| Summary of Significant Accounting Policies | Note 3 Summary of Significant Accounting
Policies Use of estimates The preparation of the consolidated financial
statements in conformity with 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 revenue and expenses during the reporting period. Management makes its best estimate of
the ultimate outcome for these items based on historical trends and other information available when the financial statements are
prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the
period when new information becomes available to management. Actual results could differ from those estimates. Consolidation The accompanying consolidated financial
statements include the accounts of our current and former wholly owned subsidiaries, Blockchain.tv, Inc., SovRryn Holdings Inc
(“Sovryn”) and CZJ License Inc. Sovryn is consolidated up until December 31, 2022 and recognized as a discontinued
operation. CZJ License Inc. was consolidated up until it was sold on November 15, 2021. All the intercompany balances and transactions
have been eliminated in the consolidation. During the year ended December 31, 2021, the operations of Sovryn and CZJ License Inc.
were consolidated into our operations and were designated as discontinued. Segment reporting Our chief operating decision maker is our
chief executive officer, who reviews information on an aggregated basis. Reclassifications Certain prior year amounts have been reclassified
to conform to the current year presentation. Revenue recognition We adopted the ASC Topic 606, Revenue from
Contracts with Customers (“ASC 606”). We recognize revenue when we transfer promised services to the customer. The
performance obligation is the monthly services rendered. We have one main revenue source which is leasing of television station
channels. Accordingly, we recognize revenue when services are provided as time passes the customers have access to utilize the
channel. These revenues are billed in advance, arrears and/or are prepaid. The performance obligation is the monthly services rendered.
At December 31, 2022, we have one main revenue source, which is leasing of television channels. Where there is a leasing contract
for channels, we bill monthly for our services as rendered. Where there is no contract, the revenue is recognized as provided. We recognize revenue in accordance with
ASC 606 using the following 5 steps to identify revenues:
● identify the contract with a customer;
● identify the performance obligations in the contract;
● determine the transaction price;
● allocate the transaction price to performance obligations in the contract; and
● recognize revenue as the performance obligation is satisfied. Advances from client deposits are contract
liabilities with customers that represent our obligation to either transfer goods or services in the future, or refund the amount
received. Where possible, we obtain retainers to lessen our risk of non-payment by our customers. Advances from client deposits
are recognized as revenue as we meet specified performance obligations as detailed in the contract. Operating leases In February 2016, the FASB issued ASU 2016-02,
Leases (“Topic 842”). The new standard establishes a right-of-use model that requires a lessee to record a right-of-use
asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For leases with an initial term
of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize
lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally
on a straight-line basis over the term of the lease. Leases will be classified as either finance or operating, with classification
affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as sales-type, finance or
operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be
based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract.
The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal
years, with early adoption permitted. We adopted the new standard April 19, 2021. We have elected not to recognize lease assets
and lease liabilities for leases with an initial term of 12 months or less. Intangible assets Intangible assets are non-monetary identifiable
assets, controlled by us that will produce future economic benefits, based on reasonable and supportable assumptions about conditions
that will exist over the life of the asset. An intangible asset that does not meet these attributes will be recognized as an expense
when it is incurred. Intangible assets that do, are capitalized and initially measured at cost. Those with a determinable life
will be amortized on a systematic basis over their future economic life. Those with an indefinite useful life shall not be amortized
until its useful life is determined to be longer indefinite. An intangible asset subject to amortization shall be periodically
reviewed for impairment. A recoverability test will be performed and, if applicable, unscheduled amortization is considered. License agreements have been capitalized,
recorded at cost and amortized over the life of the contracts. They will be amortized over the life of the license to which it
supports. Equipment Equipment represents purchases made for
assets, whose useful life was determined to be greater than one year. The assets are initially recorded at cost and depreciated
over their estimated useful lives. Website development costs We recognized the costs associated with
developing a website in accordance with ASC 350-50 “Website Development Cost”. The website development costs are divided
into three stages, planning, development and production. The development stage can further be classified as application and infrastructure
development, graphics development and content development. In short, website development cost for internal use should be capitalized
except content input and data conversion costs in content development stage. Costs associated with the website consist
primarily of website development costs paid to third party. These capitalized costs will be amortized based on their estimated
useful life over three years upon the website becoming operational. Internal costs related to the development of website content
will be charged to operations as incurred. Website development costs related to the customers are charged to cost of sales. Impairment of Long-Lived
Assets In accordance with the provisions of ASC
Topic 360, “Impairment or Disposal of Long-Lived Assets ” Concentration of credit risk We place our cash and cash equivalents
with a high credit quality financial institution. We maintain United States Dollars. We minimize its credit risks associated with
cash by periodically evaluating the credit quality of its primary financial institution. Financial instruments Our financial instruments consist principally
of cash, accounts payable, accrued liabilities and notes payable. The carrying amounts of such financial instruments in the accompanying
financial statements approximate their fair values due to their relatively short-term nature or the underlying terms are consistent
with market terms. It is the management’s opinion that we are not exposed to any significant currency or credit risks arising
from these financial instruments. Fair value measurements We follow the guidelines in ASC Topic 820
“Fair Value Measurements and Disclosures”. Fair value is defined as the price that would be received from selling an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining
the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal
or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants
would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. We apply the following fair value hierarchy,
which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon
the lowest level of input that is available and significant to the fair value measurement. All financial instruments approximate
their fair value.
Level 1 — Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including option pricing models and discounted cash flow models. Convertible Notes with Fixed Rate Conversion
Options We may enter into convertible notes, some
of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be
converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion.
This results in a fair value of the convertible note being equal to a fixed monetary amount. We record the convertible note liability
at its fixed monetary amount by measuring and recording a premium, as applicable, on the note date with a charge to interest expense
in accordance with ASC 480 - “Distinguishing Liabilities from Equity”. Advertising and promotion costs We follow ASC 720 “Advertising Costs”
and expenses costs as incurred. Stock-based compensation We follow the guideline under ASC 718,
“Stock Compensation”. The standard provides that for all stock-based compensation plans, including employee stock options,
restricted stock, employee stock purchase plans and stock appreciation rights, which requires that all share-based payments to
both employees and directors be recognized in the income statement based on their fair values. For non-employees stock-based compensation,
We apply ASC 505 Equity-Based Payments to Non-employees. This standard provides that all stock-based compensation related to non-employees
be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever can be
most reliably be measured or determinable. Comprehensive income ASC Topic 220, “ Comprehensive
Income Loss per share Net Loss Per Share Basic loss per share is calculated by dividing
the loss attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted loss per share
reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that shared in our earnings (loss). Diluted loss per share is computed
by dividing the loss available to stockholders by the weighted average number of shares outstanding for the period and dilutive
potential shares outstanding unless such dilutive potential shares would result in anti-dilution. As of December 31, 2022 and 2021,
no options were outstanding and 246,173,016 192,573,017 22,154,828 17,365,033 1,148,500,170 866,192,064 318,056,580 155,000,000 1,152,500,000 39,895,000 3,060,124,766 2,724,216,661 the number of shares
converted into either 4.99% or 9.99% of the then outstanding shares. Schedule of Potentially Dilutive Securities
December 31, 2022 December 30, 2021
Warrants 246,173,016 192,573,017
Convertible Preferred Stock 1,665,451,580 1,665,451,580
Convertible debt 1,148,500,170 866,192,064
Total 3,060,124,766 2,724,216,661 Business Combinations In accordance with ASC 805-10, “Business
Combinations”, we account for all business combinations using the acquisition method of accounting. Under this method, assets
and liabilities, including any remaining non-controlling interests, are recognized at fair value at the date of acquisition. The
excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and non-controlling interests
is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or non-controlling interests
made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments
to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that
we hold in the acquired company prior to the acquisition is re-measured to fair value at acquisition with a resulting gain or loss
recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity
are included in our results from the date of the acquisition onward and include amortization expense arising from acquired tangible
and intangible assets. Credit losses In June 2016, the FASB issued ASU 326,
“Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL)
model which requires us to measure all expected credit losses for financial instruments held at the reporting date based on historical
experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable
to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit
exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal
years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies
to calendar year 2023. We are currently assessing the impact of the adoption of this ASU on its financial statements. Related Party Transactions We follow FASB ASC
subtopic 850-10, “Related Party Transactions”, for the identification of related parties and disclosure of related
party transactions. Pursuant to ASC 850-10-20,
related parties include: a) our affiliates; b) entities for which investments in their equity securities would be required, absent
the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted
for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit sharing trusts
that are managed by or under the trusteeship of management; d) our principal owners; e) our management; f) other parties with which
we may deal if one party controls or can significantly influence the management or operating policies of the other to an extent
that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that
can significantly influence the management or operating policies of the transacting parties or that have an ownership interest
in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties
might be prevented from fully pursuing its own separate interests. Material related party
transactions are required to be disclosed in the consolidated financial statements, other than compensation arrangements, expense
allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated
in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall
include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no
amounts or nominal amounts were ascribed, for each of the periods for which statements of operation are presented, and such other
information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar
amounts of transactions for each of the periods for which statements of operations are presented and the effects of any change
in the method of establishing the terms from that used in the preceding period; and d) amounts due from or to related parties as
of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Discontinued operations Discontinued operations are components
of an entity that either have been disposed or abandoned or is classified as held for sale. Additionally, in order to qualify as
a discontinued operation, the disposal or abandonment must represent a strategic shift that has or will have a major effect on
an entity’s operations and financial results. Income taxes We follow the guideline under ASC Topic
740 Income Taxes. “Accounting for Income Taxes” which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this
method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets
and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable
to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized. Due to the uncertainty regarding our future profitability,
the future tax benefits of its losses have been fully reserved. Recently Issued Accounting Pronouncements We adopt new pronouncements relating to
generally accepted accounting principles applicable to us as they are issued, which may be in advance of their effective date. In May 2021, the FASB issued ASU 2021-04,
Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic
718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses issuer’s
accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment is effective
for all entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early
adoption is permitted. We are currently evaluating the impact this new guidance will have on its financial statements We do not believe that any other recently
issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated
financial statements. |
