UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

~~[X]~~

☒

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

For the quarterly period ended ~~March 31, 2019~~September 30, 2023

~~[ ]~~

☐

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

For the transition period from __________ to ___________

Commission file number: 333-222094

TPT Global Tech, Inc.

(Exact name of registrant as specified in its charter)

Florida		81-3903357
(State or other jurisdiction of incorporation or ~~organization~~organization)		(I.R.S. Employer Identification No.)


501 West Broadway, Suite 800 San Diego, CA		92101
(Address of principal executive offices)		(Zip Code)

(619) 301-4200

(Registrant’s telephone number, including area ~~code~~code)

(Former Address and phone of principal executive offices)

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
~~N/A~~ ---	~~N/A~~	~~N/A~~ ---		---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.

Yes

~~[X]~~

☒

~~[ ]~~

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 for Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

~~[X]~~

☒

~~[ ]~~

☐

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

Large accelerated filer	☐	~~[ ]~~	Accelerated filer	~~[ ]~~ ☐
Non-accelerated filer	☒	~~[X]~~	Smaller reporting company	~~[X]~~ ☒
			Emerging growth company	~~[X]~~ ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided to Section ~~7(a)(2)(B)~~13(a) of the Securities Act. ~~[ ]~~☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

~~[ ]~~

☐

~~[X]~~

☒

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

As of ~~May 20, 2019,~~December 13, 2023, there were ~~136,953,904~~2,154,412,687 shares of the registrant’s common stock, ~~$.001~~$0.001 par value, issued and outstanding.

~~TABLE OF CONTENTS~~

		~~Page~~

TABLE OF CONTENTS

			Page
	PART 1 – FINANCIAL INFORMATION

Item 1.	Financial Statements ~~(Unaudited)~~	4	3

	Condensed Consolidated Balance Sheets – ~~March 31, 2019~~September 30, 2023 (Unaudited) and December 31, ~~2018~~2022	4	3

	Condensed Consolidated Statements of Operations -– Three and Nine months ended ~~March 31, 2019~~September 30, 2023 and ~~2018~~2022 (Unaudited)	6	5

	Condensed Consolidated Statements of Stockholders’ Deficit – Three ~~Months~~and Nine months ended ~~March 31, 2019~~September 30, 2023 and ~~2018~~2022 (Unaudited)	7	6

	Condensed Consolidated Statements of Cash Flows – ~~Three~~Nine months ended ~~March 31, 2019~~September 30, 2023 and ~~2018~~2022 (Unaudited)	9	7

	Notes to the Condensed Consolidated Financial Statements (Unaudited)	11	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25	35

Item 3.	Quantitative and Qualitative Disclosures About Market Risk –Not Applicable	26	37

Item 4.	Controls and Procedures	26	37

	PART II- OTHER INFORMATION

Item 1.	Legal Proceedings –~~Not Applicable~~	26	38

Item 1A.	Risk Factors – Not Applicable	26	39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds –~~Not Applicable~~	44	39

Item 3.	Defaults Upon Senior Securities –~~Not Applicable~~	44	41

Item 4.	Mine Safety Disclosure–Not Applicable	44	41

Item 5.	Other Information –Not Applicable	44	41

Item 6.	Exhibits		42

	Signatures		43


~~Item 6.~~	~~Exhibits~~	442

	~~Signatures~~	45

Table of Contents

PART I – FINANCIAL INFORMATION

~~Item~~ITEM 1. ~~Financial Statements~~FINANCIAL STATEMENTS

TPT Global Tech, Inc.

~~Condensed Consolidated Balance Sheets~~CONDENSED CONSOLIDATED BALANCE SHEETS

~~Assets~~ASSETS

March 31, December 31
2019 2018
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 510,970 $ 31,786
Accounts receivable, net 71,245 48,922
Prepaid expenses and other current assets 1,767 36,111
Total current assets $ 583,982 $ 116,819
NON-CURRENT ASSETS
Property and equipment, net $ 2,975,235 $ 3,046,942
Intangible assets, net 6,465,580 6,671,582
Goodwill 924,361 924,361
Deposits and other assets 66,996 62,013
Total non-current assets $ 10,432,172 $ 10,704,898

TOTAL ASSETS $ 11,016,154 $ 10,821,717

	September 30		December 31,
	2023		2022
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	—	$	59,630
Accounts receivable, net		61,055		5,808
Accounts receivable – related party		—		265,273
Prepaid expenses and other current assets		18,570		20,813
Assets held for sale		—		616,263
Total current assets		79,625		967,787
NON-CURRENT ASSETS
Property and equipment, net		1,226,000		2,455
Deposits and other assets		53,195		60,998
Total non-current assets		1,279,195		63,453

TOTAL ASSETS	$	1,358,820	$	1,031,240

~~Liabilities and Stockholders'~~LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
Accounts payable and accrued expenses $ 5,401,935 $ 4,993,970
    Deferred revenue 32,043 6,450
    Customer deposits 338,725 338,725
    Business loans, advances and agreements 766,936 716,936
    Current portion of convertible notes payable, net of discount 41,336 10,000
    Notes payable - related parties, net of discount 9,296,492 9,137,982
Current portion of convertible notes payable – related parties, net of discounts 192,938 202,688
Derivative liabilities 2,208,416 —
Financing lease liabilities 137,890 138,774
Financing lease liabilities – related party 605,508 598,490
       Total current liabilities $ 19,022,219 $ 16,144,015

NON-CURRENT LIABILITIES
Convertible note payable, net of current portion and discounts $ 5,000 $ 5,000
Convertible notes payable – related parties, net of current portion and discounts 722,500 599,200
       Total non-current liabilities 727,500 604,200
Total liabilities $ 19,749,719 $ 16,748,215

Commitments and contingencies – See Note 7
—   —

CURRENT LIABILITIES
Accounts payable and accrued expenses	$	11,798,925	$	10,084,058
Deferred revenue		146,351		75,556
Customer liability		338,725		338,725
Current portion of loans, advances and factoring agreements		1,002,559		902,809
Convertible notes payable, net of discounts		3,424,556		3,054,869
Notes payable - related parties, net of discounts		4,902,510		4,762,579
Convertible notes payable – related parties, net of discounts		553,100		553,100
Derivative liabilities		4,203,788		4,822,398
Current portion of operating lease liabilities		7,353,988		5,897,274
Financing lease liabilities – related party		731,830		710,776
Liabilities held for sale		—		717,414
Total current liabilities		34,456,332		31,919,558

NON-CURRENT LIABILITIES
Loans, advances and factoring agreements, net of current portion and discounts		—		144,460
Operating lease liabilities, net of current portion		787,313		1,932,599
Total non-current liabilities		787,313		2,077,059
Total liabilities		35,243,645		33,996,617

Commitments and contingencies		—		—

~~Table of Contents~~

STOCKHOLDERS' DEFICIT

Preferred stock, $.001 par vaue 100,000,000 shares authorized:
Convertible Preferred Series A, 1,000,000 designated - 1,000,000 shares issued and outstanding as of March 31, 2019 and December 31, 2018 $ 1,000 $ 1,000
Convertible Preferred Series B, 3,000,000 designated - 2,588,693 shares issued and outstanding as of March 31, 2019 and December 31, 2018 2,589 2,589
Convertible Preferred Series C – 3,000,000 shares designated, zero shares issued and outstanding as of March 31, 2019 and December 31, 2018 — —
Common stock, $.001 par value, 1,000,000,000 shares authorized, 136,953,904 shares issued and outstanding as of March 31, 2019 and December 31, 2018 136,954 136,954
Subscriptions payable 269,569 168,006
Additional paid-in capital 12,640,597 12,567,881
Accumulated deficit (21,784,274 ) (18,802,928 )
Total stockholders' deficit (8,733,565 ) (5,926,498 )

Total liabilities and stockholders' DEFICIT $ 11,016,154 $ 10,821,717

See accompanying notes to condensed consolidated financial statements.


	3

Table of Contents

TPT Global Tech, Inc.

~~Condensed Consolidated Statements of Operations~~CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED

~~(Unaudited)~~

	September 30,			December 31,
	2023			2022
	(Unaudited)

MEZZANINE EQUITY

Convertible Preferred Series A, 1,000,000 designated - 1,000,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022		42,983,742			42,983,742
Convertible Preferred Series B – 3,000,000 shares designated, 2,588,693 shares issued and outstanding as of September 30, 2023 and December 31, 2022		1,677,473			1,677,473
Convertible Preferred Series C – 3,000,000 shares designated, zero shares issued and outstanding as of September 30, 2023 and December 31, 2022		—			—
Convertible Preferred Series D, 10,000,000 designated – 46,649 shares issued and outstanding as of September 30, 2023 and December 31, 2022		244,592			244,592
Convertible Preferred Series E, 10,000,000 designated – 2,243,507 and 2,043,507 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		14,570,101			13,344,101
Total mezzanine equity		59,475,908			58,249,908

STOCKHOLDERS' DEFICIT
Common stock, $.001 par value, 4,500,000,000 shares authorized, 1,882,579,354 and 1,256,900,534 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		1,882,579			1,256,901
Subscriptions payable		40,435			26,910
Additional paid-in capital		14,946,692			13,966,895
Accumulated deficit		(109,549,957	)		(106,418,722	)
Total TPT Global Tech, Inc. stockholders' deficit		(92,680,251	)		(91,168,016	)
Non-controlling interests		(680,482	)		(47,269	)
Total stockholders’ deficit		(93,360,733	)		(91,215,285	)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	1,358,820		$	1,031,240

For the three months ended March 31,
2019 2018

Revenues:
   Products $ 18,683 $ 41,650
   Services 142,793 208,568
Total Revenues $ 161,476 $ 250,218

COST OF SALES:
   Products $ 20,500 $ 42,500
   Services 241,868 221,795
Total Costs of Sales $ 262,368 $ 264,295
Gross profit (loss) $ (100,892 ) $ (14,077 )
EXPENSES:
   Sales and marketing $ —   $ 18,886
Professional 512,540 355,408
Payroll and related 197,541 182,739
General and administrative 222,011 192,588
Depreciation 71,707 43,873
Amortization 206,002 199,600
                Total expenses $ 1,209,801 $ 993,094

OTHER INCOME (EXPENSE)
Derivative expense (1,540,416 ) —
Interest expense (130,237 ) (30,410 )
                 Total other income expenses $ (1,670,653 ) $ (30,410 )

Net loss before income taxes (2,981,346 ) (1,037,581 )
Income taxes —   —
NET LOSS $ (2,981,346 ) $ (1,037,581 )

Loss per common share-basic and diluted $ (0.02 ) $ (0.01 )

Weighted-average common shares outstanding-basic and diluted 136,953,904 136,953,904

See accompanying notes to condensed consolidated financial ~~statements~~statements.

Table of Contents

TPT Global Tech, Inc.

~~Condensed Consolidated Statements~~CONDENSED CONSOLIDATED STATEMENTS OF ~~Stockholders' DEFICIT~~OPERATIONS

~~For the three months ended March 31, 2019 and 2018~~

~~(Unauditd)~~(Unaudited)

Series A Preferred Stock Series B Preferred Stock Common Stock Subscriptions
Additional
Paid-in
Accumulated
Shares Amount Shares Amount Shares Amount Payable (Receivable) Capital Deficit Total
Balance as of December 31, 2017 1,000,000 $ 1,000 2,588,693 $ 2,589 136,953,904 $ 136,954 $ (4,765 ) $ 10,371,442 $ (13,425,439 ) $ (2,918,219 )

Issuance of stock and stock options for services —   —   —   —   —   —   254,306 14,224 —   268,530

Cash received for common stock to be contributed by officer —   —   —   —   —   —   122,000 —   —   122,000
Net loss —   —   —   —   —   —   —   —   $ (1,037,581 ) $ (1,037,581 )
Balance as of March 31, 2018 1,000,000 $ 1,000 2,588,693 $ 2,589 136,953,904 $ 136,954 $ 371,541 $ 10,385,666 $ (14,463,020 ) $ (3,565,270 )

	For the three months ended September 30,						For the nine months ended September 30,
	2023			2022			2023			2022
REVENUES:
Products	$	—		$	—		$	—		$	82,000
Services		923,251			2,052,817			3,007,866			6,063,465
Total Revenues		923,251			2,052,817			3,007,866			6,145,465

COST OF SALES:
Productss		—			—			—			27,882
Servicess		739,513			1,691,539			1,783,343			4,466,047
Total Costs of Sales		739,513			1,691,539			1,783,343			4,493,929
Gross profit (loss)		183,738			361,278			1,224,523			1,651,536
EXPENSES:
Professional		375,536			249,989			1,419,199			894,615
Payroll and related		455,063			572,574			1,478,320			1,823,527
General and administrative		587,831			489,663			1,418,044			1,358,560
Research and development		—			—			—			1,750,000
Depreciation		—			150,454			2,454			448,943
Amortization		—			164,057			—			492,171
Total expenses		1,418,430			1,626,737			4,318,017			6,767,816
Loss from operations		(1,234,692	)		(1,265,459	)		(3,093,494	)		(5,116,280	)

OTHER INCOME (EXPENSE)
Derivative gain (expense)		1,015,764			102,903			367,881			491,301
Gain (loss) on debt extinguishment		133,850			397,008			466,380			(1,970,030	)
Interest expense		(412,735	)		(426,265	)		(1,340,412	)		(4,705,548	)
Other income (expense)		6,525			(53,206	)		380,493			(52,387	)
Total other income (expenses)		743,404			20,440			(125,658	)		(6,236,664	)

Net loss before income taxes		(491,288	)		(1,245,019	)		(3,219,152	)		(11,352,944	)
Income taxes		—			—			—			—
Net loss from continuing operations		(491,288	)		(1,245,019	)		(3,219,152	)		(11,352,944	)
Discontinued operations:
Net (loss) from discontinued operations		107,639			—			(557	)		—
Gain on disposal of discontinued operations		126,101			—			126,101			—
Net income from discontinued operations		233,740			—			125,544			—
NET LOSS BEFORE NON-CONTROLLING INTERESTS		(257,548	)		(1,245,019	)		(3,093,608	)		(11,352,944	)

NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS		84,632			(16,156	)		37,627			(6,633	)
DEEMED DIVIDEND RELATED TO MODIFICATION OF SERIES A PREFERRED STOCK		—			(39,866,742	)		—			(39,866,742	)
NET LOSS ATTRIBUTABLE TO TPT GLOBAL TECH, INC. SHAREHOLDERS	$	(342,180	)	$	(41,095,605	)	$	(3,131,235	)	$	(51,213,053	)
Loss per common share- Basic and diluted:
Continuing operations	$	(0.00	)	$	(0.04	)	$	(0.00	)	$	(0.06	)
Discontinued operations		0.00			—			0.00			—
Loss per common share- Basic and diluted	$	(0.00	)	$	(0.04	)	$	(0.00	)	$	(0.06	)
Weighted average number of common shares outstanding - Basic and diluted		1,810,916,794			950,225,974			1,681,251,378			932,094,683

See accompanying notes to condensed consolidated financial ~~statements~~statements.

Table of Contents

TPT Global Tech, Inc.

~~Consolidated Statements~~CONDENSED CONSOLIDATED STATEMENTS OF ~~Stockholders' DEFICIT- Continued~~STOCKHOLDERS' DEFICIT

For the three and nine months ended ~~March 31, 2019~~September 30, 2023 and ~~2018~~2022

(Unaudited)

	Common Stock				Subscriptions		Additional Paid-in		Accumulated			Non-Controlling			Total Stockholders’
	Shares		Amount		Payable		Capital		Deficit			Interest			Deficit
Balance as of June 30, 2023		1,723,749,021	$	1,723,749	$	37,560	$	14,907,994	$	(109,207,777	)	$	(761,908	)	$	(93,300,382	)
Issuance of shares for services		53,830,333		53,830		1,100		30,698		—			—			85,628
Subscription payable for services		—		—		1,775		—		—			—			1,775
Disposition of IST		—		—		—		—		—			(3,206	)		(3,206	)
Issuance of shares for exchange of debt		105,000,000		105,000		—		8,000		—			—			113,000
Net loss		—		—		—		—		(342,180	)		84,632			(257,548	)
Balance as of September 30, 2023		1,882,579,354	$	1,882,579	$	40,435	$	14,946,692	$	(109,549,957	)	$	(680,482	)	$	(93,360,733	)

	Common Stock				Subscriptions		Additional Paid-in		Accumulated			Non-Controlling			Total Stockholders’
	Shares		Amount		Payable		Capital		Deficit			Interest			Deficit
Balance as of December 31, 2022		1,256,900,534	$	1,256,901	$	26,910	$	13,966,895	$	(106,418,722	)	$	(47,269	)	$	(91,215,285	)
Issuance of shares for services		53,830,333		53,830		1,100		30,698		—			—			85,628
Subscription payable for services		—		—		12,425		—		—			—			12,425
Disposition of IST		—		—		—		—	—--				(3,206	)		(3,206	)
Issuance of shares for exchange for debt		571,848,487		571,848		—		345,240		—			—			917,088
Acquisition of Asberry 22 Holdings, Inc.		—		—		—		603,859					(667,634	)		(63,775	)
Net loss		—		—		—		—		(3,131,235	)		37,627			(3,093,608	)
Balance as of September 30, 2023		1,882,579,354	$	1,882,579	$	40,435	$	14,946,692	$	(109,549,957	)	$	(680,482	)	$	(93,360,733	)

	Common Stock				Subscriptions Payable		Additional Paid-in		Accumulated			Non-Controlling			Total Stockholders’
	Shares		Amount		(Receivable)		Capital		Deficit			Interest			Deficit
Balance as of June 30, 2022		923,029,038	$	923,029	$	16,260	$	12,860,873	$	(55,039,285	)	$	78,825		$	(41,160,298	)
Common stock issued for services or subscription payable		—		—		5,325		—		—			—			5,325
Debt conversion to common stock		105,149,600		105,150		—		425,719		—			—			530,869
Modification of Series A Preferred Stock										(39,866,742	)					(39,866,742	)
Net loss		—		—		—		—		(1,228,863	)		(16,156	)		(1,245,019	)
Balance as of September 30, 2022		1,028,178,638	$	1,028,179	$	21,585	$	13,286,592	$	(96,134,890	)	$	62,669		$	(81,735,865	)

	Common Stock				Subscriptions Payable		Additional Paid-in		Accumulated			Non-Controlling			Total Stockholders’
	Shares		Amount		(Receivable)		Capital		Deficit			Interest			Deficit
Balance as of December 31, 2021		923,029,038	$	923,029	$	5,610	$	12,860,873	$	(44,921,837	)	$	69,302		$	(31,063,023	)
Common stock issued for services or subscription payable		—		—		15,975		—		—			—			15,975
Debt conversion to common stock		105,149,600		105,150		—		425,719		—			—			530,869
Modification of Series A Preferred Stock										(39,866,742	)					(39,866,742	)
Net loss		—		—		—		—		(11,346,311	)		(6,633	)		(11,352,944	)
Balance as of September 30, 2022		1,028,178,638	$	1,028,179	$	21,585	$	13,286,592	$	(96,134,890	)	$	62,669		$	(81,735,865	)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

TPT Global Tech, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Series A
Preferred Stock

Series B
Preferred Stock
Common Stock Subscriptions Additional Paid-in Accumulated
Shares Amount Shares Amount Shares Amount Payable (Receivable) Capital Deficit Total
Balance as of
December 31, 2018 1,000,000 $ 1,000 2,588,693 $ 2,589 136,953,904 $ 136,954 $ 168,006 $ 12,567,881 $ (18,802,928 ) $ (5,926,498 )

Issuance of stock and stock options for services — — — — — — 101,563 72,716 — 174,279

Net Loss — — — — — — — — $ (2,981,346 ) $ (2,981,346 )

Balance as of
March 31, 2019 1,000,000 $ 1,000 2,588,693 $ 2,589 136,953,904 $ 136,954 $ 269,569 $ 12,640,597 $ (21,784,274 ) $ (8,733,565 )

	For the nine months ended September 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(3,093,608	)	$	(11,352,944	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net income from discontinued operations		125,544			—
Depreciation		2,454			448,943
Amortization		—			492,171
Amortization of debt discounts		694,938			3,593,957
Convertible Note payable issued for Asberry Series A Stock		508,553			—
Note payable issued for research and development		—			1,550,000
Derivative expense (gain)		(367,881	)		(491,301	)
Gain (loss) on extinguishment of debt		(466,380	)		1,970,030
Loss on disposition of property and equipment		—			124,849
Share-based compensation: Common stock		98,053			15,975
Changes in operating assets and liabilities:
Accounts receivable		(55,247	)		(193,973	)
Accounts receivable – related party		—
Prepaid expenses and other assets		271,766			(81,881	)
Deposits and other assets		7,804			186,198
Accounts payable and accrued expenses		1,696,700			1,633,792
Net change in operating lease right of use assets and liabilities		311,428			2,218,444
Other liabilities		70,795			(377,573	)
Net cash used in operating activities from continuing operations		(446,169	)		(263,313	)
Net cash provided by operating activities from discontinued operations		4,034			—
Net cash used in operating activities		(442,135	)		(263,313	)

Cash flows from investing activities:
Purchase of equipment		—			(16,297	)
Net cash used in investing activities		—			(16,297	)

Cash flows from financing activities:
Proceeds from convertible notes, loans and advances		358,500			1,256,187
Payment on convertible loans, advances and factoring agreements		(83,221	)		(1,391,580	)
Proceeds from notes payable – related parties		139,931			—
Payments on convertible notes and amounts payable – related parties		—			(39,664	)
Net cash provided by financing activities from continuing operations		415,210			(175,057	)
Net cash used in financing activities from discontinued operations		(32,705)			—
Net cash provided by financing activities		382,505			—
Net change in cash		(59,630	)		(454,667	)
Cash and cash equivalents - beginning of period		59,630			518,066

Cash and cash equivalents - end of period	$	—		$	59,630

See accompanying notes to condensed consolidated financial statements.

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TPT Global Tech, Inc.

~~Consolidated Statements of Cash Flows~~

~~(Unaudited)~~

For the three months ended March 31,
2019 2018
Cash flows from operating activities:
Net loss $ (2,981,346 ) (1,037,581 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 71,707 43,873
Amortization 206,002 199,600
Amortization of debt discount and other financing costs 165,297 —
Derivative expense 1,540,416 —
Share-based compensation: Common stock 136,007 254,306
Stock options 72,716 14,224
Changes in operating assets and liabilities:
Accounts receivable (22,323 ) (22,525 )
Prepaid expenses and other assets (5,084 ) 7,292
Accounts payable and accrued expenses 406,130 289,548
Accrued interest on financing lease liabilities 13,573 3,336
Other liabilities 27,428 (2,171 )
Net cash used in operating activities $ (369,477 ) (250,097 )

Cash flows from investing activities:
Net cash provided by investing activities $ —   —

Cash flows from financing activities:
Proceeds from stock subscriptions —   122,000
Proceeds from convertible notes and notes payable – related parties 259,549 140,000
Proceeds from convertible notes and business advance 606,300 5,064
Payments on convertible notes – related parties (9,750 ) (29,581 )
Payments on financing lease liabilities (7,438 ) (1,848 )
Net cash provided by financing activities $ 848,661 235,635

Net change in cash $ 479,184 (14,462 )
Cash and cash equivalents - beginning of period $ 31,786 36,380

Cash and cash equivalents - end of period $ 510,970 21,918

~~See accompanying notes to consolidated financial statements~~

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~~TPT Global Tech, Inc.~~

CONDENSED CONSOLIDATED STATEMENTS

OF CASH FLOWS - CONTINUED

(Unaudited)

Supplemental Cash Flow Information:

Cash paid for:

	2019		2018		2023		2022
Interest	$	16,616	$	819	$	49,762	$	8,384
Taxes	$	—	$	—	$	—	$	—

Non-Cash Investing and Financing Activities:

2019 2018
Discount on derivative financial instruments $ 668,000 $ —
$ — $ —

	2023		2022
Debt discount on factoring agreement	$	489,089		1,070,591
Series E Preferred Stock issued in exchange for debt and payables	$	—	$	13,344,101
Common Stock issued for conversion of notes payable	$	917,088	$	530,869
Series E Stock issued for property acquisition	$	1,226,000		—
Deemed dividend related to modification of Series A Preferred Stock	$	—		39,866,742
Acquisition of net liabilities of Asberry 22 Holdings, Inc.	$	63,775	$	—

See accompanying notes to condensed consolidated financial ~~statements~~statements.

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TPT Global Tech, Inc.

~~Notes to Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~March 31, 2019~~September 30, 2023

NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

The Company was originally incorporated in 1988 in the state of Florida. TPT Global, Inc., a Nevada corporation formed in June 2014, merged with Ally Pharma US, Inc., a Florida corporation, (“Ally Pharma”, formerly known as Gold Royalty Corporation) in a “reverse merger” wherein Ally Pharma issued 110,000,000 shares of Common Stock, or 80% ownership, to the owners of TPT Global, Inc. in exchange for all outstanding common stock of TPT Global Inc. and Ally Pharma agreed to change its name to TPT Global Tech, Inc. (jointly referred to as “the Company” or “TPTG”).

The following acquisitions have resulted in entities which have been consolidated into ~~TPTG. In 2014~~TPTG since the Company acquired all the assets of K Telecom and Wireless LLC (“K Telecom”) and Global Telecom International LLC (“Global Telecom”). Effective January 31, 2015, TPTG completed its acquisition of 100% of the outstanding stock of Copperhead Digital Holdings, Inc. (“Copperhead Digital”) and Subsidiaries, TruCom, LLC (“TruCom”), Nevada Utilities, Inc. (“Nevada Utilities”) and CityNet Arizona, LLC (“CityNet”). Effective September 30, 2016, the company acquired 100% ownershipreverse merger in ~~San Diego Media Inc. (“SDM”). In October 2017, we entered into agreements to acquire Blue Collar, Inc. (“Blue Collar”) which closed as of September 1, 2018.~~2014.

Name	Herein referred to as	Acquisition or Incorporation Date		Ownership
TPT Global Tech, Inc.	Company or TPTG		1988		100	%
Copperhead Digital Holdings, Inc.	Copperhead Digital or CDH		2015		100	%
TruCom, LLC	TruCom		2015		100	%
CityNet Arizona, LLC	CityNet		2015		100	%
San Diego Media Inc.	SDM		2016		100	%
Blue Collar Production, Inc.	Blue Collar		2018		100	%
TPT SpeedConnect, LLC	TPT SpeedConnect (2)		2019		86	%
TPT Federal, LLC	TPT Federal		2020		100	%
TPT MedTech, LLC	TPT MedTech		2020		100	%
TPT Strategic, Inc.	TPT Strategic		2020		0	%
QuikLab 1 LLC	Quiklab 1		2020		80	%
QuikLAB 2, LLC	QuikLAB 2		2020		80	%
QuikLAB 3, LLC	QuikLAB 3		2020		80	%
The Fitness Container, LLC	Air Fitness		2020		75	%
TPT Global Tech Asia Limited	TPT Asia		2020		78	%
TPT MedTech UK LTD	TPT MedTech UK		2020		100	%
TPT Global Defense Systems, Inc.	TPT Global Defense		2021		100	%
TPT Innovations Technology, Inc.	TPT Innovations		2021		100	%
TPT Global Caribbean Inc.	TPT Caribbean		2021		100	%
TPT Media and Entertainment, LLC	TPT Media and Entertainment		2021		100	%
VuMe Live, LLC	VuMe Live		2021		100	%
Digithrive, LLC	Digithrive		2021		100	%
Information Security and Training, LLC	IST (1)		2022		0	%
Asberry 22 Holdings, Inc.	Asberry or ASHI		2023		86	%

	(1)	On September 11, 2023, Everett Lanier and the Company agreed to a Settlement Agreement and Mutual Release (“Settlement Agreement”). See Note 11.
	(2)	Through the acquisition of Asberry, TPT’s ownership was decreased to 86% from 100% through Asberry.

We are based in San Diego, California, and operate as a ~~Media Content Hub~~technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for ~~Domestic~~domestic and ~~International~~international syndication ~~Technology/Telecommunications company operating~~as well as technology solutions. We operate on our own proprietary Global Digital Media TV and Telecommunications infrastructure platform and also provide technology solutions to businesses domestically and worldwide. We offer Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS) and carrier-grade performance and support for businesses over our private IP MPLS fiber and wireless network in the United States. Our cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. We also operate as a Master Distributor for Nationwide Mobile Virtual ~~network~~Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cellphone services, Mobile phones, Cellphone Accessories and Global Roaming Cellphones. ~~In addition, we create media marketing materials and content.~~

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Significant Accounting Policies

Please refer to Note 1 of the Notes to the Consolidated Financial Statements in the Company's most recent Form 10-K for all significant accounting policies of the Company, with the exception of those discussed below.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended ~~March 31, 2019~~September 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2019.~~2023.

These condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, ~~2018.~~2022. The condensed consolidated balance sheet ~~at March 31, 2019,~~as of September 30, 2023, has been derived from the consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP.

Our condensed consolidated financial statements include the accounts of ~~K Telecom and Global Telecom, Copperhead Digital, SDM, Port 2 Port, and Blue Collar.~~those entities outlined in Nature of Operations giving consideration to the non-controlling interests where appropriate. All intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts presented in previously issued financial statements have been reclassified in these financial statements. As of December 31, 2022, advances to employees of $23,200 were previously classified as prepaid assets and other current assets versus the current classification of offsetting accrued payroll liabilities in accounts payable.

Revenue Recognition

We use the following criteria described below in more detail for each business unit:

Identify the contract with the customer.

Identify the performance obligations in the contract.

Determine the transaction price.

Allocate the transaction price to performance obligations in the contract.

Recognize revenue when or as we satisfy a performance obligation. lo

Reserves are recorded as a reduction in net sales and are not considered material to our consolidated statements of operations for the nine months ended September 30, 2023 and 2022. In addition, we invoice our customers for taxes assessed by governmental authorities such as sales tax and value added taxes, where applicable. We present these taxes on a net basis.

11 10

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~~CRITICAL ACCOUNTING POLICIES~~

~~Revenue Recognition~~

~~On January 1, 2018, we adopted the new accounting standard ASC 606,~~ ~~Revenue from Contracts with Customers~~, and all of the related amendments (“new revenue standard”). We recorded the change, which was immaterial, related to adopting the new revenue standard using the modified retrospective method. Under this method, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. This results in no restatement of prior periods, which continue to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new revenue standard to continue to be immaterial on an ongoing basis. We have applied the new revenue standard to all contracts as of the date of initial application.

The Company’s revenue generation for the ~~last two years~~three and nine months ended September 30, 2023 and 2022 came from the following sources disaggregated by services and products, which sources are explained in detail below.

	For the three months ended September 30, 2023		For the three months ended September 30, 2022		For the nine months ended September 30, 2023		For the nine months ended September 30, 2022
TPT SpeedConnect	$	843,451	$	1,357,611	$	2,760,055	$	4,403,345
Blue Collar		79,063		692,486		243,592		1,386,970
TPT MedTech		—		—		—		89,755
Other (1)		737		2,720		4,219		183,395
Total Services Revenues	$	923,251	$	2,052,817	$	3,007,866	$	6,063,465
Air Fitness		—		—		—		82,000
Total Product Revenues	$	—	$	—	$	—	$	82,000
Total Revenue	$	923,251	$	2,052,817	$	3,007,866	$	6,145,465

__________

For the three months ended March 31, 2019 For the three months ended March 31, 2018
Copperhead Digital $ 67,700 $ 122,735
K Telecom 18,683 41,650
San Diego Media 13,343 71,405
Blue Collar 61,750 —
P2P — 14,428
Total Revenue $ 161,476 $ 250,218

(1)

Includes international sales for the nine months ended September 30, 2023 and 2022 of $0 and $172,781 related to TPT Asia.

~~Copperhead Digital:~~TPT SpeedConnect: ISP and Telecom Revenue

~~Copperhead Digital~~TPT SpeedConnect is a ~~regional internet and telecom services~~rural Internet provider operating in ~~Arizona~~5 Midwestern States under the trade name ~~Trucom. Copperhead Digital operates as a wireless telecommunications Internet Service Provider (“ISP”) facilitating both residential and commercial accounts. Copperhead Digital’s~~SpeedConnect. TPT SC’s primary business model is subscription based, pre-paid monthly reoccurring revenues, from wireless delivered, high-speed internet connections. In addition, the company resells third-party satellite and DSL internet and IP telephony services. Revenue generated from sales of telecommunications services is recognized as the transaction with the customer is considered closed and the customer receives and accepts the services that were the result of the transaction. There are no financing terms or variable transaction prices. Due date is detailed on monthly invoices distributed to customer. Services billed monthly in advance are deferred to the proper period as needed. Deferred revenue are contract liabilities for cash received before performance obligations for monthly services are satisfied. Deferred revenue for TPT SpeedConnect as of September 30, 2023 and December 31, 2022 are $146,351 and $75,556, respectively. Certain of our products require specialized installation and equipment. For telecom products that include installation, if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and installation revenue is recognized when the installation is complete. The Installation Technician collects the signed quote containing terms and conditions when installing the site equipment at customer premises.

Revenue for installation services and equipment is billed separately from recurring ISP and telecom services and is recognized when equipment is delivered and installation is completed. Revenue from ISP and telecom services is recognized monthly over the contractual period, or as services are rendered and accepted by the customer.

The overwhelming majority of our revenue continues to be recognized when transactions occur. Since installation fees are generally small relative to the size of the overall contract and because most contracts are for ~~a year~~two years or less, the impact of not recognizing installation fees over the contract is immaterial.

~~K Telecom: Prepaid Phones and SIM Cards Revenue~~

K Telecom generates revenue from reselling prepaid phones, SIM cards, and rechargeable minute traffic for prepaid phones to its customers (primarily retail outlets). Product sales occur at the customer’s locations, at which time delivery occurs and cash or check payment is received. The Company recognizes the revenue when they receive payment at the time of delivery.

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~~SDM: Ecommerce, Email Marketing and Web Design Services~~

SDM generates revenue by providing ecommerce, email marketing and web design solutions to small and large commercial businesses, complete with monthly software support, updates and maintenance. Services are billed monthly. Platform infrastructure support is a prepaid service billed in monthly recurring increments. The services are billed a month in advance and due prior to services being rendered. The revenue is deferred when invoiced and booked in the month the service is provided. Software support services (including software upgrades) are billed in real time, on the first of the month. Web design service revenues are recognized upon completion of specific projects. Revenue is booked in the month the services are rendered and payments are due on the final day of the month.

Blue Collar: Media Production Services

Blue Collar creates original live action and animated content productions and has produced hundreds of hours of material for the television, theatrical, home entertainment and new media markets. Blue Collar designs branding and marketing campaigns and has had agreements with some of the world’s largest companies including PepsiCo, Intel, HP, WalMart and many other Fortune 500 companies. Additionally, they create motion picture, television and home entertainment marketing campaigns for studios including Sony, DreamWorks, Twentieth Century Fox, Universal Studios, Paramount Studios, and Warner Brothers. With regard to revenue recognition, Blue Collar receives an agreement from each client to perform defined work. Some agreements are written, some are verbal. Work may include creation of marketing materials and/or content creation. Some work may be short term and take weeks to create and some work may be longer and take months to create. There are instances where customer agreements segregate identifiable obligations (like filming on site vs. film editing and final production) with separate transaction pricing. The performance obligation is generally satisfied upon delivery of such film or production products, at which time revenue is recognized. There are no financing terms or variable transaction prices.

~~P2P Asset Activity: Telecom~~

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IST: Revenue and Cost Recognition

~~Port 2 Port Communications (P2P)~~The Company recognizes construction contract revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Construction contracts are accounted for as a single unit of account (single performance obligation) and are not segmented between types of services. The Company recognizes revenue using the percentage-of-completion method, progress toward completion of the Company’s contracts is measured by the percentage of costs incurred to date to estimate total costs for each contract. The percentage-of-completion method (an input method) is the most faithful depiction of the Company’s performance because it directly measures the value of the services transferred to the customer.

Provisions are recognized in the statements of income for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated cost of a contract exceeds its estimated total revenue. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Profit incentives are included in revenues when their realization is reasonably assured. An amount equal to contract cost attributable to claims is included in revenues when realization is probable and the amount can be reasonably estimated.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs, and depreciation costs. Selling, general, and administrative costs are charged to expense as incurred.

The accuracy of revenue and profit recognition in a given period depends on the accuracy of estimates of the cost to complete each project. Cost estimates for all significant projects use a detailed “bottom up” approach, and management believes that their experience allows them to create materially reliable estimates. There are a number of factors that can contribute to changes in estimates of contract cost and profitability. The most significant of these include:

	·	the completeness and accuracy of the original bid;
	·	costs associated with scope changes;
	·	costs of labor and/or materials;
	·	extended overhead and other costs due to owner, weather, and other delays;
	·	subcontractor performance issues;
	·	changes in productivity expectations;
	·	site conditions that differ from those assumed in the original bid (to the extend contract remedies are unavailable);
	·	the availability and skill level of workers in the geographic location of the project;
	·	a change in the availability and proximity of equipment and materials; and
	·	the ability to fully and promptly recover on claims for additional contract costs.

The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins, may cause fluctuations in gross profit between periods. Significant changes in cost estimates, particularly in larger, more complex projects have had, and can in future periods have, a significant effect on profitability.

Costs and estimated earnings in excess of billings, represent unbilled amounts earned and reimbursable under contracts. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project. Generally, such unbilled amounts will be billed and collected over the next twelve months. Based on historical experience, management generally considers the collection risk related to these amounts to be low. When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded.

Billings in excess of costs and estimated earnings, is comprised of cash collected from customers and billings to customers on contracts in advance of work performed, including advance payments negotiated as a contract condition. Generally, unearned project-related costs will be earned over the next twelve months.

TPT MedTech: Medical Testing Revenue

TPT MedTech operates in the Point of Care Testing (“POCT”) market by primarily offering mobile medical testing facilities and software equipped for mobile devices to monitor and manage personalized healthcare. Services used from our mobile medical testing facilities are billing through credit cards at the time of service. Revenue is generated from our software platform as users sign up for our mobile healthcare monitor and management application and tests are performed. If medical testing is in one our own owned facility, the usage of the software application is included in the testing fees. If the testing is in a non-owned outside contracted facility, fees are generated from the usage of the software application on a per test basis and billed monthly.

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TPT MedTech also offers various products. One is to build and sell its mobile testing facilities called QuikLABs designed for mobile testing. This is used by TPT MedTech for its own testing services. Another is to build customized mobile gyms for exercising. This is sold to third parties. Another is medical equipment, one of which is a ~~U.S. domestic minutes provider that sells wholesale long distance domestic telecom minutes~~sanitizing unit called SANIQuik which is used as a safe and flexible way to ~~other domestic U.S. carriers. A~~sanitize providing an additional routine to hand washing and facial coverings. The SANIQuik has not yet been approved for sale in the United States but has in some parts of the European community. Revenues from these products are recognized when a product is delivered, the sales transaction considered closed and accepted by a customer. When deposits are received for which a product has not been delivered, it is recognized as deferred revenue. Deferred revenue as of September 30, 2023 and December 31, 2022 was $0 and $0, respectively. There are no financing terms or variable transaction prices for either of these products.

SDM: Ecommerce, Email Marketing and Web Design Services

SDM generates revenue by providing ecommerce, email marketing and web design solutions to small and large commercial businesses, complete with monthly software support, updates and maintenance. Services are billed monthly. There are no financing terms or variable transaction prices. Platform infrastructure support is a prepaid service billed in monthly recurring increments. The services are billed a month in advance and due prior to services being rendered. The revenue is deferred when invoiced and booked in the month the service is ~~defined~~provided. There is no deferred revenue as ~~wholesale~~of September 30, 2023 and December 31, 2022. Software support services (including software upgrades) are billed in real time, on the first of the month. Web design service revenues are recognized upon completion of specific projects. Revenue is booked in the month the services are rendered and payments are due on the final day of the month. There are usually no contract revenues that are deferred until services are performed.

K Telecom: Prepaid Phones and SIM Cards Revenue

Copperhead Digital: ISP and Telecom Revenue

Copperhead Digital operated as a regional internet and telecom ~~minute~~services provider operating in Arizona under the trade name Trucom. Although there are currently no customers and it will take capital to reopen this revenue stream, Copperhead Digital operated as a wireless telecommunications Internet Service Provider (“ISP”) facilitating both residential and commercial accounts. Copperhead Digital’s primary business model was subscription based, ~~on a per-minute~~pre-paid monthly reoccurring revenues, from wireless delivered, high-speed internet connections. In addition, the company resold third-party satellite and ~~per-destination rate basis. A series of services for P2P would be substantially the same~~DSL internet and ~~would include a pattern of transfers of services to a customer on a per-minute flat rate basis for all destinations in a specified geographic.~~IP telephony services. Revenue generated from sales of ~~minute~~telecommunications services was recognized as the transaction with the customer is considered closed and the customer received and accepted the services that were the result of the transaction. There are no financing terms or variable transaction prices. Due date was detailed on monthly invoices distributed to customer. Services billed monthly in advance were deferred to the proper period as needed. Deferred revenue was contract liabilities for cash received before performance obligations for monthly services are satisfied. Certain of its products required specialized installation and equipment. For telecom products that included installation, if the installation met the criteria to be considered a separate element, product revenue was recognized upon delivery, and installation revenue was recognized when ~~weekly invoices are generated~~the installation was complete. The Installation Technician collected the signed quote containing terms and ~~distributed.~~conditions when installing the site equipment at customer premises.

Revenue for installation services and equipment was billed separately from recurring ISP and telecom services and was recognized when equipment was delivered, and installation was completed. Revenue from ISP and telecom services was recognized monthly over the contractual period, or as services were rendered and accepted by the customer.

The overwhelming majority of revenue was recognized when transactions occurred. Since installation fees were generally small relative to the size of the overall contract and because most contracts were for a year or less, the impact of not recognizing installation fees over the contract was immaterial.

Basic and Diluted Net Loss Per Share

The Company computes net income (loss) per share in accordance with ASC 260, “Earning per Share””. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of ~~thee~~the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholder (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method for options and ~~convertible preferred stock~~warrants and using the if-converted ~~method.~~method for preferred stock and convertible notes. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of ~~March 31, 2019 and December 31, 2018,~~September 30, 2023, the Company had shares that were potentially common stock equivalents as follows:


	~~2019~~13

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Convertible Promissory Notes			6,750,885,442
Series A Preferred Stock (1)			~~128,056,506~~28,788,595,385
Series B Preferred Stock			2,588,693
Series D Preferred Stock (2)			235,601,010
Series E Preferred Stock (3)			10,320,742,424
Stock Options and Warrants			~~5,093,120~~129,116,666
~~Convertible Debt~~			~~9,975,367~~46,227,529,620

___________

	(1)	Holder of the Series A Preferred Stock which is Stephen J. Thomas, is guaranteed 60% of outstanding common stock upon conversion. The Company would have to authorize additional shares for this to occur as only 4,500,000,000 shares are currently authorized.
	(2)	Holders of the Series D Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series D Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series D Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.
	~~145,213,686~~ (3)	Holders of the Series E Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series E Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series E Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.

Financial Instruments and Fair Value of Financial Instruments

Our primary financial instruments at ~~March 31, 2019 and 2018~~September 30, 2023 consisted of cash equivalents, accounts receivable, accounts payable and ~~derivative liabilities.~~debt. We apply fair value measurement accounting to either record or disclose the value of our financial assets and liabilities in our financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value

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hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.

Described below are the three levels of inputs that may be used to measure fair value:

Level 1Quoted prices in active markets for identical assets or liabilities.

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

We consider our derivative financial instruments as Level 3. The balances for our derivative financial instruments as of ~~March 31, 2019~~September 30, 2023 are the following:

Derivative Instrument Fair Value
Fair value of Geneva Roth Convertible Promissory Note $ 82,016
Fair value of Auctus Convertible Promissory Note $ 2,082,832
Fair value of Warrants issued with Auctus Convertible Promissory Note $ 43,568

Derivative Instrument	Fair Value
Convertible Promissory Notes	$	4,093,369
Fair value of Warrants issued with the derivative instruments		110,419
	$	4,203,788

~~Use of Estimates~~

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The Company’s consolidated financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.

Recently ~~Adopted~~Issued Financial Accounting ~~Pronouncements~~

In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which amends ASC 718, Compensation – Stock Compensation. This ASU requires that most of the guidance related to stock compensation granted to employees be followed for non-employees, including the measurement date, valuation approach, and performance conditions. The expense is recognized in the same period as though cash were paid for the good or service. The effective date is the first quarter of fiscal year 2019, with early adoption permitted, including in interim periods. The ASU has been adopted using a modified-retrospective transition approach. The adoption is not considered to have a material effect on the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). Topic 842 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. We adopted Topic 842 using the effective date, January 2019, as the date of our initial application of the standard. Consequently, financial information for the comparative periods has not been updated. Our finance and operating lease commitments are subject to the new standard and we recognize as finance and operating lease liabilities and right-of-use assets. The effect on our consolidated financial statements has not been material.Standards

Management has reviewed ~~other~~ recently issued accounting pronouncements and ~~have~~has determined there are not any that would have a material impact on the condensed consolidated financial statements.

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NOTE 2 – ACQUISITIONS

Agreement and Plan of Merger

An Agreement and Plan of Merger ("Agreement") was made and entered into as of March 24, 2023 by and among TPT SpeedConnect LLC, a Colorado Limited Liability Company (wholly-owned subsidiary of TPT Global Tech, Inc.) ("SPC"), and Asberry 22 Holdings, Inc., a Delaware Corporation ("ASHI"), and SPC Acquisition, Inc., a wholly-owned subsidiary of ASHI, domiciled in Colorado ("Acquisition Sub") primarily for the opportunities of capital raising. SPC then converted to a Corporate entity and Acquisition Submerged with and into SPC (the "Merger"). The separate corporate existence of Acquisition Sub ceased and SPC continues as the surviving corporation in the Merger and as wholly-owned subsidiary of ASHI. All of the properties, rights and privileges, and power of SPC, vest in the Subsidiary, and all debts, liabilities and duties of SPC are the debts, liabilities and duties of the Subsidiary. The shares of common stock of Acquisition Sub issued and outstanding immediately prior to the Effective Time is converted into and exchange for 1,000 validly issued, fully paid and non-assessable shares of the Subsidiary's common stock.

TPT Global Tech, Inc. was issued a total of 4,658,318 common shares of ASHI (the "ASHI Common Stock"), as a result of the merger, constituting 86% of the then issued and outstanding common stock. TPT Global Tech, Inc. also has purchased all of the 500,000 Series A Super Majority Voting Preferred Shares of ASHI for a convertible note payable of $500,000 due in 180 days which bears interest at 6.0% per annum and is convertible to shares of the Company’s common stock at 85% of the volume weighted average price for the preceding 5 market trading days.

ASHI shall file a Form S-1 Registration Statement with the Securities Exchange Commission within 120 days after closing, to register for resale: a) the common shares of ASHI, issued at closing, b) conversion shares for the Series A Supermajority Preferred Stock and c) those outstanding shares of the shareholders of ASHI existing as of the day prior to closing, and shall pursue such S-1 filing diligently to effectiveness.

The Officers of ASHI shall resign effective upon the appointment of the new Officers, as designated by SPC. The Current Directors of ASHI shall remain as directors until the Series A Preferred Stock (500,000 shares) of ASHI shall have been redeemed or converted. SPC shall have designated two new directors for appointment effective at closing, and may then appoint new Officers, and the current officers shall resign at closing.

The Company evaluated this acquisition in accordance with ASC 805-10-55-4 to discern whether the assets and operations of the assets purchased met the definition of a business. The company concluded that there were not processes and sufficient inputs into outputs. Accordingly, the Company accounted for this transaction as an asset acquisition and allocated the purchase price as follows:

Consideration given at fair value:
Accounts payable	$	68,025
	$	68,025

Assets acquired at fair value:
Prepaid expenses	$	4,250
Additional paid in capital		63,775
	$	68,025

There was nothing accounted for in the Statement of Operations for the nine months ended September 30, 2023. On a proforma basis any adjustments would not be significant.

TPT Strategic Merger with Information Security and Training LLC and Subsequent Settlement Agreement

Dated as of June 29, 2022, for synergies and the opportunity at other revenue streams, TPT Strategic entered into a definitive agreement for the acquisition of the assets and Information Security and Training LLC (“IST LLC” or “IST”) (www.istincs.com) a Construction and Information Technology Services company based in Huntsville Alabama with branch offices in Nashville TN, Birmingham Al, Jackson MS, Fort Campbell KY, New Orleans LA, and Joint Base Lewis-McChord. The TPT Strategic and IST, LLC agreement, which closed October 20, 2022, for the acquisition is a stock transaction where the founder and sole interest holder, Everett Lanier received 500,000 Preferred Series B shares of TPT Strategic that will convert to a 10% ownership of TPT Strategic under certain conditions. The acquisition includes the assumption of all assets and certain liabilities. Everett Lanier was to remain as the President and become a Board Member of TPT Strategic.

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Originally, the Company evaluated this acquisition in accordance with ASC 805-10-55-4 to discern whether the assets and operations of the assets purchased met the definition of a business. The company concluded that there are processes and sufficient inputs into outputs. Accordingly, the Company accounted for this transaction as a business combination and allocated the purchase price as follows:

Consideration given at fair value:
Note payable, net of discount	$	374,018
Credit cards assumed		48,452
Preferred shares of TPT Strategic		3,206
	$	425,676

Assets acquired at fair value:
Working capital	$	143,122
Property and equipment		2,170
Note receivable – related party		271,179
Other assets		9,205
	$	425,676

On September 11, 2023, Everett Lanier and the Company agreed to a Settlement Agreement and Mutual Release (“Settlement Agreement”). See Note 11.

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NOTE 23 – GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.

We incurred ~~$2,981,346~~$3,093,608 and ~~$1,037,581,~~$11,352,944, respectively, in losses, and we used ~~$369,477~~$442,135 and ~~$250,097,~~$263,313, respectively, in cash for operations for the ~~three~~nine months ended ~~March 31, 2019~~September 30, 2023 and ~~2018.~~ 2022. We calculate the net cash used by operating activities by decreasing, or increasing in case of gain, our let loss by those items that do not require the use of cash such as depreciation, amortization, research and development, derivative expense or gain, gain on extinguishment of debt and share-based compensation which totaled to a net $343,636 for 2023 and $7,704,624 for 2022.

In addition, we report increases and reductions in liabilities as uses of cash and decreases assets and increases in liabilities as sources of cash, together referred to as changes in operating assets and liabilities. For the nine months ended September 30, 2023, we had a net change in our assets and liabilities of $2,303,246 primarily from an increase in accounts payable from lag of payments for accounts payable for cash flow considerations and increase in prepaid expenses. For the nine months ended September 30, 2022 we had a net increase to our assets and liabilities of $3,385,007 for similar reasons.

Cash flows from financing activities were ~~$848,661~~$382,505 and ~~$235,635~~$(175,057) for the ~~same periods.~~ nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, these cash flows were generated from proceeds from convertible notes of $358,500 and other notes receivable - related parties of $139,931 offset by payment on convertible loans, advances and factoring agreements of $83,221 and $32,705 in cash used in discontinued operations. For the nine months ended September 30, 2022, cash flows were generated from proceeds from convertible notes, loans and advances of $1,256,187 offset by payment on convertible loans, advances and factoring agreements of $1,391,580 and payments on amounts payable – related parties of $39,664.

Cash flows used in investing activities were $0 and $16,297, respectively, for the nine months ended September 30, 2023 and 2022 primarily related to the acquisition of property and equipment for 2022 and discontinued operations for 2023.

These factors raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Subsequent to March 31, 2019, a convertible promissory note was extended to the Company in the amount of $65,000 into convertible debt. In addition, the company secured $527,000 in the sale of future receipts.

In order for us to continue as a going concern for a period of one year from the issuance of these financial statements, we will need to obtain additional debt or equity financing and look for companies with cash flow positive operations that we can acquire. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to acquire cash flow positive operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet all our future obligations. Most of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to significantly reduce or cease operations.

~~NOTE 3 – PROPERTY AND EQUIPMENT~~

~~Property and equipment and related accumulated depreciation as of March 31, 2019 and December 31, 2018 are as follows:~~

2019 2018
Property and equipment:
Telecommunications fiber and equipment $ 3,274,045 3,274,045
Film production equipment 369,903 369,903
Office furniture and equipment 82,014 82,104
Leasehold improvements 18,679 18,679
3,744,641 3,744,641
Accumulated depreciation (769,406 ) (697,699 )
Property and equipment, net $ 2,975,235 3,046,942

~~Depreciation expense was $71,707 and $43,873 for the three months ended March 31, 2019 and 2018, respectively.~~

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~~NOTE 4 – DEBT FINANCING ARRANGEMENTS~~

~~Financing arrangements as of March 31, 2018 and December 31, 2018 are as follows:~~

2019 2018
Business loans and advances, net of discounts (1) $ 665,692 615,692
Convertible notes payable, net of discounts (2) 46,336 15,000
Factoring agreement (3) 101,244 101,244
Debt – third party $ 813,272 731,936

Line of credit, related party secured by assets (4) $ 3,043,390 3,043,390
Debt– other related party, net of discounts (5) 5,935,159 5,912,898
Convertible debt – related party (2) 915,438 801,888
Shareholder debt (6) 317,943 181,694
Debt – related party $ 10,211,930 9,939,870

Total financing arrangements $ 11,025,202 10,671,806

Less current liabilities:
   Business loans, advances and agreements $ (766,936 ) (716,936 )
Convertible notes payable, net of discount (41,336 ) (10,000 )
  Notes payable – related parties, net of discount (9,296,492 ) (9,137,982 )
  Convertible notes payable – related party (192,938 ) (202,688 )
(10,297,702 ) (10,067,606 )
Total non-current liabilities $ 727,500 604,200

~~(1)~~

The terms of $40,000 of this balance are similar to that of the Line of Credit which bears interest at adjustable rates, 1 month Libor plus 2%, 4.49% as of March 31, 2019, and is secured by assets of the Company, is due August 31, 2019, as amended, and included 8,000 stock options as part of the terms (see Note 6).

~~$500,500 is a line of credit that Blue Collar has with a bank, bears interest at Prime plus 1.125%, 6.125% as of March 31, 2019, and is due March 25, 2021.~~

$10,000 is an amount the bears interest at 6%, subsequently increased to 11%, as it was due and not repaid on October 10, 2018. The remaining balances generally bear interest at approximately 10%, have maturity dates that are due on demand or are past due, are unsecured and are classified as current in the balance sheets.

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	~~(2)~~	During 2017, the Company issued convertible promissory notes in the amount of $67,000 (comprised of $62,000 from two related parties and $5,000 from a former officer of CDH), all which are due May 1, 2020 and bear 6% annual interest (12% default interest rate). The convertible promissory notes are convertible, as amended, at $0.25 per share. During 2016, the Company acquired SDM which consideration included a convertible promissory note for $250,000 due August 31, 2018, as amended, does not bear interest, unless delinquent in which the interest is 12% per annum, and is convertible into common stock at $1.00 per share. The SDM balance is $192,938 as of March 31, 2019. During 2018, the Company issued convertible promissory notes in the amount of $537,200 to related parties and $10,000 to a non-related party which bear interest at 6% (11% default interest rate), are due 30 months from issuance and are convertible into Series C Preferred Stock at $1.00 per share. During 2019, the Company issued these same securities with the same terms in the amount of $123,300 to related parties. Because the Series C Preferred Stock has a conversion price of $0.15 per share, the issuance of Series C Preferred Stock promissory notes will cause a beneficial conversion feature of approximately $38,479 upon exercise of the convertible promissory notes. On March 19, 1919, the Company consummated a Securities Purchase Agreement dated March 15, 2019 with Geneva Roth Remark Holdings, Inc. (“Geneva Roth”) for the purchase of a $68,000 convertible promissory note (“Geneva Roth Convertible Promissory Note”). The Geneva Roth Convertible Promissory Note is due March 15, 2020, pays interest at the rate of 12% per annum and gives the holder the right from time to time, and at any time during the period beginning 180 days from the origination date to the maturity date or date of default to convert all or any part of the outstanding balance into common stock of the Company limited to 4.99% of the outstanding common stock of the Company. The conversion price is 61% multiplied by the average of the two lowest trading prices for the common stock during the previous 20 trading days prior to the applicable conversion date. The Geneva Roth Convertible Promissory Note may be prepaid in whole or in part of the outstanding balance at 125% to 140% up to 180 days from origination. On March 25, 2019, the company consummated a Securities Purchase Agreement dated March 18, 2019 with Auctus Fund, LLC. (“Auctus”) for the purchase of a $600,000 Convertible Promissory Note (“Auctus Convertible Promissory Note”). The Auctus Convertible Promissory Note is due December 18, 2019, pays interest at the rate of 12% per annum and gives the holder the right from time to time, and at any time during the period beginning 180 days from the origination date or at the effective date of the registration of the underlying shares of common stock, which the holder has registration rights for, to convert all of the outstanding balance into common stock of the Company limited to 4.99% of the outstanding common stock of the Company. The conversion price is 50% multiplied by the average of the two lowest trading prices for the common stock during the previous 25 trading days prior to the applicable conversion date. The Auctus Convertible Promissory Note may be prepaid in full at 135% to 150% up to 180 days from origination. 2,000,000 warrants were issued in conjunction with the issuance of this debt. See Note 7.

	~~(3)~~	The Factoring Agreement with full recourse, due August 31, 2019, as amended, was established in June 2016 with a company that is controlled by a shareholder and is personally guaranteed by an officer of the Company. The Factoring Agreement is such that the Company pays a discount of 2% per each 30-day period for each advance received against accounts receivable or future billings. The Company was advanced funds from the Factoring Agreement for which $101,244 in principal remained unpaid as of March 31, 2019 and December 31, 2018.

	~~(4)~~	The Line of Credit originated with a bank and was secured by the personal assets of certain shareholders of Copperhead Digital. During 2016, the Line of Credit was assigned to the Copperhead Digital shareholders, who subsequent to the Copperhead Digital acquisition by TPTG became shareholders of TPTG, and the secured personal assets were used to pay off the bank. The Line of Credit bears a variable interest rate based on the 1 Month LIBOR plus 2.0%, 4.49% as of March 31, 2019, is payable monthly, and is secured by the assets of the Company. 1,000,000 shares of Common Stock of the Company have been reserved to accomplish raising the funds to pay off the Line of Credit. Since assignment of the Line of Credit to certain shareholders, which balance on the date of assignment was $2,597,790, those shareholders have loaned the Company $445,600 under the similar terms and conditions as the line of credit but most of which were also given stock options totaling 85,120 (see Note 6) and is due, as amended, August 31, 2019. ~~During the year ended December 31, 2018, these same shareholders and one other loaned the Company money in the form of convertible loans of $537,200 described in (2) above~~

	~~(5)~~	$350,000 represents cash due to the prior owners of the technology acquired in December 2016 from the owner of the Lion Phone which is due to be paid as agreed by TPTG and the former owners of the Lion Phone technology and has not been determined. $4,000,000 represents a promissory note included as part of the consideration of ViewMe Live technology acquired in 2017, later agreed to as being due and payable in full, with no interest with $2,000,000 from debt proceeds and the remainder from proceeds from the second Company public offering intended to be in 2019. On September 1, 2018, the Company closed on its acquisition of Blue Collar. Part of the acquisition included a promissory note of $1,600,000 (fair value of $1,533,217, net of a discount to fair value of $66,783 which is being amortized through expense through the due date of May 1, 2019) and interest at 3% from the date of closure. $22,261 was amortized as interest expense in the three months ended March 31, 2019. The promissory note is secured by the assets of Blue Collar.

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~~(6)~~

The shareholder debt represents funds given to TPTG or subsidiaries by officers and managers of the Company as working capital. There are no written terms of repayment or interest that is being accrued to these amounts and they will only be paid back, according to management, if cash flows support it. They are classified as current in the balance sheets.

~~Note 5 -Derivative Financial Instruments~~

~~The Company previously adopted the provisions of ASC subtopic 825-10,~~ ~~Financial Instruments~~ (“ASC 825-10”). ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

~~The derivative liability as of March 31, 2019, in the amount of $2,208,416 has a level 3 classification under ASC 825-10.~~

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of March 31, 2019. There were no derivative financial instruments as of December 31, 2018.

Debt Derivative Liabilities
Balance, December 31, 2018 $ —
Debt discount from initial derivative 668,000
Initial fair value of derivative liabilities in excess of debt discounts 1,838,410
Change in fair value of derivative liabilities at end of period (297,994 )
Balance, March 31, 2019 $ 2,208,416
Derivative expense for the three months ended March 31, 2019 $ 1,540,416

~~Convertible notes payable and warrant derivatives –~~ The Company issued convertible promissory notes which are convertible into common stock, at holders’ option, at a discount to the market price of the Company’s common stock. The Company has identified the embedded derivatives related to these notes relating to certain anti-dilutive (reset) provisions. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date of debenture and to fair value as of each subsequent reporting date.

As of March 31, 2019, the Company marked to market the fair value of the debt derivatives and determined a fair value of $2,208,416 (2,164,848 from the convertible notes and $43,568 from the warrants in Note 4 (2) above). The Company recorded a gain from change in fair value of debt derivatives of $297,994 for the three months ended March 31, 2019. The fair value of the embedded derivatives was determined using Monte Carlo simulation method based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 188.2% to 212.8%, (3) weighted average risk-free interest rate of 2.23% to 2.52% (4) expected life of 0.72 to 5.0 years, and (5) the quoted market price of $0.0531 to $0.0726 for the Company’s common stock.

~~See Financing lease arrangements in Note 7.~~

~~NOTE 6 - STOCKHOLDERS' EQUITY~~

~~Preferred Stock~~

As of March 31, 2019, we had authorized 100,000,000 shares of Preferred Stock, of which certain shares had been designated as Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock.

~~Series A Convertible Preferred Stock~~

~~In February 2015, the Company designated 1,000,000 shares of Preferred Stock as Series A Preferred Stock.~~

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The Series A Preferred Stock was designated in February 2016, has a par value of $.001, is redeemable at the Company’s option at $100 per share, is senior to any other class or series of outstanding Preferred Stock or Common Stock and does not bear dividends. The Series A Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined, and of an amount equal to $100 per share. Holders of the Series A Preferred Stock shall, collectively have the right to convert all of their Series A Preferred Stock when conversion is elected into that number of shares of Common Stock of the Company, determined by the following formula: 60% of the issued and outstanding Common Shares as computed immediately after the transaction for conversion. For further clarification, the 60% of the issued and outstanding common shares includes what the holders of the Series A Preferred Stock may already hold in common shares at the time of conversion. The Series A Preferred Stock, collectively, shall have the right to vote as if converted prior to the vote to an amount of shares equal to 60% of the outstanding Common Stock of the Company.

In February 2015, the Board of Directors authorized the issuance of 1,000,000 shares of Series A Preferred Stock to Stephen Thomas, Chairman, CEO and President of the Company, valued at $3,117,000 for compensation expense.

~~Series B Convertible Preferred Stock~~

In February 2015, the Company designated 3,000,000 shares of Preferred Stock as Series B Convertible Preferred Stock. There are 2,588,693 shares of Series B Convertible Preferred Stock outstanding as of March 31, 2019.

The Series B Preferred Stock was designated in February 2015, has a par value of $.001, is not redeemable, is senior to any other class or series of outstanding Preferred Stock, except the Series A Preferred Stock, or Common Stock and does not bear dividends. The Series B Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined and currently the Series A Preferred Stock, and of an amount equal to $2.00 per share. Holders of the Series B Preferred Stock have a right to convert all or any part of the Series B Preferred Shares and will receive and equal amount of common shares at the conversion price of $2.00 per share. The Series B Preferred Stock holders have a right to vote on any matter with holders of Common Stock and shall have a number of votes equal to that number of Common Shares on a one to one basis.

~~Series C Convertible Preferred Stock~~

In May 2018, the Company designated 3,000,000 shares of Preferred Stock as Series C Convertible Preferred Stock. There are no shares of Series C Convertible Preferred Stock outstanding as of March 31, 2019.

The Series C Preferred Stock was designated in May 2018, has a par value of $.001, is not redeemable, is senior to any other class or series of outstanding Preferred Stock, except the Series A and Series B Preferred Stock, or Common Stock and does not bear dividends. The Series C Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined and currently the Series A and B Preferred Stock, and of an amount equal to $2.00 per share. Holders of the Series C Preferred Stock have a right to convert all or any part of the Series C Preferred Shares and will receive an equal amount of common shares at the conversion price of $0.15 per share. The Series C Preferred Stock holders have a right to vote on any matter with holders of Common Stock and shall have a number of votes equal to that number of Common Shares on a one to one basis.

~~Common Stock and Capital Contributions~~

~~As of March 31, 2019, we had authorized 1,000,000,000 shares of Common Stock, of which 136,953,904 common shares are issued and outstanding.~~

~~Common Stock Contributions Related to Acquisitions~~

Effective November 1 and 3, 2017, an officer of the Company contributed 9,765,000 shares of restricted Common Stock to the Company for the acquisition of Blue Collar and HRS. These shares were subsequently issued as consideration for these acquisitions in November 2017. In March 2018, the HRS acquisition was rescinded and 3,625,000 shares of common stock are being returned by the recipients. The other transaction involved 6,500,000 shares for the acquisition of Blue Collar which closed in 2018. As such, as of March 31, 2019 the 3,265,000 shares for the HRS transaction are reflected as subscriptions receivable based on their par value.

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~~Common Stock Issued for Expenses and Liabilities~~

During the year ended December 31, 2018, the Company entered into a two-year agreement for legal services. The agreement provided for 4,000,000 shares of restricted common stock to be issued. 2,000,000 to be issued for previous legal services upon execution of the agreement in March 2018 and the remaining 2,000,000 in the form of stock options to purchase common stock at $0.10 per share, of which the stock options would vest equally over 18 months. The value of the Company’s common stock upon execution of the agreement was $0.125 per share, or $250,000 which was recorded as professional expenses during 2018. See stock options and warrants discussion below for the value of the 2,000,000 stock options

During the year ended December 31, 2018, the Company also entered into a twelve-month general consulting agreement with a third party to provide general business advisory services to be rendered through March 31, 2019 for 1,000,000 restricted shares of common stock and 1,000,000 options to purchase restricted common shares at $0.10 per share for 36 months from the time of grant. The fair value of the common shares granted was based on the Company’s stock price of $0.155 per share, or $155,000 of which $34,444 was expensed during the three months ended March 31, 2019 for the portion of service term completed during this period.

For these two agreements, the underlying stock for the stock options are intended to come from the contribution of stock by an officer of the Company. During the three months ended March 31, 2019, the Company recorded $107,160 as stock-based compensation related to these agreements.

~~Common Stock Payable Issued for Expenses and Liabilities~~

~~As of March 31, 2019, 16,667 of common shares were subscribed to in 2018 for a note payable of $2,000.~~

In 2018, a majority of the outstanding voting shares of the Company voted through a consent resolution to support a consent resolution of the Board of Directors of the Company to add two new directors to the Board. As such, Arkady Shkolnik and Reginald Thomas (family member of CEO) were added as members of the Board of Directors. The total members of the Board of Directors after this addition is four. In accordance with agreements with the Company for his services as a director, Mr. Shkolnik is to receive $25,000 per quarter and 5,000,000 shares of restricted common stock valued at approximately $692,500 vesting quarterly over twenty-four months. The quarterly cash payments of $25,000 will be paid in unrestricted common shares if the Company has not been funded adequately to make such payments. Mr. Thomas is to receive $10,000 per quarter and 1,000,000 shares of restricted common stock valued at approximately $120,000 vesting quarterly over twenty-four months. The quarterly payment of $10,000 may be suspended by the Company if the Company has not been adequately funded. As of March 31, 2019, $62,500 and $25,000 has been accrued in the balance sheet for Mr. Shkolnik and Mr. Thomas, respectively.

~~Stock Options~~

Options Outstanding Vested Vesting Period Exercise Price Outstanding and Exercisable Expiration Date
December 31, 2017 93,120 93,120 100% at issue $0.05 to $0.22 12-31-19
Granted 3,000,000 — 12 to 18 months $ 0.10 2-28-20 to 3-20-21
December 31, 2018 3,093,120 1,954,230 $0.05 to $0.22 12-31-19 to 3-20-21
Granted —
March 31, 2019 3,093,120 2,176,453 $0.05 to $0.22 12-31-19 to 3-20-21

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Stock options to purchase approximately 3,093,120 shares of common stock of the Company are outstanding as of March 31, 2019 related to debt issuances (see Note 5) at prices ranging from $0.05 to $0.22 per share.

In addition, the company granted through consulting arrangements primarily for legal work and general business support that included the issuance of stock options to purchase 3,000,000 options to purchase common shares at $0.10 per share, 1,000,000 of which is fully vested and 2,000,000 which will vest over 18 months from date of grant. All these stock options have an exercise period of 24 to 36 months. The Black-Scholes options pricing model was used to value the stock options. The inputs included the following:

~~(1)~~	~~Dividend yield of 0%~~
~~(2)~~	~~expected annual volatility of 307% - 311%~~
~~(3)~~	~~discount rate of 2.2% to 2.3%~~
~~(4)~~	~~expected life of 2 years, and~~
~~(5)~~	~~estimated fair value of the Company’s common $0.125 to $0.155 per share.~~

During the three months ended March 31, 2019, the Company recorded $72,716 as stock-based compensation related to the stock options and the related service period for which services have been rendered. For future periods, the remaining value of the stock options totaling approximately $67,953 will be amortized into the statement of operations consistent with the period for which the services will be rendered, which is two years for the legal agreement and one year for the general consulting agreement.

~~Common Stock Reservations~~

~~The Company has reserved 1,000,000 shares of Common Stock of the Company for the purpose of raising funds to be used to pay off debt described in Note 5.~~

~~We have reserved 20,000,000 shares of Common Stock of the Company to grant to certain employee and consultants as consideration for services rendered and that will be rendered to the Company.~~

~~Warrants~~

As part of the Auctus Convertible Promissory Note issuance, the Company issued to, Auctus 2,000,000 warrants to purchase 2,000,000 common shares of the Company at 70% of the current market price. Current market price means the average of the three lowest trading prices for our common stock during the ten-trading day period ending on the latest complete trading day prior to the date of the respective exercise notice. However, if a required registration statement, registering the underlying shares of the Auctus Convertible Promissory Note, is declared effective on or before June 11, 2019, then, while such Registration Statement is effective, the current market price shall mean the lowest volume weighted average price for our common stock during the ten-trading day period ending on the last complete trading day prior to the conversion date.

~~The warrants issued to Auctus were considered derivative liabilities. See Note 5.~~

~~NOTE 7 - COMMITMENTS AND CONTINGENCIES~~

~~Accounts Payable and Accrued Expenses as of March 31, 2019 and December 31, 2018:~~

2019 2018
Accounts payable:
Related parties (1) $ 881,861 $ 741,577
General operating 3,250,506 3,036,601
Credit card balances 253,374 246,949
Accrued interest on debt 352,771 306,318
Other accrued expenses; 33,066 33,063
Taxes and fees payable 630,357 629,462
Total $ 5,401,935 $ 4,993,970

~~(1)~~

~~Relates to amounts due to management and members of the Board of Directors according to verbal and written agreements that have not been paid as of period end.~~

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~~Financing Leases~~

~~As of March 31, 2019, we do not have any lease agreements that are long term. All lease arrangements expire during 2019, are in default or are month to month.~~

~~Current minimum financing lease payments are as follows as of March 31, 2019:~~

Obligation 2019 In Default Accrued Interest Total
Telecom Equipment Finance (1) $ 449,103 —   156,405 $ 605,508
Telecommunications Equipment (2) —   101,347 33,624 134,971
Production Equipment Lease (3) 2,919 —   —   2,919
Total $ 452,022 101,347 190,029 $ 743,398

~~(1) The Telecom Equipment Lease is with an entity owned and controlled by shareholders of the Company and is due August 31, 2019, as amended.~~

(2) The Telecommunications Equipment Lease requires payments of $3,702 per month and is in default. See discussion below in Other Commitments and Contingencies. In December 2017, the Company learned that the telecommunications equipment lease identified herein for $101,348 was included in a default judgement in a non-jurisdictional state of Pennsylvania for $169,474 from a lawsuit by the lessor. Management is working with the lessor to settle this matter including a proposal for the equipment to be returned to the lessor and then a negotiated amount for any deficiency between the value given for the retired equipment and the $101,348. When concluded, management does not believe the results will be significantly different than the liability of $101,348 and accrued fees and interest of $27,070 recorded.

(3) The Production Equipment Lease, maturing on April 15, 2019, required payments of $2,535 per month and includes imputed interest at 8.5%. The lease was entered into in 2015 for the purchase of equipment in the amount of approximately $120,000.

~~Other Commitments and Contingencies~~

The Company has employment agreements with certain employees of SDM and K Telecom. The agreements are such that SDM and K Telecom, on a standalone basis in each case, must provide sufficient cash flow to financially support the financial obligations within the employment agreements.

In December 2016, a subsidiary’s landlord agreed to terminate a facilities lease for 150,000 restricted shares of Common Stock valued at $43,350 from a capital contribution of an officer of the Company. Subsequent to the agreement, the landlord requested more shares against the Company’s agreement. As such, $63,053 remains in liabilities payable to the landlord and the $43,350 was expensed as rent previously. The matter is still unresolved. Management does not believe any negative resolution will have a material impact on the Company’s consolidated financial statements.

The company has been named in a lawsuit by a former employee who was terminated by management in 2016. The employee was working under an employment agreement but was terminated for breach of the agreement. The former employee is suing for breach of contract and is seeking around $75,000 in back pay and benefits. Management believes it has good and meritorious defenses and does not believe the outcome of the lawsuit will have any material effect on the financial position of the Company.

As of March 31, 2019, the company has collected $338,725 from one customer in excess of amounts due from that customer in accordance with the customer’s understanding of the appropriate billings activity. The customer has filed a written demand for repayment by the Company of amounts owed. Management believes that the customer agreement allows them to keep the amounts under dispute. Given the dispute, the Company has reflected the amounts in dispute as a customer liability on the consolidated balance sheet as of March 31, 2018 and does not believe the outcome of the dispute will have a material effect on the financial position of the Company.

~~Table of Contents~~

~~NOTE 8 – RELATED PARTY ACTIVITY~~

The Company entered into a lease for living space which is occupied by Stephen Thomas, Chairman, CEO and President of the Company. Mr. Thomas lives in the space and uses it as his corporate office. The company has paid $0 and $5,949 in rent and utility payments for this space for the three months ended December 31, 2018 and 2017, respectively.

There are shares issuances and capital contributions from an officer of the Company. See Note 6. Also, there are debt and lease balances outstanding due to shareholders and other related parties of the Company of $881,861 and $741,577, respectively, as of March 31, 22019 and December 31, 2018 related to amounts due to management and members of the Board of Directors according to verbal and written agreements that have not been paid as of period end which are included in accounts payable and accrued expenses on the balance sheet. See Notes 5 and 6.

As is mentioned in Note 6, Reginald Thomas was appointed to the Board of Directors of the Company in August 2018. Mr. Thomas is the brother to the CEO Stephen J. Thomas III. According to an agreement with Mr. Reginald Thomas, he is to receive $10,000 per quarter and 1,000,000 shares of restricted common stock valued at approximately $120,000 vesting quarterly over twenty-four months. The quarterly payment of $10,000 may be suspended by the Company if the Company has not been adequately funded.

~~NOTE 9 – GOODWILL AND INTANGIBLE ASSETS~~

~~Goodwill and intangible assets are comprised of the following:~~

~~March 31, 2019~~

Gross carrying amount (1) Accumulated Amortization Net Book Value Useful Life
Customer Base $ 1,947,200 (1,390,382 ) 556,818 3-10
Developed Technology $ 6,105,600 (1,228,671 ) 4,876,929 9
Film Library $ 957,000 (50,750 ) 906,250 11
Trademarks and Tradenames $ 132,000 (6,417 ) 125,583 12
$ 9,141,800 (2,676,220 ) 6,465,580

Goodwill $ 924,361 — 924,361

~~Amortization expense was $206,002 and $199,600 for the three months ended March 31, 2019 and 2018, respectively.~~

~~December 31, 2018~~

Gross carrying amount Accumulated Amortization Net Book Value Useful Life
Customer Base $ 1,947,200 (1,374,933 ) 572,267 3-10
Developed Technology $ 6,105,600 (1,059,070 ) 5,046,530 9
Film Library $ 957,000 (32,700 ) 924,300 11
Trademarks and Tradenames $ 132,000 (3,515 ) 128,485 12
$ 9,141,800 (2,470,218 ) 6,671,582

Goodwill $ 924,361 — 924,361

~~Remaining amortization of the intangible assets as of March 31, 2019 is as follows for the next five years and beyond:~~

2019 2020 2021 2022 2023 Beyond
Customer Base $ 38,006 $ 53,455 $ 53,455 $ 53,455 $ 53,455 $ 304,992
Developed Technology 508,803 678,404 678,404 678,404 678,404 1,654,510
Film Library 68,950 87,000 87,000 87,000 87,000 489,300
Trademarks and Tradenames 8,098 11,000 11,000 11,000 11,000 73,485
Total $ 623,857 $ 829,859 $ 829,859 $ 829,859 $ 829,859 $ 2,522,287

~~Table of Contents~~

~~NOTE 10 – SUBSEQUENT EVENTS~~

~~SpeedConnect Asset Acquisition~~

Effective April 3, 2019, the Company entered into an Asset Purchase Agreement with SpeedConnect, LLC (“SpeedConnect”) to acquire substantially all of the assets of SpeedConnect. On May 7, 2019, the Company closed the transaction underlying the Asset Purchase Agreement with SpeedConnect to acquire substantially all of the assets of SpeedConnect for $2 million and the assumption of certain liabilities. The Asset Purchase Agreement required a deposit of $500,000 made in April and an additional $500,000 payment to close. The additional $500,000 was paid and all other conditions were met to effectuate the sale of substantially all of the assets of SpeedConnect to the Company. As part of the closing, the Company entered into a Promissory Note to pay SpeedConnect $1,000,000 in two equal installments of $500,000 plus applicable interest at 10% per annum with the first installment payable within 30 days of closing and the second installment payable within 60 days of closing (but no later than July 6, 2019). The Company is required to have SpeedConnect’s financial information audited for the last two years.

~~Had the acquisition occurred on January 1, 2018, condensed proforma statement of operations for the three months ended March 31, 2019 and 2018 would be as follows~~

2019 2018
Revenue $ 3,656,169 $ 4,860,635
Cost of Sales 2,789,364 2,759,446
Gross Profit $ 866,805 $ 2,101,189
Operating expenses (1,637,207 ) (2,274,711 )
Derivative expense (1,567,677 )
Interest expense (130,237 ) (30,410 )
Income taxes — —
Net Loss $ (2,468,316 ) $ (203,931 )

~~There are no revenues or expenses related to the SpeedConnect asset acquisition included in the consolidated statement of operations for the three months ended March 31, 2019.~~

~~Subsequent Issuance of Financial Instruments~~

In conjunction with the close of the SpeedConnect transaction, the Company entered into an Agreement for the Purchase and Sale of Future Receipts dated May 8, 2019 (“Future Receipts Financing Agreement”). The balance to be purchased and sold is $753,610 for which the Company received $527,000. Under the Future Receipts Financing Agreement, the Company will pay $18,840.25 per week until fully paid which is expected to be in February 2020. The Financing Agreement includes a guaranty by the CEO of the Company, Stephen Thomas.

On April 16, 2019, the Company consummated a Securities Purchase Agreement dated April 12, 2019 with Geneva Roth for the purchase of a $65,000 convertible promissory note (“Geneva Roth Second Convertible Promissory Note”). The Geneva Roth Second Convertible Promissory Note is due April 12, 2020, pays interest at the rate of 12% per annum and gives the holder the right from time to time, and at any time during the period beginning 180 days from the origination date to the maturity date or date of default to convert all or any part of the outstanding balance into common stock of the Company limited to 4.99% of the outstanding common stock of the Company. The conversion price is 61% multiplied by the average of the two lowest trading prices for the common stock during the previous 20 trading days prior to the applicable conversion date. The Geneva Roth Second Convertible Promissory Note may be prepaid in whole or in part of the outstanding balance at 125% to 140% up to 180 days from origination.

~~Table of Contents~~

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

~~Forward-Looking Statements and Associated Risks.~~

This form 10-Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate, or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.

Based on our financial history since inception, our auditor has expressed substantial doubt as to our ability to continue as a going concern. As reflected in the accompanying financial statements, as of March 31, 2019, we had an accumulated deficit totaling $21,784,274. This raises substantial doubts about our ability to continue as a going concern.

~~Results of Operations~~

~~For the Three Months Ended March 31, 2019 Compared to the Three Month Ended March 31, 2018~~

During the three months ended March 31, 2019, we recognized total revenues of $161,476 compared to the prior period of $250,218. We incurred decreases in revenues for our telecommunications services, equipment sales and services performed by SDM during 2019 compared to the prior period of $55,035, $22,967 and $58,062, respectively. The decreases in large part are from the inability of the Company to properly advertise and market its products from the lack of financing and profitable operations. These decreases were offset by an increase from the addition of Blue Collar’s revenues of $61,750 which acquisition occurred September 1, 2018.

Gross profit (loss) for the three months ended March 31, 2019 was $(100,892) compared to $(14,077) for the prior period. The decrease of $86,815 pertained primarily to decreases in telecommunications revenue, equipment sales and services performed by SDM. In addition, Blue Collar added loss to gross profit from the timing of several projects that they are doing.

During the three months ended March 31, 2019, we recognized $1,209,801 in expenses compared to $993,094 for the prior period. The increase of $216,707 was in large part attributable to the acquisition of Blue Collar.

Interest expense increased for the three months ended March 31, 2019 compared to the prior period by $99,827. Increases from higher interest rates and increased debt was the primary reason for the increase.

During the three months ended March 31, 2019, we recognized a net loss of $2,981,346 compared to $1,037,581 for the prior period. The increase in the loss of $1,943,765 was primarily a result of the derivative expense of $1,540,416 recorded from the fair value valuation of financial instruments entered into and from the increase in expenses from the addition of Blue Collar and the net reduction of gross profits from the decrease in revenues.

~~LIQUIDITY AND CAPITAL RESOURCES~~

Cash flows generated from operating activities were not enough to support all working capital requirements for the three months ended March 31, 2019 and 2018. Financing activities described below, have helped with working capital and other capital requirements. We incurred $2,981,346 and $1,037,581, respectively, in losses, and we used $369,477 and $250,097, respectively, in cash for operations for the three months ended March 31, 2019 and 2018. Cash flows from financing activities were $848,661 and $235,635 for the same periods. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Subsequent to March 31, 2019, convertible promissory note was extended to the Company in the amount of $65,000 into convertible debt. In addition, the Company secured $527,000 in the sale of future receipts.

~~Table of Contents~~

~~Item~~NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment and related accumulated depreciation as of September 30, 2023 and December 31, 2022 are as follows:

2023

2022

Property and equipment:

Land

$ 1,226,000

—

Office furniture and equipment

77,859

77,859

Total land, property and equipment

1,303,859

77,859

Accumulated depreciation

(77,859 )

(75,404 )
Property and equipment, net

$ 1,226,000

$ 2,455

Depreciation expense was $2,454 and $448,943 for the nine months ended September 30, 2023 and 2022, respectively.
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NOTE 5 – DEBT FINANCING ARRANGEMENTS
Financing arrangements as of September 30, 2023 and December 31, 2022 are as follows:

2023

2022

Loans and advances (1)

$ 470,092

$ 470,092

Convertible notes payable (2)

3,424,556

3,054,869

Factoring agreements (3)

532,467

577,177

Debt – third party

$ 4,427,115

$ 4,102,138

Line of credit, related party secured by assets (4)

$ 2,742,929

$ 2,742,929

Debt– other related party, net of discounts (5)

2,015,500

2,015,500

Convertible debt – related party (6)

553,100

553,100

Shareholder debt (7)

144,081

4,150

Debt – related party

$ 5,455,610

$ 5,315,679

Total financing arrangements

$ 9,882,725

$ 9,417,817

Less current portion:

Loans, advances and factoring agreements – third party

$ (1,002,559 )

$ (902,809 )
Convertible notes payable third party

(3,424,556 )

(3,054,869 )
Debt – related party, net of discount

(4,902,510 )

(4,762,579 )
Convertible notes payable– related party

(553,100 )

(553,100 )

(9,882,725 )

(9,273,357 )
Total long term debt

$ —

$ 144,460

__________
(1)
The terms of $40,000 of this balance are similar to that of the Line of Credit which bears interest at adjustable rates, 1 month LIBOR plus 2%, 7.44% as of September 30, 2022, and is secured by assets of the Company, was due August 31, 2020, as amended.
$360,000 is a bank loan dated May 28, 2019 which bears interest at Prime plus 6%, 14.0% as of September 30, 2023 and, as amended, is interest only through October 1, 2023 at which time the monthly payment of principal and interest of $40,000 is required until the due date of May 1, 2024. The bank loan is collateralized by assets of the Company. This loan may be considered in default as the Company did not make its payment of principal and interest on October 1, 2023. The Company is in discussions with the bank to restructure this bank loan.
On June 4, 2019, the Company consummated a Securities Purchase Agreement with Odyssey Capital Funding, LLC. (“Odyssey”) for the purchase of a $525,000 Convertible Promissory Note (“Odyssey Convertible Promissory Note”). The Odyssey Convertible Promissory Note was due June 3, 2020, paid interest at the rate of 12% (24% default) per annum and gave the holder the right from time to time, and at any time during the period beginning six months from the issuance date to convert all of the outstanding balance into common stock of the Company limited to 4.99% of the outstanding common stock of the Company. The conversion price was 55% multiplied by the average of the two lowest trading prices for the common stock during the previous 20 trading days prior to the applicable conversion date. The Odyssey Convertible Promissory Note could be prepaid in full at 125% to 145% up to 180 days from origination. Through June 3, 2020, Odyssey converted $49,150 of principal and $4,116 of accrued interest into 52,961,921 shares of common stock of the Company. On June 8, 2020, Odyssey agreed to convert the remaining principal and accrued interest balance on the Odyssey Convertible Promissory Note of $475,850 and $135,000, respectively, to a term loan payable in six months in the form of a balloon payment, earlier if the Company has a funding event, bearing simple interest on the unpaid balance of 0% for the first three months and then 10% per annum thereafter.   The loan was in default as of March 31, 2022. During April 2022, Odyssey accepted to exchange all of its outstanding principal and interest as of March 31, 2022 of $685,682 into 137,136 of TPT Series E Preferred Shares.
Effective September 30, 2020, we entered into a Purchase Agreement by which we agreed to purchase the 500,000 outstanding Series A Preferred shares of TPT Strategic, Inc., our majority owned subsidiary, in an agreed amount of $350,000 in cash or common stock, if not paid in cash, at the five day average price preceding the date of the request for effectiveness after the filing of a registration statement on Form S-1. This was modified December 28 and 29, 2020, to provide for registration of 7,500,000 common shares for resale at the market price. Any balance due on notes was to be calculated after an accounting for the net sales proceeds from sale of the stock by February 28, 2021 and was to be paid in cash or stock thereafter. The Series A Preferred shares were purchased from the Michael A. Littman, Atty. Defined Benefit Plan.     The $350,000 is recorded as a Note Payable. During the year ended December 31, 2021, it was determined that there was a deficiency of approximately $185,000 from net sales proceeds which is accounted for in accounts payable.
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The Company purchased all of the 500,000 Series A Super Majority Voting Preferred Shares of ASHI for a convertible note payable of $500,000 due in 180 days which bears interest at 6.0% per annum and is convertible to shares of the Company’s common stock at 85% of the volume weighted average price for the preceding 5 market trading days. The ASHI convertible note payable was valued at $508,553 upon acquisition.
The remaining balances generally bear interest at approximately 10%, have maturity dates that are due on demand or are past due, are unsecured and are classified as current in the balance sheets.
(2) During 2017, the Company issued convertible promissory notes in the amount of $67,000 (comprised of $62,000 from two related parties and $5,000 from a former officer of CDH), all which were due May 1, 2020 and bear 6% annual interest (12% default interest rate). The convertible promissory notes are convertible, as amended, at $0.25 per share. These convertible promissory notes were not repaid May 1, 2020 and are delinquent. The Company is working to renegotiate these promissory notes.
On June 11, 2019, the Company consummated a Securities Purchase Agreement with EMA Financial, LLC. (“EMA”) for the purchase of a $250,000 Convertible Promissory Note (“EMA Convertible Promissory Note”). The EMA Convertible Promissory Note is due June 11, 2020, pays interest at the rate of 12% (principal amount increases 200% and interest rate increases to 24% under default) per annum and gives the holder the right from time to time to convert all of the outstanding balance into common stock of the Company limited to 4.99% of the outstanding common stock of the Company. The conversion price is 55% multiplied by the lowest traded price for the common stock during the previous 25 trading days prior to the applicable conversion date. The EMA Convertible Promissory Note may be prepaid in full at 135% to 150% up to 180 days from origination. Prior to December 31, 2020, EMA converted $35,366 of principal into 147,700,000 shares of common stock of the Company. As such, the principal and accrued interest balances owning to EMA at September 30, 2023 is $503,771 and $507,487, respectively. 1,000,000 warrants were issued in conjunction with the issuance of this debt. See Note 8. See below regarding derivative securities in default.
On October 6, 2021, TPT Global Tech, Inc. and FirstFire Global Opportunities Fund, LLC. entered into a convertible promissory note totaling $1,087,000 and a securities purchase agreement (“FirstFire Note”). The FirstFire Note has an original issue discount of 8% and bears interest at 10%, with a default rate of 24%, and is convertible into shares of the Company’s common stock. There is a mandatory conversion in the event a Nasdaq Listing prior to nine months from funding for which the Holder’s principal and interest balances will be converted at a price equal to 25% discount to the opening price on the first day the Company trades on Nasdaq. There is also a voluntary conversion of all principal and accrued interest at the discretion of the Holder at the lower of (1) 75% of the two lowest trade prices during the fifteen consecutive trading day period ending on the trading day immediately prior to the applicable conversion date or (2) discount to market based on subsequent financings with other investors. Subsequent debt issuances have lowered this price to $0.025 per share, adjusted to $.0075 during the three months ended March 31, 2022. The Holder was given registration rights. The FirstFire Note may be prepaid in whole or in part of the outstanding balances at 115% prior to maturity. 225,000,000 common shares of the Company have been reserved with the transfer agent for possible conversion and exercise of warrants. Warrants to purchase 55,000,000 shares of common stock at 110% of the opening price on the first day the Company trades on the Nasdaq exchange were issued to the Holder. Through September 30, 2023, the Company has exercised its right to convert $558,660 of principal into 377,000,000 shares of common shares leaving a principal and accrued interest balance at September 30, 2023 of $800,090 in principal and $618,560 in accrued interest. See below regarding derivative securities in default.
On October 13, 2021, TPT Global Tech, Inc. and Cavalry Investment Fund LP entered into a convertible promissory note totaling $271,250 and a securities purchase agreement (“Cavalry Investment Note”). The Cavalry Investment Note has an original issue discount of 8% and bears interest at 10%, with a default rate of 24%, and is convertible into shares of the Company’s common stock. There is a mandatory conversion in the event a Nasdaq Listing prior to nine months from funding for which the Holder’s principal and interest balances will be converted at a price equal to 25% discount to the opening price on the first day the Company trades on Nasdaq. There is also a voluntary conversion of all principal and accrued interest at the discretion of the Holder at the lower of (1) 75% of the two lowest trade prices during the fifteen consecutive trading day period ending on the trading day immediately prior to the applicable conversion date or (2) discount to market based on subsequent financings with other investors. Subsequent debt issuances have lowered this price to $0.025 per share, adjusted to $.0075. The Holder was given registration rights. The Cavalry Investment Note may be prepaid in whole or in part of the outstanding balances at 115% prior to maturity. 56,250,000 common shares of the Company have been reserved with the transfer agent for possible conversion and exercise of warrants. Warrants to purchase 13,750,000 shares of common stock at 110% of the opening price on the first day the Company trades on the Nasdaq exchange were issued to the Holder. Through September 30, 2023, the Company has exercised its right to convert $67,000 of principal into 55,833,334 shares of common stock leaving a principal and accrued interest balance at September 30, 2023 of $272,688 and $121,234, respectively. See below regarding derivative securities in default.
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On October 13, 2021, TPT Global Tech, Inc. and Cavalry Fund I, LP entered into a convertible promissory note totaling $815,250 and a securities purchase agreement (“Cavalry Fund I Note”). The Cavalry Fund I Note has an original issue discount of 8% and bears interest at 10%, with a default rate of 24%, and is convertible into shares of the Company’s common stock. There is a mandatory conversion in the event a Nasdaq Listing prior to nine months from funding for which the Holder’s principal and interest balances will be converted at a price equal to 25% discount to the opening price on the first day the Company trades on Nasdaq. There is also a voluntary conversion of all principal and accrued interest at the discretion of the Holder at the lower of (1) 75% of the two lowest trade prices during the fifteen consecutive trading day period ending on the trading day immediately prior to the applicable conversion date or (2) discount to market based on subsequent financings with other investors. Subsequent debt issuances have lowered this price to $0.0075 per share. The Holder was given registration rights. The Cavalry Fund I Note may be prepaid in whole or in part of the outstanding balances at 115% prior to maturity. 168,750,000 common shares of the Company have been reserved with the transfer agent for possible conversion and exercise of warrants. Warrants to purchase 41,250,000 shares of common stock at $110% of the opening price on the first day the Company trades on the Nasdaq exchange were issued to the Holder. Through September 30, 2023, the Company exercised its right to convert $192,230 of principal and penalties into 168,750,000 shares of common stock leaving a principal and accrued interest balance at September 30, 2023 of $826,833 and $364,810, respectively. See below regarding derivative securities in default.
On January 31, 2022, TPT Global Tech, Inc. and Blue Lake Partners, LLC entered into a convertible promissory note totaling $271,750 and a securities purchase agreement (“Blue Lake Note”). The Blue Lake Note is due twelve months from funding, has an original issue discount of 8% and interest rate at 10% per annum (default, as defined, at 16%). There is an optional conversion in the event a Nasdaq Listing prior to nine months from funding for which the Holder’s principal and interest balances will be converted at a price equal to 25% discount to the opening price on the first day the Company trades on Nasdaq. There is also a voluntary conversion of all principal prepaid in whole or in part of the outstanding balances at 100% prior to maturity unless the Holder chose to convert their balances into common stock which they have three days to do so. 73,372,499 common shares of the Company have been reserved with the transfer agent for possible conversion and exercise of warrants. Warrants, expiring five years from issuance, were issued to exercise up to 9,058,333 warrants to purchase 9,058,333 common shares at $0.015, provided, however, that if the Company consummates an Uplist Offering on or before July 6, 2022 then the exercise price shall equal 110% of the offering price at which the Uplist Offering is made. The Company and the holder executed the securities purchase agreement in accordance with and in reliance upon the exemption from securities registration for offers and sales to accredited investors afforded, inter alia, by Rule 506 under Regulation D as promulgated by the SEC under the 1933 Act, and/or Section 4(a)(2) of the 1933 Act. Through September 30, 2023, Blue Lake exercised its right to convert $360,447 of principal, interest and penalties into 48,059,600 of common shares leaving a balance of $8,165 in principal and $0 of accrued interest as of September 30, 2023. See below regarding derivative securities in default.
On June 13, 2022, TPT Global Tech, Inc. and 1800 Diagonal Lending LLC entered into a $200,760 promissory note agreement (1800 Diagonal Note”). The 1800 Diagonal Note has an original issue discount of 12%, or $21,510, and bears interest at 22%, and is convertible into shares of the Company’s common stock only under default, as defined. 10 payments of $22,485 beginning on July 30, 2022 are to be made each month totaling $224,851. At any time following default, as defined, conversion rights exist at a discount rate of 25% of the lowest trading price for the Company’s common stock during the previous 10 trading days prior to conversion. 194,676,363 common shares of the Company have been reserved with the transfer agent for possible conversion under a default. Through September 30, 2023, 1800 Diagonal exercised its right to convert $236,094 of principal and interest into 190,987,049 of common shares leaving a balance of $0 in principal and accrued interest as of September 30, 2023. See below regarding derivative securities in default.
On February 8, 2023, TPT Global Tech, Inc. and 1800 Diagonal Lending LLC entered into a $81,675 promissory note agreement (1800 Diagonal Note #2”). The 1800 Diagonal Note #2 has an original issue discount of 9%, or $7,425, and bears interest at 9%, 22% upon default, and is convertible into shares of the Company’s common stock only under default, as defined. Total of $81,675 plus and accrued interest is due February 8, 2024. A penalty on the principal balance has been accrued of $40,838 because of defaults of covenants on other financing arrangements. At any time following default, as defined, conversion rights exist at a discount rate of 25% of the lowest trading price for the Company’s common stock during the previous 10 trading days prior to conversion. 150,000,000 common shares of the Company have been reserved with the transfer agent for possible conversion under a default. Through September 30, 2023, 1800 Diagonal Lending LLC has exercised its right to convert $17,000 in principal or interest into 25,000,000 common shares leaving a balance of $105,513 in principal and $17,827 in accrued interest as of September 30, 2023. See below regarding derivative securities in default.
On February 9, 2023, TPT Global Tech, Inc. and FirstFire Global Opportunities Fund, LLC (“First Fire”) entered into a $330,000 promissory note agreement (Firstfire Note #2”). The FirstFire Note #2 has an original issue discount of 9%, or $30,000, and bears interest at 10%, 20% upon default, and is convertible into shares of the Company’s common stock only under default, as defined. $33,000 of interest is considered earned at the issue date. Total of $330,000 plus accrued interest is due February 8, 2024. A penalty on the principal balance has been accrued of $165,000 because of defaults of covenants on other financing arrangements. Conversion rights exist that at any time after issuance, the FirstFire Note #2 can be exchanged for shares of common stock at $.0012 per share. 350,000,000 common shares of the Company’s common stock have been reserved with the transfer agent for possible conversion. Through September 30, 2023, First Fire has exercised its right to convert $96,000 of principal or interest into 80,000,000 of common shares leaving a balance of $495,000 in principal and $74,250 in accrued interest as of September 30, 2023.
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The Company entered into a convertible note payable March 27, 2023 with Michael Littman, Atty Defined Benefit Plan for the acquisition of 500,000 Series A Super Majority Voting Preferred Shares of ASHI due in 180 days, bearing interest at 6.0% per annum (12% default rate) and is convertible into shares of the Company’s common stock at 85% of the volume weighted average price for the preceding five market trading days.
The Company is in default under all of its derivative financial instruments and has accounted for these defaults under each agreements default provisions. In February 2022, the Company defaulted on its FirstFire, Cavalry Investment, and Cavalry Fund I Notes for failure to uplist within one hundred twenty (120) days from the date of the Notes. Talos, Blue Lake and 1800 Diagonal are in default from cross default provisions. In total, $916,895 was recorded as interest expense representing additional principal and interest because of default. Notice of default was received from EMA for not reserving enough shares for conversion and for not having filed a Form S-1 Registration Statement with the Securities and Exchange Commission. It was the intent of the Company to pay back all derivative securities prior to the due dates but that has not occurred in case of EMA. As such, the Company is currently in negotiations with EMA and relative to extending the due date and changing terms on the Note. The Company has been named in a lawsuit by EMA for failing to comply with a Securities Purchase Agreement entered into in June 2019. See Note 9 Other Commitments and Contingencies.
(3) On April 1, 2022, the Company entered into a Future Receivable Sale and Purchase Agreement (“Mr. Advance Agreement”) with Mr. Advance LLC (”Mr. Advance”). The balance to be purchased and sold is $411,000 for which the Company received $270,715, net of fees. Under the Mr. Advance Agreement, the Company is to pay $8,935 per week for 46 weeks at an effective interest rate of approximately 36% annually.   The Company is in default with this Agreement for non-payment and is working to restructure its terms. The balance outstanding as of September 30, 2023 is $214,484, net of discounts and payments made.
On April 1, 2022, the Company entered into a Future Receipts Sale and Purchase Agreement (“CLOUDFUND Agreement”) with CLOUDFUND LLC (”CLOUDFUND”). The balance to be purchased and sold is $411,000 for which the Company received $272,954, net of fees. Under the CLOUDFUND Agreement, the Company is to pay $8,935 per week for 46 weeks at an effective interest rate of approximately 36% annually. The Company is in default with this Agreement for non-payment and is working to restructure its terms. The balance outstanding as of September 30, 2023 is $244,670, net of discounts.
On April 27, 2022, the Company entered into a Future Receivables Sale and Purchase Agreement (“Fox Capital Agreement”) with Fox Capital Group, Inc. (”Fox Capital”). The balance to be purchased and sold is $138,000 for which the Company received $90,000, net of fees. Under the Fox Capital Agreement, the Company is to pay $4,313 per week for 32 weeks at an effective interest rate of approximately 36% annually. The Company is in default with this Agreement for non-payment and is working to restructure its terms. The balance outstanding as of September 30, 2023 is $73,313, net of discounts.
(4) The Line of Credit originated with a bank and was secured by the personal assets of certain shareholders of Copperhead Digital. During 2016, the Line of Credit was assigned to the Copperhead Digital shareholders, who subsequent to the Copperhead Digital acquisition by TPTG became shareholders of TPTG, and the secured personal assets were used to pay off the bank. The Line of Credit bears a variable interest rate based on the 1 Month LIBOR plus 2.0%, 7.44% as of September 30, 2023, is payable monthly, and is secured by the assets of the Company. 1,000,000 shares of Common Stock of the Company have been reserved internally to accomplish raising the funds to pay off the Line of Credit. Since assignment of the Line of Credit to certain shareholders, which balance on the date of assignment was $2,597,790, those shareholders have loaned the Company $445,600 under the similar terms and conditions as the line of credit but most of which were also given stock options totaling $85,120 which expired as of December 31, 2019 (see Note 8) and was due, as amended, August 31, 2020. $300,461 of the principal balance was exchanged for 60,092 shares of Series E Preferred Stock in April 2022. See Note 8. The Company is in negotiations to refinance this Line of Credit.
During the years ended December 31, 2019 and 2018, those same shareholders and one other have loaned the Company money in the form of convertible loans of $136,400 and $537,200, respectively, described in (2) and (6).
(5) $350,000 represents cash due to the prior owners of the technology acquired in December 2016 from the owner of the Lion Phone which is due to be paid as agreed by the Company and the former owners of the Lion Phone technology and has not been determined.
$4,000,000 represents a promissory note included as part of the consideration of VuMe, formerly ViewMe Live technology acquired in 2017, later agreed to as being due and payable in full, with no interest with $2,000,000 from debt proceeds and the remainder from proceeds from a second Company public offering.
$1,000,000 represents a promissory note which was entered into on May 6, 2020 for the acquisition of Media Live One Platform from Steve and Yuanbing Caudle for the further development of software. This was expensed as research and development in the year ended December 31, 2020. This $1,000,000 promissory note is non-interest bearing, due after funding has been received by the Company from its various investors and other sources. Mr. Caudle is a principal with the Company’s VuMe technology.
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Both the $4,000,000 and $1,000,000 promissory notes related to the VuMe technology and Media Live One Platform were exchanged through a Software Acquisition Agreement dated as of March 25, 2022 for shares of the Company’s Series E Preferred Stock. See Note 8. In this same agreement, the Company agreed to pay Mr. and Mrs. Caudle $1,750,000 for additional developed software that will be used with the VuMe technology which was expensed as research and development during the year ended December 31, 2022. $200,000 had been paid and was accounted for as a deposit as of December 31, 2021. Subsequently, this was used against the purchase price and the remainder was setup as a note payable. $550,000 to be paid from first proceeds raised by the Company and $1,000,000 as agreed by the Company and Mr. and Mrs. Caudle.
$115,500 represents part of a $500,000 Note Payable related to the acquisition of 75% of Air Fitness, payable six months from the date of the note or as agreed by the Company out of future capital raising efforts. During 2022, $384,500 of the Note Payable and $49,985 of accrued interest were exchanged for 104,961 Series E Preferred Shares.
(6) During 2018, the Company issued convertible promissory notes in the amount of $537,200 to related parties and $10,000 to a non-related party which bear interest at 6% (11% default interest rate), are due 30 months from issuance and are convertible into Series C Preferred Stock at $1.00 per share. $106,000 of these notes were exchanged for 21,200 shares of Series E Preferred Stock in April 2022 and $19,400 were repaid prior to December 31, 2021.
(7) The shareholder debt represents funds given to TPTG or subsidiaries by officers and managers of the Company as working capital. There are no written terms of repayment or interest that is being accrued to these amounts and they will only be paid back, according to management, if cash flows support it. They are classified as current in the balance sheets.
See Lease financing arrangement in Note 8.
NOTE 6 -DERIVATIVE FINANCIAL INSTRUMENTS
The Company previously adopted the provisions of ASC subtopic 825-10, Financial Instruments (“ASC 825-10”). ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The derivative liability as of September 30, 2023, in the amount of $4,203,788 has a level 3 classification under ASC 825-10.
The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2023.

Debt Derivative
Liabilities

Balance, December 31, 2021

$ 4,042,910

Change in derivative liabilities from new notes payable

622,518

Change in derivative liabilities from conversion of notes payable

(493,101 )
Change in fair value of derivative liabilities at end of period – derivative expense

650,071

Balance, December 31, 2022

$ 4,822,398

Change in derivative liabilities from new notes payable

477,414

Change in derivative liabilities from conversion of notes payable

(728,143 )
Change in fair value of derivative liabilities at end of period – derivative expense (gain)

(367,881 )
Balance, September 30, 2023

$ 4,203,788

Convertible notes payable and warrant derivatives – The Company issued convertible promissory notes which are convertible into common stock, at holders’ option, at a discount to the market price of the Company’s common stock. The Company has identified the embedded derivatives related to these notes relating to certain anti-dilutive (reset) provisions. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date of debenture and to fair value as of each subsequent reporting date.
As of September 30, 2023, the Company marked to market the fair value of the debt derivatives and determined a fair value of $42,037,882 ($4,093,369 from the convertible notes and $110,419 from warrants) in Note 5 (2) above. The Company recorded an expense from change in fair value of debt derivatives of $367,881 for the nine months ended September 30, 2023. The fair value of the embedded derivatives was determined using Monte Carlo simulation method based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 133.5% to 191.5%, (3) weighted average risk-free interest rate of 4.80% to 5.50% (4) expected life of 0.50 to 3.58 years, and (5) the quoted market price of $0.001 for the Company’s common stock.
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NOTE 7 - STOCKHOLDERS' DEFICIT
Preferred Stock
As of September 30, 2023, we had authorized 100,000,000 shares of Preferred Stock, of which certain shares had been designated as Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock.
All Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
Series A Convertible Preferred Stock
The Company designated 1,000,000 shares of Preferred Stock as Series A Preferred Stock. In February 2015, the Board of Directors authorized the issuance of 1,000,000 shares of Series A Preferred Stock to Stephen Thomas, Chairman, CEO and President of the Company, valued at $3,117,000 for compensation expense. These shares are outstanding as of September 30, 2023.
The Series A Preferred Stock has a par value of $.001, is redeemable at the Company’s option at $100 per share, is senior to any other class or series of outstanding Preferred Stock or Common Stock and does not bear dividends. The Series A Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined and amended, of an amount equal to amounts payable owing, including contingency amounts where Holders of the Series A have personally guaranteed obligations of the Company.
As of September 30, 2023, by amendment, holders of the Series A Preferred Stock shall, collectively have the right to convert all of their Series A Preferred Stock when conversion is elected into that number of shares of Common Stock of the Company, as amended and restated July 5, 2022 by the Board of Directors and a majority of the outstanding voting shares of the Company, determined by the following formula: 60% of the common shares computed to include all projected conversions of all convertible debt and any other classes of Preferred Stock as if the conversions had taken place at the stated conversion price per share (i.e. for the avoidance of doubt – “fully diluted” as if such conversion had occurred prior to the Series A conversion.) The Company determined that due to the significance of the amendment, it should be accounted for as an extinguishment and fair valued the amended Series A Preferred Stock at $42,983,742, creating a deemed dividend of $39,866,742. The valuation of the amended Series A Preferred Stock was done by a qualified independent third party.
The record Holders of the Series A Preferred Stock shall have the right to vote as if converted prior to the vote to an amount of shares equal to 60% of the common shares computed to include all projected conversions of all convertible debt and any other classes of Preferred Stock as if the conversions had taken place at the stated conversion price per share (i.e. for the avoidance of doubt – “fully diluted” as if such conversion had occurred prior to the Series A conversion) on any matter with holders of Common Stock for any vote required to approve any action, which Florida law provides may or must be approved by vote or consent of the holders of other series of voting shares and the holders of Common Stock or the holders of other securities entitled to vote, if any.
The Series A Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
Series B Convertible Preferred Stock
In February 2015, the Company designated 3,000,000 shares of Preferred Stock as Series B Convertible Preferred Stock.
The Series B Preferred Stock was designated in February 2015, has a par value of $.001, is not redeemable, is senior to any other class or series of outstanding Preferred Stock, except the Series A Preferred Stock, or Common Stock and does not bear dividends. The Series B Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined and currently the Series A Preferred Stock, and of an amount equal to $2.00 per share. Holders of the Series B Preferred Stock have a right to convert all or any part of the Series B Preferred Shares and will receive and equal number of common shares at the conversion price of $2.00 per share. The Series B Preferred Stockholders have a right to vote on any matter with holders of Common Stock and shall have a number of votes equal to that number of Common Shares on a one-to-one basis.
There are 2,588,693 shares of Series B Convertible Preferred Stock outstanding as of September 30, 2023.
The Series B Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
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Series C Convertible Preferred Stock
In May 2018, the Company designated 3,000,000 shares of Preferred Stock as Series C Convertible Preferred Stock.
The Series C Preferred Stock has a par value of $.001, is not redeemable, is senior to any other class or series of outstanding Preferred Stock, except the Series A and Series B Preferred Stock, or Common Stock and does not bear dividends. The Series C Preferred Stock has a liquidation preference immediately after any Senior Securities, as defined and currently the Series A and B Preferred Stock, and of an amount equal to $2.00 per share. Holders of the Series C Preferred Stock have a right to convert all or any part of the Series C Preferred Shares and will receive an equal number of common shares at the conversion price of $0.15 per share. The Series C Preferred Stockholders have a right to vote on any matter with holders of Common Stock and shall have a number of votes equal to that number of Common Shares on a one-to-one basis.
There are no shares of Series C Convertible Preferred Stock outstanding as of September 30, 2023. There are approximately $553,100 in convertible notes payable convertible into Series C Convertible Preferred Stock which compromise some of the common stock equivalents calculated in Note 1.
The Series C Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
Series D Convertible Preferred Stock
On July 6, 2020, September 15, 2021 and March 20, 2022, the Company amended its Series D Designation from January 14, 2020. These Amendments changed the number of shares to 10,000,000 shares of the authorized 100,000,000 shares of the Company's $0.001 par value preferred stock as the Series D Convertible Preferred Stock ("the Series D Preferred Shares.")
Series D Preferred shares have the following features: (i) 6% Cumulative Annual Dividends payable on the purchase value in cash or common stock of the Company at the discretion of the Board and payment is also at the discretion of the Board, which may decide to cumulate to future years; (ii) Any time after 12 months from issuance an option to convert to common stock at the election of the holder @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. ; (iii) Automatic conversion of the Series D Preferred Stock shall occur without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series D Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00, which shall be post-reverse split as may be necessary for any Exchange listing (iv) Registration Rights – the Company has granted Piggyback Registration Rights for common stock underlying conversion rights in the event it files any other Registration Statement (other than an S-1 that the Company may file for certain conversion common shares for the convertible note financing that was arranged and funded in 2019). Further, the Company will file, and pursue to effectiveness, a Registration Statement or offering statement for common stock underlying the Automatic Conversion event triggered by an exchange listing. (v) Liquidation Rights - $5.00 per share plus any accrued unpaid dividends – subordinate to Series A, B, and C Preferred Stock receiving full liquidation under the terms of such series. The Company has redemption rights for the first year following the Issuance Date to redeem all or part of the principal amount of the Series D Preferred Stock at between 115% and 140%.
As of September 30, 2023, there are 46,649 Series D Preferred shares outstanding.
The Series D Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
Series E Convertible Preferred Stock
On March 20, 2022, the Company amended its Series E Designation from November 10, 2021. As amended, the Company designated 10,000,000 shares of the authorized 100,000,000 shares of the Company's $0.001 par value preferred stock as the Series E Convertible Preferred Stock ("the Series E Preferred Shares").
Series E Preferred shares have the following features: (i) 6% Cumulative Annual Dividends payable on the purchase value in cash or common stock of the Company at the discretion of the Board and payment is also at the discretion of the Board, which may decide to cumulate to future years; (ii) Any time after 12 months from issuance an option to convert to common stock at the election of the holder @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. ; (iii) Automatic conversion of the Series E Preferred Stock shall occur without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series E Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00, which shall be post-reverse split as may be necessary for any Exchange listing (iv) Registration Rights – the Company has granted Piggyback Registration Rights for common stock underlying conversion rights in the event it files any other Registration Statement (other than an S-1 that the Company may file for certain conversion common shares for the convertible note financing that was arranged and funded in 2019). Further, the Company will file, and pursue to effectiveness, a Registration Statement or offering statement for common stock underlying the Automatic Conversion event triggered by an exchange listing. (v) Liquidation Rights - $5.00 per share plus any accrued unpaid dividends – subordinate to Series A, B, C and D Preferred Stock receiving full liquidation under the terms of such series. The Company has redemption rights for the first year following the Issuance Date to redeem all or part of the principal amount of the Series E Preferred Stock at between 115% and 140%.
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As of September 30, 2023, there are 2,243,507 Series E Preferred shares outstanding. 2,043,507 were a result of exchanges of accounts payable, financing arrangements and lease agreements in 2022. 200,000 were as a result of the acquisition of land in 2023. The 200,000 Series E Preferred shares were given a fair value by a third-party valuation of $6.13 per share, for which they were recorded as of September 30, 2023. In the prior year, the valuation of the Series E Shares was $6.53. In this case, the difference between the amount of accounts payable, financing arrangements and lease agreement balances of $10,987,307 or $2,356,794 was recorded as a loss on debt extinguishment for 2022.
The Series E Preferred Stock is classified as mezzanine equity as a result of the Company not having enough authorized common shares to be able to issue common shares upon their conversion.
Common Stock
As of September 30, 2023, we had authorized 4,500,000,000 shares of Common Stock, of which 1,882,579,354 common shares are issued and outstanding.
Common Stock Issued for Conversion of Debt
During the year ended December 31, 2022, the Company issued 333,871,496 common shares valued at $1,439,894 for $1,076,782 of principal, interest, penalties and fees and recorded a loss on extinguishment of $363,112. During the nine months ended September 30, 2023, the Company issued 571,848,487 common shares valued at $917,088 for $655,324 of principal, interest, penalties and fees and recorded a gain on extinguishment of $466,380. In addition, $728,143 of derivative liabilities were eliminated with these conversions.
Common Stock Issued for Services
On August 6, 2023, the Board granted 1,000,000 shares of common stock of the Company to a consultant for his consulting services rendered to the Company. The shares are to be considered fully vested upon grant and represent partial payment for past services rendered. These shares were recorded to expense at $1,100 for the nine months ended September 30, 2023.
On September 8, 2023, the Board of Directors granted 52,830,333 shares of common stock to Edward Cabrera, Eduardo Cabrera and Mawe Capital Management, LLC for a $75,000 fee in relation to raising capital. The shares are to be considered fully vested upon grant. The share numbers have been calculated based on the average 5-day price per share of TPTW common stock of $0.00144 to get 52,830,333 shares. The common shares will have piggyback rights and shall be registered in any filed registration form. If the average closing price during the five prior to Friday, September 30, 2023 is more than 50% of the five days prior to the signing of this agreement, then the cash difference from the $75,000 may be applied to reduce any Network 1 advisory fee (if there are any) for the NASDAQ listing process. These shares were recorded as expense at $85,628 for the nine months ended September 30, 2023.
Subscription Payable
As of September 30, 2023, the Company has recorded $40,435 in stock subscription payable, which equates to the fair value on the date of commitment, of the Company’s commitment to issue the following common shares:
Unissued shares for TPT consulting agreements
3,000,000
Shares receivable under terminated acquisition agreement
(3,096,181 )
Net commitment
(96,181 )
During the year ended December 31, 2021, the Company agreed to a consulting agreement with one of its newest directors, John Wharton, which Agreement was for the issuance of 3,000,000 shares of common stock to vest over two years starting July 30, 2021. These shares were valued at $42,600 and are being expenses at $1,775 per month. As of September 30, 2023, 3,000,000 common shares have vested and $42,600 expensed.
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Effective November 1, 2017, the Company entered into an agreement to acquire Hollywood Rivera, LLC and HRS Mobile LLC (“HRS”). In March 2018, the HRS acquisition was rescinded and 3,096,181 shares of common stock which were issued as consideration are being returned by the recipients. As such, as of September 30, 2023 and 2022 the shares for the HRS transaction are reflected as subscriptions receivable based on their par value.
Warrants Issued with Convertible Promissory Notes
As of September 30, 2023, there were 129,116,666 warrants outstanding that expire in five years or in the years ended December 31, 2024 -2027. As part of the Convertible Promissory Notes payable – third party issuance in Note 5, the Company issued 1,000,000 warrants to purchase 1,000,000 common shares of the Company at 70% of the current market price. Current market price means the average of the three lowest trading prices for our common stock during the ten-trading day period ending on the latest complete trading day prior to the date of the respective exercise notice. However, if a required registration statement, registering the underlying shares of the Convertible Promissory Notes, is declared effective on or before June 11, 2019 to September 11, 2019, then, while such Registration Statement is effective, the current market price shall mean the lowest volume weighted average price for our common stock during the ten-trading day period ending on the last complete trading day prior to the conversion date.
On January 31, 2022, TPT Global Tech, Inc. issued warrants in conjunction with the issuance of Talos and Blue Lake Note Agreements. Warrants to purchase 18,116,666 shares of common stock at $0.015 per share provided, however, that if the Company consummates an uplist offering on or before July 6, 2022 then the exercise price shall be 110% of the offering price at which the uplist offering is made.
The warrants issued under these convertible promissory notes were considered derivative liabilities valued at $110,419 of the total $4,203,788 derivative liabilities as of December 31, 2022. See Note 5.
Common Stock Reservations
The Company has reserved internally 1,000,000 shares of Common Stock of the Company for the purpose of raising funds to be used to pay off debt described in Note 5.
We have reserved 20,000,000 shares of Common Stock of the Company to grant to certain employees and consultants as consideration for services rendered and that will be rendered to the Company.
Agreement to Convert Debt
On July 31, 2023, the Company and Michael Murphy, shareholder and debt holder, entered into a Conversion Shares Purchase Agreement by which Mr. Murphy has agreed to an automatic conversion of his outstanding principal debt, as well as related accrued interest if elected by Mr. Murphy, into shares of the Company’s Series E Preferred Stock or an equity stock that subsequent to the agreement the Company may have issued to any party that has favorable terms to the Series E Preferred Stock, upon the Company’s intended uplist to a major exchange in conjunction with its capital raise through the capital markets. This principal amount is $2,397,329 as of September 30, 2023.
Non-Controlling Interests
QuikLAB Mobile Laboratories
In July and August 2020, the Company formed Quiklab 1 LLC, QuikLAB 2, LLC, QuikLAB 3, LLC and QuikLAB 4, LLC. QuikLAB 4, LLC was subsequently dissolved. It was the intent to use these entities as vehicles into which third parties would invest and participate in owning QuikLAB Mobile Laboratories. As of September 30, 2023, Quiklab 1 LLC, QuikLAB 2, LLC and QuikLAB 3, LLC have received an investment of $470,000, of which Stephen Thomas and Rick Eberhardt, CEO and COO of the Company, have invested $100,000 in QuikLAB 2, LLC. During the year ended December 31, 2021, one investor entered into an agreement at their request, to have their investment returned. $10,000 of this investment was returned with the remaining $60,000 being reclassified to accounts payable in the balance sheet as of September 30, 2023.
The third party investors and Mr. Thomas and Mr. Eberhart, will benefit from owning 20% of QuikLAB Mobile Laboratories specific to their investments. The Company owns the other 80% ownership in the QuickLAB Mobile Laboratories. The net loss attributed to the non-controlling interests from the QuikLAB Mobile Laboratories included in the statement of operations for the nine months ended September 30, 2023 and 2022 and is $12 and $13,925, respectively.
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Other Non-Controlling Interests
TPT Strategic, Air Fitness and TPT Asia are other non-controlling interests in which the Company owns 0%, 75%, and 78%, respectively. There is little activity in any of these entities. The net loss attributed to these non-controlling interests included in the statement of operations for the nine months ended September 30, 2023 and 2022 is $9,376 and $5,380, respectively.
As a result of the Agreement and Plan of Merger among TPT SpeedConnect and Asberry 22 Holdings, net income of 14% or $47,015 was accounting for as a noncontrolling interest in the statement of operations for the nine months ended September 30, 2023.
NOTE 8 - COMMITMENTS AND CONTINGENCIES
Accounts Payable and Accrued Expenses
Accounts payable:

2023

2022

Related parties (1)

$ 1,186,459

$ 831,502

General operating

5,511,334

5,395,422

Accrued interest on debt (2)

2,732,093

2,095,955

Credit card balances

152,217

167,517

Accrued payroll and other expenses

1,574,182

951,022

Taxes and fees payable

642,640

642,640

Total

$ 11,798,925

$ 10,084,058

_______________
(1)
Relates to amounts due to management and members of the Board of Directors according to verbal and written agreements that have not been paid as of period end.
(2)
Portion relating to related parties is $990,494 and $842,340 September 30, 2023 and December 31, 2022, respectively.
Operating lease obligations
The Company adopted Topic 842 on January 1, 2019. The Company elected to adopt this standard using the optional modified retrospective transition method and recognized a cumulative-effect adjustment to the consolidated balance sheet on the date of adoption. Comparative periods have not been restated. With the adoption of Topic 842, the Company’s consolidated balance sheet now contains the following line items: Operating lease right-of-use assets, Current portion of operating lease liabilities and Operating lease liabilities, net of current portion.
As all the existing leases subject to the new lease standard were previously classified as operating leases by the Company, they were similarly classified as operating leases under the new standard. The Company has determined that the identified operating leases did not contain non-lease components and require no further allocation of the total lease cost. Additionally, the agreements in place did not contain information to determine the rate implicit in the leases, so we used our estimated incremental borrowing rate as the discount rate. Our weighted average discount rate is 10.0% and the weighted average lease term of 2.35 years.
We have various non-cancelable lease agreements for certain of our tower locations with original lease periods expiring between 2023 and 2044. Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Certain of the arrangements contain escalating rent payment provisions. An equipment lease described below and leases with an initial term of twelve months have not been recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term.
As of September 30, 2023 and December 31, 2022, operating lease right-of-use assets arising from operating leases were $0 and $0, respectively. During the nine months ended September 30, 2023, cash paid for amounts included for the measurement of lease liabilities was $327,574 and the Company recorded lease expense in the amount of $617,916 in cost of sales.
The Company entered an operating agreement to lease colocation space for 5 years. This operating agreement starts October 1, 2020 for $7,140 per month. In addition, the Company entered into office space for Blue Collar which started April 2021 and runs for 3 years beginning at an average of $4,150 for the first six months, $8,300 for twelve months, $8,549 for the next twelve months and $8,805 for the following twelve months. All other lease agreements for office space are under lease agreements for one year or less.
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The following is a schedule showing the future minimum lease payments under operating leases by years and the present value of the minimum payments as of September 30, 2023.
2023

$ 6,974,583

2024

797,193

2025

497,261

2026

147,486

2027

7,032

Thereafter

66,000

Total operating lease liabilities

8,489,555

Amount representing interest

(348,254 )

8,141,301

Office lease used by CEO
The Company entered into a lease of 12 months or less for living space which is occupied by Stephen Thomas, Chairman, CEO and President of the Company. Mr. Thomas lives in the space and uses it as his corporate office. The Company has paid $15,000 and $15,000 in rent and utility payments for this space for the nine months ended September 30, 2023 and 2022, respectively.
Financing lease obligations
Future minimum lease payments are as follows:
2022

$ 731,830

2023

—

2024

—

2025

—

2026

—

Thereafter

—

Total financing lease liabilities

731,830

Amount representing interest

—

Total future payments (1)

$ 731,830

____________________
(1)
Included is a Telecom Equipment Lease is with an entity owned and controlled by shareholders of the Company and was due August 31, 2020, as amended.
Other Commitments and Contingencies
Employment Agreements
The Company had employment agreements with certain employees of SDM, K Telecom and Air Fitness. The agreements are such that SDM, K Telecom and Air Fitness, on a standalone basis in each case, must provide sufficient cash flow to financially support the financial obligations within the employment agreements. The employment agreements for SDM and Aire Fitness were terminated with the exchange of debt for Series E Preferred Stock. See Note 7.
On May 6, 2020, the Company entered into an agreement to employ Ms. Bing Caudle as Vice President of Product Development of the Media One Live platform for an annual salary of $250,000 for five years, including customary employee benefits. The payment was guaranteed for five years whether or not Ms. Caudle is dismissed with cause. This employment agreement was effectively modified with the Software Acquisition Agreement described in Note 5 such that the Company is required to make payroll payments of $250,000 per year for five years to Ms. Caudle and payroll payments totaling $150,000 over three years to her daughter.
Litigation
We have been named in a lawsuit by EMA Financial, LLC (“EMA”) for failing to comply with a Securities Purchase Agreement entered into in June 2019.   More specifically, EMA claims the Company failed to honor notices of conversion, failed to establish and maintain share reserves, failed to register EMA shares and by failed to assure that EMA shares were Rule 144 eligible within 6 months. EMA has claimed in excess of $7,614,967 in relief. The Company has filed a motion in response for which EMA has filed a motion to dismiss.   The Company does not believe at this time that any negative outcome would result in more than the $1,011,258 it has recorded on its balance sheet as of September 30, 2023.
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We have been named in a lawsuit by a collection law firm on behalf of Pinnacle Towers LLC and Crown Atlantic Company Inc., against TPT Global Tech, Inc. The claim derives from an outstanding debt by incurred by Copperhead Digital. The lawsuit is over unpaid rent that should have been paid by Copperhead Digital but was not paid. The Company believes it has several defenses to this claim and is in the process of communicating with opposing counsel for dismissal of the claims which amount to $386,030 plus interest, costs and attorney fees. The Company has accounted for approximately $600,000 in payables on its consolidated balance sheet as of September 30, 2023 for this subsidiary payable.
We have been named in a lawsuit by a collection law firm on behalf of American Tower and related entities, against TPT Global Tech, Inc. The claim derives from an outstanding debt or unpaid tower lease payments. The Company believes it has several defenses to this claim and is in the process of communicating with opposing counsel for dismissal or negotiation of the claims which amounts to $2,891,886, including payment due for all future tower payments not yet incurred under various tower lease agreements. The Company has accounted for approximately $2,938,347 in payables and operating lease liabilities on its consolidated balance sheet as of September 30, 2023 for this liability. Management does not believe any negative outcome to this lawsuit would amount to more than this.
In total, lawsuits are being threatened or have been put forth by vendors in relation to tower lease payments in accordance with tower lease agreements that were entered into. The claims are currently being investigated or negotiated and the amount in controversy being claimed is approximately $3,827,169, which the Company has accounted for $4,533,770 in its consolidated balance sheet as of September 30, 2023.
We have been named in lawsuits by three merchant debt companies, Mr. Advance, CLOUDFUND and Fox Capital versus TPT SpeedConnect and TPT for non-payment under the debt agreements for which the companies received judgements in the case of Mr. Advance and CLOUDFUND or a filed lawsuit in case of Fox Capital against the TPT SpeedConnect and TPT. The judgements and filed lawsuit in case of Fox Capital totaled $595,105, including legal and other fees for which the Company had $619,531 recorded in Debt Financing Agreements of which $87,065 was remitted to Mr. Advance during the nine months ended September 30, 2023 leaving an accrued balance of $532,466 as of September 30, 2023. We are in negotiations with these companies to restructure payment and work out acceptable terms. Management believes it will not have to pay more than what it has recorded in accounts payable.
We have been named in a lawsuit by AHS Staffing, LLC against TPT MedTech, LLC claiming unpayment of $159,959 in billings for medical staffing services rendered by AHS Staffing, LLC on behalf of TPT MedTech. The Company believes it has defenses for a portion of the services rendered but has recorded a payable in accounts payable in the consolidated balance sheet of $120,967. Management does not believe that an unfavorable outcome will result in payment of more than is recorded in accounts payable.
The Company has been named in a lawsuit, Robert Serrett vs. TruCom, Inc., by a former employee who was terminated by management in 2016. The employee was working under an employment agreement but was terminated for breach of the agreement. The former employee is suing for breach of contract and is seeking around $75,000 in back pay and benefits. We learned that Mr. Serrett received a default judgement in Texas on May 15, 2018 for $70,650 plus $3,500 in attorney fees and 5% interest and court costs. However, he has made no attempt that we are aware of to obtain a sister state judgment in Arizona, where TruCom resides, or to try and enforce the judgement and collect. Management believes it has good and meritorious defenses and does not belief the outcome of the lawsuit will have any material effect on the financial position of the Company.
We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect. We anticipate that we (including current and any future subsidiaries) will from time to time become subject to claims and legal proceedings arising in the ordinary course of business. It is not feasible to predict the outcome of any such proceedings and we cannot assure that their ultimate disposition will not have a materially adverse effect on our business, financial condition, cash flows or results of operations.
Customer Contingencies
The Company has collected $338,725 from one customer in excess of amounts due from that customer in accordance with the customer’s understanding of the appropriate billings activity. The customer has filed a written demand for repayment by the Company of these amounts. Management believes that the customer agreement allows them to keep the amounts under dispute. Given the dispute, the Company has reflected the amounts in dispute as a customer liability on the consolidated balance sheet as of September 30, 2023 and December 31, 2022.
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Stock Contingencies
The Company has convertible debt, preferred stock, options and warrants outstanding for which common shares would be required to be issued upon exercise by the holders. As of September 30, 2023, the following shares would be issued:
Convertible Promissory Notes
6,750,885,442
Series A Preferred Stock (1)
28,788,595,385
Series B Preferred Stock
2,588,693
Series D Preferred Stock (2)
235,601,010
Series E Preferred Stock (3)
10,320,742,424
Stock Options and Warrants
129,116,666
46,227,529,620
___________
(1)
Holder of the Series A Preferred Stock which is Stephen J. Thomas, is guaranteed 60% of the then outstanding common stock upon conversion. The Company would have to authorize additional shares for this to occur as only 4,500,000,000 shares were authorized as of September 30, 2023.
(2)
Holders of the Series D Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series D Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series D Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.
(3)
Holders of the Series E Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series E Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series E Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.
Part of the consideration in the acquisition of Aire Fitness was the issuance of 500,000 restricted common shares of the Company vesting and issuable after the common stock reaches at least a $1.00 per share closing price in trading. To date, this has not occurred but may happen in the future upon which the Company will issue 500,000 common shares to the non-controlling interest owners of Aire Fitness.
NOTE 9 – RELATED PARTY ACTIVITY
Accounts Payable and Accrued Expenses
There are amounts outstanding due to related parties of the Company of $1,186,459 and $831,502, respectively, as of September 30, 2023, and December 31, 2022 related to amounts due to employees, management and members of the Board of Directors according to verbal and written agreements that have not been paid as of period end which are included in accounts payable and accrued expenses on the balance sheet. See Note 8.
Leases
See Note 8 for office lease used by CEO.
Note Payable and Commitments
On March 25, 2022, the Company entered into a Software Development agreement with Mr. and Mrs. Caudle for which a new note payable was created and employment agreements for Mrs. Caudle and her daughter were modified. See Notes 5 and 8.
Amounts Receivable – Related Party
As of September 30, 2023 and December 31, 2022, there are amounts due from management/shareholders of $0 and $265,273, respectively, included in amounts receivable – related party, receivable from Mark Rowen of Blue Collar.
Other Agreements
On April 17, 2018, the CEO of the Company, Stephen Thomas, signed an agreement with New Orbit Technologies, S.A.P.I. de C.V., a Mexican corporation, (“New Orbit”), majority owned and controlled by Stephen Thomas, related to a license agreement for the distribution of TPT licensed products, software and services related to Lion Phone and VuMe within Mexico and Latin America (“License Agreement”). The License Agreement provides for New Orbit to receive a fully paid-up, royalty-free, non-transferable license for perpetuity with termination only under situations such as bankruptcy, insolvency or material breach by either party and provides for New Orbit to pay the Company fees equal to 50% of net income generated from the applicable activities. The transaction was approved by the Company’s Board of Directors in June 2018. There has been no activity on this agreement.
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NOTE 10 – SEGMENT REPORTING
ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments.
The Company's chief operating decision maker (“CODM”) has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the group. Based on management's assessment, the Company considers its most significant segments are those in which it is providing Broadband Internet through TPT SpeedConnect and Media Production services through Blue Collar Medical Testing services through TPT MedTech and QuikLABs.
The following tables present summary information by segment for the three months ended September 30, 2023 and 2022, respectively:
2023

TPT
SpeedConnect

Blue Collar

TPT MedTech
and
QuikLabs

Corporate
and other

Total

Revenue

$ 800,617

79,063

—

43,571

$ 923,251

Cost of revenue

$ (698,781 )

(3,642 )

—

(37,090 )

$ (739,513 )
Net income (loss)

$ (372,794 )

(72,359 )

(20 )

(187,625 )

$ (257,548 )
Depreciation and amortization

$ —

—

—

Derivative gain (expense)

$ —

—

—

(1,015,764 )

$ 1,015,764

Gain (loss) on debt extinguishment

$ —

—

—

133,850

133,850

Interest expense

$ —

(2,592 )

—

(410,143 )

$ (412,735 )
Total assets

$ 23,968

89,486

3,816

1,241,550

$ 1,358,820

2022

TPT
SpeedConnect

Blue Collar

TPT MedTech
and
QuikLABS

Corporate
and other

Total

Revenue

$ 1,357,611

692,486

(560 )

2,720

$ 2,052,817

Cost of revenue

$ (1,303,856 )

(305,301 )

—

(82,382 )

$ (1,691,539 )
Net income (loss)

$ (486,747 )

82,809

(123,798 )

(717,284 )

$ (1,245,019 )
Deemed dividend related to modification of Series A Preferred Stock

$ —

—

—

(39,866,742 )

$ (39,866,742 )
Depreciation and amortization

$ (133,391 )

(1,705 )

(14,931 )

(164,483 )

$ (314,511 )
Derivative gain

$ —

—

—

102,903

$ 102,903

Gain on debt extinguishment

$ —

—

—

397,008

$ 301,224

Interest expense

$ (98,159 )

(36,926 )

—

(291,181 )

$ (426,265 )
Total assets

$ 5,234,872

1,787,540

2,942

1,521,797

$ 8,547,151

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The following tables present summary information by segment for the nine months ended September 30, 2023 and 2022, respectively:
2023

TPT
SpeedConnect

Blue Collar

TPT MedTech
and
QuikLABS

Corporate
and other

Total

Revenue

$ 2,717,230

243,592

—

47,044

$ 3,007,866

Cost of sales

$ (1,640,456 )

(82,281 )

—

(60,606 )

$ (1,783,343 )
Net income (loss)

$ 335,823

(334,081 )

(1,625 )

(3,093,725 )

$ (3,093,608 )
Depreciation and amortization

$ —

—

—

(2,454 )

$ (2,454 )
Derivative gain

$ —

—

—

367,881

$ 367,881

Gain on debt extinguishment

$ —

—

—

466,380

$ 466,380

Interest expense

$ (42,355 )

(9,920 )

—

(1,288,137 )

$ (1,340,412 )
Total assets

$ 23,968

89,486

3,816

1,241,550

$ 1,358,820

2022

TPT
SpeedConnect

Blue Collar

TPT MedTech
and
QuikLABS

Corporate
and other

Total

Revenue

$ 4,403,345

1,386,970

89,755

265,395

$ 6,145,465

Cost of sales

$ (3,470,536 )

(758,462 )

—

(264,930 )

$ (4,493,929 )
Net loss

$ (909,938 )

(24,354 )

(213,720 )

(10,204,935 )

$ (11,352,944 )
Deemed dividend related to modification of Series A Preferred Stock

$ —

—

—

(39,866,742 )

$ (39,866,742 )
Depreciation and amortization

$ (397,187 )

(5,683 )

(44,793 )

(493,450 )

$ (956,045 )
Derivative gain

$ —

—

—

491,301

$ 491,301

Loss on debt extinguishment

$ —

—

—

(1,970,030 )

$ (2,065,814 )
Interest expense

$ (476,840 )

(42,466 )

—

(4,186,243 )

$ (4,705,548 )
Total assets

$ 5,234,872

1,787,540

9,585

1,521,797

$ 8,547,151

NOTE 11 – DISCONTINUED OPERATIONS
On September 11, 2023, Everett Lanier and the Company agreed to a Settlement Agreement and Mutual Release (“Settlement Agreement”). The Settlement Agreement compromises, settles, and otherwise resolves all claims, compensation claims, benefit claims, or allowances, ownership of TPT Strategic Series B Preferred Stock, and all other potential claims between the Company or its officers, directors, shareholders, or representatives and Mr. Lanier arising from or relating to Second Parties’ activities during the period from approximately the acquisition date of IST to September 11, 2023. The Company and Mr. Lanier reached a settlement of certain matters, any payables to or from the Company from or to outside parties of TPT Strategic which would be a claim, and certain stock ownership of TPT Strategic under the terms of the Settlement Agreement.
Revenue and income (net loss) contributed by IST for the three months and nine months ended September 30, 2023 were $288,795 and $107,639 and $1,090,047 and $(557), respectively.   As a result of the Settlement Agreement, revenues and expenses are disclosed net in the statement of operations as net loss from discontinued operations of $557. The Company also calculated the effects of the Settlement Agreement on recorded numbers and have recorded $126,101 in gains from disposal of discontinued operations for the nine months ended September 30, 2023.
Included in the calculation of net liabilities of discontinued operations and recorded as gain from disposal of discontinued operations for IST for the nine months ended September 30, 2023 are the following:
Assets of IST

$ 633,095

Liabilities of IST

759,196

Net liabilities of IST recognized as gain on disposal of discontinued operations

$ 126,101

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Asset and liabilities included in net liabilities of discontinued operations at December 31, 2022 are the following:
Assets of IST

$ 616,263

Liabilities of IST

$ 717,414

Net cash flows for the nine months ended September 30, 2023, for discontinued operations is the following.
Net loss

$ (557 )
   Depreciation

91

Change in current assets and liabilities:

   Accounts receivable

(23,362 )
   Prepaid expenses and other

(27,519 )
   Accounts payable

55,381

Net cash flows from operating activities of discontinued operations

4,034

Net cash used in financing activities of discontinued operations

   Proceeds from notes receivable

8,455

   Proceeds from bank overdraft

7,367

   Advances on notes receivable – related party

(31,722 )
   Payments on notes payable

(16,805 )
Net cash used for financing activities of discontinued operations

(32,705 )
Net change in cash of discontinued operations:

(28,671 )
Beginning cash balance

28,671

Ending cash balance

0

NOTE 12 – SUBSEQUENT EVENTS
Consulting Agreement
Effective October 1, 2023, but consummated on October 26, 2023, the Company entered into an Advisory Services Agreement to provide information technology advisory services with a focus on Machine Learning and Artificial Intelligence with the objective of enhancing the Company’s various platforms. The term of the agreement is 360 days, if no default by either party, and can be renewed by written notice of at least 20 days prior to the end of each renewal term. Compensation under the agreement is such that on or before October 15, 2023, the Company shall pay $12,500 in cash or in registered Stock (free trading and unrestricted common stock, registered on Form S-1 or S-8). Subsequently, thereafter on November 15, 2023 equal to $288,000 and on December 15, 2023 equal to $100,000 with the final payment equal to $100,000 due on or before January 15, 2024 (the “Due Date”) for a total payment equal to five hundred thousand dollars, in cash or in S-8 Stock, in the form at the discretion of the Company. If the Company elects to pay the Consultant in form of S-8 Stock, it will be paid and calculated based on the lowest traded bid price for the common stock during the previous 25 trading days prior to the applicable Due Date. In no event, the value of the payment for Services made by Company will be less than USD $500,000. The Company plans to use current fundraising activities to fund the agreement or may choose to pay in common stock of the Company. The Company has agreed to reserve 325,000,000 shares of common stock with it’s transfer agent for this agreement. Besides customary initiation fees of around $16,000 and late fees of $20,000 for any installment payment or common shares not being properly reserved with the transfer agent.
Acquisitions
Broadband
On July 28, 2023, the Company entered into a Securities Purchase Agreement with Broadband Infrastructure, Inc. (“Broadband”) and Braddock Cunningham, owner, for the purchase of 100% of the ownership of Broadband for 600,000 shares of its Series E Convertible Preferred Shares Preferred Stock at a stated price of $5.00 per share or $3,000,000 and a promissory note for $6,000,000. The Series E Preferred Stock is convertible into common stock of TPT Global Tech, Inc. at a 25% discount to market with an automatic conversion upon the Company uplisting to a major U.S. Stock Exchange. The promissory note will be paid from proceeds raised from the Company’s Reg A capital raise or its proposed Form S-1 filing in conjunction with a capital raise and listing on a major US Stock Exchange. Closing to occur after consideration given and conditions met which primarily relate to standard representation of compliances, consents, and completion of Broadband’s audit.
Tekmovil
On September 18, 2023, the Company entered into a Securities Purchase Agreement (“Tekmovil SPA”) to acquire control of Tekmovil Holdings LLC (“Tekmovil”), a company that helps smartphone and other consumer electronics brands enter, gain, and maintain share in the Latin American and North American market. OCR Ventures, LLC, Soleil AW Investment and Holdings LLC, LuCob2020, LLC and JMDG Ventures, LLC (“Sellers”) severally (and not jointly) agreed to sell 60% of the outstanding membership interests of Tekmovil in the respective amounts set forth the Tekmovil SPA for the aggregate purchase price of $40,000,000.
The acquisition for 60% ownership includes two payments totaling $40,000,000. The initial payment (“First Payment”), up to $20,000,000, can be settled either in cash (a minimum of $10,000,000) or through TPT Series E Convertible Preferred Shares at a stated price of $5.00 per share paid by October 31, 2023, unless extended by Tekmovil shareholders. Any remaining balance from the first installment will result in issuing a secured promissory note (“First Payment Note”) for the remaining balance of the First Payment bearing interest at 6% per annum and a maturity date of the earlier of (i) March 31, 2024, and (ii) a filing by TPT of a Form S-1 registration statement.
For the second portion of the purchase price (“Second Payment Note”), TPT can issue a secured convertible promissory note for $20,000,000, bearing interest at 6% per annum and a maturity date of the earlier of (i) March 31, 2024, and (ii) a filing by TPT of an Uplisting Registration Statement in connection with a primary offering of TPT’s securities and listing of TPT’s common stock on NYSE, NASDAQ or other major US stock exchange. In lieu of payment of Second Payment Note in cash, at Sellers’ sole option, the Second Payment Note may be converted into additional shares of TPT Series E Convertible Preferred Stock with a stated price of $5.00 USD per share.
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It is understood by TPT and Sellers that the $40,000,000 purchase price for Transferred Interests is based upon an agreed valuation based on EBITDA of $13,000,000 for Tekmovil’s operations. TPT and Sellers further agreed that if, for the twelve (12) month period following Closing, the EBITDA calculation for the Surviving Corporation is less or more than $13,000,000, the aggregate amount of the $40,000,000 paid to Sellers shall be adjusted proportionally downward or upwards, as the case may be, by a maximum of 20% pro rata to the actual EBITDA increase or decrease. In the event the EBITDA calculation is less than $13,000,000, the Sellers shall refund such amount to TPT within 30 days following receipt of notice of the EBITDA calculation. In the event the EBITDA calculation is more than $13,000,000, TPT shall pay such amount to Buyers within 30 days following receipt of notice of the EBITDA calculation.
Furthermore, a provision allocates up to $80 million of funds raised from TPT's public offering to facilitate the restructuring of Tekmovil's senior debt through loans encompassing a 5-year term with provisions for expedited repayment to TPT.
TPT’s obligations under the First Payment Note and Second Payment Note shall be subject to a Security and Pledge Agreement, in the form attached to the SPA as Exhibit G, which includes a first priority security interest in TPT’s shares in the Surviving Corporation.
The Closing of the transactions contemplated by the SPA (the “Closing”) shall occur no later than the second business day after the fulfillment or waiver of all conditions which primarily relate to consideration given and to standard representations of compliance, consents, and completion of Tekmovil’s audit of the Tekmovil SPA (no later than March 31, 2024). The transaction is subject to the delivery of PCAOB and GAAP compliant audits through the required two years ended prior to date of closure by Tekmovil.
Following the completion of the audit which is also a condition precedent to Closing, then as soon as practicable following the Closing, the parties agree that Tekmovil will be merged with and into an agreed Shell Company which company is defined in the Tekmovil SPA as the Surviving Corporation.
TPT does not have committed financing for the transaction at this time and is seeking equity and debt through its existing Reg A capital raise, debt financing or a proposed public offering.
GeoKall
On October 31, 2023, the Company entered into an Acquisition and Purchase Agreement with Geokall UK Ltd. (“Geokall”), a UK Limited Company, and its owners (“Sellers”) (altogether, the “Parties”) for all of the assets, liabilities, intellectual property, and technology of Geokall in exchange for 200,000 shares of TPT Series E Convertible Preferred Stock with a stated price of $5.00 per share. In addition, TPT agrees that upon a successful fund-raising event, TPT will provide Geokall with working capital in the amount up to $500,000. An audit based on SEC Standards of Geokall UK Ltd financial statements, including footnotes, must be obtained and the Parties agree that the purchase price may be subject to change based on the results of the audit. The closing may occur prior to the audit being completed if Parties agree.
Common Stock Issuances
Subsequent to September 30, 2023, FirstFire and 1800 Diagonal exercised their rights to convert $151,530 of principal amounts into 271,833,333 of shares of common stock.
Subsequent events were reviewed through the date the financial statements were issued.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements and Associated Risks.
This Form 10-Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.
Based on our financial history since inception, our auditor has expressed substantial doubt as to our ability to continue as a going concern. As reflected in the accompanying financial statements, as of September 30, 2023, we had an accumulated deficit totaling $109,549,957. This raises substantial doubts about our ability to continue as a going concern.
RESULTS OF OPERATIONS
For the Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022
During the three months ended September 30, 2023, we recognized total revenues of $923,251 compared to the prior period of $2,052,817. The decrease is largely attributable to the decrease in internet customers from attrition and the discontinuance of unprofitable operating locations, and from the decrease in Blue Collar’s revenue from the writers and actor’s strike.
Gross profit for the three months ended September 30, 2023 was $183,738 compared to $361,278 for the prior period. The decrease is largely attributable to decreases in revenue. Gross profit (loss) percentage is 20% in the current period is comparable to the 18% in the prior period. There is no amortization in the current period from operating lease assets because of prior year write offs.
During the three months ended September 30, 2023, we incurred $1,418,430 in operating expenses compared to $1,626,737 for the prior period. The decrease was in large part attributable to no depreciation and amortization in the current period as a result of impairments taken at the end of 2022. There were also decreases in payroll and professional fees from Blue Collar’s decreased activity from the writers and actor’s strike and fewer employees for TPT SpeedConnect offset by a provision for bad debt on TPT SpeedConnect receivables provided of approximately $370,000.
Derivative gains of $1,015,764 and $102,903 result from the accounting for derivative financial instruments during the three months ended September 30, 2023 and 2022, respectively.
The gain on debt extinguishment of $133,850 for the current period and $397,008 from the prior period results from the conversion of convertible debt to common stock and exchanges in the prior year of accounts payable, financing arrangements and lease agreement balances for Series E Preferred Stock.
Interest expense decreased for the three months ended September 30, 2023 compared to the prior period by $13,530. The two periods are comparable.
IST has been disclosed as discontinued operations. The $126,101 and $107,639 represent the gain on disposal of discontinued operations and the net gain from the discontinued operations for the quarter ended September 30, 2023 of IST.
During the three months ended September 30, 2023, we recognized a net loss of $491,288 from continuing operations versus $1,245,019 for the prior period. The difference mainly is activity in the prior period related to depreciation and amortization and decreases in margin and operating expenses explained above.
For the Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022
During the nine months ended September 30, 2023, we recognized total revenues of $3,007,866 compared to the prior period of $6,145,465. The decrease is largely attributable to the decrease in internet customers from attrition and the discontinuance of unprofitable operating locations, and from the decrease in Blue Collar’s revenue for the writers and actor’s strike.
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Gross profit for the nine months ended September 30, 2023 was $1,224,523 compared to $1,651,536 for the prior period. The decrease is largely attributable to decreases in revenues for TPT SpeedConnect, TPT MedTech and Air Fitness. Gross profit percentage for the current period is 41% versus 27% for the prior period. There is no amortization in the current period from operating lease assets because of prior period write offs which helps improve margin percentage.
During the nine months ended September 30, 2023, we recognized $4,318,017 in operating expenses compared to $6,767,816 for the prior period. The decrease was in large part attributable to the research and development expense of $1,750,000 in the prior period from the acquisition of a software developed by a third party and decreases in depreciation and amortization resulting from impairments taken in the prior period offset by a provision for bad debt on TPT SpeedConnect receivables provided of approximately $370,000.
Derivative gains of $367,881 and $491,301 result from the accounting for derivative financial instruments during the nine months ended September 30, 2023 and 2022, respectively.
The gain of $466,380 for the period ended September 30, 2023 and the loss on debt extinguishment of $1,970,030 for the prior period ended September 30, 2022 result from the exchange of accounts payable, financing arrangements and lease agreement balances for Series E Preferred Stock.
Interest expense decreased for the nine months ended September 30, 2023 compared to the prior period by $3,365,136. The decrease comes largely from the amortization of debt discounts and default provisions on the Company’s derivative securities in the prior period.
IST has been disclosed as discontinued operations. The $126,101 and $(557) represent the gain on disposition of IST and the loss for the nine months ended September 30, 2023 from those operations.
During the nine months ended September 30, 2023, we incurred a net loss of $3,219,152 from continuing operations compared to $11,352,944 for the prior period. The difference was largely from the loss on extinguishment of accounts payable, financing arrangements and lease agreement balances, interest expense from amortization of debt discounts and default accounting for derivative securities and depreciation and amortization in the prior year versus the current period.
LIQUIDITY AND CAPITAL RESOURCES
We incurred $3,093,608 and $11,352,944, respectively, in losses, and we used $442,135 and $263,313, respectively, in cash for operations for the nine months ended September 30, 2023 and 2022. We calculate the net cash used by operating activities by decreasing, or increasing in case of gain, our let loss by those items that do not require the use of cash such as depreciation, amortization, research and development, derivative expense or gain, gain on extinguishment of debt and share-based compensation which totaled to a net $343,636 for 2023 and $7,704,624 for 2022.
In addition, we report increases and reductions in liabilities as uses of cash and decreases assets and increases in liabilities as sources of cash, together referred to as changes in operating assets and liabilities. For the nine months ended September 30, 2023, we had a net change in our assets and liabilities of $2,303,246 primarily from an increase in accounts payable from lag of payments for accounts payable for cash flow considerations and increase in prepaid expenses. For the nine months ended September 30, 2022 we had a net increase to our assets and liabilities of $3,385007 for similar reasons.
Cash flows from financing activities were $382,505 and $(175,057) for the nine months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, these cash flows were generated from proceeds from convertible notes of $358,500 and other notes receivable - related parties of $139,931 offset by payment on convertible loans, advances and factoring agreements of $32,705 in cash used in discontinued operations. For the nine months ended September 30, 2022, cash flows were generated from proceeds from convertible notes, loans and advances of $1,256,187 offset by payment on convertible loans, advances and factoring agreements of $1,391,580 and payments on amounts payable – related parties of $39,664.
Cash flows used in investing activities were $0 and $16,297, respectively, for the nine months ended September 30, 2023 and 2022 primarily related to the acquisition of property and equipment for 2022 and discontinued operations for 2023.
These factors raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
In order for us to continue as a going concern for a period of one year from the issuance of these financial statements, we will need to obtain additional debt or equity financing and look for companies with cash flow positive operations that we can acquire. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to acquire cash flow positive operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet all our future obligations. Most of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to significantly reduce or cease operations.
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ITEM 3. ~~Quantitative and Qualitative Disclosures About Market Risk.~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

~~Item~~ITEM 4. ~~Controls and Procedures~~CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer/principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

Management has carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. Due to the lack of personnel and outside directors, management concluded that the Company’s disclosure controls and procedures are not effective as of such date. The Company anticipates that with further resources, the Company will expand both management and the board of directors with additional officers and independent directors in order to provide sufficient disclosure controls and procedures.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended ~~March 31, 2019~~September 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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~~PART~~

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

~~None.~~

~~ITEM 1A. RISK FACTORS~~

~~RISK FACTORS RELATED TO OUR BUSINESS~~

~~Many of our competitors are better established and have resources significantly greater than we have, which may make it difficult to attract and retain subscribers.~~

We will compete with other providers of telephony service, many of which have substantially greater financial, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships in the industry. In addition, a number of these competitors may combine or form strategic partnerships. As a result, our competitors may be able to offer, or bring to market earlier, products and services that are superior to our own in terms of features, quality, pricing or other factors. Our failure to compete successfully with any of these companies would have a material adverse effect on our business and the trading price of our common stock.

~~The market for broadband and VoIP services is highly competitive, and we compete with several other companies within a single market:~~

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	•	~~cable operators offering high-speed Internet connectivity services and voice communications;~~
	•	~~incumbent and competitive local exchange carriers providing DSL services over their existing wide, metropolitan and local area networks;~~
	•	3G cellular, PCS and other wireless providers offering wireless broadband services and capabilities, including developments in existing cellular and PCS technology that may increase network speeds or have other advantages over our services;
	•	~~internet service providers offering dial-up Internet connectivity;~~
	•	~~municipalities and other entities operating free or subsidized WiFi networks;~~
	•	~~providers of VoIP telephony services;~~
	•	~~wireless Internet service providers using licensed or unlicensed spectrum;~~
	•	~~satellite and fixed wireless service providers offering or developing broadband Internet connectivity and VoIP telephony;~~
	•	~~electric utilities and other providers offering or planning to offer broadband Internet connectivity over power lines; and~~
	•	~~resellers providing wireless Internet service by “piggy-backing” on DSL or WiFi networks operated by others.~~

Moreover, we expect other existing and prospective competitors, particularly if our services are successful; to adopt technologies or business plans similar to ours or seek other means to develop a product competitive with our services. Many of our competitors are well-established and have larger and better developed networks and systems, longer-standing relationships with customers and suppliers, greater name recognition and greater financial, technical and marketing resources than we have. These competitors can often subsidize competing services with revenues from other sources, such as advertising, and thus may offer their products and services at lower prices than ours. These or other competitors may also reduce the prices of their services significantly or may offer broadband connectivity packaged with other products or services. We may not be able to reduce our prices or otherwise alter our services correspondingly, which would make it more difficult to attract and retain subscribers.

~~Our Acquisitions could result in operating difficulties, dilution and distractions from our core business.~~

We have evaluated, and expect to continue to evaluate, potential strategic transactions, including larger acquisitions. The process of acquiring and integrating a company, business or technology is risky, may require a disproportionate amount of our management or financial resources and may create unforeseen operating difficulties or expenditures, including:


	•	~~difficulties in integrating acquired technologies and operations into our business while maintaining uniform standards, controls, policies and procedures;~~

	•	increasing cost and complexity of assuring the implementation and maintenance of adequate internal control and disclosure controls and procedures, and of obtaining the reports and attestations that are required of a company filing reports under the Securities Exchange Act;
	•	difficulties in consolidating and preparing our financial statements due to poor accounting records, weak financial controls and, in some cases, procedures at acquired entities based on accounting principles not generally accepted in the United States, particularly those entities in which we lack control; and
	•	~~the inability to predict or anticipate market developments and capital commitments relating to the acquired company, business or technology.~~

~~Acquisitions of and joint ventures with companies organized outside the United States often involve additional risks, including:~~


	•	~~difficulties, as a result of distance, language or culture differences, in developing, staffing and managing foreign operations;~~
	•	~~lack of control over our joint ventures and other business relationships;~~
	•	~~currency exchange rate fluctuations;~~
	•	~~longer payment cycles;~~
	•	~~credit risk and higher levels of payment fraud;~~
	•	~~foreign exchange controls that might limit our control over, or prevent us from repatriating, cash generated outside the United States;~~
	•	~~potentially adverse tax consequences;~~

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	•	~~expropriation or nationalization of assets;~~
	•	~~differences in regulatory requirements that may make it difficult to offer all of our services;~~
	•	~~unexpected changes in regulatory requirements;~~
	•	~~trade barriers and import and export restrictions; and~~
	•	~~political or social unrest and economic instability.~~

The anticipated benefit of any of our acquisitions or investments may never materialize. Future investments, acquisitions or dispositions could result in potentially dilutive issuances of our equity securities, the incurrence of debt, contingent liabilities or amortization expenses, or write-offs of goodwill, any of which could harm our financial condition. Future investments and acquisitions may require us to obtain additional equity or debt financing, which may not be available on favorable terms, or at all.

~~Our substantial indebtedness and our current default status and any restrictive debt covenants could limit our financing options and liquidity position and may limit our ability to grow our business.~~

~~Our indebtedness could have important consequences to the holders of our common stock, such as:~~


	•	~~we may not be able to obtain additional financing to fund working capital, operating losses, capital expenditures or acquisitions on terms acceptable to us or at all;~~
	•	~~we may be unable to refinance our indebtedness on terms acceptable to us or at all;~~
	•	~~if substantial indebtedness continues it could make us more vulnerable to economic downturns and limit our ability to withstand competitive pressures; and~~
	•	~~cash flows from operations are currently negative and may continue to be so, and our remaining cash, if any, may be insufficient to operate our business.~~
	•	~~paying dividends to our stockholders;~~
	•	~~incurring, or cause certain of our subsidiaries to incur, additional indebtedness;~~
	•	~~permitting liens on or conduct sales of any assets pledged as collateral;~~
	•	~~selling all or substantially all of our assets or consolidate or merge with or into other companies;~~
	•	~~repaying existing indebtedness; and~~
	•	~~engaging in transactions with affiliates.~~

As of March 31, 2019, the total debt or financing arrangements was $11,025,202, of which $85,192 or less than 1% of total current liabilities is past due. As of March 31, 2019, financing lease arrangements are in the amount of $553,369, of which 101,347 is in default. Our inability to renegotiate our indebtedness may cause lien holders to obtain possession of a good portion of our assets which would significantly alter our ability to generate revenues and obtain any additional financing.

~~We may experience difficulties in constructing, upgrading and maintaining our network, which could adversely affect customer satisfaction, increase subscriber turnover and reduce our revenues.~~

Our success depends on developing and providing products and services that give subscribers a high-quality internet connectivity and VoIP experience. If the number of subscribers using our network and the complexity of our products and services increase, we will require more infrastructure and network resources to maintain the quality of our services. Consequently, we expect to make substantial investments to construct and improve our facilities and equipment and to upgrade our technology and network infrastructure. If we do not implement these developments successfully, or if we experience inefficiencies, operational failures or unforeseen costs during implementation, the quality of our products and services could decline.

We may experience quality deficiencies, cost overruns and delays on construction, maintenance and upgrade projects, including the portions of those projects not within our control or the control of our contractors. The construction of our network requires the receipt of permits and approvals from numerous governmental bodies, including municipalities and zoning boards. Such bodies often limit the expansion of transmission towers and other construction necessary for our business. Failure to receive approvalsbeen named in a ~~timely fashion can delay system rollouts and raise~~lawsuit by EMA Financial, LLC (“EMA”) for failing to comply with a Securities Purchase Agreement entered into in June 2019. More specifically, EMA claims the ~~cost~~Company failed to honor notices of completing construction projects. In addition, we typically are required to obtain rights from land, building and tower owners to install our antennas and other equipment to provide service to our subscribers. We may not be able to obtain, on terms acceptable to us, or at all, the rights necessary to construct our network and expand our services.

We also face challenges in managing and operating our network. These challenges include operating, maintaining and upgrading network and customer premises equipment to accommodate increased traffic or technological advances, and managing the sales, advertising, customer support, billing and collection functions of our business while providing reliable

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network service at expected speeds and VoIP telephony at expected levels of quality. Our failure in any of these areas could adversely affect customer satisfaction, increase subscriber turnover, increase our costs, decrease our revenues and otherwise have a material adverse effect on our business, prospects, financial condition and results of operations.

If we do not obtain and maintain rights to use licensed spectrum in one or more markets, we may be unable to operate in these markets, which could adversely affect our ability to execute our business strategy.

Even though we have established license agreements, growth requires that we plan to provide our services obtaining additional licensed spectrum both in the United States and internationally, we depend on our ability to acquire and maintain sufficient rights to use licensed spectrum by obtaining our own licenses or long-term spectrum leases, in each of the markets in which we operate or intend to operate. Licensing is the short-term solution to obtaining the necessary spectrum as building out spectrum is a long and difficult process that can be costly and require a disproportionate amount of our management resources. We may not be able to acquire, lease or maintain the spectrum necessary to execute our business strategy.

~~Using licensed spectrum, whether owned or leased, poses additional risks to us, including:~~


	•	~~inability to satisfy build-out or service deployment requirements upon which our spectrum licenses or leases are, or may be, conditioned;~~
	•	~~increases in spectrum acquisition costs;~~
	•	~~adverse changes to regulations governing our spectrum rights;~~
	•	~~the risk that spectrum we have acquired or leased will not be commercially usable or free of harmful interference from licensed or unlicensed operators in our or adjacent bands;~~
	•	with respect to spectrum we will lease in the United States, contractual disputes with or the bankruptcy or other reorganization of the license holders, which could adversely affect our control over the spectrum subject to such license;
	•	~~failure of the FCC or other regulators to renew our spectrum licenses as they expire; and~~
	•	~~invalidation of our authorization to use all or a significant portion of our spectrum, resulting in, among other things, impairment charges related to assets recorded for such spectrum.~~

~~If we fail~~conversion, failed to establish and maintain ~~an effective system~~share reserves, failed to register EMA shares and by failed to assure that EMA shares were Rule 144 eligible within 6 months. EMA has claimed in excess of ~~internal control, we may~~$7,614,967 in relief. The Company has filed a motion in response for which EMA has filed a motion to dismiss. The Company does not ~~be able to report our financial results accurately or to prevent fraud. Any inability to report and file our financial results accurately and timely could harm our business and adversely impact~~believe at this time that any negative outcome would result in more than the ~~trading price~~$1,011,258 it has recorded on its balance sheet as of ~~our common stock.~~September 30, 2023.

~~Effective internal control~~We have been named in a lawsuit by a collection law firm on behalf of Pinnacle Towers LLC and Crown Atlantic Company Inc., against TPT Global Tech, Inc. The claim derives from an outstanding debt by incurred by Copperhead Digital. The lawsuit is ~~necessary~~over unpaid rent that should have been paid by Copperhead Digital but was not paid. The Company believes it has several defenses to this claim and is in the process of communicating with opposing counsel for usdismissal of the claims which amount to ~~provide reliable financial reports~~$386,030 plus interest, costs and ~~prevent fraud. If we cannot provide reliable financial reports~~attorney fees. The Company has accounted for approximately $600,000 in payables on its consolidated balance sheet as of September 30, 2023 for this subsidiary payable.

We have been named in a lawsuit by a collection law firm on behalf of American Tower and related entities, against TPT Global Tech, Inc. The claim derives from an outstanding debt or ~~prevent fraud, we may~~unpaid tower lease payments. The Company believes it has several defenses to this claim and is in the process of communicating with opposing counsel for dismissal or negotiation of the claims which amounts to $2,891,886, including payment due for all future tower payments not ~~be able~~yet incurred under various tower lease agreements. The Company has accounted for approximately $2,938,347, in payables and operating lease liabilities on its consolidated balance sheet as of September 30, 2023 for this liability. Management does not believe any negative outcome to ~~manage our business as effectively as we~~this lawsuit would ~~if an effective control environment existed, and our business, brand and reputation with investors may be harmed.~~amount to more than this.

In ~~addition, reporting a material weakness may negatively impact investors’ perception~~total, lawsuits are being threatened or have been put forth by vendors in relation to tower lease payments in accordance with tower lease agreements that were entered into. The claims are currently being investigated or negotiated and the amount in controversy being claimed is approximately $3,827,169, which the Company has accounted for $4,533,770 in its consolidated balance sheet as of ~~us. We have allocated, and will continue to allocate, significant additional resources to remedy any deficiencies in our internal control.~~September 30, 2023.

~~There can be no assurances that our remedial measures will be successful in curing the any material weakness or that other significant deficiencies or material weaknesses will not arise in the future.~~

Interruption or failure of our information technology and communications systems could impair our ability to provide our products and services, which could damage our reputation and harm our operating results.

We have ~~experienced service interruptions~~been named in ~~some markets~~lawsuits by three merchant debt companies, Mr. Advance, CLOUDFUND and Fox Capital versus TPT SpeedConnect and TPT for non-payment under the debt agreements for which the companies received judgements in the ~~past~~case of Mr. Advance and ~~may experience service interruptions~~CLOUDFUND or ~~system failures~~a filed lawsuit in case of Fox Capital against the TPT SpeedConnect and TPT. The judgements and filed lawsuit in case of Fox Capital totaled $595,105, including legal and other fees for which the Company had $619,531 recorded in Debt Financing Agreements of which $87,065 was remitted to Mr. Advance during the nine months ended September 30, 2023 leaving an accrued balance of $532,466 as of September 30, 2023. We are in negotiations with these companies to restructure payment and work out acceptable terms. Management believes it will not have to pay more than what it has recorded in accounts payable.

We have been named in a lawsuit by AHS Staffing, LLC against TPT MedTech, LLC claiming unpayment of $159,959 in billings for medical staffing services rendered by AHS Staffing, LLC on behalf of TPT MedTech. The Company believes it has defenses for a portion of the services rendered but has recorded a payable in accounts payable in the ~~future. Any unscheduled service interruption adversely affects our ability to operate our business and could~~consolidated balance sheet of $120,967. Management does not believe that an unfavorable outcome will result in ~~an immediate loss~~payment of revenues. If we experience frequent or persistent system or network failures, our reputation and brand could be permanently harmed. We may make significant capital expenditures to increase the reliability of our systems, but these capital expenditures may not achieve the results we expect.

~~Our products and services depend on the continuing operation of our information technology and communications systems. Any damage to or failure of our systems could result~~more than is recorded in interruptions in our service. Interruptions in our service could reduce our revenues and profits, and our brand could be damaged if people believe our network is unreliable. Our systems are vulnerable to damage or interruption from earthquakes, terrorist attacks, floods, fires, power loss, telecommunications failures, computer viruses, computer denial of service attacks or other attempts to harm our systems, and similar events. Some of our systems are not fully redundant, and our disaster recovery planning may not be adequate. The occurrence of a natural

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~~disaster or unanticipated problems at our network centers could result in lengthy interruptions in our service and adversely affect our operating results.~~

The industries in which we operate are continually evolving, which makes it difficult to evaluate our future prospects and increases the risk of your investment. Our products and services may become obsolete, and we may not be able to develop competitive products or services on a timely basis or at all.accounts payable.

The markets in which we and our customers compete are characterized by rapidly changing technology, evolving industry standards and communications protocols, and continuous improvements in products and services. Our future success depends on our ability to enhance current products and to develop and introduce,Company has been named in a ~~timely manner, new products~~lawsuit, Robert Serrett vs. TruCom, Inc., by a former employee who was terminated by management in 2016. The employee was working under an employment agreement but was terminated for breach of the agreement. The former employee is suing for breach of contract and is seeking around $75,000 in back pay and benefits. We learned that ~~keep pace with technological developments, industry standards~~Mr. Serrett received a default judgement in Texas on May 15, 2018 for $70,650 plus $3,500 in attorney fees and ~~communications protocols, compete effectively~~5% interest and court costs. However, he has made no attempt that we are aware of to obtain a sister state judgment in Arizona, where TruCom resides, or to try and enforce the judgement and collect. Management believes it has good and meritorious defenses and does not belief the outcome of the lawsuit will have any material effect on the ~~basis~~financial position of ~~price, performance and quality, adequately address end-user customer requirements and achieve market acceptance. There can be no assurance that~~ the deployment of wireless networks will not be delayed or that our products will achieve widespread market acceptance or be capable of providing service at competitive prices in sufficient volumes. In the event that our productsCompany.

We are not timely and economically developed or do not gain widespread market acceptance, our business, results of operations and financial condition would be materially adversely affected. There can also be no assurancecurrently involved in any litigation that ~~our products will not be rendered obsolete by the introduction and acceptance of new communications protocols.~~

~~The broadband services industry is characterized by rapid technological change, competitive pricing, frequent new service introductions and evolving industry standards and regulatory requirements. We~~we believe that our success depends on our ability to anticipate and adapt to these challenges and to offer competitive services on a timely basis. We face a number of difficulties and uncertainties associated with our reliance on technological development, such as:


	•	~~competition from service providers using more traditional and commercially proven means to deliver similar or alternative services;~~
	•	~~competition from new service providers using more efficient, less expensive technologies, including products not yet invented or developed;~~
	•	~~uncertain consumer acceptance;~~
	•	~~realizing economies of scale;~~
	•	~~responding successfully to advances in competing technologies in a timely and cost-effective manner;~~
	•	~~migration toward standards-based technology, requiring substantial capital expenditures; and~~
	•	~~existing, proposed or undeveloped technologies that may render our wireless broadband and VoIP telephony services less profitable or obsolete.~~

As the products and services offered by us and our competitors develop, businesses and consumers may not accept our services as a commercially viable alternative to other means of delivering wireless broadband and VoIP telephony services.

If we are unable to successfully develop and market additional services and/or new generations of our services offerings or market our services and product offerings to a broad number of customers, we may not remain competitive.

Our future success and our ability to increase net revenue and earnings depend, in part, on our ability to develop and market new additional services and/or new generations of our current services offerings and market our existing services offerings to a broad number of customers. However, we may not be able to, among other things:

	·	~~successfully develop or market new services or product offerings or enhance existing services offerings;~~
	·	~~educate third-party sales organizations adequately for them to promote and sell our services offerings;~~
	·	~~develop, market and distribute existing and future services offerings in a cost-effective manner; or~~
	·	~~operate the facilities needed to provide our services offerings.~~

If we fail to develop new service offerings, or if we incur unexpected expenses or delays in product development or integration, we may lose our competitive position and incur substantial additional expenses or may be required to curtail or terminate all or part of our present planned business operations.

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~~Our failure to do any of the foregoing~~ could have a material adverse effect on our business, financial condition and results of operations. In addition, if any of our current or future services offerings contain undetected errors or design defects or do not work as expected for our customers, our ability to market these services offerings could be substantially impeded, resulting in lost sales, potential reputation damage and delays in obtaining market acceptance of these services offerings. We cannot assure you that we will continue to successfully develop and market new or enhanced applications for our services offerings. If we do not continue to expand our services offerings portfolio on a timely basis or if those products and applications do not receive market acceptance, become regulatory restricted, or become obsolete, we will not grow our business as currently expected.

~~We operate in a very competitive environment.~~

~~There are three types of competitors for our service offerings.~~

~~(1)~~

The value-added resellers and other vendors of hardware and software for on-site installation do not typically have an offering similar to our cloud-based services. However, they are the primary historic service suppliers to our targeted customers and will actively work to defend their customer base.

~~(2)~~

~~There are a number of providers offering services, but they typically offer only one or two applications of their choosing instead of our offering which bundles customer’s chosen services.~~

~~(3)~~

~~There are a few providers that offer more than two applications from the cloud. However currently, these providers typically offer only those applications they have chosen.~~

Our industry is characterized by rapid change resulting from technological advances and new services offerings. Certain competitors have substantially greater capital resources, larger customer bases, larger sales forces, greater marketing and management resources, larger research and development staffs and larger facilities than our and have more established reputations with our target customers, as well as distribution channels that are entrenched and may be more effective than ours. Competitors may develop and offer technologies and products that are more effective, have better features, are easier to use, are less expensive and/or are more readily accepted by the marketplace than our offerings. Their products could make our technology and service offerings obsolete or noncompetitive. Competitors may also be able to achieve more efficient operations and distribution than ours may be able to and may offer lower prices than we could offer profitably. We may decide to alter or discontinue aspects of our business and may adopt different strategies due to business or competitive factors or factors currently unforeseen, such as the introduction by competitors of new products or services technologies that would make part or all of our service offerings obsolete or uncompetitive.

~~In addition, the industry could experience some consolidation. There is also a risk that larger companies will enter our markets.~~

~~If we fail to maintain effective relationships with our major vendors, our services offerings and profitability could suffer.~~

We use third party providers for services. In addition, we purchase hardware, software and services from external suppliers. Accordingly, we must maintain effective relationships with our vendor base to source our needs, maintain continuity of supply, and achieve reasonable costs. If we fail to maintain effective relationships with our vendor base, this may adversely affect our ability to deliver the best products and services to our customers and our profitability could suffer.

Any failure of the physical or electronic security that resulted in unauthorized parties gaining access to customer data could adversely affect our business, financial condition and results of operations.

We use commercial data networks to service customers cloud based services and the associated customer data. Any data is subject to the risk of physical or electronic intrusion by unauthorized parties. We have a multi-homed firewalls and Intrusion Detection / Prevention systems to protect against electronic intrusion and two physical security levels in our networks. Our policy is to close all external ports as a default. Robust anti-virus software runs on all client servers. Systems have automated monitoring and alerting for unusual activity. We also have a Security Officer who monitors these systems. We have better security systems and expertise than our clients can afford separately but any failure of these systems could adversely affect our business growth and financial condition.

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Demand for our service offerings may decrease if new government regulations substantially increase costs, limit delivery or change the use of Internet access and other products on which our service offerings depend.

We are dependent on Internet access to deliver our service offerings. If new regulations are imposed that limit the use of the Internet or impose significant taxes on services delivered via the Internet it could change our cost structure and/or affect our business model. The significant changes in regulatory costs or new limitations on Internet use could impact our ability to operate as we anticipate, could damage our reputation with our customers, disrupt our business or result in, among other things, decreased net revenue and increased overhead costs. As a result, any such failure could harm our business, financial condition and results of operations.

Our securities, as offered hereby, are highly speculative and should be purchased only by persons who can afford to lose their entire investment in us. Each prospective investor should carefully consider the following risk factors, as well as all other information set forth elsewhere in this prospectus, before purchasing any of the shares of our common stock.

~~Increasing regulation of our Internet-based products and services could adversely affect our ability to provide new products and services.~~

On February 26, 2015, the FCC adopted a new "network neutrality" or Open Internet order (the "2015 Order") that: (1) reclassified broadband Internet access service as a Title II common carrier service, (2) applied certain existing Title II provisions and associated regulations; (3) forbore from applying a range of other existing Title II provisions and associated regulations, but to varying degrees indicated that this forbearance may be only temporary and (4) issued new rules expanding disclosure requirements and prohibiting blocking, throttling, paid prioritization and

unreasonable interference with the ability of end users and edge providers to reach each other. The 2015 Order also subjected broadband providers' Internet traffic exchange rates and practices to potential FCC oversight and created a mechanism for third parties to file complaints regarding these matters. The 2015 Order could limit our ability to efficiently manage our cable systems and respond to operational and competitive challenges. In December 2017, the FCC adopted an order (the "2017 Order") that in large part reverses the 2015 Order. The 2017 Order has not yet gone into effect, however, and the 2015 Order will remain binding until the 2017 Order takes effect. The 2017 Order is expected to be subject to legal challenge that may delay its effect or overturn it. Additionally, Congress and some states are considering legislation that may codify "network neutrality" rules.

~~Offering telephone services may subject us to additional regulatory burdens, causing us to incur additional costs.~~

We offer telephone services over our broadband network and continue to develop and deploy interconnected VoIP services. The FCC ha that competitive telephone companies that support VoIP services, such as those that we offer to our customers, are entitled to interconnect with incumbent providers of traditional telecommunications services, which ensures that our VoIP services can operate in the market. However, the scope of these interconnection rights are being reviewed in a current FCC proceeding, which may affect our ability to compete in the provision of telephony services or result in additional costs. It remains unclear precisely to what extent federal and state regulators will subject VoIP services to traditional telephone service regulation. Expanding our offering of these services may require us to obtain certain authorizations, including federal and state licenses. We may not be able to obtain such authorizations in a timely manner, or conditions could be imposed upon such licenses or authorizations that may not be favorable to us. The FCC has already extended certain traditional telecommunications requirements, such as E911 capabilities, Universal Service Fund contribution, Communications Assistance for Law Enforcement Act ("CALEA"), measures to protect Customer Proprietary Network Information, customer privacy, disability access, number porting, battery back-up, network outage reporting, rural call completion reporting and other regulatory requirements to many VoIP providers such as us. If additional telecommunications regulations are applied to our VoIP service, it could cause us to incur additional costs and may otherwise materially adversely impact our operations. In 2011, the FCC released an order significantly changing the rules governing intercarrier compensation for the origination and termination of telephone traffic between interconnected carriers. These rules have resulted in a substantial decrease in interstate compensation payments over a multi-year period. The FCC is currently considering additional reforms that could further reduce interstate compensation payments. Further, although the FCC recently declined to impose additional regulatory burdens on certain point to point transport ("special access") services provided by cable companies, that FCC decision has been appealed by multiple parties. If those appeals are successfully, there could be additional regulatory burdens and additional costs placed on these services.

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We may engage in acquisitions and other strategic transactions and the integration of such acquisitions and other strategic transactions could materially adversely affect our business, financial condition and results of operations.

~~Our business has grown significantly as a result of acquisitions, including the Acquisitions, which entail numerous risks including:~~

~~•distraction of our management team in identifying potential acquisition targets, conducting due diligence and negotiating acquisition agreements;~~

~~•difficulties in integrating the operations, personnel, products, technologies and systems of acquired businesses;~~

~~•difficulties in enhancing our customer support resources to adequately service our existing customers and the customers of acquired businesses;~~

~~•the potential loss of key employees or customers of the acquired businesses;~~

~~•unanticipated liabilities or contingencies of acquired businesses;~~

~~•unbudgeted costs which we may incur in connection with pursuing potential acquisitions which are not consummated;~~

~~•failure to achieve projected cost savings or cash flow from acquired businesses, which are based on projections that are inherently uncertain;~~

•fluctuations in our operating results caused by incurring considerable expenses to acquire and integrate businesses before receiving the anticipated revenues expected to result from the acquisitions; and

~~•difficulties in obtaining regulatory approvals required to consummate acquisitions.~~

We also participate in competitive bidding processes, some of which may involve significant cable systems. If we are the winning bidder in any such process involving significant cable systems or we otherwise engage in acquisitions or other strategic transactions in the future, we may incur additional debt, contingent liabilities and amortization expenses, which could materially adversely affect our business, financial condition and results of operations. We could also issue substantial additional equity which could dilute existing stockholders.

If our acquisitions, including the Acquisitions and the integration of the Optimum and Suddenlink businesses, do not result in the anticipated operating efficiencies, are not effectively integrated, or result in costs which exceed our expectations, our business, financial condition and results of operations could be materially adversely affected.

~~Significant unanticipated increases in the use of bandwidth-intensive Internet-based services could increase our costs.~~

The rising popularity of bandwidth-intensive Internet-based services poses risks for our broadband services. Examples of such services include peer-to-peer file sharing services, gaming services and the delivery of video via streaming technology and by download. If heavy usage of bandwidth-intensive broadband services grows beyond our current expectations, we may need to incur more expenses than currently anticipated to expand the bandwidth capacity of our systems or our customers could have a suboptimal experience when using our broadband service. In order to continue to provide quality service at attractive prices, we need the continued flexibility to develop and refine business models that respond to changing consumer uses and demands and to manage bandwidth usage efficiently. Our ability to undertake such actions could be restricted by regulatory and legislative efforts to impose so-called "net neutrality" requirements on broadband communication providers like us that provide broadband services. For more information, see "Regulation—Broadband."

~~We operate in a highly competitive business environment which could materially adversely affect our business, financial condition, results of operations and liquidity.~~

We operate in a highly competitive, consumer-driven industry and we compete against a variety of broadband, pay television and telephony providers and delivery systems, including broadband communications companies, wireless data and telephony providers, satellite-delivered video signals, Internet-delivered video content and broadcast television signals available to residential and business customers in our service areas. Some of our competitors include AT&T and its DirecTV subsidiary, CenturyLink, DISH Network, Frontier and Verizon. In addition, our pay television services compete with all other sources of leisure, news, information and entertainment, including movies, sporting or other live events, radio broadcasts, home-video services, console games, print media and the Internet.

In some instances, our competitors have fewer regulatory burdens, easier access to financing, greater resources, greater operating capabilities and efficiencies of scale, stronger brand-name recognition, longstanding relationships with regulatory authorities and customers, more subscribers, more flexibility to offer promotional packages at prices lower than ours and greater access to programming or other services. This competition creates pressure on our pricing and has adversely affected, and may continue to affect, our ability to add and retain customers, which in turn adversely affects our business, financial condition and results of operations. The effects of competition may also adversely affect our liquidity and ability to service our debt. For example, we face intense competition from Verizon and AT&T, which have network infrastructure throughout our service areas. We estimate that competitors are currently able to sell a fiber-based triple play, including broadband, pay television and telephony services, and may expand these and other service offerings to our potential customers.

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Our competitive risks are heightened by the rapid technological change inherent in our business, evolving consumer preferences and the need to acquire, develop and adopt new technology to differentiate our products and services from those of our competitors, and to meet consumer demand. We may need to anticipate far in advance which technology we should use for the development of new products and services or the enhancement of existing products and services. The failure to accurately anticipate such changes may adversely affect our ability to attract and retain customers, which in turn could adversely affect our business, financial condition and results of operations. Consolidation and cooperation in our industry may allow our competitors to acquire service capabilities or offer products that are not available to us or offer similar products and services at prices lower than ours. For example, Comcast and Charter Communications have agreed to jointly explore operational efficiencies to speed their respective entries into the wireless market, including in the areas of creating common operating platforms and emerging wireless technology platforms. In addition, changes in the regulatory and legislative environments may result in changes to the competitive landscape.

In addition, certain of our competitors own directly or are affiliated with companies that own programming content or have exclusive arrangements with content providers that may enable them to obtain lower programming costs or offer exclusive programming that may be attractive to prospective subscribers. For example, DirecTV has exclusive arrangements with the National Football League that give it access to programming we cannot offer. AT&T also has an agreement to acquire Time Warner, which owns a number of cable networks, including TBS, CNN and HBO, as well as Warner Bros. Entertainment, which produces television, film and home-video content. AT&T's and DirecTV's potential access to Time Warner programming could allow AT&T and DirecTV to offer competitive and promotional packages that could negatively affect our ability to maintain or increase our existing customers and revenues. DBS operators such as DISH Network and DirecTV also have marketing arrangements with certain phone companies in which the DBS provider's pay television services are sold together with the phone company's broadband and mobile and traditional phone services.

Most broadband communications companies, which already have wired networks, an existing customer base and other operational functions in place (such as billing and service personnel), offer DSL services. We believe DSL service competes with our broadband service and is often offered at prices lower than our Internet services. However, DSL is often offered at speeds lower than the speeds we offer. In addition, DSL providers may currently be in a better position to offer Internet services to businesses since their networks tend to be more complete in commercial areas. They may also increasingly have the ability to combine video services with telephone and Internet services offered to their customers, particularly as broadband communications companies enter into co-marketing agreements with other service providers. In addition, current and future fixed and wireless Internet services, such as 3G, 4G and 5G fixed and wireless broadband services and Wi-Fi networks, and devices such as wireless data cards, tablets and smartphones, and mobile wireless routers that connect to such devices, may compete with our broadband services.

Our telephony services compete directly with established broadband communications companies and other carriers, including wireless providers, as increasing numbers of homes are replacing their traditional telephone service with wireless telephone service. We also compete against VoIP providers like Vonage, Skype, GoogleTalk, Facetime, WhatsApp and magicJack that do not own networks but can provide service to any person with a broadband connection, in some cases free of charge. In addition, we compete against ILECs, other CLECs and long-distance voice-service companies for large commercial and enterprise customers. While we compete with the ILECs, we also enter into interconnection agreements with ILECs so that our customers can make and receive calls to and from customers served by the ILECs and other telecommunications providers. Federal and state law and regulations require ILECs to enter into such agreements and provide facilities and services necessary for connection, at prices subject to regulation. The specific price, terms and conditions of each agreement, however, depend on the outcome of negotiations between us and each ILEC. Interconnection agreements are also subject to approval by the state regulatory commissions, which may arbitrate negotiation impasses. These agreements, like all interconnection agreements, are for limited terms and upon expiration are subject to renegotiation, potential arbitration and approval under the laws in effect at that time.

~~We also face competition for our advertising sales from traditional and non-traditional media outlets, including television and radio stations, traditional print media and the Internet.~~

~~We face significant risks as a result of rapid changes in technology, consumer expectations and behavior.~~

The broadband communications industry has undergone significant technological development over time and these changes continue to affect our business, financial condition and results of operations. Such changes have had, and will continue to have, a profound impact on consumer expectations and behavior. Our video business faces technological change risks as a result of the continuing development of new and changing methods for delivery of programming content such as Internet-based delivery of movies, shows and other content which can be viewed on televisions, wireless devices and other developing

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mobile devices. Consumers' video consumption patterns are also evolving, for example, with more content being downloaded for time-shifted consumption. A proliferation of delivery systems for video content can adversely affect our ability to attract and retain subscribers and the demand for our services and it can also decrease advertising demand on our delivery systems. Our broadband business faces technological challenges from rapidly evolving wireless Internet solutions. Our telephony service offerings face technological developments in the proliferation of telephony delivery systems including those based on Internet and wireless delivery. If we do not develop or acquire and successfully implement new technologies, we will limit our ability to compete effectively for subscribers, content and advertising. We cannot provide any assurance that we will realize, in full or in part, the anticipated benefits we expect from the introduction of our home communications hub,, or that it will be rolled out across our footprint in the timeframe we anticipate. In addition, we may be required to make material capital and other investments to anticipate and to keep up with technological change. These challenges could adversely affect our business, financial condition and results of operations.

~~Our revenues and growth may be constrained due to demand exceeding capacity of our systems or our inability to develop solutions.~~

We anticipate generating revenues in the future from broadband connectivity, other Internet services, and broadband and in the cloud services. Demand and market acceptance for these recently introduced services and products delivered over the Internet is uncertain. Critical issues concerning the use of the Internet, such as ease of access, security, reliability, cost and quality of service, exist and may affect the growth of Internet use or the attractiveness of conducting commerce online. In addition, the Internet and online services may not be accepted as viable for a number of reasons, including potentially inadequate development of the necessary network infrastructure or delayed development of enabling technologies and performance improvements. To the extent that the Internet and online services continue to experience significant growth, there can be no assurance that the infrastructure of the Internet and online services will prove adequate to support increased user demands. In addition, the Internet or online services could lose their viability due to delays in the development or adoption of new standards and protocols required to handle increased levels of Internet or online service activity. Changes in, or insufficient availability of, telecommunications services to support the Internet or online services also could result in slower response times and adversely affect usage of the Internet and online services generally and us in particular. If use of the Internet and online services does not continue to grow or grows more slowly than expected, if the infrastructure for the Internet and online services does not effectively support growth that may occur, or if the Internet and online services do not become a viable commercial marketplace, our business could be adversely affected.

~~Certain aspects of our VoIP telephony services differ from traditional telephone service. The factors that may have this effect include:~~


	•	~~our subscribers may experience lower call quality than they experience with traditional wireline telephone companies, including static, echoes and transmission delays;~~
	•	~~our subscribers may experience higher dropped-call rates than they experience with traditional wireline telephone companies; and~~
	•	~~a power loss or Internet access interruption causes our service to be interrupted.~~

Additionally, our VoIP emergency calling service is significantly more limited than the emergency calling services offered by traditional telephone companies. Our VoIP emergency calling service can only transmit to a dispatcher at a public safety answering point, or PSAP, the location information that the subscriber has registered with us, which may at times be different from the actual location at the time of the call. As a result, our emergency calling systems may not assure that the appropriate PSAP is reached and may cause significant delays, or even failures, in callers’ receipt of emergency assistance. Our failure to develop or operate an adequate emergency calling service could subject us to substantial liabilities and may result in delays in subscriber adoption of our VoIP telephony services or all of our services, abandonment of our services by subscribers, and litigation costs, damage awards and negative publicity, any of which could harm our business, prospects, financial condition or results of operations.

If There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our ~~subscribers do not accept the differences between~~company or any of our ~~VoIP telephony services and traditional telephone service, they may not adopt~~subsidiaries, threatened against or ~~keep~~affecting our ~~VoIP telephony services~~company, our common stock, any of our subsidiaries or of our companies or our ~~other services,~~subsidiaries’ officers or ~~may choose to retain or return to service provided by traditional telephone companies. Because VoIP telephony services represent~~directors in their capacities as such, in which an important aspect of our business strategy, failure to achieve subscribers’ acceptance of our VoIP telephony services may adversely affect our prospects, results of operations and the trading price of our shares.

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We rely on contract manufacturers and a limited number of third-party suppliers to produce our network equipment and to maintain our network sites. If these companies fail to perform, we may have a shortage of components and may be required to suspend our network deployment and our product and service introduction.

We depend on contract manufacturers, to produce and deliver acceptable, high quality products on a timely basis. We also depend on a limited number of third parties to maintain our network facilities. If our contract manufacturer or other providers do not satisfy our requirements, or if we lose our contract manufacturers or any other significant provider, we may have an insufficient network services for delivery to subscribers, we may be forced to suspend portions of our wireless broadband network, enrollment of new subscribers, and product sales and our business, prospects, financial condition and operating results may be harmed.

~~We rely on highly skilled executives and other personnel. If we cannot retain and motivate key personnel, we may be unable to implement our business strategy~~.

We will be highly dependent on the scientific, technical, and managerial skills of certain key employees, including technical, research and development, sales, marketing, financial and executive personnel, and on our ability to identify, hire and retain additional personnel. To accommodate our current size and manage our anticipated growth, we must expand our employee base. Competition for key personnel, particularly persons having technical expertise, is intense, and there can be no assurance that we will be able to retain existing personnel or to identify or hire additional personnel. The need for such personnel is particularly important given the strains on our existing infrastructure and the need to anticipate the demands of future growth. In particular, we are highly dependent on the continued services of our senior management team, which currently is composed of a small number of individuals. We do not maintain key-man life insurance on the life of any employee. The inability of us to attract, hire or retain the necessary technical, sales, marketing, financial and executive personnel, or the loss of the services of any member of our senior management team,adverse decision could have a material adverse ~~effect on us.~~

Our future success depends largely on the expertise and reputation of our founder, Chairman and Chief Executive Officer Stephen J. Thomas, Richard Eberhardt, and the other members of our senior management team. In addition, we intend to hire additional highly skilled individuals to staff our operations. Loss of any of our key personnel or the inability to recruit and retain qualified individuals could adversely affect our ability to implement our business strategy and operate our business.

We are currently managed by a small number of key management and operating personnel. Our future success depends, in part, on our ability to recruit and retain qualified personnel. Failure to do so likely would have an adverse impact on our business and the trading price of our common stock.

~~If our data security measures are breached, subscribers may perceive our network and services as not secure~~.

Our network security and the authentication of the subscriber’s credentials are designed to protect unauthorized access to data on our network. Because techniques used to obtain unauthorized access to or to sabotage networks change frequently and may not be recognized until launched against a target, we may be unable to anticipate or implement adequate preventive measures against unauthorized access or sabotage. Consequently, unauthorized parties may overcome our encryption and security systems and obtain access to data on our network, including on a device connected to our network. In addition, because we operate and control our network and our subscribers’ Internet connectivity, unauthorized access or sabotage of our network could result in damage to our network and to the computers or other devices used by our subscribers. An actual or perceived breach of network security, regardless of whether the breach is our fault, could harm public perception of the effectiveness of our security measures, adversely affect our ability to attract and retain subscribers, expose us to significant liability and adversely affect our business prospects.

~~Our activities outside the United States could disrupt our operations~~.

We intend to invest in various international companies and spectrum opportunities through acquisitions and strategic alliances as these opportunities arise. Our activities outside the United States operate in environments different from the one we face in the United States, particularly with respect to competition and regulation. Due to these differences, our activities outside the United States may require a disproportionate amount of our management and financial resources, which could disrupt our U.S. operations and adversely affect our business.

In a number of international markets, we face substantial competition from local service providers that offer or may offer their own wireless broadband or VoIP telephony services and from other companies that provide Internet connectivity services. We may face heightened challenges in gaining market share, particularly in certain European countries, where a large portion of the population already has broadband Internet connectivity and incumbent companies already have a

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dominant market share in their service areas. Furthermore, foreign providers of competing services may have a substantial advantage over us in attracting subscribers due to a more established brand, greater knowledge of local subscribers’ preferences and access to significant financial or strategic resources.

In addition, foreign regulatory authorities frequently own or control the incumbent telecommunications companies operating under their jurisdiction. Established relationships between government-owned or government-controlled telecommunications companies and their traditional local providers of telecommunications services often limit access of third parties to these markets. The successful expansion of our international operations in some markets will depend on our ability to locate, form and maintain strong relationships with established local communication services and equipment providers. Failure to establish these relationships or to market or sell our products and services successfully could limit our ability to attract subscribers to our services.

~~We may be unable to protect our intellectual property, which could reduce the value of our services and our brand~~.

Our ability to compete effectively depends on our ability to protect our proprietary technologies, system designs and manufacturing processes. We may not be able to safeguard and maintain our proprietary rights. We rely on patents, trademarks and policies and procedures related to confidentiality to protect our intellectual property. Some of our intellectual property, however, is not covered by any of these protections.

We could be subject to claims that we have infringed on the proprietary rights of others, which claims would likely be costly to defend, could require us to pay damages and could limit our ability to use necessary technologies in the future.

Our competitors may independently develop or patent technologies or processes that are substantially equivalent or superior to ours. These competitors may claim that our services and products infringe on these patents or other proprietary rights. Defending against infringement claims, even merit less ones, would be time consuming, distracting and costly. If we are found to be infringing proprietary rights of a third party, we could be enjoined from using such third party’s rights and be required to pay substantial royalties and damages and may no longer be able to use the intellectual property on acceptable terms or at all. Failure to obtain licenses to intellectual property could delay or prevent the development, manufacture or sale of our products or services and could cause us to expend significant resources to develop or acquire non-infringing intellectual property.

~~Our business depends on our brand, and if we do not maintain and enhance our brand, our ability to attract and retain subscribers may be impaired and our business and operating results harmed~~.

We believe that our brand is a critical part of our business. Maintaining and enhancing our brand may require us to make substantial investments with no assurance that these investments will be successful. If we fail to promote and maintain our brands, or if we incur significant expenses in this effort, our business, prospects, operating results and financial condition may be harmed.effect. We anticipate that ~~maintaining~~we (including current and ~~enhancing our brand~~any future subsidiaries) will ~~become increasingly important, difficult and expensive.~~

~~We are subject to extensive regulation.~~

Our acquisition, lease, maintenance and use of spectrum licenses are extensively regulated by federal, state, local, and foreign governmental entities. A number of other federal, state, local and foreign privacy, security and consumer laws also apply to our business. These regulations and their application are subject to continual change as new legislation, regulations or amendments to existing regulations are adopted from time to time by governmental or regulatory authorities, including as a result of judicial interpretations of such laws and regulations. Current regulations directly affect the breadth of services we are able to offer and may impact the rates, terms and conditions of our services. Regulation of companies that offer competing services, such as cable and DSL providers and incumbent telecommunications carriers, also affects our business indirectly.

We are also subject to regulation because we provide VoIP telephony services. As an “interconnected” VoIP provider, we are required under FCC rules, to comply with the Communications Assistance for Law Enforcement Act, or CALEA, which requires service providers to build certain capabilities into their networks and to accommodate wiretap requests from law enforcement agencies.

In addition, the FCC or other regulatory authorities may in the future restrict our ability to manage subscribers’ use of our network, thereby limiting our ability to prevent or address subscribers’ excessive bandwidth demands. To maintain the quality of our network and user experience, we manage the bandwidth used by our subscribers’ applications, in part by restricting the types of applications that may be used over our network. Some providers and users of these applications have objected to

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this practice. If the FCC or other regulatory authorities were to adopt regulations that constrain our ability to employ bandwidth management practices, excessive use of bandwidth-intensive applications would likely reduce the quality of our services for all subscribers. Such decline in the quality of our services could harm our business.

In certain of our international markets, the services provided by our business may require receipt of a license from national, provincial or local regulatory authorities. Where required, regulatory authorities may have significant discretion in granting the licenses and in the term of the licenses and are often under no obligation to renew the licenses when they expire.

The breach of a license or applicable law, even if inadvertent, can result in the revocation, suspension, cancellation or reduction in the term of a license or the imposition of fines. In addition, regulatory authorities may grant new licenses to third parties, resulting in greater competition in territories where we already have rights to licensed spectrum. In order to promote competition, licenses may also require that third parties be granted access to our bandwidth, frequency capacity, facilities or services. We may not be able to obtain or retain any required license, and we may not be able to renew a license on favorable terms, or at all.

~~Our wireless broadband and VoIP telephony services may~~ become subject to ~~greater state or federal regulation~~claims and legal proceedings arising in the ~~future. The scope~~ordinary course of ~~the regulations that may apply~~business. It is not feasible to ~~VoIP telephony services providers and the impact of such regulations on providers’ competitive position are presently unknown.~~

~~Our Chairman and Chief Executive Officer is also our largest stockholder, and as a result he can exert control over us and has actual or potential interests that may diverge from yours.~~

Mr. Thomas may have interests that diverge from those of other holders of our common stock and he owns our super majority voting Series A stock. As a result, Mr. Thomas may vote the shares he owns or otherwise cause us to take actions that may conflict with your best interests as a stockholder, which could adversely affect our results of operations and the trading price of our common stock.

Through his control, Mr. Thomas can control our management, affairs and all matters requiring stockholder approval, including the approval of significant corporate transactions, a sale of our company, decisions about our capital structure and, the composition of our board of directors.

~~RISK FACTORS RELATED TO OUR STOCK~~

~~We can give no assurance of success or profitability to our investors.~~

Cash flows generated from operating activities were not enough to support all working capital requirements for the years ended March 31, 2019 and 2018. Financing activities described below, have helped with working capital and other capital requirements. We incurred $2,981,346 and $1,037,581, respectively, in losses, and we used $369,477 and $250,097, respectively, in cash for operations for the three months ended March 31, 2019 and 2018. Cash flows from financing activities were $848,661 and $235,635 for the same periods. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result frompredict the outcome of ~~this uncertainty.~~

Subsequent to March 31, 2019, convertible promissory note was extended to the Company in the amount of $65,000 into convertible debt. In addition, the company secured $527,000 in the sale of future receipts.

~~Our sources of capital are loans and sales of equity from common or preferred stock. We have no firm commitments for loans or equity sales at this date.~~

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~~We may in the future issue more shares which could cause a loss of control by our present management and current stockholders.~~

We may issue further shares as consideration for the cash or assets or services out of our authorized but unissued common stock that would, upon issuance, represent a majority of the voting power and equity of our Company. The result of such an issuance would be those new stockholders and management would control our Company, and persons unknown could replace our management at this time. Such an occurrence would result in a greatly reduced percentage of ownership of our Company by our current shareholders, which could present significant risks to investors.

We have options and warrants issued and outstanding, convertible promissory notes and preferred stock that is convertible into common stock. A conversion of such equity and debt instruments could have a dilutive effect to existing shareholders.

~~As of March 31, 2019, we had options outstanding to purchase 3,093,120 shares of common stock of the Company.~~

~~As of March 31, 2019, we had convertible promissory notes outstanding that were convertible into 9,475,367 common shares.~~

~~In addition, the Series A and B preferred stocks outstanding are convertible into common shares of 128,056,693 and 2,588,693, respectively as of March 31, 2019.~~

The exercise of the options, convertible promissory notes and Series A and B Series Preferred Stock into shares of our common stock could have a dilutive effect to the holdings of our existing shareholders.

~~As of March 31, 2019, the following warrants were outstanding:~~

~~Our officers and directors may have conflicts of interests as to corporate opportunities which we may not be able or allowed to participate in~~.

Presently there is no requirement contained in our Articles of Incorporation, Bylaws, or minutes which requires officers and directors of our business to disclose to us business opportunities which come to their attention. Our officers and directors do, however, have a fiduciary duty of loyalty to us to disclose to us any business opportunities which come to their attention, in their capacity as an officer and/or director or otherwise. Excluded from this duty would be opportunities which the person learns about through his involvement as an officer and director of another company. We have no intention of merging with or acquiring business opportunity from any affiliate or officer or director.

~~We have agreed to indemnification of officers and directors as is provided by Florida Statutes.~~

Florida Statutes provide for the indemnification of our directors, officers, employees, and agents, under certain circumstances, against attorney’s fees and other expenses incurred by them in any litigation to which they become a party arising from their association with or activities our behalf. We will also bear the expenses of such litigation for any of our directors, officers, employees, or agents, upon such person’s promise to repay us therefore if it is ultimately determined that any such ~~person shall not have been entitled to indemnification. This indemnification policy could result in substantial expenditures by us that we will be unable to recoup.~~

~~Our directors’ liability to us and shareholders is limited.~~

Florida Statutes exclude personal liability of our directors and our stockholders for monetary damages for breach of fiduciary duty except in certain specified circumstances. Accordingly, we will have a much more limited right of action against our directors that otherwise would be the case. This provision does not affect the liability of any director under federal or applicable state securities laws.

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~~Our Stock prices in the Market may be volatile.~~

The value of our Common stock following this offering may be highly volatile and could be subject to fluctuations in price in response to various factors, some of which are beyond our control. These factors include:


	•	~~quarterly variations in our results of operations or those of our competitors;~~
	•	~~announcements by us or our competitors of acquisitions, new products, significant contracts, commercial relationships or capital commitments;~~
	•	~~disruption to our operations or those of other sources critical to our network operations;~~
	•	~~the emergence of new competitors or new technologies;~~
	•	~~our ability to develop and market new and enhanced products on a timely basis;~~
	•	~~seasonal or other variations in our subscriber base;~~
	•	~~commencement of, or our involvement in, litigation;~~
	•	~~availability of additional spectrum;~~
	•	~~dilutive issuances of our stock or the stock of our subsidiaries, or the incurrence of additional debt;~~
	•	~~changes in our board or management;~~
	•	~~adoption of new or different accounting standards;~~
	•	~~changes in governmental regulations or in the status of our regulatory approvals;~~
	•	~~changes in earnings estimates or recommendations by securities analysts;~~
	•	~~announcements regarding WiMAX and other technical standards; and~~
	•	~~general economic conditions and slow or negative growth of related markets.~~

In addition, the stock market in general, and the market for shares of technology companies in particular, has experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies. We expect the value of our common stock will be subject to such fluctuations.

~~We may not be able to successfully implement our business strategy without substantial additional capital. Any such failure may adversely affect the business and results of operations.~~

Unless we can generate revenues sufficient to implement our Business Plan, we will need to obtain additional financing through debt or bank financing, or through the sale of shareholder interests to execute our Business Plan. We expect to need $16,900,000 in the next twelve months in capital or loans to complete our plans and operations. We may not be able to obtain this financing at all. We have not sought commitments for this financing, and we have no terms for either debt or equity financing, and we realize that it may be difficult to obtain on favorable terms. Moreover, if we issue additional equity securities to support our operations, Investor holdings may be diluted. Our business plans are at risk if we cannot continually achieve additional capital raising to complete our plans.

~~We are reliant, in part, on third party sales organizations, which may not perform as we expect.~~

We, from time to time rely on the sales force of third-party sales organizations with support from our own selling resources. The third-party relationships and internal organization are not fully developed at this time and must be developed. We may not be able to hire effective inside sales people to help our third-party sales organizations close sales. There is no assurance that any approaches will improve sales. Further, using only a direct sales force would be less cost-effective than our plan to use third-party sales organizations. In addition, a direct sales model may be ineffective if we were unable to hire and retain qualified salespeople and if the sales force fails to complete sales. Moreover, even if we successfully implement our business strategy, we may not have positive operating results. We may decide to alter or discontinue aspects of our business strategy and may adopt different strategies due to business or competitive factors.

~~Our growth may be affected adversely if our sales of products and services are negatively affected by competition or other factors.~~

The growth of our business is dependent, in large part, upon the development of sales for our services and product offerings. Market opportunities that we expect to exist may not develop as expected, or at all. For example, a substantial percentage of our service offerings is oriented around data access. If lower cost alternatives are developed, our sales would decrease and our operating results would be negatively affected. Moreover, even if market opportunities develop as expected, new technologies and services offerings introduced by competitors may significantly limit our ability to capitalize on any such market opportunity. Our failure to capitalize on expected market opportunities would adversely affect revenue growth.

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The lack of operating history and the rapidly changing nature of the market in which we compete make it difficult to accurately forecast revenues and operating results. We anticipate that revenues and operating results might fluctuate in the future due to a number of factors including the following:

~~the timing of sales for current services and products offerings~~

~~the timing of new product implementations~~

~~unexpected delays in introducing new services and products offerings~~

~~increased expense related to sales and marketing, product development or administration~~

~~the mix of products and our services offerings~~

~~costs related to possible acquisitions of technology or business.~~

~~costs of providing services~~

~~We may be unable to compete with larger, more established competitors.~~

The market for providing network delivered service solutions is competitive. We expect competition to intensify in the future. Many of our potential competitors have longer operating histories, larger customer bases, greater recognition and significantly greater resources. As a result, competitors may be able to respond more quickly to emerging technologies and changes in customer requirements than we can. The continuous and timely introduction of competitively priced services offerings into the market is critical to our success, and there can be no assurance that we will be able to introduce such services offerings. We may not be able to compete successfully against competitors, and the competitive pressures we face may have an adverse effect on our business.

~~RISKS RELATING TO OUR INTELLECTUAL PROPERTY AND POTENTIAL LITIGATION~~

~~We may not be able to protect our intellectual property and proprietary rights.~~

There can be no assurances that we will be able to obtain intellectual property protection that will effectively prevent any competitors from developing or marketing the same or a competing technology. In addition, we cannot predict whether we will be subject to intellectual property litigation the outcome of which is subject to uncertainty and which can be very costly to pursue or defend. We will attempt to continue to protect our proprietary designs and to avoid infringing on the intellectual property of third parties. However, there can be no assurance that we will be able to protect our intellectual property or avoid suits by third parties claiming intellectual property infringement.

~~If our patents and other intellectual property rights do not adequately protect our service offering, we may lose market share to competitors and be unable to operate our business profitably.~~

Patents and other proprietary rights are anticipated to be of value to our future business, and our ability to compete effectively with other companies depends on the proprietary nature of our current or future technologies. We also rely upon trade secrets, know-how, continuing technological innovations and licensing opportunities to develop, maintain, and strengthen our competitive position. We cannot assure you that any future patent applications will result in issued patents, that any patents issued or licensed to us will not be challenged, invalidated or circumvented or that the rights granted there under will provide a competitive advantage to us or prevent competitors from entering markets which we currently serve. Any required license may not be available to us on acceptable terms, if at all or may become invalid if the licensee’s right to such technology become challenged and/or revoked. In addition, some licenses may be non-exclusive, and therefore competitors may have access to the same technologies as we do. Furthermore, we may have to take legal action in the future to protect our trade secrets or know-how, or to defend them against claimed infringement of the rights of others. Any legal action of that type could be costly and time-consuming to us,proceedings and we cannot assure ~~you~~ that ~~such actions~~their ultimate disposition will ~~be successful. The invalidation of key patents or proprietary rights which we own or unsuccessful outcomes in lawsuits to protect our intellectual property may~~not have a ~~material~~materially adverse effect on our business, financial condition, ~~and results of operations.~~

~~Table of Contents~~

~~We may in the future become subject to claims that some,~~cash flows or ~~the entire service offering violates the patent or intellectual property rights of others, which could be costly and disruptive to us.~~

We operate in an industry that is susceptible to patent litigation. As a result, we or the parties we license technology from may become subject to patent infringement claims or litigation. Further, one or more of our future patents or applications may become subject to interference proceedings declared by the U.S. Patent and Trademark Office, (“USPTO”) or the foreign equivalents thereof to determine the priority of claims to inventions. The defense of intellectual property suits, USPTO interference proceedings or the foreign equivalents thereof, as well as related legal and administrative proceedings, are both costly and time consuming and may divert management's attention from other business concerns. An adverse determination in litigation or interference proceedings to which we may become a party could, among other things:

~~subject us to significant liabilities to third parties, including treble damages;~~
~~require disputed rights to be licensed from a third party for royalties that may be substantial;~~
~~require us to cease using such technology; or~~
~~prohibit us from selling certain of our service offerings.~~

~~Any of these outcomes could have a material adverse effect on our business, financial condition and~~ results of operations.

~~Our stock will in all likelihood be thinly traded and as a result you may be unable to sell at or near ask prices or at all if you need to liquidate your shares.~~

The shares of our common stock may be thinly-traded on the OTC Market, meaning that the number of persons interested in purchasing our common shares at or near ask prices at any given time may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven, early stage company such as ours or purchase or recommend the purchase of any of our Securities until such time as we became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our Securities is minimal or non-existent, as compared to a seasoned issuer which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on Securities price. We cannot give you any assurance that a broader or more active public trading market for our common Securities will develop or be sustained, or that any trading levels will be sustained. Due to these conditions, we can give investors no assurance that they will be able to sell their shares at or near ask prices or at all if they need money or otherwise desire to liquidate their securities of our Company.

~~The regulation of penny stocks by SEC and FINRA may discourage the tradability of our securities.~~

We are a “penny stock” company. None of our securities currently trade in any market and, if ever available for trading, will be subject to a Securities and Exchange Commission rule that imposes special sales practice requirements upon broker-dealers who sell such securities to persons other than established customers or accredited investors. For purposes of the rule, the phrase “accredited investors” means, in general terms, institutions with assets in excess of $5,000,000, or individuals having a net worth in excess of $1,000,000 or having an annual income that exceeds $200,000 (or that, when combined with a spouse’s income, exceeds $300,000). For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser’s written agreement to the transaction prior to the sale. Effectively, this discourages broker-dealers from executing trades in penny stocks. Consequently, the rule will affect the ability of purchasers in this offering to sell their securities in any market that might develop therefore because it imposes additional regulatory burdens on penny stock transactions.

In addition, the Securities and Exchange Commission has adopted a number of rules to regulate “penny stocks". Such rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Securities and Exchange Act of 1934, as amended. Because our securities constitute “penny stocks” within the meaning of the rules, the rules would apply to us and to our securities. The rules will further affect the ability of owners of shares to sell our securities in any market that might develop for them because it imposes additional regulatory burdens on penny stock transactions.

Shareholders should be aware that, according to Securities and Exchange Commission, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by

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~~one or a few broker-dealers that are often related to~~

ITEM 1A. RISK FACTORS

No Material Changes in Risk Factors since the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) “boiler room” practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired consequent investor losses. Our management is aware of the abuses that have occurred historicallydisclosure contained in the ~~penny stock market. Although we do not expect to be in a position to dictate~~Form 10-K for the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.year ended December 31, 2022.

Inventory in penny stocks have limited remedies in the event of violations of penny stock rules. While the courts are always available to seek remedies for fraud against us, most, if not all, brokerages require their customers to sign mandatory arbitration agreements in conjunctions with opening trading accounts. Such arbitration may be through an independent arbiter. Investors may file a complaint with FINRA against the broker allegedly at fault, and FINRA may be the arbiter, under FINRA rules. Arbitration rules generally limit discovery and provide more expedient adjudication, but also provide limited remedies in damages usually only the actual economic loss in the account. Investors should understand that if a fraud case is filed against a company in the courts it may be vigorously defended and may take years and great legal expenses and costs to pursue, which may not be economically feasible for small investors.

~~That absent arbitration agreements, specific legal remedies available to investors of penny stocks include the following:~~

If a penny stock is sold to the investor in violation of the requirements listed above, or other federal or states securities laws, the investor may be able to cancel the purchase and receive a refund of the investment.

~~If a penny stock is sold to the investor in a fraudulent manner, the investor may be able to sue the persons and firms that committed the fraud for damages.~~

The fact that we are a penny stock company will cause many brokers to refuse to handle transactions in the stocks, and may discourage trading activity and volume, or result in wide disparities between bid and ask prices. These may cause investors significant illiquidity of the stock at a price at which they may wish to sell or in the opportunity to complete a sale. Investors will have no effective legal remedies for these illiquidity issues.

~~We will pay no dividends in the foreseeable future~~.

~~We have not paid dividends on our common stock and do not anticipate paying such dividends in the foreseeable future.~~

~~Rule 144 sales in the future may have a depressive effect on our stock price.~~

All of the outstanding shares of common stock held by our present officers, directors, and affiliate stockholders are “restricted securities” within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted Shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Act and as required under applicable state securities laws. Rule 144 provides in essence that a person who has held restricted securities for six months, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed the greater of 1.0% of a company’s outstanding common stock or the average weekly trading volume during the four calendar weeks prior to the sale. There is no limit on the amount of restricted securities that may be sold by a non-affiliate after the owner has held the restricted securities for a period of six months. A sale under Rule 144 or under any other exemption from the Act, if available, or pursuant to subsequent registration of shares of common stock of present stockholders, may have a depressive effect upon the price of the common stock in any market that may develop.

~~Any sales of our common stock, if in significant amounts, are likely to depress the future market price of our securities.~~

Assuming all of the shares of common stock held by the selling security holders registered recently in a Form S-1 that became effective in 2019 are sold, we would have 38,208,210 new shares that are freely tradable and therefor available for sale, in market or private transactions.

~~Unrestricted sales of 38,208,210 shares of stock by these selling stockholders could have a huge negative impact on our share price, and the market for our shares.~~

~~Table of Contents~~

~~Any new potential investors will suffer a disproportionate risk and there will be immediate dilution of existing investor’s investments.~~

Our present shareholders have acquired their securities at a cost significantly less than that which the investors purchasing pursuant to shares will pay for their stock holdings or at which future purchasers in the market may pay. Therefore, any new potential investors will bear most of the risk of loss.

~~We can issue shares of preferred stock without shareholder approval, which could adversely affect the rights of common shareholders.~~

Our Articles of Incorporation permit our Board of Directors to establish the rights, privileges, preferences and restrictions, including voting rights, of future series of stock and to issue such stock without approval from our shareholders. The rights of holders of common stock may suffer as a result of the rights granted to holders of preferred stock that may be issued in the future. In addition, we could issue preferred stock to prevent a change in control of our Company, depriving common shareholders of an opportunity to sell their stock at a price in excess of the prevailing market price.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~None.~~Recent Sales of Unregistered Securities

Aside from what has been disclosed in our Registration Statement on Form S-1/A dated February 13, 2019, amended December 10, 2019, September 14, 2020 and September 29, 2020, and Registration Statement on Form S-8 dated September 25, 2020, Registration Statement on Form S-1 dated October 28, 2020 and amended on January 15, 2021, Registration Statement on Form S-1 dated June 30, 2021, amended on July 6, 2021 and July 14, 2021, Registration Statement on Form S-1 dated February 25, 2022 and amended March 1, 2022, we have issued the following pursuant to conversions of amounts due under convertible promissory notes. Otherwise, we have not sold unregistered securities in the past 2 years without registering the securities under the Securities Act of 1933.

2023 Conversions

Date

Principal

Accrued
Int & Fees

Share
Amounts

Price Per
Share

FirstFire

2/14/2023

60,000

—

50,000,000

0.0012

2/27/2023

78,000

—

65,000,000

0.0012

3/14/2023

78,000

—

65,000,000

0.0012

7/24/23

96,000

—

80000000

0.0012

11/8/2023

102,000

—

85,000,000

0.0012

414,000

—

345,000,000

Cavalry Investment

1/30/2023

22,000

18,333,334

0.0012

2/17/2023

27,000

—

22,500,000

0.0012

49,000

—

40,833,334

Cavalry Fund I

1/30/2023

44,000

36,666,667

0.0012

2/17/2023

54,000

—

45,000,000

0.0012

3/8/2023

33,230

—

36,922,043

0.0009

131,230

—

118,588,710

1800 Diagonal

1/4/2023

35,000

31,818,182

0.0011

1/6/2023

40,000

—

36,363,636

0.0011

1/17/2023

50,000

—

41,666,667

0.0012

1/20/2023

21,094

—

17,577,958

0.0012

8/10/23

17,000

—

25,000,000

0.0007

10/31/23

14,000

—

93,333,333

0.00015

11/7/23

35,530

—

93,500,000

0.00038

212,624

—

339,259,776

Total Conversions 2023

806,854

—

843,681,820

39
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2022 Conversions

Date

Principal

Accrued
Int & Fees

Share
Amounts

Price Per
Share

FirstFire

9/15/2022

59,160

—

17,000,000

0.0035

10/19/2022

61,875

—

50,000,000

0.0012

12/14/2022

125,625

—

50,000,000

0.0025

246,660

—

117,000,000

Talos

9/1/2022

271,750

28,925

40,090,000

0.0075

271,750

28,925

40,090,000

Blue Lake

9/8/2022

263,585

96,863

48,059,600

0.0075

263,585

96,863

48,059,600

Cavalry Investment

11/15/2022

18,000

—

15,000,000

0.0012

18,000

—

15,000,000

Cavalry Fund I

10/25/2022

—

25,000

20,161,290

0.0012

11/15/2022

36,000

—

30,000,000

0.0012

36,000

—

50,161,290

1800 Diagonal

11/17/2022

25,000

—

20,833,333

0.0012

12/22/2022

40,000

—

20,000,000

0.0020

12/30/2022

25,000

—

22,727,273

0.0011

90,000

—

63,560,606

Total Conversions 2022

925,995

147,288

333,871,496

We have filed Forms with the SEC related to convertible promissory notes for which the underlying common shares have not been registered. Details of the convertible promissory notes can be found at http://sec.gov.
40
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Exemption From Registration Claimed
All of the above sales by us of our unregistered securities were made by us in reliance upon Rule 506 of Regulation D and Section 4(a)(5) of the Securities Act of 1933, as amended (the "1933 Act"). All of the individuals and/or entities that purchased the unregistered securities were primarily existing shareholders, known to us and our management, through pre-existing business relationships, as long-standing business associates and employees. All purchasers were provided access to all material information, which they requested, and all information necessary to verify such information and were afforded access to our management in connection with their purchases. All purchasers of the unregistered securities acquired such securities for investment and not with a view toward distribution, acknowledging such intent to us. All certificates or agreements representing such securities that were issued contained restrictive legends, prohibiting further transfer of the certificates or agreements representing such securities, without such securities either being first registered or otherwise exempt from registration in any further resale or disposition.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

~~None.~~The Company is in default under all of its derivative financial instruments and has accounted for these defaults under each agreements default provisions. In February 2022, the Company defaulted on its FirstFire, Cavalry Investment, and Cavalry Fund I Notes for failure to uplist within one hundred twenty (120) days from the date of the Notes. Talos, Blue Lake and 1800 Diagonal are in default from cross default provisions. In total, $916,895 was recorded as interest expense representing additional principal and interest because of default. Notice of default was received from EMA for not reserving enough shares for conversion and for not having filed a Form S-1 Registration Statement with the Securities and Exchange Commission. It was the intent of the Company to pay back all derivative securities prior to the due dates but that has not occurred in case of EMA. As such, the Company is currently in negotiations with EMA and relative to extending the due date and changing terms on the Note. The Company has been named in a lawsuit by EMA for failing to comply with a Securities Purchase Agreement entered into in June 2019.

ITEM 4. MINE SAFETY DISCLOSURE

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibits.The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K.

~~31.1~~ Exhibit No.		Description
31.1		Certification of Chief Executive Officer Pursuant to Rule 13a–14(a) or 15d-14(a) of the Securities Exchange Act of 1934
31.2		Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934
32.1		Certification of Chief Executive Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document ~~(1)~~- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		XBRL Taxonomy Extension Schema Document ~~(1)~~
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document ~~(1)~~
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document ~~(1)~~
101.LAB		XBRL Taxonomy Extension Label Linkbase Document ~~(1)~~
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document ~~(1)~~
104		Cover Page Interactive Data File (formatted as an Inline XBRL document and included in Exhibit 101)


~~(1)~~	Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.42

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~~SIGNATURES~~SIGNATURES

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

	TPT GLOBAL TECH, INC.
	(Registrant)

Dated: ~~May 20, 2019~~December 15, 2023	By:	~~/s/~~ /s/ Stephen J. Thomas, III
		Stephen J. Thomas, III
		(Chief Executive Officer, Principal Executive Officer)
		~~Officer)~~
Dated: December 15, 2023	By:
~~Dated: May 20, 2019~~	~~By:~~	~~/s/~~ /s/ Gary L. Cook
		Gary L. Cook
		(Chief Financial Officer, Principal Accounting Officer)


		~~Officer)~~43

	March 31,		December 31
	2019		2018
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	510,970	$	31,786
Accounts receivable, net		71,245		48,922
Prepaid expenses and other current assets		1,767		36,111
Total current assets	$	583,982	$	116,819
NON-CURRENT ASSETS
Property and equipment, net	$	2,975,235	$	3,046,942
Intangible assets, net		6,465,580		6,671,582
Goodwill		924,361		924,361
Deposits and other assets		66,996		62,013
Total non-current assets	$	10,432,172	$	10,704,898

TOTAL ASSETS	$	11,016,154	$	10,821,717

Current liabilities
Accounts payable and accrued expenses	$	5,401,935	$	4,993,970
Deferred revenue		32,043		6,450
Customer deposits		338,725		338,725
Business loans, advances and agreements		766,936		716,936
Current portion of convertible notes payable, net of discount		41,336		10,000
Notes payable - related parties, net of discount		9,296,492		9,137,982
Current portion of convertible notes payable – related parties, net of discounts		192,938		202,688
Derivative liabilities		2,208,416		—
Financing lease liabilities		137,890		138,774
Financing lease liabilities – related party		605,508		598,490
Total current liabilities	$	19,022,219	$	16,144,015

NON-CURRENT LIABILITIES
Convertible note payable, net of current portion and discounts	$	5,000	$	5,000
Convertible notes payable – related parties, net of current portion and discounts		722,500		599,200
Total non-current liabilities		727,500		604,200
Total liabilities	$	19,749,719	$	16,748,215

Commitments and contingencies – See Note 7		—		—

STOCKHOLDERS' DEFICIT Preferred stock, $.001 par vaue 100,000,000 shares authorized:
Convertible Preferred Series A, 1,000,000 designated - 1,000,000 shares issued and outstanding as of March 31, 2019 and December 31, 2018	$	1,000		$	1,000
Convertible Preferred Series B, 3,000,000 designated - 2,588,693 shares issued and outstanding as of March 31, 2019 and December 31, 2018		2,589			2,589
Convertible Preferred Series C – 3,000,000 shares designated, zero shares issued and outstanding as of March 31, 2019 and December 31, 2018		—			—
Common stock, $.001 par value, 1,000,000,000 shares authorized, 136,953,904 shares issued and outstanding as of March 31, 2019 and December 31, 2018		136,954			136,954
Subscriptions payable		269,569			168,006
Additional paid-in capital		12,640,597			12,567,881
Accumulated deficit		(21,784,274	)		(18,802,928	)
Total stockholders' deficit		(8,733,565	)		(5,926,498	)

Total liabilities and stockholders' DEFICIT	$	11,016,154		$	10,821,717


	For the three months ended March 31,
	2019			2018

Revenues:
Products	$	18,683		$	41,650
Services		142,793			208,568
Total Revenues	$	161,476		$	250,218

COST OF SALES:
Products	$	20,500		$	42,500
Services		241,868			221,795
Total Costs of Sales	$	262,368		$	264,295
Gross profit (loss)	$	(100,892	)	$	(14,077	)
EXPENSES:
Sales and marketing	$	—		$	18,886
Professional		512,540			355,408
Payroll and related		197,541			182,739
General and administrative		222,011			192,588
Depreciation		71,707			43,873
Amortization		206,002			199,600
Total expenses	$	1,209,801		$	993,094

OTHER INCOME (EXPENSE)
Derivative expense		(1,540,416	)		—
Interest expense		(130,237	)		(30,410	)
Total other income expenses	$	(1,670,653	)	$	(30,410	)

Net loss before income taxes		(2,981,346	)		(1,037,581	)
Income taxes		—			—
NET LOSS	$	(2,981,346	)	$	(1,037,581	)

Loss per common share-basic and diluted	$	(0.02	)	$	(0.01	)

Weighted-average common shares outstanding-basic and diluted		136,953,904			136,953,904

	Series A Preferred Stock				Series B Preferred Stock				Common Stock				Subscriptions			Additional Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Payable (Receivable)			Capital		Deficit			Total
Balance as of December 31, 2017		1,000,000	$	1,000		2,588,693	$	2,589		136,953,904	$	136,954	$	(4,765	)	$	10,371,442	$	(13,425,439	)	$	(2,918,219	)

Issuance of stock and stock options for services		—		—		—		—		—		—		254,306			14,224		—			268,530

Cash received for common stock to be contributed by officer		—		—		—		—		—		—		122,000			—		—			122,000
Net loss		—		—		—		—		—		—		—			—	$	(1,037,581	)	$	(1,037,581	)
Balance as of March 31, 2018		1,000,000	$	1,000		2,588,693	$	2,589		136,953,904	$	136,954	$	371,541		$	10,385,666	$	(14,463,020	)	$	(3,565,270	)

	Series A Preferred Stock				Series B Preferred Stock				Common Stock				Subscriptions		Additional Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Payable (Receivable)		Capital		Deficit			Total
Balance as of December 31, 2018		1,000,000	$	1,000		2,588,693	$	2,589		136,953,904	$	136,954	$	168,006	$	12,567,881	$	(18,802,928	)	$	(5,926,498	)


Issuance of stock and stock options for services		—		—		—		—		—		—		101,563		72,716		—			174,279


Net Loss		—		—		—		—		—		—		—		—	$	(2,981,346	)	$	(2,981,346	)

Balance as of March 31, 2019		1,000,000	$	1,000		2,588,693	$	2,589		136,953,904	$	136,954	$	269,569	$	12,640,597	$	(21,784,274	)	$	(8,733,565	)

	2019		2018
Discount on derivative financial instruments	$	668,000	$	—
	$	—	$	—

	For the three months ended March 31, 2019		For the three months ended March 31, 2018
Copperhead Digital	$	67,700	$	122,735
K Telecom		18,683		41,650
San Diego Media		13,343		71,405
Blue Collar		61,750		—
P2P		—		14,428
Total Revenue	$	161,476	$	250,218

Derivative Instrument	Fair Value
Fair value of Geneva Roth Convertible Promissory Note	$	82,016
Fair value of Auctus Convertible Promissory Note	$	2,082,832
Fair value of Warrants issued with Auctus Convertible Promissory Note	$	43,568

	2019			2018
Property and equipment:
Telecommunications fiber and equipment	$	3,274,045			3,274,045
Film production equipment		369,903			369,903
Office furniture and equipment		82,014			82,104
Leasehold improvements		18,679			18,679
		3,744,641			3,744,641
Accumulated depreciation		(769,406	)		(697,699	)
Property and equipment, net	$	2,975,235			3,046,942

	2019			2018
Business loans and advances, net of discounts (1)	$	665,692			615,692
Convertible notes payable, net of discounts (2)		46,336			15,000
Factoring agreement (3)		101,244			101,244
Debt – third party	$	813,272			731,936

Line of credit, related party secured by assets (4)	$	3,043,390			3,043,390
Debt– other related party, net of discounts (5)		5,935,159			5,912,898
Convertible debt – related party (2)		915,438			801,888
Shareholder debt (6)		317,943			181,694
Debt – related party	$	10,211,930			9,939,870

Total financing arrangements	$	11,025,202			10,671,806

Less current liabilities:
Business loans, advances and agreements	$	(766,936	)		(716,936	)
Convertible notes payable, net of discount		(41,336	)		(10,000	)
Notes payable – related parties, net of discount		(9,296,492	)		(9,137,982	)
Convertible notes payable – related party		(192,938	)		(202,688	)
		(10,297,702	)		(10,067,606	)
Total non-current liabilities	$	727,500			604,200

	Debt Derivative Liabilities
Balance, December 31, 2018	$	—
Debt discount from initial derivative		668,000
Initial fair value of derivative liabilities in excess of debt discounts		1,838,410
Change in fair value of derivative liabilities at end of period		(297,994	)
Balance, March 31, 2019	$	2,208,416
Derivative expense for the three months ended March 31, 2019	$	1,540,416

	Options Outstanding		Vested		Vesting Period	Exercise Price Outstanding and Exercisable		Expiration Date
December 31, 2017		93,120		93,120	100% at issue		$0.05 to $0.22	12-31-19
Granted		3,000,000		—	12 to 18 months	$	0.10	2-28-20 to 3-20-21
December 31, 2018		3,093,120		1,954,230			$0.05 to $0.22	12-31-19 to 3-20-21
Granted		—
March 31, 2019		3,093,120		2,176,453			$0.05 to $0.22	12-31-19 to 3-20-21

	2019		2018
Accounts payable:
Related parties (1)	$	881,861	$	741,577
General operating		3,250,506		3,036,601
Credit card balances		253,374		246,949
Accrued interest on debt		352,771		306,318
Other accrued expenses;		33,066		33,063
Taxes and fees payable		630,357		629,462
Total	$	5,401,935	$	4,993,970

Obligation	2019		In Default		Accrued Interest		Total
Telecom Equipment Finance (1)	$	449,103		—		156,405	$	605,508
Telecommunications Equipment (2)		—		101,347		33,624		134,971
Production Equipment Lease (3)		2,919		—		—		2,919
Total	$	452,022		101,347		190,029	$	743,398

	Gross carrying amount (1)		Accumulated Amortization			Net Book Value		Useful Life
Customer Base	$	1,947,200		(1,390,382	)		556,818		3-10
Developed Technology	$	6,105,600		(1,228,671	)		4,876,929		9
Film Library	$	957,000		(50,750	)		906,250		11
Trademarks and Tradenames	$	132,000		(6,417	)		125,583		12
	$	9,141,800		(2,676,220	)		6,465,580

Goodwill	$	924,361		—			924,361

	Gross carrying amount		Accumulated Amortization			Net Book Value		Useful Life
Customer Base	$	1,947,200		(1,374,933	)		572,267		3-10
Developed Technology	$	6,105,600		(1,059,070	)		5,046,530		9
Film Library	$	957,000		(32,700	)		924,300		11
Trademarks and Tradenames	$	132,000		(3,515	)		128,485		12
	$	9,141,800		(2,470,218	)		6,671,582

Goodwill	$	924,361		—			924,361

	2019			2018
Revenue	$	3,656,169		$	4,860,635
Cost of Sales		2,789,364			2,759,446
Gross Profit	$	866,805		$	2,101,189
Operating expenses		(1,637,207	)		(2,274,711	)
Derivative expense		(1,567,677	)
Interest expense		(130,237	)		(30,410	)
Income taxes		—			—
Net Loss	$	(2,468,316	)	$	(203,931	)

	2023			2022
Loans and advances (1)	$	470,092		$	470,092
Convertible notes payable (2)		3,424,556			3,054,869
Factoring agreements (3)		532,467			577,177
Debt – third party	$	4,427,115		$	4,102,138

Line of credit, related party secured by assets (4)	$	2,742,929		$	2,742,929
Debt– other related party, net of discounts (5)		2,015,500			2,015,500
Convertible debt – related party (6)		553,100			553,100
Shareholder debt (7)		144,081			4,150
Debt – related party	$	5,455,610		$	5,315,679

Total financing arrangements	$	9,882,725		$	9,417,817

Less current portion:
Loans, advances and factoring agreements – third party	$	(1,002,559	)	$	(902,809	)
Convertible notes payable third party		(3,424,556	)		(3,054,869	)
Debt – related party, net of discount		(4,902,510	)		(4,762,579	)
Convertible notes payable– related party		(553,100	)		(553,100	)
		(9,882,725	)		(9,273,357	)
Total long term debt	$	—		$	144,460

	Debt Derivative Liabilities
Balance, December 31, 2021	$	4,042,910
Change in derivative liabilities from new notes payable		622,518
Change in derivative liabilities from conversion of notes payable		(493,101	)
Change in fair value of derivative liabilities at end of period – derivative expense		650,071
Balance, December 31, 2022	$	4,822,398
Change in derivative liabilities from new notes payable		477,414
Change in derivative liabilities from conversion of notes payable		(728,143	)
Change in fair value of derivative liabilities at end of period – derivative expense (gain)		(367,881	)
Balance, September 30, 2023	$	4,203,788

Unissued shares for TPT consulting agreements	3,000,000
Shares receivable under terminated acquisition agreement	(3,096,181	)
Net commitment	(96,181	)

Accounts payable:	2023		2022
Related parties (1)	$	1,186,459	$	831,502
General operating		5,511,334		5,395,422
Accrued interest on debt (2)		2,732,093		2,095,955
Credit card balances		152,217		167,517
Accrued payroll and other expenses		1,574,182		951,022
Taxes and fees payable		642,640		642,640
Total	$	11,798,925	$	10,084,058

	(1)	Relates to amounts due to management and members of the Board of Directors according to verbal and written agreements that have not been paid as of period end.
	(2)	Portion relating to related parties is $990,494 and $842,340 September 30, 2023 and December 31, 2022, respectively.

2023	$	6,974,583
2024		797,193
2025		497,261
2026		147,486
2027		7,032
Thereafter		66,000
Total operating lease liabilities		8,489,555
Amount representing interest		(348,254	)
		8,141,301

	(1)	Holder of the Series A Preferred Stock which is Stephen J. Thomas, is guaranteed 60% of the then outstanding common stock upon conversion. The Company would have to authorize additional shares for this to occur as only 4,500,000,000 shares were authorized as of September 30, 2023.
	(2)	Holders of the Series D Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series D Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series D Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.
	(3)	Holders of the Series E Preferred Stock may decide after 12 months to convert to common stock @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00. There is also an automatic conversion of the Series E Preferred Stock without consent of holders upon any national exchange listing approval and the registration effectiveness of common stock underlying the conversion rights. The automatic conversion to common from Series E Preferred shall be @ 75% of the 30 day average market closing price (for previous 30 business days) divided into $5.00.

2023
	TPT SpeedConnect			Blue Collar			TPT MedTech and QuikLabs			Corporate and other			Total
Revenue	$	800,617			79,063			—			43,571		$	923,251
Cost of revenue	$	(698,781	)		(3,642	)		—			(37,090	)	$	(739,513	)
Net income (loss)	$	(372,794	)		(72,359	)		(20	)		(187,625	)	$	(257,548	)
Depreciation and amortization	$	—			—			—
Derivative gain (expense)	$	—			—			—			(1,015,764	)	$	1,015,764
Gain (loss) on debt extinguishment	$	—			—			—			133,850			133,850
Interest expense	$	—			(2,592	)		—			(410,143	)	$	(412,735	)
Total assets	$	23,968			89,486			3,816			1,241,550		$	1,358,820

Assets of IST	$	633,095
Liabilities of IST		759,196
Net liabilities of IST recognized as gain on disposal of discontinued operations	$	126,101

2023 Conversions
	Date	Principal		Accrued Int & Fees		Share Amounts		Price Per Share
FirstFire	2/14/2023		60,000		—		50,000,000		0.0012
	2/27/2023		78,000		—		65,000,000		0.0012
	3/14/2023		78,000		—		65,000,000		0.0012
	7/24/23		96,000		—		80000000		0.0012
	11/8/2023		102,000		—		85,000,000		0.0012
			414,000		—		345,000,000

Cavalry Investment	1/30/2023		22,000				18,333,334		0.0012
	2/17/2023		27,000		—		22,500,000		0.0012
			49,000		—		40,833,334

Cavalry Fund I	1/30/2023		44,000				36,666,667		0.0012
	2/17/2023		54,000		—		45,000,000		0.0012
	3/8/2023		33,230		—		36,922,043		0.0009
			131,230		—		118,588,710

1800 Diagonal	1/4/2023		35,000				31,818,182		0.0011
	1/6/2023		40,000		—		36,363,636		0.0011
	1/17/2023		50,000		—		41,666,667		0.0012
	1/20/2023		21,094		—		17,577,958		0.0012
	8/10/23		17,000		—		25,000,000		0.0007
	10/31/23		14,000		—		93,333,333		0.00015
	11/7/23		35,530		—		93,500,000		0.00038
			212,624		—		339,259,776

Total Conversions 2023			806,854		—		843,681,820

2022 Conversions
	Date	Principal		Accrued Int & Fees		Share Amounts		Price Per Share
FirstFire	9/15/2022		59,160		—		17,000,000		0.0035
	10/19/2022		61,875		—		50,000,000		0.0012
	12/14/2022		125,625		—		50,000,000		0.0025
			246,660		—		117,000,000

Talos	9/1/2022		271,750		28,925		40,090,000		0.0075
			271,750		28,925		40,090,000

Blue Lake	9/8/2022		263,585		96,863		48,059,600		0.0075
			263,585		96,863		48,059,600

Cavalry Investment	11/15/2022		18,000		—		15,000,000		0.0012
			18,000		—		15,000,000

Cavalry Fund I	10/25/2022		—		25,000		20,161,290		0.0012
	11/15/2022		36,000		—		30,000,000		0.0012
			36,000		—		50,161,290

1800 Diagonal	11/17/2022		25,000		—		20,833,333		0.0012
	12/22/2022		40,000		—		20,000,000		0.0020
	12/30/2022		25,000		—		22,727,273		0.0011
			90,000		—		63,560,606

Total Conversions 2022			925,995		147,288		333,871,496