate
Secured Notes Payable
Secured note payable	February 28, 2020	$	788,709			8.5	%
Secured note payable	March 1, 2022		224,288			9.0	%
Secured note payable	September 1, 2021		21,571			7.9	%
Secured note payable	November 26, 2021		2,000,000			9.0	%
Total secured notes payable			3,034,568
Notes Payable
Equipment financing loan	September 15, 2020		3,828			8.8	%
Note payable	July 9, 2019		200,000			18.0	%
Note payable	September 1, 2019		200,000			18.0	%
Note payable	September 30, 2020		500,000			10.0	%
Note payable	September 30, 2020		175,000			10.0	%
Note payable	March 30, 2020		5,000,000			10.0	%
Note payable	July 9, 2019		200,000			18.0	%
Notes payable	December 6, 2019		450,100			18.0	%
Total notes payable			6,728,928
Senior Convertible Debentures
Senior convertible debenture	December 31, 2019		100,000			15.0	%
Senior convertible debenture	December 31, 2019		25,000			15.0	%
Senior convertible debenture	December 31, 2021		250,000			10.0	%
Total senior convertible debentures			375,000
Total long-term debt			10,138,496
Less unamortized discounts and debt issuance costs			(4,749,004	)
Total long-term debt, less discounts and debt issuance costs			5,389,492
Less current portion of long-term debt			(5,389,492	)
Debt classified as long-term debt		$	—

Secured Notes Payable

In August 2016, InduraPower entered into a promissory note not to exceed the principal amount of $550,000 bearing interest at 8.5% per annum with a maturity date of August 31, 2018. InduraPower could draw funds under the note through February 28, 2017. Interest on this note was payable monthly and the full principal balance was due at maturity. On September 11, 2019, the note was amended with both parties agreeing that the outstanding balance of $813,709 would be due on February 28, 2020. As of December 31, 2019, an aggregate principal amount of $788,709 was outstanding under this note. This promissory note is currently past due. This promissory note is secured by substantially all of the assets of InduraPower.

In August 2016, InduraPower entered into a promissory note in the principal amount of $450,000 that bears interest at 9.0% per annum and matures on March 1, 2022. Accrued interest only payments were due monthly beginning October 1, 2016 through March 1, 2017. Monthly payments of $9,341 for interest and principal are due on this note for the following 60 consecutive months. As of December 31, 2019, an aggregate principal amount of $224,288 was outstanding under this note. This promissory note is secured by all assets, certain real estate and cash accounts of InduraPower and is guaranteed by certain officers of InduraPower. This promissory note is subjected to clauses, whereby InduraPower is required to meet certain financial and non-financial terms. InduraPower did not fulfil the requirements to maintain a balance of at least $155,159 at J.P. Morgan while the promissory note is outstanding and maintain a debt service coverage ratio of at least 1.25. Due to this breach of clauses, the promissory note holder is contractually entitled to request immediate repayment of the outstanding promissory note, and/or increase the interest rate up to an additional 18% per annum. The outstanding balance is presented as a current liability as of December 31, 2019. The promissory note holder had not requested early repayment of the loan as of the date when these financial statements were approved by the Board of Directors.

In August 2016, InduraPower entered into a promissory note in the principal amount of $50,000 with an interest rate of 7.785% per annum and a maturity date of September 1, 2021. Beginning April 1, 2017, equal monthly payments of $1,011 for interest and principal are due on the note for 60 consecutive months. As of December 31, 2019, an aggregate principal amount of $21,571 was outstanding under this note. This promissory note is secured by business equipment, certain real estate and cash accounts of InduraPower and is guaranteed by certain officers of InduraPower. This promissory note is subjected to clauses, whereby InduraPower is required to meet certain financial and non-financial terms. InduraPower did not fulfil the requirements to maintain a balance of at least $155,159 at J.P. Morgan while the promissory note is outstanding and maintain a debt service coverage ratio of at least 1.25. Due to this breach of clauses, the promissory note holder is contractually entitled to request immediate repayment of the outstanding promissory note, and/or increase the interest rate up to an additional 18% per annum. The outstanding balance is presented as a current liability as of December 31, 2019. The promissory note holder had not requested early repayment of the loan as of the date when these financial statements were approved by the Board of Directors.

In November 2019, DragonWave entered into a secured loan agreement with an individual lender pursuant to which DragonWave received a $2,000,000 loan that bears interest at the rate of 9% per annum and matures on November 26, 2021. Accrued interest is calculated on a compound basis and is payable semi-annually in May and November of each year. Principal is due in full at maturity but can be prepaid in full or in part without penalty. The loan is secured by all of the assets of DragonWave and is guaranteed by ComSovereign. As of December 31, 2019, an aggregate principal amount of $2,000,000 was outstanding under this note. In connection with this loan, DragonWave incurred $20,000 of debt discounts and $4,700,000 of debt issuance costs. The debt issuance costs were the result of the issuance of 1,050,000 shares of common stock of the Company and a cash payment of $80,000. During fiscal 2019, $196,667 of these costs were amortized and recognized in interest expense in the Consolidated Statement of Operations. As of December 31, 2019, there were $19,167 of debt discounts and $4,504,167 of debt issuance costs remaining.

Notes Payable

InduraPower has a financing loan for certain of its equipment that bears interest at 8.775% per annum and is due on September 15, 2020. Principal and interest payments of $1,872 are due quarterly. As of December 31, 2019, the loan had an outstanding balance of $3,828.

In September 2017, InduraPower entered into a promissory note in the principal amount of $137,500 that bore interest at a rate of 12% per annum and was due on October 17, 2017. The note was repaid during fiscal 2019. On June 10, 2019, InduraPower entered into a new promissory note with the same lender for $200,000 with an original issue discount of $6,000 and a maturity date of July 9, 2019. The full $200,000 balance was due at maturity. Since this note was not repaid and is currently past due, interest is being accrued at a rate of 18% per annum. Additionally, on August 14, 2019, InduraPower borrowed from the same lender an additional $200,000 promissory note that matured on September 1, 2019. As this note is currently past due, interest is being accrued at a rate of 18% per annum. As of December 31, 2019, an aggregate principal amount of $400,000 was outstanding under these notes.

In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller on a promissory note in the principal amount of $500,000 bearing interest at 12.0% per annum with a maturity date of October 17, 2017. On October 1, 2019, the maturity date was extended until September 30, 2020 and the interest rate was reduced to 10% per annum. All unpaid accrued interest from October 2017 through September 30, 2019 was converted into 150,000 shares of common stock of ComSovereign. Accrued interest and the full principal balance are due at maturity. As of December 31, 2019, an aggregate principal amount of $500,000 was outstanding under this note. On April 30, 2020, the Company also issued 14,496 shares of common stock in lieu of an aggregate cash interest payment payable by ComSovereign through December 31, 2019 on this outstanding note payable.

In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller of a promissory note in the principal amount of $175,000 that bore interest at the rate of 15% per annum and was due on November 30, 2017. The interest rate increased to 18% per annum when the note became past due. On October 1, 2019, ComSovereign amended the promissory note to extend the maturity date to September 30, 2020 and to change the interest rate to 10% per annum. Both parties to the note also agreed to convert all unpaid accrued interest into 10,000 shares of common stock of ComSovereign, valued at $44,000. Accrued interest and principal are due and payable at maturity. As of December 31, 2019, an aggregate principal amount of $175,000 was outstanding under this note.

In October 2017, DragonWave entered into a 90-day promissory note in the principal amount of $4,400,000 and received proceeds of $4,000,000. In January 2018, the promissory note was amended to accrue interest at the rate of 8% per annum and to extend the maturity date another 90 days. In August 2018, the maturity date was extended to December 31, 2018 with new payment terms. In September 2018, the maturity date was extended to February 28, 2019 with new payment terms. In October 2018, DragonWave amended the promissory note to clarify the payment of interest. On September 3, 2019, the promissory note was increased to $5,000,000 as all unpaid accrued interest was added to the principal balance. Additionally, the maturity date was extended to March 30, 2020 and the interest rate was changed to 10% per annum. Under this new amendment, principal and interest payments are due and payable monthly. As of December 31, 2019, an aggregate principal amount of $5,000,000 was outstanding under this note. On April 21, 2020, the maturity date of this note was extended to August 31, 2020, and the interest rate was increased to 12% per annum.

On June 10, 2019, ComSovereign entered into a promissory note in the principal amount of $200,000 with an original issue discount of $6,000 and a maturity date of July 9, 2019. The full $200,000 balance was due at maturity. Since this note was not repaid and is currently past due, interest is being accrued at a rate of 18% per annum. As of December 31, 2019, an aggregate principal amount of $200,000 was outstanding under this note.

In September 2019, DragonWave entered into a $5,250,000 promissory note that was not fully funded and was guaranteed by ComSovereign. DragonWave received $3,485,000 in proceeds. As incentive to enter into the promissory note, the noteholder was issued 500,000 shares of ComSovereign's common stock for the total purchase price of $4.40 per share, or $2,200,000, of which only $5,000 was paid in cash. The noteholder was later granted detachable warrants to purchase an aggregate of 2,442,500 shares of ComSovereign's common stock at a price of $0.01 per share. As of December 31, 2019, DragonWave had repaid the principal amount in full along with all accrued interest, and the warrants had been converted into 2,442,500 shares of ComSovereign's common stock at an exercise price of $0.01 per share or noncash proceeds $24,425.

On November 7, 2019, ComSovereign entered into several promissory notes in the aggregate principal amount of $450,100 that bore an effective interest rate at 133% per annum due to a single payment incentive, which matured on December 6, 2019. An aggregate principal amount of $200,100 was owed to three related parties out of the $450,100 promissory notes. Accrued interest and principal were due and payable at maturity. These notes are currently past due, and the Company is using an interest rate of 18% per annum to accrue interest on these notes. As of December 31, 2019, an aggregate principal amount of $450,100 was outstanding under these notes.

Senior Convertible Debentures

In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller of $100,000 aggregate principal amount of 8% Senior Convertible Debentures of the seller that bore interest at the rate of 8% per annum and matured on December 31, 2019. Interest was payable semi-annually in cash or, at the seller's option, in shares of the seller's common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering. As of December 31, 2019, an aggregate principal amount of $100,000 was outstanding under these debentures. These debentures are past due and interest accrues at a rate of 15% per annum. On April 30, 2020, these debentures were modified to remove the conversion feature and only have settlement through cash.

In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller of $25,000 aggregate principal amount of 8% Senior Convertible Debentures of the seller that bore interest at the rate of 8% per annum and matured on December 31, 2019. Interest was payable semi-annually in cash or, at the seller's option, in shares of the seller's common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering. As of December 31, 2019, an aggregate principal amount of $25,000 was outstanding under these debentures. These debentures are past due and interest accrues at a rate of 15% per annum. On April 30, 2020, these debentures were modified to remove the conversion feature and only have settlement through cash.

In July and August 2019, ComSovereign sold $1,000,000 principal amount of 9% Senior Convertible Debentures that bore interest at the rate of 9% per annum and matured on December 31, 2021. ComSovereign received $850,000 in cash. Interest was payable in arrears in June and December of each year in cash or, at ComSovereign's option, in shares of common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering. The noteholders were also granted detachable warrants to purchase an aggregate of 100,000 shares of ComSovereign's common stock at a price of $5.00 per share. ComSovereign allocated the note proceeds based on relative fair value and recorded the warrants as a discount to the debt in the amount of $63,880. ComSovereign also recorded a $150,000 debt discount and $786,549 for the BCF associated with the debentures. Prior to conversion, the warrants were cancelled and 132,500 warrants were issued for $1.50 per share. On November 15, 2019, ComSovereign converted the outstanding warrants into 132,500 shares of ComSovereign's common stock and the full principal amount of such debentures and accrued interest into 1,100,000 shares of ComSovereign's common stock.

On September 24, 2019, ComSovereign sold $250,000 aggregate principal amount of 10% Senior Convertible Debentures that bear interest at a rate of 10% per annum and mature on December 31, 2021. Interest is paid semi-annually in arrears in June and December of each year in cash or, at ComSovereign's option, in shares of common stock at the conversion price that was equal to the lesser of (1) $2.50 or (2) a future effective price per share of any common stock sold by ComSovereign. Upon an event of default, the interest rate shall automatically increase to 15% per annum. As of December 31, 2019, an aggregate principal amount of $250,000 was outstanding under these debentures. In connection with these debentures, ComSovereign recognized a BCF of $69,000 and a debt discount of $181,000 associated with the issuance of warrants, both of which are recorded as debt discounts. During fiscal 2019, $25,000 of these costs were amortized and recognized in interest expense in the Consolidated Statement of Operations. As of December 31, 2019, there were $225,000 of debt discounts remaining. On April 30, 2020, these debentures were amended to provide for the conversion of the debentures into shares of the Company's common stock instead of ComSovereign's common stock. Additionally, the conversion price was changed from $2.50 per share to $0.756 per share. As a result, all the outstanding warrants were exercised at $0.01 per share into 283,530 shares of the Company's common stock. The Company also issued 6,700 shares of common stock on April 30, 2020 in lieu of an aggregate cash interest payment payable by ComSovereign through December 31, 2019 on these outstanding convertible debentures.

The agreements governing the secured notes payable, notes payable and senior convertible debentures contain customary covenants, such as debt service coverage ratios, limitations on liens, dispositions, mergers, entry into other lines of business, investments and the incurrence of additional indebtedness. As of December 31, 2019, the various subsidiaries were in compliance with all debt covenants under the applicable agreements except as noted above.

All debt agreements are subject to customary events of default. If an event of default occurs with respect to the debt agreements and is continuing, the lenders may accelerate the applicable amounts due.

Future maturities contractually required by the Company under long-term debt obligations are as follows for the years ending December 31:

(Amounts in US$'s)	Total
2020	$	7,888,496
2021		2,250,000
2022		—
2023		—
2024		—
Thereafter		—
Total	$	10,138,496

See Note 20 – Subsequent Events for details regarding additional debt incurred after December 31, 2019.

Related Party Transactions

12 Months Ended

Dec. 31, 2019

RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS

Receivable – Related Party

As of December 31, 2019, the receivables - related party balance was $1,595, which represented amounts owed by Dr. Dustin McIntire, the Company's Chief Technology Officer, for personal charges he incurred using his company credit card.

Accrued Liabilities – Related Party

As of December 31, 2019, the accrued liabilities – related party balance was $461,254, which represented amounts owed to various contractors, officers and employees of the Company as described below.

In August 2016, InduraPower entered into a promissory note in the principal amount of $50,000 that bears interest at 7.785% per annum and matures on September 1, 2021. At the same time, InduraPower also entered into a promissory note in the principal amount of $450,000 with the same lender that bears interest at 9.0% per annum and matures on March 1, 2022. A requirement of the promissory notes is to maintain a balance of at least $155,159 at J.P. Morgan while the promissory notes are outstanding. Sergei Begliarov, Chief Executive Officer of InduraPower, provided cash of $153,761 to comply with the requirements of the promissory notes. The $153,761 was recorded in accrued liabilities – related party as of December 31, 2019.

During 2019, Sergei Begliarov paid $71,199 worth of expense of behalf of InduraPower, and Daniel L. Hodges, Chairman and Chief Executive Officer of ComSovereign at the time, paid $6,588 of rent on behalf of InduraPower. Additionally, during 2019, TM Technologies, Inc. ("TM"), described below, paid $29,300 worth of expense of behalf of InduraPower. These amounts were recorded in accrued liabilities – related party as of December 31, 2019.

During 2018 and 2019, Daniel L. Hodges paid $29,120 of rent on behalf of Lextrum. This amount was recorded in accrued liabilities – related party as of December 31, 2019.

On November 10, 2017, the Company and Global Security Innovative Strategies, LLC ("GSIS"), a company in which David Aguilar, a member of the Company's Board of Directors, is a principal, entered in an agreement (the "GSIS Agreement") pursuant to which GSIS agreed to provide business development support and general consulting services for sales opportunities with U.S. government agencies and other identified prospects and consulting support services for the Company. The GSIS Agreement had an initial term of six months beginning on November 1, 2017. On September 26, 2018, the parties amended the GSIS Agreement to extend the period of service through September 2019 with monthly automatic renewals thereafter. The Company also agreed to issue an option to purchase 100,000 shares of the Company's common stock at a strike price of $1.00, or $100,000. This option immediately vested and terminates on September 26, 2022. Pursuant to the GSIS Agreement, GSIS is paid a fee of $10,000 per month. In addition, GSIS is paid for the expenses incurred in connection with the performance of its duties under the GSIS Agreement. Either party may terminate or renew the GSIS Agreement at any time, for any reason or no reason, upon at least 30 days' notice to the other party. GSIS was owed $23,036 for normal monthly retainers and expenses incurred as of December 31, 2019. This amount was recorded in accrued liabilities – related party as of December 31, 2019.

On March 21, 2019, concurrent with the resignation of Kevin Hess, the Company's former Chief Technology Officer, the Company and Cognitive Carbon Corporation ("CCC"), entered into an agreement pursuant to which CCC agreed to provide Chief Technology Officer services, sales and marketing services and outsourced software and platform development services which are to be provided personally by Kevin Hess or third-party development firms of his choosing for outsourced development. CCC will receive $19,750 per month for one year for the Chief Technology Officer services and potential bonuses and an amount up to $120,000 for outsourced software and platform development. Felicia Hess, the Company's Chief Quality Officer, who is married to Kevin Hess, is the President and a director of CCC. CCC was owed $148,250 for normal monthly fees and the 2019 bonus as of December 31, 2019. This amount was recorded in accrued liabilities – related party as of December 31, 2019.

Notes Payable – Related Party

On August 5, 2019, Mr. Hodges and his wife, loaned DragonWave $200,000 at an interest rate of 5.0% per annum and a maturity date of December 31, 2019. Interest was payable monthly while the full principal balance was due at maturity. As of December 31, 2019, $200,000 plus accrued interest was outstanding under the loan, and the loan was past due.

Mr. Hodges is also the founder, Chairman and Chief Executive Officer of TM Technologies, Inc. ("TM"). Mr. Hodges also controls TM by virtue of his ownership and control of a majority of the outstanding equity securities of TM. In October 2017, TM loaned $250,000 to DragonWave. On October 31, 2019, this loan was increased to $1,292,953 at an interest rate of 5% per annum with a maturity date of August 31, 2020. This loan was partially used to simulate and test emplacement of the modulation technology within one of DragonWave's Harmony line radios. Interest and principal are due at maturity. As of December 31, 2019, $1,292,953 plus accrued interest was outstanding under this loan.

Stock Awards

In January 2019, Daniel L. Hodges, Chairman and Chief Executive Officer of ComSovereign at such time, and John E. Howell, President of ComSovereign at such time, each acquired 12,000,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On January 22, 2019, three members of the Board of Directors of ComSovereign and an executive officer of ComSovereign acquired an aggregate of 2,150,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required. Additionally, four executive officers of InduraPower, Lextrum and VEO acquired an aggregate of 500,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.

On November 19, 2019, ComSovereign's Board of Directors granted an aggregate of 24,000 restricted stock awards ("RSAs") to three executives of DragonWave and Silver Bullet at a grant date fair value of $4.40 per share of common stock for a total value of $105,600. The total value was recognized during fiscal 2019 in share-based compensation expense.

On December 2, 2019, the Company's Board of Directors granted an aggregate of 1,900,000 RSAs to eight officers and directors at a grant date fair value of $0.82 per share of common stock for a total value of $1,558,000. The vesting period for these RSAs is as follows: 850,000 vest on the one-year anniversary of the grant date; 850,000 vest on the two-year anniversary of the original grant date; and 200,000 vest on the three-year anniversary of the original grant date. During fiscal 2019, $54,667 was recognized in share-based compensation expense after the ComSovereign Acquisition. See Note 14 – Share-Based Compensation for additional information.

See Note 20 – Subsequent Events for information regarding a new note payable with the Nussbaum estate.

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

SHAREHOLDERS' EQUITY

12. SHAREHOLDERS' EQUITY

ComSovereign had 5,000,000 Preferred Series A shares authorized for issuance and as of March 4, 2019 had 2,600,000 Preferred Series A shares issued and outstanding. All the Preferred Series A shares issued were for the acquisitions of VEO, InduraPower and Silver Bullet during fiscal 2019. On November 15, 2019, each Preferred Series A share was converted into one common share of ComSovereign. After the conversion, the Preferred Series A shares ceased to exist and were no longer authorized for issuance.

As of December 31, 2019, the Company had 100,000,000 shares of preferred stock authorized for issuance, none of which were issued and outstanding.

As of December 31, 2019, the Company had 300,000,000 shares of common stock authorized for issuance and 128,326,243 shares of common stock issued and outstanding.

As of December 31, 2019, the Company had outstanding warrants to purchase an aggregate of 503,523 shares of common stock. Of those 503,523 warrants, 283,523 had an exercise price of $0.01 per share; 70,000 had an exercise price of $5.00 per share; 100,000 had an exercise price of $1.00 per share; and the remaining 50,000 had an exercise price of $0.50 per share.

On September 4, 2019, the Company entered into a Redemption Agreement with Robert Guerra, a former director of the Company, pursuant to which 100,000 shares of common stock were redeemed for $0.50 per share, or an aggregate of $50,000. These redeemed shares were recorded as treasury stock on the Consolidated Balance Sheet as of December 31, 2019.

Dividends

The Company did not pay dividends to holders of its common stock during fiscal 2019. The determination to pay dividends on common stock will be at the discretion of the Board of Directors and will depend on applicable laws and the Company's financial condition, results of operations, cash requirements, prospects and such other factors as the Board of Directors may deem relevant. In addition, current or future loan agreements may restrict the Company's ability to pay dividends. The Company does not anticipate declaring or paying any cash dividends on common stock in the foreseeable future.

Revenue

12 Months Ended

Dec. 31, 2019

Revenue [Abstract]

REVENUE

13. REVENUE

The following table is a summary of the Company's timing of revenue recognition for fiscal 2019:

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Timing of revenue recognition:
Services and products transferred at a point in time	$	2,803,026
Services and products transferred over time		1,909,186
Total revenue	$	4,712,212

The Company disaggregates revenue by source and geographic destination, to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Revenue by source consisted of the following for fiscal 2019:

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Revenue by products and services:
Products	$	2,702,410
Services		2,009,802
Total revenue	$	4,712,212

Revenue by geographic destination consisted of the following for fiscal 2019:

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Revenue by geography:
North America	$	3,476,977
International		1,235,235
Total revenue	$	4,712,212

See Note 2 – Summary of Significant Accounting Policies for the Company's policies on revenue recognition.

Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

14. SHARE-BASED COMPENSATION

Stock Options

The following information relates to the stock option activity of the Company prior to the ComSovereign Acquisition.

During 2017, the Company granted the following options outside of any equity plan with the attributes described below to purchase the Company’s common stock (amounts in US$’s, except share data):

Grant Date	Underlying Shares		Option Price		Full Vesting Date	Expiration Date
January 9, 2017		100,000	$	2.90	January 9, 2019	January 7, 2021
August 3, 2017		5,130,000	$	0.50	August 3, 2017	August 3, 2021
November 9, 2017		2,000,000	$	0.50	November 9, 2017	November 9, 2021
December 13, 2017		200,000	$	1.00	November 13, 2019	December 13, 2021

During 2018, the Company granted the following options outside of any equity plan with the attributes described below to purchase the Company’s common stock (amounts in US$’s, except share data):

Grant Date

Underlying Shares

Vesting

Option Price

Full Vesting Date

Expiration Date

March 28, 2018

100,000

50% in one year; 50% in two years from grant date

1.00

March 28, 2020

March 28, 2022

May 16, 2018

330,000

Immediate vesting

1.00

May 16, 2018

May 16, 2022

May 16, 2018

130,000

50% in one year; 50% in two years from grant date

1.00

May 16, 2020

May 16, 2022

September 26, 2018

6,000,000

$4,000,000 new government orders

0.65

December 21, 2018

September 26, 2022

All of the above options were outstanding as of January 10, 2019.

On March 20, 2019, the Company granted options outside of any equity plan to two employees and one non-employee for the purchase of an aggregate of 180,000 shares of the Company’s common stock. All the options have an exercise price of $1.06 per share and expire on March 20, 2023. Under the Black-Scholes option pricing model, the fair value of the 180,000 options on the date of grant was estimated at $123,130.

The following table summarizes the assumptions used to estimate the fair value of stock options granted during fiscal 2019:

	2019
Expected dividend yield		0%
Expected volatility		90%
Risk-free interest rate		2.40-2.47%
Expected life of options		4.0 years

Total recognized compensation expense related to the Company’s stock options was $157,441 for fiscal 2019. All options granted by the Company vested upon the change of control resulting from the completion of the ComSovereign Acquisition on November 27, 2019.

The following table represents stock option activity of ComSovereign and the Company as of and for fiscal 2019:

	Number of Options			Weighted- Average Exercise Price per Share		Weighted- Average Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – January 10, 2019		13,990,000		$	0.61		3.15	$	—
Granted		180,000			1.06
Exercised		(5,250,000	)		0.57
Cancelled or Expired		(225,000	)		0.72
Outstanding – December 31, 2019		8,695,000		$	0.63		1.34	$	2,264,760
Exercisable – December 31, 2019		8,695,000		$	0.63		1.34	$	2,264,760

As of December 31, 2019, there were no unvested stock options.

The Company did not record any compensation expense for the period from November 27, 2019, the date of the ComSovereign Acquisition, to December 31, 2019. Compensation expense related to stock options would be recorded in general and administrative expense in the Consolidated Statement of Operations. As of December 31, 2019, there was no unrecognized compensation expense related to stock options.

Restricted Stock Awards

On March 25, 2019, ComSovereign’s Board of Directors granted an aggregate of 80,000 RSAs to a non-employee for consulting services, of which 60,000 RSAs immediately vested and 20,000 RSAs vested upon the change in control of ComSovereign in connection with the ComSovereign Acquisition. The grant date fair value of these RSAs was $4.40 per share of common stock for a total value of $352,000.

On November 12, 2019, the Company’s Board of Directors granted an aggregate of 2,300,000 RSAs to eight employees. The RSAs vested upon the change of control upon the completion of the ComSovereign Acquisition on November 27, 2019. The Company recorded $1,495,000 in share-based compensation expense related to these RSAs during fiscal 2019, prior to the ComSovereign Acquisition. No compensation expense was recognized for the period November 27, 2019, the date of the ComSovereign Acquisition, through December 31, 2019.

On November 14, 2019, ComSovereign’s Board of Directors granted an aggregate of 40,000 RSAs to a non-employee for consulting services that vested immediately. The grant date fair value of these RSAs was $4.40 per share of common stock for a total value of $176,000.

On November 19, 2019, ComSovereign’s Board of Directors granted an aggregate of 270,800 RSAs to noteholders, employees, non-employees and an officer with a grant date fair value of $4.40 per share of common stock that vested immediately for a total value of $1,191,520.

On November 27, 2019, ComSovereign’s Board of Directors granted an aggregate of 50,000 RSAs that immediately vested to a non-employee for assistance in negotiating a secured loan agreement on ComSovereign’s behalf. The grant date fair value of these RSAs was $4.40 per share of common stock for a total value of $220,000.

On December 2, 2019, the Company’s Board of Directors granted an aggregate of 1,900,000 RSAs to nine officers and directors. The vesting period for these RSAs is as follows: 850,000 vest on the one-year anniversary of the grant date; 850,000 vest on the two-year anniversary of the original grant date; and 200,000 vest on the three-year anniversary of the original grant date. The Company recognized $54,667 in share-based compensation expense for these RSAs during fiscal 2019 which was recognized after the ComSovereign Acquisition.

Total recognized compensation expense related to the RSAs was $258,256 which was recorded in general and administration expense in the Consolidated Statement of Operations. See Note 1 – Description of Business and Basis of Presentation for information about the shares issued in connection with the formation of ComSovereign.

See Note 20 – Subsequent Events for information related to the adoption of the 2020 Long-Term Incentive Plan.

Warrants

12 Months Ended

Dec. 31, 2019

Warrants [Abstract]

WARRANTS

15. WARRANTS

The following warrants were issued by the Company prior to the ComSovereign Acquisition with the attributes described below to purchase the Company’s common stock (amounts in US$’s, except share data):

Issuance Date	Warrants Issued		Exercise Price		Full Vesting Date	Expiration Date
November 20, 2015		70,000	$	5.00	November 20, 2015	November 20, 2020
April 27, 2016		60,000	$	2.91	April 27, 2016	April 27, 2019
August 3, 2017		30,000	$	0.50	August 3, 2017	August 3, 2021
August 3, 2017		2,000,000	$	0.50	August 3, 2017	August 3, 2022
November 9, 2017		20,000	$	0.50	November 9, 2017	November 9, 2021
September 26, 2018		100,000	$	1.00	September 26, 2018	September 26, 2022

During the third quarter of 2019, ComSovereign issued eight warrants to purchase an aggregate of 100,000 shares of ComSovereign’s common stock. The warrants were issued in conjunction with the sale of the ComSovereign’s 9% Senior Convertible Debentures. The warrants had an exercise price of $5.00 per share and an expiration date of December 31, 2021. Prior to conversion of the related debentures, ComSovereign cancelled warrants to purchase 80,000 shares of common stock at $5.00 per share, and reissued warrants to purchase 112,500 shares of common stock at $1.50 per share. ComSovereign valued the new warrants at $250,835 using the Black-Scholes pricing model, which is included in interest expense on the Consolidated Statement of Operations. Warrants to purchase all 132,500 shares of common stock were exercised in November 2019 prior to the ComSovereign Acquisition.

On September 24, 2019, ComSovereign issued a warrant to purchase 150,000 shares of the ComSovereign’s common stock, which was converted into the ability to purchase 283,530 shares of the Company’s common stock as a result of the ComSovereign Merger. The warrant was issued in conjunction with the sale of ComSovereign’s 10% Senior Convertible Debentures. The warrant has an exercise price of $0.01 per share and an expiration date of December 31, 2021. No warrants were exercised during fiscal 2019. On April 21, 2020, these warrants were exercised and exchanged for 283,530 shares of the Company’s common stock.

During September 2019, ComSovereign issued two warrants to purchase 2,000,000 shares of ComSovereign’s common stock. The warrants were issued in conjunction with the sale by ComSovereign of a promissory note. The warrants had an exercise price of $0.01 per share and an expiration date of December 31, 2021. Warrants to purchase the full 2,000,000 shares of ComSovereign’s common stock were exercised in November 2019 prior to the ComSovereign Acquisition.

On October 15, 2019, ComSovereign issued a warrant to purchase 442,500 shares of ComSovereign’s common stock. The warrant was issued in conjunction with the sale by ComSovereign of a promissory note. The warrant had an exercise price of $0.01 per share and an expiration date of December 31, 2021. Warrants to purchase the full 442,500 shares of ComSovereign’s common stock were exercised in November 2019 prior to the ComSovereign Acquisition.

On November 26, 2019, ComSovereign issued warrants to purchase 930,000 shares of ComSovereign’s common stock to non-employees for consulting services in connection with the ComSovereign Acquisition. The warrants had an exercise price of $0.01 per share and an expiration date of November 26, 2024. Warrants to purchase the full 930,000 shares of ComSovereign’s common stock were exercised on November 27, 2019.

The following table summarizes the assumptions used to estimate the fair value of the warrants granted during fiscal 2019:

Expected dividend yield		0%
Expected volatility		32-33%
Risk-free interest rate		1.38-1.82%
Expected life of warrants		2.27-3.0 years

Under the Black-Scholes option pricing model, the fair value of the warrants issued was estimated at $3,138,667 on the date of grant, which was recognized as interest expense in the Consolidated Statement of Operations. As of December 31, 2019, there was no unrecognized expense related to the warrants as all of the warrants were fully vested.

The following table represents warrant activity of ComSovereign and the Company as of and for fiscal 2019:

	Number of Warrants			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Exercisable – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Granted		3,868,523			0.18
Exercised		(5,472,500	)		0.23
Forfeited or Expired		(172,500	)		3.61
Outstanding – December 31, 2019		503,523		$	0.95		1.96	$	258,328
Exercisable – December 31, 2019		503,523		$	0.95		1.96	$	258,328

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

16. INCOME TAXES

Deferred taxes are provided on the liability method whereby deferred tax assets and liabilities are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax law and rates on the date of enactment. The Tax Cut and Jobs Act was enacted on December 22, 2017, which reduced the U.S. corporate statutory income tax rate from 35% to 21% beginning January 1, 2018.

Net deferred tax liabilities consisted of the following as of December 31, 2019:

(Amounts in US$'s)	December 31, 2019
Deferred tax assets:
Share-based compensation	$	13,700
Inventory reserve		137,000
Allowance for bad debt		172,700
Net operating loss carryover		11,867,800
Foreign losses		4,130,000
General business credits		256,400
Valuation allowance		(3,762,800	)
Total deferred tax assets		12,814,800
Deferred tax liabilities:
Depreciation		(43,000	)
Amortization		(12,771,800	)
Total deferred tax liabilities		(12,814,800	)
Net deferred tax assets (liabilities)	$	—

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to income (loss) from continuing operations before tax for fiscal 2019 due to the following:

	December 31, 2019
	US$'s			Rates
Income tax benefit at statutory federal income tax rate	$	(6,653,400	)		21.00	%
State tax expense, net of federal benefit		(1,267,300	)		4.00	%
Permanent items		20,000			(0.06	)%
Valuation allowance		3,762,800			(11.88	)%
Income tax benefit	$	(4,137,900	)		13.06	%

As of December 31, 2019, the Company had domestic net operating loss carryforwards of approximately $47,472,000, of which approximately $13,615,000 was generated pre-2018 that may be carried forward 20 years to offset against future taxable income from the year 2019 through 2039, and approximately $33,857,000 that may offset future taxable income with no definite expiration date.

Due to the change in the ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.

The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon the ultimate settlement with the related tax authority. The Company did not record any liabilities related to uncertain tax positions as of December 31, 2019.

The Company records valuation allowances to reduce its deferred tax assets to an amount the its believes is more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers all positive and negative evidence to determine whether future taxable income will be generated during the periods in which those temporary differences become deductible. As a result, the Company recorded a valuation allowance on the portion of the deferred tax assets, including current year losses, deemed not to have enough sources of income to utilize the future benefits.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

17. LEASES

As of December 31, 2019, the Company had six operating leases for office and manufacturing space and no financial leases. The impact of ASU 2016-02 on the Company’s Consolidated Balance Sheet beginning January 10, 2019 was from the recognition of ROU assets and lease liabilities for operating leases. Amounts recognized as of January 10, 2019 and December 31, 2019 for operating leases were as follows:

(Amounts in US$’s)	January 10, 2019
ROU assets	$	116,876
Lease liability	$	116,876

(Amounts in US$’s)	December 31, 2019
ROU assets	$	2,199,682
Lease liability	$	2,212,548

The Company elected the practical expedient under ASU 2018-11, which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date. Therefore, the Company recognized and measured leases existing at January 10, 2019 (inception date). In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing leases upon adoption. No impact was recorded to the Consolidated Statement of Operations or beginning retained earnings resulting from the adoption of Topic 842.

Beginning January 10, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments, including annual rent increases, over the lease term at commencement date. Operating leases in effect prior to January 10, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of January 10, 2019. As none of the Company’s leases included an implicit rate of return, the Company used its incremental secured borrowing rate based on lease term information available as of the adoption date or lease commencement date in determining the present value of lease payments.

On January 10, 2019, the Company had one operating lease for office space. The Company is leasing 5,533 square feet of office space with monthly payments of $6,316 and an incremental borrowing rate of 5.90%. As of December 31, 2019, the Company had seven months remaining on the lease with a lease liability of $44,588.

During fiscal 2019, the Company entered into the following leases which the Company identified as operating leases:

On March 1, 2019, the Company entered into a 37-month lease for 2,390 square feet of office space. On December 31, 2019, the remaining liability under this agreement was $54,852, payable in amounts ranging from $2,091 to $2,188 per month through March 2022. The lease did not include an implicit rate of return, so the Company used an incremental borrowing rate of 5.5%.

On June 1, 2018, InduraPower entered into a one-year lease on its executive office located at 1668 S. Research Loop in Tucson, Arizona. InduraPower leases 7,432 square feet of a business park. On February 1, 2019, the date InduraPower was acquired, there were five months remaining on the original lease. On June 7, 2019, InduraPower entered into a two-year lease renewal. On December 31, 2019, the remaining liability under this lease was $89,482 payable in amounts ranging from $5,351 to $5,717 per month until June 2021. The lease did not include an implicit rate of return; therefore, the Company used the average interest rate of InduraPower’s debt financings, which is 8.46%. The lease does not have a renewal option.

On June 1, 2019, VEO entered into a five-year lease on its executive office located at 10509 Vista Sorrento Parkway in San Diego, California. VEO leases 3,031 square feet of a business park. On December 31, 2019, the remaining liability under this agreement was $341,200 payable in amounts from $6,800 to $7,654 per month until May 2024. The lease did not include an implicit rate of return and VEO did not have any outstanding debt financing. Therefore, the Company used the average rate of the first two outstanding leases mentioned above, which is 5.70%. The lease has a renewal option of two additional periods of five years each.

On June 12, 2019, DragonWave entered into a two-year lease on office space located at 362 Terry Fox Drive, Ottawa Canada. DragonWave leases 13,541 square feet of a business park with monthly payments of $10,708, in Canadian dollars. On December 31, 2019, the remaining liability under this lease was $173,792. The lease is effective as of July 1, 2019 through June 2021. DragonWave used a 15% interest rate and there is no renewal option.

On December 13, 2019, the Company entered into a 63-month lease on its executive office located at 5000 Quorum Drive, Dallas, TX 75254. The Company is leasing 15,289 square feet of a business park. The lease began on April 1, 2020 and will expire on July 31, 2025. A right-of-use asset and lease liability for $1,540,142 was recorded as of December 13, 2019. Monthly payments will range from $27,074 to $29,622 during the life of the lease. The lease did not include an implicit rate of return; therefore, the Company used the average rate of the first two outstanding leases mentioned above, which is 5.70%. The lease has a renewal option of two additional periods of five years each.

The renewal periods were not included in the analysis of the right-to-use asset and lease liability as the Company does not consider them to be reasonably certain of being exercised, as comparable locations could generally be identified for comparable lease rates, without the Company incurring significant costs.

Other information related to the Company’s operating leases are as follows:

(Amounts in US$’s)	December 31, 2019
ROU Asset – January 10, 2019	$	116,876
Increase		2,300,580
Amortization		(217,774	)
ROU Asset – December 31, 2019	$	2,199,682

Lease liability – January 10, 2019	$	116,876
Increase		2,300,580
Amortization		(204,908	)
Lease liability – December 31, 2019	$	2,212,548

Lease liability – short term	$	467,979
Lease liability – long term		1,744,569
Lease liability – total	$	2,212,548

As of December 31, 2019, the Company’s operating leases had a weighted-average remaining lease term of 4.56 years and a weighted average discount rate of 6.50%.

The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2019:

(Amounts in US$’s)	Operating Leases
Amounts due within twelve months of December 31,
2020	$	557,200
2021		521,067
2022		431,146
2023		434,736
2024		389,917
Thereafter		177,735
Total minimum lease payments		2,511,801
Less: effect of discounting		(299,253	)
Present value of future minimum lease payments		2,212,548
Less: current obligations under leases		(467,979	)
Long-term lease obligations	$	1,744,569

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

18. COMMITMENTS AND CONTINGENCIES

From time to time, the Company may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. Management does not believe that after the final disposition any of these matters is likely to have a material adverse impact on the Company's financial condition, results of operations or cash flows, except as follows.

On May 22, 2020, Michael Powell filed suit against DragonWave-X, LLC, DragonWave-X, Inc., Transform-X, Inc., ComSovereign Corp, and the Company in the Pima County Arizona Superior Court, Case No. C20202216. Mr. Powell has alleged that he entered into an employment agreement with DragonWave-X, Inc. in July 2018, was terminated without cause in May 2019, and is owed approximately $182,000 in wages and $50,000 in bonuses. Mr. Powell is seeking approximately $697,000 in treble damages, punitive damages, consequential damages, interest and attorneys' fees and costs. The Company disputes Mr. Powell's allegations and intends to vigorously defend the lawsuit.

On February 7, 2020, DragonWave agreed to repurchase inventory held by Tessco Technologies Incorporated ("Tessco"), one of DragonWave's customers and note holders. Upon receipt of the inventory, which is valued at $121,482, DragonWave agreed to reimburse Tessco $56,766, representing the balance due after making the initial payment of $60,000. The return of inventory and payment to Tessco of $56,776 was required by February 28, 2020, but has not yet been made. On June 5, 2020, Tessco filed a complaint for confessed judgment against DragonWave in the Circuit Court for Baltimore, Maryland, Case No. 5539212, for approximately $60,000, which it claims is the reimbursement amount. The Company does not intend to oppose the entry of this judgment.

Concentrations

12 Months Ended

Dec. 31, 2019

Risks and Uncertainties [Abstract]

CONCENTRATIONS

19. CONCENTRATIONS

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of trade accounts receivable. The Company performs ongoing credit evaluations of its customers and generally does not require collateral related to its trade accounts receivable. At December 31, 2019, accounts receivable from one customer comprised 84% of the Company's total trade accounts receivable, and none of this balance has been characterized as uncollectible as of December 31, 2019.

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS

Management evaluated for subsequent events requiring disclosure within the financial statements through the date of the filing of this report and noted the following items.

Pending Corporate Transaction

Agreement and Plan of Merger and Reorganization

On May 21, 2020, the Company signed an Agreement and Plan of Merger and Reorganization to acquire Virtual Network Communications, Inc. ("VNC"), a developer of fixed and mobile broadband communications solutions for wireless networks operated by commercial, enterprise, government and defense customers. The acquisition is expected to be completed on or before July 6, 2020, subject to satisfactory completion of closing conditions.

Acquisitions

On March 6, 2020, the Company's subsidiary, Sovereign Plastics, LLC ("Sovereign Plastics"), entered into a Stock Purchase Agreement to acquire 100% of the shares of common stock of Spring Creek Manufacturing, Inc. for a purchase price of $500,000. The acquisition closed on March 6, 2020 with Sovereign Plastics paying the purchase price through the assumption of the obligations of the sellers under an outstanding promissory note in the principal amount of $90,000 and the delivery of short-term promissory notes in the aggregate principal amount of $410,000. Additionally, Sovereign Plastics agreed to pay certain sales commissions on all sales to two specific customers.

On March 6, 2020, in a related transaction, Sovereign Plastics also entered into an Asset Purchase Agreement with Fast Plastics Parts, LLC ("Fast Plastics") to acquire certain assets, consisting primarily of machinery, equipment and furniture of Fast Plastics. The acquisition also closed on March 6, 2020 with Sovereign Plastics providing the purchase price of approximately $1,464,000 by the payment of approximately $66,000 in cash, the repayment of outstanding indebtedness of Fast Plastics in the aggregate amount of $250,000 and the assumption of an outstanding term loan of Fast Plastics in the amount of approximately $979,000. Sovereign Plastics also assumed equipment leases.

The cash portions of the purchase prices were funded by the sale to unaffiliated lenders of promissory notes in the principal amount of $500,000 that mature on September 4, 2020 and 50,000 shares of common stock for an aggregate purchase price of $450,000.

2020 Long-Term Incentive Plan

On April 22, 2020, the Company's Board of Directors adopted the 2020 Long-Term Incentive Plan (the "2020 Plan") which was approved by the stockholders on or about May 6, 2020. Employees, officers, directors and consultants that provide services to the Company or one of its subsidiaries may be selected to receive awards under the 2020 Plan. Awards under the 2020 Plan may be in the form of incentive or nonqualified stock options, stock appreciation rights, stock bonuses, restricted stock, stock units and other forms of awards including cash awards and performance-based awards.

A total of 10,000,000 shares of the Company's common stock are authorized for issuance with respect to awards granted under the 2020 Plan. Any shares subject to awards that are not paid, delivered or exercised before they expire or are cancelled or terminated, or fail to vest, as well as shares used to pay the purchase or exercise price of awards or related tax withholding obligations, will become available for other award grants under the 2020 Plan. No stock grants have been issued under the 2020 Plan, and 10,000,000 shares authorized under the 2020 Plan remained available for award purposes.

The 2020 Plan will terminate on May 1, 2030. The maximum term of options, stock appreciation rights and other rights to acquire common stock under the 2020 Plan is ten years after the initial date of the award.

Debt Agreements

On February 26, 2020, the Company entered into a $600,000 secured business loan bearing interest at 81.74% per annum that matures on December 26, 2020. Principal and interest payments of $19,429 are due weekly. The loan is secured by the assets of the Company.

On March 19, 2020, the Company entered into a note payable with the Nussbaum estate in the amount of $2,022,722 bearing interest at 5% per annum with a maturity date of August 31, 2020. Interest payments of $8,428 are due monthly while the full principal amount is due at maturity. The proceeds of the note payable were used to repay the balance of the CNB Note.

On April 29, 2020, the Company entered into a securities purchase agreement pursuant to which it issued a convertible promissory note in the principal amount of $285,714 with an original issue discount of $35,714 and warrants to purchase 158,730 shares of the Company's common stock for proceeds of $250,000. The note bears interest at a rate of 12.5% per annum and matures on January 29, 2021. Within three business days of filing the Annual Report for fiscal 2019, the investor is required to issue, and the Company is required accept, an additional convertible promissory note in the principal amount of $285,714 with an original issue discount of $35,714 along with warrants to purchase an additional 158,730 shares of the Company's common stock for proceeds of $250,000. This note will bear interest at 12.5% per annum and mature on January 29, 2021. The investor will not be required to purchase the additional securities if the Company is in default under the outstanding notes or if certain other conditions are not met.

On May 29, 2020, DragonWave issued a promissory note in the principal amount of $290,000 with an original issue discount of $40,000 for proceeds of $250,000. The note matures on September 30, 2020 and will bear interest at the rate of 12% per annum on any principal balance not paid from the maturity date until paid in full. The promissory note is guaranteed by the Company and Mr. Hodges.

Payroll Protection Program of the CARES Act

During April and May 2020, the Company and its subsidiaries received an aggregate of $455,185 under the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") of 2020. These loans are to cover 24 weeks of payroll expenses and may be used for a variety of other needs such as: payroll costs, salaries or commissions, rent, utilities and interest on other outstanding debt. Management believes it is complying with the rules for forgiveness of these funds received under the PPP of the CARES Act.

Consulting Agreement

On January 31, 2020, the Company entered into an agreement with a consultant to its subsidiary, Lextrum, to amend a consulting agreement between the consultant and Lextrum to allow the consultant to elect to take from 50% to 100% of his compensation in the form of common stock of the Company. Common stock to be issued to the consultant will be paid on a quarterly basis. On March 12, 2020, the Company issued 165,095 shares of its common stock in satisfaction of $106,238 that was owed by Lextrum to the consultant for services previously rendered and the additional $106,238 that was owed by Lextrum was partially paid in cash of $55,000 on March 6, 2020. The remaining $51,238 is still outstanding. To date, no additional shares of common stock have been issued pursuant to this agreement.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Accounts Receivable and Credit Policies

Accounts Receivable and Credit Policies

Concentration of Credit Risk

Concentration of Credit Risk

Related Parties

Related Parties

Inventory

Inventory

Investments

Investments

Property and Equipment, net

Property and Equipment, net

Property and equipment are stated at cost when acquired. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:

Asset Type		Useful Life
Test equipment, research and development equipment		4-5 years
Computer hardware		2 years
Production fixtures		3 years
Leasehold improvements		5 years
Other		3-5 years

Long-Lived Assets and Goodwill

Long-Lived Assets and Goodwill

Beneficial Conversion Features and Warrants

Beneficial Conversion Features and Warrants

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurement. As defined in ASC 820, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilized the market data of similar entities in its industry or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement) as follows:

Debt Discounts

Debt Discounts

Debt Issuance Costs

Debt Issuance Costs

Foreign Currency Translation

Foreign Currency Translation

Revenue Recognition

Revenue Recognition

To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs:

●

ASU 2016-08 (Issued March 2016) — Principal versus Agent Consideration (Reporting Revenue Gross versus Net)

●

ASU 2016-10 (Issued April 2016) — Identifying Performance Obligations and Licensing

●

ASU 2016-12 (Issued May 2016) — Narrow-Scope Improvements and Practical Expedients

●

ASU 2016-20 (Issued December 2016) — Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers

The Company adopted these standards as of January 10, 2019 (date of incorporation).

Research and Development

Research and Development

Share-Based Compensation

Share-Based Compensation

Employees

Non-Employees

Leases

Leases

●

ASU 2018-10 (Issued July 2018) — Codification Improvements to Topic 842, Leases

●

ASU 2018-11 (Issued July 2018) — Leases (Topic 842): Targeted Improvements ("ASU 2018-11")

●

ASU 2018-20 (Issued December 2018) — Leases (Topic 842): Narrow-Scope Improvements for Lessors

●

ASU 2019-01 (Issued March 2019) — Leases (Topic 842): Codification Improvements

Income Taxes

Income Taxes

Earnings or Loss per Share

Earnings or Loss per Share

There were no adjustments to net loss, the numerator, for purposes of computing basic earnings per share. The following table sets out the computation of basic and diluted income (loss) per share:

(Amounts in US$'s, except share data)	January 10, 2019 (Inception) to December 31, 2019
Numerator:
Net loss	$	(27,545,255	)

Numerator for basic earnings per share - loss available to common shareholders	$	(27,545,255	)

Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding		48,714,099
Dilutive effect of warrants and options		—
Denominator for diluted earnings per share - weighted average common shares outstanding and assumed conversions		48,714,099
Basic loss per common share	$	(0.57	)
Diluted loss per common share	$	(0.57	)

Reportable Segments

Reportable Segments

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Management believes there have not been any recently issued, but not effective, accounting standards which, if currently adopted, would have a material effect on the Company's financial statements.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of estimated useful lives

Asset Type		Useful Life
Test equipment, research and development equipment		4-5 years
Computer hardware		2 years
Production fixtures		3 years
Leasehold improvements		5 years
Other		3-5 years

Schedule of computation of basic and diluted income (loss) per share

(Amounts in US$'s, except share data)	January 10, 2019 (Inception) to December 31, 2019
Numerator:
Net loss	$	(27,545,255	)

Numerator for basic earnings per share - loss available to common shareholders	$	(27,545,255	)

Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding		48,714,099
Dilutive effect of warrants and options		—
Denominator for diluted earnings per share - weighted average common shares outstanding and assumed conversions		48,714,099
Basic loss per common share	$	(0.57	)
Diluted loss per common share	$	(0.57	)

Business Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

VEO Purchase Price [Member]

Schedule of purchase price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		1,500,000
Per share value	$	8.81
Purchase price	$	13,215,000

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Cash	$	55,261
Fixed and other long-term assets		4,000
Assumed liabilities		(40,531	)
Intangible assets and goodwill:
Technology		6,410,000
Goodwill		6,786,270
Total intangible assets and goodwill		13,196,270
Total Consideration	$	13,215,000

IPI Purchase Price [Member]

Schedule of purchase price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		800,000
Per share value	$	8.81
Purchase price	$	7,048,000

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Cash	$	18,791
Debt-free net working capital (excluding cash)		263,459
Fixed and other long-term assets		97,384
Assumed liabilities		(1,240,097	)
Intangible assets and goodwill:
Technology		1,000,000
Goodwill estimate		6,908,463
Total intangible assets and goodwill		7,908,463
Total Consideration	$	7,048,000

SBT Purchase Price [Member]

Schedule of purchase price

(Amounts in US$'s, except share data)	Consideration
Number of Preferred Series A paid		300,000
Per share value	$	8.81
Purchase price	$	2,643,000

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Cash	$	273,290
Debt-free net working capital (excluding cash)		103,537
Fixed and other long-term assets		21,000
Liabilities assumed		(84,382	)
Intangible assets and goodwill:
Technology		210,000
Trade name		200,000
Customer relationships		400,000
Goodwill estimate		1,519,555
Total intangible assets and goodwill		2,329,555
Total Consideration	$	2,643,000

DragonWave [Member]

Schedule of purchase price

(Amounts in US$'s, except share data)	Consideration
Number of common stock paid		13,237,149
Per share value	$	4.40
Purchase price	$	58,243,456
DragonWave	$	42,081,392
Lextrum	$	16,162,064

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Cash	$	1,274,072
Debt-free net working capital (excluding cash)		(1,099,194	)
Note payable		(5,690,000	)
Fixed and other long-term assets		2,455,714
Intangible assets:
Technology		13,750,000
Trade name		4,210,000
Customer relationships		13,080,000
Goodwill estimate		14,100,800
Total intangible assets and goodwill		45,140,800
Total Consideration	$	42,081,392

Lextrum [Member]

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Cash	$	8,105
Debt-free net working capital (excluding cash)		(103,611	)
Fixed and other long-term assets		—
Intangible assets:
Technology		11,430,000
Goodwill estimate		4,827,570
Total intangible assets		16,257,570
Total Consideration	$	16,162,064

Drone Aviation [Member]

Schedule of allocation of total preliminary estimated purchase price

(Amounts in US$'s)	Fair Value
Working capital	$	2,399,800
Other assets		220,672
Intangible assets and goodwill:
Intellectual property		3,729,537
Trade name		1,233,204
Customer relationships		1,630,792
Noncompete		937,249
Goodwill estimate		18,106,237
Total intangible assets and goodwill		25,637,019
Total Consideration	$	28,257,491

Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of inventory

(Amounts in US$'s)	December 31, 2019
Raw materials	$	1,041,256
Work in progress		1,566,147
Finished goods		3,060,518
Total production inventory		5,667,921
Inventory held for customer service/warranty		56,409
Total inventory		5,724,330
Reserve		(1,052,934	)
Total inventory, net	$	4,671,396

Prepaid Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Prepaid Expense, Current [Abstract]

Schedule of prepaid expenses

(Amounts in US$'s)	December 31, 2019
Prepaid products and services	$	873,617
Prepaid rent and security deposit		43,112
	$	916,729

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

(Amounts in US$'s)	December 31, 2019
Shop machinery and equipment	$	8,100,667
Computers and electronics		558,561
Office furniture and fixtures		341,214
Leasehold improvements		222,332
		9,222,774
Less - accumulated depreciation		(7,764,668	)
	$	1,458,106

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in carrying amount of goodwill

(Amounts in US$'s)	Total
Balance at January 10, 2019 (inception)	$	—
Acquisitions		56,386,796
Balance at December 31, 2019	$	56,386,796

Schedule of gross carrying amounts and accumulated amortization

(Amounts in US$'s)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets:
Trade names	$	5,643,204	$	(489,222	)	$	5,153,982
Technology		32,800,000		(4,308,333	)		28,491,667
Customer relationships		15,110,792		(2,054,894	)		13,055,898
Intellectual property		3,729,537		(51,799	)		3,677,738
Noncompete		937,249		(39,052	)		898,197
Total definite-lived intangible assets	$	58,220,782	$	(6,943,300	)	$	51,277,482

Schedule of amortization expense for intangible assets

	Actual		Estimated
(Amounts in US$'s)	2019		2020		2021		2022		2023		2024
Amortization expense	$	6,943,300	$	10,385,211	$	10,346,159	$	9,916,587	$	9,916,587	$	7,861,692

Debt Agreements (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt consisted

		December 31, 2019
(Amounts in US$'s)	Maturity Date	Amount Outstanding			Interest Rate
Secured Notes Payable
Secured note payable	February 28, 2020	$	788,709			8.5	%
Secured note payable	March 1, 2022		224,288			9.0	%
Secured note payable	September 1, 2021		21,571			7.9	%
Secured note payable	November 26, 2021		2,000,000			9.0	%
Total secured notes payable			3,034,568
Notes Payable
Equipment financing loan	September 15, 2020		3,828			8.8	%
Note payable	July 9, 2019		200,000			18.0	%
Note payable	September 1, 2019		200,000			18.0	%
Note payable	September 30, 2020		500,000			10.0	%
Note payable	September 30, 2020		175,000			10.0	%
Note payable	March 30, 2020		5,000,000			10.0	%
Note payable	July 9, 2019		200,000			18.0	%
Notes payable	December 6, 2019		450,100			18.0	%
Total notes payable			6,728,928
Senior Convertible Debentures
Senior convertible debenture	December 31, 2019		100,000			15.0	%
Senior convertible debenture	December 31, 2019		25,000			15.0	%
Senior convertible debenture	December 31, 2021		250,000			10.0	%
Total senior convertible debentures			375,000
Total long-term debt			10,138,496
Less unamortized discounts and debt issuance costs			(4,749,004	)
Total long-term debt, less discounts and debt issuance costs			5,389,492
Less current portion of long-term debt			(5,389,492	)
Debt classified as long-term debt		$	—

Schedule of future maturities of long-term debt

(Amounts in US$'s)	Total
2020	$	7,888,496
2021		2,250,000
2022		—
2023		—
2024		—
Thereafter		—
Total	$	10,138,496

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue [Abstract]

Schedule of timing of revenue recognition

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Timing of revenue recognition:
Services and products transferred at a point in time	$	2,803,026
Services and products transferred over time		1,909,186
Total revenue	$	4,712,212

Schedule of revenue by products and services

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Revenue by products and services:
Products	$	2,702,410
Services		2,009,802
Total revenue	$	4,712,212

Schedule of revenue by geography

(Amounts in US$'s)	January 10, 2019 (Inception) to December 31, 2019
Revenue by geography:
North America	$	3,476,977
International		1,235,235
Total revenue	$	4,712,212

Share-Based Compensation (Tables) - Stock Options [Member]

12 Months Ended

Dec. 31, 2019

Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]

Schedule of equity plan to purchase the Company's common stock

During 2017, the Company granted the following options outside of any equity plan with the attributes described below to purchase the Company's common stock (amounts in US$'s, except share data):

Grant Date	Underlying Shares		Option Price		Full Vesting Date	Expiration Date
January 9, 2017		100,000	$	2.90	January 9, 2019	January 7, 2021
August 3, 2017		5,130,000	$	0.50	August 3, 2017	August 3, 2021
November 9, 2017		2,000,000	$	0.50	November 9, 2017	November 9, 2021
December 13, 2017		200,000	$	1.00	November 13, 2019	December 13, 2021

During 2018, the Company granted the following options outside of any equity plan with the attributes described below to purchase the Company's common stock (amounts in US$'s, except share data):

Grant Date

Underlying Shares

Vesting

Option Price

Full Vesting Date

Expiration Date

March 28, 2018

100,000

50% in one year; 50% in two years from grant date

1.00

March 28, 2020

March 28, 2022

May 16, 2018

330,000

Immediate vesting

1.00

May 16, 2018

May 16, 2022

May 16, 2018

130,000

50% in one year; 50% in two years from grant date

1.00

May 16, 2020

May 16, 2022

September 26, 2018

6,000,000

$4,000,000 new government orders

0.65

December 21, 2018

September 26, 2022

Schedule of assumptions used to estimate fair value stock options granted

	2019
Expected dividend yield		0%
Expected volatility		90%
Risk-free interest rate		2.40-2.47%
Expected life of options		4.0 years

Schedule of stock option activity

	Number of Options			Weighted- Average Exercise Price per Share		Weighted- Average Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – January 10, 2019		13,990,000		$	0.61		3.15	$	—
Granted		180,000			1.06
Exercised		(5,250,000	)		0.57
Cancelled or Expired		(225,000	)		0.72
Outstanding – December 31, 2019		8,695,000		$	0.63		1.34	$	2,264,760
Exercisable – December 31, 2019		8,695,000		$	0.63		1.34	$	2,264,760

Warrants (Tables) - Warrant [Member]

12 Months Ended

Dec. 31, 2019

Class of Warrant or Right [Line Items]

Schedule of warrants to purchase the Company's common stock

Issuance Date	Warrants Issued		Exercise Price		Full Vesting Date	Expiration Date
November 20, 2015		70,000	$	5.00	November 20, 2015	November 20, 2020
April 27, 2016		60,000	$	2.91	April 27, 2016	April 27, 2019
August 3, 2017		30,000	$	0.50	August 3, 2017	August 3, 2021
August 3, 2017		2,000,000	$	0.50	August 3, 2017	August 3, 2022
November 9, 2017		20,000	$	0.50	November 9, 2017	November 9, 2021
September 26, 2018		100,000	$	1.00	September 26, 2018	September 26, 2022

Schedule of assumptions used to estimate fair value warrants granted

The following table summarizes the assumptions used to estimate the fair value of the warrants granted during fiscal 2019:

Expected dividend yield		0%
Expected volatility		32-33%
Risk-free interest rate		1.38-1.82%
Expected life of warrants		2.27-3.0 years

Schedule of warrant activity

	Number of Warrants			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Exercisable – January 10, 2019		2,280,000		$	0.72		3.44	$	—
Granted		3,868,523			0.18
Exercised		(5,472,500	)		0.23
Forfeited or Expired		(172,500	)		3.61
Outstanding – December 31, 2019		503,523		$	0.95		1.96	$	258,328
Exercisable – December 31, 2019		503,523		$	0.95		1.96	$	258,328

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of deferred tax assets

(Amounts in US$’s)	December 31, 2019
Deferred tax assets:
Share-based compensation	$	13,700
Inventory reserve		137,000
Allowance for bad debt		172,700
Net operating loss carryover		11,867,800
Foreign losses		4,130,000
General business credits		256,400
Valuation allowance		(3,762,800	)
Total deferred tax assets		12,814,800
Deferred tax liabilities:
Depreciation		(43,000	)
Amortization		(12,771,800	)
Total deferred tax liabilities		(12,814,800	)
Net deferred tax assets (liabilities)	$	—

Schedule of income tax benefit

	December 31, 2019
	US$’s			Rates
Income tax benefit at statutory federal income tax rate	$	(6,653,400	)		21.00	%
State tax expense, net of federal benefit		(1,267,300	)		4.00	%
Permanent items		20,000			(0.06	)%
Valuation allowance		3,762,800			(11.88	)%
Income tax benefit	$	(4,137,900	)		13.06	%

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of operating leases

(Amounts in US$'s)	January 10, 2019
ROU assets	$	116,876
Lease liability	$	116,876

(Amounts in US$'s)	December 31, 2019
ROU assets	$	2,199,682
Lease liability	$	2,212,548

Schedule of other information related to our operating leases

(Amounts in US$'s)	December 31, 2019
ROU Asset – January 10, 2019	$	116,876
Increase		2,300,580
Amortization		(217,774	)
ROU Asset – December 31, 2019	$	2,199,682

Lease liability – January 10, 2019	$	116,876
Increase		2,300,580
Amortization		(204,908	)
Lease liability – December 31, 2019	$	2,212,548

Lease liability – short term	$	467,979
Lease liability – long term		1,744,569
Lease liability – total	$	2,212,548

Schedule of total remaining years to lease liabilities operating leases

(Amounts in US$’s)	Operating Leases
Amounts due within twelve months of December 31,
2020	$	557,200
2021		521,067
2022		431,146
2023		434,736
2024		389,917
Thereafter		177,735
Total minimum lease payments		2,511,801
Less: effect of discounting		(299,253	)
Present value of future minimum lease payments		2,212,548
Less: current obligations under leases		(467,979	)
Long-term lease obligations	$	1,744,569

Description of Business and Basis of Presentation (Details) - $ / shares										1 Months Ended
	Nov. 27, 2019	Apr. 02, 2019	Mar. 04, 2019	Jan. 31, 2019	Jan. 29, 2019	Jan. 23, 2019	Jan. 22, 2019	Jan. 20, 2019	Jan. 12, 2019	Nov. 15, 2019	Sep. 04, 2019
Description of Business and Basis of Presentation (Textual)
Number of common stock stockholder received after merger agreement, description	For each share of ComSovereign common stock, the stockholder received 1.8902 shares of the Company's common stock.
Outstanding shares of Preferred Series A were exchanged										2,600,000
Aggregate shares of common stock										2,600,000
Common stock per share					$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001		$ 0.50
Dr. Chen K. Sun [Member]
Description of Business and Basis of Presentation (Textual)
Unregistered redeemable convertible preferred stock, description				In connection with the purchase of VEO, ComSovereign issued 1,500,000 unregistered shares of Series A Redeemable Convertible Preferred stock (“Preferred Series A”) to Dr. Chen K. Sun, who is also a founding member of ComSovereign.
Sergei Begliarov [Member]
Description of Business and Basis of Presentation (Textual)
Unregistered redeemable convertible preferred stock, description				In connection with the purchase of InduraPower, ComSovereign issued an aggregate of 800,000 unregistered Preferred Series A shares. Of those 800,000 shares, 688,800 Preferred Series A shares were issued to Sergei Begliarov, who is a founding member of ComSovereign and who became the Chief Executive Officer of InduraPower, and the balance was distributed to four other shareholders.
Dr. Dustin McIntire [Member]
Description of Business and Basis of Presentation (Textual)
Unregistered redeemable convertible preferred stock, description			In connection with the purchase of Silver Bullet, ComSovereign issued 300,000 unregistered Preferred Series A shares to Dr. Dustin McIntire, who is a founding member of ComSovereign and who became the Company’s Chief Technology Officer.
DragonWave and Lextrum [Member]
Description of Business and Basis of Presentation (Textual)
Unregistered redeemable convertible preferred stock, description		In connection with the purchase of DragonWave and Lextrum, ComSovereign issued an aggregate of 13,237,149 shares of common stock to the shareholders of the parent company of DragonWave and Lextrum. Included in those shareholders were Daniel L. Hodges, the Chairman of the parent company, and John E. Howell, the Director and Chief Executive Officer of the parent company.
Founding Member One [Member]
Description of Business and Basis of Presentation (Textual)
Common stock acquired								6,000,000	6,000,000
Founding Member Two [Member]
Description of Business and Basis of Presentation (Textual)
Common stock acquired								6,000,000	6,000,000
Addional Founding [Member]
Description of Business and Basis of Presentation (Textual)
Common stock acquired					100,000	500,000
Aggregate shares of common stock							3,290,000
Common stock per share						$ 0.0001

Summary of Significant Accounting Policies (Details)	12 Months Ended
Summary of Significant Accounting Policies (Details)	Dec. 31, 2019
Test equipment, research and development equipment [Member] \| Minimum [Member]
Property and equipment useful life	4 years
Test equipment, research and development equipment [Member] \| Maximum [Member]
Property and equipment useful life	5 years
Computer hardware [Member]
Property and equipment useful life	2 years
Production fixtures [Member]
Property and equipment useful life	3 years
Leasehold Improvements [Member]
Property and equipment useful life	5 years
Other [Member] \| Minimum [Member]
Property and equipment useful life	3 years
Other [Member] \| Maximum [Member]
Property and equipment useful life	5 years

Summary of Significant Accounting Policies (Details 1)	12 Months Ended
Summary of Significant Accounting Policies (Details 1)	Dec. 31, 2019 USD ($) $ / shares shares
Numerator:
Net loss	$ (27,545,255)
Numerator for basic earnings per share - loss available to common shareholders	$ (27,545,255)
Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding \| shares	48,714,099
Dilutive effect of warrants and options
Denominator for diluted earnings per share - weighted average common shares outstanding and assumed conversions \| shares	48,714,099
Basic loss per common share \| $ / shares	$ (0.57)
Diluted loss per common share \| $ / shares	$ (0.57)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) shares
Summary of Significant Accounting Policies (Additional Information)
Uncollectible receivables \| $	$ 690,830
Valuation allowance against net deferred tax assets percentage	13.06%
Description of income taxes	The amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of December 31, 2019.
FDIC limit of depositor \| $	$ 250,000
Warrant [Member]
Summary of Significant Accounting Policies (Additional Information)
Anti-dilutive shares	48,498
Share-based Payment Arrangement [Member]
Summary of Significant Accounting Policies (Additional Information)
Anti-dilutive shares	837,479
Restricted Stock [Member]
Summary of Significant Accounting Policies (Additional Information)
Anti-dilutive shares	156,091

Business Acquisitions (Details) - VEO Purchase Price [Member]	1 Months Ended
	Jan. 31, 2019 USD ($) $ / shares shares
Number of Preferred Series A paid \| shares	1,500,000
Per share value \| $ / shares	$ 8.81
Purchase price \| $	$ 13,215,000

Business Acquisitions (Details 1) - VEO Purchase Price [Member]	1 Months Ended
	Jan. 31, 2019 USD ($)
Cash	$ 55,261
Fixed and other long-term assets	4,000
Assumed liabilities	(40,531)
Intangible assets and goodwill:
Total intangible assets and goodwill	13,196,270
Total Consideration	13,215,000
Technology [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	6,410,000
Goodwill [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	$ 6,786,270

Business Acquisitions (Details 2) - IPI Purchase Price [Member]	1 Months Ended
	Jan. 31, 2019 USD ($) $ / shares shares
Number of Preferred Series A paid \| shares	800,000
Per share value \| $ / shares	$ 8.81
Purchase price \| $	$ 7,048,000

Business Acquisitions (Details 3) - IPI Purchase Price [Member]	1 Months Ended
	Jan. 31, 2019 USD ($)
Cash	$ 18,791
Debt-free net working capital (excluding cash)	263,459
Fixed and other long-term assets	97,384
Assumed liabilities	(1,240,097)
Intangible assets and goodwill:
Total intangible assets and goodwill	7,908,463
Total Consideration	7,048,000
Goodwill estimate [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	6,908,463
Technology [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	$ 1,000,000

Business Acquisitions (Details 4) - SBT Purchase Price [Member]	Mar. 04, 2019 USD ($) $ / shares shares
Number of Preferred Series A paid \| shares	300,000
Per share value \| $ / shares	$ 8.81
Purchase price \| $	$ 2,643,000

Business Acquisitions (Details 5) - SBT Purchase Price [Member]	Mar. 04, 2019 USD ($)
Cash	$ 273,290
Debt-free net working capital (excluding cash)	103,537
Fixed and other long-term assets	21,000
Liabilities assumed	(84,382)
Intangible assets and goodwill:
Total intangible assets and goodwill	2,329,555
Total Consideration	2,643,000
Goodwill [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	1,519,555
Customer relationships Member
Intangible assets and goodwill:
Total intangible assets and goodwill	400,000
Trade name [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	200,000
Technology [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	$ 210,000

Business Acquisitions (Details 6)	Apr. 01, 2019 USD ($) $ / shares shares
DragonWave-X and Lextrum Purchase Price [Member]
Number of common stock paid \| shares	13,237,149
Per share value \| $ / shares	$ 4.40
Purchase price	$ 58,243,456
DragonWave-X [Member]
Purchase price	42,081,392
Lextrum [Member]
Purchase price	$ 16,162,064

Business Acquisitions (Details 7) - DragonWave [Member]	Apr. 01, 2019 USD ($)
Cash	$ 1,274,072
Debt-free net working capital (excluding cash)	(1,099,194)
Note payable	(5,690,000)
Fixed and other long-term assets	2,455,714
Intangible assets:
Total intangible assets and goodwill	45,140,800
Total Consideration	42,081,392
Goodwill estimate [Member]
Intangible assets:
Total intangible assets and goodwill	14,100,800
Customer relationships [Member]
Intangible assets:
Total intangible assets and goodwill	13,080,000
Technology [Member]
Intangible assets:
Total intangible assets and goodwill	13,750,000
Trade name [Member]
Intangible assets:
Total intangible assets and goodwill	$ 4,210,000

Business Acquisitions (Details 8) - Lextrum [Member]	Apr. 01, 2019 USD ($)
Cash	$ 8,105
Debt-free net working capital (excluding cash)	(103,611)
Fixed and other long-term assets
Intangible assets:
Total intangible assets and goodwill	1,657,570
Total Consideration	16,162,064
Technology [Member]
Intangible assets:
Total intangible assets and goodwill	11,430,000
Goodwill estimate [Member]
Intangible assets:
Total intangible assets and goodwill	$ 4,827,570

Business Acquisitions (Details 9) - Historical Drone Aviation Holding Corp [Member]	1 Months Ended
	Nov. 27, 2019 USD ($)
Working capital	$ 2,399,800
Other assets	220,672
Intangible assets and goodwill:
Total intangible assets and goodwill	25,637,019
Total Consideration	28,257,491
Intellectual property [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	3,729,537
Trade names [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	1,233,204
Customer relationships [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	1,630,792
Noncompete [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	937,249
Goodwill estimate [Member]
Intangible assets and goodwill:
Total intangible assets and goodwill	$ 18,106,237

Business Acquisitions - Additional Information (Details) - $ / shares			1 Months Ended
	Apr. 01, 2019	Mar. 04, 2019	Jan. 31, 2019
DragonWave-X LLC and Lextrum, Inc. [Member]
Acquired shares	13,237,149
Acquire per share	$ 4.40
Indura Power [Member] \| Preferred Series A [Member]
Acquired shares			800,000
Acquire per share			$ 8.81
VEO [Member] \| Preferred Series A [Member]
Acquired shares			1,500,000
Acquire per share			$ 8.81
Silver Bullet Technology, Inc. [Member] \| Preferred Series A [Member]
Acquired shares		300,000
Acquire per share		$ 8.81

Going Concern (Details) - USD ($)	3 Months Ended	12 Months Ended
Going Concern (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2019
Management's Liquidity Plans (Textual)
Cash flows from operations			$ (6,853,247)
Accumulated deficit		$ (27,545,255)	(27,545,255)
Management's Liquidity Plans [Member]
Management's Liquidity Plans (Textual)
Cash flows from operations		6,853,247
Accumulated deficit		(27,545,255)	(27,545,255)
Working capital		$ 6,477,230	$ 6,477,230
Management's Liquidity Plans [Member] \| Subsequent Event [Member]
Management's Liquidity Plans (Textual)
Sale of equity	$ 13,000,000

Inventory (Details)	Dec. 31, 2019 USD ($)
Inventory Disclosure [Abstract]
Raw materials	$ 1,041,256
Work in progress	1,566,147
Finished goods	3,060,518
Total production inventory	5,667,921
Inventory held for customer service/warranty	56,409
Total inventory	5,724,330
Reserve	(1,052,934)
Total inventory, net	$ 4,671,396

Prepaid Expenses (Details)	Dec. 31, 2019 USD ($)
Prepaid Expense, Current [Abstract]
Prepaid products and services	$ 873,617
Prepaid rent and security deposit	43,112
Prepaid expenses, net	$ 916,729

Property and Equipment, Net (Details)	Dec. 31, 2019 USD ($)
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,222,774
Less - accumulated depreciation	(7,764,668)
Property and equipment, net	1,458,106
Shop machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,100,667
Computers and electronics [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	558,561
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	341,214
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 222,332

Property and Equipment, Net - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)
Property and Equipment (Textual)
Amount invested to capital expenditure	$ 87,038
Depreciation expense	$ 623,884

Goodwill and Other Intangible Assets (Details)	12 Months Ended
Goodwill and Other Intangible Assets (Details)	Dec. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Beginning balance
Acquisitions	56,386,796
Ending balance	$ 56,386,796

Goodwill and Other Intangible Assets (Details 1)	Dec. 31, 2019 USD ($)
Gross Carrying Amount	$ 58,220,782
Accumulated Amortization	(6,943,300)
Net Carrying Amount	51,277,482
Trade names [Member]
Gross Carrying Amount	5,643,204
Accumulated Amortization	(489,222)
Net Carrying Amount	5,153,982
Technology [Member]
Gross Carrying Amount	32,800,000
Accumulated Amortization	(4,308,333)
Net Carrying Amount	28,491,667
Customer relationships [Member]
Gross Carrying Amount	15,110,792
Accumulated Amortization	(2,054,894)
Net Carrying Amount	13,055,898
Intellectual Property [Member]
Gross Carrying Amount	3,729,537
Accumulated Amortization	(51,799)
Net Carrying Amount	3,677,738
Noncompete [Member]
Gross Carrying Amount	937,249
Accumulated Amortization	(39,052)
Net Carrying Amount	$ 898,197

Goodwill and Other Intangible Assets (Details 2)	Dec. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 6,943,300
2020	10,385,211
2021	10,346,159
2022	9,916,587
2023	9,916,587
2024	$ 7,861,692

Revolving Line of Credit and Note Payable (Details)	12 Months Ended
Revolving Line of Credit and Note Payable (Details)	Dec. 31, 2019 USD ($)
Revolving Line of Credit (Textual)
CNB Bank account	$ 120,000
CNB Bank account
Revolving Line of Credit (Textual)
CNB Note maturity date, description	In 2017, the Company issued a promissory note (the “CNB Note”) to City National Bank of Florida (“CNB”) in the principal amount of $2,000,000, with a maturity date of August 2, 2018. In 2018, the maturity date of the CNB Note was extended to August 2, 2019. On August 29, 2019, the maturity date of the CNB Note was extended to August 2, 2020.
Monthly payment, description	The CNB Note bears an interest rate equal to the average of the interest rates per annum at which U.S. Dollars are offered in the London Interbank Borrowing Market ("LIBOR") for a 30-day period (the "Index") plus 2.9% over the Index. The Company will pay to CNB a late charge of 5.0% of any monthly payment not received by CNB within 10 calendar days after its due date.
Line of credit drawn	$ 2,000,000
Additional interest rate on fee	4.60%
Minimum average annual balance	$ 1,600,000
CNB Bank account	120,000
Aggregate unencumbered liquidity	$ 6,000,000

Debt Agreements (Details)	12 Months Ended
Debt Agreements (Details)	Dec. 31, 2019 USD ($)
Debt Agreements
Total long-term debt	$ 10,138,496
Less unamortized discounts and debt issuance costs	(4,749,004)
Total long-term debt, less discounts and debt issuance costs	5,389,492
Less current portion of long-term debt	(5,389,492)
Debt classified as long-term debt
Secured note payable one [Member]
Debt Agreements
Maturity Date	Feb. 28, 2020
Amount Outstanding	$ 788,709
Interest rate	8.50%
Secured note payable Two [Member]
Debt Agreements
Maturity Date	Mar. 01, 2022
Amount Outstanding	$ 224,288
Interest rate	9.00%
Secured note payable Three [Member]
Debt Agreements
Maturity Date	Sep. 01, 2021
Amount Outstanding	$ 21,571
Interest rate	7.90%
Secured note payable Four [Member]
Debt Agreements
Maturity Date	Nov. 26, 2020
Amount Outstanding	$ 2,000,000
Interest rate	9.00%
Equipment financing loan [Member]
Debt Agreements
Maturity Date	Sep. 15, 2020
Amount Outstanding	$ 3,828
Interest rate	8.80%
Note payable [Member]
Debt Agreements
Maturity Date	Jul. 09, 2019
Amount Outstanding	$ 200,000
Interest rate	18.00%
Note payable one [Member]
Debt Agreements
Maturity Date	Sep. 01, 2019
Amount Outstanding	$ 200,000
Interest rate	18.00%
Note payable Two [Member]
Debt Agreements
Maturity Date	Sep. 30, 2020
Amount Outstanding	$ 500,000
Interest rate	10.00%
Note payable Three [Member]
Debt Agreements
Maturity Date	Sep. 30, 2020
Amount Outstanding	$ 175,000
Interest rate	10.00%
Note payable Four [Member]
Debt Agreements
Maturity Date	Mar. 30, 2020
Amount Outstanding	$ 5,000,000
Interest rate	10.00%
Note payable Six [Member]
Debt Agreements
Maturity Date	Jul. 09, 2019
Amount Outstanding	$ 200,000
Interest rate	18.00%
Note payable Seven [Member]
Debt Agreements
Maturity Date	Dec. 06, 2019
Amount Outstanding	$ 450,100
Interest rate	18.00%
Secured Notes Payable [Member]
Debt Agreements
Amount Outstanding	$ 3,034,568
Total notes payable [Member]
Debt Agreements
Amount Outstanding	$ 6,728,928
Senior convertible debenture One [Member]
Debt Agreements
Maturity Date	Dec. 31, 2019
Amount Outstanding	$ 100,000
Interest rate	15.00%
Senior convertible debenture Two [Member]
Debt Agreements
Maturity Date	Dec. 31, 2019
Amount Outstanding	$ 25,000
Interest rate	15.00%
Senior convertible debenture Three [Member]
Debt Agreements
Maturity Date	Dec. 31, 2021
Amount Outstanding	$ 250,000
Interest rate	10.00%
Total senior convertible debenture [Member]
Debt Agreements
Amount Outstanding	$ 375,000

Debt Agreements (Details 1)	Dec. 31, 2019 USD ($)
Total	$ 5,389,492
Future maturities of long-term debt [Member]
2020	7,888,496
2021	2,250,000
2022
2023
2024
Thereafter
Total	$ 10,138,496

Debt Agreements - Additional Information (Details) - USD ($)					1 Months Ended																12 Months Ended
	Sep. 11, 2019	Aug. 14, 2019	Jun. 10, 2019	Apr. 01, 2019	Aug. 31, 2020	Nov. 30, 2019	Nov. 15, 2019	Nov. 07, 2019	Sep. 30, 2019	Sep. 24, 2019	Aug. 31, 2019	Jul. 31, 2019	Jun. 30, 2019	Apr. 30, 2019	Aug. 31, 2018	Jan. 31, 2018	Oct. 31, 2017	Sep. 30, 2017	Aug. 31, 2017	Aug. 31, 2016	Dec. 31, 2019	Jul. 09, 2019
Debt Agreement (Textual)
Aggregate principal amount outstanding																					$ 10,138,496
Common stock at a price																					$ 0.8902
Convertible Notes Payable [Member]
Debt Agreement (Textual)
Principal amount		$ 200,000	$ 200,000															$ 137,500			$ 400,000
Aggregate principal amount outstanding																					$ 2,000,000
Debt instrument interest rate		18.00%				9.00%												12.00%			8.775%	18.00%
Debt instrument maturity period, description			Since this note was not repaid and is currently past due, interest is being accrued at a rate of 18% per annum.																		Due on September 15, 2020. Principal and interest payments of $1,872 are due quarterly.
Debt instrument maturity date		Sep. 01, 2019	Jul. 09, 2019			Nov. 26, 2021												Oct. 17, 2017
Related parties agreed outstanding balance																					$ 3,828
Net proceeds received						$ 2,000,000
Secured loan agreement, description						In connection with this loan, DragonWave incurred $20,000 of debt discounts and $4,700,000 of debt issuance costs. The debt issuance costs were the result of the issuance of 1,050,000 shares of common stock of the Company and a cash payment of $80,000. During fiscal 2019, $196,667 of these costs were amortized and recognized in interest expense in the Consolidated Statement of Operations. As of December 31, 2019, there were $19,167 of debt discounts and $4,504,167 of debt issuance costs remaining.
Original issue discount			$ 6,000
October 2017 [Member]
Debt Agreement (Textual)
Principal amount																	$ 4,400,000
Debt instrument interest rate																8.00%
Debt instrument maturity period, description															The maturity date was extended to December 31, 2018 with new payment terms. In September 2018, the maturity date was extended to February 28, 2019 with new payment terms.	To extend the maturity date another 90 days.
Net proceeds received																	$ 4,000,000
Senior Convertible Debentures [Member]
Debt Agreement (Textual)
Debt instrument interest rate																	8.00%		8.00%
Convertible debt																	$ 300,000		$ 1,000,000
Senior convertible debentures interest percent																	8.00%		8.00%
Secured loan agreement, description																			In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller of $100,000 aggregate principal amount of 8% Senior Convertible Debentures of the seller that bore interest at the rate of 8% per annum and matured on December 31, 2019. Interest was payable semi-annually in cash or, at the seller's option, in shares of the seller's common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering. As of December 31, 2019, an aggregate principal amount of $100,000 was outstanding under these debentures. These debentures are past due and interest accrues at a rate of 15% per annum.
18% Senior Convertible Debentures [Member]
Debt Agreement (Textual)
Secured loan agreement, description				In connection with its acquisition of DragonWave and Lextrum in April 2019, ComSovereign assumed the obligations of the seller of $25,000 aggregate principal amount of 8% Senior Convertible Debentures of the seller that bore interest at the rate of 8% per annum and matured on December 31, 2019. Interest was payable semi-annually in cash or, at the seller's option, in shares of the seller's common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering. As of December 31, 2019, an aggregate principal amount of $25,000 was outstanding under these debentures. These debentures are past due and interest accrues at a rate of 15% per annum.
9% Senior Convertible Debentures [Member]
Debt Agreement (Textual)
Principal amount													$ 1,000,000
Debt instrument interest rate													9.00%
Debt instrument maturity date													Dec. 31, 2021
Aggregate shares of common stock							1,150,000
Senior convertible debentures interest percent													9.00%
Secured loan agreement, description											ComSovereign sold $1,000,000 principal amount of 9% Senior Convertible Debentures that bore interest at the rate of 9% per annum and matured on December 31, 2021. ComSovereign received $850,000 in cash. Interest was payable in arrears in June and December of each year in cash or, at ComSovereign’s option, in shares of common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering.	ComSovereign sold $1,000,000 principal amount of 9% Senior Convertible Debentures that bore interest at the rate of 9% per annum and matured on December 31, 2021. ComSovereign received $850,000 in cash. Interest was payable in arrears in June and December of each year in cash or, at ComSovereign’s option, in shares of common stock at the conversion price that was equal to the lesser of (1) $8.00 or (2) 80% of the common stock price offered under the next equity offering.
Original issue discount													$ 63,880
Net proceed received from promissory note													$ 850,000
Warrants to purchase an aggregate shares							132,500						100,000
Common stock at a price													$ 5.00
Debt discount amount													$ 1,100,000
Beneficial conversion feature amount													$ 786,549
Warants cancelled, description													The warrants were cancelled and 132,500 warrants were issued for $1.50 per share.
9% Senior Convertible Debentures [Member] \| Warrant [Member]
Debt Agreement (Textual)
Warrants to purchase an aggregate shares							20,000
Promissory note [Member]
Debt Agreement (Textual)
Principal amount																				$ 550,000
Aggregate principal amount outstanding																					788,709
Debt instrument interest rate																				8.50%
Debt instrument maturity date																				Aug. 31, 2018
Related parties agreed outstanding balance	$ 813,709
Outstanding balance due date	Feb. 28, 2020
Interest and principal payments, description																				Beginning April 1, 2017, equal monthly payments of $1,011 for interest and principal are due on the note for 60 consecutive months.
Promissory note, description																				InduraPower did not fulfil the requirements to maintain a balance of at least $155,159 at J.P. Morgan while the promissory note is outstanding and maintain a debt service coverage ratio of at least 1.25. Due to this breach of clauses, the promissory note holder is contractually entitled to request immediate repayment of the outstanding promissory note, and/or increase the interest rate up to an additional 18% per annum.
Promissory note [Member] \| Warrant [Member]
Debt Agreement (Textual)
Principal amount									$ 5,250,000
Net proceeds received																					$ 24,425
Net proceed received from promissory note									$ 3,485,000
Warrants to purchase an aggregate shares									2,442,500
Common stock at a price									$ 0.01												$ 0.01
Warrants converted into shares																					2,442,500
Common stock conversion price, description									As incentive to enter into the promissory note, the noteholder was issued 500,000 shares of ComSovereign's common stock for the total purchase price of $4.40 per share, or $2,200,000, of which only $5,000 was paid in cash.
Promissory Note One [Member]
Debt Agreement (Textual)
Principal amount																				$ 50,000
Aggregate principal amount outstanding																					$ 21,571
Debt instrument interest rate																				7.785%
Debt instrument maturity date																				Sep. 01, 2021
Promissory note, description					InduraPower did not fulfil the requirements to maintain a balance of at least $155,159 at J.P. Morgan while the promissory note is outstanding and maintain a debt service coverage ratio of at least 1.25. Due to this breach of clauses, the promissory note holder is contractually entitled to request immediate repayment of the outstanding promissory note, and/or increase the interest rate up to an additional 18% per annum.
Promissory Note Two [Member]
Debt Agreement (Textual)
Principal amount																				$ 450,000
Aggregate principal amount outstanding																					224,288
Debt instrument interest rate																				9.00%
Debt instrument maturity date																				Mar. 01, 2022
Interest and principal payments, description																				Accrued interest only payments were due monthly beginning October 1, 2016 through March 1, 2017. Monthly payments of $9,341 for interest and principal are due on this note for the following 60 consecutive months.
Promissory Note Three [Member]
Debt Agreement (Textual)
Principal amount														$ 500,000
Aggregate principal amount outstanding																					500,000
Debt instrument interest rate														12.00%
Debt instrument maturity period, description																		On October 1, 2019, the maturity date was extended until September 30, 2020 and the interest rate was reduced to 10% per annum. All unpaid accrued interest from October 2017 through September 30, 2019 was converted into 150,000 shares of common stock of ComSovereign. Accrued interest and the full principal balance are due at maturity. As of December 31, 2019, an aggregate principal amount of $500,000 was outstanding under this note. On April 30, 2020, the Company also issued 14,496 shares of common stock in lieu of an aggregate cash interest payment payable by ComSovereign through December 31, 2019 on this outstanding note payable.
Debt instrument maturity date														Oct. 17, 2017
Aggregate shares of common stock																		150,000
Promissory Note Eight [Member]
Debt Agreement (Textual)
Principal amount														$ 175,000
Aggregate principal amount outstanding																					175,000
Debt instrument interest rate														15.00%
Debt instrument maturity period, description																		ComSovereign amended the promissory note to extend the maturity date to September 30, 2020 and to change the interest rate to 10% per annum. Both parties to the note also agreed to convert all unpaid accrued interest into 10,000 shares of common stock of ComSovereign, valued at $44,000. Accrued interest and principal are due and payable at maturity.
Debt instrument maturity date														Nov. 30, 2017
Aggregate shares of common stock																		10,000
Interest rate increased														18.00%
Promissory Note Four [Member]
Debt Agreement (Textual)
Principal amount			200,000
Aggregate principal amount outstanding																					200,000
Promissory Note Seven [Member]
Debt Agreement (Textual)
Principal amount								$ 450,100
Aggregate principal amount outstanding								$ 450,100													450,100
Debt instrument interest rate								18.00%
Debt instrument maturity date								Dec. 06, 2019
Related parties agreed outstanding balance								$ 200,100
Interest rate increased								133.00%
Notes Payable [Member]
Debt Agreement (Textual)
Secured loan agreement, description																	On September 3, 2019, the promissory note was increased to $5,000,000 as all unpaid accrued interest was added to the principal balance. Additionally, the maturity date was extended to March 30, 2020 and the interest rate was changed to 10% per annum. Under this new amendment, principal and interest payments are due and payable monthly. On April 21, 2020, the maturity date of this note was extended to August 31, 2020, and the interest rate was increased to 12% per annum.
10% Senior Convertible Debentures [Member]
Debt Agreement (Textual)
Aggregate principal amount outstanding										$ 250,000											250,000
Debt instrument interest rate										10.00%
Debt instrument maturity date										Dec. 31, 2021
Common stock conversion price, description										Interest is paid semi-annually in arrears in June and December of each year in cash or, at ComSovereign's option, in shares of common stock at the conversion price that was equal to the lesser of (1) $2.50 or (2) a future effective price per share of any common stock sold by ComSovereign. Upon an event of default, the interest rate shall automatically increase to 15% per annum. As of December 31, 2019, an aggregate principal amount of $250,000 was outstanding under these debentures. In connection with these debentures, ComSovereign recognized a BCF of $69,000 and a debt discount of $181,000 associated with the issuance of warrants, both of which are recorded as debt discounts. During fiscal 2019, $25,000 of these costs were amortized and recognized in interest expense in the Consolidated Statement of Operations. As of December 31, 2019, there were $225,000 of debt discounts remaining. On April 30, 2020, these debentures were amended to provide for the conversion of the debentures into shares of the Company's common stock instead of ComSovereign's common stock. Additionally, the conversion price was changed from $2.50 per share to $0.756 per share. As a result, all the outstanding warrants were exercised at $0.01 per share into 283,530 shares of the Company's common stock. The Company also issued 6,700 shares of common stock on April 30, 2020 in lieu of an aggregate cash interest payment payable by ComSovereign through December 31, 2019 on these outstanding convertible debentures.
Interest rate increased										15.00%
New Promissory Note [Member]
Debt Agreement (Textual)
Principal amount			$ 200,000
Debt instrument interest rate			18.00%
Debt instrument maturity period, description			The full $200,000 balance was due at maturity.
Debt instrument maturity date			Jul. 09, 2019
Original issue discount			$ 6,000
Promissory Note Five [Member]
Debt Agreement (Textual)
Aggregate principal amount outstanding																					175,000
Promissory Note Six [Member]
Debt Agreement (Textual)
Aggregate principal amount outstanding																					5,000,000
8% Senior Convertible Debentures [Member]
Debt Agreement (Textual)
Aggregate principal amount outstanding																					$ 25,000
Debt instrument interest rate																					15.00%

Related Party Transactions (Details) - USD ($)		1 Months Ended									12 Months Ended
Related Party Transactions (Details) - USD ($)	Aug. 05, 2019	Dec. 02, 2019	Nov. 19, 2019	Oct. 31, 2019	Mar. 21, 2019	Jan. 31, 2019	Jan. 22, 2019	Sep. 26, 2018	Oct. 31, 2017	Aug. 31, 2016	Dec. 31, 2019	Dec. 31, 2018
Related Party Transactions (Textual)
Receivables - related party											$ 1,595
Accrued liabilities - related party											461,254
Share-based compensation expense											54,667
Professional services											$ 23,036
Grant of RSAs, description		The Company's Board of Directors granted an aggregate of 1,900,000 RSAs to eight officers and directors at a grant date fair value of $0.82 per share of common stock for a total value of $1,558,000. The vesting period for these RSAs is as follows: 850,000 vest on the one-year anniversary of the grant date; 850,000 vest on the two-year anniversary of the original grant date; and 200,000 vest on the three-year anniversary of the original grant date.	ComSovereign's Board of Directors granted an aggregate of 24,000 restricted stock awards ("RSAs") to three executives of DragonWave and Silver Bullet at a grant date fair value of $4.40 per share of common stock for a total value of $105,600.
Grant of common stock, description						Daniel L. Hodges, Chairman and Chief Executive Officer of ComSovereign at such time, and John E. Howell, President of ComSovereign at such time, each acquired 12,000,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.	Three members of the Board of Directors of ComSovereign and an executive officer of ComSovereign acquired an aggregate of 2,150,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required. Additionally, four executive officers of InduraPower, Lextrum and VEO acquired an aggregate of 500,000 shares of common stock of ComSovereign at a value of $0.0001 per share of common stock with no cash paid to ComSovereign and no services required.
Chief Executive Officer [Member]
Related Party Transactions (Textual)
Related Party Transactions, description											Sergei Begliarov paid $71,199 worth of expense of behalf of InduraPower, and Daniel L. Hodges, Chairman and Chief Executive Officer of ComSovereign at the time, paid $6,588 of rent on behalf of InduraPower. Additionally, during 2019, TM Technologies, Inc. ("TM"), described below, paid $29,300 worth of expense of behalf of InduraPower. These amounts were recorded in accrued liabilities – related party as of December 31, 2019.
Daniel Hodges [Member]
Related Party Transactions (Textual)
Rent paid											$ 29,120	$ 29,120
Promissory note [Member]
Related Party Transactions (Textual)
Expiration date										Aug. 31, 2018
Interest rate										8.50%
Promissory note, description										InduraPower did not fulfil the requirements to maintain a balance of at least $155,159 at J.P. Morgan while the promissory note is outstanding and maintain a debt service coverage ratio of at least 1.25. Due to this breach of clauses, the promissory note holder is contractually entitled to request immediate repayment of the outstanding promissory note, and/or increase the interest rate up to an additional 18% per annum.
Cognitive Carbon Corporation [Member]
Related Party Transactions (Textual)
Outsourced development					$ 19,750
Outsourced development term					1 year
Outsourced software and platform development					$ 120,000
TM [Member]
Related Party Transactions (Textual)
Outstanding amount									$ 250,000		1,292,953
Related Party Transactions, description				This loan was increased to $1,292,953 at an interest rate of 5% per annum with a maturity date of August 31, 2020.					This loan was increased to $1,292,953 at an interest rate of 5% per annum with a maturity date of August 31, 2020.
Mr. Hodges and his wife [Member]
Related Party Transactions (Textual)
Expiration date	Dec. 31, 2019
Aggregate principal amount	$ 200,000
Outstanding amount											200,000
Interest rate	5.00%
Indura Power [Member] \| Promissory note [Member]
Related Party Transactions (Textual)
Accrued liabilities - related party										$ 153,761
Promissory note, description										InduraPower entered into a promissory note in the principal amount of $50,000 that bears interest at 7.785% per annum and matures on September 1, 2021. At the same time, InduraPower also entered into a promissory note in the principal amount of $450,000 with the same lender that bears interest at 9.0% per annum and matures on March 1, 2022. A requirement of the promissory notes is to maintain a balance of at least $155,159 at J.P. Morgan while the promissory notes are outstanding. Sergei Begliarov, Chief Executive Officer of InduraPower, provided cash of $153,761 to comply with the requirements of the promissory notes.
Global Security Innovative Strategies [Member]
Related Party Transactions (Textual)
Options to purchase of stock								100,000
Option price								$ 1.00
Expiration date								Sep. 26, 2022
Payment for management fee								$ 10,000
Kevin Hess [Member]
Related Party Transactions (Textual)
Professional services											$ 148,250

Shareholders' Equity (Details) - USD ($)		12 Months Ended
Shareholders' Equity (Details) - USD ($)	Sep. 04, 2019	Dec. 31, 2019	Jan. 29, 2019	Jan. 22, 2019	Jan. 20, 2019	Jan. 12, 2019
Shareholders' Equity (Textual)
Common stock, shares authorized		300,000,000
Common stock, shares issued		128,326,243
Common stock, shares outstanding		128,326,243
Preferred shares, authorised		100,000,000
Preferred shares, issued
Preferred shares, outstanding
Shares of common stock redeemed	100,000
Value of common stock redeemed	$ 50,000
Price per share	$ 0.50		$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Description of warrants		The Company had outstanding warrants to purchase an aggregate of 503,523 shares of common stock. Of those 503,523 warrants, 283,523 had an exercise price of $0.01 per share; 70,000 had an exercise price of $5.00 per share; 100,000 had an exercise price of $1.00 per share; and the remaining 50,000 had an exercise price of $0.50 per share.
Preferred Series A [Member]
Shareholders' Equity (Textual)
Preferred shares, authorised		5,000,000
Preferred shares, issued		2,600,000
Preferred shares, outstanding		2,600,000

Revenue (Details)	12 Months Ended
Revenue (Details)	Dec. 31, 2019 USD ($)
Revenue [Abstract]
Services and products transferred at a point in time	$ 2,803,026
Services and products transferred over time	1,909,186
Total revenue	$ 4,712,212

Revenue (Details 1)	12 Months Ended
Revenue (Details 1)	Dec. 31, 2019 USD ($)
Total revenue	$ 4,712,212
Products [Member]
Total revenue	2,702,410
Services [Member]
Total revenue	$ 2,009,802

Revenue (Details 2)	12 Months Ended
Revenue (Details 2)	Dec. 31, 2019 USD ($)
Total revenue	$ 4,712,212
North America [Member]
Total revenue	3,476,977
International [Member]
Total revenue	$ 1,235,235

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2017 $ / shares shares
January 9, 2017 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	100,000
Option Price \| $ / shares	$ 2.90
Full Vesting Date	Jan. 09, 2019
Expiration Date	Jan. 07, 2021
August 3, 2017 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	5,130,000
Option Price \| $ / shares	$ 0.50
Full Vesting Date	Aug. 03, 2017
Expiration Date	Aug. 03, 2021
November 9, 2017 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	2,000,000
Option Price \| $ / shares	$ 0.50
Full Vesting Date	Nov. 09, 2017
Expiration Date	Nov. 09, 2021
December 13, 2017 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	200,000
Option Price \| $ / shares	$ 1.00
Full Vesting Date	Nov. 13, 2019
Expiration Date	Dec. 13, 2021

Share-Based Compensation (Details 1)	12 Months Ended
Share-Based Compensation (Details 1)	Dec. 31, 2018 $ / shares shares
March 28, 2018 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	100,000
Vesting	50% in one year; 50% in two years from grant date
Option Price \| $ / shares	$ 1.00
Full Vesting Date	Mar. 28, 2020
Expiration Date	Mar. 28, 2022
May 16, 2018 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	330,000
Vesting	Immediate vesting
Option Price \| $ / shares	$ 1.00
Full Vesting Date	May 16, 2018
Expiration Date	May 16, 2022
May 16, 2018 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	130,000
Vesting	50% in one year; 50% in two years from grant date
Option Price \| $ / shares	$ 1.00
Full Vesting Date	May 16, 2020
Expiration Date	May 16, 2022
September 26, 2018 [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Underlying Shares \| shares	6,000,000
Vesting	$4,000,000 new government orders
Option Price \| $ / shares	$ 0.65
Full Vesting Date	Dec. 21, 2018
Expiration Date	Sep. 26, 2022

Share-Based Compensation (Details 2) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2019
Summary of assumptions used to estimate fair value of stock options granted
Expected dividend yield	0.00%
Expected volatility	90.00%
Expected life of options	4 years
Minimum [Member]
Summary of assumptions used to estimate fair value of stock options granted
Risk-free interest rate	2.40%
Maximum [Member]
Summary of assumptions used to estimate fair value of stock options granted
Risk-free interest rate	2.47%

Share-Based Compensation (Details 3) - Employee Stock Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of Options
Outstanding - Beginning Balance	13,990,000
Granted	180,000
Exercised	(5,250,000)
Cancelled or Expired	(225,000)
Outstanding - Ending Balance	8,695,000	13,990,000
Exercisable - Ending Balance	8,695,000
Weighted Average Exercise Price per Share
Outstanding - Beginning Balance	$ 0.61
Granted	1.06
Exerccised	0.57
Cancelled or Expired	0.72
Outstanding - Ending Balance	0.63	$ 0.61
Exercisable - Ending Balance	$ 0.63
Weighted Average Contractual Life in Years
Outstanding	1 year 4 months 2 days	3 years 1 month 24 days
Exercisable	1 year 4 months 2 days
Aggregate Intrinsic Value
Exercisable	$ 2,264,760
Outstanding	$ 2,264,760

Share-Based Compensation - Additional Information (Details) - USD ($)

1 Months Ended

12 Months Ended

Dec. 02, 2019

Nov. 27, 2019

Nov. 19, 2019

Nov. 14, 2019

Nov. 12, 2019

Mar. 25, 2019

Mar. 20, 2019

Dec. 31, 2019

Share-Based Compensation (Textual)

Restricted stock vested

270,800

80,000

Grant date fair value

$ 1,191,520

General and administrative

^[1]

$ 14,325,078

Grant date fair value per share

$ 4.40

Non-employee [Member]

Share-Based Compensation (Textual)

Restricted stock vested

50,000

40,000

20,000

Grant date fair value

$ 220,000

$ 176,000

$ 352,000

Consulting services

60,000

Grant date fair value per share

$ 4.40

Vesting One [Member]

Share-Based Compensation (Textual)

Restricted stock vested

850,000

Vesting Two [Member]

Share-Based Compensation (Textual)

Restricted stock vested

850,000

Vesting Three [Member]

Share-Based Compensation (Textual)

Restricted stock vested

200,000

Officers and Directors [Member]

Share-Based Compensation (Textual)

Restricted stock award

1,900,000

Employee Stock Option [Member]

Share-Based Compensation (Textual)

Purchase of common stock

180,000

Exercise price

$ 1.06

Expiration date

Mar. 20, 2023

Compensation expense

$ 1,495,000

Restricted stock award

2,300,000

General and administrative

258,256

Black Scholes Option [Member]

Share-Based Compensation (Textual)

Grant date fair value

$ 123,130

Restricted stock award

180,000

Employee Stock Option One [Member]

Share-Based Compensation (Textual)

Compensation expense

157,441

Restricted Stock Awards [Member]

Share-Based Compensation (Textual)

Compensation expense

$ 54,667

[1]	These are exclusive of depreciation and amortization

Warrants (Details)	12 Months Ended
Warrants (Details)	Dec. 31, 2019 $ / shares shares
November 20, 2015 [Memeber]
Class of Warrant or Right [Line Items]
Issuance Date	Nov. 20, 2015
Warrants Issued \| shares	70,000
Exercise Price \| $ / shares	$ 5.00
Full Vesting Date	Nov. 20, 2015
Expiration Date	Nov. 20, 2020
April 27, 2016 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	Apr. 27, 2016
Warrants Issued \| shares	60,000
Exercise Price \| $ / shares	$ 2.91
Full Vesting Date	Apr. 27, 2016
Expiration Date	Apr. 27, 2019
August 3, 2017 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	Aug. 03, 2017
Warrants Issued \| shares	30,000
Exercise Price \| $ / shares	$ 0.50
Full Vesting Date	Aug. 03, 2017
Expiration Date	Aug. 03, 2021
August 3, 2017 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	Aug. 03, 2017
Warrants Issued \| shares	2,000,000
Exercise Price \| $ / shares	$ 0.50
Full Vesting Date	Aug. 03, 2017
Expiration Date	Aug. 03, 2022
November 9, 2017 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	Nov. 09, 2017
Warrants Issued \| shares	20,000
Exercise Price \| $ / shares	$ 0.50
Full Vesting Date	Nov. 09, 2017
Expiration Date	Nov. 09, 2021
September 26, 2018 [Member]
Class of Warrant or Right [Line Items]
Issuance Date	Sep. 26, 2018
Warrants Issued \| shares	100,000
Exercise Price \| $ / shares	$ 1.00
Full Vesting Date	Sep. 26, 2018
Expiration Date	Sep. 26, 2022

Warrants (Details 1) - Warrant [Member]	12 Months Ended
Warrants (Details 1) - Warrant [Member]	Dec. 31, 2019
Summary of assumptions used to estimate fair value of stock warrants granted
Expected dividend yield	0.00%
Minimum [Member]
Summary of assumptions used to estimate fair value of stock warrants granted
Expected volatility	32.00%
Risk-free interest rate	1.38%
Expected life of warrants	2 years 3 months 8 days
Maximum [Member]
Summary of assumptions used to estimate fair value of stock warrants granted
Expected volatility	33.00%
Risk-free interest rate	1.82%
Expected life of warrants	3 years

Warrants (Details 2) - Warrant [Member]	12 Months Ended
Warrants (Details 2) - Warrant [Member]	Dec. 31, 2019 USD ($) $ / shares shares
Number of Warrants
Outstanding - Beginning Balance \| shares	2,280,000
Exercisable - Beginning Balance \| shares	2,280,000
Granted \| shares	3,735,000
Exercised \| shares	(5,472,500)
Forfeited or Expired \| shares	(172,500)
Outstanding - Ending Balance \| shares	370,000
Exercisable - Ending Balance \| shares	370,000
Weighted Average Exercise Price per Share
Outstanding - Beginning Balance \| $ / shares	$ 0.72
Exercisable - Beginning Balance \| $ / shares	0.72
Granted \| $ / shares	0.19
Exercised \| $ / shares	0.23
Forfeited or Expired \| $ / shares	3.91
Outstanding - Ending Balance \| $ / shares	1.29
Exercisable - Ending Balance \| $ / shares	$ 1.29
Weighted Average Contractual Life in Years
Outstanding, Beginning Balance	3 years 5 months 9 days
Exercisable, Beginning Balance	3 years 5 months 9 days
Outstanding, Ending Balance	1 year 11 months 12 days
Exercisable, Ending Balance	1 year 11 months 12 days
Aggregate Intrinsic Value
Outstanding \| $	$ 145,100
Exercisable \| $	$ 145,100

Warrants - Additional Information (Details) - USD ($)		1 Months Ended		3 Months Ended	12 Months Ended
Warrants - Additional Information (Details) - USD ($)	Oct. 15, 2019	Sep. 30, 2019	Sep. 24, 2019	Sep. 30, 2019	Dec. 31, 2019	Apr. 21, 2020
Warrants (Textual)
Interest expense					$ 1,549,667
Warrants exercised					2,000,000
Warrant [Member]
Warrants (Textual)
Warrant to purchase	442,500	2,000,000	150,000	2,000,000
Exercise price	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Warrants expiration date	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2021
Senior convertible debentures , percentage			10.00%
Description of warrants					Prior to conversion of the related debentures, ComSovereign cancelled warrants to purchase 80,000 shares of common stock at $5.00 per share, and reissued warrants to purchase 112,500 shares of common stock at $1.50 per share. ComSovereign valued the new warrants at $250,835 using the Black-Scholes pricing model, which is included in interest expense on the Consolidated Statement of Operations. Warrants to purchase all 132,500 shares of common stock were exercised in November 2019 prior to the ComSovereign Acquisition.
Interest expense					$ 3,138,667
Warrants to purchase shares	442,500		283,530		930,000
Warrants exercised					132,500
Warrant [Member] \| Subsequent Event [Member]
Warrants (Textual)
Warrant to purchase						283,530
Eight Warrant [Member]
Warrants (Textual)
Warrant to purchase		100,000		100,000
Exercise price		$ 5.00		$ 5.00
Warrants expiration date				Dec. 31, 2021
Senior convertible debentures , percentage		9.00%		9.00%

Income Taxes (Details)	Dec. 31, 2019 USD ($)
Deferred tax assets:
Share-based compensation	$ 13,700
Inventory reserve	137,000
Allowance for bad debt	172,700
Net operating loss carryover	11,867,800
Foreign losses	4,130,000
General business credits	256,400
Valuation allowance	(3,762,800)
Total deferred tax assets	12,814,800
Deferred tax liabilities:
Depreciation	(43,000)
Amortization	(12,771,800)
Total deferred tax liabilities	(12,814,800)
Net deferred tax assets (liabilities)

Income Taxes (Details 1)	12 Months Ended
Income Taxes (Details 1)	Dec. 31, 2019 USD ($)
Income Tax Disclosure [Abstract]
Income tax benefit at statutory federal income tax rate	$ (5,851,800)
Permanent items	18,900
Valuation allowance	1,693,900
Income tax benefit	$ (4,137,900)
Income tax benefit at statutory federal income tax rate	21.00%
State tax expense, net of federal benefit	4.00%
Permanent items	(0.06%)
Valuation allowance	(11.88%)
Income tax benefit	13.06%

Income Taxes - Additional Information (Details)	12 Months Ended
Income Taxes - Additional Information (Details)	Dec. 31, 2019 USD ($)
Income Taxes (Textual)
Net operating loss carry-forward	$ 47,472,000
Operating loss carryforwards, Limitations on use	The Company had domestic net operating loss carryforwards of approximately $47,472,000, of which approximately $13,615,000 was generated pre-2018 that may be carried forward 20 years to offset against future taxable income from the year 2019 through 2039, and approximately $33,857,000 that may offset future taxable income with no definite expiration date.
Tax Cut and Jobs Act, description	The Tax Cut and Jobs Act was enacted on December 22, 2017, which reduced the U.S. corporate statutory income tax rate from 35% to 21% beginning January 1, 2018.
Uncertain tax positions, description	(1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon the ultimate settlement with the related tax authority. The Company did not record any liabilities related to uncertain tax positions as of December 31, 2019.

Leases (Details) - USD ($)	Dec. 31, 2019	Dec. 13, 2019	Jan. 11, 2019
ROU assets	$ 2,199,682	$ 1,540,142
Lease liability	1,744,569
Operating Leases [Member]
ROU assets	2,199,682		$ 116,876
Lease liability	$ 2,212,548		$ 116,876

Leases (Details 1) - USD ($)	12 Months Ended
Leases (Details 1) - USD ($)	Dec. 31, 2019	Jan. 31, 2019
Lease liability - short term	$ 467,979
Lease liability - long term	1,744,569
Lease liability - total	2,212,548	$ 44,588
Other information related [Member]
ROU Asset - January 10, 2019	116,876
Increase	2,300,580
Amortization	(217,774)
ROU Asset - December 31, 2019	2,199,682
Lease liability - January 10, 2019	116,876
Increase	2,300,580
Amortization	(204,908)
Lease liability - December 31, 2019	2,212,548
Lease liability - short term	467,979
Lease liability - long term	1,744,569
Lease liability - total	$ 2,212,548

Leases (Details 2) - USD ($)	Dec. 31, 2019	Jan. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020	$ 557,200
2021	521,067
2022	431,146
2023	434,736
2024	389,917
Thereafter	177,735
Total minimum lease payments	2,511,801
Less: effect of discounting	(299,253)
Present value of future minimum lease payments	2,212,548	$ 44,588
Less: current obligations under leases	(467,979)
Long-term lease obligations	$ 1,744,569

Leases - Additional Information (Details)						1 Months Ended	12 Months Ended
Leases - Additional Information (Details)	Dec. 13, 2019 USD ($) ft²	Jun. 12, 2019 USD ($) ft²	Jun. 01, 2019 ft²	Mar. 01, 2019 USD ($) ft²	Jun. 01, 2018 ft²	Jan. 31, 2019 USD ($) ft²	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Leases (Textual)
Description of incremental borrowing rate								Incremental borrowing rate of 5.5%.
Weighted average remaining operating lease term							4 years 6 months 21 days	4 years 6 months 21 days
Weighted average discount rate							6.50%	6.50%
Lease payments				$ 54,852		$ 6,316		$ 89,482
Operating lease rate	5.70%			5.50%		5.90%	8.46%	8.46%
Lease liability						$ 44,588	$ 2,212,548	$ 2,212,548
Lease area square feet \| ft²	15,289			2,390	7,432	5,533
Right-of-use asset and lease liability	$ 1,540,142						2,199,682	$ 2,199,682
VEO [Member]
Leases (Textual)
Lease payments							$ 341,200
Operating lease rate							5.70%	5.70%
Lease area square feet \| ft²			3,031
DragonWave [Member]
Leases (Textual)
Lease payments		$ 10,708
Lease area square feet \| ft²		13,541
Minimum [Member]
Leases (Textual)
Lease payments	27,074
Lease liability				$ 2,091			$ 5,351	$ 5,351
Minimum [Member] \| VEO [Member]
Leases (Textual)
Lease payments							6,800
Maximum [Member]
Leases (Textual)
Lease payments	$ 29,622
Lease liability				$ 2,188			5,717	$ 5,717
Maximum [Member] \| VEO [Member]
Leases (Textual)
Lease payments							$ 7,654

Commitments and Contingencies (Details) - Subsequent Event [Member] - USD ($)	Feb. 07, 2020	Jan. 17, 2020
Commitments and Contingencies (Textual)
Arrow merchandise value		$ 125,000
Ordered additional merchandise		520,000
Forbearance agreement indebtedness		654,000
Dragonwave's obligation plus accrued interest		733,000
Connection with the forbearance		$ 183,000
Inventory, description	DragonWave agreed to repurchase inventory held by Tessco Technologies Incorporated ("Tessco"), one of DragonWave's customers and note holders. Upon receipt of the inventory, which is valued at $121,482, DragonWave agreed to reimburse Tessco $56,766, representing the balance due after making the initial payment of $60,000. The return of inventory and payment to Tessco of $56,776 was required by February 28, 2020, but has not yet been made. On June 5, 2020, Tessco filed a complaint for confessed judgment against DragonWave in the Circuit Court for Baltimore, Maryland, Case No. 5539212, for approximately $60,000, which it claims is the reimbursement amount.

Concentrations (Details)	Dec. 31, 2019
Concentrations (Textual)
Trade accounts receivable	84.00%

Subsequent Events (Details)				1 Months Ended				12 Months Ended
Subsequent Events (Details)	Mar. 12, 2020 USD ($) shares	Mar. 06, 2020 USD ($) shares	Feb. 07, 2020 USD ($)	May 29, 2020 USD ($)	Apr. 29, 2020 USD ($) shares	Mar. 19, 2020 USD ($)	Feb. 26, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	May 31, 2020 USD ($)	Apr. 30, 2020 USD ($) shares
Subsequent Events (Textual)
Proceeds from common stock									$ 5,000
Subsequent event, description								January 29, 2021. Within three business days of filing the Annual Report for fiscal 2019, the investor is required to purchase, and the Company is required to issue and sell to the investor, an additional convertible promissory note in the principal amount of $285,714 with an original issue discount of $35,714 along with warrants to purchase an additional 158,730 shares of the Company's common stock for proceeds of $250,000. This note will bear interest at 12.5% per annum and mature on January 29, 2021. The investor will not be required to purchase the additional securities if the Company is in default under the outstanding notes or if certain other conditions are not met.
Inventory								$ 4,671,396	$ 4,671,396
Subsequent Event [Member]
Subsequent Events (Textual)
Common stock authorized awards to granted \| shares											10,000,000
Inventory			$ 121,481
Inventory reimburse			$ 56,766
Subsequent Event [Member] \| Warrant [Member]
Subsequent Events (Textual)
Warrants to purchase shares \| shares					158,730
Proceeds from common stock					$ 250,000
Subsequent Event [Member] \| Consulting Agreement [Member]
Subsequent Events (Textual)
Stock issued \| shares	165,095
Stock issued value	$ 106,238
Consulting agreement, description	Additional $106,238 that was owed by Lextrum was partially paid in cash of $55,000 on March 6, 2020. The remaining $51,238 is still outstanding.
Subsequent Event [Member] \| Consulting Agreement [Member] \| Minimum [Member]
Subsequent Events (Textual)
Percentage of compensation	50
Subsequent Event [Member] \| Consulting Agreement [Member] \| Maximum [Member]
Subsequent Events (Textual)
Percentage of compensation	100
Subsequent Event [Member] \| Stock Purchase Agreement [Member]
Subsequent Events (Textual)
Spring creek, description		Acquire 100% of the shares of common stock of Spring Creek Manufacturing, Inc. for a purchase price of $500,000. The acquisition closed on March 6, 2020 with Sovereign Plastics paying the purchase price through the assumption of the obligations of the sellers under an outstanding promissory note in the principal amount of $90,000 and the delivery of short-term promissory notes in the aggregate principal amount of $410,000. Additionally, Sovereign Plastics agreed to pay certain sales commissions on all sales to two specific customers.
Subsequent Event [Member] \| Asset Purchase Agreement [Member]
Subsequent Events (Textual)
Fast plastics, description		The acquisition also closed on March 6, 2020 with Sovereign Plastics providing the purchase price of approximately $1,464,000 by the payment of approximately $66,000 in cash, the repayment of outstanding indebtedness of Fast Plastics in the aggregate amount of $250,000 and the assumption of an outstanding term loan of Fast Plastics in the amount of approximately $979,000. Sovereign Plastics also assumed equipment leases.
Debt instrument maturity date		Sep. 04, 2020
Subsequent Event [Member] \| Promissory note [Member]
Subsequent Events (Textual)
Promissory notes principal amount		$ 500,000
Stock grants of aggregate shares \| shares		50,000
Purchase price		$ 450,000
Subsequent Event [Member] \| 2020 Long-Term Incentive Plan [Member]
Subsequent Events (Textual)
Common stock authorized awards to granted \| shares											10,000,000
Subsequent Event [Member] \| Debt Agreements [Member]
Subsequent Events (Textual)
Promissory notes principal amount				$ 290,000	$ 285,714	$ 2,022,722
Debt instrument maturity date				Sep. 30, 2020			Dec. 26, 2020
Secured business loan							$ 600,000
Interest rate				12.00%	12.50%	5.00%	81.74%
Principal and interest payments						$ 8,428	$ 19,429
Original issue discount, amount				$ 40,000	$ 35,714
Proceeds from common stock				$ 250,000
Subsequent Event [Member] \| Paycheck Protection Program [Member]
Subsequent Events (Textual)
Promissory notes principal amount										$ 455,185	$ 455,185