Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 10, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | TAUTACHROME INC. | |
Entity Central Index Key | 0001389067 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,373,136,999 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex-Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 3,984 | $ 6,243 |
Total current assets | 3,984 | 6,243 |
TOTAL ASSETS | 3,984 | 6,243 |
LIABILITIES | ||
Accounts payable and accrued expenses | 649,388 | 615,847 |
Accounts payable - related party | 114,148 | 114,052 |
Loans from related parties | 103,203 | 103,074 |
Convertible notes payable - related party | 88,152 | 81,340 |
Short-term convertible notes payable, net | 641,822 | 627,928 |
Convertible notes payable in default | 267,056 | 422,565 |
Short-term notes payable | 15,612 | 15,501 |
Derivative liability | 162,669 | 365,497 |
Court judgment liability | 250,000 | 250,000 |
Total current liabilities | 2,292,050 | 2,595,804 |
Long-term convertible notes payable, net | 70,882 | 25,000 |
Long-term convertible notes payable – related party, net | 32,825 | 32,825 |
Crypto-currency notes payable | 100,000 | 100,000 |
Total non-current liabilities | 203,707 | 157,825 |
TOTAL LIABILITIES | 2,495,757 | 2,753,629 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Series D Convertible Preferred, par value $0.0001. 13,795,104 shares authorized, 13,795,104 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 1,380 | 1,380 |
Common stock, $0.00001 par value. Six billion shares authorized. 2,871,747,062 and 1,932,483,910 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 28,717 | 19,325 |
Additional paid in capital | 5,221,825 | 4,692,609 |
Common stock payable | 1,919,927 | 1,919,927 |
Accumulated deficit | (9,753,959) | (9,476,829) |
Effect of foreign currency exchange | 90,337 | 96,202 |
TOTAL STOCKHOLDERS' EQUITY | (2,491,773) | (2,747,386) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,984 | $ 6,243 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
STOCKHOLDERS EQUITY (DEFICIT) | ||
Series D Convertible preferred stock par value | $ 0.0001 | $ 0.0001 |
Series D Convertible preferred stock shares authorized | 13,795,104 | 13,795,104 |
Series D Convertible preferred stock shares issued | 13,795,104 | 13,795,104 |
Series D Convertible preferred stock shares outstanding | 13,795,104 | 13,795,104 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 6,000,000,000 | 6,000,000,000 |
Common stock, shares issued | 2,871,747,062 | 1,932,483,910 |
Common stock, shares outstanding | 2,871,747,062 | 1,932,483,910 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING EXPENSES | ||
General and administrative | $ 130,220 | $ 307,425 |
Total operating expenses | 130,220 | 307,425 |
Operating loss | (130,220) | (307,425) |
OTHER INCOME / (EXPENSE) | ||
Gain on settlement of debt | 1,330 | |
Interest expense | (85,825) | (579,947) |
Change in value of derivatives | 58,360 | (702,785) |
Loss on conversion of debt | (120,775) | |
Total other | (146,910) | (1,282,732) |
Net loss | (277,130) | (1,590,157) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Effect of foreign currency exchange | (5,865) | 14,707 |
Net comprehensive income or (loss) | $ (282,995) | $ (1,575,450) |
Net (loss) or income per common share, basic and diluted | $ 0 | $ 0 |
Weighted average shares outstanding, basic and diluted | 2,300,781,103 | 1,696,249,730 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY / (DEFICIT) (Unaudited) - USD ($) | Common Stock | Preferred Stock Series D | Additional Paid-in Capital | Stock Payable | Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2017 | 1,685,941,636 | 13,795,104 | |||||
Beginning Balance, Amount at Dec. 31, 2017 | $ 16,860 | $ 1,380 | $ 3,787,675 | $ 23,186 | $ 15,540 | $ (5,293,041) | $ (1,448,400) |
Shares issued with convertible note payable, Shares | 15,000,000 | ||||||
Shares issued with convertible note payable, Amount | $ 150 | 127,350 | 127,500 | ||||
Preferred Series E shares accrued to ArKnet | 1,837,000 | 1,837,000 | |||||
Shares issued for conversion of debt, Shares | 221,542,274 | ||||||
Shares issued for conversion of debt, Amount | $ 2,215 | 373,414 | 375,629 | ||||
Shares issued to settle lawsuit, Shares | 10,000,000 | ||||||
Shares issued to settle lawsuit, Amount | $ 100 | 59,900 | 60,000 | ||||
Derivative associated with early debt retirement | 326,339 | 326,339 | |||||
Shares earned by consultants | 59,741 | 59,741 | |||||
Imputed interest | 17,931 | 17,931 | |||||
Effect of foreign currency exchange | 80,662 | 80,662 | |||||
Net loss | (4,183,788) | (4,183,788) | |||||
Ending Balance, Shares at Dec. 31, 2018 | 1,932,483,910 | 13,795,104 | |||||
Ending Balance, Amount at Dec. 31, 2018 | $ 19,325 | $ 1,380 | 4,692,609 | 1,919,927 | 96,202 | (9,476,829) | (2,747,386) |
Shares issued for conversion of debt, Shares | 935,640,097 | ||||||
Shares issued for conversion of debt, Amount | $ 9,356 | 345,841 | 355,197 | ||||
Derivative associated with early debt retirement | 175,780 | 175,780 | |||||
Imputed interest | 4,008 | 4,008 | |||||
Effect of foreign currency exchange | (5,865) | (5,865) | |||||
Shares issued to settle claim, Shares | 3,623,055 | ||||||
Shares issued to settle claim, Amount | $ 36 | 3,587 | 3,623 | ||||
Net loss | (277,130) | (277,130) | |||||
Ending Balance, Shares at Mar. 31, 2019 | 2,871,747,062 | 13,795,104 | |||||
Ending Balance, Amount at Mar. 31, 2019 | $ 28,717 | $ 1,380 | $ 5,221,825 | $ 1,919,927 | $ 90,337 | $ (9,753,959) | $ (2,491,773) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Loss | $ (277,130) | $ (1,590,157) |
Stock-based compensation | 21,420 | |
Loss on conversions | 120,775 | |
Change in fair value of derivative | (58,360) | 702,785 |
Gains on debt settlements | (1,330) | |
Amortization of discounts on notes payable | 48,934 | 534,430 |
Imputed interest | 4,008 | 4,750 |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued expenses | 54,422 | 25,384 |
Accounts payable - related party | ||
Net cash used in operating activities | (108,681) | (301,388) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from convertible notes payable | 105,475 | 593,000 |
Principal payments on notes payable | (97,150) | |
Proceeds from related-party loans | 18,000 | 1,830 |
Principal payments on related-party loans | (11,188) | |
Net cash provided by financing activities | 112,287 | 497,680 |
Effect of exchange rate changes on cash and cash equivalents | (5,865) | 14,707 |
Net increase/(decrease) in cash | (2,259) | 210,999 |
Cash and equivalents - beginning of period | 6,243 | 9,726 |
Cash and equivalents - end of period | 3,984 | 220,725 |
SUPPLEMENTARY INFORMATION | ||
Cash paid for interest | 2,720 | |
Cash paid for income taxes | ||
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS | ||
Discounts on convertible notes | 31,312 | 664,688 |
Conversion of debt to common stock | 234,422 | 11,155 |
Settlement of derivative liability | 175,780 | 93,280 |
Shares issued for debt settlement | $ 3,623 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 1 - Organization and Nature of Business | History Tautachrome, Inc. was formed in Delaware on June 5, 2006 as Caddystats, Inc. and hereinafter collectively referred to as “Tautachrome”, the “Company”, “we’ or “us”). The Company adopted the accounting acquirer’s year end, December 31. Our Business Tautachrome operates in the internet applications space, a large space we believe to be uniquely able to make possible fast growing and novel business. The iPhone, Google, Facebook, Amazon, Uber and numerous other examples are reminders of the ability of the internet applications space to surprise us with new business universes out of nowhere. A recent surprise was the arrival in the internet applications space of blockchain technology, which is empowering enterprises of all sizes to create ecosystems of trade based on self-introduced and globally useable cryptocurrencies. The arrival of blockchain technology has added a significant new and leading element to Tautachrome’s business plans and activities. The subsequent development of a new patent pending technology dubbed ArK technology that exploits augmented reality in a new solution to the purchasing interaction between global consumers and providers is a brand new surprise, and has been licensed by the Company for development. Tautachrome is currently pursuing three main avenues of business activity based on our patented activated imaging technology, our blockchain cryptocurrency products, and the ArK patent pending technology (together banded “ KlickZie 1. KlickZie ArK technology business 2. KlickZie’s blockchain cryptocurrency based ecosystem: 3. KlickZie Activated Digital Imagery business Since its public announcement on September 25, 2017 (via SEC form 8-K) that it would be using its Twitter site ( Tautachrome_Inc) (http://twitter.com/tautachrome_inc) to post important Company information, and finding this method of publicizing important Company information both fast and effective, the Company has continued to use this means of public communication almost exclusively, supplemented only occasionally with Current Reports via SEC form 8-Ks. Shareholders are advised to follow us on Twitter to be current on the Company’s FD disclosures. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 2 - Basis of Presentation and Summary of Significant Accounting Policies | Consolidated Financial Statements In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending March 31, 2019. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2018 (as amended), as reported in Form 10-K filed with the Securities and Exchange Commission. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. Principles of Consolidation Our consolidated financial statements include the accounts of Tautachrome, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation. Long-Lived Assets, Intangible Assets and Impairment In accordance with U.S. GAAP, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Net Loss Per Share Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the three months ended March 31, 2019 as the effect of our potential common stock equivalents would be anti-dilutive. Recent Accounting Pronouncements In February 2016, the FASB established Topic 842, Leases The new standard was effective for us on January 1, 2019 and we have adopted it. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements as the Company has no leases whose term is greater than one year. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation-Stock Compensation |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 3 - Going Concern | We have not begun our core operations in the technology industry and have not yet acquired the assets to enter this markets and we will require additional capital to do so. There is no guarantee that we will acquire the capital to procure the assets to enter this market or, upon doing so, that we will generate positive cash flows from operations. Substantial doubt exists as to Tautachrome’s ability to continue as a going concern. No adjustment has been made to these financial statements for the outcome of this uncertainty. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 4 - Related Party Transactions | For the three months ended March 31, 2019, we accrued $1,213 of interest to the 22nd Trust (the “Trust”), the trustee of whom is Sonny Nugent, the son of our major shareholder and former Chief Executive Officer, Micheal Nugent. The outstanding balances of unpaid principal and interest at March 31, 2019 and December 31, 2018 were $119,947 and $118,591, respectively. According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%. Convertible note payable, related party On May 5, 2013 (and on August 8, 2013 with an enlargement amendment) the Company entered into a no interest demand-loan agreement with our current Chairman, Jon N. Leonard under which the Company may borrow such money from Jon as Jon in his sole discretion is willing to loan. The terms of the note provide that at the Company’s option, the Company may make repayments in stock, at a fixed share price of $1.00 per share. Also, because this loan is a no-interest loan, an imputed interest expense of $1,520 was recorded as additional paid-in capital for the three months ended March 31, 2019. The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed. During the three months ended March 31, 2019, we repaid Dr. Leonard $11,188 and borrowed an additional $18,000. |
Capital
Capital | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 5 - Capital | During the year ended December 31, 2018 we issued 246,542,274 shares as follows: We settled our lawsuit with Richard Morgan in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation. We issued 15,000,000 shares as an equity incentive to a creditor. We valued the shares at their grant-date fair values and recorded a discount on that debt of $127,500. We issued 221,542,274 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $306,623 and $27,728 of principal and interest, respectively and recorded a loss on conversion of $41,278. As part of these conversions, we retired $326,339 of associated derivative liabilities which we included in Additional Paid in Capital. During the three months ended March 31, 2019, we issued 939,263,152 shares as follows: We issued 935,640,097 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $218,508 of principal, $11,914 of interest, and $4,000 of conversion fees and recorded a loss on conversion of $120,775. As part of these conversions, we retired $175,780 of associated derivative liabilities which we included in Additional Paid in Capital. We issued 3,623,055 to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair values, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement. Preferred Stock During the year ended December 31, 2018, we accrued $1,837,000 in costs related to the 40,000 Series E Preferred shares promised in our ArKnet contract (see Note 4) containing a par value of $0.0001. This series of preferred shares have the following rights, limitations, restrictions and privileges: They are not entitled to dividends, They are entitled to no liquidations rights, Each share has the voting rights of all other voting shares combined, multiplied by 0.00001, They have no conversion or redemption rights. These shares were issued subsequent to the March 31, 2019 balance sheet and are included in stock payable at that date. Imputed Interest Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increase Additional Paid in Capital. For the three months ended March 31, 2019, we imputed $4,008 of such interest. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 6 - Debt | Loans from related parties As is discussed in Note 4, at March 31, 2019 we owed $208,099 in related-party debts consisting of $98,203 and $21,744 in unpaid principal and interest, respectively, to the 22 nd Convertible notes payable During the year ended December 31, 2018, we issued eight new convertible promissory notes in the amount of $633,000, containing original issue discounts totaling $71,688, for net proceeds of $561,313). These convertible notes can convert to common stock at various different prices. We evaluated these convertible notes for beneficial conversion features and calculated a collective value of $209,040 which we are accounting for as debt discounts. The individual notes are discussed in Note 6 to the financial statements filed on Form 10-K for the year ended December 31, 2018 and are hereby incorporated by reference. During the three months ended March 31, 2019 we issued three convertible promissory notes in the aggregate amount of $105,475, receiving proceeds therefrom of the same amount. These convertible notes can convert to common stock at various prices. We evaluated these convertible notes for beneficial conversion features and calculated a collective value of $31,312 which we are accounting for as debt discounts. These three convertible notes are discussed below: On January 11, 2019, we issued a convertible note in the amount of $100,000 which accrues interest at 5% (10% for unpaid interest and principal after maturity) and matures on July 8, 2020. This note can convert to 83,333,333 shares. On January 23, 2019, we issued a convertible note in the amount of $1,475 which accrues interest at 5% (10% for unpaid interest and principal after maturity) and matures on July 23, 2020. This note can convert to 1,109,023 shares. On January 16, 2019, we issued a convertible note in the amount of $4,000 which accrues interest at 5% (10% for unpaid interest and principal after maturity) and matures on July 16, 2020. This note can convert to 3,007,519 shares. During the three months ended March 31, 2019, we issued 3,623,055 to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair values, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement. During the three months ended March 31, 2019, we amortized $48,934 of debt discounts to interest expense and accrued $29,224 of interest on existing notes. At March 31, 2019, $267,056 of our convertible notes payable were in default. Convertible notes payable (excluding related-party convertible notes which is discussed in Note 4) at March 31, 2019 and December 31, 2018 and their classification into long-term, short-term and in-default were as follows: 03/31/19 12/31/18 All convertible promissory notes Unpaid principal 1,007,889 1,121,243 Discounts (28,129 ) (45,750 ) Convertible notes payable, net $ 979,760 $ 1,075,493 Classified as short-term Unpaid principal balance 642,182 673,678 Discounts (360 ) (45,750 ) Convertible notes payable - short-term, net $ 641,822 $ 627,928 Classified as long-term Unpaid principal balance 98,651 25,000 Discounts (27,769 ) - Convertible notes payable - short-term, net $ 70,882 $ 25,000 Classified as in default Unpaid principal balance 267,056 422,565 Discounts - - Convertible notes payable - short-term, net $ 267,056 $ 422,565 Crypto-currency notes payable On August 7, 2018, we issued a Crypto Exchange Promissory Note (“the Crypto Note”) in exchange for $100,000 in cash. The Crypto Note accrues interest at 4% until maturity which is 18 months from issue and 10% after maturity. The holder can convert unpaid principal and accrued interest into KLK20 tokens at any time at the rate of $0.25 per token. The holder may, for up to nine months after issuance, participate in a price guarantee: if the Company offers the tokens at less than $0.25 per token at any point for up to nine months after issuance, then the holder has the option of participating in the offer at the lower price. Derivative liabilities The above-referenced convertible promissory notes issued during the three months ended March 31, 2019 were analyzed in accordance with EITF 07–05 and ASC 815. EITF 07–5, which is effective for fiscal years beginning after December 15, 2009, and interim periods within those fiscal years. The objective of EITF 07–5 is to provide guidance for determining whether an equity–linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception under Paragraph 11(a) of ASC 815 which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non–derivative instrument that falls within the scope of EITF 00–19 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non–derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. The EITF reached a consensus that would establish a two–step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument's contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument's settlement provisions. Derivative financial instruments should be recorded as liabilities in the consolidated balance sheet and measured at fair value. For purposes of this engagement and report, we utilized fair value as the basis for formulating our opinion which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59–60. The Company issued Subscription Notes from 2015 through March 31, 2019 in the United States and Australia which are convertible at discounted market rates and market prices based on the average of 5 trading day closing bids. The notes are convertible after 1 year from issuance; mature in 18 months from issuance; accrued at 5% interest; and a 10% default rate. These convertible notes have become tainted (“The Tainted Notes) as a result of the issuance of convertible promissory notes issued in the United States since there is a possibility (however remote) that the Company would not have enough shares in the Treasury to satisfy all possible conversions. The Convertible Note derivatives were valued as of issuance; conversion; redemption/settlement; and each quarterly period from March 31, 2018 through March 31, 2019. The following assumptions were used for the valuation of the derivative liability related to the Notes: The stock price of $0.0013 to $0.0005 in this period would fluctuate with the Company projected volatility. The notes convert with variable conversion prices based on the percentages of the low or average trades or bids over 20 to 25 trading days. The effective discounts rates estimated throughout the periods range from 35% to 42% with potentially an additional discount. The Holder would automatically convert the note before maturity if the registration was effective and the company was not in default. The projected annual volatility for each valuation period was based on the historic volatility of the company are 157.8 – 296.0% (annualized over the term remaining for each valuation). An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%. The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%. The Holder would automatically convert the note at the maximum of 2 times the conversion price or the stock price on the date of valuation. The Holder would automatically convert the note based on ownership or trading volume limitations. We recorded the initial derivative as both a derivative liability and a debt discount (or initial reduction in carrying value of the debt). We then amortized the debt discounts using the Effective Interest Method which recognizes the cost of borrowing at a constant interest rate throughout the contractual term of the obligation. The effective interest rates on the six instruments issued during the year ended December 31, 2018 range from 243% to 289%. At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At March 31, 2019, we determined the fair value of these derivatives were $162,668. Changes in outstanding derivative liabilities are as follows: Balance, December 31, 2018 $ 365,497 Changes due to new issuances 31,312 Changes due to extinguishments (175,780 ) Changes due to adjustment to fair value (58,360 ) Balance, March 31, 2019 $ 162,669 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 7 - Litigation | Morgan Lawsuit Background The May 21, 2015 merger of the Company with Click Evidence, Inc. (“Click”) resulted in the transfer of Click’s assets and interests from Click to the Company and in Click becoming an asset-less entity inside the Company and then being disposed of on November 25, 2015. In the November 25, 2015 conveyance of the Click to the new owner, its name was changed to BH Trucking, Inc. (“BH”). Filing and service A first lawsuit was filed in the Superior Court of the State of Arizona, Pima County, by a former consultant to Click, Richard Morgan (“Morgan”). This lawsuit was served on December 2, 2015, against Click/BH, with the Company also named in the lawsuit, but not served by it or effectively made aware of it until 2017. Allegation The lawsuit claimed that the consultant’s agreement with Click/BH permitted him to recover a finder’s fee for the cashless stock swap that achieved the merger on May 21, 2015. The new owner of Click/BH, the only party served, declined to defend the lawsuit allowing it to go to default. Default judgment On December 16, 2016, the Court issued a default judgment for the plaintiff and against the defendants in the amount of $2,377,915. The Company believes that having not been served or made aware of the lawsuit, it is not a target of the judgment. Second Lawsuit On January 23, 2017, the Company and its CEO were served in a second lawsuit by Morgan alleging that the Company’s intellectual property assets that were transferred to it by Click under the May 21, 2015 merger of the Company with Click, were fraudulently removed from Click/BH, and seeks to have them returned to Click/BH. Effect on the Financial Statements During the three months ended September 30, 2017 we included in liabilities the default amount of $2,377,915 plus $4,459 interest at 4.5% from December 16, 2016, the date of the judgment, to December 31, 2016. On August 29, 2017, the Court set aside the judgment in the First Lawsuit resulting in the removal of the liability of $2,377,915 and accrued interest of $4,459 at December 31, 2016, as well as the additional accrued interest recorded during 2017 of $44,294, for a total gain of $2,426,668. On August 14, 2018, we settled this lawsuit in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation. McRae Lawsuit On October 10, 2017, the Company received a letter from the lawyer of Eric L McRae (“McRae”) a person whose association with the Company was terminated by the Company on June 16, 2017. The letter demanded payment of 850 million unrestricted Tautachrome common shares to forestall his filing a laundry list of complaints in a variety of government agencies including with the US District Court in Kansas with complaints of contract breaches and fraud by silence, with the EEOC with complaints of termination by racial discrimination, with the OSHA with complains of termination for reasons of his being a whistleblower under Sarbanes-Oxley provisions, and with various regulatory agencies with accusations of an unspecified nature. On October 12, 2017, McRae filed a complaint, later amended twice, against the Company in the US District Court in Kansas. The amended complaint alleges 1) that the Company breached a written agreement in an alleged employment by failing to pay him 35 million shares of the Company’s common stock and terminating his association with the Company on June 16, 2017 without proper notice. The complaint goes on to allege 2) that the Company committed fraud by silence for failing to inform him of an intent to receive the benefit of his services while harboring an intent to not compensate him, 3) that the Company breached an unwritten agreement with him to provide him with 185 million shares of the Company’s common stock, and 4) that the Company breached a convertible promissory note by failing and refusing to repay him the principal and accrued interest thereunder. Complaint number 4 is now moot in the belief of the Company since after the lawsuit was filed the Company continued to repay McRae’s convertible promissory note on schedule with interest due until paid in full on October 1, 2018, thus extinguishing the note and making the matter moot. These matters remain before the Court. On December 12, 2017, McRae brought the Company before the Kansas Human Rights Commission and the U.S. Equal Employment Opportunity Commission (EEOC) alleging that on June 16, 2017 he was terminated from an alleged employment by the Company on the basis of race and for retaliation, and that the Company discriminated against him in the terms of this alleged employment because of race. The Company, knowing that all of McRae’s allegations before the EEOC are completely false, responded to the threatened complaint denying each of McRae’s allegations and providing its own presentation of the facts. The matter is presently stayed pending a claim for mediation by McRae who has so far failed to file a claim. Although the Company remains confident that should an investigation in this matter continue, it will fully prevail. We do not know when or if such an investigation will materialize. On December 8, 2017, McRae filed a complaint with the Occupational Safety and Health Administration (the “OSHA”), alleging that his “investigation and reporting” to the Company’s CEO was a contributing factor in the termination of his alleged employment by the Company in violation of the Sarbanes-Oxley Act whistleblower’s provisions. On January 2, 2018, the Company delivered its response to the complaint, denying each of McRae’s allegations and providing its own presentation of the facts. McRae dismissed the OSHA claim with prejudice, and the matter cannot be brought again. On October 17, 2018, we offered McRae 50 million shares in settlement of all outstanding legal actions against us. McRae declined the offer. However, we re-evaluated the liability on these lawsuits from $49,000 to $250,000 based on the closing price of our common stock on the date of the offer. We recognized a loss on litigation of $201,000 in so doing during 2018. The Company, believing that allegations made by McRae are largely fabricated and aimed at doing harm, has been vigorously defending itself and believes it will prevail in every instance. Despite this belief, to save legal expense the Company made a good faith settlement offer to McRae. The offer was rejected. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 8 - Income Taxes | Deferred income taxes reflect the tax consequences on future years of differences between the tax bases: 03/31/19 12/31/18 Net operating loss carry-forward 3,662,833 3,380,285 Deferred tax asset at 21% $ 769,195 $ 709,860 Valuation allowance (769,195 ) (709,860 ) Net future income taxes $ - $ - In assessing the realizability of future tax assets, management considers whether it is more likely than not that some portion or all of the future tax assets will not be realized. The ultimate realization of future tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of future tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management has provided for a valuation allowance on all of its losses as there is no assurance that future tax benefits will be realized. Our tax loss carry-forwards will begin to expire in 2030. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Note 9 - Subsequent Events | We issued 501,389,937 shares in conversion of debt. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies Policies | |
Consolidated Financial Statements | In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending March 31, 2019. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2018 (as amended), as reported in Form 10-K filed with the Securities and Exchange Commission. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. |
Principles of Consolidation | Our consolidated financial statements include the accounts of Tautachrome, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation. |
Long-Lived Assets, Intangible Assets and Impairment | In accordance with U.S. GAAP, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Net Loss Per Share | Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the three months ended March 31, 2019 as the effect of our potential common stock equivalents would be anti-dilutive. |
Recent Accounting Pronouncements | In February 2016, the FASB established Topic 842, Leases The new standard was effective for us on January 1, 2019 and we have adopted it. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements as the Company has no leases whose term is greater than one year. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation-Stock Compensation |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Schedule of Convertible notes payable | 03/31/19 12/31/18 All convertible promissory notes Unpaid principal 1,007,889 1,121,243 Discounts (28,129 ) (45,750 ) Convertible notes payable, net $ 979,760 $ 1,075,493 Classified as short-term Unpaid principal balance 642,182 673,678 Discounts (360 ) (45,750 ) Convertible notes payable - short-term, net $ 641,822 $ 627,928 Classified as long-term Unpaid principal balance 98,651 25,000 Discounts (27,769 ) - Convertible notes payable - short-term, net $ 70,882 $ 25,000 Classified as in default Unpaid principal balance 267,056 422,565 Discounts - - Convertible notes payable - short-term, net $ 267,056 $ 422,565 |
Changes in outstanding derivative liabilities | Balance, December 31, 2018 $ 365,497 Changes due to new issuances 31,312 Changes due to extinguishments (175,780 ) Changes due to adjustment to fair value (58,360 ) Balance, March 31, 2019 $ 162,669 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Summary of deferred income taxes | 03/31/19 12/31/18 Net operating loss carry-forward 3,662,833 3,380,285 Deferred tax asset at 21% $ 769,195 $ 709,860 Valuation allowance (769,195 ) (709,860 ) Net future income taxes $ - $ - |
Organization and Nature of Bu_2
Organization and Nature of Business (Details Narrative) | 3 Months Ended |
Mar. 31, 2019 | |
State or Country of incorporation | Delaware |
Entity incorporation date | Jun. 5, 2006 |
ArKnet [Member] | |
Organization and nature of business description | The ArKnet is a fintech platform connecting consumers to providers in the global $48 trillion household purchasing market, using augmented reality as the medium of interaction. |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Exercise price | $ 1 | |
Adjustment to additional paid in capital, Imputed interest | $ 1,520 | |
Twenty Second Trust [Member] | ||
Accrued interest | $ 21,744 | |
Interest payment default description | According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%. | |
Twenty Second Trust [Member] | Related Party [Member] | ||
Accrued interest | $ 1,213 | |
Outstanding principal amount | 119,947 | $ 118,591 |
Dr. Leonard [Member] | ||
Proceeds from additional related-party loan | 18,000 | |
Principal payments on related-party loans | $ 11,188 |
Capital (Details Narrative)
Capital (Details Narrative) - USD ($) | Aug. 14, 2018 | Aug. 29, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Imputed interest | $ 4,008 | $ 4,750 | |||
Common stock shares issued for incentive to creditor | 15,000,000 | ||||
Debt discount | $ 127,500 | ||||
Preferred stock shares authorized | 13,795,104 | 13,795,104 | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |||
Shares issued for settlement of lawsuit | $ 5,000 | $ 5,000 | |||
Gain or (loss) on litigation | $ (55,000) | $ 2,426,668 | $ (55,000) | ||
Shares issued for settlement | 10,000,000 | 10,000,000 | |||
Convertible promissory note [Member] | |||||
Debt discount | $ 31,312 | ||||
Debt conversion converted instrument shares issued | 221,542,274 | 246,542,274 | |||
Principal reduction on debt conversion original amount | $ 306,623 | ||||
Reduction on debt conversion converted instrument, Accrued interest | 27,728 | ||||
Loss on conversion | 41,278 | ||||
Decrease in derivative liabilities | $ 326,339 | ||||
Convertible promissory note One [Member] | |||||
Shares issued | 939,263,152 | ||||
Debt conversion converted instrument shares issued | 935,640,097 | ||||
Principal reduction on debt conversion original amount | $ 218,508 | ||||
Reduction on debt conversion converted instrument, Accrued interest | 11,914 | ||||
Loss on conversion | 120,775 | ||||
Conversion fees | 4,000 | ||||
Decrease in derivative liabilities | 175,780 | ||||
Australian Individual [Member] | Convertible promissory note [Member] | |||||
Debt discount | $ 48,934 | ||||
Debt conversion converted instrument shares issued | 3,623,055 | ||||
Principal reduction on debt conversion original amount | $ 4,258 | ||||
Reduction on debt conversion converted instrument, Accrued interest | 695 | ||||
Gain or (loss) on litigation | $ 1,330 | ||||
Series E Preferred Stock [Member] | |||||
Accrued expenses | $ 1,837,000 | ||||
Series E Preferred Stock [Member] | ArKnet [Member] | |||||
Preferred stock shares authorized | 40,000 | ||||
Preferred stock, par value | $ 0.0001 | ||||
Description for share exchange ratio and voting rights | Each share has the voting rights of all other voting shares combined, multiplied by 0.00001, |
Debt (Details)
Debt (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
All convertible promissory notes [Member] | ||
Unpaid principal | $ 1,007,889 | $ 1,121,243 |
Discounts | (28,129) | (45,750) |
Convertible notes payable | 979,760 | 1,075,493 |
Classified as short-term [Member] | ||
Unpaid principal | 642,182 | 673,678 |
Discounts | (360) | (45,750) |
Convertible notes payable | 641,822 | 627,928 |
Classified as long-term [Member] | ||
Unpaid principal | 98,651 | 25,000 |
Discounts | (27,769) | |
Convertible notes payable | 70,882 | 25,000 |
Classified as in default [Member] | ||
Unpaid principal | 267,056 | 422,565 |
Discounts | ||
Convertible notes payable | $ 267,056 | $ 422,565 |
Debt (Details 1)
Debt (Details 1) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Details 1Abstract | |
Beginning balance | $ 365,497 |
Changes due to new issuances | 31,312 |
Changes due to extinguishments | (175,780) |
Changes due to adjustment to fair value | (58,360) |
Ending balance | $ 162,669 |
Debt (Details Narrative)
Debt (Details Narrative) | Jan. 11, 2019USD ($)shares | Aug. 07, 2018USD ($) | Jan. 23, 2019USD ($)shares | Jan. 16, 2019USD ($)shares | Mar. 31, 2019USD ($)Number$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)shares |
Proceeds from convertible notes payable | $ 105,475 | $ 593,000 | |||||
Debt discount | 127,500 | ||||||
Convertible notes payable - related party | 88,152 | $ 81,340 | |||||
Convertible notes payable, interest | $ 2,720 | ||||||
Convertible notes payable, principal | 641,822 | 627,928 | |||||
Twenty Second Trust [Member] | |||||||
Loans from related parties | 208,099 | ||||||
Accrued interest | $ 21,744 | ||||||
Convertible Note Derivatives [Member] | |||||||
Default interest rate, description | • An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%. | ||||||
Notes redemption, description | The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%. | ||||||
Fair value of derivatives | $ 162,668 | ||||||
Convertible Note Derivatives [Member] | Minimum [Member] | |||||||
Assumption of stock price per shares | $ / shares | $ 0.0013 | ||||||
Notes conversion trading days | Number | 20 | ||||||
Estimated effective discount rate | 35.00% | ||||||
Volatility rate | 157.80% | ||||||
Effective interest rate | 243.00% | ||||||
Convertible Note Derivatives [Member] | Maximum [Member] | |||||||
Assumption of stock price per shares | $ / shares | $ 0.0005 | ||||||
Notes conversion trading days | Number | 25 | ||||||
Estimated effective discount rate | 42.00% | ||||||
Volatility rate | 296.00% | ||||||
Effective interest rate | 289.00% | ||||||
Crypto Exchange Promissory Note [Member] | |||||||
Convertible promissory notes, issued | $ 100,000 | ||||||
Interest rate description | The Crypto Note accrues interest at 4% until maturity which is 18 months from issue and 10% after maturity. | ||||||
Debt conversion, description | The holder can convert unpaid principal and accrued interest into KLK20 tokens at any time at the rate of $0.25 per token. | ||||||
Convertible promissory note [Member] | |||||||
Convertible promissory notes, issued | 633,000 | ||||||
Proceeds from convertible notes payable | $ 105,475 | 561,313 | |||||
Beneficial conversion feature of convertible notes | 209,040 | ||||||
Original issue discount | $ 71,688 | ||||||
Debt discount | 31,312 | ||||||
Convertible notes payable - related party | 88,152 | ||||||
Convertible notes payable, principal | $ 1,002,735 | ||||||
Debt instrument converted amount shares issued | shares | 221,542,274 | 246,542,274 | |||||
Convertible promissory note [Member] | Accrues interest[Member] | |||||||
Bearing interest rate | 5.00% | 5.00% | 5.00% | ||||
Convertible promissory note [Member] | Principal [Member] | |||||||
Bearing interest rate | 10.00% | 10.00% | 10.00% | ||||
Convertible promissory note [Member] | Australian Individual [Member] | |||||||
Number of convertible promissory notes | Number | 2 | ||||||
Convertible notes payable, default | $ 267,056 | ||||||
Debt discount | 48,934 | ||||||
Accrued interest | 29,224 | ||||||
Convertible notes payable, interest | 695 | ||||||
Convertible notes payable, principal | 4,258 | ||||||
Gain on settlement | $ 1,330 | ||||||
Debt instrument converted amount shares issued | shares | 3,623,055 | ||||||
Promissory note [Member] | |||||||
Convertible promissory notes, issued | $ 100,000 | $ 1,475 | $ 4,000 | ||||
Maturity date | Jul. 8, 2020 | Jul. 23, 2020 | Jul. 16, 2020 | ||||
Convertible note converted in shares | shares | 83,333,333 | 1,109,023 | 3,007,519 |
Litigation (Details Narrative)
Litigation (Details Narrative) - USD ($) | Aug. 14, 2018 | Oct. 12, 2017 | Oct. 17, 2017 | Aug. 29, 2017 | Dec. 16, 2016 | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 10, 2017 | Oct. 07, 2017 |
Amount of damages sought | $ 2,377,915 | ||||||||
Loss contingency damages sought interest amount | $ 4,459 | ||||||||
Interest rate | 4.50% | ||||||||
Litigation amount damages sought included in liabilities removed | $ 2,377,915 | ||||||||
Litigation amount damages sought accrued interest included in liabilities removed | 4,459 | $ 44,294 | |||||||
Shares issued for settlement of lawsuit | $ 5,000 | $ 5,000 | |||||||
Gain or (loss) on litigation | $ (55,000) | $ 2,426,668 | $ (55,000) | ||||||
Shares issued for settlement | 10,000,000 | 10,000,000 | |||||||
McRae [Member] | |||||||||
Loss contingency damages sought, liabilities recognized | $ 250,000 | $ 49,000 | |||||||
Gain or (loss) on litigation | $ 201,000 | ||||||||
Loss contingency damages sought by related party, restricted shares | 850,000,000 | ||||||||
Description for the amendment to the litigation filed against company by related party | McRae filed a complaint, later amended twice, against the Company in the US District Court in Kansas. The amended complaint alleges 1) that the Company breached a written agreement in an alleged employment by failing to pay him 35 million shares of the Company’s common stock and terminating his association with the Company on June 16, 2017 without proper notice. The complaint goes on to allege 2) that the Company committed fraud by silence for failing to inform him of an intent to receive the benefit of his services while harboring an intent to not compensate him, 3) that the Company breached an unwritten agreement with him to provide him with 185 million shares of the Company’s common stock, and 4) that the Company breached a convertible promissory note by failing and refusing to repay him the principal and accrued interest thereunder | ||||||||
Litigation settlement, shares offered | 50,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Net operating loss carry-forward | $ 3,662,833 | $ 3,380,285 |
Deferred tax asset at 21% | 769,195 | 709,860 |
Valuation allowance | (769,195) | (709,860) |
Net future income taxes |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Operating loss carry-forwards expiration period | Tax loss carry-forwards will begin to expire in 2030 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 3 Months Ended |
Mar. 31, 2019shares | |
Subsequent Event [Member] | |
Debt instrument converted amount shares issued | 501,389,937 |