Diamond Wellness (POTN) 10-Q 8 Sep 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 31, 2020
Cover [Abstract]
Entity Registrant Name	PotNetwork Holdings, Inc.
Entity Central Index Key	0001746563
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		751,836,384
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

INCOME STATEMENT

INCOME STATEMENT - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Sales	$ 2,980,057	$ 4,345,411	$ 5,285,564	$ 10,528,121
Cost of goods sold	2,041,561	2,791,217	2,962,434	6,375,884
Gross profit	938,497	1,554,194	2,323,130	4,152,237
Operating expenses
Freight Out	210,548	677,071	551,206	1,865,101
Sales & Marketing	457,649	458,210	1,127,650	1,172,106
General & Administrative Expenses	191,165	271,000	487,898	830,870
Total operating expenses	859,362	1,406,281	2,166,754	3,868,076
Financing expenses
Interest Exp	91,480	78,434	181,099	163,218
Total Financing expenses	91,480	78,434	181,099	163,218
Total expenses	950,841	1,484,715	2,347,853	4,031,294
Profit (Loss) before Income Tax	(12,345)	69,479	(24,723)	120,943
Provision for Income Tax	0	0	0	0
Net Profit (Loss)	$ (12,345)	$ 69,479	$ (24,723)	$ 120,943
Earnings per share Basic and diluted	$ (0.000017)	$ 0.000099	$ (0.000034)	$ 0.000173
Basic and diluted weighted average common shares outstanding	727,836,384	700,706,621	727,836,384	700,706,621

BALANCE SHEET

BALANCE SHEET - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current Assets
Cash/Bank Balances	$ 217,032	$ 70,581
Accounts Receivable
From Customers	0	325,305
From related parties	0	0
From others	649,312	649,312
Total Accounts Receivable	649,312	974,617
Advances - Drop Shipper	5,342,884	5,070,696
Prepaid Expenses	0	9,000
Total Current assets	6,209,227	6,124,893
TOTAL ASSETS	6,209,227	6,124,893
Current Liabilities
Payables	1,613,959	1,673,501
Total Current Liabilities	1,613,959	1,673,501
Long-term Liabilities
Loan from 3rd Party with interest	41,600	40,960
Note Payable, convertible	4,267,978	4,192,539
Total long-term liabilities	4,309,578	4,233,499
Total Liabilities	5,923,537	5,907,000
Stockholders' Equity
Common Stock, authorized 1,500,000,000 shares $ 0.00001 par value, 727,836,384 shares Issued and outstanding as of June 30, 2020 and 700,836,384 shares Issued and outstanding as of December 31, 2019	4,088,360	3,995,840
Preferred Stock Class A, $ 0.00001 par value, 50,000,000 shares authorized, 34,289 shares Issued and outstanding as of June 30, 2020 and December 31, 2019	400	400
Additional paid in capital	1,626,589	1,626,589
Retained Earnings	(5,429,659)	(5,404,935)
Total Stockholders' Equity	285,690	217,893
Total Liabilities & Equity	$ 6,209,227	$ 6,124,893

BALANCE SHEET (Parenthetical)

BALANCE SHEET (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Stockholders' Equity
Common stock, shares par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	727,836,384	700,836,384
Common stock, shares outstanding	727,836,384	700,836,384
Preferred stock, shares par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	34,289	34,289
Preferred stock, shares outstanding	34,289	34,289

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY - USD ($)	Total	Preferred Shares [Member]	Common Shares [Member]	Surplus (Deficit)
Balance, shares at Dec. 31, 2018		39,839	569,364,712
Balance, amount at Dec. 31, 2018	$ 1,132,335	$ 400	$ 3,169,040	$ (2,037,105)
Shares Issued, shares			131,471,672
Shares Issued, amount	826,800	0	$ 826,800	0
Additional paid in capital	1,626,589	0	0	1,626,589
Net Profit (Loss)	(3,367,831)	$ 0	$ 0	(3,367,831)
Balance, shares at Dec. 31, 2019		34,289	700,836,384
Balance, amount at Dec. 31, 2019	217,893	$ 400	$ 3,995,840	(3,778,347)
Shares Issued, shares			27,000,000
Shares Issued, amount	92,520	0	$ 92,520	0
Net Profit (Loss)	(24,723)	$ 0	$ 0	(24,723)
Balance, shares at Jun. 30, 2020		34,289	727,836,384
Balance, amount at Jun. 30, 2020	$ 285,690	$ 400	$ 4,088,360	$ (3,803,070)

CASH FLOWS STATEMENT

CASH FLOWS STATEMENT - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operations
Net Income (Loss)	$ (12,345)	$ 69,479	$ (24,723)	$ 120,943
Adjustments to reconcile net income (loss)
Advances & Accounts Receivable	(83,599)	(834,093)	62,117	(625,442)
Other Assets	0	0	0	(1,125,000)
Payable	203,529	29,776	(59,542)	(308,773)
Total Adjustments to reconcile net income (loss)	119,930	(804,317)	2,575	(2,059,215)
Net cash from the current year operations	107,585	(734,838)	(22,148)	(1,938,272)
Investing
Common Stock	0	386,150	0	386,150
Preferred A Stock	0	0		0
Additional Paid In Capital	0	0		0
Net cash provided by investing activities	0	386,150	0	386,150
Financing
Third Party Loan	0	640	640	1,280
Notes Payable	83,980	(132,006)	75,439	1,070,788
Common equity	0	0	92,520	0
Net cash provided by financing activities	83,980	(131,366)	168,599	1,072,068
Net change in cash and cash equivalents	191,565	(480,054)	146,451	(480,054)
Cash and cash equivalents, beginning of period	25,467	584,426	70,581	584,426
Cash and cash equivalents, end of period	$ 217,032	$ 104,372	$ 217,032	$ 104,372

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2020
ORGANIZATION AND DESCRIPTION OF BUSINESS
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	PotNetwork Holdings, Inc. is a publicly traded holding company trading under the symbol “POTN”. The Company website is www.potnetworkholding.com. The Company has two (2) wholly-owned subsidiaries: (1) First Capital Venture Co., a Florida corporation which has as its wholly-owned subsidiary, Diamond CBD, Inc., a Delaware corporation. First Capital Venture Co. was acquired by the Company on January 31, 2017. (2) PotNetwork Media Group, Inc., a Nevada corporation Since the acquisition of First Capital Venture Co., the focus of the Company has been the development of the business of Diamond CBD, Inc. PotNetwork Media Group, Inc. is an early stage company. Any other subsidiaries are dormant having ceased operations. Hence, the financial statements reflect principally the business results of Diamond CBD business. Diamond CBD, Inc. focuses on the research, development, and multinational marketing of premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives. Diamond CBD’s catalog can be found in http://catalog.diamondcbd.com. Since the acquisition of First Capital Venture Co. and Diamond CBD on January 31, 2017, Diamond CBD’s business has become the primary business of this Company. Diamond CBD is treated as a wholly owned subsidiary of the Company and the accounts of the subsidiary are presented in the Company’s consolidated statements eliminating inter-company transactions. In accordance with ASC 805-40-45 the consolidated financial statements represent the continuation of the financial statements of the wholly owned subsidiary except for its capital structure. The Company, being the legal acquirer, but the accounting acquirer, did not have significant assets or revenues prior to the consolidation. Investment in the wholly owned subsidiary is accounted for in accordance with ASC 810. In February 2018, the Company reversed ab initio the March 17, 2017 holding company reorganization. As a result, the Company re-assumed its prior name, PotNetwork Holdings, Inc. (with an “s” on Holding), while remaining a Colorado corporation. None of the acquisitions or the share capital structure was affected. In February 2018, the shares issued pursuant to the reorganization were cancelled, no other adjustments had been made.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	➢ BASIS OF PRESENTATIONS ➢ USE OF ESTIMATES ➢ REVENUE RECOGNITION - DIAMOND CBD BUSINESS The Company applies the five-step model of revenue recognition under ASC 606 to the sales orders in the e-commerce platform. The following describes the Company’s process per each step (1-5) of ASC606: Step 1: “Identify the contract with a customer”. A. The company’s ecommerce website is making the offer to the customer. B. The customer chooses the product(s) and quantities of each. C. The customer enters its credit card information. D. The contract between the company and the customer is concluded when the authorization is taken vis-a-vis the merchant account which processes the credit card payment. Step 2: “Identify the performance obligations in the contract”. The company ships the merchandise and subsequently records the customer payment Step 3: “Determine the transaction price”. The website states each product’s regular price, and applicable sale price which is the amount that the customer pays the company. Step 4: “Allocate the transaction price to the performance obligations in the contract”. The company’s e-commerce platform applies any quantity discount or other discount offered by the Company, automatically. Step 5: “Recognize revenue when the entity satisfies a performance obligation”. The Company records the sale upon the order’s shipping, identified by a tracking number. ➢ CASH AND CASH EQUIVALENTS: ➢ ACCOUNTS RECEIVABLE: ➢ ASSESSMENT OF COLLECTABILITY: 1. Receivables supervisor is authorized to collect delinquent accounts 2. The Treasurer has the authority to assign accounts to a third party for collection 3. Recording of Accounts Receivable: All amounts due on physical delivery of the merchandise from the drop-shipper, must be promptly recorded as an accounts receivable. Each account receivable must be recorded and maintained until payment is received or the recorded amount is written off or extinguished. 4. An adequate provision for doubtful accounts must be established. When all reasonable efforts fail to collect an account receivable and it has been approved for write off, the related provision for doubtful accounts should be reduced. 5. Control and Subsidiary Accounts: The accounting system incorporates control accounts, where applicable, to ensure the completeness and accuracy of individual accounts. The Receivables supervisor must maintain subsidiary accounts for individual debtors in a manner that discloses, at a given point in time, the aggregate amount owed by each debtor as well as individual amounts making up the aggregate amount. Monthly, the subsidiary accounts for each accounts receivable must be reconciled with the control account. 6. Checks that are returned from the bank as non-negotiable are assessed a returned cheque charge. If there are 2 cheques returned from the same customer within a month, no further cheques will be accepted from the customer unless the cheques are certified, until there is an acceptable payment history for a further one-year period. 7. Statements to Debtors: Statements must be issued to debtors, on a monthly basis, providing meaningful and concise information on the status of their debts. Accounts receivable are considered overdue when a debtor does not pay or resolve the debt within 30 days from the invoice date or a written request for payment to the debtor. 8. All actions taken to collect overdue accounts must be documented. 9. If there is no response after the initial contact at the 30-day point (within a 30-day period - 60 days from date of invoice), accounts will be forwarded to Treasury Staff to take prompt and vigorous action to collect overdue accounts receivable. 10. Accounts receivable, in most cases, should be at least 30 days overdue (i.e., 60 days after invoice notification), before staff advises debtors that their accounts are overdue and that the accounts may be: a) Turned over to a private collection agency; b) subject to legal action c) Credit privileges will be revoked; and/or account may be suspended. ➢ PREPAID EXPENSES: ➢ PROPERTY AND EQUIPMENT: Property and equipment are stated at the written-down value [that is, after deducting depreciation from the cost]. This Company adapted the depreciation rates as provided in IRS publications, using the Modified Accelerated Cost Recovery System (MACRS). Computers and office equipment are considered as 5-year property. Office furniture and fixtures are 7-year property in MACRS and apply the 200% declining balance method over a GDS recovery period. Wherever possible, section 179 depreciation is also applied. However, the accumulated depreciation shall not exceed the actual cost at any point of time. As on the date of the financial statements, the Company does not hold any assets. ➢ INTANGIBLE ASSETS 1) Initial Measurement: Intangible asset acquisitions in which the consideration given is cash are measured by the amount of cash paid, which generally includes the transaction costs of the asset acquisition. However, if the consideration given is not in the form of cash (that is, in the form of non-cash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost which shall be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is clearer and, thus, more reliably measurable 2) Subsequent Measurement: The Company accounts for its intangible assets under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Subtopic (“ASC”) 350-30-35 “Intangibles-- Goodwill and Other--General Intangibles Other than Goodwill-Subsequent Measurement”. Under this method the Company is required to test an indefinite-lived intangible asset for impairment on at least an annual basis. This is done by comparing the asset’s fair value with its carrying amount. If the carrying amount exceeds the asset’s fair value, the difference in those amounts is recognized as an impairment loss. ➢ FINANCIAL INSTRUMENTS The carrying amounts reported in the balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of valuation hierarchy are defined as follows: Level 1: Valuations consist of unadjusted quoted prices in active markets for identical assets and liabilities and has the highest priority; Level 2: Valuations rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability; Level 3: Valuations are based on prices or third party or internal valuation models that require inputs that are significant to the fair value measurement and less observable and thus have the lowest priority. a) ASC 350 requires capitalizing any money spent on product development and product improvement. During the current year, money spent on product development is very little and is not significant. ➢ Investments in subsidiaries: ➢ Redemption Right:

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2020
GOING CONCERN
NOTE 3 - GOING CONCERN	The financial statements are prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. Since PotNetwork Holdings, Inc. has no uncertainties as on the balance sheet date, the financial statements need no adjustments. Since Diamond CBD’s business originated in 2015, it is considered as a business with limited operating history. Hence, this business is subject to all risks inherent in a developing business enterprise. Continued success depends on the problems, difficulties, complications, and delays frequently encountered in the competitive and regulatory environment in which it operates. Since the CBD business is a burgeoning industry, there are no established entities whose business model Diamond CBD can follow or build upon. Regulatory risk: Hemp-based CBD is often confused with marijuana-based CBD which remains illegal under federal Law; although the Company maintains that its products are legal. Yet, this legal risk cannot be ignored. Although Diamond CBD does not sell any marijuana-based CBD products, its products could be treated as being illegal by federal/state authorities and by consumers. The Company is involved in a highly competitive industry where it may compete with numerous other companies who offer alternative methods or approaches, who may have far greater resources, more experience, and personnel perhaps more qualified than the Company does. Such resources, experience and personnel may provide a substantial competitive advantage to the competition.

DEFERRED TAX COMPUTATION

DEFERRED TAX COMPUTATION	6 Months Ended
	Jun. 30, 2020
DEFERRED TAX COMPUTATION
NOTE 4 - DEFERRED TAX COMPUTATION	The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this method, income tax expense is recognized for: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all the deferred tax assets will not be realized. ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. There was no income tax expense during this quarter. However, the availability of a net operating loss carryforward and the associated deduction, is subject to complex and restrictive federal income tax provisions as codified by Internal Revenue Code section 172 and related Treasury Regulations, all of which are subject to change and the availability of which can never be free from doubt. The components of the deferred tax assets and liabilities are as follows: Deferred tax assets: June 30, 2020 December 31, 2019 Net operating loss carryovers $ 5,429,659 $ 5,404,935 Stock-based compensation - - Other temporary differences - - Total deferred tax assets $ 5,429,659 5,404,935 Valuation allowance (5,429,659 ) (5,404,935 ) Net deferred tax asset $ - $ -

INVENTORY DIAMOND CBD

INVENTORY DIAMOND CBD	6 Months Ended
	Jun. 30, 2020
INVENTORY DIAMOND CBD
NOTE 5 - INVENTORY DIAMOND CBD	This Company has arranged to buy the exact quantity from the suppliers, based on the customer orders and thereby has eliminated the need for holding inventory on hand at any point of time. Otherwise, this Company values the inventory at the lower of cost or market.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES
NOTE 6 - COMMITMENTS AND CONTINGENCIES	There are no commitments and contingencies that exist at present, other than the legal disputes mentioned supra.

BUDGET INTERNAL CONTROL PROCEDU

BUDGET INTERNAL CONTROL PROCEDURES	6 Months Ended
	Jun. 30, 2020
BUDGET INTERNAL CONTROL PROCEDURES
NOTE 7 - BUDGET & INTERNAL CONTROL PROCEDURES	1) Internal control procedures for inventory and cash control are being developed and implemented on an ongoing basis to ensure higher levels of performances. 2) Annual financial budget is reviewed by the Board of Directors. 3) Quarterly variance reports are reviewed by the Board of Directors.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2020
CAPITAL STOCK
NOTE 8 - CAPITAL STOCK	Common Stock Class A Preferred Stock - June 30, 2020

LOAN FROM THIRD PARTIES

LOAN FROM THIRD PARTIES	6 Months Ended
	Jun. 30, 2020
LOAN FROM THIRD PARTIES
NOTE 9 - LOAN FROM THIRD PARTIES	Company received a new loan on 1/9/2020 amounting $100,000 from Kabbage. Monthly payments are made on 2/29/2020, 3/27/2020,4/27/2020,5/27/2020 and 6/27/2020.The payment of $10,833.34 includes interest portion Date Beginning Interest Payment Ending 2/27/2020 $ 100,000.00 $ 2,500.00 $ 10,833.34 $ 91,666.66 3/27/2020 $ 91,666.66 $ 2,500.00 $ 10,833.34 $ 83,333.32 4/27/2020 $ 83,333.32 $ 2,500.00 $ 10,833.34 $ 74,999.98 5/27/2020 $ 74,999.98 $ 2,500.00 $ 10,833.34 $ 66,666.64 6/27/2020 $ 66,666.64 $ 2,500.00 $ 10,833.34 $ 58,333.30

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2020
NOTES PAYABLE
NOTE 10 - NOTES PAYABLE	Payee: Sign N Drive Principal Value: $1,850,000 Issue date: June 2, 2014, amended March 10, 2017 Terms: Interest Free, Fixed Conversion Rate at $.003 per share Embedded Conversion Option: Given the fixed rate conversion price, no derivative liability calculation for the conversion option was deemed required. There is no maturity date for this note. Year Interest Waived 2017 $ 7,318 2018 4,351 2019 4,770 The following table sets forth the number of shares of common stock issued pursuant to each conversion under the Note: Dates Quantity of shares Conversion price Amount converted August 13, 2014 161,127,812 0.00032 $ 51,561 April 4, 2016 2,750,000 0.004 11,000 August 2, 2016 4,500,000 0.0012 5,400 November 8, 2016 2,500,000 0.00152 3,800 December 22, 2016 10,000,000 0.00088 8,800 July 5, 2017 42,000,000 0.003 126,000 September 27, 2017 40,000,000 0.003 120,000 February 2, 2018 25,000,000 0.003 75,000 May 29, 2018 25,000,000 0.003 75,000 June 5, 2018 25,000,000 0.003 75,000 December 4, 2018 1,550,000 0.003 4,650 December 14, 2018 6,000,000 0.003 18,000 December 20, 2018 12,333,334 0.003 37,000 April 17, 2019 46,050,000 0.003 138,150 June 26, 2019 26,000,000 0.003 78,000 February 2,2020 27,000,000 0.00343 92,520 Per the above table: $246,000 was converted into common stock in 2017; $284,650 was converted into common stock in 2018; and $216,150 was converted into common stock in 2019. $92,520 was converted into common stock in 2020. Payee: Iliad Research & Trading LP On October 25, 2018, the Company issued a Note in the face amount of $5,525,000 which accrues interest at the rate of 10% per annum. The note has an Original Issue Discount (OID) of $500,000. The Note and any interest thereon is convertible at a fixed rate of $0.45 per share of common stock or after 12 months, at a variable conversion rate, the “redemption conversion price” at the lower of the fixed rate of $.45 per share, or a discount to the market price as defined in the Note. The Note is comprised of five (5) tranches (each, a “Tranche”), consisting of (i) an Initial Tranche in an amount equal to $1,400,000.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Purchase Agreement) (the ‘‘Initial Tranche”), and (ii) four (4) additional Tranches, one (l) in the amount of $1,375,000.00, one (l) in the amount of $550,000.00, and two (2) in the amount of $1,100,000.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents. $1,400,000 was received on 10/31/2018 $825,000 was received on 12/18/2018 $18,410 is the accrued interest for 2018 On February 8, 2019, the Company issued a Note in the face amount of $3,325,000 which accrues interest at the rate of 10% per annum. The note has an Original Issue Discount (OID) of $300,000. The Note and any interest thereon is convertible at a fixed rate of $0.45 per share of common stock or after 12 months, at a variable conversion rate, the “redemption conversion price” at the lower of the fixed rate of $.45 per share, or a discount to the market price as defined in the Note. The Note is comprised of three (3) tranches (each, a “Tranche”), consisting of (i) an Initial Tranche in an amount equal to $1,125,000.00 and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents (as defined in the Purchase Agreement) (the ‘‘Initial Tranche”), and (ii) two (2) additional Tranches, one (l) in the amount of $500,000.00, and one (1) in the amount of $1,650,000.00, plus any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction Documents. $1,125,000 was received on 2/17/2019 $77,794 is the accrued interest through 3/31/19 $84,144 is the accrued interest from 4/1/2019 to 6/30/2019 $169,641 is the accrued interest from 7/1/2019 to 12/31/19 $415,557 is the accrued interest from 1/1/2020 to 3/31/2020 $83,979 is the accrued interest from 4/1/2020 to 6/30/2020 On June 16, 2020, the Board of Directors approved the Company’s subsidiary, First Capital Venture, entering into a Disaster Relief Loan from the US Small Business Administration in the amount of $150,000. The loan is secured by a security interest in all the assets of First Capital Venture and is for working capital purposes.

MANAGEMENT ASSERTIONS ON THE 2

MANAGEMENT ASSERTIONS ON THE 2 COURT CASES REGARDING CONVERTIBLE PROMISSORY NOTES OF PREDECESSOR	6 Months Ended
	Jun. 30, 2020
MANAGEMENT ASSERTIONS ON THE 2 COURT CASES REGARDING CONVERTIBLE PROMISSORY NOTES OF PREDECESSOR
NOTE 11 - MANAGEMENT ASSERTIONS ON THE 2 COURT CASES REGARDING CONVERTIBLE PROMISSORY NOTES OF PREDECESSOR	1) Mammoth West Corporation [case# 17 CH 778, 19th Circuit Court of Lake County, IL], J. P. Carey Limited Partners, L.P. v. PotNetwork Holdings, Inc., [Case No.3:18-CV-00873-WWE, US District Court for the District of Connecticut] and Southridge Partners II Limited Partnership [case# 3:17-cv-01925, Connecticut] each filed a civil complaint about its convertible promissory note (each referred to as a “Note”). 2) In each instance, the Note was issued not by the Company, but by the Company’s predecessor issuer, SND Auto Company Inc. (which predecessor issuer had changed its name before changing it back to SND Auto Group, Inc.). The Note was issued by SND Auto Company Inc., on June 13, 2016 and on July 18, 2016, respectively, for money paid to SND Auto Company Inc., at a time in which SND Auto Company Inc. was the public Company, operating in the automobile industry. However, on March 14, 2017, SND Auto Company Inc. formed the Company and engaged in a holding Company reorganization whereby the Company became the public entity while SND Auto Company Inc., became its subsidiary. The holding Company reorganization was an express condition of First Capital Venture Holdings Co., which is the parent Company to Diamond CBD, Inc. being acquired by the Company and thereby entering the CBD oil business. The acquisition would not have occurred without the holding Company reorganization. Following this acquisition and the holding Company reorganization, and following the Company becoming the public entity, the stock price increased significantly. In other words, the CBD oil company stock price (the Company, i.e., PotNetwork Holdings, Inc.) was much greater than the stock price of the automobile Company (SND Auto Company Inc.). 3) The plaintiff invested in an automobile Company, not in the CBD oil business. Yet, plaintiff wants to convert its Note issued by the automobile company into shares of the CBD oil Company, which was not the maker of the Note. 4) As of December 31, 2017, SND Auto Company Inc., not the Company, owed Mammoth West Corporation $7,280 and Southridge Partners II Limited Partnership $26,000, on the Notes, which obligations were never disputed by SND Auto Company Inc. (which SND Auto Group, Inc. agreed to pay each, in full). 5) The Company has maintained that these were not debts of the Company, and the holding Company reorganization was engaged in to assure as much, not to avoid payment, but instead, to isolate this debt from the new CBD oil business, SND Auto Company Inc. being a separate and distinct legal entity with its own assets and debts. 6) However, on February 7, 2018, the Company and its predecessor issuer, SND Auto Company Inc., unwound the March 14, 2017 holding Company reorganization. 7) Because of that unwinding, Company’s counsel agrees that the Company, the public entity, became liable for this SND Auto Group, Inc. Notes, but only as of the February 7, 2018 rewinding, not prior thereto. 8) The dispute between the parties surrounds the conversion price. 9) In each case, the terms of the Note entitle the plaintiff, as holder, to convert into shares of the maker’s common stock. 10) On March 28, 2017 and on April 24, 2017, the conversion notice in each case was issued, not to SND Auto Group, Inc., the maker, but to the Company, for shares of the Company’s common stock. 11) The terms of the Note entitle the plaintiff to payment in cash or in shares of the maker (SND Auto Group, Inc.), at a discount of 65% of the lowest trading price of the preceding 30 trading days. 12) Instead, however, the plaintiff has throughout, sought to convert into shares of the Company, at a fraction of a penny per share, or approximately 2,700,000 shares in each instance (as opposed to approximately 56,000 shares in each instance), of the Company, based on SND Auto Group, Inc.’s share price, when SND Auto Group, Inc. was the public Company, and prior to the Company even being in existence, let alone being public. 13) It is the Company’s position that the Company only became obligated for the Note (which is the obligation of the maker, SND Auto Group, Inc.), upon the unwinding of the reorganization, or as of February 7, 2018, when the Company’s stock price was considerably higher (and therefore obligated to issue far fewer shares in satisfaction of the conversion notice) than it was prior to the holding Company reorganization and the acquisition of First Capital Venture Co. 14) On August 17, 2020, JP Carey Limited Partners L.P. and the Company came to a settlement, whereby the Company agreed to issue 28 million shares of the Company’s common stock to JP Carey, subject to certain leak out provisions. The case has subsequently been dismissed. 15) On August 27, 2020, the Court dismissed the case brought by Southridge Partners II Limited Partnership for failing to obtain counsel to prosecute the case after the Court’s order to do so. 16) The Company has been and continues to vigorously defend itself against the Mammoth claim. Potter v. PotNetwork Holdings, Inc., Diamond CBD, Inc., and First Capital Venture Co., CASE NO.: 19-24017-CV-SCOLA, US District Court for the Southern District of Florida. Plaintiff Potter has alleged that she purchased certain products from Diamond CBD that contained levels of CBD that were less than the amount stated on the packaging. Potter is seeking class action status. The Company has filed a motion to dismiss that was granted in part and denied in part. The litigation is continuing and is in the discovery stage. There is no estimate of potential damages at this time. The Company and its subsidiaries settled the matter at mediation on July 14, 2020. The parties completed the final documentation of the settlement and the case was dismissed on August 27, 2020. Pursuant to the settlement agreement the Company agreed to issue a $10 voucher to purported class members, pay the named plaintiff $5,000 and pay the law firms that brought the suit $200,000 in legal fees to be paid over 30 months, secured by a pledge of shares of the Company’s common stock. First Capital Venture Co. vs. T1 Payments, LLC et al., Case No. CACE-20-006914, UCN 062020CA006914AXXXCE, 17th Judicial Circuit in and Broward County, Florida. On April 22, 2020, First Capital Venture, a subsidiary of the Company filed a lawsuit against its previous merchant processor seeking the return of $649,311.73 being held by the merchant processor and for damages related to the processor ceasing to accept MasterCard payments from the Company’s customers for the Company’s products. The Court has granted a motion to transfer the case to Nevada where it will be filed as reflected in the merchant processing agreement. The litigation remains in its early stages.

SUBSEQUENT EVENTS JUNE 30, 2020

SUBSEQUENT EVENTS JUNE 30, 2020	6 Months Ended
	Jun. 30, 2020
SUBSEQUENT EVENTS JUNE 30, 2020
NOTE 12 - SUBSEQUENT EVENTS JUNE 30, 2020	On July 8, 2020 the Company issued 24,000,000 common shares to a note holder upon the conversion of $72,000 of indebtedness owed. The common stock issued in the transaction were issued pursuant to the exemption for registration contained in Section 4(a)(2) of the Securities Act of 1933.

CERTAIN RELATIONSHIPS AND RELAT

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE", "RELATED PARTY TRANSACTIONS"	6 Months Ended
	Jun. 30, 2020
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE", "RELATED PARTY TRANSACTIONS"
NOTE 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE", "RELATED PARTY TRANSACTIONS"	During the fiscal year 2019, Distribution Wholesale, Inc, a Florida Corporation, of which Kevin Hagen, CEO and President, advanced to the company $1,626,588.64 (the Advances) in the form of payments to several suppliers. On December 31, 2019, on the settlement of the debt created by the Advances, the board of Directors of the company issued a common stock Purchase Warrant, exercisable over 5 years, for 75,305,030 shares of common stock of the company at a price per share of $0.0216 to the Distribution Wholesale, Inc. Consequently the advances have been recorded as additional paid in capital on the Balance sheet of the company as of June 30, 2020

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATIONS	The statements were prepared following generally accepted accounting principles of the United States of America which were consistently applied.
USE OF ESTIMATES	Management uses estimates and assumptions in preparing these financial statements in accordance with U.S. generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.
REVENUE RECOGNITION DIAMOND CBD BUSINESS	Revenue from the sale of goods is measured at fair value of the consideration received or receivable and is recognized in the statement of comprehensive income of the Company when significant risks and rewards of the ownership of the goods have been transferred to the buyers. The Company applies the five-step model of revenue recognition under ASC 606 to the sales orders in the e-commerce platform. The following describes the Company’s process per each step (1-5) of ASC606: Step 1: “Identify the contract with a customer”. A. The company’s ecommerce website is making the offer to the customer. B. The customer chooses the product(s) and quantities of each. C. The customer enters its credit card information. D. The contract between the company and the customer is concluded when the authorization is taken vis-a-vis the merchant account which processes the credit card payment. Step 2: “Identify the performance obligations in the contract”. The company ships the merchandise and subsequently records the customer payment Step 3: “Determine the transaction price”. The website states each product’s regular price, and applicable sale price which is the amount that the customer pays the company. Step 4: “Allocate the transaction price to the performance obligations in the contract”. The company’s e-commerce platform applies any quantity discount or other discount offered by the Company, automatically. Step 5: “Recognize revenue when the entity satisfies a performance obligation”. The Company records the sale upon the order’s shipping, identified by a tracking number.
CASH AND CASH EQUIVALENTS	Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition and the balance cash in hand and the balance in bank accounts.
ACCOUNTS RECEIVABLE	Accounts Receivable (AR) is the payment which the Company will receive from its customers who have purchased its goods & services in the last month of the year and on credit terms. Usually the credit period is short, approximately a few days.
ASSESSMENT OF COLLECTABILITY	1. Receivables supervisor is authorized to collect delinquent accounts 2. The Treasurer has the authority to assign accounts to a third party for collection 3. Recording of Accounts Receivable: All amounts due on physical delivery of the merchandise from the drop-shipper, must be promptly recorded as an accounts receivable. Each account receivable must be recorded and maintained until payment is received or the recorded amount is written off or extinguished. 4. An adequate provision for doubtful accounts must be established. When all reasonable efforts fail to collect an account receivable and it has been approved for write off, the related provision for doubtful accounts should be reduced. 5. Control and Subsidiary Accounts: The accounting system incorporates control accounts, where applicable, to ensure the completeness and accuracy of individual accounts. The Receivables supervisor must maintain subsidiary accounts for individual debtors in a manner that discloses, at a given point in time, the aggregate amount owed by each debtor as well as individual amounts making up the aggregate amount. Monthly, the subsidiary accounts for each accounts receivable must be reconciled with the control account. 6. Checks that are returned from the bank as non-negotiable are assessed a returned cheque charge. If there are 2 cheques returned from the same customer within a month, no further cheques will be accepted from the customer unless the cheques are certified, until there is an acceptable payment history for a further one-year period. 7. Statements to Debtors: Statements must be issued to debtors, on a monthly basis, providing meaningful and concise information on the status of their debts. Accounts receivable are considered overdue when a debtor does not pay or resolve the debt within 30 days from the invoice date or a written request for payment to the debtor. 8. All actions taken to collect overdue accounts must be documented. 9. If there is no response after the initial contact at the 30-day point (within a 30-day period - 60 days from date of invoice), accounts will be forwarded to Treasury Staff to take prompt and vigorous action to collect overdue accounts receivable. 10. Accounts receivable, in most cases, should be at least 30 days overdue (i.e., 60 days after invoice notification), before staff advises debtors that their accounts are overdue and that the accounts may be: a) Turned over to a private collection agency; b) subject to legal action c) Credit privileges will be revoked; and/or account may be suspended.
PREPAID EXPENSES	Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. The company’s prepaid expenses is mostly advance payment to the drop shipper.
PROPERTY AND EQUIPMENT	As on the date of the financial statements, the Company does not hold any assets. Property and equipment are stated at the written-down value [that is, after deducting depreciation from the cost]. This Company adapted the depreciation rates as provided in IRS publications, using the Modified Accelerated Cost Recovery System (MACRS). Computers and office equipment are considered as 5-year property. Office furniture and fixtures are 7-year property in MACRS and apply the 200% declining balance method over a GDS recovery period. Wherever possible, section 179 depreciation is also applied. However, the accumulated depreciation shall not exceed the actual cost at any point of time. As on the date of the financial statements, the Company does not hold any assets.
INTANGIBLE ASSETS	1) Initial Measurement: Intangible asset acquisitions in which the consideration given is cash are measured by the amount of cash paid, which generally includes the transaction costs of the asset acquisition. However, if the consideration given is not in the form of cash (that is, in the form of non-cash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost which shall be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is clearer and, thus, more reliably measurable 2) Subsequent Measurement: The Company accounts for its intangible assets under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Subtopic (“ASC”) 350-30-35 “Intangibles-- Goodwill and Other--General Intangibles Other than Goodwill-Subsequent Measurement”. Under this method the Company is required to test an indefinite-lived intangible asset for impairment on at least an annual basis. This is done by comparing the asset’s fair value with its carrying amount. If the carrying amount exceeds the asset’s fair value, the difference in those amounts is recognized as an impairment loss.
FINANCIAL INSTRUMENTS	For certain of the Company’s financial instruments, including cash, accrued expenses and short-term debt, the carrying amounts approximate their fair values due to their short maturities. We adopted ASC Topic 820, “Fair Value Measurements and Disclosures”, which requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for current liabilities qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of valuation hierarchy are defined as follows: Level 1: Valuations consist of unadjusted quoted prices in active markets for identical assets and liabilities and has the highest priority; Level 2: Valuations rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability; Level 3: Valuations are based on prices or third party or internal valuation models that require inputs that are significant to the fair value measurement and less observable and thus have the lowest priority. a) ASC 350 requires capitalizing any money spent on product development and product improvement. During the current year, money spent on product development is very little and is not significant.
Investments in subsidiaries	The March 17, 2017 reorganization is referred as holding Company reorganization. The Company did not make any payment in cash or check in connection with the reorganization. First Capital Venture Co., the parent of Diamond CBD, Inc. is now the wholly owned subsidiary. The entire amount of current year profit is attributable to the business generated by this wholly owned subsidiary. As required under ASC 810, consolidated accounts are presented in this financial statement.
Redemption Right	In 2017, the Company signed convertible promissory notes for $1,200,000. The convertible notes have a redemption right, which reads as, “Notwithstanding any provision contained herein to the contrary including the conversion rights as set forth in this section, the Company shall be entitled, at any time prior to the expiration of five days from any notice of conversion, to repay this Note in full, plus interest, minus the credit accorded from prior payments, including from prior conversions, and avoid any further Note conversion and thus avoid the issuance of any additional shares of PotNetwork Holdings, Inc.” By this clause, no derivative liability exists. Further, these convertible promissory notes are exchanged for Common Stock Purchase Warrant, as mentioned supra.

DEFERRED TAX COMPUTATION (Table

DEFERRED TAX COMPUTATION (Tables)	6 Months Ended
	Jun. 30, 2020
DEFERRED TAX COMPUTATION
Schedule Of Deferred Tax Asset And Liabilities	Deferred tax assets: June 30, 2020 December 31, 2019 Net operating loss carryovers $ 5,429,659 $ 5,404,935 Stock-based compensation - - Other temporary differences - - Total deferred tax assets $ 5,429,659 5,404,935 Valuation allowance (5,429,659 ) (5,404,935 ) Net deferred tax asset $ - $ -

LOAN FROM THIRD PARTIES (Tables

LOAN FROM THIRD PARTIES (Tables)	6 Months Ended
	Jun. 30, 2020
LOAN FROM THIRD PARTIES
Schedule of Loan	Date Beginning Interest Payment Ending 2/27/2020 $ 100,000.00 $ 2,500.00 $ 10,833.34 $ 91,666.66 3/27/2020 $ 91,666.66 $ 2,500.00 $ 10,833.34 $ 83,333.32 4/27/2020 $ 83,333.32 $ 2,500.00 $ 10,833.34 $ 74,999.98 5/27/2020 $ 74,999.98 $ 2,500.00 $ 10,833.34 $ 66,666.64 6/27/2020 $ 66,666.64 $ 2,500.00 $ 10,833.34 $ 58,333.30

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2020
NOTES PAYABLE
Schedule of interest waived	Year Interest Waived 2017 $ 7,318 2018 4,351 2019 4,770
Schedule of conversion of notes in common Stock	Dates Quantity of shares Conversion price Amount converted August 13, 2014 161,127,812 0.00032 $ 51,561 April 4, 2016 2,750,000 0.004 11,000 August 2, 2016 4,500,000 0.0012 5,400 November 8, 2016 2,500,000 0.00152 3,800 December 22, 2016 10,000,000 0.00088 8,800 July 5, 2017 42,000,000 0.003 126,000 September 27, 2017 40,000,000 0.003 120,000 February 2, 2018 25,000,000 0.003 75,000 May 29, 2018 25,000,000 0.003 75,000 June 5, 2018 25,000,000 0.003 75,000 December 4, 2018 1,550,000 0.003 4,650 December 14, 2018 6,000,000 0.003 18,000 December 20, 2018 12,333,334 0.003 37,000 April 17, 2019 46,050,000 0.003 138,150 June 26, 2019 26,000,000 0.003 78,000 February 2,2020 27,000,000 0.00343 92,520

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Jun. 30, 2020USD ($)
Redemption Right [Member]
Convertible promissory notes	$ 1,200,000
Property and Equipment [Member]
Depreciation rate	200.00%
Office furniture and fixtures [Member]
Property plant and equipment useful life	7 years
Computers and office equipment [Member]
Property plant and equipment useful life	5 years

DEFERRED TAX COMPUTATION (Detai

DEFERRED TAX COMPUTATION (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss carryovers	$ 5,429,659	$ 5,404,935
Stock-based compensation	0	0
Other temporary differences	0	0
Total deferred tax assets	5,429,659	5,404,935
Valuation allowance	(5,429,659)	(5,404,935)
Net deferred tax asset	$ 0	$ 0

CAPITAL STOCK (Details Narrativ

CAPITAL STOCK (Details Narrative) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CAPITAL STOCK
Common stock shares, authorized	1,500,000,000	1,500,000,000
Common stock shares, par value	$ 0.00001	$ 0.00001
Common stock shares, issued	727,836,384	700,836,384
Common stock shares, outstanding	727,836,384	700,836,384
Preferred stock shares, authorized	50,000,000	50,000,000
Preferred stock shares, par value	$ 0.00001	$ 0.00001
Preferred stock shares, issued	34,289	34,289
Preferred stock shares, outstanding	34,289	34,289

LOAN FROM THIRD PARTIES (Detail

LOAN FROM THIRD PARTIES (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
6/27/2020 [Member]
Beginning	$ 66,667
Payment	2,500
Interest	10,833
Ending	58,333
5/27/2020 [Member]
Beginning	75,000
Payment	2,500
Interest	10,833
Ending	66,667
4/27/2020 [Member]
Beginning	83,333
Payment	2,500
Interest	10,833
Ending	75,000
3/27/2020 [Member]
Beginning	91,667
Payment	2,500
Interest	10,833
Ending	83,333
2/27/2020 [Member]
Beginning	100,000
Payment	10,833
Interest	2,500
Ending	$ 91,667

LOAN FROM THIRD PARTIES (Deta_2

LOAN FROM THIRD PARTIES (Details Narrative) - Kabbage [Member]	6 Months Ended
	Jun. 30, 2020USD ($)
Payment of loan, Description	Monthly payments are made on 2/29/2020, 3/27/2020,4/27/2020,5/27/2020 and 6/27/2020.
Proceeds from loan	$ 100,000
Monthly payments of loan	$ 10,833

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
NOTES PAYABLE
Interest Waived	$ 4,770	$ 4,351	$ 7,318

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1)	6 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares
February 2, 2020 [Member]
Amount Converted | $	$ 92,520
Quantity of Shares | shares	27,000,000
Conversion Price | $ / shares	$ 0.00343
May 29, 2018 [Member]
Amount Converted | $	$ 75,000
Quantity of Shares | shares	25,000,000
Conversion Price | $ / shares	$ 0.003
June 5, 2018 [Member]
Amount Converted | $	$ 75,000
Quantity of Shares | shares	25,000,000
Conversion Price | $ / shares	$ 0.003
December 4, 2018 [Member]
Amount Converted | $	$ 4,650
Quantity of Shares | shares	1,550,000
Conversion Price | $ / shares	$ 0.003
December 14, 2018 [Member]
Amount Converted | $	$ 18,000
Quantity of Shares | shares	6,000,000
Conversion Price | $ / shares	$ 0.003
December 20, 2018 [Member]
Amount Converted | $	$ 37,000
Quantity of Shares | shares	12,333,334
Conversion Price | $ / shares	$ 0.003
April 17, 2019 [Member]
Amount Converted | $	$ 138,150
Quantity of Shares | shares	46,050,000
Conversion Price | $ / shares	$ 0.003
June 26, 2019 [Member]
Amount Converted | $	$ 78,000
Quantity of Shares | shares	26,000,000
Conversion Price | $ / shares	$ 0.003
December 22, 2016 [Member]
Amount Converted | $	$ 8,800
Quantity of Shares | shares	10,000,000
Conversion Price | $ / shares	$ 0.00088
July 5, 2017 [Member]
Amount Converted | $	$ 126,000
Quantity of Shares | shares	42,000,000
Conversion Price | $ / shares	$ 0.003
September 27, 2017 [Member]
Amount Converted | $	$ 120,000
Quantity of Shares | shares	40,000,000
Conversion Price | $ / shares	$ 0.003
February 2, 2018 [Member]
Amount Converted | $	$ 75,000
Quantity of Shares | shares	25,000,000
Conversion Price | $ / shares	$ 0.003
November 8, 2016 [Member]
Amount Converted | $	$ 3,800
Quantity of Shares | shares	2,500,000
Conversion Price | $ / shares	$ 0.00152
August 13, 2014 [Member]
Amount Converted | $	$ 51,561
Quantity of Shares | shares	161,127,812
Conversion Price | $ / shares	$ 0.00032
August 2, 2016 [Member]
Amount Converted | $	$ 5,400
Quantity of Shares | shares	4,500,000
Conversion Price | $ / shares	$ 0.0012
April 4, 2016 [Member]
Amount Converted | $	$ 11,000
Quantity of Shares | shares	2,750,000
Conversion Price | $ / shares	$ 0.004

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	Feb. 08, 2019	Feb. 17, 2019	Dec. 18, 2018	Oct. 31, 2018	Oct. 25, 2018	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 16, 2020	Jun. 30, 2019	Mar. 31, 2019
Converted into common stock						$ 92,520	$ 216,150	$ 284,650	$ 246,000
Tranche One [Member]
Accrued interest charges fees and costs	$ 1,125,000				$ 1,400,000
Tranche Two [Member]
Accrued interest charges fees and costs	500,000				1,375,000
Tranche Three [Member]
Accrued interest charges fees and costs	1,650,000				550,000
Tranche Four [Member]
Accrued interest charges fees and costs					1,100,000
Disaster Relief Loan [Member]
Loan approved										$ 150,000
Illiad Research & Trading LP [Member]
Face amount	$ 3,325,000				$ 5,525,000
Fixed conversion rate	$ 0.45				$ 0.45
Accrues interest	0.10%				0.10%
Original issue discount	$ 300,000				$ 500,000
Accrued interest						415,557	$ 169,641	$ 18,410			$ 84,144	$ 77,794
Amount received		$ 1,125,000	$ 825,000	$ 1,400,000		$ 83,979
Sign N Drive Auto Mall, Inc. [Member]
Fixed conversion rate						$ .003
Principal value						$ 1,850,000

MANAGEMENT ASSERTIONS ON THE _2

MANAGEMENT ASSERTIONS ON THE 2 COURT CASES REGARDING CONVERTIBLE PROMISSORY NOTES OF PREDECESSOR (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2020	Aug. 17, 2020	Apr. 22, 2020	Dec. 31, 2017
Converted shares	56,000
Settlement, Descriptions	Pursuant to the settlement agreement the Company agreed to issue a $10 voucher to purported class members, pay the named plaintiff $5,000 and pay the law firms that brought the suit $200,000 in legal fees to be paid over 30 months, secured by a pledge of shares of the Company’s common stock
SND Auto Group Inc [Member]
Converted shares	2,700,000
Trading price description	The terms of the Note entitle the plaintiff to payment in cash or in shares of the maker (SND Auto Group, Inc.), at a discount of 65% of the lowest trading price of the preceding 30 trading days.
SND Auto Group Inc [Member] | Mammoth West Corporation [Member]
Owed amount				$ 7,280
SND Auto Group, Inc [Member ] | Southridge Partners II Limited [Member ]
Owed amount				$ 26,000
JP Carey Limited Partners [Member]
Shares issued upon settlement		28,000,000
First Capital Venture Co. [Member]
Return amount of lawsuit			$ 649,312

SUBSEQUENT EVENTS JUNE 30, 20_2

SUBSEQUENT EVENTS JUNE 30, 2020 (Details Narrative) - Subsequent Event [Member] - Note Holder [Member]	Jul. 08, 2020USD ($)shares
Debt conversion, converted shares, indebtedness owed | shares	24,000,000
Debt conversion, converted amount, indebtedness owed | $	$ 72,000

CERTAIN RELATIONSHIPS AND REL_2

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE", "RELATED PARTY TRANSACTIONS" (Details Narrative) - Kevin Hagen [Member]	12 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares
Due to related party | $	$ 1,626,589
Common stock warrants issued as compensation | shares	75,305,030
Warrants exercisable period	5 years
Exercisable price | $ / shares	$ 0.0216