Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Beyond Commerce, Inc. | |
Entity Central Index Key | 0001386049 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 11,215,167,415 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-52490 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 98-0512515 | |
Entity Address Address Line 1 | 3773 Howard Hughes Pkwy | |
Entity Address Address Line 2 | Suite 500 | |
Entity Address City Or Town | Las Vegas | |
Entity Address State Or Province | NV | |
Entity Address Postal Zip Code | 89169 | |
City Area Code | 702 | |
Local Phone Number | 675-8022 | |
Phone Fax Number Description | Registrant’s telephone number, including area code | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash & cash equivalents | $ 303,573 | $ 84,262 |
Accounts receivable, net | 959,514 | 1,169,486 |
Other current assets | 11,685 | 23,123 |
Total current assets | 1,274,772 | 1,276,871 |
Operating Lease right of use asset | 68,945 | 97,008 |
Property, equipment, and software - net | 27,796 | 39,245 |
Intangible asset- net | 2,352,674 | 2,657,458 |
Goodwill | 1,299,144 | 1,299,144 |
Total assets: | 5,023,331 | 5,369,726 |
Current liabilities: | ||
Accounts payable | 553,203 | 892,557 |
Operating Lease Liability, current | 46,062 | 41,326 |
Accrued Interest | 892,105 | 699,344 |
Accrued payroll & related items | 126,806 | 1,402,714 |
Accrued loss contingency | 871,656 | 0 |
Derivative liability | 424,048 | 1,005,617 |
Short-term borrowings - net of discount | 1,731,428 | 2,929,983 |
Short-term borrowings- related party | 1,500,000 | 54,000 |
Total current liabilities | 6,145,308 | 7,025,541 |
Long-term borrowings - net of discount | 3,344,951 | 3,152,580 |
Operating lease liability, noncurrent | 31,184 | 66,421 |
Total liabilities | 9,521,443 | 10,244,542 |
Stockholders Equity: | ||
Common stock, $0.001 par value, 30,000,000,000 shares authorized, 7,854,877,415 and 3,410,355,200 issued and outstanding, respectively. | 7,854,877 | 3,410,355 |
Additional paid in capital | 55,000,137 | 50,263,645 |
Accumulated deficit | (67,437,753) | (58,645,834) |
Deficit attributable to Beyond Commerce, Inc stockholder | (4,581,426) | (4,971,834) |
Equity attributable to noncontrolling interest | 83,314 | 97,018 |
Total stockholders' deficit | (4,498,112) | (4,874,816) |
Total liabilities and stockholders' deficit | 5,023,331 | 5,369,726 |
Series A Preferred Stock [Member] | ||
Stockholders Equity: | ||
Preferred stock value | 0 | 0 |
Series B Preferred Stock [Member] | ||
Stockholders Equity: | ||
Preferred stock value | 0 | 0 |
Series C Preferred Stock [Member] | ||
Stockholders Equity: | ||
Preferred stock value | $ 1,313 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Common Stock, par or stated value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 30,000,000,000 | 30,000,000,000 |
Common Stock, shares issued | 7,854,877,415 | 3,410,355,200 |
Common Stock, shares outstanding | 7,854,877,415 | 3,410,355,200 |
Series A Preferred Stock [Member] | ||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 250 | 250 |
Preferred stock, shares issued | 250 | 250 |
Preferred stock, shares outstanding | 250 | 250 |
Series B Preferred Stock [Member] | ||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 51 | 51 |
Preferred stock, shares issued | 51 | 33 |
Preferred stock, shares outstanding | 51 | 33 |
Series C Preferred Stock [Member] | ||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 1,312,905 | 0 |
Preferred stock, shares outstanding | 1,312,905 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Revenues | $ 1,024,501 | $ 983,155 | $ 3,258,619 | $ 3,012,754 |
Operating expenses | ||||
Cost of revenue | 287,439 | 326,452 | 1,008,503 | 996,889 |
Selling, general and administrative | 158,057 | 234,742 | 542,120 | 886,894 |
Payroll expense | 619,659 | 640,557 | 2,122,789 | 1,897,723 |
Professional Fees | 369,674 | 328,952 | 1,145,851 | 792,693 |
Depreciation and amortization | 105,412 | 124,253 | 316,233 | 371,899 |
Total operating expenses | 1,540,241 | 1,654,956 | 5,135,496 | 4,946,098 |
Loss from operations | (515,740) | (671,801) | (1,876,877) | (1,933,344) |
Non-operating income (expense) | ||||
Interest expense | (189,830) | (638,720) | (456,947) | (1,542,467) |
Amortization of debt discount | (26,562) | (72,113) | (79,686) | (620,764) |
Derivative related expenses | 0 | (100,452) | (2,944,750) | (1,352,527) |
Change in derivative liability | (223,676) | (6,246,363) | 507,678 | (5,219,055) |
Loss on extinguishment of debt | (1,131,856) | 0 | (5,088,555) | 0 |
Gain on forgiveness of PPP Loan | 628,403 | 0 | 1,133,514 | 0 |
Total non-operating income (expense) | (943,521) | (7,057,648) | (6,928,746) | (8,734,813) |
Loss from continuing operations before income tax | (1,459,261) | (7,729,449) | (8,805,623) | (10,668,157) |
Income from discontinued operation, net of tax | 0 | 0 | 0 | 350,700 |
Provision for income tax | 0 | 0 | 0 | 0 |
Consolidated net loss | (1,459,261) | (7,729,449) | (8,805,623) | (10,317,457) |
Noncontrolling interest | (4,587) | (4,410) | (13,704) | (31,825) |
Consolidated net loss, controlling interest | $ (1,454,674) | $ (7,725,039) | $ (8,791,919) | $ (10,285,632) |
Net income (loss) per common share-basic and diluted | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average shares of capital outstanding - basic and diluted | 6,844,198,467 | 2,927,661,679 | 3,710,228,168 | 2,129,022,445 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
Net (loss) | $ (8,805,623) | $ (10,317,457) |
(Income) from discontinued operations | 0 | (350,700) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock issued for services | 263,700 | 190,450 |
Loss on derivative | 2,944,750 | 2,238,451 |
Amortization of debt discount | 0 | 620,764 |
Loss on extinguishment of debt | 5,088,555 | 0 |
Gain on forgiveness of PPP loan | (1,133,514) | 0 |
Interest default and accretion addition to notes payable | 94,686 | 0 |
Depreciation and amortization | 316,233 | 371,889 |
Change in derivative liability | (507,678) | 5,219,055 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable | 209,972 | 247,256 |
(Increase) decrease in other current assets | 39,502 | (31,055) |
Increase (decrease) in accounts payable | (339,358) | 161,561 |
Increase (decrease) in payroll liabilities | (36,108) | 418,869 |
Increase (decrease) in other current liabilities | 400,510 | 310,834 |
Net cash provided by (used in) in operating activities. | (1,464,373) | (920,073) |
Cash flows from investing activities : | ||
Acquisition of property and equipment | 0 | (16,230) |
Net cash used in investing activities | 0 | (16,230) |
Cash flows from financing activities: | ||
Cash receipts from note payable | 775,000 | 527,255 |
Proceeds from sale of preferred stock series C | 1,000,000 | 0 |
Payment on note payable | (91,316) | 0 |
Net cash provided by (used in) financing activities | 1,683,684 | 446,015 |
Net increase (decrease) in cash and cash equivalents | 219,311 | (490,288) |
Cash and cash equivalents, beginning balance | 84,262 | 585,339 |
Cash and cash equivalents, ending balance | 303,573 | 95,051 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest | 16,924 | 0 |
Income taxes | 0 | 0 |
Summary of Non-Cash Investing and Financing Information: | ||
Stock issued for conversion of debt | 943,288 | 1,504,995 |
Stock issued for conversion of Series C preferred stock | 2,540,000 | 0 |
Stock issued for warrant settlement | $ 581,097 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) | Total | Common Stock | Series B, Preferred Stock | Noncontrolling Interest | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Series A, Preferred Stock | Series C, Preferred Stock |
Balance, shares at Dec. 31, 2019 | 1,495,004,678 | 270 | ||||||
Balance, amount at Dec. 31, 2019 | $ (3,003,794) | $ 1,495,004 | $ 0 | $ 131,250 | $ 43,597,152 | $ (48,227,200) | ||
Common stock issued for debt conversion, shares | 132,910,000 | |||||||
Common stock issued for debt conversion, amount | 132,910 | $ 132,910 | 0 | 0 | 0 | 0 | ||
Extinguishment of derivative liabilities on conversion, amount | 132,005 | 0 | 0 | 0 | 132,005 | 0 | ||
Net loss | (444,784) | $ 0 | $ 0 | (20,200) | 0 | (424,584) | ||
Balance, shares at Mar. 31, 2020 | 1,627,914,678 | 270 | ||||||
Balance, amount at Mar. 31, 2020 | (3,183,663) | $ 1,627,914 | $ 0 | 111,050 | 43,729,157 | (48,651,784) | ||
Balance, shares at Dec. 31, 2019 | 1,495,004,678 | 270 | ||||||
Balance, amount at Dec. 31, 2019 | (3,003,794) | $ 1,495,004 | $ 0 | 131,250 | 43,597,152 | (48,227,200) | ||
Net loss | (10,317,457) | |||||||
Balance, shares at Sep. 30, 2020 | 3,000,000,000 | 283 | ||||||
Balance, amount at Sep. 30, 2020 | (5,468,144) | $ 3,000,000 | 99,425 | 49,945,263 | (58,512,832) | |||
Balance, shares at Mar. 31, 2020 | 1,627,914,678 | 270 | ||||||
Balance, amount at Mar. 31, 2020 | (3,183,663) | $ 1,627,914 | $ 0 | 111,050 | 43,729,157 | (48,651,784) | ||
Common stock issued for debt conversion, shares | 889,766,383 | |||||||
Common stock issued for debt conversion, amount | 889,766 | $ 889,766 | 0 | 0 | 0 | 0 | ||
Extinguishment of derivative liabilities on conversion, amount | 1,101,419 | 0 | 0 | 0 | 1,101,419 | 0 | ||
Net loss | (2,143,224) | $ 0 | $ 0 | (7,215) | 0 | (2,136,009) | ||
Balance, shares at Jun. 30, 2020 | 2,517,681,061 | 270 | ||||||
Balance, amount at Jun. 30, 2020 | (3,335,702) | $ 2,517,680 | $ 0 | 103,835 | 44,830,576 | (50,787,793) | ||
Common stock issued for debt conversion, shares | 482,318,939 | |||||||
Common stock issued for debt conversion, amount | 482,320 | $ 482,320 | 0 | 0 | 0 | 0 | ||
Extinguishment of derivative liabilities on conversion, amount | 4,924,237 | 0 | 0 | 0 | 4,924,237 | 0 | ||
Net loss | (7,729,449) | 0 | $ 0 | (4,410) | 0 | (7,725,039) | ||
Extinguishment of derivative liabilities on conversion, shares | 13 | |||||||
Stock issued for services, amount | 190,450 | $ 0 | $ 0 | 0 | 190,450 | 0 | ||
Balance, shares at Sep. 30, 2020 | 3,000,000,000 | 283 | ||||||
Balance, amount at Sep. 30, 2020 | (5,468,144) | $ 3,000,000 | 99,425 | 49,945,263 | (58,512,832) | |||
Balance, shares at Dec. 31, 2020 | 3,410,355,200 | 33 | 250 | |||||
Balance, amount at Dec. 31, 2020 | (4,874,816) | $ 3,410,355 | $ 0 | 97,018 | 50,263,645 | (58,645,834) | $ 0 | $ 0 |
Extinguishment of derivative liabilities on conversion, amount | 2,958,547 | 0 | 0 | 0 | 2,958,547 | 0 | 0 | 0 |
Net loss | (6,295,045) | $ 0 | 0 | (4,936) | 0 | (6,290,109) | 0 | 0 |
Common stock for debt conversion, shares | 943,288,342 | |||||||
Common stock for debt conversion, amount | 943,288 | $ 943,288 | 0 | 0 | 0 | 0 | 0 | $ 0 |
Preferred stock Series C issued, shares | 10,000 | |||||||
Preferred stock Series C issued, amount | 1,000,000 | 0 | $ 0 | 0 | 999,990 | 0 | 0 | $ 10 |
Preferred Series B Issuance, shares | 3 | |||||||
Preferred Series B Issuance, amount | 43,950 | $ 0 | 0 | 43,950 | 0 | $ 0 | ||
Extinguishment of Debt, shares | 598,048,320 | 1,556,905 | ||||||
Extinguishment of Debt, amount | 3,435,695 | $ 598,048 | $ 0 | 0 | 2,836,090 | 0 | $ 0 | $ 1,557 |
Balance, shares at Mar. 31, 2021 | 4,951,691,862 | 36 | 250 | 1,566,905 | ||||
Balance, amount at Mar. 31, 2021 | (2,788,381) | $ 4,951,691 | $ 0 | 92,082 | 57,102,222 | (64,935,943) | $ 0 | $ 1,567 |
Balance, shares at Dec. 31, 2020 | 3,410,355,200 | 33 | 250 | |||||
Balance, amount at Dec. 31, 2020 | (4,874,816) | $ 3,410,355 | $ 0 | 97,018 | 50,263,645 | (58,645,834) | $ 0 | $ 0 |
Net loss | (8,805,623) | |||||||
Balance, shares at Sep. 30, 2021 | 7,854,877,415 | 51 | 250 | 1,312,905 | ||||
Balance, amount at Sep. 30, 2021 | (4,498,112) | $ 7,854,877 | $ 0 | 83,314 | 55,000,137 | (67,437,753) | $ 0 | $ 1,313 |
Balance, shares at Mar. 31, 2021 | 4,951,691,862 | 36 | 250 | 1,566,905 | ||||
Balance, amount at Mar. 31, 2021 | (2,788,381) | $ 4,951,691 | $ 0 | 92,082 | 57,102,222 | (64,935,943) | $ 0 | $ 1,567 |
Net loss | (1,051,317) | $ 0 | (4,181) | 0 | (1,047,136) | 0 | $ 0 | |
Common stock issued for Preferred Stock conversion, shares | 1,230,000,000 | (123,000) | ||||||
Common stock issued for Preferred Stock conversion, amount | 0 | $ 1,230,000 | $ 0 | 0 | (1,229,877) | 0 | $ 0 | $ (123) |
Balance, shares at Jun. 30, 2021 | 6,181,691,862 | 36 | 250 | 1,443,905 | ||||
Balance, amount at Jun. 30, 2021 | (3,839,698) | $ 6,181,691 | $ 0 | 87,901 | 55,872,345 | (65,983,079) | $ 0 | $ 1,444 |
Net loss | (1,459,261) | $ 0 | 0 | (4,587) | 0 | (1,454,674) | 0 | $ 0 |
Common stock issued for Preferred Stock conversion, shares | 1,310,000,000 | (131,000) | ||||||
Common stock issued for Preferred Stock conversion, amount | 0 | $ 1,310,000 | 0 | 0 | (1,309,869) | 0 | 0 | $ (131) |
Common stock issued for warrants, shares | 363,185,553 | |||||||
Common stock issued for warrants, amount | 581,097 | $ 363,186 | $ 0 | 0 | 217,911 | 0 | 0 | 0 |
Preferred stock Series B issued for services, shares | 15 | |||||||
Preferred stock Series B issued for services, amount | 219,750 | $ 0 | $ 0 | 0 | 219,750 | 0 | $ 0 | $ 0 |
Balance, shares at Sep. 30, 2021 | 7,854,877,415 | 51 | 250 | 1,312,905 | ||||
Balance, amount at Sep. 30, 2021 | $ (4,498,112) | $ 7,854,877 | $ 0 | $ 83,314 | $ 55,000,137 | $ (67,437,753) | $ 0 | $ 1,313 |
NOTE 1. DESCRIPTION OF BUSINESS
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Beyond Commerce, Inc. (the “Company”, “we” and “our”), has a planned business objective to develop, acquire, and deploy disruptive strategic software technology and market-changing business models through selling our own products and the acquisitions of existing companies. We plan to offer a cohesive digital product and services platform to provide our future clients with a single point of contact for all their Internet Marketing Technology and Services (IMT&S) and Information Management (IM) initiatives. Basis of Presentation The condensed consolidated financial statements and the notes thereto for the periods ended September 30, 2021 and 2020 included herein include the accounts of the Company, its wholly-owned subsidiaries Service 800 Inc., Customer Centered Strategies, LLC (“CCS”), which the Company has an 80% investment interest, and PathUX and IDriveYourCar (which have both been discontinued as of April 24, 2020, see Note 4 – Discontinued Operations). The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidation. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
NOTE 2. SELECTED ACCOUNTING POL
NOTE 2. SELECTED ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
SELECTED ACCOUNTING POLICIES | NOTE 2. SELECTED ACCOUNTING POLICIES Interim Financial Statements These unaudited condensed consolidated financial statements as of and for the three (3) and nine (9) months ended September 30, 2021 and 2020, respectively, reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019, respectively, which are included in the Company’s December 31, 2020 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on April 15, 2021. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the three (3) and nine (9) months ended September 30, 2021 are not necessarily indicative of results for the entire year ending December 31, 2021. Use of Estimates The preparation of consolidated financial statements and accompanying notes in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used in the determination of depreciation and amortization and the valuation for non-cash issuances of equity instruments, income taxes, and contingencies, among others. Actual results could differ materially from these estimates. Cash and Cash Equivalents The Company classifies as cash and cash equivalents amounts on deposit in banks and cash temporarily in various instruments with original maturities of nine months or less at the time of purchase. The Company’s cash management system is currently integrated within several banking institutions. Fair Value of Financial Instruments The carrying value of the current assets and liabilities approximate fair value due to their relatively short maturities. Fair Value Measurements Statement of financial accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value. The Company applies the fair value hierarchy as established by GAAP. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure the fair value as follows. · Level 1 · Level 2 · Level 3 September 30, 2021 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 424,048 $ 424,048 Total $ - $ - $ 424,048 $ 424,048 December 31, 2020 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 1,005,617 $ 1,005,617 Total $ - $ - $ 1,005,617 $ 1,005,617 Derivative liability as of December 31, 2020 $ 1,005,617 Change in derivative liability during the period (507,678 ) Reclassed to additional paid in capital for notes converted into shares of common stock (2,958,547 ) Loss on derivative liability on conversion 2,944,750 Reclass to accrued loss contingency (60,094 ) Balance at September 30, 2021 $ 424,048 Management considers all of its derivative liabilities to be Level 3 liabilities. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC Subtopic 606-10, Revenue Recognition. We recognize revenue as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenue, we apply the following five step approach: (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 the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We account for a contract based on the terms and conditions the parties agree to, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. The majority of the Company’s revenue is generated by the completion of a survey. Revenue is recognized and customers are billed at the point in time a survey occurs or when a related service is complete. The Company may require a deposit from new customers for set up costs or as down payments. These amounts are not significant to the financial statements. Valuation of Derivative Instruments ASC 815 “Derivatives and Hedging” requires that embedded derivative instruments be bifurcated and assessed, along with free-standing derivative instruments such as warrants, on their issuance date and measured at their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option pricing formula. Upon conversion of a note where the embedded conversion option has been bifurcated and accounted for as a derivative liability, the Company records the shares at fair value, relieves all related notes, derivatives and debt discounts, and recognizes a net gain or loss on debt extinguishment. September 30, 2021 Derivative Liability Expected term 1 year Exercise price $ 0.00028 Expected volatility 198 % Expected dividends None Risk-free rate 0.09 % Reclassifications We may make certain reclassifications to prior period amounts to conform with the current year’s presentation. These reclassifications did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows. Recent Accounting Pronouncements The Company reviews all of the Financial Accounting Standard Board’s updates periodically to ensure the Company’s compliance of its accounting policies and disclosure requirements to the Codification Topics. The FASB has issued ASU No. 2019–12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740. The guidance also improves consistent application by clarifying and amending existing guidance from ASC 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein and is to be applied on a retrospective, modified retrospective or prospective approach, depending on the specific amendment. Early adoption is permitted. The adoption of the new guidance did not change anything in the consolidated financial statements and therefore had no material impact. In August 2020, the Financial Accounting Standards Board (“FASB”) issued a new standard (ASU 2020-06) to reduce the complexity of accounting for convertible debt and other equity-linked instruments. The ASU simplifies accounting for convertible instruments by removing major separation models required under current Generally Accepted Accounting Principles (GAAP). Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas. As a result, the new standard may affect net income and EPS, and therefore performance measures, and increase debt levels which may impact debt covenant compliance. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption will be permitted. The Company will continue to monitor these emerging issues to assess any potential future impact on its financial statements. The Company has taken the position that any future standards will not be disclosed to the extent they are not material to our operations. |
NOTE 3. GOING CONCERN
NOTE 3. GOING CONCERN | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 3. GOING CONCERN | |
GOING CONCERN | NOTE 3. GOING CONCERN The Company's financial statements are prepared using GAAP, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. Because of recent events, the Company cannot state with certainty of its ability to continue as a going concern. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered losses from operations and has a working capital deficit, and negative cash flows from operations which raise substantial doubt about its ability to continue as a going concern. Management is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations in the next twelve months. Management has devoted a significant amount of time in attempting to raise capital from additional debt and equity financing. Due to its nominal revenues, the Company’s ability to continue as a going concern is dependent upon raising additional funds through debt and equity financing and generating revenue, including through the acquisition of Service 800 and CCS or through a merger transaction with a well-capitalized entity. There are no assurances the Company will receive the necessary funding or generate revenue necessary to fund operations. If we are unable to obtain additional funds, or if the funds cannot be obtained on terms favorable to us, we will be required to delay, scale back or eliminate our plans to continue to develop and expand our operations or in the extreme situation, cease operations altogether. |
NOTE 4. DISCONTINUED OPERATIONS
NOTE 4. DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 4. DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | NOTE 4. DISCONTINUED OPERATIONS PathUX, LLC On April 24, 2020, the Company entered into a Settlement and Release Agreement whereby, effective as of April 1, 2020, the purchase agreement between the former shareholders of PathUX and IDriveYourCar dated May 31, 2019 was effectively unwound, with all assets and liabilities returned to such former shareholders. Income (loss) from discontinued operations, net of tax and the loss on sale of discontinued operations, net of tax, of the PathUX business which is presented in total as discontinued operations, net of tax in the Company’s Consolidated Statements of Operations for the period ended September 30, 2020 is as follows: 2020 Total net sales $ 219,867 Cost of sales 147,829 Operating, selling, general and administrative expenses 91,133 Amortization of software 134,686 Income (loss) from discontinued operations (153,781 ) Gain on sale of discontinued operations 504,481 Income tax provision - Discontinued operations, net of tax 350,700 As the sale was finalized shortly after close of the first quarter 2020, the current balance sheet no longer reflects these operations. |
NOTE 5. SHORT- AND LONG-TERM BO
NOTE 5. SHORT- AND LONG-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 5. SHORT- AND LONG-TERM BORROWINGS | |
SHORT- AND LONG-TERM BORROWINGS | NOTE 5. SHORT- AND LONG-TERM BORROWINGS Short-term and Long-term borrowings, consist of the following: September 30, December 31, Short term debt; 2021 2020 Convertible Promissory Notes, bearing an annual interest rate of 12% secured, due 08/27/2019 $ 112,259 $ 97,259 Short-Term Note – Jean Mork Bredeson cash deficit holdback, 15%, past due 210,000 210,000 Short-Term Note – Jean Mork Bredeson purchase allocation, 15%, past due 1,409,169 1,409,169 Funding from the Payroll Protection Program, annual interest of 1%, due 04/24/2022 - 500,000 Convertible Promissory Notes, bearing an annual interest rate of 8% secured, due 08/07/2020 - 713,555 Total short-term debt $ 1,731,428 $ 2,929,983 Long term debt; Convertible Promissory Notes, bearing an annual interest rate of 5.0%, due 12/31/22 312,685 350,000 Funding from the SBA Program, annual interest of 3.75%, due 03/30/2051 150,000 - Promissory Note – Jean Mork Bredeson, interest rate 5.5%, due 2/28/2022 2,100,000 2,100,000 Senior Secured Redeemable Debenture, bearing an annual interest rate of 16%, due 12/31/2021, long term 826,547 826,547 Total short-term and long-term borrowings, before debt discount 5,120,660 6,206,530 Less debt discount (44,281 ) (123,967 ) Total short-term and long-term borrowings, net $ 5,076,379 $ 6,082,563 Short-term and Long-term borrowings, consist of the following: Short-term borrowings – net of discount $ 1,731,428 $ 2,929,983 Long-term borrowings – net of discount 3,344,951 3,152,580 Total Short-Term and long term borrowings – net of discount $ 5,076,379 $ 6,082,563 On August 7, 2018, we entered into a securities purchase agreement (“SPA”) with Discover Growth Fund, LLC (“Discover”), pursuant to which we issued a senior secured redeemable convertible debenture in the principal amount of $2,717,391 (of which $217,391 was retained by Discover as an original issue discount) (the “Debenture”), in exchange for $500,000 cash consideration and a promissory note issued to the Company in the amount of $2,000,000 (the “Note”). During the fiscal year 2019, Discover Growth Fund LLC issued the additional $2,000,000 to the Company and converted $1,249,522 of the aggregate debt. During the year ended December 31, 2020, Discover Growth Fund LLC converted $754,315 of their outstanding debt. On March 19, 2021, the Company entered into a securities exchange agreement (the “Exchange Agreement”) with an existing institutional investor (the “Investor”), whereby, in exchange for the Investor returning to the Company for cancellation the Senior Secured Redeemable Convertible Debenture, issued by the Company on August 7, 2018, which was convertible into Common Stock at a variable conversion price. The Company is issuing to the Investor 1,556,905 shares of the Company’s Series C Convertible Preferred Stock, which are convertible into a fixed number of shares of Common Stock. The valuation was derived from a loss on extinguishment of debt of $3,435,695 that represents the fair value of debt forgiveness, less the issuance of 598,048,320 common stock shares valued at par of $0.001. On November 27, 2018, the Company received funding in conjunction with a convertible promissory note and a security purchase agreement dated November 27, 2018, in the amount of $250,000. The lender was Auctus Fund LLC. The notes have a maturity of August 27, 2019 and interest rate of 12% per annum and are convertible at a price of 60% of the lowest trading price on the primary trading market on which the Company’s Common Stock is then listed for the twenty-five (25) trading days immediately prior to conversion. Additionally, if the stock price falls below par value, additional shares will be issued at the lower conversion rate so that stocks continue to be issued at par value. The note may be prepaid but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The Company is currently negotiating an extension with the noteholder as it is currently past due. As a result of a default provision, the interest rate has increased to 24% and additional principal was added in the amount of $15,000. This note has been reduced by the issuance of 1,092,829,802 shares of stock during the years 2019 and 2020. As of September 30, 2021, the outstanding balance is $112,259. Effective February 28, 2019 as a component of the closing of the business combination between Beyond Commerce, Inc. and Service 800, Jean Mork Bredeson, Founder and President of Service 800, the Company issued a $2,100,000 three-year 5.5% promissory note to Ms. Bredeson. Interest only payments are required during the first year of the note. The $2,100,000 promissory note is personally guaranteed by the estate of George Pursglove whose executor is Geordan Pursglove, the Company’s President and CEO. As a component of the Service 800 transaction, in lieu of the entire cash payment of $2,100,000 being made to Ms. Bredeson, a $210,000 amount was to be withheld until May 30, 2019 and continues to be outstanding. This note does not carry any interest obligations. Also, as all cash and accounts receivables at the effective date of the closing were to be retained by Ms. Bredeson, this allocation of cash is to be distributed quarterly on a non interest basis as true-ups are derived, which amounted to $1,409,169 as of December 31, 2020 and September 30, 2021 respectively. Although holdbacks did not initially include interest obligations, we agreed to begin accruing interest at 10% in September 2019, and then 15% in October 2019 if we passed an agreed repayment date. On December 31, 2019, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with TCA Special Situations Credit Strategies ICAV, an Irish collective asset vehicle (the “Buyer” or “TCA ICAV”), and TCA Beyond Commerce, LLC, a Wyoming limited liability company (“TCA Beyond Commerce”), pursuant to which the Buyer purchased from the Company a senior secured redeemable debenture having an initial principal amount of $900,000 and an interest rate of 16% per annum (the “Initial Debenture”). The Initial Debenture, and any future debentures that may be purchased by Buyer pursuant to the Securities Purchase Agreement (the “Additional Debentures”), is secured through an unconditional and continuing security interest in all of the assets and properties, including after acquired assets, of the Company and each of its subsidiaries, which are acting as guarantors with respect to the Company’s obligations under the Initial Debenture and any Additional Debentures, pursuant to that certain Security Agreement, dated December 31, 2019, entered into by the Company and TCA Beyond Commerce in favor of the Buyer (the “Security Agreement”). In addition, Geordan Pursglove, the Company’s CEO, delivered a personal guaranty with respect to the Company’s obligations under the Securities Purchase Agreement. The maturity date on this security is December 31, 2021. During the year ended December 31, 2020 the Company paid $73,453 to reduce the loan balance. In May 2020, the SEC appointed a Receiver to close down the TCA Global Master Fund, L.P. over allegations of accounting fraud. The amount recorded by the Company as being owed to TCA was based on TCA’s application of prior payments made by the Company. The Company believes that prior payments of principal and interest may have been applied to unenforceable investment banking and other fees and charges. It is the Company’s position that the amount owed to TCA is less than the amount set forth above. TCA Beyond Commerce entered into a Membership Interest Purchase Agreement (the “Membership Interest Purchase Agreement”), whereby TCA Beyond Commerce acquired 100% of the authorized and issued membership interests of CCS from its sole member (the “CCS Seller”). TCA Beyond Commerce acquired the membership interests for a purchase price of $525,000 (the “CCS Purchase Price”), with $175,000 paid in cash at closing and the remaining $350,000 to be paid through TCA Beyond Commerce’s issuance of a convertible promissory note with an original principal of $350,000 and a conversion feature that provides the CCS Seller with the right to convert outstanding principal and accrued interest into shares of the Company’s common stock at a price based on the 10-day trailing average price of the Company’s stock. The cash maturity date is December 31, 2022. $175,000 is to be paid in cash, with the remaining $175,000 to be repaid through conversion, unless a larger conversion is requested by the noteholder. During the nine months of 2021, payments of principal and accrued interest totaling $46,065 were made reducing the principal balance outstanding to $312,684. On April 24, 2020, the Company through its Service 800 Inc. subsidiary received $500,000 in funding in conjunction with a promissory note under the Payroll Protection Program is made pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). After sixty (60) days from the date the Loan is funded, but not more than twenty-four (24) weeks from the date the Loan is funded, Borrower shall apply to Bank for loan forgiveness. If the SBA confirms full and complete forgiveness of the unpaid balance of the Loan, and reimburses Bank for the total outstanding balance, principal and interest, Borrower’s obligations under the Loan will be deemed fully satisfied and paid in full. If the SBA does not confirm forgiveness of the Loan, or only partly confirms forgiveness of the Loan, or Borrower fails to apply for loan forgiveness, Borrower will be obligated to repay to the Bank the total outstanding balance remaining due under the Loan, including principal and interest, and in such case, Bank will establish the terms for repayment of the Loan Balance in a separate documentation to be provided to Borrower, which letter will set forth the Loan Balance, the amount of each monthly payment, the interest rate (not in excess of a fixed rate of one per cent (1.00% per annum), the term of the Loan, and the maturity date of two (2) years from the funding date of the Loan. No principal or interest payments will be due prior to the end of the Deferment Period. Because we anticipate the note being forgiven within the next year it is classified as short term. On April 19, 2021 the loan was forgiven by the SBA. On February 8, 2021, the Company through its Service 800 Inc. subsidiary, received $625,000 in funding in conjunction with a promissory note under the Payroll Protection Program is made pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). After sixty (60) days from the date the Loan is funded, but not more than twenty-four (24) weeks from the date the Loan is funded, Borrower shall apply to Bank for loan forgiveness. If the SBA confirms full and complete forgiveness of the unpaid balance of the Loan, and reimburses the Bank for the total outstanding balance, principal and interest, Borrower’s obligations under the Loan will be deemed fully satisfied and paid in full. If the SBA does not confirm forgiveness of the Loan, or only partly confirms forgiveness of the Loan, or Borrower fails to apply for loan forgiveness, Borrower will be obligated to repay to the Bank the total outstanding balance remaining due under the Loan, including principal and interest, and in such case, Bank will establish the terms for repayment of the Loan Balance in a separate documentation to be provided to Borrower, which letter will set forth the Loan Balance, the amount of each monthly payment, the interest rate (not in excess of a fixed rate of one per cent (1.00% per annum), the term of the Loan, and the maturity date of two (2) years from the funding date of the Loan. No principal or interest payments will be due prior to the end of the Deferment Period. Because we anticipate the note being forgiven within the next year it is classified as short term. On August 16, 2021 the loan was forgiven by the SBA. On March 30, 2021 the Company through its Service 800 Inc. subsidiary, received $150,000 in funding in conjunction with a promissory note under the SBA Loan Program. Borrower will be obligated to repay to the Bank the total outstanding balance remaining due under the Loan, including principal and interest. This loan is a 30-year term note, bearing 3.75% interest due March 30, 2051. Installment payments, including principal and interest, of $731 monthly, will begin twelve (12) months from the date of the promissory note. |
NOTE 6. COMMON STOCK AND PREFER
NOTE 6. COMMON STOCK AND PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 6. COMMON STOCK AND PREFERRED STOCK | |
COMMON STOCK AND PREFERRED STOCK | NOTE 6. COMMON STOCK AND PREFERRED STOCK On March 2, 2021, the Company filed with the Secretary of State of the State of Nevada a Certificate of Amendment effecting the amendment and restatement of its Articles of Incorporation (the “Amended and Restated Articles”). The Amended and Restated Articles reflected amendments that effected (i) the increase of the number of shares of common stock that the Company is authorized to issue to ten billion (10,000,000,000); (ii) the 1-for-1,000,000 reverse stock split of the shares of Series A Preferred Stock, with ratable adjustment to the conversion and voting terms; and (iii) the increase of the number of shares of preferred stock that the Company is authorized to issue to sixty million four hundred (60,000,400). On August 20, 2021, the Company filed with the Secretary of State of the State of Nevada a Certificate of Amendment effecting the amendment and restatement of its Articles of Incorporation (the “Amended and Restated Articles”). The Amended and Restated Articles reflected amendments that effected the increase of the number of shares of common stock that the Company is authorized to issue to thirty billion (30,000,000,000). Common Stock As of September 30, 2021, our authorized capital stock consisted of 30,000,000,000 shares of common stock, par value $0.001 per share. During the nine months ended, September 30, 2021, the Company issued 1,541,336,662 shares valued at $1,541,337 for the conversion of certain debt and accrued interest into shares of our stock and extinguishment of debt. Additionally, the Company has issued 2,540,000,000 shares valued at $2,540,000 for the conversion of Series C Preferred Stock, and issued 363,185,553 shares valued at $581,097 for settlement of a warrant dispute ( see note 7). Holders of common stock are entitled to one vote per share on all matters submitted to a vote of the stockholders, including the election of directors. Except as otherwise required by law, the holders of our common stock possess all voting power. Generally, all matters to be voted on by stockholders must be approved by a majority (or, in the case of election of directors, by a plurality) of the votes entitled to be cast by all shares of our common stock that are present in person or represented by proxy. A vote by the holders of a majority of our outstanding shares is required to effectuate certain fundamental corporate changes such as liquidation, merger or an amendment to our Articles of Incorporation. Our Articles of Incorporation do not provide for cumulative voting in the election of directors. Holders of our common stock have no pre-emptive rights, no conversion rights and there are no redemption provisions applicable to our common stock. Preferred Stock In March 2021, we approved authorization to issue up to 60,000,400 shares of preferred stock, which are designated Series A, B, C and undesignated Preferred Stock. As of November 14, 2021, we have 249.9999 shares of Series A Preferred Stock issued and outstanding. We have designated 250 shares of Series A Convertible Preferred Stock, par value of $0.001 per share (the “Series A Preferred Stock”). The Series A Preferred Stock will, with respect to each holder of the Series A Preferred Stock, be entitled to three million (3,000,000) votes for each share of Series A Preferred Stock standing in his, her or its name on the books of the corporation. Each share of Series A Preferred Stock is convertible, at the option of the holder, into one million shares of Common Stock. The Series A Preferred Stock is entitled, in the event of any voluntary liquidation, dissolution or winding up of the Corporation, to receive payment or distribution of a preferential amount before any payments or distributions are received by any class or series of common stock. Subject to the prior or equal rights of the holders of all classes of stock at the time outstanding having prior or equal rights as to dividends and ranking ahead of the Common Stock, the holders of the Series A Preferred Stock shall be entitled to therefore receive, when and as declared by the Board of Directors, out of any assets of the Corporation legally available, such dividends as may be declared from time to time by the Board of Directors. Following the cancellation of 100 shares of Pre-reverse stock split Series A Preferred Stock, such 100 shares of Preferred Stock were returned to treasury, increasing the number of shares of authorized undesignated preferred stock from 0 to 100. The Board designated 51 of such 100 shares as Series B Preferred. Each share of Series B Preferred carries approximately 1% of the voting power, but these shares do not have any economic rights. The Board issued on October 2, 2019, 20 shares of the Series B Preferred to Geordan Pursglove. An additional 13 shares of Series B Preferred was issued to Geordan Pursglove on August 4, 2020. During the first quarter, Mr. Pursglove was issued three (3) shares of Series B Preferred stock valued at $43,950. The value of the October 2, 2019 transaction is $293,000 based on an independent valuation of the transaction and the value of the August 4, 2020 transaction is $190,450. During the third quarter, Mr. Pursglove was issued nine (9) shares of Series B Preferred and Peter Stazzone was issued six (6) shares of Series B Preferred. The value of the August 18, 2021 transaction is $219,750. We have designated 51 shares of Series B Convertible Preferred Stock, par value of $0.001 per share (the “Series B Preferred Stock”). One (1) share of the Series B Preferred Stock shall have voting rights equal to (x) 0.019607 multiplied by divided by minus With respect to all matters upon which stockholders are entitled to vote or to which stockholders are entitled to give consent, the holders of the outstanding shares of Series B Preferred Stock shall vote together with the holders of Common Stock without regard to class, except as to those matters on which separate class voting is required by applicable law or the Corporation’s Articles of Incorporation or by-laws. Such concentrated control of the Company may adversely affect the price of our common stock. A stockholder that acquires common stock will not have an effective voice in the management of the Company. We have designated 50,000,000 shares of Series C Convertible Preferred Stock, par value of $0.001 per share (the “Series C Preferred Stock”). The Series C Preferred Stock will, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank: (a) pari passu with the Corporation’s Common Stock, $0.001 par value per share (“Common Stock”); (b) junior to all other series of Preferred Stock, as such may be designated as of the date of this Designation, or which may be designated by the Corporation after the date of this Designation (the “Other Preferred”), and (c) junior to all existing and future indebtedness of the Corporation. Holders of the Series C Preferred Stock shall vote on all matters requiring a vote of the shareholders of the Corporation, together with the holders of shares of Common Stock and other classes of Preferred Stock entitled to vote, as a single class. Subject to the applicable beneficial ownership limitation, each Holder shall be entitled to the whole number of votes equal to the number of shares of Common Stock into which such holder’s Preferred Shares would be convertible using the record date for determining the stockholders of the Corporation eligible to vote on such matters as the date as of which the number of Conversion Shares is calculated. Holders of the Series C Preferred Stock will also be entitled to vote as a separate class with respect to any matter as to which such voting rights are required by applicable law. During the first quarter of 2021, the Company issued 1,566,905 shares of Series C Preferred, valued at $3,837,647. This was part of a settlement the Company reached with Discover to redeem the secured redeemable convertible debenture dated August 7, 2018. The valuation was derived from a loss on extinguishment of debt of $3,435,695 that represents the fair value of debt forgiveness, less the issuance of 598,048,320 common stock shares valued at par of $0.001, plus cash proceeds to the Company of $1,000,000 from the SPA that the Company entered into. During the second quarter of 2021, 123,000 shares of Series C Convertible Preferred Stock were converted to 1,230,000,000 shares of common stock. On July 7, 2021, 16,000 shares of Series C Convertible Preferred Stock were converted to 160,000,000 shares of common stock. On July 22, 2021, 16,000 shares of Series C Convertible Preferred Stock were converted to 160,000,000 shares of common stock. On August 5, 2021, 16,000 shares of Series C Convertible Preferred Stock were converted to 160,000,000 shares of common stock. On August 20, 2021, 16,000 shares of Series C Convertible Preferred Stock were converted to 160,000,000 shares of common stock. On September 14, 2021, 16,000 shares of Series C Convertible Preferred Stock were converted to 160,000,000 shares of common stock. On September 22, 2021, 29,000 shares of Series C Convertible Preferred Stock were converted to 290,000,000 shares of common stock. On September 29, 2021, 22,000 shares of Series C Convertible Preferred Stock were converted to 220,000,000 shares of common stock. |
NOTE 7. COMMITMENTS AND CONTING
NOTE 7. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 7. COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 7. COMMITMENTS AND CONTINGENCIES Legal Matters A complaint against the Company, dated February 5, 2020, has been filed in Hennepin County, Minnesota, by Jean Mork Bredeson, the former President and former owner of Service 800, making certain claims related to the Company's acquisition of Service 800, seeking in excess of $1.6 million in damages. On March 16, 2020, the Company and Service 800 filed an answer, counterclaim and third-party claim against Ms. Bredeson and defendants Allen Bredeson and Jeff Schwedinger, former employees of Service 800. Answers and Affirmative and Additional Defenses to Third Party Claims were filed by Ms. Bredeson on April 7, 2020 and by Mr. Schwedinger on April 9, 2020 and, on April 24, 2020, Ms. Bredeson filed a Motion to Dismiss. The Court denied in full Ms. Bredeson’s motion to dismiss or for a more definite statement. Subsequently, using a wholly owned entity she controls, Ms. Bredeson filed another matter, captioned Green Valley Associates Inc. vs Service 800 Inc., 27-CV-20-13800. Although Ms. Bredeson is seeking to have the matters handled by separate judges, the Company is seeking consolidation of the two matters before Judge Klein, the judge who denied Ms. Bredeson's motion to dismiss. Ms. Bredeson also has since filed, and then withdrawn, other motions, without allowing them to reach Judge Klein. The discovery process remains ongoing, and we expect the matter will continue for another six months before substantive motions can be filed. An early attempt at mediation was unsuccessful, but another attempt at the end of discovery may be more fruitful. In the interim, the Company is continuing to vigorously defend itself against this lawsuit. The Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 5, states that a firm must distinguish between losses that are probable, reasonably probable or remote. If a contingent liability is deemed probable, it must be directly reported in the financial statements. In July 2010, the FASB issued ASC 450-20 that updated the Standard and uses “probable,” “reasonably possible,” and “remote” to determine the likelihood of the future event that will confirm a loss, an impairment of an asset, or the incurrence of a liability. Accrual of a loss contingency is required when (1) it is probable that a loss has been incurred at the date of the financial statements and (2) the amount can be reasonably estimated. No accrual has been made in the above matter as the determination is that a loss is not probable as of September 30, 2021 nor can a loss be reasonably estimated. A complaint against the Company, dated June 9, 2021, has been filed in Salt Lake County, Utah, by Iliad Research and Trading, L.P. (“Iliad”), a former noteholder, that claims a Notice of Exercise of Warrant was delivered and the Company failed to timely deliver the Warrant shares. The shares to be issued are based on a $32,500 warrant principal that is exercisable based on the lesser of $0.15, or the average of the three lowest closing bid prices in the prior 20 trading days multiplied by a 45% discount. Iliad is seeking in excess of $1.4 million in damages. The Company and Iliad reached a Settlement Agreement and on August 20, 2021 the Company issued 363,185,553 shares of Common Stock to Iliad. A complaint against the Company, dated July 29, 2021, has been filed in the United States District Court of Nevada, by Discover Growth Fund, LLC, (“Discover”), a current stockholder, for claims related to the issuance of shares of Series C Preferred Stock to Discover during the first quarter of 2021. On August 20, 2021, the Company and Discover reached a Settlement Agreement whereby the Company will issue 72,638 shares of Preferred Series C stock to Discover. This Settlement Agreement is conditioned upon obtaining a court order approving the settlement between the parties. The court has scheduled a hearing for the approval on November 19, 2021. Accrual of a loss contingency is required when (1) it is probable that a loss has been incurred at the date of the financial statements and (2) the amount can be reasonably estimated. An accrual of a loss contingency has been made in the above matter as the determination is that a loss is probable as of September 30, 2021 and the loss is reasonably estimated to be $871,656. In addition to the above, from time to time, we may be involved in litigation in the ordinary course of business. Other than as set forth above, we are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. Other than as set forth above, to our knowledge, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of our executive officers or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or any of our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect. Operating Lease We currently lease virtual office space at 3773 Howard Hughes Parkway, Suite: 500 Las Vegas, NV 89169. We pay an annual fee of $120 for this lease. There is also a location in Minnesota for Service 800, Inc. On February 20, 2020 the company moved Service 800, Inc. to 110 Cheshire Lane, Minnetonka Minnesota 55305. Service 800 leases 3,210 square feet of office space under an operating lease agreement with Carlson Center East LLC. The lease, which expires June 30, 2023, requires base monthly rents of $4,160, plus operating expenses. The public entity guidance in ASU 2016-02, Leases (Topic 842) requires lessees to recognize substantially all leases on their balance sheets as lease liabilities with a corresponding right-of-use asset. Our accounting policy is to keep leases with an initial term of 12 months or less off of the balance sheet. The Company leases office space under an operating lease. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases may include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease. There are no options to extend or terminate the leases. The Company has no other leases yet to commence. |
NOTE 8. RELATED PARTIES
NOTE 8. RELATED PARTIES | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 8. RELATED PARTIES | |
RELATED PARTIES | NOTE 8. RELATED PARTIES During the first quarter, Mr. Pursglove received three (3) shares of Series B Preferred stock valued at $43,950. During the third quarter, Mr. Pursglove was issued an additional nine (9) shares of Series B Preferred and then Chief Financial Officer, Peter Stazzone, was issued six (6) shares of Series B Preferred. The value of the August 18, 2021 transaction is $219,750. The fair value of these shares was estimated based on a third-party valuation report and were issued to maintain voting control. On May 8, 2019, the Company issued a short-term convertible note payable for $54,000 to a member of the Board of Directors. The note had a sixty-day term which was due on July 8, 2019 and bears interest at a rate of 15% per annum. The principal amount due of $54,000 was paid on May 26, 2021. On July 19, 2021, the Company issued a convertible promissory note (the “Note”) in favor of Geordan G. Pursglove, the Company’s Chairman and Chief Executive Officer, in the principal amount of $1,500,000, in satisfaction of Mr. Pursglove’s accrued salary owing of $1,239,800 and $260,200 for loss on settlement. The Note accrues interest at 2% per annum, with the principal and interest payments due in twelve equal monthly installments. At the holder’s election, the Note is convertible into shares of the Company’s common stock, at a price per share equal to 100% of the average closing price of the Company's common stock for the five trading days immediately preceding the date of such conversion (the “Conversion Price”). The cash maturity date is July 19, 2022. |
NOTE 9. NET INCOME (LOSS) PER S
NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK | |
NET INCOME (LOSS) PER SHARE OF COMMON STOCK | NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK The Company follows ASC 260-10, which requires presentation of basic and diluted Earnings per Share (“EPS”) on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated financial statements, basic net income (loss) per share of common stock is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the year. Basic net income (loss) per common share is based upon the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Convertible debt that is convertible into 1,692,290,991 and 2,361,446,290 shares of the Company’s common stock are not included in the computation, along with 249,999,900 and 249,999,900 of the Company’s Preferred Series A stock after conversion, as well as 13,129,050,000 and zero shares of the Company’s Preferred Series C stock after conversion for the periods ended September 30, 2021 and December 31, 2020, respectively. Additionally, there are 16,666,667 and 16,666,667 warrants that are exercisable into shares of stock as of September 30, 2021 and December 31, 2020, respectively. As warrants are exercisable above the current market rate, they would be excluded from any dilutive share calculations. The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the three and nine - month periods ended September 30, 2021 and 2020: Nine-month period ended September 30, Three-month period ended September 30, 2021 2020 2021 2020 Loss from continuing operations $ (8,791,919 ) $ (10,668,157 ) $ (1,454,674 ) $ (7,729,449 ) Income from discontinued operations - 350,700 - - Consolidated net loss $ (8,791,919 ) (10,317,457 ) $ (1,454,674 ) $ (7,729,449 ) Weighted average shares used for diluted earnings per share 3,710,228,168 2,129,022,445 6,844,198,467 2,927,661,679 Incremental Diluted Shares - * - * - * - * Weighted Average shares used for diluted earnings per share 3,710,228,168 2,129,022,445 6,844,198,467 2,927,661,679 Net income (loss) per share: Basic and Diluted: continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) Basic and Diluted: discontinued operations $ - $ 0.00 $ - $ - Total Basic and Diluted loss per share $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) * The shares associated with convertible debt, preferred stock, stock options and stock warrants are not included because the inclusion would be anti-dilutive (i.e., reduce the net loss per common share). |
NOTE 10. SUBSEQUENT EVENTS
NOTE 10. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 10. SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS On October 5, 2021, 22,000 shares of Series C Convertible Preferred Stock were converted to 220,000,000 shares of common stock. On October 8, 2021, 22,000 shares of Series C Convertible Preferred Stock were converted to 220,000,000 shares of common stock. On October 13, 2021, 23,000 shares of Series C Convertible Preferred Stock were converted to 230,000,000 shares of common stock. On October 15, 2021, 24,000 shares of Series C Convertible Preferred Stock were converted to 240,000,000 shares of common stock. On October 18, 2021, 46,000 shares of Series C Convertible Preferred Stock were converted to 460,000,000 shares of common stock. On October 19, 2021, 48,400 shares of Series C Convertible Preferred Stock were converted to 484,000,000 shares of common stock. On October 20, 2021, 50,990 shares of Series C Convertible Preferred Stock were converted to 509,900,000 shares of common stock. On October 29, 2021, 53,670 shares of Series C Convertible Preferred Stock were converted to 536,700,000 shares of common stock. On November 11, 2021, 45,969 shares of Series C Convertible Preferred Stock were converted to 459,690,000 shares of common stock. A complaint against the Company, dated July 29, 2021, has been filed in the United States District Court of Nevada, by Discover Growth Fund, LLC. (“Discover”), a current stockholder for claims related to the issuance of shares of Series C Preferred Stock to Discover during the first quarter of 2021. On August 20, 2021, the Company and Discover reached a Settlement Agreement whereby the Company will issue 72,638 shares of Preferred Series C stock to Discover. This Settlement Agreement is conditioned upon obtaining a court order approving the settlement between the parties. The court has scheduled a hearing for the approval on November 19, 2021. On October 25, 2021, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with Discover Growth Fund, LLC. (“Discover”), a current stockholder, for cash proceeds of $1,000,000 for the purchase of 10,000 shares of Series C Convertible Preferred Stock that are convertible into 100,000,000 shares of the Company’s common stock at the fixed conversion price of $0.01 per share. |
NOTE 2. SELECTED ACCOUNTING P_2
NOTE 2. SELECTED ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Interim Financial Statements | These unaudited condensed consolidated financial statements as of and for the three (3) and nine (9) months ended September 30, 2021 and 2020, respectively, reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2020 and 2019, respectively, which are included in the Company’s December 31, 2020 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on April 15, 2021. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The results of operations for the three (3) and nine (9) months ended September 30, 2021 are not necessarily indicative of results for the entire year ending December 31, 2021. |
Use of Estimates | The preparation of consolidated financial statements and accompanying notes in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are used in the determination of depreciation and amortization and the valuation for non-cash issuances of equity instruments, income taxes, and contingencies, among others. Actual results could differ materially from these estimates. |
Cash and Cash Equivalents | The Company classifies as cash and cash equivalents amounts on deposit in banks and cash temporarily in various instruments with original maturities of nine months or less at the time of purchase. The Company’s cash management system is currently integrated within several banking institutions. |
Fair Value of Financial Instruments | The carrying value of the current assets and liabilities approximate fair value due to their relatively short maturities. |
Fair Value Measurements | Statement of financial accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value. The Company applies the fair value hierarchy as established by GAAP. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure the fair value as follows. · Level 1 · Level 2 · Level 3 September 30, 2021 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 424,048 $ 424,048 Total $ - $ - $ 424,048 $ 424,048 December 31, 2020 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 1,005,617 $ 1,005,617 Total $ - $ - $ 1,005,617 $ 1,005,617 Derivative liability as of December 31, 2020 $ 1,005,617 Change in derivative liability during the period (507,678 ) Reclassed to additional paid in capital for notes converted into shares of common stock (2,958,547 ) Loss on derivative liability on conversion 2,944,750 Reclass to accrued loss contingency (60,094 ) Balance at September 30, 2021 $ 424,048 Management considers all of its derivative liabilities to be Level 3 liabilities. |
Revenue Recognition | The Company recognizes revenue in accordance with FASB ASC Subtopic 606-10, Revenue Recognition. We recognize revenue as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenue, we apply the following five step approach: (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 the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We account for a contract based on the terms and conditions the parties agree to, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. The majority of the Company’s revenue is generated by the completion of a survey. Revenue is recognized and customers are billed at the point in time a survey occurs or when a related service is complete. The Company may require a deposit from new customers for set up costs or as down payments. These amounts are not significant to the financial statements. |
Valuation of Derivative Instruments | ASC 815 “Derivatives and Hedging” requires that embedded derivative instruments be bifurcated and assessed, along with free-standing derivative instruments such as warrants, on their issuance date and measured at their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option pricing formula. Upon conversion of a note where the embedded conversion option has been bifurcated and accounted for as a derivative liability, the Company records the shares at fair value, relieves all related notes, derivatives and debt discounts, and recognizes a net gain or loss on debt extinguishment. September 30, 2021 Derivative Liability Expected term 1 year Exercise price $ 0.00028 Expected volatility 198 % Expected dividends None Risk-free rate 0.09 % |
Reclassifications | We may make certain reclassifications to prior period amounts to conform with the current year’s presentation. These reclassifications did not have a material effect on our condensed consolidated statement of financial position, results of operations or cash flows. |
Recent Accounting Pronouncements | The Company reviews all of the Financial Accounting Standard Board’s updates periodically to ensure the Company’s compliance of its accounting policies and disclosure requirements to the Codification Topics. The FASB has issued ASU No. 2019–12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740. The guidance also improves consistent application by clarifying and amending existing guidance from ASC 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein and is to be applied on a retrospective, modified retrospective or prospective approach, depending on the specific amendment. Early adoption is permitted. The adoption of the new guidance did not change anything in the consolidated financial statements and therefore had no material impact. In August 2020, the Financial Accounting Standards Board (“FASB”) issued a new standard (ASU 2020-06) to reduce the complexity of accounting for convertible debt and other equity-linked instruments. The ASU simplifies accounting for convertible instruments by removing major separation models required under current Generally Accepted Accounting Principles (GAAP). Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas. As a result, the new standard may affect net income and EPS, and therefore performance measures, and increase debt levels which may impact debt covenant compliance. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption will be permitted. The Company will continue to monitor these emerging issues to assess any potential future impact on its financial statements. The Company has taken the position that any future standards will not be disclosed to the extent they are not material to our operations. |
NOTE 2. SELECTED ACCOUNTING P_3
NOTE 2. SELECTED ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Schedule of fair value, assets and liabilities | September 30, 2021 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 424,048 $ 424,048 Total $ - $ - $ 424,048 $ 424,048 December 31, 2020 Fair Value Measurements Level 1 Level 2 Level 3 Total Fair Value Liabilities Derivative Liabilities $ - $ - $ 1,005,617 $ 1,005,617 Total $ - $ - $ 1,005,617 $ 1,005,617 |
Schedule of Derivative Liabilities at Fair Value | Derivative liability as of December 31, 2020 $ 1,005,617 Change in derivative liability during the period (507,678 ) Reclassed to additional paid in capital for notes converted into shares of common stock (2,958,547 ) Loss on derivative liability on conversion 2,944,750 Reclass to accrued loss contingency (60,094 ) Balance at September 30, 2021 $ 424,048 |
Schedule of Assumptions Used | September 30, 2021 Derivative Liability Expected term 1 year Exercise price $ 0.00028 Expected volatility 198 % Expected dividends None Risk-free rate 0.09 % |
NOTE 4. DISCONTINUED OPERATIO_2
NOTE 4. DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 4. DISCONTINUED OPERATIONS | |
Schedule of Consolidated Statements of Operations | 2020 Total net sales $ 219,867 Cost of sales 147,829 Operating, selling, general and administrative expenses 91,133 Amortization of software 134,686 Income (loss) from discontinued operations (153,781 ) Gain on sale of discontinued operations 504,481 Income tax provision - Discontinued operations, net of tax 350,700 |
NOTE 5. SHORT- AND LONG-TERM _2
NOTE 5. SHORT- AND LONG-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 5. SHORT- AND LONG-TERM BORROWINGS | |
Schedule of short-term and long-term borrowings | Short-term and Long-term borrowings, consist of the following: September 30, December 31, Short term debt; 2021 2020 Convertible Promissory Notes, bearing an annual interest rate of 12% secured, due 08/27/2019 $ 112,259 $ 97,259 Short-Term Note – Jean Mork Bredeson cash deficit holdback, 15%, past due 210,000 210,000 Short-Term Note – Jean Mork Bredeson purchase allocation, 15%, past due 1,409,169 1,409,169 Funding from the Payroll Protection Program, annual interest of 1%, due 04/24/2022 - 500,000 Convertible Promissory Notes, bearing an annual interest rate of 8% secured, due 08/07/2020 - 713,555 Total short-term debt $ 1,731,428 $ 2,929,983 Long term debt; Convertible Promissory Notes, bearing an annual interest rate of 5.0%, due 12/31/22 312,685 350,000 Funding from the SBA Program, annual interest of 3.75%, due 03/30/2051 150,000 - Promissory Note – Jean Mork Bredeson, interest rate 5.5%, due 2/28/2022 2,100,000 2,100,000 Senior Secured Redeemable Debenture, bearing an annual interest rate of 16%, due 12/31/2021, long term 826,547 826,547 Total short-term and long-term borrowings, before debt discount 5,120,660 6,206,530 Less debt discount (44,281 ) (123,967 ) Total short-term and long-term borrowings, net $ 5,076,379 $ 6,082,563 Short-term and Long-term borrowings, consist of the following: Short-term borrowings – net of discount $ 1,731,428 $ 2,929,983 Long-term borrowings – net of discount 3,344,951 3,152,580 Total Short-Term and long term borrowings – net of discount $ 5,076,379 $ 6,082,563 |
NOTE 9. NET INCOME (LOSS) PER_2
NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK | |
Schedule of Earnings Per Share, Basic and Diluted | Nine-month period ended September 30, Three-month period ended September 30, 2021 2020 2021 2020 Loss from continuing operations $ (8,791,919 ) $ (10,668,157 ) $ (1,454,674 ) $ (7,729,449 ) Income from discontinued operations - 350,700 - - Consolidated net loss $ (8,791,919 ) (10,317,457 ) $ (1,454,674 ) $ (7,729,449 ) Weighted average shares used for diluted earnings per share 3,710,228,168 2,129,022,445 6,844,198,467 2,927,661,679 Incremental Diluted Shares - * - * - * - * Weighted Average shares used for diluted earnings per share 3,710,228,168 2,129,022,445 6,844,198,467 2,927,661,679 Net income (loss) per share: Basic and Diluted: continuing operations $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) Basic and Diluted: discontinued operations $ - $ 0.00 $ - $ - Total Basic and Diluted loss per share $ (0.00 ) $ (0.01 ) $ (0.00 ) $ (0.00 ) |
SELECTED ACCOUNTING POLICIES (D
SELECTED ACCOUNTING POLICIES (Details) - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities | |||
Derivative Liabilities | $ 424,048 | $ 1,005,617 | |
Total | 424,048 | $ 226,552 | 1,005,617 |
Fair Value, Inputs, Level 1 [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities | |||
Derivative Liabilities | 424,048 | 1,005,617 | |
Total | $ 424,048 | $ 1,005,617 |
SELECTED ACCOUNTING POLICIES _2
SELECTED ACCOUNTING POLICIES (Details 1) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | ||
Derivative liabilities at beginning | $ 1,005,617 | |
Change in derivative liability during the period | (507,678) | |
Reclassed to additional paid in capital for notes converted into shares of common stock | (2,958,547) | |
Loss on derivative liability on conversion | 2,944,750 | $ 2,238,451 |
Reclass to accrued loss contingency | (60,094) | |
Derivative liabilities at end | $ 424,048 |
SELECTED ACCOUNTING POLICIES _3
SELECTED ACCOUNTING POLICIES (Details 2) | 9 Months Ended |
Sep. 30, 2021$ / shares | |
NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Expected term | 1 year |
Exercise price | $ 0.00028 |
Expected volatility | 198 |
Expected dividends | 0.00% |
Risk-free rate | 0.09% |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cost of sales | $ 287,439 | $ 326,452 | $ 1,008,503 | $ 996,889 |
Operating, selling, general and administrative expenses | 158,057 | 234,742 | 542,120 | 886,894 |
Income tax provision | 0 | 0 | 0 | 0 |
Discontinued operations, net of tax | $ 0 | $ 0 | 0 | $ 350,700 |
PathUX | ||||
Total net sales | 219,867 | |||
Cost of sales | 147,829 | |||
Operating, selling, general and administrative expenses | 91,133 | |||
Amortization of software | 134,686 | |||
Income (loss) from discontinued operations | (153,781) | |||
Gain on sale of discontinued operations | 504,481 | |||
Income tax provision | 0 | |||
Discontinued operations, net of tax | $ 350,700 |
SHORT- AND LONG-TERM BORROWINGS
SHORT- AND LONG-TERM BORROWINGS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Short term debt | $ 1,731,428 | $ 2,929,983 |
Short-term borrowings - net of discount | 1,731,428 | 2,929,983 |
Long-term borrowings - net of discount | 3,344,951 | 3,152,580 |
Total short-term and long term borrowings, before debt discount | 5,120,660 | 6,206,530 |
Less debt discount | (44,281) | (123,967) |
Total short-term and long-term borrowings, net | 5,076,379 | 6,082,563 |
Total Debt net of Discounts | 5,076,379 | 6,082,563 |
Related Party | Promissory Note | ||
Long term debt | 2,100,000 | 2,100,000 |
Related Party | SBA Program | ||
Long term debt | 150,000 | 0 |
Convertible Promissory Notes Two | ||
Short term debt | 0 | 713,555 |
Short term note | Related Party | ||
Short term debt | 210,000 | 210,000 |
Short term note Two | Related Party | ||
Short term debt | 1,409,169 | 1,409,169 |
Payroll Protection Program | ||
Short term debt | 0 | 500,000 |
Senior Secured Redeemable Debenture | ||
Short term debt | 826,547 | 826,547 |
Convertible Promissory Notes | ||
Short term debt | 112,259 | 97,259 |
Convertible Promissory Notes | Related Party | ||
Long term debt | $ 312,685 | $ 350,000 |
SHORT- AND LONG-TERM BORROWIN_2
SHORT- AND LONG-TERM BORROWINGS (Details Narrative) - USD ($) | May 08, 2019 | Oct. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 30, 2019 |
Debt instrument interest rate | 15.00% | |||||||
Proceeds from convertible promissory note | $ 775,000 | $ 527,255 | ||||||
Common stock shares issued | 7,854,877,415 | 3,410,355,200 | ||||||
Jean Mork Bredeson | ||||||||
Debt instrument interest rate | 15.00% | 10.00% | ||||||
Retained cash and accounts receivables | $ 1,409,169 | $ 1,409,169 | ||||||
Withheld amount | $ 2,100,000 | |||||||
TCA Special Situations Credit Strategies ICAV | ||||||||
Issuance of senior secured redeemable convertible debenture | $ 900,000 | |||||||
Debt instrument interest rate | 16.00% | |||||||
Debt instrument maturity date | December 31, 2021 | |||||||
Repayment of debt | 73,453 | |||||||
TCA Beyond Commerce | ||||||||
Acquired membership interest | 100.00% | |||||||
Total membership purchase price | $ 525,000 | |||||||
Purchase price paid in cash | 175,000 | |||||||
Purchase price paid in convertible promissory note | 350,000 | |||||||
Payments of principal and accrued interest | 46,065 | |||||||
Principal outstanding balance | $ 312,684 | |||||||
Purchase price payment description | The cash maturity date is December 31, 2022. $175,000 is to be paid in cash, with the remaining $175,000 to be repaid through conversion, unless a larger conversion is requested by the noteholder | |||||||
February 28, 2019 Member | Jean Mork Bredeson | ||||||||
Issuance of a promissory note | $ 2,100,000 | |||||||
Debt instrument interest rate | 5.50% | |||||||
April 24, 2020 | Payroll Protection Program | ||||||||
Proceeds from convertible promissory note | $ 500,000 | |||||||
February 8, 2021 | Payroll Protection Program | ||||||||
Proceeds from convertible promissory note | $ 625,000 | |||||||
March 30, 2021 | SBA Loan Program | ||||||||
Debt instrument interest rate | 3.75% | |||||||
Debt instrument maturity date | March 30, 2051 | |||||||
Proceeds from convertible promissory note | $ 150,000 | |||||||
Installment payments description | Installment payments, including principal and interest, of $731 monthly, will begin twelve (12) months from the date of the promissory note | |||||||
March 19, 2021 [Member] | Investor [Member] | ||||||||
Preferred stock shares issued | 1,556,905 | |||||||
Loss on extinguishment of debt | $ 3,435,695 | |||||||
Common stock shares issued | 598,048,320 | |||||||
Common stock shares valued at par | $ 0.001 | |||||||
Discover Growth Fund, LLC [Member] | ||||||||
Issuance of senior secured redeemable convertible debenture | $ 2,000,000 | |||||||
Debt instrument converted amount | $ 754,315 | $ 1,249,522 | ||||||
Discover Growth Fund, LLC [Member] | August 7, 2018 [Member] | ||||||||
Issuance of senior secured redeemable convertible debenture | $ 2,717,391 | |||||||
Original issue discount | 217,391 | |||||||
Proceeds from Issuance of senior secured redeemable convertible debenture | 500,000 | |||||||
Issuance of a promissory note | $ 2,000,000 | |||||||
Auctus Fund LLC [Member] | November 27, 2018 [Member] | ||||||||
Debt instrument interest rate | 12.00% | |||||||
Debt instrument maturity date | August 27, 2019 | |||||||
Proceeds from convertible promissory note | $ 250,000 | |||||||
Common stock shares issued | 1,092,829,802 | |||||||
Revised interest rate | 24.00% | |||||||
Additional proceeds from convertible promissory note | $ 15,000 | |||||||
Convertible promissory note outstanding balance | $ 112,259 |
COMMON STOCK AND PREFERRED STOC
COMMON STOCK AND PREFERRED STOCK (Details Narrative) - USD ($) | Sep. 14, 2021 | Aug. 05, 2021 | Jul. 07, 2021 | Sep. 29, 2021 | Sep. 22, 2021 | Aug. 20, 2021 | Jul. 22, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Nov. 14, 2021 | Aug. 18, 2021 | Dec. 31, 2020 | Aug. 04, 2020 | Mar. 31, 2020 | Oct. 02, 2019 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||||
Common Stock, authorized | 30,000,000,000 | 30,000,000,000 | ||||||||||||||
Common stock issued for accounts payable conversion, Shares | Following the cancellation of 100 shares of Pre-reverse stock split Series A Preferred Stock, such 100 shares of Preferred Stock were returned to treasury, increasing the number of shares of authorized undesignated preferred stock from 0 to 100. The Board designated 51 of such 100 shares as Series B Preferred. Each share of Series B Preferred carries approximately 1% of the voting power, but these shares do not have any economic rights | |||||||||||||||
Stock issued for debt conversion, Amount | $ 1,541,337 | |||||||||||||||
Stock issued for debt conversion, Shares | 1,541,336,662 | |||||||||||||||
Common stock shares issued upon conversion of Series C Preferred Stock | 2,540,000 | |||||||||||||||
Common stock shares issued upon conversion of Series C Preferred Stock, value | $ 2,540,000,000 | |||||||||||||||
Common stock shares issued for warrant dispute, shares | 363,185,553 | |||||||||||||||
Common stock shares issued for warrant dispute, value | $ 581,097 | |||||||||||||||
Common stock shares issued | 7,854,877,415 | 3,410,355,200 | ||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||
Preferred stock, shares issued | 250 | 250 | 250 | |||||||||||||
Preferred stock, shares authorized | 250 | 250 | ||||||||||||||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 | ||||||||||||||
Preferred Stock outstanding | 250 | 250 | 250 | |||||||||||||
Series B Preferred Stock [Member] | ||||||||||||||||
Preferred stock, shares issued | 51 | 33 | 3 | 20 | ||||||||||||
Preferred stock, shares authorized | 51 | 51 | ||||||||||||||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 | ||||||||||||||
Preferred Stock outstanding | 51 | 33 | ||||||||||||||
Voting percentage | 1.00% | |||||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||||
Common stock shares issued upon conversion of Series C Preferred Stock | 160,000,000 | 160,000,000 | 160,000,000 | 220,000,000 | 290,000,000 | 160,000,000 | 160,000,000 | 123,000 | ||||||||
Common stock shares issued upon conversion of Series C Preferred Stock, value | $ 1,230,000,000 | |||||||||||||||
Preferred stock, shares issued | 1,566,905 | 1,312,905 | 0 | |||||||||||||
Loss on extinguishment of debt | $ 3,837,647 | |||||||||||||||
Preferred stock, shares issued value | $ 3,837,647 | |||||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ||||||||||||||
Preferred stock, par or stated value | $ 0.001 | $ 0.001 | ||||||||||||||
Common stock shares valued at par | $ 0.001 | |||||||||||||||
Common stock shares issued | 598,048,320 | |||||||||||||||
Proceeds from issuance of preferred stock | $ 1,000,000 | |||||||||||||||
Converted preferred stock units | 16,000 | 16,000 | 16,000 | 22,000 | 29,000 | 16,000 | 16,000 | |||||||||
Preferred Stock outstanding | 1,312,905 | 0 | ||||||||||||||
August 20, 2021 [Member] | ||||||||||||||||
Common Stock, authorized | 30,000,000,000 | |||||||||||||||
March 2, 2021 [Member] | ||||||||||||||||
Common Stock, authorized | 10,000,000,000 | |||||||||||||||
Preferred stock, shares authorized | 60,000,400 | |||||||||||||||
Reverse stock split | 1-for-1,000,000 | |||||||||||||||
Investor [Member] | March 19, 2021 [Member] | ||||||||||||||||
Preferred stock, shares issued | 1,556,905 | |||||||||||||||
Loss on extinguishment of debt | $ 3,435,695 | |||||||||||||||
Common stock shares valued at par | $ 0.001 | |||||||||||||||
Common stock shares issued | 598,048,320 | |||||||||||||||
Peter Stazzone | ||||||||||||||||
Preferred stock, shares issued | 6 | |||||||||||||||
Value of transaction | $ 219,750 | |||||||||||||||
Geordan Pursglove | ||||||||||||||||
Preferred stock, shares issued | 9 | 13 | 3 | 9 | ||||||||||||
Value of transaction | $ 190,450 | $ 293,000 | ||||||||||||||
Preferred stock, shares issued value | $ 43,950 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Jun. 09, 2021 | Sep. 30, 2021 | Aug. 20, 2021 | Jul. 29, 2021 | Dec. 31, 2020 |
Annual lease fee | $ 120 | ||||
Common stock shares issued | 7,854,877,415 | 3,410,355,200 | |||
Service 800 | |||||
Monthly rent | $ 4,160 | ||||
Lease Expiration Date | Jun. 30, 2023 | ||||
Iliad | |||||
Common stock shares issued | 363,185,553 | ||||
Notice of Exercise of Warrant description | The shares to be issued are based on a $32,500 warrant principal that is exercisable based on the lesser of $0.15, or the average of the three lowest closing bid prices in the prior 20 trading days multiplied by a 45% discount. Iliad is seeking in excess of $1.4 million in damages | ||||
Discover | |||||
Preferred stock shares issuable | 72,638 | ||||
Estimated loss | $ 871,656 |
RELATED PARTIES (Details Narrat
RELATED PARTIES (Details Narrative) - USD ($) | May 08, 2019 | Jul. 19, 2021 | Sep. 30, 2021 | Aug. 18, 2021 | Aug. 04, 2020 | Mar. 31, 2020 | Oct. 02, 2019 |
Due date | Jul. 8, 2019 | ||||||
Interest rate | 15.00% | ||||||
Promissory Note | $ 54,000 | ||||||
Due date description | sixty-day term | ||||||
Peter Stazzone | |||||||
Preferred stock, shares issued | 6 | ||||||
Value of transaction | $ 219,750 | ||||||
Geordan Pursglove | |||||||
Interest rate | 2.00% | ||||||
Preferred stock, shares issued | 9 | 13 | 3 | 9 | |||
Preferred stock, shares issued value | $ 43,950 | ||||||
Issuance of a promissory note | $ 1,500,000 | ||||||
Accrued salary | 1,239,800 | ||||||
Loss on settlement | $ 260,200 | ||||||
Value of transaction | $ 190,450 | $ 293,000 |
NET INCOME (LOSS) PER SHARE OF
NET INCOME (LOSS) PER SHARE OF COMMON STOCK (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK | ||||
Loss from continuing operations | $ (1,454,674) | $ (7,729,449) | $ (8,791,919) | $ (10,668,157) |
Income from discontinued operation, net of tax | 0 | 0 | 0 | 350,700 |
Consolidated net loss | $ (1,459,261) | $ (7,729,449) | $ (8,805,623) | $ (10,317,457) |
Weighted average shares used for diluted earnings per share | 6,844,198,467 | 2,927,661,679 | 3,710,228,168 | 2,129,022,445 |
Weighted Average shares used for diluted earnings per share | 6,844,198,467 | 2,927,661,679 | 3,710,228,168 | 2,129,022,445 |
Net income (loss) per share: | ||||
Basic and Diluted continuing operations | $ 0 | $ 0 | $ 0 | $ (0.01) |
Basic and Diluted: discontinued operations | 0 | 0 | 0 | 0 |
Total Basic and Diluted Loss Per Share | $ 0 | $ 0 | $ 0 | $ (0.01) |
NET INCOME (LOSS) PER SHARE O_2
NET INCOME (LOSS) PER SHARE OF COMMON STOCK (Details Narrative) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Warrant | ||
Antidulited securites excluded from computation of the basic and diluted earnings per share | 16,666,667 | 16,666,667 |
Series A Preferred Stock [Member] | ||
Antidulited securites excluded from computation of the basic and diluted earnings per share | 249,999,900 | 249,999,900 |
Series C Preferred Stock [Member] | ||
Antidulited securites excluded from computation of the basic and diluted earnings per share | 13,129,050,000 | 0 |
Convertible Debt [Member] | ||
Antidulited securites excluded from computation of the basic and diluted earnings per share | 1,692,290,991 | 2,361,446,290 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Nov. 11, 2021 | Oct. 15, 2021 | Oct. 13, 2021 | Oct. 08, 2021 | Oct. 05, 2021 | Oct. 29, 2021 | Oct. 25, 2021 | Oct. 20, 2021 | Oct. 19, 2021 | Oct. 18, 2021 | Sep. 30, 2021 | Jul. 29, 2021 |
Purchase of Series C Convertible Preferred Stock | $ 10,000 | |||||||||||
Common stock shares issued upon conversion of Series C Preferred Stock | 2,540,000 | |||||||||||
Discover | ||||||||||||
Preferred stock, shares issued | 72,638 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Converted preferred stock units | 45,969 | 24,000 | 23,000 | 22,000 | 22,000 | 53,670 | 50,990 | 48,400 | 46,000 | |||
Common stock shares issued upon conversion of Series C Preferred Stock | 459,690,000 | 240,000,000 | 230,000,000 | 220,000,000 | 220,000,000 | 536,700,000 | 100,000,000 | 509,900,000 | 484,000,000 | 460,000,000 | ||
Cash proceeds | $ 1,000,000 | |||||||||||
Fixed conversion price | $ 0.01 |