Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 11, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 0001483646 | |
Document Period End Date | Jun. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55730 | |
Entity Registrant Name | BLACKSTAR ENTERPRISE GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1120628 | |
Entity Address, Address Line One | 4450 Arapahoe Ave. | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Boulder | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80303 | |
City Area Code | 303 | |
Local Phone Number | 500-3210 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 122,627,383 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 505,485 | $ 32,987 |
Prepaid expenses | 14,196 | 51,224 |
Total current assets | 519,681 | 84,211 |
Fixed assets | 66,000 | 10,000 |
Total Assets | 585,681 | 94,211 |
Current liabilities | ||
Accounts payable | 11,024 | 29,880 |
Accrued expenses | 26,542 | 4,517 |
Advances to related parties | 18,780 | 18,780 |
Convertible notes payable, net of discounts of $816,996 and $158,390 at June 30, 2021 and December 31, 2020 | 148,279 | 25,885 |
Notes payable | 30,000 | 50,000 |
Total current liabilities | 234,625 | 129,062 |
Stockholders' Equity (Deficit) | ||
Preferred stock, 10,000,000 shares authorized; $0.001 par value; 1,000,000 shares issued and outstanding | 1,000 | 1,000 |
Common stock, 700,000,000 shares authorized; $0.001 par value 118,078,138 and 101,063,806 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 118,078 | 101,063 |
Additional paid in capital | 7,482,400 | 5,829,279 |
Common stock subject to cancellation | (250,000) | |
Accumulated deficit | (7,000,422) | (5,966,193) |
Total stockholders' equity (deficit) | 351,056 | (34,851) |
Total Liabilities and Stockholders' Deficit | $ 585,681 | $ 94,211 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Convertible notes payable discount | $ 816,996 | $ 158,390 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 700,000,000 | 700,000,000 |
Common stock, shares issued | 118,078,138 | 101,063,806 |
Common stock, shares outstanding | 118,078,138 | 101,063,806 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses | ||||
Legal and professional | $ 23,804 | $ 46,791 | $ 46,304 | $ 49,791 |
Management consulting - related party | 98,000 | 9,910 | 149,142 | 26,410 |
General and administrative | 139,525 | 31,114 | 195,172 | 46,733 |
Total operating expenses | 261,329 | 87,815 | 390,618 | 122,934 |
Other expense (income) | ||||
Amortization of discount on convertible notes | 251,507 | 26,273 | 350,089 | 59,516 |
Amortization of convertible debt issuance costs | 19,531 | 3,077 | 23,964 | 9,577 |
Loss on note payable conversions | 124,745 | 276,563 | 166,422 | 297,108 |
Interest expense | 54,807 | 7,315 | 103,136 | 16,017 |
Other expense (income) | 450,590 | 313,228 | 643,611 | 382,218 |
Net (loss) | $ (711,919) | $ (401,043) | $ (1,034,229) | $ (505,152) |
Net (loss) per share - basic and diluted | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted | 113,331,275 | 52,880,834 | 109,280,076 | 50,562,551 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid in Capital [Member] | Common Stock Subject to Cancellation [Member] | Common Stock To Be Issued [Member] | Accumulatedt Deficit [Member] | Total |
Balance at Dec. 31, 2019 | $ 48,003 | $ 1,000 | $ 4,117,321 | $ (4,400,602) | $ (234,278) | ||
Balance, shares at Dec. 31, 2019 | 48,003,443 | 1,000,000 | |||||
Adjust for shares directly from IHG retirement to treasury at December 31, 2019 | $ 150 | 150 | |||||
Adjust for shares directly from IHG retirement to treasury at December 31, 2019, shares | (150,000) | ||||||
Shares issued for conversion of notes and interest | $ 12,521 | 351,268 | 363,789 | ||||
Shares issued for conversion of notes and interest, shares | 12,520,694 | ||||||
Beneficial conversion feature of convertible note | 103,000 | 103,000 | |||||
Common stock to be issued for loans made to the Company - 550,000 shares | 11,000 | 11,000 | |||||
Net loss | (505,152) | (505,152) | |||||
Balance at Jun. 30, 2020 | $ 60,374 | $ 1,000 | 4,571,739 | 11,000 | (4,905,754) | (261,641) | |
Balance, shares at Jun. 30, 2020 | 60,374,137 | 1,000,000 | |||||
Balance at Mar. 31, 2020 | $ 50,241 | $ 1,000 | 4,139,711 | (4,504,710) | (313,758) | ||
Balance, shares at Mar. 31, 2020 | 50,241,238 | 1,000,000 | |||||
Shares issued for conversion of notes and interest | $ 10,133 | 329,028 | 339,161 | ||||
Shares issued for conversion of notes and interest, shares | 10,132,899 | ||||||
Beneficial conversion feature of convertible note | 103,000 | 103,000 | |||||
Common stock to be issued for loans made to the Company - 550,000 shares | 11,000 | 11,000 | |||||
Net loss | (401,044) | (401,043) | |||||
Balance at Jun. 30, 2020 | $ 60,374 | $ 1,000 | 4,571,739 | 11,000 | (4,905,754) | (261,641) | |
Balance, shares at Jun. 30, 2020 | 60,374,137 | 1,000,000 | |||||
Balance at Dec. 31, 2020 | $ 101,063 | $ 1,000 | 5,829,279 | (5,966,193) | (34,851) | ||
Balance, shares at Dec. 31, 2020 | 101,063,806 | 1,000,000 | |||||
Shares issued for conversion of notes and interest | $ 7,469 | 301,998 | 309,467 | ||||
Shares issued for conversion of notes and interest, shares | 7,468,804 | ||||||
Beneficial conversion feature of convertible note | 917,000 | 917,000 | |||||
Shares issued for loan costs | $ 300 | 23,700 | 24,000 | ||||
Shares issued for loan costs, shares | 300,000 | ||||||
Shares issued for financing fees | $ 1,079 | 41,923 | 43,002 | ||||
Shares issued for financing fees, shares | 1,078,862 | ||||||
Shares issued for software development | $ 500 | 19,500 | 20,000 | ||||
Shares issued for software development, shares | 500,000 | ||||||
Shares issued subject to cancellation | $ 7,667 | 349,000 | (356,667) | ||||
Shares issued subject to cancellation, shares | 7,666,666 | ||||||
Shares issued subject to cancellation realized | 106,667 | 106,667 | |||||
Net loss | (1,034,229) | (1,034,229) | |||||
Balance at Jun. 30, 2021 | $ 118,078 | $ 1,000 | 7,482,400 | (250,000) | (7,000,422) | 351,056 | |
Balance, shares at Jun. 30, 2021 | 118,078,138 | 1,000,000 | |||||
Balance at Mar. 31, 2021 | $ 107,308 | $ 1,000 | 6,315,228 | (106,667) | (6,288,502) | 28,367 | |
Balance, shares at Mar. 31, 2021 | 107,307,525 | 1,000,000 | |||||
Shares issued for conversion of notes and interest | $ 4,574 | 218,066 | 222,640 | ||||
Shares issued for conversion of notes and interest, shares | 4,574,573 | ||||||
Beneficial conversion feature of convertible note | 653,500 | 653,500 | |||||
Shares issued for loan costs | $ 300 | 11,700 | 12,000 | ||||
Shares issued for loan costs, shares | 300,000 | ||||||
Shares issued for financing fees | $ 396 | 19,406 | 19,802 | ||||
Shares issued for financing fees, shares | 396,040 | ||||||
Shares issued for software development | $ 500 | 19,500 | 20,000 | ||||
Shares issued for software development, shares | 500,000 | ||||||
Shares issued subject to cancellation | $ 5,000 | 245,000 | (250,000) | ||||
Shares issued subject to cancellation, shares | 5,000,000 | ||||||
Shares issued subject to cancellation realized | 106,667 | 106,667 | |||||
Net loss | (711,920) | (711,919) | |||||
Balance at Jun. 30, 2021 | $ 118,078 | $ 1,000 | $ 7,482,400 | $ (250,000) | $ (7,000,422) | $ 351,056 | |
Balance, shares at Jun. 30, 2021 | 118,078,138 | 1,000,000 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Number of Common stock to be issued for loans | 550,000 | 550,000 |
CONSOLIDATED STATEMENTS OF CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net (loss) | $ (1,034,229) | $ (505,152) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Amortization of convertible note issue costs | 23,964 | 9,577 |
Amortization of discounts on convertible notes | 350,089 | 59,516 |
Amortization of discounts on convertible note interest | 21,841 | |
Effects of conversions on convertible debt discounts | 10,404 | |
Loss on conversion of notes payable | 166,422 | 297,108 |
Interest and loan fees paid in stock | 173,669 | 23,162 |
Changes in operating assets and liabilities | ||
Decrease in prepaids | 37,028 | 94 |
(Decrease) in accounts payable | (18,856) | (2,942) |
Increase in accrued payables | 29,070 | 10,547 |
Cash used in operating activities | (251,002) | (97,686) |
Cash Flows From Investing Activities | ||
Purchase of software | (36,000) | |
Cash used in investing activities | (36,000) | |
Cash Flows From Financing Activities | ||
Increase in notes payable | 125,000 | |
Repayments of notes payable | (20,000) | |
Repayments in advances from related party | (22,590) | |
Proceeds from convertible notes, net of offering costs and original issue discount | 779,500 | |
Net cash provided by financing activities | 759,500 | 102,410 |
Net increase (decrease) in cash | 472,498 | 4,724 |
Cash, beginning of period | 32,987 | 33,251 |
Cash, end of period | 505,485 | 37,975 |
Supplemental disclosure of non-cash investing and financing activities | ||
Beneficial conversion feature initially recorded as debt discount | 917,000 | |
Notes payable and interest converted to common stock | 142,856 | 87,225 |
Common stock issued for software | 20,000 | |
Common stock to be issued for loan costs | 11,000 | |
Cash paid for interest on debt | $ 2,750 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Nature Of Operations And Basis Of Presentation | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION BlackStar Enterprise Group, Inc. (the “Company” or “BlackStar”) was incorporated in the State of Delaware on December 18, 2007 as NPI08, Inc. The Company changed its name to BlackStar Enterprise Group, Inc. in 2016 when new management and capital were introduced. On January 25, 2016, International Hedge Group, Inc. (“IHG”) signed an agreement to acquire a 95% interest in the Company. In lieu of the 95% of common shares originally agreed upon, IHG received 44,400,000 shares of common stock and 1,000,000 shares of Series A Preferred Stock. IHG is our controlling shareholder and is engaged in providing management services and capital consulting to companies. IHG and BlackStar are currently managed and controlled by two individuals each of whom is a beneficial owner of an additional 9% of the Company’s common stock. The Company intends to act as a merchant banking firm seeking to facilitate venture capital to early stage revenue companies. BlackStar intends to offer consulting and regulatory compliance services to crypto-equity companies and blockchain entrepreneurs for securities, tax, and commodity issues. BlackStar is conducting ongoing analysis for opportunities in involvement in crypto-related ventures through a wholly-owned subsidiary, Crypto Equity Management Corp (“CEMC”). BlackStar intends to serve businesses in their early corporate lifecycles and may provide funding in the forms of ventures in which they control the venture until divestiture or spin-off by developing the businesses with capital. BlackStar formed a subsidiary nonprofit company, Crypto Industry SRO Inc. (“Crypto”) in 2017. Crypto’s business plan is to act as a self-regulatory membership organization for the crypto-equity industry and set guidelines and best-practice rules by which industry members would abide. BlackStar will provide management of this entity under a services contract. Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with United States generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles (US GAAP)for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. These unaudited financial statements are condensed and should be read in conjunction with those financial statements included in the Form 10-K and interim disclosures generally do not repeat those in the annual statements. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These unaudited consolidated financial statements include BlackStar and its wholly owned subsidiaries: Crypto Equity Management Corp. and Crypto Industry SRO Inc., and were prepared from the accounts of the Company in accordance with US GAAP. All significant intercompany transactions and balances have been eliminated on consolidation. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2021 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 2 – GOING CONCERN The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements for the six months ended June 30, 2021 and the year ended December 31, 2020, the Company has generated no revenues and has incurred losses. As of June 30, 2021, the Company had cash of $505,485, working capital of $285,056 and an accumulated deficit of $7,000,422. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The continuation of the Company as a going concern is dependent upon the ability to raise equity or debt financing, and the attainment of profitable operations from the Company's planned business. Management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Summary Of Significant Accounting Policies | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect 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. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income taxes provision and valuation allowance of deferred tax assets; the fair value of financial instruments; the carrying value and recoverability of long-lived assets, and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Recent pronouncements Management has evaluated accounting standards and interpretations issued but not yet effective as of June 30, 2021, and does not expect such pronouncements to have a material impact on the Company’s financial position, operations, or cash flows. Reclassifications Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year presentation. |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders Equity | |
STOCKHOLDERS' EQUITY (DEFICIT) | NOTE 4 – STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock The Company has an authorized number of preferred shares of 10,000,000, with a par value of $0.001 per share. On August 25, 2016, the Company issued 1,000,000 shares of its Series A Preferred Series stock to International Hedge Group, Inc. in fulfillment of the purchase agreement. These shares are convertible at a ratio of 100 shares of the common stock of the Company for each share of preferred stock of the Company. Common Stock During the six months ended June 30, 2021, the Company issued shares of its common stock as follows: • 7,468,804 shares for conversion of $148,856 principal and interest on convertible note payable, and recognized a loss conversion of $166,422. • 300,000 shares valued at $24,000 ($0.08 per share) to a convertible note holder as consideration for the Company’s entering into certain third party transactions which were in default of the convertible promissory note, security purchase agreement and other related documents entered into on November 16, 2020. • 1,078,862 shares valued at $43,002 as consideration for financing fees for loans made to the Company. • 500,000 shares valued at $0.04 per share as partial consideration for software development costs. • 2,666,666 shares valued at $106,667 ($0.04 per share) to a convertible note holder. These shares have been issued as condition that the Company files a resale registration statement covering the underlying convertible shares. The shares are returnable to the Company upon the effective date of the registration statement. The resale registration statement was not filed in the period stipulated in the agreement with the note holder, and accordingly the $106,667 value of the shares has been charged to operations as of June 30, 2021. • 5,000,000 shares valued at $250,000 ($0.05 per share) to a convertible note holder. These shares have been issued as condition that the Company files a resale registration statement covering the underlying convertible shares. The shares are returnable to the Company upon the effective date of the registration statement. |
WARRANTS
WARRANTS | 6 Months Ended |
Jun. 30, 2021 | |
Compensation Related Costs [Abstract] | |
WARRANTS | NOTE 5 – WARRANTS In April 2019, the Company issued a convertible note for $110,000. Pursuant to the terms of the note agreement, the Company issued warrants to the holder for the purchase 440,000 shares of the Company’s common stock. The warrants are exerecisable at $0.25 per share for a term of 5 years. The $132,953 fair value of the warrants was calculated using the Black-Scholes pricing model with the following assumptions: stock price $0.38; strike price $0.25; volatility 98%; risk free rate 2.25% and term of 5 years. The $132,953 fair value of the warrants was charged to operations when issued during the year ended December 31, 2019. At June 30, 2021, the intrinsic value of the outstanding warrants was $0, as the trading price of the Company’s common stock at that date was less than the underlying exercise price of the warrants. A summary of warrant activity during the three months ended June 30, 2021 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding and exercisable – December 31, 2020 540,000 $ 0.31 2.99 Exercised — Expired — Outstanding and exercisable – June 30, 2021 540,000 $ 0.31 2.49 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 6 – CONVERTIBLE NOTES GS CAPITAL PARTNERS On December 4, 2020, the Company entered into a financing arrangement with GS Capital Partners LLC. The face value of the note is $55,000 at an interest rate of 10% and the maturity date is December 2, 2021. At the time of the disbursement the Company received $45,000 net cash proceeds, as there was a deduction from proceeds to the Company of $10,000 for original interest discount and placement costs. The repayment is a lump sum payment on the due date or is convertible into Company common stock at the discretion of the lender. The conversion, if chosen, will be at 50% of the two lowest trading days in the previous ten-day period prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note. The Company has recorded the conversion feature as a beneficial conversion feature of $55,000. The fair value of $55,000 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the current trading prices of the Company’s common stock. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. In June 2021, GS Capital elected to convert $40,000 principal and $2,056 accrued interest due on the note into 2,635,549 shares of the Company’s common stock under the conversion provision and terms of the note agreement. The Company recognized a loss on conversion of $44,663. As of June 30, 2021, $15,000 principal was remaining on the note. (See Note 9). 11 Table of Contents BLACKSTAR ENTERPRISE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 (Unaudited) NOTE 6 – CONVERTIBLE NOTES (continued) POWER UP LENDING GROUP (i) On July 24, 2020, the Company entered into a financing agreement with Power Up to borrow $43,000 with a due date of July 24, 2021. The note bears interest at 10%, with a default rate of 22%, and is convertible, commencing 180 days after the date of issuance. The conversion price is to be calculated at 61% of the lowest trading price of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note.The Company has reserved 41,876,318 shares for conversion. Net proceeds from the loan were $40,000, after legal fees and offering costs of $3,000. These fees and costs are being amortized over the term of the note. The Company has recorded the conversion feature as a beneficial conversion feature. The fair value of $43,000 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the trading price of the Company’s common stock as of the date of the note. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. On January 28, 2021, Power Up elected to convert the total principal and interest due on their note of July 24, 2020 in the principal amount of $43,000 and $2,150 of accrued and unpaid interest thereon into 2,894,231 shares of the Company’s common stock at $0.0156 per share. The Company recognized a loss on conversion of $41,677. (ii) On October 8, 2020, the Company received the proceeds from a financing agreement entered into with Power Up Lending Group on September 24, 2020 to borrow $53,000. The note bears interest at 10%, with a default rate of 22%, and is convertible, commencing 180 days after the date of issuance. The conversion price is to be calculated at 61% of the lowest trading price of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 25,429,828 shares for conversion. Net proceeds from the loan were $50,000, after legal fees and offering costs of $3,000. The Company has recorded the conversion feature as a beneficial conversion feature. The fair value of $53,000 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the trading price of the Company’s common stock as of the date of the note. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. On April 12, 2021, Power Up elected to convert the total principal and interest due on their note of October 8, 2020 in the principal amount of $53,000 and $2,650 of accrued and unpaid interest thereon into 1,939,024 shares of the Company’s common stock at $0.0287 per share. The Company recognized a loss on conversion of $80,082. (iii) On January 15, 2021, the Company entered into a financing agreement with Power Up Lending Group to borrow $43,500. The note bears interest at 10%, with a default rate of 22%, and is convertible, commencing 180 days after the date of issuance. The conversion price is to be calculated at 61% of the lowest trading price of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 20,871,651 shares for conversion. Net proceeds from the loan were $40,000, after legal fees of $3,500. The Company has recorded the conversion feature as a beneficial conversion feature. The fair value of $43,500 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the trading price of the Company’s common stock as of the date of the note. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. (See Note 9) 12 Table of Contents BLACKSTAR ENTERPRISE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 (Unaudited) NOTE 6 – CONVERTIBLE NOTES (continued) (iv) On March 31, 2021, the Company entered into a financing agreement with Power Up Lending Group to borrow $103,500. The note bears interest at 10%, with a default rate of 22%, and is convertible, commencing 180 days after the date of issuance. The conversion price is to be calculated at 63% of the lowest trading price of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 20,535,714 shares for conversion. On April 1, 2021, the Company received the net proceeds from the loan of $100,000, after legal fees and offering costs of $3,500. QUICK CAPITAL LLC On November 23, 2020, the Company entered into a financing agreement with Quick Capital LLC to borrow $33,275 with a due date of July 16, 2021. The note bears interest at 10%, with a default rate of 24%, and is convertible inton shares of the Company’s common stock. The conversion price is to be calculated at 60% of the 2 lowest trading prices of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 12,000,000 shares for conversion. Net proceeds from the loan were $25,000, after legal fees and offering costs of $8,275. The Company has recorded the conversion feature as a beneficial conversion feature. The fair value of $33,275 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the trading price of the Company’s common stock as of the date of the note. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. SE HOLDINGS LLC On January 26, 2021, the Company entered into a financing agreement with SE Holdings LLC to borrow $220,000. The note bears interest at 10%, with a default rate of 24%, and is convertible, at any time after the date of issuance. The conversion price is to be calculated at 50% of the average of the three lowest trading price of the Company’s common stock for the previous twenty trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 44,000,000 shares for conversion. Net proceeds from the loan were $177,500, after original issue discount of $20,000 and legal fees and offering costs of $22,500. The Company has recorded the conversion feature as a beneficial conversion feature. The fair value of $220,000 for the expense portion of the note is being amortized over the term of the note. This fair value has been determined based on the trading price of the Company’s common stock as of the date of the note. Management has determined that this treatment is appropriate given the uncertain nature of the value of the Company and its stock, and there will be no revaluations until the note is paid or redeemed for stock. ADAR ALEF LLC On April 29, 2021, the Company entered into a financing agreement with Adar Alef, LLC to borrow $550,000. The note bears interest at 10%, with a default rate of 24%, and is convertible at the option of the holder, at any time after the date of issuance. The conversion price is to be calculated at 50% of the average of the three lowest closing bid prices of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to this note, and the Company has reserved 86,105,000 shares for conversion The Company received the net proceeds from the loan of $462,000, after original issue discount, legal fees and offering costs of $88,000. 13 Table of Contents BLACKSTAR ENTERPRISE GROUP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 (Unaudited) NOTE 6 – CONVERTIBLE NOTES (continued) Convertible notes payable at June 30, 2021 and December 31, 2020 are summarized as follows: Holder Face Amount Interest Rate Due Date 2021 2020 GS Capital Partners $ 55,000 10% December 2, 2021 $ 15,000 $ 55,000 Power UP Lending Group $ 43,000 10% July 24, 2021 $ — $ 43,000 $ 53,000 10% September 24, 2021 $ — $ 53,000 $ 43,500 10% January 15, 2022 $ 43,500 $ — $ 103,500 10% March 31, 2022 $ 103,500 $ — SE Holdings LLC $ 220,000 10% January 26, 2022 $ 220,000 $ — Quick Capital LLC $ 33,275 10% July 16, 2021 $ 33,275 $ 33,275 Adar Alef LLC $ 550,000 10% April 29, 2022 $ 550,000 $ — Discount $ (816,996 ) $ (158,390 ) $ 148,279 $ 25,885 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 7 – NOTES PAYABLE On November 18, 2020, outstanding loans to the two individuals were rolled over and extended into two new loans in the amounts of $20,000 and $30,000, due May 18, 2021 with interest at 11%. Each of the two loan holders was paid $2,500 principal (an aggregate $5,000) and aggregate accrued interest of $3,026. In addition, the two individuals were issued an aggregate 1,550,000 shares of the Company’s common stock valued at $46,500 ($0.03 per share), under the default penalty provisions of the original notes. Effective May 18, 2021, each of the loan holders was repaid $10,000 principal and accrued interest of $1,100 and $1,650. The two notes were rolled into new loans in the amounts of $10,000 and $20,000, due November 18, 2021 with interest at 11%. In addition, the two individuals were issued an aggregate 300,000 shares of the Company’s common stock valued at $12,000 ($0.04 per share). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 8 – RELATED PARTY TRANSACTIONS In support of the Company’s efforts and cash requirements, it must rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. The advances are considered temporary in nature and have not been formalized by a promissory note. IHG, controlling shareholder of the Company, provides management consulting services to the Company. There is no formal written agreement that defines the compensation to be paid. For the six months ended June 30, 2021 and 2020 the Company recorded related party management fees of $149,142 and $26,410, respectively. During the year ended December 31, 2020, there were no advances from related parties, and the Company repaid $23,070 to its parent company, IHG. At June 30, 2021, a former officer of the Company was owed $18,780. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS • On July 6, 2021, GS Capital elected to convert the remaining $15,000 principal and accrued interest of $879 due on their note into 976,954 shares of the Company’s common stock ($0.016375 per share) under the conversion provision and terms of the note agreement. • In July 2021, Power Up elected to convert (in two tranches) the total principal of $43,500 due on their note of January 15, 2021 together with accrued upaid interest thereon of $2,175 into an aggregate 3,572,791 shares of the Company’s common stock (1,304,348 shares at $0.0138 per share and 2,268,443 shares at $0.0122 per share) under the conversion provision and terms of the note agreement. • On July 26, 2021, the Company entered into a financing agreement with Power Up Lending Group Ltd. to borrow $103,750. The note matures on July 26, 2022, bears interest at 10%, with a default rate of 22%, and is convertible at the option of the holder, at any time after 180 days of the date of issuance. The conversion price is to be calculated at 65% of the average of the two lowest closing bid prices of the Company’s common stock for the previous 15 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to the note. There are no warrants or options attached to this note, and the Company has reserved 34,220,756 shares for conversion. The Company received net proceeds from the loan of $100,000, after legal and financing fees of $3,750. • On July 28, 2021, the Company entered into a financing agreement with Power Up Lending Group Ltd. to borrow $78,750. The note matures on July 28, 2022, bears interest at 10%, with a default rate of 22%, and is convertible at the option of the holder, at any time after 180 days of the date of issuance. The conversion price is to be calculated at 65% of the average of the two lowest closing bid prices of the Company’s common stock for the previous 15 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. There are no warrants or options attached to the note. There are no warrants or options attached to this note, and the Company has reserved 36,346,153 shares for conversion. The Company received net proceeds from the loan of $75,000, after legal and financing fees of $3,750. The Company has analyzed its operations subsequent to June 30, 2021 through the date that these financial statements were issued, and has determined that it does not have any additional material subsequent events to disclose. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect 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. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant estimates include income taxes provision and valuation allowance of deferred tax assets; the fair value of financial instruments; the carrying value and recoverability of long-lived assets, and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Recent pronouncements | Recent pronouncements Management has evaluated accounting standards and interpretations issued but not yet effective as of June 30, 2021, and does not expect such pronouncements to have a material impact on the Company’s financial position, operations, or cash flows. |
Reclassifications | Reclassifications Certain amounts in the consolidated financial statements for prior year periods have been reclassified to conform with the current year presentation. |
WARRANTS (Tables)
WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Warrants Activity | A summary of warrant activity during the three months ended June 30, 2021 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Outstanding and exercisable – December 31, 2020 540,000 $ 0.31 2.99 Exercised — Expired — Outstanding and exercisable – June 30, 2021 540,000 $ 0.31 2.49 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | Convertible notes payable at June 30, 2021 and December 31, 2020 are summarized as follows: Holder Face Amount Interest Rate Due Date 2021 2020 GS Capital Partners $ 55,000 10% December 2, 2021 $ 15,000 $ 55,000 Power UP Lending Group $ 43,000 10% July 24, 2021 $ — $ 43,000 $ 53,000 10% September 24, 2021 $ — $ 53,000 $ 43,500 10% January 15, 2022 $ 43,500 $ — $ 103,500 10% March 31, 2022 $ 103,500 $ — SE Holdings LLC $ 220,000 10% January 26, 2022 $ 220,000 $ — Quick Capital LLC $ 33,275 10% July 16, 2021 $ 33,275 $ 33,275 Adar Alef LLC $ 550,000 10% April 29, 2022 $ 550,000 $ — Discount $ (816,996 ) $ (158,390 ) $ 148,279 $ 25,885 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 25, 2016 |
Schedule of Equity Method Investments [Line Items] | |||
Shares issued to parent entity | 118,078,138 | 101,063,806 | |
Common Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of Company purchased | 9.00% | ||
International Hedge Group, Inc. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of Company purchased | 95.00% | ||
International Hedge Group, Inc. [Member] | Common Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Shares issued to parent entity | 44,400,000 | ||
International Hedge Group, Inc. [Member] | Class A Preferred Stock [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Shares issued to parent entity | 1,000,000 |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Going Concern [Abstract] | ||
Cash | $ 505,485 | |
Working capital | 285,056 | |
Accumulated deficit | $ 7,000,422 | $ 5,966,193 |
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Nov. 16, 2020 | Aug. 25, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||||
Preferred stock, par value per share | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Debt conversion shares issued, value | $ 222,640 | $ 339,161 | $ 309,467 | $ 363,789 | |||
Shares issued to parent entity | 118,078,138 | 118,078,138 | 101,063,806 | ||||
Common stock for conversion [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt conversion shares issued | 7,468,804 | ||||||
Debt conversion shares issued, value | $ 148,856 | ||||||
Loss on note payable conversions | $ 166,422 | ||||||
Shares issued | 2,666,666 | ||||||
Shares issued, value | $ 106,667 | ||||||
Shares issued price per share | $ 0.04 | $ 0.04 | |||||
Common stock for conversion [Member] | Two individuals as partial consideration for loans [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued | 300,000 | ||||||
Shares issued, value | $ 24,000 | ||||||
Shares issued price per share | $ 0.08 | ||||||
Common stock for conversion [Member] | Financing fees for loans [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued | 1,078,862 | ||||||
Shares issued, value | $ 43,002 | ||||||
Common stock for conversion [Member] | Software development costs [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued | 500,000 | ||||||
Shares issued price per share | 0.04 | $ 0.04 | |||||
Common stock for conversion [Member] | Convertible note holder [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued | 5,000,000 | ||||||
Shares issued, value | $ 250,000 | ||||||
Shares issued price per share | $ 0.05 | $ 0.05 | |||||
International Hedge Group, Inc. [Member] | Series A Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares issued to parent entity | 1,000,000 | ||||||
Convertion rate of common shares to preferred stock | 100 |
WARRANTS (Narrative) (Details)
WARRANTS (Narrative) (Details) - Warrants [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2021 | |
Warrants issued | 440,000 | |
Warrant expense | $ 132,953 | |
Convertible note expense | $ 110,000 | |
Black-Scholes [Member] | ||
Warrants, exercise price per share | $ 0.25 | |
Warrants, expiration period | 5 years | |
Value of warrants | $ 132,953 | |
Stock price | $ 0.38 | |
Strike price | $ 0.25 | |
Volatility | 98.00% | |
Risk free rate | 2.25% | |
Time to expiration | 5 years | |
Intrinsic value of the outstanding warrants | $ 0 |
WARRANTS (Schedule of Warrant A
WARRANTS (Schedule of Warrant Activity) (Details) - Warrant [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Balance | 540,000 | |
Exercised | ||
Expired | ||
Balance | 540,000 | 540,000 |
Weighted Average Exercise Price | ||
Balance | $ 0.31 | |
Balance | $ 0.31 | $ 0.31 |
Weighted Average Remaining Contractual Life (Years) | ||
Balance | 2 years 5 months 26 days | 2 years 11 months 26 days |
CONVERTIBLE NOTES (Narrative) (
CONVERTIBLE NOTES (Narrative) (Details) - USD ($) | Apr. 12, 2021 | Jan. 15, 2021 | Dec. 04, 2020 | Oct. 08, 2020 | Apr. 29, 2021 | Jan. 28, 2021 | Jan. 26, 2021 | Nov. 23, 2020 | Jul. 24, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 24, 2020 |
Short-term Debt [Line Items] | ||||||||||||||||
Convertible note | $ 148,279 | $ 148,279 | $ 25,885 | |||||||||||||
Legal fees | 23,804 | $ 46,791 | 46,304 | $ 49,791 | ||||||||||||
Debt convert amount | 222,640 | 339,161 | 309,467 | 363,789 | ||||||||||||
Loss on debt conversion | (124,745) | $ (276,563) | (166,422) | $ (297,108) | ||||||||||||
Power Up Lending Group [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Interest rate | 10.00% | 10.00% | ||||||||||||||
Default rate of interest | 22.00% | 22.00% | ||||||||||||||
Company received net cash proceed | $ 40,000 | $ 100,000 | ||||||||||||||
Legal fees | $ 3,500 | $ 3,500 | ||||||||||||||
Shares reserved for conversion | 20,871,651 | 20,535,714 | ||||||||||||||
Percentage of conversion | 61.00% | 63.00% | ||||||||||||||
Percentag of limit amount of stock | 4.99% | 4.99% | ||||||||||||||
Fair value of expense portion of note amortized | $ 43,500 | |||||||||||||||
Borrowed amount | $ 43,500 | $ 103,500 | ||||||||||||||
Quick Capital LLC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Interest rate | 10.00% | |||||||||||||||
Maturity date | Jul. 16, 2021 | |||||||||||||||
Default rate of interest | 24.00% | |||||||||||||||
Company received net cash proceed | $ 25,000 | |||||||||||||||
Legal fees | $ 8,275 | |||||||||||||||
Shares reserved for conversion | 12,000,000 | |||||||||||||||
Percentage of conversion | 60.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Fair value of expense portion of note amortized | $ 33,275 | |||||||||||||||
Borrowed amount | $ 33,275 | |||||||||||||||
SE Holdings LLC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Interest rate | 10.00% | |||||||||||||||
Default rate of interest | 24.00% | |||||||||||||||
Company received net cash proceed | $ 177,500 | |||||||||||||||
Legal fees | $ 22,500 | |||||||||||||||
Shares reserved for conversion | 44,000,000 | |||||||||||||||
Percentage of conversion | 50.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Debt discount | $ 20,000 | |||||||||||||||
Fair value of expense portion of note amortized | 220,000 | |||||||||||||||
Borrowed amount | $ 220,000 | |||||||||||||||
Adar Alef LLC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Interest rate | 10.00% | |||||||||||||||
Default rate of interest | 24.00% | |||||||||||||||
Company received net cash proceed | $ 462,000 | |||||||||||||||
Legal fees | $ 88,000 | |||||||||||||||
Shares reserved for conversion | 86,105,000 | |||||||||||||||
Percentage of conversion | 50.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Borrowed amount | $ 550,000 | |||||||||||||||
GS Capital Partners LLC [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Convertible note | $ 55,000 | $ 15,000 | $ 15,000 | $ 55,000 | ||||||||||||
Interest rate | 10.00% | 10.00% | 10.00% | |||||||||||||
Maturity date | Dec. 2, 2021 | Dec. 2, 2021 | ||||||||||||||
Company received net cash proceed | $ 45,000 | |||||||||||||||
Legal fees | $ 10,000 | |||||||||||||||
Percentage of conversion | 50.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Fair value of expense portion of note amortized | $ 55,000 | |||||||||||||||
Debt convert amount | $ 40,000 | |||||||||||||||
Debt conversion shares issued | 2,635,549 | |||||||||||||||
Loss on debt conversion | $ 44,663 | |||||||||||||||
Beneficial Conversion Feature | $ 55,000 | |||||||||||||||
Accrued interest | $ 2,056 | 2,056 | ||||||||||||||
Borrowed amount | $ 55,000 | $ 55,000 | ||||||||||||||
Power Up [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Convertible note | $ 43,000 | |||||||||||||||
Interest rate | 10.00% | |||||||||||||||
Maturity date | Jul. 24, 2020 | Jul. 24, 2021 | ||||||||||||||
Default rate of interest | 22.00% | |||||||||||||||
Company received net cash proceed | $ 40,000 | |||||||||||||||
Legal fees | $ 3,000 | |||||||||||||||
Shares reserved for conversion | 41,876,318 | |||||||||||||||
Percentage of conversion | 61.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Fair value of expense portion of note amortized | $ 43,000 | |||||||||||||||
Debt convert amount | $ 43,000 | |||||||||||||||
Debt conversion shares issued | 2,894,231 | |||||||||||||||
Debt convert conversion price | $ 0.0156 | |||||||||||||||
Loss on debt conversion | $ 41,677 | |||||||||||||||
Accrued interest | $ 2,150 | |||||||||||||||
Power Up [Member] | ||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||
Convertible note | $ 53,000 | |||||||||||||||
Interest rate | 10.00% | |||||||||||||||
Maturity date | Oct. 8, 2020 | |||||||||||||||
Default rate of interest | 22.00% | |||||||||||||||
Company received net cash proceed | $ 50,000 | |||||||||||||||
Legal fees | $ 3,000 | |||||||||||||||
Shares reserved for conversion | 25,429,828 | |||||||||||||||
Percentage of conversion | 61.00% | |||||||||||||||
Percentag of limit amount of stock | 4.99% | |||||||||||||||
Fair value of expense portion of note amortized | $ 53,000 | |||||||||||||||
Debt convert amount | $ 80,082 | |||||||||||||||
Debt conversion shares issued | 1,939,024 | |||||||||||||||
Debt convert conversion price | $ 0.0287 | |||||||||||||||
Accrued interest | $ 2,650 | |||||||||||||||
Borrowed amount | $ 53,000 |
CONVERTIBLE NOTES (Schedule of
CONVERTIBLE NOTES (Schedule of Convertible Notes Payable) (Details) - USD ($) | Dec. 04, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | |||
Discount | $ (816,996) | $ (158,390) | |
Convertible notes payable | 148,279 | 25,885 | |
GS Capital Partners LLC [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 55,000 | ||
Interest Rate | 10.00% | 10.00% | |
Due Date | Dec. 2, 2021 | Dec. 2, 2021 | |
Convertible notes payable | $ 55,000 | $ 15,000 | 55,000 |
Power Up Lending Group [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 43,000 | ||
Interest Rate | 10.00% | ||
Due Date | Jul. 24, 2021 | ||
Convertible notes payable | 43,000 | ||
Power Up Lending Group One [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 53,000 | ||
Interest Rate | 10.00% | ||
Due Date | Sep. 24, 2021 | ||
Convertible notes payable | 53,000 | ||
Power Up Lending Group Two [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 43,500 | ||
Interest Rate | 10.00% | ||
Due Date | Jan. 15, 2022 | ||
Convertible notes payable | $ 43,500 | ||
Power Up Lending Group Three [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 103,500 | ||
Interest Rate | 10.00% | ||
Due Date | Mar. 31, 2022 | ||
Convertible notes payable | $ 103,500 | ||
SE Holdings LLC [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 220,000 | ||
Interest Rate | 10.00% | ||
Due Date | Jan. 26, 2022 | ||
Convertible notes payable | $ 220,000 | ||
Quick Capital LLC [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 33,275 | ||
Interest Rate | 10.00% | ||
Due Date | Jul. 16, 2021 | ||
Convertible notes payable | $ 33,275 | 33,275 | |
Adar Alef, LLC [Member] | |||
Short-term Debt [Line Items] | |||
Face Amount | $ 550,000 | ||
Interest Rate | 10.00% | ||
Due Date | Apr. 29, 2022 | ||
Convertible notes payable | $ 550,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 18, 2021 | Nov. 18, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||
Debt conversion shares issued, value | $ 222,640 | $ 339,161 | $ 309,467 | $ 363,789 | |||
Common stock, par value per share | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Repayments of notes payable | $ 20,000 | ||||||
Individual One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Note payable | $ 10,000 | $ 20,000 | |||||
Individual Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Note payable | $ 20,000 | $ 30,000 | |||||
Two individuals [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Default rate of interest | 11.00% | 11.00% | |||||
Maturity date | Nov. 18, 2021 | May 18, 2021 | |||||
Accrued interest | $ 3,026 | ||||||
Common stock, shares issued | 300,000 | 1,550,000 | |||||
Debt conversion shares issued, value | $ 12,000 | $ 46,500 | |||||
Common stock, par value per share | $ 0.04 | $ 0.03 | |||||
Repayments of notes payable | $ 2,500 | ||||||
Two individuals [Member] | Aggregate Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of notes payable | $ 5,000 | ||||||
Loan holders [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt conversion shares issued, value | $ 10,000 | ||||||
Loan holders [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest | 1,100 | ||||||
Loan holders [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest | $ 1,650 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Management consulting expense | $ 98,000 | $ 9,910 | $ 149,142 | $ 26,410 | |
Amount owed to related party | 18,780 | 18,780 | $ 18,780 | ||
Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amount owed to related party | $ 18,780 | $ 18,780 | |||
International Hedge Group, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amount owed to related party | $ 23,070 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 28, 2021 | Jul. 06, 2021 | Jul. 31, 2021 | Jul. 28, 2021 | Jul. 26, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Event [Line Items] | |||||||||
Debt conversion shares issued, value | $ 222,640 | $ 339,161 | $ 309,467 | $ 363,789 | |||||
Subsequent Event [Member] | GS Capital elected to convert [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt conversion shares issued | 976,954 | ||||||||
Debt conversion shares issued price per share | $ 0.016375 | ||||||||
Debt conversion shares issued, value | $ 15,000 | ||||||||
Accrued interest | $ 879 | ||||||||
Subsequent Event [Member] | Power Up elected to convert [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt conversion shares issued | 3,572,791 | ||||||||
Subsequent Event [Member] | Power Up elected to convert [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt conversion shares issued | 1,304,348 | ||||||||
Debt conversion shares issued price per share | $ 0.0138 | ||||||||
Subsequent Event [Member] | Power Up elected to convert [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt conversion shares issued | 2,268,443 | ||||||||
Debt conversion shares issued price per share | $ 0.0122 | ||||||||
Debt conversion shares issued, value | $ 43,500 | ||||||||
Accrued interest | $ 2,175 | ||||||||
Subsequent Event [Member] | Power Up Lending Group Ltd [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Short term borrowings | $ 78,750 | $ 78,750 | $ 103,750 | ||||||
Maturity date | Jul. 28, 2022 | Jul. 26, 2022 | |||||||
Interest rate | 10.00% | 10.00% | 10.00% | ||||||
Default rate of interest | 22.00% | 22.00% | |||||||
Percentage of conversion price | 65.00% | 65.00% | |||||||
Percentage of stock received of total outstanding common stock | 4.99% | 4.99% | |||||||
Shares reserved for conversion | 36,346,153 | 36,346,153 | 34,220,756 | ||||||
Net proceeds from loan | $ 75,000 | $ 100,000 | |||||||
Legal fees and financing fees | $ 3,750 | $ 3,750 |