| CRITICAL ACCOUNTING POLICIES | NOTE
2. CRITICAL ACCOUNTING POLICIES The
following are summarized accounting policies considered to be critical by our management: Going
Concern Since
our inception, our expenses substantially exceeded our revenue, resulting in continuing losses and an accumulated deficit of approximately
$ 3
million as of June 30,
2024. These financial statements have been prepared
on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve
months from the date these financial statements were issued. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary should
the Company be unable to continue as a going concern. The Company’s continuation as a going concern is contingent upon its ability
to obtain additional financing and to generate revenue and cash flow to meet its obligations on a timely basis. The Company will continue
to seek to raise additional funding through debt or equity financing during the next twelve months from the date of issuance of these
financial statements. Management believes that actions presently being taken to obtain additional funding provide the opportunity for
the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving these objectives. Basis
of Consolidation The
accompanying consolidated financial statements include the accounts of Bitech Technologies Corporation and its wholly owned subsidiaries,
Bitech Mining Corporation, Emergen Energy LLC and Quad Video Halo, Inc. All material intercompany transactions have been eliminated upon consolidation. Revenue
recognition The
Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes
principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s
contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer
of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange
for those goods or services recognized as performance obligations are satisfied. We
have assessed the impact of the guidance by performing the following five steps analysis: Step
1: Identify the contract Step
2: Identify the performance obligations Step
3: Determine the transaction price Step
4: Allocate the transaction price Step
5: Recognize revenue Substantially
all of the Company’s revenue is derived from leasing equipment. The Company considers a signed lease agreement to be a contract
with a customer. Contracts with customers are considered to be short-term when the time between signed agreements and satisfaction of
the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The
Company recognizes revenue when services are provided to customers in an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those services. The Company typically satisfies its performance obligations in contracts with
customers upon delivery of the services. The Company does not have any contract assets since we have an unconditional right to consideration
when we have satisfied its performance obligation and payment from customers is not contingent on a future event. Generally, payment
is due from customers immediately at the invoice date, and the contracts do not have significant financing components nor variable consideration.
There are no returns and there is no allowances. All of the Company’s contracts have a single performance obligation satisfied
at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company’s
historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimate
is made. Fair
Value of Financial Instruments Cash,
accounts receivable, accounts payable, accrued liabilities and notes payable as reflected in the consolidated financial statements, approximates
fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the
financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore
cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Cash
and Cash Equivalents Cash
and cash equivalents consist of liquid investments with original maturities of three months or less. Cash equivalents are stated at cost,
which approximates fair value. We maintain cash and cash equivalents in banks which at times may exceed federally insured limits. We
have not experienced any losses on these deposits. Property
and Equipment Property
and equipment are carried at cost. When retired or otherwise disposed of, the related carrying cost and accumulated depreciation are
removed from the respective accounts, and the net difference, less any amount realized from the disposition, is recorded in operations.
Maintenance and repairs are charged to operating expenses as incurred. Costs of significant improvements and renewals are capitalized. Deferred
Offering Costs Deferred
offering costs consist of legal, accounting, and underwriter costs incurred through the balance sheet date that are directly related
to the offering and that will be charged to shareholders’ equity upon the completion of the offering. As of June 30, 2024, the
Company had deferred offering costs of $ 93,830 Intangible Asset – BESS and Solar Development Projects Intangible assets determined to have indefinite
useful lives are not amortized but are tested for impairment annually, or more frequently if
events or changes in circumstances indicate the assets may be impaired . To the extent that an
intangible asset is successfully developed into a revenue-generating asset, it will become a component of property, plant and equipment.
To the extent that an intangible asset is not successfully developed into a revenue-generating assets, it will be considered impaired
and charged to operations at that time. The estimation of the fair value of the projects
requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection
and use of an appropriate discount rate. The estimates of the fair value of the projects are based on the best information available
as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating
cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may may Long-Lived
Assets We
periodically review and evaluate long-lived assets when events and circumstances indicate that the carrying amount of these assets may
not be recoverable. In performing our review for recoverability, we estimate the future cash flows expected to result from the use of
such assets and its eventual disposition. If the sum of the expected undiscounted future operating cash flows is less than the carrying
amount of the related assets, an impairment loss is recognized in the consolidated statements of operations. Measurement of the impairment
loss is based on the excess of the carrying amount of such assets over the fair value calculated using discounted expected future cash
flows. Concentrations
of Credit Risk Assets
that expose us to credit risk consist primarily of cash and accounts receivable. Our accounts receivable arise from a diversified
customer base and, therefore, we believe the concentration of credit risk is minimal. We evaluate the creditworthiness of customers
before any services are provided. We record a discount based on the nature of our business, collection trends, and an assessment of
our ability to fully realize amounts billed for services. We have no accounts receivable to warrant any allowance at June 30, 2024
and December 31, 2023. Stock
Based Compensation We
account for the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors,
including employee stock options, based on estimated fair values. Under authoritative guidance issued by the Financial Accounting Standards
Board (“FASB”), companies are required to estimate the fair value or calculated value of share-based payment awards on the
date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the
requisite service periods in our consolidated statements of operations. We use the Black-Scholes Option Pricing Model to determine the
fair-value of stock-based awards. During the six month periods ended June 30, 2024 and 2023, we recognized stock based compensation expenses
of $ 588,080 102,600 Income
Taxes We
account for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized
based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and
liabilities and their respective tax basis. We establish a valuation allowance to the extent that it is more likely than not that deferred
tax assets will not be utilized against future taxable income. Uncertain
Tax Positions Accounting
Standards Codification “ASC” Topic 740-10-25 defines the minimum threshold a tax position is required to meet before being
recognized in the financial statements as “more likely than not” (i.e., a likelihood of occurrence greater than fifty percent).
Under ASC Topic 740-10-25, the recognition threshold is met when an entity concludes that a tax position, based solely on its technical
merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify
for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved
through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax
position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely
than not threshold of being sustained. We
are subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, we may incur additional tax
expense based upon the outcomes of such matters. When applicable, we will adjust tax expense to reflect our ongoing assessments of such
matters which require judgment and can materially increase or decrease our effective rate as well as impact operating results. Under
ASC Topic 740-10-25, only the portion of the liability that is expected to be paid within one year is classified as a current liability.
As a result, liabilities expected to be resolved without the payment of cash (e.g. resolution due to the expiration of the statute of
limitations) or are not expected to be paid within one year are not classified as current. Estimated interest and penalties are recognized
as income tax expense and tax credits as a reduction in income tax expense. For the six months ended June 30, 2024 and year ended December
31, 2023, we recognized no Legal
Costs and Contingencies In
the normal course of business, we incur costs to hire and retain external legal counsel to advise us on regulatory, litigation and other
matters. We expense these costs as the related services are received. If
a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If we have
the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce
the estimated loss if recovery is also deemed probable. Net
Loss per Share Basic
and diluted net loss per common share is presented in accordance with ASC Topic 260, “Earnings per Share,” for all periods
presented. During the six months ended June 30, 2024 and 2023, common stock equivalents from outstanding stock options and warrants have
been excluded from the calculation of the diluted loss per share in the consolidated statements of operations, because all such securities
were anti-dilutive. The net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding
during the periods. Recent
Accounting Pronouncements Not Yet Adopted In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments. ASU No. 2016-13 eliminates the probable initial recognition threshold in current generally accepted accounting
principles (“GAAP”) and, instead, requires the measurement of all expected credit losses for financial assets held at the
reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, ASU No. 2016-13
amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.
In November 2019, the FASB issued ASU No. 2019-10 to amend the effective date for entities that had not yet adopted ASU No. 2016-13.
Accordingly, the provisions of ASU No. 2016-13 are effective for annual periods beginning after December 15, 2022, with early application
permitted in annual periods beginning after December 15, 2018. The amendments of ASU No. 2016-13 should be applied through a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management is currently
evaluating the future impact of ASU No. 2016-13 on the Company’s consolidated financial position, results of operations and disclosures. | NOTE
2. SUMMARY OF CRITICAL ACCOUNTING POLICIES The
following are summarized accounting policies considered to be critical by our management: Going
Concern Since
our inception, our expenses substantially exceeded our revenue, resulting in continuing losses and an accumulated deficit of approximately
$ 3 million
as of June 30, 2024. Basis
of Consolidation The
accompanying consolidated financial statements include the accounts of Bitech Technologies Corporation. and its wholly owned subsidiary,
Quad Video Halo, Inc. All material intercompany transactions have been eliminated upon consolidation. Revenue
recognition The
Company adopted Accounting Standards Codification (“ASC”) 606. ASC 606, Revenue from Contracts with Customers, establishes
principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s
contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer
of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange
for those goods or services recognized as performance obligations are satisfied. We
have assessed the impact of the guidance by performing the following five steps analysis: Step
1: Identify the contract Step
2: Identify the performance obligations Step
3: Determine the transaction price Step
4: Allocate the transaction price Step
5: Recognize revenue Substantially
all of the Company’s revenue is derived from leasing equipment. The Company considers a signed lease agreement to be a contract
with a customer. Contracts with customers are considered to be short-term when the time between signed agreements and satisfaction of
the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The
Company recognizes revenue when services are provided to customers in an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those services. The Company typically satisfies its performance obligations in contracts with
customers upon delivery of the services. The Company does not have any contract assets since we have an unconditional right to consideration
when we have satisfied its performance obligation and payment from customers is not contingent on a future event. Generally, payment
is due from customers immediately at the invoice date, and the contracts do not have significant financing components nor variable consideration.
There are no returns and there is no allowances. All of the Company’s contracts have a single performance obligation satisfied
at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company’s
historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimate
is made. Fair
Value of Financial Instruments Cash,
accounts receivable, accounts payable, accrued liabilities and notes payable as reflected in the consolidated financial statements, approximates
fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the
financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore
cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Cash
and Cash Equivalents Cash
and cash equivalents consist of liquid investments with original maturities of three months or less. Cash equivalents are stated at cost,
which approximates fair value. We maintain cash and cash equivalents in banks which at times may exceed federally insured limits. We
have not experienced any losses on these deposits. Property
and Equipment Property
and equipment are carried at cost. When retired or otherwise disposed of, the related carrying cost and accumulated depreciation are
removed from the respective accounts, and the net difference, less any amount realized from the disposition, is recorded in operations.
Maintenance and repairs are charged to operating expenses as incurred. Costs of significant improvements and renewals are capitalized. Property
and equipment consist of computers and equipment and are depreciated over their estimated useful lives of three
years , using the straight-line method. Long-Lived
Assets We
periodically review and evaluate long-lived assets when events and circumstances indicate that the carrying amount of these assets may
not be recoverable. In performing our review for recoverability, we estimate the future cash flows expected to result from the use of
such assets and its eventual disposition. If the sum of the expected undiscounted future operating cash flows is less than the carrying
amount of the related assets, an impairment loss is recognized in the consolidated statements of operations. Measurement of the impairment
loss is based on the excess of the carrying amount of such assets over the fair value calculated using discounted expected future cash
flows. Concentrations
of Credit Risk Assets
that expose us to credit risk consist primarily of cash and accounts receivable. Our accounts receivable arise from a diversified customer
base and, therefore, we believe the concentration of credit risk is minimal. We evaluate the creditworthiness of customers before any
services are provided. We record a discount based on the nature of our business, collection trends, and an assessment of our ability
to fully realize amounts billed for services. We have no accounts receivable to warrant any allowance at December 31, 2023 or December
31, 2022. Stock
Based Compensation We
account for the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors,
including employee stock options, based on estimated fair values. Under authoritative guidance issued by the Financial Accounting Standards
Board (“FASB”), companies are required to estimate the fair value or calculated value of share-based payment awards on the
date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the
requisite service periods in our consolidated statements of operations. We use the Black-Scholes Option Pricing Model to determine the
fair-value of stock-based awards. During the years ended December 31, 2023 and 2022, we recognized $ 180,600 0 Income
Taxes We
account for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized
based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and
liabilities and their respective tax basis. We establish a valuation allowance to the extent that it is more likely than not that deferred
tax assets will not be utilized against future taxable income. Uncertain
Tax Positions Accounting
Standards Codification “ASC” Topic 740-10-25 defines the minimum threshold a tax position is required to meet before being
recognized in the financial statements as “more likely than not” (i.e., a likelihood of occurrence greater than fifty percent).
Under ASC Topic 740-10-25, the recognition threshold is met when an entity concludes that a tax position, based solely on its technical
merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify
for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved
through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax
position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely
than not threshold of being sustained. We
are subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, we may incur additional tax
expense based upon the outcomes of such matters. When applicable, we will adjust tax expense to reflect our ongoing assessments of such
matters which require judgment and can materially increase or decrease our effective rate as well as impact operating results. Under
ASC Topic 740-10-25, only the portion of the liability that is expected to be paid within one year is classified as a current liability.
As a result, liabilities expected to be resolved without the payment of cash (e.g. resolution due to the expiration of the statute of
limitations) or are not expected to be paid within one year are not classified as current. Estimated interest and penalties are recognized
as income tax expense and tax credits as a reduction in income tax expense. For the year ended December 31, 2023, we recognized no
estimated interest or penalties as income tax
expense. Legal
Costs and Contingencies In
the normal course of business, we incur costs to hire and retain external legal counsel to advise us on regulatory, litigation and other
matters. We expense these costs as the related services are received. If
a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If we have
the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce
the estimated loss if recovery is also deemed probable. Net
Loss per Share Basic
and diluted net loss per common share is presented in accordance with ASC Topic 260, “Earnings per Share,” for all periods
presented. During the years ended December 31, 2023 and 2022, common stock equivalents from outstanding stock options have
been excluded from the calculation of the diluted loss per share in the consolidated statements of operations, because all such securities
were anti-dilutive. The net loss per share is calculated by dividing the net loss by the weighted average number of shares outstanding
during the periods. The
following were potentially outstanding dilutive securities during the years ended December 31, 2023 and 2022, instruments: December
31, 2023 - 37,000,000
Potentially Dilutive Options December
31, 2022 – No
Potentially Dilutive Options Recent
Accounting Pronouncements Not Yet Adopted In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments. ASU No. 2016-13 eliminates the probable initial recognition threshold in current generally accepted accounting
principles (“GAAP”) and, instead, requires the measurement of all expected credit losses for financial assets held at the
reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, ASU No. 2016-13
amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.
In November 2019, the FASB issued ASU No. 2019-10 to amend the effective date for entities that had not yet adopted ASU No. 2016-13.
Accordingly, the provisions of ASU No. 2016-13 are effective for annual periods beginning after December 15, 2022, with early application
permitted in annual periods beginning after December 15, 2018. The amendments of ASU No. 2016-13 should be applied through a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management is currently
evaluating the future impact of ASU No. 2016-13 on the Company’s consolidated financial position, results of operations and disclosures. |
