Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 08, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-51007 | |
Entity Registrant Name | GZ6G Technologies Corp. | |
Entity Central Index Key | 0001286648 | |
Entity Tax Identification Number | 20-0452700 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 1 Technology Drive | |
Entity Address, Address Line Two | Bldg B | |
Entity Address, Address Line Three | Suite no. B123 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | (949) | |
Local Phone Number | 872-1965 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 133,956,722 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 332,541 | $ 507,152 |
Accounts receivable, net | 14,353 | 59,845 |
Prepaid expenses | 36,615 | 49,174 |
Other current assets | 15,949 | 15,949 |
Total current assets | 399,458 | 632,120 |
Property and equipment, net | 170,863 | 187,661 |
Right of use assets | 529,025 | 552,951 |
TOTAL ASSETS | 1,099,346 | 1,372,732 |
Current liabilities | ||
Accounts payable and accrued expenses | 678,867 | 565,857 |
Related party payables | 472,488 | 417,151 |
Deferred revenue | 173,230 | 172,000 |
Debt, current portion | 3,767 | 3,767 |
Debt, related parties | 1,440,825 | 1,440,825 |
Convertible notes, net of debt discount | 1,493,514 | 6,847,121 |
Lease liability, current portion | 93,549 | 91,604 |
Total current liabilities | 4,356,240 | 9,538,325 |
Debt, net of current portion | 44,000 | 44,000 |
Lease liability, net of current portion | 458,129 | 482,290 |
Total liabilities | 4,858,369 | 10,064,615 |
Stockholders’ deficit | ||
Common stock, $0.001 par, 1,000,000,000 shares authorized, 128,401,166 and 70,837,511 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 128,401 | 70,837 |
Additional paid in capital | 15,816,768 | 14,896,922 |
Accumulated deficit | (18,992,835) | (22,963,551) |
Total GZ6G Technologies Corp stockholders’ deficit | (3,027,666) | (7,975,792) |
Non-controlling interest | (731,357) | (716,091) |
Total stockholders’ deficit | (3,759,023) | (8,691,883) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,099,346 | 1,372,732 |
Series A Preferred Stock [Member] | ||
Stockholders’ deficit | ||
Preferred Stock, Value | 20,000 | 20,000 |
Series B Preferred Stock [Member] | ||
Stockholders’ deficit | ||
Preferred Stock, Value |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares issued | 128,401,166 | 70,837,511 |
Common Stock, shares outstanding | 128,401,166 | 70,837,511 |
Series A Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.004 | $ 0.004 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Series B Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
NET REVENUES | $ 70,547 | $ 3,000 |
OPERATING EXPENSES | ||
Cost of revenue | 39,277 | 1,088 |
Depreciation | 29,278 | 46,478 |
General and administrative | 714,979 | 532,187 |
General and administrative, related parties | 120,000 | 120,000 |
Professional fees | 76,190 | 22,800 |
Total operating expenses | 979,724 | 722,553 |
Loss from operations | (909,177) | (719,553) |
Other income (expense) | ||
Interest expense | (771,401) | (2,264,770) |
Gain on debt extinguishment | 5,636,028 | |
PPP loan forgiveness | 46,091 | |
Total other income (expense) | 4,864,627 | (2,218,679) |
Net income (loss) | 3,955,450 | (2,938,232) |
Less: net income (loss) attributable to non-controlling interest | (15,266) | (599) |
Net income (loss) attributable to GZ6G Technologies Corp. | $ 3,970,716 | $ (2,937,633) |
Net income (loss) per common share | ||
Basic | $ 0.04 | $ (0.12) |
Diluted | $ 0 | $ (0.12) |
Weighted average shares | ||
Basic | 100,813,294 | 25,185,033 |
Diluted | 1,798,609,474 | 25,185,033 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity Deficit - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 20,000 | $ 25,178 | $ 10,784,308 | $ (16,092,531) | $ (659,890) | $ (5,922,935) |
Beginning Balance, shares at Dec. 31, 2021 | 5,000,000 | 25,177,973 | ||||
Net income (loss) | (2,937,633) | (599) | (2,938,232) | |||
Shares issued as financing costs | $ 11 | 22,389 | 22,400 | |||
Shares issued as financing costs, shares | 10,769 | |||||
Ending balance, value at Mar. 31, 2022 | $ 20,000 | $ 25,189 | 10,806,697 | (19,060,164) | (660,489) | (8,838,767) |
Ending Balance, shares at Mar. 31, 2022 | 5,000,000 | 25,188,742 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 20,000 | $ 70,837 | 14,896,922 | (22,963,551) | (716,091) | (8,691,883) |
Beginning Balance, shares at Dec. 31, 2022 | 5,000,000 | 70,837,511 | ||||
Discount on debt, convertible notes issued | 418,502 | 418,502 | ||||
Convertible note proceeds allocated to warrants | 64,319 | 64,319 | ||||
Warrants issued as financing cost | 3,419 | 3,419 | ||||
Issuance of common stock for debt conversion | $ 57,564 | 433,606 | 491,170 | |||
Issuance of common stock for debt conversion, shares | 57,563,655 | |||||
Net income (loss) | 3,970,716 | (15,266) | 3,955,450 | |||
Ending balance, value at Mar. 31, 2023 | $ 20,000 | $ 128,401 | $ 15,816,768 | $ (18,992,835) | $ (731,357) | $ (3,759,023) |
Ending Balance, shares at Mar. 31, 2023 | 5,000,000 | 128,401,166 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 3,955,450 | $ (2,938,232) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
PPP loan forgiveness | (46,091) | |
Gain on note conversions | (5,636,028) | |
Amortization of debt discount and issuance cost | 539,376 | 2,178,671 |
Common stock issued as financing cost | 22,400 | |
Warrants issued as financing cost | 3,419 | |
Depreciation | 29,278 | 46,478 |
Amortization of right of use assets | 1,709 | 5,284 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 45,492 | |
(Increase) decrease in prepaid expenses | 12,559 | (10,093) |
Increase in accounts payable and accrued expenses | 267,502 | 69,893 |
Increase in related party payables | 55,337 | 41,434 |
Increase (decrease) in customer deposits | 1,230 | (28,000) |
Net cash used in operating activities | (724,676) | (658,256) |
Cash Flows from Investing Activities: | ||
Proceeds from credit of leaseholder improvement | 30,000 | |
Purchase of equipment | (12,480) | (54,114) |
Net cash used in investing activities | (12,480) | (24,114) |
Cash flows from financing activities: | ||
Refund of repayment to PPP loan | 5,702 | |
Repayments of convertible notes | (64,855) | |
Proceeds from convertible notes | 627,400 | 50,000 |
Net cash provided by financing activities | 562,545 | 55,702 |
Net decrease in cash | (174,611) | (626,668) |
Cash-beginning of period | 507,152 | 759,791 |
Cash-end of period | 332,541 | 133,123 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | ||
Income taxes paid | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Stock-settled debt liability | 360,258 | |
Shares issued under notices of conversion, principal | 735,709 | |
Shares issued under notices of conversion, accrued interest payable | 135,913 | |
Shares issued under notices of conversion, accounts payable | 20,148 | |
Shares issued under notices of conversion, stock-settled debt liability | 5,238,438 | |
Debt discount related to convertible notes and warrants | 482,821 | |
Accrued interest payable | $ 14,011 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1: ORGANIZATION AND DESCRIPTION OF BUSINESS GZ6G Technologies Corp. (formerly Green Zebra International Corp.) (the “Company” or “GZ6G”) is a complete enterprise smart solutions provider for large venues and cities. Focused on acquiring smart city solutions, developing innovative products, and overseeing smart cities and smart venues, GZ6G also assists in modernizing clients with innovative wireless IoT technology for the emerging 5G and Wi-Fi 6 marketplaces. Target markets include stadiums, airports, universities, and smart city projects. The Company is organized under the laws of the State of Nevada and has offices in California and Nevada. In November 2018, the Company changed its name from NanoSensors, Inc. to Green Zebra International Corp. following a merger with Green Zebra Media Corp., a Delaware corporation, under common control. The Board of Directors approved a name change and a reverse stock split of the Company’s issued and outstanding common shares at a ratio of 200 to 1 on December 18, 2019. The accompanying financial statements, and all share and per share information contained herein has been retroactively restated to reflect the reverse stock split. On December 20, 2019, the Company changed its name from Green Zebra International Corp. to GZ6G Technologies Corp. On August 6, 2021, Mr. William Ray Procanik and Mr. Brian Scott Hale were appointed to the Company’s board of directors and concurrently the Company formed an audit committee, which each of Mr. Hale and Mr. Procanik joined, serving as independent board members. Concurrently the Company completed an application for an uplist to the OTCQB and submitted the required disclosure through OTCMarkets. The Company was approved for trading on the OTCQB Venture Market on October 25, 2021. Going Concern These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies that th e Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of March 31, 2023, the Company had a working capital deficit of $3.96 million with approximately $0.3 million of cash on hand and an accumulated deficit of $19 million. During the three months ended March 31, 2023 the Company received net cash proceeds of $627,400 by way of a series of convertible promissory notes. The Company anticipates a need for up to a further $5 million in fiscal 2023 to meet its upgraded infrastructure requirements. In addition to the remaining funding which may be provided to the Company under various loan agreements, the Company is in the process of filing a follow-on registration statement on Form S-1 to facilitate additional funding up to a maximum of $10,000,000. There is no guarantee the Company will continue to receive financing as required. The continuation of the Company as a going concern is dependent upon the ability to raise additional equity and/or debt financing and the attainment of profitable operations from the Company’s future business. If the Company is unable to obtain adequate capital as needed, the Company may be required to reduce the scope, delay, or eliminate some or all of its planned operations. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements reflect all adjustments consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the results for the periods shown. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. COVID-19 Pandemic and other factors While the COVID-19 pandemic has subsided and the global economy is focused on recovery, the impact of COVID-19 could continue to have an adverse impact on the Company going forward. COVID-19 caused significant disruptions to the global financial markets, which may continue to impact the Company’s ability to raise additional capital and to pursue implementation of its planned smart city and related smart venue projects. Additional factors which may impact the Company’s ongoing operations include inflation, potential supply chain issues as a result of the aforementioned recovery from the COVID-19 pandemic, the recent war in the Ukraine, climate change and others. These events may have serious adverse impact on domestic and foreign economies which may impact the Company’s operations as a result of a variety of factors including the potential for reduced consumer spending and attendance at locations that use our services. The Company is unable to predict the ongoing impact of these factors on the Company’s consolidated financial operations. There are no assurances that the Company will be able to meet its obligations, raise funds or conclude the acquisition of identified businesses. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles GAAP have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2022 Form 10-K as filed with the Securities and Exchange Commission on April 17, 2023. Consolidation These unaudited condensed consolidated financial statements include the accounts of GZ6G Technology Corp. and its 60 Use of Estimates The preparation of these consolidated 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash and Cash Equivalents For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments with a maturity of three (3) months or less at the time of purchase. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2023 and December 31, 2022, the Company had $ 74,600 249,500 Property and Equipment Property and equipment are recorded at cost. Depreciation on property and equipment are determined using the straight-line method over the three to five year estimated useful lives of the assets. Research and Development Costs We charge research and development costs to operations as incurred in accordance with ASC 730-Research and Development, except in those cases in which such costs are reimbursable under customer funded contracts. These amounts are not reflected in the reported research and development expenses in each of the respective periods but are included in net sales with the related costs included in cost of sales in each of the respective periods. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Revenue Recognition The Company recognizes revenue in accordance with ASC 606 — Revenue from Contracts with Customers. The core principle of this standard is that a company should record revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Further under ASC 606, the Company recognizes revenue from licensing agreements and service-based contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. We earn revenue from service and sponsorship agreements, digital marketing and the sale of WiFi and communication solutions to customers across the United States. Revenue is earned from sales of our WiFi media platform and our WiFi monetization hardware (GZ Media hub) embedded with GZ software to create monetization and communication solutions for our customers. Our sales can consist of any one or a combination of items required by our customer including hardware, technology platforms and related support. We also enter into licensing contracts which provide for revenue based on licensing fees and revenue sharing with our licensees. As we expand, we expect a large portion of our revenue from our digital communication solutions to be derived from service-based contracts where we expect to recognize a significant portion of our contracts over time, as there is a continuous delivery of services to the customer over the contractual period of performance. These contracts may or may not include fixed payments for services over time and/or commission-based fees. Direct costs are expected to include materials, labor and overhead to be charged to work-in-progress (including our contracts-in-progress) inventory or cost of sales. Indirect costs relating to long-term contracts, are expected to include expenses such as general and administrative charges, and other costs will be charged to expense as incurred and will not be included in our work-in-process (including our contracts-in-progress) inventory or cost of sales. Total estimates are expected to be reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Estimated losses on long-term contracts are recorded in the period in which the losses become evident. If we do not accurately estimate the total sales, related costs and progress towards completion on our long-term contracts, the estimated gross margins may be significantly impacted, or losses may need to be recognized in future periods. Any such resulting changes in margins or contract losses could be material to our results of operations and financial condition. In addition, certain of our contracts will include termination for convenience or non-performance clauses that provide the customer with the right to terminate the contract. Such terminations could impact the assumptions regarding total contract revenues and expenses utilized in recognizing profit under those contracts where we apply the percentage-of-completion method of accounting. Changes to these assumptions could materially impact our results of operations and financial condition. As we fully implement our business model, our inability to perform on our long-term contracts could materially impact our results of operations and financial condition. Stock-Based Compensation We account for stock-based transactions in which the Company receives services from employees, non-employees, directors or others in exchange for equity instruments based on the fair value of the award at the grant date in accordance with ASC 718 – Compensation-Stock Compensation. Stock-based compensation cost for stock options or warrants is estimated at the grant date based on each instrument’s fair value as calculated by the Black-Scholes option pricing model. We recognize stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period for the award. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Debt Issue Costs The Company may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations as interest expense. Original Issue Discount If debt is issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized over the life of the debt to the statement of operations as interest expense. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. Stock Settled Debt In certain instances, the Company will issue convertible notes which contain a provision in which the price of the conversion feature is priced at a fixed discount to the trading price of the Company’s common shares as traded in the over-the-counter market. In these instances, the Company records a liability, in addition to the principal amount of the convertible note, as stock-settled debt for the fixed value transferred to the convertible note holder from the fixed discount conversion feature. As of March 31, 2023 and December 31, 2022, the Company had recorded within Convertible Notes, net of discount, the amount of $ 56,635 5,324,016 , respectively, Leases The Company follows ASC 842 Leases, which requires recognition of most leases on the balance sheet, specifically the recognition of right-to-use assets and related lease liabilities, and enhanced disclosures about leasing arrangements. The Company elected to apply the short-term scope exception for leases with terms of 12 months or less at the inception of the lease and will continue to recognize rent expense on a straight-line basis. Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures, defines fair value 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level of input that is significant to the fair value measurement of the instrument. Income Taxes The Company follows ASC 740 – Income Taxes, which requires the use of the asset and liability method of accounting for income taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Basic and Diluted Net Income (Loss) Per Share In accordance with ASC 260 – Earnings Per Share, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive. Potential common stock consists of the incremental common stock issuable upon convertible notes, classes of shares with conversion features. The computation of diluted loss per share for the three months ended March 31, 2022 excludes potentially dilutive securities of underlying share purchase warrants, convertible notes, and preferred shares, because their inclusion would be antidilutive. The table below reflects the potentially dilutive securities that have not been included in the computation of diluted net loss March 31, March 31, Convertible Notes 806,072,163 5,222,570 Stock purchase warrants 841,724,017 1,130,487 Series A Preferred shares (convertible to common at a ratio of 10 common for each 1 preferred) 50,000,000 50,000,000 Total 1,697,796,180 56,353,057 Recently Issued Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3: PROPERTY AND EQUIPMENT Property and equipment, net consists of the following March 31, December 31, Office equipment $ 192,647 $ 192,647 Leasehold improvements 12,813 12,813 Software 155,550 143,070 Total 361,010 348,530 Less: accumulated depreciation and amortization (190,147 ) (160,869 ) Total property and equipment, net $ 170,863 $ 187,661 Depreciation expense amounted to $ 29,278 46,478 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 4: OTHER CURRENT ASSETS Other current assets consist of the following March 31, December 31, Security deposits $ 14,691 $ 14,691 Other deposits and receivables 1,258 1,258 Total $ 15,949 $ 15,949 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5: DEBT Loan Treaty Agreement On December 21, 2020, the Company entered into a Loan Treaty Agreement with a third party (“Treaty Agreement”) whereby the lender agreed to provide a loan in the amount of up to $ 450,000 25,000 100,000 8 25,000 During the year ended December 31, 2021, the Company received weekly tranche deposits for an aggregate of $ 1,100,000 11,656,833 During the year ended December 31, 2022, the Company received a further $ 50,000 250,000 On October 27, 2021, the Company issued 2,051,282 400,000 0.195 On August 3, 2022, the Company issued 1,538,462 300,000 0.195 On February 28, 2023, the Company issued 3,135,146 500,000 111,353 0.195 The carrying value of funding tranches is as follows March 31, December 31, Principal $ - $ 500,000 Stock-settled liability 5,171,803 Total - 5,671,803 Unamortized debt discount - (20,726 ) Debt carrying value $ - $ 5,651,077 The interest expenses for the funding tranches are as follows Three Months Ended March 31, 2023 2022 Interest expense on notes $ 6,465 $ 15,551 Amortization of debt discount 20,726 2,119,741 Total: $ 27,191 $ 2,135,292 The accrued interest payable is as follows Balance, December 31, 2021 $ 50,981 Interest expense on the convertible notes 53,907 Balance, December 31, 2022 104,888 Interest expense on the convertible notes 6,465 Converted to shares (111,353 ) Balance, March 31, 2023 $ - GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Gain related to extinguishment Three Months ended March 31, 2023 Debt principal $ 500,000 Stock-settled liability 5,171,803 Interest payable 111,353 Total 5,783,156 Issuance of 3,135,146 shares of common stock (19,751 ) Gain on extinguishment of debt upon conversion $ 5,763,405 Convertible Debt with Warrant Agreement On November 11, 2021, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 560,000 504,000 12 1.00 560,000 1.00 On December 16, 2021, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 560,000 504,000 12 1.00 560,000 1.00 In accordance with ASC 470 – Debt, the proceeds in fiscal year 2021 of $ 1,008,000 616,027 1,120,000 On April 4, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 365,000 328,500 12 1.00 365,000 1.00 On May 23, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 440,000 396,000 12 0.30 1,466,667 0.30 On September 20, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 176,000 158,400 12 0.03 3,520,000 On November 3, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 160,000 144,000 12 0.02 2,400,000 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) On November 23, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 293,000 263,700 12 0.02 5,860,000 On December 20, 2022, the Company entered into a Promissory Note with an investor in which the investor agreed to lend the Company the principal amount of $ 293,000 263,700 12 0.015 5,860,000 In accordance with ASC 470 – Debt, the proceeds in the year ended December 31, 2022, of $ 1,554,300 792,824 1,571,666 On January 23, 2023, the Company entered into a Promissory Note with Mast Hill Fund, L.P. for the Principal Amount of $ 293,000 263,700 0.0035 12 11,720,000 On March 16, 2023, the Company entered into a Promissory Note with Mast Hill Fund, L.P. for the Principal Amount of $ 293,000 263,700 0.0035 12 11,720,000 In accordance with ASC 470 – Debt, the proceeds in the three months ended March 31, 2023, of $ 527,400 418,502 541,421 During the year ended December 31, 2022, the Company paid $ 281,000 31,781 During the year ended December 31, 2022, the Company issued an accumulated 21,990,255 During the three months ended March 31, 2023, the Company issued an accumulated 26,500,000 The carrying value of the tranches is as follows: Schedule of the carrying value of the tranches March 31, December 31, Principal $ 2,741,149 $ 2,847,000 Shares issued under conversion (111,960 ) (410,851 ) Repaid to principal - (281,000 ) Total 2,629,190 2,155,149 Unamortized debt discount (1,352,939 ) (1,280,068 ) Debt carrying value $ 1,276,251 $ 875,081 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) The interest expenses related to the tranches are as follows: Schedule of the interest expense related to the tranches Three Months Ended March 31, 2023 2022 Interest expense on notes $ 69,836 $ 33,140 Amortization of debt discount 468,550 58,930 Total: $ 538,386 $ 92,070 The accrued interest payable is as follows: Schedule of the accrued interest payable Balance, December 31, 2021 $ 13,340 Interest expense on the convertible notes 178,374 Shares issued under conversion (124,742 ) Repaid in cash (31,781 ) Balance, December 31, 2022 35,291 Interest expense on the convertible notes 69,836 Shares issued under conversion (11,030 ) Balance, March 31, 2023 $ 94,097 Loss related to extinguishment during the three months ended March 31, 2023: Schedule of loss related to extinguishment Debt principal $ 111,960 Accrued interest payable 11,030 Transfer agent fee 20,148 Total 143,138 Issuance of 26,500,000 shares of common stock (151,762 ) (Loss) on extinguishment of debt upon conversion $ (8,624 ) During the three months ended March 31, 2023, the Company issued shares in respect to a Put notice (Note 10(5)) with a strike price of $0.0035 per share which triggered a dilutive issuance clause in the aforementioned Convertible Note agreements downward adjusting the conversion price per share to match the strike price. Convertible Promissory Note During the year ended December 31 2022, the Company entered into several Convertible Promissory Notes with an investor in which the investor agreed to lend the Company the accumulated principal amount of $ 321,500 306,250 10 During the year ended December 31, 2022, the Company entered into a Convertible Promissory Notes with an investor in which the investor agreed to lend the Company the accumulated principal amount of $54,000 for the purchase price of $50,000. The Term of these Notes is twelve months with an interest rate of 10%. The conversion rate of the Note is as follows: 35% discount to the lowest bid price during the ten-day trading period prior to a notice of conversion. The funds were used for operating costs and further execution of GZ6G’s business plan. The Company recorded $33,077 as the liability on stock settled debt associated with these convertible promissory notes which amount is amortized over the terms of the notes. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) On March 8, 2023 the Company into a Promissory Note with 1800 Diagonal Lending LLC for the Principal Amount of $116,760 and an Actual Amount of Purchase Price of $104,250. The total disbursement to GZ6G was $100,000, with a term of twelve months and an interest rate of 12%. The note requires 10 monthly payments of $13,077 commencing April 30, 2023. In the event of default the holder shall have the right to convert interest and principal into shares of common stock based on a conversion price of 75% of the lowest trading price of the Company’s common stock in the preceding 10 days. Proceeds will be used, for operating costs and further execution of GZ6G’s business plans. The carrying value of this convertible promissory note March 31, December 31, Principal $ 214,510 $ 275,250 Accrued interest payable 14,011 - Stock-settled liability 56,635 152,213 Total 285,156 427,463 Unamortized debt discount (67,893 ) (106,500 ) Debt carrying value $ 217,263 $ 320,963 The interest expenses for the convertible promissory note are as follows Three Months Ended March 31, 2023 2022 Interest expense on note $ 4,327 $ - Amortization of accrued interest 1,440 Amortization of debt discount 50,100 - Total: $ 55,867 $ - The accrued interest payable is as follows: Schedule of the promissory note accrued interest payable Balance, December 31, 2021 $ - Interest expense on the convertible note 16,077 Balance, December 31, 2022 $ 16,077 Interest expense on the convertible note 4,327 Cash payment (2,710 ) Shares issued under conversion (13,529 ) Balance, March 31, 2023 $ 4,165 Loss related to extinguishment during the three months ended March 31, 2023: Schedule of loss related to convertible promissory note extinguishment Debt principal $ 177,500 Stock-settled debt 95,578 Accrued interest payable 16,238 Total 289,316 Issuance of 27,928,509 shares of common stock (319,657 ) Cash paid (70,574 ) Unamortized debt discount (17,838 ) Total (408,069 ) (Loss) on extinguishment of debt upon conversion $ (118,753 ) GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) SBA On May 19, 2020, the Company received a long-term loan from U.S. Small Business Administration (SBA) in the amount of $44,000, upon the following conditions: Payment 215 Interest 3.75 Payment terms: The interest expenses related to the SBA loan Three Months Ended March 31, 2023 2022 Interest expense on notes $ 406 $ 406 The accrued interest payable is as follows: Balance, December 31, 2021 $ 2,672 Addition: Interest expense 1,650 Balance, December 31, 2022 4,322 Addition: Interest expense 406 Balance, March 31, 2023 $ 4,728 PPP funds The Paycheck Protection Program (“PPP”) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. The loan may be forgiven in full if the funds are used for payroll costs, interest on mortgages, rent, and utilities (with at least 60% of the forgiven amount having been required to be used for payroll). Additional terms include: ● An interest rate of 1% per annum; ● Loans issued prior to June 5, 2020, have a maturity of 2 years, with loans issued thereafter having a maturity of 5 years; ● Loan payments are deferred for six months; ● No collateral or personal guarantees are required; and ● Neither the government nor lenders will charge small businesses any fees. On May 14, 2020, the Company received PPP proceeds of $ 45,450 5,702 5,061 641 45,450 641 46,091 Other Short-term loans On January 5, 2018, GZMC entered into a loan agreement with National Funding Inc. whereby the Company acquired funding in the amount of $ 20,625 412 26,400 150 3,768 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
CUSTOMER DEPOSITS, CONTRACT REC
CUSTOMER DEPOSITS, CONTRACT RECEIVABLES AND CONTRACT LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Customer Deposits Contract Receivables And Contract Liabilities | |
CUSTOMER DEPOSITS, CONTRACT RECEIVABLES AND CONTRACT LIABILITIES | NOTE 6: CUSTOMER DEPOSITS, CONTRACT RECEIVABLES AND CONTRACT LIABILITIES The Company generates revenue from contracts which, among other services, provide wireless and digital promotion rights for certain events including WiFi media network advertising rights, and the development of smart venue wireless networks and software engagement technology products for airports, stadiums, campuses, cities and other venues in the United States and International markets. In general, our contracts require several months of implementation which is charged at a fixed rate, followed by monthly maintenance and management services, ad hoc fixed rate services, and a share in advertising revenue, when applicable. As a result, the Company will accept deposits from customers, which deposits are applied as each stage of our implementation is complete or under the terms of the service contract. Invoices issued to customers for the implementation phase of our contracts are due and payable when issued, however, as the associated scope of services have not yet been concluded, these invoices do not yet meet the revenue recognition criteria required to report these amounts as earned revenue (ref: Note 2 – Revenue Recognition). As a result, deposits when received from customers are included as liabilities on our balance sheets. The following table provides balances of customer receivables and contract liabilities March 31, 2023 December 31, Customer receivables (1) $ - $ - Contract liabilities (Customer deposits) (1), (2), (a), (b), (c), (d) $ 173,230 $ 172,000 (1) The Company has deposits of $ 173,230 172,000 3,000 3,000 0 25,000 (2) Contract liabilities are consideration we have received from our customers billed in advance of providing goods or services promised in the future or for work in progress. We defer recognizing this consideration as revenue until we have satisfied the related performance obligation to the customer. Contract liabilities include installation and maintenance charges that are deferred and recognized when the installation is complete or with respect to deposits for maintenance, over the actual or expected contract term, which typically ranges from one to five years depending on the service. Contract liabilities may be included as customer deposits or deferred revenue in our consolidated balance sheets, based on the specifics of the contract. During the three months ended March 31, 2023 and 2022 , we have recognized $ 3,000 3,000 Performance Obligations While we had originally expected to recognize revenue during fiscal 2020 with respect to contracts for which we have received customer deposits, the impact of COVID-19 had a significant impact on implementation. The Company is currently in negotiations to determine the best way to proceed with the delayed implementation of these contracts, or their termination. (a) We executed a license agreement for the country of Spain in fiscal 2016 and the Company received an initial deposit of $25,000 against the total licensing fee payable. This amount has been recorded on the Company’s balance sheets as deferred income. While the Company and the customer attempted to negotiate an amendment to the terms of the agreement in late fiscal 2019, the onset of COVID-19 resulted in further delays which are ongoing. As a result, the Company is currently in negotiation for a formal termination of the agreement with this customer. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) (b) On July 11, 2019, GZMC entered into an Airport WiFi Sponsorship Marketing Agreement with a third party whereunder GZMC will secure long-term, exclusive and non-exclusive smart venues for WiFi marketing, digital marketing and data analytics for various brand sponsors at various airports across the United States. There were several venues anticipated under the terms of the agreement with installations commencing on various schedules. GZMC generated invoices for $ 100,000 65,000 35,000 (c) On October 6, 2020, the Company received a purchase order in the amount of $ 132,000 78,000 3,000 3,000 39,000 (d) During the three months ended March 31, 2023 the Company received a deposit from a customer in the amount of $ 4,230 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7: RELATED PARTY TRANSACTIONS Terrence Flowers As at December 31, 2019, a total of $ 11,110 11,000 110 Coleman Smith and ELOC Holdings Corp. On July 9, 2018, Mr. William Coleman Smith was appointed to the Board of Directors of the Company and as President, Secretary and Treasurer of the Company. Subsequently, on July 10, 2018, the Company executed a consulting agreement with ELOC Holdings Corp., a company controlled by Mr. Smith, whereby ELOC will provide the services of Mr. Smith for a fee of $10,000 per month. On April 1, 2021, the Company revised Mr. Smith’s compensation so that he also receives $10,000 per month directly as an employee in addition to accrued monthly fees for management services provided through controlled entity ELOC. On February 7, 2022, the board of directors of the Company approved and authorized a further increase of $10,000 per month in salary for Mr. Smith directly, effective January 1, 2022. On April 29, 2014, our 60% controlled subsidiary, GZMC, entered into a management and consulting agreement with Mr. Smith, the sole officer and director of GZMC whereunder GZMC is required to pay an annual salary of $ 120,000 During the year ended December 31, 2020, Mr. Smith and ELOC Holdings Corp made short term loans with interest at 1.5% per month to the Company to pay various expenses. As of December 31, 2020, Mr. Smith, ELOC Holdings Corp. and the Company agreed to retroactively allocate interest in the amount of 5% per annum to loans, advances, wages and management fees payable by each of GZMC and the Company from January 1, 2020 forward. The parties entered into a single consolidated promissory note at 5% per annum for all amounts payable to each of ELOC and Smith, with a principal amount of $ 1,217,579 During the fiscal year ended December 31, 2021, the Company paid a total of $ 151,854 During the year ended December 31, 2022, the Company issued 2,500,000 75,000 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) During the year ended December 31, 2022, the Company’s CEO, William Coleman Smith entered into Promissory Notes with the Company for a total of $ 250,000 200,100 The following amounts are included in debt to related party Balance at December 31, 2021, Debt, related party. $ 1,065,725 Shares issued to settle debt (75,000 ) Promissory Notes for funding provided 450,100 Balance at December 31, 2022, Debt, related party. $ 1,440,825 Balance at March 31, 2023, Debt, related party. $ 1,440,825 The interest expenses related to above loans are as follows Three Months Ended March 31, 2023 2022 Interest expense on notes $ 18,752 $ 13,138 During the three month period ended March 31, 2023 and 2022, the Company accrued $ 30,000 90,000 The following amounts are included in related party payables on our Balance Sheets March 31, December 31, Coleman Smith, President $ 73,841 $ 67,256 Interest payable 128,537 109,785 ELOC Holdings Corp. 270,000 240,000 Terrence Flowers 110 110 $ 472,488 $ 417,151 On September 1, 2022, the Company issued 2,500,000 60,250 Stock Awards issued to independent directors On September 1, 2022, the Company issued 100,000 2,410 |
OPERATING LEASE
OPERATING LEASE | 3 Months Ended |
Mar. 31, 2023 | |
Operating Lease | |
OPERATING LEASE | NOTE 8: OPERATING LEASE On May 19, 2021, the Company signed an 18-month lease for office premises in California located at 1 Technology Drive, Bldg. B, Irvine, CA 92618, Suite no. B123 occupying approximately 6,498 square feet of usable space. The terms of the lease provide for basic monthly rent in the first year of approximately $ 9,097 9,487 10,592 Topic 842 Leases, 645,440 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Future minimum lease payments in respect of the above leases 2023 95,780 2024 133,014 2025 138,472 2026 143,931 2027 136,527 Total future minimum lease payments 647,724 Less: imputed interest (96,046 ) Total 551,678 Current portion of operating lease 93,549 Long term portion of operating lease $ 458,129 |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE 9: COMMITMENTS (1) On April 2, 2019, a vendor of the Company, the “Plaintiff” filed a complaint against the Company’s 60% controlled subsidiary, Green Zebra, in the Superior Court of California, Orange County for unpaid invoices related to services and products sold in fiscal 2017, including reasonable value in the amount of $ 61,899 Schedule of default judgement Damages $ 61,890 Prejudgment interest at the annual rate of 10% 9,835 Attorney fees 1,200 Other costs 505 Total judgement value $ 73,430 In April 2021, the Plaintiff perfected the judgement and obtained a hold against a bank account controlled by Green Zebra in the approximate amount of $ 16,282 2,420 54,738 (2) On August 10, 2019, the Company’s CEO, Mr. William Coleman Smith, entered into a lease agreement with IAC Apartment Development JV LLC to lease space at 861 Tularosa, Irvine, California for a one-year term at a rental rate of approximately $ 3,400 (3) On September 14, 2020, GZMC entered into a WiFi Media Solution Agreement (the “Media Agreement”) with a city in Iowa in regard to a city owned location (“venue location”) whereby GZMC was granted rights to provide sponsorship advertising, performance marketing and professional services. Under the terms of the Media Agreement, GZMC must pay fees to the city at an annual rate of $ 94,000 (4) On November 10, 2021, the Company entered into a Registration Right Agreement with Mast Hill Fund, L.P. (the “Investor”), whereby the Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Investor up to Ten Million Dollars ($10,000,000.00) of Put Shares at an originally estimated put price of $2.00 per share, subject to adjustment in accordance with the terms of the agreement which calls for valuation of the Put price equal to 90% of the volume weighted average price of the Company’s Common Stock on the Principal Market on the Trading Day immediately preceding the respective Put Date, and subject to a valuation period of seven (7) Trading Days immediately following the Clearing Date associated with the applicable Put Notice during which the Purchase Price of the Common Stock is valued in order to establish the applicable Purchase Price. Securities Act The Company issued an accumulated 4,747,662 151,104 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) (6) On April 7, 2022, the Company entered into Professional Relations and Consulting Agreement (Agreement) with Acorn Management Partners, LLC (Acorn), a Georgia Limited Liability Company, wherein the Company will pay Acorn $11,500 per month, and issue, or cause to be issued, $ 120,000 60,000 51,282 60,000 On July 19, 2022, 383,000 60,000 (7) On July 7, 2022, effective June 14, 2022, the Company entered into a Sponsorship & Services Agreement (Agreement) with the Texas Rangers MLB Stadium called Globe Life Field (Rangers) wherein the Rangers granted sponsorship benefits to the Company. The Agreement calls for advanced sponsorship revenue share payments of $375,000 by the Company to the Rangers during the fiscal years 2023 and 2024, pursuant to a split fee arrangement for WiFi managed services and Sponsorship opportunity. The Agreement offers the rights of the Company to place stadium ads in a shared revenue model. The Company will also manage the WiFi Network captive portal remotely, as an exclusive arrangement. As of March 31, 2023, the Company has not yet remitted the first semi-annual installment of $187,500 under the terms of the contract. (8) During the year ended December 31, 2022, the Company entered into a Sponsorship & Services Agreement (Agreement), as amended, with the Kansas City Royals Baseball club (the “Royals”) whereunder the Royals granted sponsorship benefits to the Company for a term running from December 1, 2022 until the date of the last MLB game in 2027, unless terminated earlier. The Agreement calls for annual escalating payments by the Company to the Royals during the fiscal years 2023 through 2027 of $400,000, $420,000, $441,000, $463,000 and $486,202, payable in four equal installments during fiscal 2023 and three equal installments during fiscal 2024 through 2027. In consideration for the fees paid the Company will have sponsorship rights, within the venue, across IPTV (internet protocol television) and fans’ mobile devices during live games and other events. Further the Company will be reimbursed for costs related to equipment and installation services required under the contract. During the three-month period ended March 31, 2023 the Company invoiced and was paid $ 50,000 100,000 |
CAPITAL STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 10: CAPITAL STOCK The Company has authorized 1,000,000,000 0.001 10,000,000 0.004 1 0.001 Common Stock Shares of common stock issued during the three months ended March 31, 2023: The Company issued an accumulated 57,563,655 735,709 135,912 471,022 20,148 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) Shares of common stock issued during the three months ended March 31, 2022: On February 8, 2022, pursuant to an Engagement Agreement with Carter, Terry & Company, an authorized, registered broker dealer, the Company issued a total of 10,769 22,399 As of March 31, 2023, and December 31, 2022, there were 128,401,166 70,837,511 Series A Preferred Stock The total number of Series A Preferred stock that may be issued by the Company is 10,000,000 0.004 As of March 31, 2023 and December 31, 2022, there are a total of 5,000,000 Series B Preferred Stock The total number of Series B Preferred Stock that may be issued by the Company is 1 0.001 As of March 31, 2023 and December 31, 2022, there is 1 Share Purchase Warrants On November 11, 2021, the Company entered into a Warrant Agreement with J.H. Darbie and Company, an authorized, registered broker dealer, wherein J.H. Darbie and Company may purchase 10,487 25,141 In November and December 2021, the Company issued cumulative 1,120,000 503,973 In April and May 2022, the Company issued a total of 1,831,667 360,967 In September 2022, the Company issued a total of 3,520,000 52,702 In November and December 2022, the Company issued a total of 14,120,000 192,473 During the year ended December 31, 2022, the Company issued a total of 497,317 68,356 During the year ended December 31, 2022, the Company issued a total of 560,000 639,620 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) During the year ended December 31, 2022, 907,247 1,120,000 560,000 In March 2023, the Company issued a total of 23,440,000 agreements entered into with the convertible note holders and subscribers. The fair value of the warrants granted was estimated at $ 64,319 In March 2023, the Company issued a total of 527,400 3,419 Certain warrants above include dilution protection for the warrant holders, which could cause the exercise price to be reduced as a result of a financing event at a valuation below the exercise price in effect at the time. During the year ended December 31, 2022, as a result of additional share issuances below the original exercise price of certain warrants, the warrant exercise price was downward adjusted to $0.020025 per share. During the three months ended March 31, 2023, as a result of additional share issuances below the original exercise price of certain warrants, the warrant exercise price was downward adjusted to $0.0035 per share. In accordance with authoritative accounting guidance, the fair value of the outstanding common stock purchase warrants Measurement date Dividend yield 0 Expected volatility 262 297 Risk-free interest rate 0.83 4.36 Expected life (years) 3.00~5.00 Stock Price $ 0.005 2.80 Exercise Price $ 0.05 1.00 The following table summarizes information with respect to outstanding warrants to purchase common stock Exercise Price December 31, 2022 Issued Repricing Exercised March 31, Expiration Date $ 0.020025 10,487 0.0035 10,487 November 2026 $ 0.020025 365,000 0.0035 365,000 April 2027 $ 0.020025 16,417 0.0035 16,417 April 2027 $ 0.020025 1,466,667 0.0035 1,466,667 May 2025 $ 0.020025 66,000 0.0035 66,000 May 2027 $ 0.020025 3,520,000 0.0035 3,520,000 September 2027 $ 0.020025 79,200 0.0035 79,200 September 2027 $ 0.020025 8,260,000 0.0035 8,260,000 November 2027 $ 0.020025 203,850 0.0035 203,850 November 2027 $ 0.020025 5,860,000 0.0035 5,860,000 December 2027 $ 0.020025 131,850 0.0035 131,850 December 31, 2022 $ 0.05 11,720,000 0.0035 11,720,000 January 23, 2028 $ 0.06 263,700 0.0035 263,700 January 23, 2028 $ 0.05 11,720,000 0.0035 11,720,000 March 16, 2028 $ 0.06 263,700 0.0035 263,700 March 16, 2028 19,979,471 23,967,400 - 43,946,871 GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) A summary of the warrant activity for the three months Weighted- Weighted- Contractual Aggregate Intrinsic Shares Price Term Value Outstanding at December 31, 2022 19,979,471 $ 0.020025 4.68 $ - Grants 23,967,400 0.0502 5 - Exercised - - - - Expired - - - - Outstanding at March 31, 2023 43,946,871 $ 0.0035 4.69 $ - Exercisable at March 31, 2023 43,946,871 $ 0.0035 4.69 $ - |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11: SUBSEQUENT EVENTS On April 27, 2023 the Company issued 5,555,556 0.0027 15,000 The Company has evaluated subsequent events from the balance sheet date through the date that the financial statements were issued and determined that there are no additional subsequent events requiring disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles GAAP have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2022 Form 10-K as filed with the Securities and Exchange Commission on April 17, 2023. |
Consolidation | Consolidation These unaudited condensed consolidated financial statements include the accounts of GZ6G Technology Corp. and its 60 |
Use of Estimates | Use of Estimates The preparation of these consolidated 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments with a maturity of three (3) months or less at the time of purchase. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2023 and December 31, 2022, the Company had $ 74,600 249,500 |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation on property and equipment are determined using the straight-line method over the three to five year estimated useful lives of the assets. |
Research and Development Costs | Research and Development Costs We charge research and development costs to operations as incurred in accordance with ASC 730-Research and Development, except in those cases in which such costs are reimbursable under customer funded contracts. These amounts are not reflected in the reported research and development expenses in each of the respective periods but are included in net sales with the related costs included in cost of sales in each of the respective periods. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606 — Revenue from Contracts with Customers. The core principle of this standard is that a company should record revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Further under ASC 606, the Company recognizes revenue from licensing agreements and service-based contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. We earn revenue from service and sponsorship agreements, digital marketing and the sale of WiFi and communication solutions to customers across the United States. Revenue is earned from sales of our WiFi media platform and our WiFi monetization hardware (GZ Media hub) embedded with GZ software to create monetization and communication solutions for our customers. Our sales can consist of any one or a combination of items required by our customer including hardware, technology platforms and related support. We also enter into licensing contracts which provide for revenue based on licensing fees and revenue sharing with our licensees. As we expand, we expect a large portion of our revenue from our digital communication solutions to be derived from service-based contracts where we expect to recognize a significant portion of our contracts over time, as there is a continuous delivery of services to the customer over the contractual period of performance. These contracts may or may not include fixed payments for services over time and/or commission-based fees. Direct costs are expected to include materials, labor and overhead to be charged to work-in-progress (including our contracts-in-progress) inventory or cost of sales. Indirect costs relating to long-term contracts, are expected to include expenses such as general and administrative charges, and other costs will be charged to expense as incurred and will not be included in our work-in-process (including our contracts-in-progress) inventory or cost of sales. Total estimates are expected to be reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Estimated losses on long-term contracts are recorded in the period in which the losses become evident. If we do not accurately estimate the total sales, related costs and progress towards completion on our long-term contracts, the estimated gross margins may be significantly impacted, or losses may need to be recognized in future periods. Any such resulting changes in margins or contract losses could be material to our results of operations and financial condition. In addition, certain of our contracts will include termination for convenience or non-performance clauses that provide the customer with the right to terminate the contract. Such terminations could impact the assumptions regarding total contract revenues and expenses utilized in recognizing profit under those contracts where we apply the percentage-of-completion method of accounting. Changes to these assumptions could materially impact our results of operations and financial condition. As we fully implement our business model, our inability to perform on our long-term contracts could materially impact our results of operations and financial condition. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based transactions in which the Company receives services from employees, non-employees, directors or others in exchange for equity instruments based on the fair value of the award at the grant date in accordance with ASC 718 – Compensation-Stock Compensation. Stock-based compensation cost for stock options or warrants is estimated at the grant date based on each instrument’s fair value as calculated by the Black-Scholes option pricing model. We recognize stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period for the award. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
Debt Issue Costs | Debt Issue Costs The Company may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations as interest expense. |
Original Issue Discount | Original Issue Discount If debt is issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized over the life of the debt to the statement of operations as interest expense. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed. |
Stock Settled Debt | Stock Settled Debt In certain instances, the Company will issue convertible notes which contain a provision in which the price of the conversion feature is priced at a fixed discount to the trading price of the Company’s common shares as traded in the over-the-counter market. In these instances, the Company records a liability, in addition to the principal amount of the convertible note, as stock-settled debt for the fixed value transferred to the convertible note holder from the fixed discount conversion feature. As of March 31, 2023 and December 31, 2022, the Company had recorded within Convertible Notes, net of discount, the amount of $ 56,635 5,324,016 , respectively, |
Leases | Leases The Company follows ASC 842 Leases, which requires recognition of most leases on the balance sheet, specifically the recognition of right-to-use assets and related lease liabilities, and enhanced disclosures about leasing arrangements. The Company elected to apply the short-term scope exception for leases with terms of 12 months or less at the inception of the lease and will continue to recognize rent expense on a straight-line basis. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures, defines fair value 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level of input that is significant to the fair value measurement of the instrument. |
Income Taxes | Income Taxes The Company follows ASC 740 – Income Taxes, which requires the use of the asset and liability method of accounting for income taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. GZ6G TECHNOLOGIES CORP. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Ended March 31, 2023 and 2022 (Unaudited) |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share In accordance with ASC 260 – Earnings Per Share, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive. Potential common stock consists of the incremental common stock issuable upon convertible notes, classes of shares with conversion features. The computation of diluted loss per share for the three months ended March 31, 2022 excludes potentially dilutive securities of underlying share purchase warrants, convertible notes, and preferred shares, because their inclusion would be antidilutive. The table below reflects the potentially dilutive securities that have not been included in the computation of diluted net loss March 31, March 31, Convertible Notes 806,072,163 5,222,570 Stock purchase warrants 841,724,017 1,130,487 Series A Preferred shares (convertible to common at a ratio of 10 common for each 1 preferred) 50,000,000 50,000,000 Total 1,697,796,180 56,353,057 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
the potentially dilutive securities that have not been included in the computation of diluted net loss | The table below reflects the potentially dilutive securities that have not been included in the computation of diluted net loss March 31, March 31, Convertible Notes 806,072,163 5,222,570 Stock purchase warrants 841,724,017 1,130,487 Series A Preferred shares (convertible to common at a ratio of 10 common for each 1 preferred) 50,000,000 50,000,000 Total 1,697,796,180 56,353,057 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net consists of the following | Property and equipment, net consists of the following March 31, December 31, Office equipment $ 192,647 $ 192,647 Leasehold improvements 12,813 12,813 Software 155,550 143,070 Total 361,010 348,530 Less: accumulated depreciation and amortization (190,147 ) (160,869 ) Total property and equipment, net $ 170,863 $ 187,661 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other current assets consist of the following | Other current assets consist of the following March 31, December 31, Security deposits $ 14,691 $ 14,691 Other deposits and receivables 1,258 1,258 Total $ 15,949 $ 15,949 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loan Treaty Agreement [Member] | |
Short-term Debt [Line Items] | |
The carrying value of funding tranches is as follows | The carrying value of funding tranches is as follows March 31, December 31, Principal $ - $ 500,000 Stock-settled liability 5,171,803 Total - 5,671,803 Unamortized debt discount - (20,726 ) Debt carrying value $ - $ 5,651,077 |
The interest expenses for the funding tranches are as follows | The interest expenses for the funding tranches are as follows Three Months Ended March 31, 2023 2022 Interest expense on notes $ 6,465 $ 15,551 Amortization of debt discount 20,726 2,119,741 Total: $ 27,191 $ 2,135,292 |
The accrued interest payable is as follows | The accrued interest payable is as follows Balance, December 31, 2021 $ 50,981 Interest expense on the convertible notes 53,907 Balance, December 31, 2022 104,888 Interest expense on the convertible notes 6,465 Converted to shares (111,353 ) Balance, March 31, 2023 $ - |
Gain related to extinguishment | Gain related to extinguishment Three Months ended March 31, 2023 Debt principal $ 500,000 Stock-settled liability 5,171,803 Interest payable 111,353 Total 5,783,156 Issuance of 3,135,146 shares of common stock (19,751 ) Gain on extinguishment of debt upon conversion $ 5,763,405 |
Convertible Debts [Member] | |
Short-term Debt [Line Items] | |
Schedule of the carrying value of the tranches | The carrying value of the tranches is as follows: Schedule of the carrying value of the tranches March 31, December 31, Principal $ 2,741,149 $ 2,847,000 Shares issued under conversion (111,960 ) (410,851 ) Repaid to principal - (281,000 ) Total 2,629,190 2,155,149 Unamortized debt discount (1,352,939 ) (1,280,068 ) Debt carrying value $ 1,276,251 $ 875,081 |
Schedule of the interest expense related to the tranches | The interest expenses related to the tranches are as follows: Schedule of the interest expense related to the tranches Three Months Ended March 31, 2023 2022 Interest expense on notes $ 69,836 $ 33,140 Amortization of debt discount 468,550 58,930 Total: $ 538,386 $ 92,070 |
Schedule of the accrued interest payable | The accrued interest payable is as follows: Schedule of the accrued interest payable Balance, December 31, 2021 $ 13,340 Interest expense on the convertible notes 178,374 Shares issued under conversion (124,742 ) Repaid in cash (31,781 ) Balance, December 31, 2022 35,291 Interest expense on the convertible notes 69,836 Shares issued under conversion (11,030 ) Balance, March 31, 2023 $ 94,097 |
Schedule of loss related to extinguishment | Loss related to extinguishment during the three months ended March 31, 2023: Schedule of loss related to extinguishment Debt principal $ 111,960 Accrued interest payable 11,030 Transfer agent fee 20,148 Total 143,138 Issuance of 26,500,000 shares of common stock (151,762 ) (Loss) on extinguishment of debt upon conversion $ (8,624 ) |
Convertible Promissory Note [Member] | |
Short-term Debt [Line Items] | |
The carrying value of this convertible promissory note | The carrying value of this convertible promissory note March 31, December 31, Principal $ 214,510 $ 275,250 Accrued interest payable 14,011 - Stock-settled liability 56,635 152,213 Total 285,156 427,463 Unamortized debt discount (67,893 ) (106,500 ) Debt carrying value $ 217,263 $ 320,963 |
The interest expenses for the convertible promissory note are as follows | The interest expenses for the convertible promissory note are as follows Three Months Ended March 31, 2023 2022 Interest expense on note $ 4,327 $ - Amortization of accrued interest 1,440 Amortization of debt discount 50,100 - Total: $ 55,867 $ - |
Schedule of the promissory note accrued interest payable | The accrued interest payable is as follows: Schedule of the promissory note accrued interest payable Balance, December 31, 2021 $ - Interest expense on the convertible note 16,077 Balance, December 31, 2022 $ 16,077 Interest expense on the convertible note 4,327 Cash payment (2,710 ) Shares issued under conversion (13,529 ) Balance, March 31, 2023 $ 4,165 |
Schedule of loss related to convertible promissory note extinguishment | Loss related to extinguishment during the three months ended March 31, 2023: Schedule of loss related to convertible promissory note extinguishment Debt principal $ 177,500 Stock-settled debt 95,578 Accrued interest payable 16,238 Total 289,316 Issuance of 27,928,509 shares of common stock (319,657 ) Cash paid (70,574 ) Unamortized debt discount (17,838 ) Total (408,069 ) (Loss) on extinguishment of debt upon conversion $ (118,753 ) |
Small Business Administration [Member] | |
Short-term Debt [Line Items] | |
The interest expenses related to the SBA loan | The interest expenses related to the SBA loan Three Months Ended March 31, 2023 2022 Interest expense on notes $ 406 $ 406 The accrued interest payable is as follows: Balance, December 31, 2021 $ 2,672 Addition: Interest expense 1,650 Balance, December 31, 2022 4,322 Addition: Interest expense 406 Balance, March 31, 2023 $ 4,728 |
CUSTOMER DEPOSITS, CONTRACT R_2
CUSTOMER DEPOSITS, CONTRACT RECEIVABLES AND CONTRACT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Customer Deposits Contract Receivables And Contract Liabilities | |
The following table provides balances of customer receivables and contract liabilities | The following table provides balances of customer receivables and contract liabilities March 31, 2023 December 31, Customer receivables (1) $ - $ - Contract liabilities (Customer deposits) (1), (2), (a), (b), (c), (d) $ 173,230 $ 172,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
The following amounts are included in debt to related party | The following amounts are included in debt to related party Balance at December 31, 2021, Debt, related party. $ 1,065,725 Shares issued to settle debt (75,000 ) Promissory Notes for funding provided 450,100 Balance at December 31, 2022, Debt, related party. $ 1,440,825 Balance at March 31, 2023, Debt, related party. $ 1,440,825 |
The interest expenses related to above loans are as follows | The interest expenses related to above loans are as follows Three Months Ended March 31, 2023 2022 Interest expense on notes $ 18,752 $ 13,138 |
The following amounts are included in related party payables on our Balance Sheets | The following amounts are included in related party payables on our Balance Sheets March 31, December 31, Coleman Smith, President $ 73,841 $ 67,256 Interest payable 128,537 109,785 ELOC Holdings Corp. 270,000 240,000 Terrence Flowers 110 110 $ 472,488 $ 417,151 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Operating Lease | |
Future minimum lease payments in respect of the above leases | Future minimum lease payments in respect of the above leases 2023 95,780 2024 133,014 2025 138,472 2026 143,931 2027 136,527 Total future minimum lease payments 647,724 Less: imputed interest (96,046 ) Total 551,678 Current portion of operating lease 93,549 Long term portion of operating lease $ 458,129 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of default judgement | Schedule of default judgement Damages $ 61,890 Prejudgment interest at the annual rate of 10% 9,835 Attorney fees 1,200 Other costs 505 Total judgement value $ 73,430 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
the fair value of the outstanding common stock purchase warrants | In accordance with authoritative accounting guidance, the fair value of the outstanding common stock purchase warrants Measurement date Dividend yield 0 Expected volatility 262 297 Risk-free interest rate 0.83 4.36 Expected life (years) 3.00~5.00 Stock Price $ 0.005 2.80 Exercise Price $ 0.05 1.00 |
The following table summarizes information with respect to outstanding warrants to purchase common stock | The following table summarizes information with respect to outstanding warrants to purchase common stock Exercise Price December 31, 2022 Issued Repricing Exercised March 31, Expiration Date $ 0.020025 10,487 0.0035 10,487 November 2026 $ 0.020025 365,000 0.0035 365,000 April 2027 $ 0.020025 16,417 0.0035 16,417 April 2027 $ 0.020025 1,466,667 0.0035 1,466,667 May 2025 $ 0.020025 66,000 0.0035 66,000 May 2027 $ 0.020025 3,520,000 0.0035 3,520,000 September 2027 $ 0.020025 79,200 0.0035 79,200 September 2027 $ 0.020025 8,260,000 0.0035 8,260,000 November 2027 $ 0.020025 203,850 0.0035 203,850 November 2027 $ 0.020025 5,860,000 0.0035 5,860,000 December 2027 $ 0.020025 131,850 0.0035 131,850 December 31, 2022 $ 0.05 11,720,000 0.0035 11,720,000 January 23, 2028 $ 0.06 263,700 0.0035 263,700 January 23, 2028 $ 0.05 11,720,000 0.0035 11,720,000 March 16, 2028 $ 0.06 263,700 0.0035 263,700 March 16, 2028 19,979,471 23,967,400 - 43,946,871 |
A summary of the warrant activity for the three months | A summary of the warrant activity for the three months Weighted- Weighted- Contractual Aggregate Intrinsic Shares Price Term Value Outstanding at December 31, 2022 19,979,471 $ 0.020025 4.68 $ - Grants 23,967,400 0.0502 5 - Exercised - - - - Expired - - - - Outstanding at March 31, 2023 43,946,871 $ 0.0035 4.69 $ - Exercisable at March 31, 2023 43,946,871 $ 0.0035 4.69 $ - |
the potentially dilutive securi
the potentially dilutive securities that have not been included in the computation of diluted net loss (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,697,796,180 | 56,353,057 |
Convertible Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 806,072,163 | 5,222,570 |
Stock Purchase Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 841,724,017 | 1,130,487 |
Series A Preferred Stocks [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000,000 | |
Series A Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
FDIC insured limit excess amount | $ 74,600 | $ 249,500 |
Stock settled debt | $ 56,635 | $ 5,324,016 |
Green Zebra Media Corp [Member] | ||
Ownership Percentage | 60% |
Property and equipment, net con
Property and equipment, net consists of the following (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Office equipment | $ 192,647 | $ 192,647 |
Leasehold improvements | 12,813 | 12,813 |
Software | 155,550 | 143,070 |
Total | 361,010 | 348,530 |
Less: accumulated depreciation and amortization | (190,147) | (160,869) |
Total property and equipment, net | $ 170,863 | $ 187,661 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 29,278 | $ 46,478 |
Other current assets consist of
Other current assets consist of the following (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Security deposits | $ 14,691 | $ 14,691 |
Other deposits and receivables | 1,258 | 1,258 |
Total | $ 15,949 | $ 15,949 |
The carrying value of funding t
The carrying value of funding tranches is as follows (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Stock-settled liability | $ 56,635 | $ 5,324,016 |
Loan Treaty Agreement [Member] | ||
Short-term Debt [Line Items] | ||
Principal | 500,000 | |
Stock-settled liability | 5,171,803 | |
Total | 5,671,803 | |
Unamortized debt discount | (20,726) | |
Debt carrying value | $ 5,651,077 |
The interest expenses for the f
The interest expenses for the funding tranches are as follows (Details) - Loan Treaty Agreement [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-term Debt [Line Items] | ||
Interest expense on notes | $ 6,465 | $ 15,551 |
Amortization of debt discount | 20,726 | 2,119,741 |
Total: | $ 27,191 | $ 2,135,292 |
The accrued interest payable is
The accrued interest payable is as follows (Details) - Loan Treaty Agreement [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Balance, December 31, 2021 | $ 50,981 |
Interest expense on the convertible notes | 53,907 |
Balance, December 31, 2022 | 104,888 |
Interest expense on the convertible notes | 6,465 |
Converted to shares | (111,353) |
Balance, March 31, 2023 |
Gain related to extinguishment
Gain related to extinguishment (Details) - Loan Treaty Agreement [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Debt principal | $ 500,000 |
Stock-settled liability | 5,171,803 |
Interest payable | 111,353 |
Total | 5,783,156 |
Issuance of 3,135,146 shares of common stock | (19,751) |
Gain on extinguishment of debt upon conversion | $ 5,763,405 |
Schedule of the carrying value
Schedule of the carrying value of the tranches (Details) - Convertible Debts [Member] - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Principal | $ 2,741,149 | $ 2,847,000 |
Shares issued under conversion | (111,960) | (410,851) |
Repaid to principal | (281,000) | |
Total | 2,629,190 | 2,155,149 |
Unamortized debt discount | (1,352,939) | (1,280,068) |
Debt carrying value | $ 1,276,251 | $ 875,081 |
Schedule of the interest expens
Schedule of the interest expense related to the tranches (Details) - Convertible Debts [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-term Debt [Line Items] | ||
Interest expense on notes | $ 69,836 | $ 33,140 |
Amortization of debt discount | 468,550 | 58,930 |
Total: | $ 538,386 | $ 92,070 |
Schedule of the accrued interes
Schedule of the accrued interest payable (Details) - Convertible Debts [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Beginning Balance | $ 35,291 | $ 13,340 |
Interest expense on the convertible notes | 69,836 | 178,374 |
Shares issued under conversion | (11,030) | (124,742) |
Repaid in cash | (31,781) | |
Ending Balance | $ 94,097 | $ 35,291 |
Schedule of loss related to ext
Schedule of loss related to extinguishment (Details) - Convertible Debts [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Debt principal | $ 111,960 |
Accrued interest payable | 11,030 |
Transfer agent fee | 20,148 |
Total | 143,138 |
Issuance of 26,500,000 shares of common stock | (151,762) |
(Loss) on extinguishment of debt upon conversion | $ (8,624) |
The carrying value of this conv
The carrying value of this convertible promissory note (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Stock-settled liability | $ 56,635 | $ 5,324,016 |
Convertible Promissory Note [Member] | ||
Short-term Debt [Line Items] | ||
Principal | 214,510 | 275,250 |
Accrued interest payable | 14,011 | |
Stock-settled liability | 56,635 | 152,213 |
Total | 285,156 | 427,463 |
Unamortized debt discount | (67,893) | (106,500) |
Debt carrying value | $ 217,263 | $ 320,963 |
The interest expenses for the c
The interest expenses for the convertible promissory note are as follows (Details) - Convertible Promissory Note [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short-term Debt [Line Items] | ||
Interest expense on note | $ 4,327 | |
Amortization of accrued interest | 1,440 | |
Amortization of debt discount | 50,100 | |
Total: | $ 55,867 |
Schedule of the promissory note
Schedule of the promissory note accrued interest payable (Details) - Convertible Promissory Note [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Beginning Balance | $ 16,077 | |
Interest expense on the convertible notes | 4,327 | 16,077 |
Cash payment | (2,710) | |
Shares issued under conversion | (13,529) | |
Ending Balance | $ 4,165 | $ 16,077 |
Schedule of loss related to con
Schedule of loss related to convertible promissory note extinguishment (Details) - Convertible Promissory Note [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Debt principal | $ 177,500 |
Stock-settled debt | 95,578 |
Accrued interest payable | 16,238 |
Total | 289,316 |
Issuance of 27,928,509 shares of common stock | (319,657) |
Cash paid | (70,574) |
Unamortized debt discount | (17,838) |
Total | (408,069) |
(Loss) on extinguishment of debt upon conversion | $ (118,753) |
The interest expenses related t
The interest expenses related to the SBA loan (Details) - Small Business Administration [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | |||
Interest expense on notes | $ 406 | $ 406 | |
Beginning Balance | 4,322 | $ 2,672 | $ 2,672 |
Additional: Interest expense | 406 | 1,650 | |
Ending Balance | $ 4,728 | $ 4,322 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Nov. 03, 2022 | Aug. 03, 2022 | Apr. 04, 2022 | Nov. 11, 2021 | Jan. 05, 2018 | Mar. 16, 2023 | Feb. 28, 2023 | Jan. 23, 2023 | Dec. 20, 2022 | Nov. 23, 2022 | Sep. 20, 2022 | May 23, 2022 | Dec. 16, 2021 | Oct. 27, 2021 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 14, 2021 | Dec. 21, 2020 | May 19, 2020 | |
Short-term Debt [Line Items] | ||||||||||||||||||||||
Convertible notes, net of debt discount | $ 1,493,514 | $ 6,847,121 | ||||||||||||||||||||
Received tranche deposits for aggregate amount | 50,000 | $ 1,100,000 | ||||||||||||||||||||
Value of shares issued for conversion | 491,170 | |||||||||||||||||||||
National Funding Inc [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Short term borrowings | $ 20,625 | $ 3,768 | ||||||||||||||||||||
Origination fee | 412 | |||||||||||||||||||||
Repayments of short term debt | 26,400 | |||||||||||||||||||||
Repayments of daily short term debt | $ 150 | |||||||||||||||||||||
Convertible Debts [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Number of shares issued for conversion | 2,400,000 | 365,000 | 560,000 | 11,720,000 | 11,720,000 | 5,860,000 | 5,860,000 | 3,520,000 | 1,466,667 | 560,000 | ||||||||||||
Issuance Price per share | $ 0.02 | $ 1 | $ 1 | $ 0.0035 | $ 0.0035 | $ 0.015 | $ 0.02 | $ 0.03 | $ 0.30 | $ 1 | ||||||||||||
Net amount of convertible note | $ 160,000 | $ 365,000 | $ 560,000 | $ 293,000 | $ 293,000 | $ 293,000 | $ 293,000 | $ 176,000 | $ 440,000 | $ 560,000 | ||||||||||||
Convertible promissory note | $ 144,000 | $ 328,500 | $ 504,000 | $ 263,700 | $ 263,700 | $ 263,700 | $ 263,700 | $ 158,400 | $ 396,000 | $ 504,000 | ||||||||||||
Interest percentage | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | 12% | ||||||||||||
Convertible note fair value | 527,400 | 1,554,300 | 1,008,000 | |||||||||||||||||||
Debt discount amortized | 418,502 | 792,824 | 616,027 | |||||||||||||||||||
Debt discount | $ 541,421 | 1,571,666 | 1,120,000 | |||||||||||||||||||
Net cash settlement of the outstanding principal amount | 281,000 | |||||||||||||||||||||
Interest payable settlement amount | $ 31,781 | |||||||||||||||||||||
Number of accumulated shares issued for conversion of interest payable | 26,500,000 | 21,990,255 | ||||||||||||||||||||
Convertible Promissory Note [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Net amount of convertible note | $ 321,500 | |||||||||||||||||||||
Convertible promissory note | $ 306,250 | |||||||||||||||||||||
Interest percentage | 10% | |||||||||||||||||||||
Small Business Administration [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Interest percentage | 3.75% | |||||||||||||||||||||
Loan repayment amount | 215 | |||||||||||||||||||||
Paycheck Protection Program [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Loan repayment amount | 46,091 | 5,702 | ||||||||||||||||||||
Paycheck protection program received amount | $ 45,450 | |||||||||||||||||||||
Loan repayment principal | 45,450 | 5,061 | ||||||||||||||||||||
Loan repayment interest | $ 641 | 641 | ||||||||||||||||||||
Treaty Agreement [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Convertible notes, net of debt discount | $ 25,000 | $ 450,000 | ||||||||||||||||||||
Promissory notes increments | $ 100,000 | |||||||||||||||||||||
Interest rate | 8% | |||||||||||||||||||||
Liability on stock settled debt | $ 11,656,833 | |||||||||||||||||||||
Net loan amount funded | $ 250,000 | |||||||||||||||||||||
Number of shares issued for conversion | 1,538,462 | 3,135,146 | 2,051,282 | |||||||||||||||||||
Value of shares issued for conversion | $ 300,000 | $ 500,000 | $ 400,000 | |||||||||||||||||||
Issuance Price per share | $ 0.195 | $ 0.195 | $ 0.195 | |||||||||||||||||||
Unpaid interest | $ 111,353 | |||||||||||||||||||||
Treaty Agreement [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||
Convertible notes, net of debt discount | $ 25,000 |
The following table provides ba
The following table provides balances of customer receivables and contract liabilities (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Customer Deposits Contract Receivables And Contract Liabilities | ||
Customer receivables (1) | ||
Contract liabilities (Customer deposits) (1), (2), (a), (b), (c), (d) | $ 173,230 | $ 172,000 |
CUSTOMER DEPOSITS, CONTRACT R_3
CUSTOMER DEPOSITS, CONTRACT RECEIVABLES AND CONTRACT LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jul. 11, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Oct. 06, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Deposits for customer receivables | $ 173,230 | $ 172,000 | ||||
Income related to contract | 3,000 | $ 3,000 | ||||
Deposit returned to customer | 0 | 25,000 | ||||
Contract revenues | 3,000 | 3,000 | ||||
Deferred revenue | $ 132,000 | |||||
Revenues | 70,547 | 3,000 | $ 78,000 | |||
Income from contract | 3,000 | $ 3,000 | ||||
Deferred income | $ 39,000 | |||||
Deposit from customer | $ 4,230 | |||||
Sponsorship Marketing Agreement [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Revenue from related parties | $ 100,000 | |||||
Revenue due from to related party | 65,000 | |||||
Revenue remaining performance obligation | $ 35,000 |
The following amounts are inclu
The following amounts are included in debt to related party (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
Related Party Transactions [Abstract] | ||
Beginning Balance | $ 1,065,725 | |
Shares issued to settle debt | (75,000) | |
Promissory Notes for funding provided | 450,100 | |
Ending Balance | 1,440,825 | |
Balance | $ 1,440,825 | $ 1,440,825 |
The interest expenses related_2
The interest expenses related to above loans are as follows (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transactions [Abstract] | ||
Interest expense on notes | $ 18,752 | $ 13,138 |
The following amounts are inc_2
The following amounts are included in related party payables on our Balance Sheets (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 472,488 | $ 417,151 |
Coleman Smith, President [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 73,841 | 67,256 |
Interest Payable [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 128,537 | 109,785 |
ELOC Holdings Corp. [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 270,000 | 240,000 |
Terrence Flowers [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 110 | $ 110 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 29, 2014 | |
Related Party Transaction [Line Items] | |||||||
Annual principal payment | $ 120,000 | ||||||
Payment down of principal amount | $ 151,854 | ||||||
Terrence Flowers [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Promissory note | $ 11,000 | $ 11,110 | |||||
Due amount | $ 110 | ||||||
E L O C [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Annual principal payment | $ 1,217,579 | ||||||
Accrued management fee | $ 30,000 | ||||||
William Coleman Smith [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Promissory note | 250,000 | ||||||
Annual principal payment | 2,500,000 | ||||||
Payment down of principal amount | 75,000 | ||||||
Due and payable on demand | $ 200,100 | ||||||
Coleman Smith [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Accrued management fee | $ 90,000 | ||||||
Number of restricted common stock issued | 2,500,000 | ||||||
Number of restricted common stock issued value | $ 60,250 | ||||||
Procniak [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of restricted common stock issued | 100,000 | ||||||
Number of restricted common stock issued value | $ 2,410 | ||||||
Hale [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of restricted common stock issued | 100,000 | ||||||
Number of restricted common stock issued value | $ 2,410 |
Future minimum lease payments i
Future minimum lease payments in respect of the above leases (Details) | Mar. 31, 2023 USD ($) |
Operating Lease | |
2023 | $ 95,780 |
2024 | 133,014 |
2025 | 138,472 |
2026 | 143,931 |
2027 | 136,527 |
Total future minimum lease payments | 647,724 |
Less: imputed interest | (96,046) |
Total | 551,678 |
Current portion of operating lease | 93,549 |
Long term portion of operating lease | $ 458,129 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | 1 Months Ended | |
May 19, 2021 | Aug. 31, 2019 | |
Operating Lease | ||
Basic month of first year | $ 9,097 | $ 3,400 |
Basic rent after six months of lease | 9,487 | |
Approximate rent end of the year | 10,592 | |
Lease liability, present valiue | $ 645,440 |
Schedule of default judgement (
Schedule of default judgement (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Damages | $ 61,890 |
Prejudgment interest at the annual rate of 10% | 9,835 |
Attorney fees | 1,200 |
Other costs | 505 |
Total judgement value | $ 73,430 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Apr. 07, 2022 | Feb. 08, 2022 | Apr. 02, 2019 | Jul. 19, 2022 | Apr. 15, 2022 | May 19, 2021 | Apr. 30, 2021 | Aug. 31, 2019 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Sep. 14, 2020 | |
Litigation settlement amount | $ 61,899 | $ 16,282 | ||||||||||
Outstanding of claim amount | $ 2,420 | |||||||||||
Remained outstanding balance | $ 54,738 | |||||||||||
Rent expense | $ 9,097 | $ 3,400 | ||||||||||
Annual initial payment | $ 94,000 | |||||||||||
Number of common stock issued, amount | $ 22,399 | |||||||||||
Mast Hill Fund L P [Member] | ||||||||||||
Number of shares issued | 4,747,662 | |||||||||||
Number of common stock issued, amount | $ 151,104 | |||||||||||
Acom Management Partners [Member] | ||||||||||||
Number of shares issued | 383,000 | 51,282 | ||||||||||
Number of common stock issued, amount | $ 120,000 | $ 60,000 | $ 60,000 | $ 60,000 | ||||||||
Sponsorship And Service Agreement [Member] | ||||||||||||
Equipment and Installation service expense | 50,000 | |||||||||||
Marketing expense | $ 100,000 |
the fair value of the outstandi
the fair value of the outstanding common stock purchase warrants (Details) - Share Purchase Warrants [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 262% |
Risk-free interest rate | 0.83% |
Stock Price | $ 0.005 |
Exercise Price | $ 0.05 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 297% |
Risk-free interest rate | 4.36% |
Stock Price | $ 2.80 |
Exercise Price | $ 1 |
A summary of the warrant activi
A summary of the warrant activity for the three months (Details) - Share Purchase Warrants [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Outstanding, Beginning Balance | shares | 19,979,471 |
Weighted Average Shares Exercise Price, Outstanding, begining balance | $ / shares | $ 0.020025 |
Shares Grants | shares | 23,967,400 |
Weighted Average Shares Exercise Price, Grants | $ / shares | $ 0.0502 |
Shares Exercised | shares | |
Weighted Average Shares Exercise Price, Exercised | $ / shares | |
Shares Expired | shares | |
Weighted Average Shares Exercise Price, Expired | $ / shares | |
Shares Outstanding, Ending Balance | shares | 43,946,871 |
Weighted Average Shares Exercise Price, Outstanding Ending Balance | $ / shares | $ 0.0035 |
Shares Exercisable | shares | 43,946,871 |
Weighted Average Shares Exercise Price, Exercisable | $ / shares | $ 0.0035 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 08, 2022 | Nov. 11, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 20, 2022 | May 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | |||||||||
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Shares issued as financing costs | $ 22,399 | ||||||||
Common Stock, shares issued | 128,401,166 | 70,837,511 | 128,401,166 | 70,837,511 | |||||
Common Stock, shares outstanding | 128,401,166 | 70,837,511 | 128,401,166 | 70,837,511 | |||||
Number of shares issued in the time of conversion, shares | 10,487 | 23,440,000 | 14,120,000 | 3,520,000 | 1,831,667 | 1,120,000 | |||
Number of shares issued in the time of conversion | $ 25,141 | $ 64,319 | $ 192,473 | $ 52,702 | $ 360,967 | $ 503,973 | |||
Number of cashless warrants exercise | 1,120,000 | ||||||||
Number of cashless warrants exercise | 560,000 | ||||||||
J H Derbie [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued in the time of conversion, shares | 497,317 | ||||||||
Number of shares issued in the time of conversion | $ 68,356 | ||||||||
Mast Hill [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued in the time of conversion, shares | 560,000 | ||||||||
Number of shares issued in the time of conversion | $ 639,620 | ||||||||
J H Darbie [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued in the time of conversion, shares | 527,400 | ||||||||
Number of shares issued in the time of conversion | $ 3,419 | ||||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock issued for debt conversion | 57,563,655 | ||||||||
Shares issued for debt conversion principal amount | $ 735,709 | ||||||||
Debt conversion accrued interest payable | 135,912 | ||||||||
Fair value of shares issued for debt conversion | 471,022 | ||||||||
Fair value of debt conversion fee | $ 20,148 | ||||||||
Shares issued as financing costs, shares | 10,769 | ||||||||
Common stock issued for conversion | 907,247 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preferred Stock, par value | $ 0.004 | $ 0.004 | $ 0.004 | $ 0.004 | |||||
Preferred stock, shares issued | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Preferred stock, shares outstanding | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred Stock, shares authorized | 1 | 1 | 1 | 1 | |||||
Preferred Stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares issued | 1 | 1 | 1 | 1 | |||||
Preferred stock, shares outstanding | 1 | 1 | 1 | 1 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Apr. 27, 2023 USD ($) $ / shares shares | |
Subsequent Event [Line Items] | |
Common stock issued for debt conversion, shares | shares | 5,555,556 |
Debt conversion price per share | $ / shares | $ 0.0027 |
Shares issued for debt conversion original debt amount | $ | $ 15,000 |