Document and Entity Information
Document and Entity Information | 9 Months Ended |
Dec. 31, 2019 | |
Document And Entity Information | |
Entity Registrant Name | Investview, Inc. |
Entity Central Index Key | 0000862651 |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | The purpose of this Post-Effective Amendment No. 1 to the Registration Statement filed on February 21, 2020, Registration No. 333-236563, which was declared effective by the SEC on March 6, 2020, is to: (i) file an amendment to the Certificate of Designations, Preferences and Rights of 13% Series B Cumulative Redeemable Perpetual Preferred Stock, filed as Exhibit 10.55.1 hereto (the "Series B Amended Certificate of Designation"), specifically related to Sections 7 and 8 of the Series B Certificate of Designation, which has been consented to by the holders of two-thirds of the outstanding shares of Series B. Convertible Stock, which consent is filed as Exhibit 10.64 hereto; (ii) the change in a majority of the Board of Directors effective April 27, 2020 and the entry into a Securities Purchase Agreement with DBR Capital, LLC, dated April 27, 2020 and the related transaction documents (Reference is made to the registrant's Form 8-K and 8-K/A filed on April 30, 2020); and (iii) other revisions to the Registration Statement as a result of the foregoing. The information included in this filing amends this Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement. |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business Flag | true |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Current assets: | ||||
Cash and cash equivalents | $ 263,600 | $ 133,644 | $ 1,490,686 | |
Prepaid assets | 3,619,317 | 6,685,970 | 3,555 | |
Receivables | 623,203 | 724,995 | 472,557 | |
Short-term advances | 145,000 | 10,000 | 10,000 | |
Short-term advances - related party | 7,500 | 500 | 36,510 | |
Other current assets | 156,448 | 142,061 | 480,370 | |
Total current assets | 4,815,068 | 7,697,170 | 2,493,678 | |
Fixed assets, net | 3,864,341 | 13,528 | 18,860 | |
Other assets: | ||||
Intangible assets, net | 736,051 | 1,576,685 | ||
Long term license agreement, net | 1,869,905 | 1,983,220 | 2,133,620 | |
Operating lease right-of-use asset | 112,564 | |||
Deposits | 8,488 | 4,500 | 4,500 | |
Total other assets | 2,727,008 | 3,564,405 | 2,138,120 | |
Total assets | 11,406,417 | 11,275,103 | 4,650,658 | |
Current liabilities: | ||||
Accounts payable and accrued liabilities | 2,543,328 | 3,897,013 | 5,352,073 | |
Payroll liabilities | 23,575 | 888,177 | ||
Customer advance | 607,205 | 265,000 | ||
Deferred revenue | 731,578 | 1,876,727 | 863,740 | |
Derivative liability | 383,670 | 1,358,901 | ||
Operating lease liability, current | 59,064 | [1] | ||
Other current liabilities | 7,576,800 | |||
Related party payables, net of discounts | 1,646,893 | 545,489 | 1,880 | |
Debt, net of discounts | 2,181,578 | 1,977,030 | 195,245 | |
Total current liabilities | 15,753,691 | 9,920,160 | 6,412,938 | |
Operating lease liability, long term | 59,333 | |||
Other long term liabilities, net | 1,652,593 | |||
Total long term liabilities | 1,711,926 | |||
Total liabilities | 17,465,617 | 9,920,160 | 6,412,938 | |
Commitments and contingencies | ||||
Stockholders' equity (deficit): | ||||
Preferred stock, par value: $0.001; 10,000,000 shares authorized, none issued and outstanding as of December 31, 2019, March 31, 2019 and 2018 | ||||
Common stock, par value $0.001; 10,000,000,000 shares authorized; 3,003,490,408, 2,640,161,318 and 2,169,661,318 shares issued and outstanding as of December 31, 2019, March 31, 2019 and 2018 respectively | 3,003,490 | 2,640,161 | 2,169,661 | |
Additional paid in capital | 24,618,312 | 23,758,917 | 16,137,945 | |
Accumulated other comprehensive income (loss) | 3,430 | 1,363 | (2,483) | |
Accumulated deficit | (33,684,432) | (25,096,983) | (20,085,947) | |
Total Investview stockholders' equity (deficit) | (6,059,200) | 1,303,458 | (1,780,824) | |
Noncontrolling interest | 51,485 | 18,544 | ||
Total stockholders' equity (deficit) | 6,059,200 | 1,354,943 | (1,762,280) | |
Total liabilities and stockholders' equity (deficit) | $ 11,406,417 | $ 11,275,103 | $ 4,650,658 | |
[1] | Represents lease payments to be made in the next 12 months |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | |||
Preferred stock, shares outstanding | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 |
Common stock, shares outstanding | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||||||
Total revenue, net | $ 4,963,611 | $ 7,733,034 | $ 19,717,448 | $ 23,342,603 | $ 29,659,081 | $ 17,917,432 |
Operating costs and expenses: | ||||||
Cost of sales and service | 560,145 | 493,591 | 1,092,643 | 924,588 | 1,180,671 | 6,713,097 |
Commissions | 1,605,925 | 5,087,053 | 10,822,072 | 17,316,319 | 21,526,326 | 14,271,926 |
Selling and marketing | 575,199 | 109,265 | 1,389,666 | 634,671 | 878,936 | 454,225 |
Salary and related | 1,721,970 | 1,059,660 | 5,433,416 | 3,075,862 | 4,272,355 | 2,270,479 |
Professional fees | 474,287 | 284,586 | 1,130,070 | 1,355,182 | 1,620,370 | 2,572,831 |
General and administrative | 1,765,381 | 940,767 | 4,487,137 | 2,921,073 | 4,121,279 | 2,311,028 |
Total operating costs and expenses | 6,702,907 | 7,974,922 | 24,355,004 | 26,227,695 | 33,599,937 | 28,593,586 |
Net loss from operations | (1,739,296) | (241,888) | (4,637,556) | (2,885,092) | (3,940,856) | (10,676,154) |
Other income (expense): | ||||||
Gain (loss) on debt extinguishment | 443,907 | 1,725,384 | 19,387 | 19,387 | (2,767,422) | |
Gain (loss) on fair value of derivative liability | (94,622) | 504,635 | (214,376) | |||
Loss on spin-off of operations | (1,118,609) | |||||
Gain (loss) on bargain purchase | 2,005,282 | 971,282 | ||||
Gain (loss) on deconsolidation | 53,739 | |||||
Realized gain (loss) on cryptocurrency | 10 | (1,091) | (657) | 16,363 | 16,241 | (10,939) |
Unrealized gain (loss) on cryptocurrency | (16,885) | (116) | 8,445 | 95,810 | 106,488 | (135,729) |
Impairment expense | (627,452) | (627,452) | ||||
Interest expense | (1,427,433) | (206,007) | (3,918,070) | (210,154) | (1,842,461) | (74,976) |
Interest expense, related parties | (367,190) | (1,618,284) | (5,000) | (20,000) | (104,105) | |
Other income (expense) | 3,231 | (606) | (68,053) | (2,449) | (3,032) | (493) |
Total other income (expense) | (2,086,434) | (207,820) | (3,940,313) | 1,919,239 | (966,471) | (4,212,273) |
Income (loss) before income taxes | (3,825,730) | (449,708) | (8,577,869) | (965,853) | (4,907,327) | (14,888,427) |
Income tax expense | (2,198) | (2,655) | (9,580) | (44,844) | (70,768) | (24,589) |
Net income (loss) | (3,827,928) | (452,363) | (8,587,449) | (1,010,697) | (4,978,095) | (14,913,016) |
Less: net income (loss) attributable to the noncontrolling interest | 27,613 | (5,399) | 32,941 | |||
Net income (loss) attributable to Investview stockholders | $ (3,827,928) | $ (479,976) | $ (8,587,449) | $ (1,005,298) | $ (5,011,036) | $ (14,913,016) |
Income (loss) per common share, basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding, basic and diluted | 2,840,281,449 | 2,213,661,318 | 2,748,911,300 | 2,197,588,591 | 2,234,117,482 | 1,911,786,477 |
Other comprehensive income, net of tax: | ||||||
Foreign currency translation adjustments | $ 22,627 | $ 3,470 | $ 2,067 | $ 7,211 | $ 3,846 | |
Total other comprehensive income | 22,627 | 3,470 | 2,067 | 7,211 | 3,846 | |
Comprehensive income (loss) | (3,805,301) | (448,893) | (8,585,382) | (1,003,486) | (4,974,249) | (14,913,016) |
Less: comprehensive income attributable to the noncontrolling interest | (22,627) | (3,470) | (7,211) | (3,846) | ||
Comprehensive income (loss) attributable to Investview shareholders | (3,827,928) | (452,363) | (8,585,382) | (1,010,697) | (4,978,095) | (14,913,016) |
Subscription Revenue [Member] | ||||||
Revenue: | ||||||
Total revenue, net | 4,578,623 | 7,003,802 | 19,327,091 | 20,835,048 | 27,023,202 | 13,899,579 |
Equipment Sales [Member] | ||||||
Revenue: | ||||||
Total revenue, net | 694,954 | 694,954 | 694,954 | |||
Cryptocurrency Mining Revenue [Member] | ||||||
Revenue: | ||||||
Total revenue, net | 34,278 | 1,812,601 | $ 1,940,925 | $ 4,017,853 | ||
Mining Revenue [Member] | ||||||
Revenue: | ||||||
Total revenue, net | 380,871 | 380,871 | ||||
Fee Revenue [Member] | ||||||
Revenue: | ||||||
Total revenue, net | $ 4,117 | $ 9,486 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] | Total |
Balance at Mar. 31, 2017 | $ 125,890 | $ 805,637 | $ (8,589) | $ (5,154,387) | $ (4,231,449) | ||
Balance, shares at Mar. 31, 2017 | 125,889,455 | ||||||
Foreign currency translation adjustment | (2,483) | (2,483) | |||||
Common stock issued for cash | $ 267,128 | 2,228,260 | 2,495,388 | ||||
Common stock issued for cash, shares | 267,127,500 | ||||||
Common stock issued for license agreement | $ 80,000 | 2,176,000 | 2,256,000 | ||||
Common stock issued for license agreement, shares | 80,000,000 | ||||||
Common stock issued for services | $ 94,375 | 6,632,860 | 6,727,235 | ||||
Common stock issued for services, shares | 94,375,333 | ||||||
Common stock issued in settlement of debt | $ 239,576 | 5,377,558 | 5,617,134 | ||||
Common stock issued in settlement of debt, shares | 239,575,884 | ||||||
Wealth Generators reverse acquisition | $ 1,358,670 | (804,759) | 553,911 | ||||
Wealth Generators reverse acquisition, shares | 1,358,670,942 | ||||||
Offering costs | $ 4,273 | (269,273) | (265,000) | ||||
Offering costs, shares | 4,273,504 | ||||||
Common stock cancelled | $ (250) | 250 | |||||
Common stock cancelled, shares | (250,000) | ||||||
Cancellation of treasury stock | $ (1) | (8,588) | 8,589 | ||||
Cancellation of treasury stock, shares | (1,300) | ||||||
Net income (loss) | (14,931,560) | 18,544 | (14,913,016) | ||||
Balance at Mar. 31, 2018 | $ 2,169,661 | 16,137,945 | (2,483) | (20,085,947) | 18,544 | (1,762,280) | |
Balance, shares at Mar. 31, 2018 | 2,169,661,318 | ||||||
Foreign currency translation adjustment | 3,618 | 3,618 | |||||
Net income (loss) | (1,375,113) | (16,224) | (1,391,337) | ||||
Balance at Jun. 30, 2018 | $ 2,169,661 | 16,137,945 | 1,135 | (21,461,060) | 2,320 | (3,149,999) | |
Balance, shares at Jun. 30, 2018 | 2,169,661,318 | ||||||
Balance at Mar. 31, 2018 | $ 2,169,661 | 16,137,945 | (2,483) | (20,085,947) | 18,544 | (1,762,280) | |
Balance, shares at Mar. 31, 2018 | 2,169,661,318 | ||||||
Net income (loss) | (1,010,697) | ||||||
Balance at Dec. 31, 2018 | $ 2,213,661 | 17,112,945 | 4,728 | (21,091,245) | 13,145 | (1,746,766) | |
Balance, shares at Dec. 31, 2018 | 2,213,661,318 | ||||||
Balance at Mar. 31, 2018 | $ 2,169,661 | 16,137,945 | (2,483) | (20,085,947) | 18,544 | (1,762,280) | |
Balance, shares at Mar. 31, 2018 | 2,169,661,318 | ||||||
Foreign currency translation adjustment | 3,846 | 3,846 | |||||
Common stock issued for acquisition | $ 50,000 | 750,000 | 800,000 | ||||
Common stock issued for acquisition, shares | 50,000,000 | ||||||
Common stock issued for services and compensation | $ 402,000 | 6,385,600 | 6,787,600 | ||||
Common stock issued for services and compensation, shares | 402,000,000 | ||||||
Common stock repurchase | $ (7,000) | (84,000) | (91,000) | ||||
Common stock repurchase, shares | (7,000,000) | ||||||
Common stock issued as commitment fees | $ 22,500 | 47,372 | 69,872 | ||||
Common stock issued as commitment fees, shares | 22,500,000 | ||||||
Offering costs | $ 3,000 | 522,000 | 525,000 | ||||
Offering costs, shares | 3,000,000 | ||||||
Net income (loss) | (5,011,036) | 32,941 | (4,978,095) | ||||
Balance at Mar. 31, 2019 | $ 2,640,161 | 23,758,917 | 1,363 | (25,096,983) | 51,485 | 1,354,943 | |
Balance, shares at Mar. 31, 2019 | 2,640,161,318 | ||||||
Balance at Jun. 30, 2018 | $ 2,169,661 | 16,137,945 | 1,135 | (21,461,060) | 2,320 | (3,149,999) | |
Balance, shares at Jun. 30, 2018 | 2,169,661,318 | ||||||
Foreign currency translation adjustment | 123 | 123 | |||||
Common stock issued for acquisition | $ 50,000 | 1,050,000 | 1,100,000 | ||||
Common stock issued for acquisition, shares | 50,000,000 | ||||||
Common stock issued for services and compensation | $ 1,000 | 9,000 | 10,000 | ||||
Common stock issued for services and compensation, shares | 1,000,000 | ||||||
Common stock repurchase | $ (7,000) | (84,000) | (91,000) | ||||
Common stock repurchase, shares | (7,000,000) | ||||||
Net income (loss) | 849,791 | (16,788) | 833,003 | ||||
Balance at Sep. 30, 2018 | $ 2,213,661 | 17,112,945 | 1,258 | (20,611,269) | (14,468) | (1,297,873) | |
Balance, shares at Sep. 30, 2018 | 2,213,661,318 | ||||||
Foreign currency translation adjustment | 3,470 | 3,470 | |||||
Net income (loss) | (479,976) | 27,613 | (452,363) | ||||
Balance at Dec. 31, 2018 | $ 2,213,661 | 17,112,945 | 4,728 | (21,091,245) | 13,145 | (1,746,766) | |
Balance, shares at Dec. 31, 2018 | 2,213,661,318 | ||||||
Balance at Mar. 31, 2019 | $ 2,640,161 | 23,758,917 | 1,363 | (25,096,983) | 51,485 | 1,354,943 | |
Balance, shares at Mar. 31, 2019 | 2,640,161,318 | ||||||
Foreign currency translation adjustment | (18,975) | (18,975) | |||||
Common stock issued for cash | $ 39,216 | 285,784 | 325,000 | ||||
Common stock issued for cash, shares | 39,215,648 | ||||||
Offering costs | 101,387 | 101,387 | |||||
Deconsolidation of Kuvera LATAM | (51,485) | (51,485) | |||||
Net income (loss) | (3,005,955) | (3,005,955) | |||||
Balance at Jun. 30, 2019 | $ 2,679,377 | 24,146,088 | (17,612) | (28,102,938) | (1,295,085) | ||
Balance, shares at Jun. 30, 2019 | 2,679,376,966 | ||||||
Balance at Mar. 31, 2019 | $ 2,640,161 | 23,758,917 | 1,363 | (25,096,983) | 51,485 | 1,354,943 | |
Balance, shares at Mar. 31, 2019 | 2,640,161,318 | ||||||
Common stock issued for cash | $ 825,000 | ||||||
Common stock issued for cash, shares | 59,215,648 | ||||||
Common stock issued for services | $ 3,865,500 | ||||||
Common stock issued for services, shares | 241,000,000 | ||||||
Net income (loss) | $ (8,587,449) | ||||||
Balance at Dec. 31, 2019 | $ 3,003,490 | 24,618,312 | 3,430 | (33,684,432) | 6,059,200 | ||
Balance, shares at Dec. 31, 2019 | 3,003,490,408 | ||||||
Balance at Jun. 30, 2019 | $ 2,679,377 | 24,146,088 | (17,612) | (28,102,938) | (1,295,085) | ||
Balance, shares at Jun. 30, 2019 | 2,679,376,966 | ||||||
Foreign currency translation adjustment | (1,585) | (1,585) | |||||
Common stock issued for services and compensation | $ 241,000 | 1,274,915 | 1,515,915 | ||||
Common stock issued for services and compensation, shares | 241,000,000 | ||||||
Common stock repurchase | $ (5) | (97) | (102) | ||||
Common stock repurchase, shares | (5,150) | ||||||
Common stock issued for cash | $ 13,000 | 312,000 | 325,000 | ||||
Common stock issued for cash, shares | 13,000,000 | ||||||
Common stock cancelled | $ (222,500) | (3,157,500) | (3,380,000) | ||||
Common stock cancelled, shares | (222,500,000) | ||||||
Beneficial conversion feature | 1,000,000 | 1,000,000 | |||||
Net income (loss) | (1,753,566) | (1,753,566) | |||||
Balance at Sep. 30, 2019 | $ 2,710,872 | 23,575,406 | (19,197) | (29,856,504) | (3,589,423) | ||
Balance, shares at Sep. 30, 2019 | 2,710,871,816 | ||||||
Foreign currency translation adjustment | 22,627 | 22,627 | |||||
Common stock issued for services and compensation | $ 285,618 | 874,906 | 1,160,524 | ||||
Common stock issued for services and compensation, shares | 285,618,592 | ||||||
Common stock issued for cash | $ 7,000 | 168,000 | 175,000 | ||||
Common stock issued for cash, shares | 7,000,000 | ||||||
Net income (loss) | (3,827,928) | (3,827,928) | |||||
Balance at Dec. 31, 2019 | $ 3,003,490 | $ 24,618,312 | $ 3,430 | $ (33,684,432) | $ 6,059,200 | ||
Balance, shares at Dec. 31, 2019 | 3,003,490,408 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | $ (8,587,449) | $ (1,010,697) | $ (4,978,095) | $ (14,913,016) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation | 320,528 | 4,126 | 5,332 | 2,639 |
Amortization of debt discount | 2,916,917 | 161,154 | 1,052,523 | |
Amortization of long-term license agreement | 113,315 | 113,315 | 150,400 | |
Amortization of intangible assets | 213,182 | 256,509 | 239,315 | |
Stock issued for services and compensation | 2,676,439 | 8,333 | 109,240 | 6,846,059 |
Loan fees on new borrowings | 841,139 | 704,397 | ||
Loss on spin-off of operations | 1,118,609 | |||
Lease cost, net of repayment | 5,833 | |||
Impairment | 627,452 | |||
(Gain) loss on bargain purchase | (2,005,282) | (971,282) | ||
(Gain) loss on deconsolidation | (53,739) | |||
(Gain) loss on debt extinguishment | (1,725,384) | (19,387) | (19,387) | 2,767,422 |
(Gain) loss on fair value of derivative liability | (504,635) | 214,376 | ||
Realized (gain) loss on cryptocurrency | 657 | (16,363) | (16,241) | 10,939 |
Unrealized (gain) loss on cryptocurrency | (8,445) | (95,810) | (106,488) | 135,729 |
Changes in operating assets and liabilities: | ||||
Receivables | 101,792 | 316,455 | 108,907 | 122,053 |
Prepaid assets | (313,347) | (4,762) | (4,055) | |
Short-term advances | (135,000) | |||
Short-term advances from related parties | (7,000) | 36,010 | 36,010 | (36,510) |
Other current assets | 40,170 | 585,158 | 461,038 | (627,038) |
Deposits | (3,988) | (11,603) | 1,500 | |
Accounts payable and accrued liabilities | (284,836) | (1,375,229) | (1,314,971) | 2,924,522 |
Payroll liabilities | (864,602) | |||
Customer advance | 342,205 | 265,000 | 265,000 | |
Deferred revenue | (1,145,149) | 181,255 | 1,016,385 | 422,369 |
Other liabilities | 9,229,393 | |||
Accrued interest | 180,026 | 26,000 | 59,345 | 74,953 |
Accrued interest, related parties | 714,999 | 5,000 | 5,000 | 104,105 |
Net cash provided by (used in) operating activities | 4,690,473 | (2,580,818) | (2,983,251) | (1,045,665) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Cash received in acquisition | 3,740 | 3,740 | 3,550 | |
Cash paid for fixed assets | (4,171,341) | (11,264) | ||
Net cash provided by (used in) investing activities | (4,171,341) | 3,740 | 3,740 | (7,714) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from related parties | 2,164,500 | 1,480,777 | 1,905,777 | 498,380 |
Repayments for related party payables | (1,754,500) | (996,169) | (1,367,168) | (1,316,500) |
Proceeds from debt | 2,177,452 | 1,955,000 | 4,115,961 | 1,675,000 |
Repayments for debt | (3,801,562) | (1,164,396) | (2,936,044) | (1,424,578) |
Payments for share repurchase | (102) | (91,000) | (91,000) | |
Proceeds from the sale of stock | 825,000 | 3,121,776 | ||
Payments for offering costs | (15,000) | |||
Net cash provided by (used in) financing activities | (389,212) | 1,184,212 | 1,627,526 | 2,539,078 |
Effect of exchange rate translation on cash | 36 | (4,251) | (5,057) | 3,371 |
Net increase (decrease) in cash and cash equivalents | 129,956 | (1,397,117) | (1,357,042) | 1,489,070 |
Cash and cash equivalents-beginning of period | 133,644 | 1,490,686 | 1,490,686 | 1,616 |
Cash and cash equivalents-end of period | 263,600 | 93,569 | 133,644 | 1,490,686 |
Cash paid during the period for: | ||||
Interest | 51,000 | 51,000 | 117,500 | |
Income taxes | 9,580 | 44,844 | 70,768 | 24,589 |
Non cash investing and financing activities: | ||||
Common stock issued for acquisition | 1,100,000 | 800,000 | 662,048 | |
Common stock issued in settlement of related party payables | 90,000 | |||
Common stock issued in settlement of debt | 2,232,606 | |||
Common stock issued for prepaid services and long term license agreement | 6,678,360 | 2,137,175 | ||
Beneficial conversion feature | 1,000,000 | |||
Stock issued for prepaid services | 1,667 | |||
Cancellation of shares | 3,380,000 | 250 | ||
Cancellation of treasury shares | 8,589 | |||
Changes in equity for offering costs accrued | 101,387 | 525,000 | ||
Liability for offering costs | 250,000 | |||
Shares issued for offering costs | 3,000 | 4,274 | ||
Price protection guarantee | 626,388 | |||
Accounts payable reclassified to related party debt | 75,000 | |||
Derivative liability recorded as a debt discount | 365,000 | $ 510,000 | ||
Recognition of lease liability and ROU asset at lease commencement | $ 131,244 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Nature of Business | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS Organization Investview, Inc. was incorporated on January 30, 1946, under the laws of the state of Utah as the Uintah Mountain Copper Mining Company. In January 2005 the Company changed domicile to Nevada, and changed its name to Voxpath Holding, Inc. In September of 2006 the Company merged The Retirement Solution Inc. through a Share Purchase Agreement into Voxpath Holdings, Inc. and then changed its name to TheRetirementSolution.Com, Inc. In October 2008 the Company changed its name to Global Investor Services, Inc., before changing its name to Investview, Inc., on March 27, 2012. On March 31, 2017, we entered into a Contribution Agreement with the members of Wealth Generators, LLC, a limited liability company (“Wealth Generators”), pursuant to which the Wealth Generators members agreed to contribute 100% of the outstanding securities of Wealth Generators in exchange for an aggregate of 1,358,670,942 shares of our common stock. The closing of the Contribution Agreement was effective April 1, 2017, and Wealth Generators became our wholly owned subsidiary and the former members of Wealth Generators became our stockholders and control the majority of our outstanding common stock. On June 6, 2017, we entered into an Acquisition Agreement with Market Trend Strategies, LLC, a company whose members are also former members of our management. Under the Acquisition Agreement, we spun-off our operations that existed prior to the merger with Wealth Generators and sold the intangible assets used in those pre-merger operations in exchange for Market Trend Strategies’ assumption of $419,139 in pre-merger liabilities. On February 28, 2018, we filed a name change for Wealth Generators, LLC to Kuvera, LLC (“Kuvera”) and on May 7, 2018 we established WealthGen Global, LLC as a Utah limited liability company and a wholly owned subsidiary of Investview, Inc. On July 20, 2018, we entered into a Purchase Agreement with United Games Marketing LLC, a Utah limited liability company, to purchase its wholly owned subsidiaries United Games, LLC and United League, LLC for 50,000,000 shares of our common stock. On November 12, 2018, we established Kuvera France, S.A.S. to handle sales of our financial education and research in the European Union. On December 30, 2018, our wholly owned subsidiary S.A.F.E. Management, LLC received its registration and disclosure approval from the National Futures Association. S.A.F.E. Management, LLC is now a New Jersey State Registered Investment Adviser, Commodities Trading Advisor, Commodity Pool Operator, and approved for over the counter FOREX advisory services. On January 17, 2019 we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SafeTek, LLC, a Utah Limited Liability Company. Effective July 22, 2019 we renamed our non-operating wholly owned subsidiary Razor Data, LLC to APEX Tek, LLC, a Utah Limited Liability Company. Nature of Business Investview owns a number of companies that each operate independently but are accretive to one another. Investview is establishing a portfolio of wholly owned subsidiaries delivering leading edge technologies, services and research, dedicated primarily to the individual consumer. Following is a description of each of our companies. Kuvera, LLC Kuvera France S.A.S. S.A.F.E. Management, LLC United League, LLC United Games, LLC SAFETek, LLC Apex Tek, LLC Investment Tools & Training, LLC | NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS Organization Investview, Inc. was incorporated on January 30, 1946, under the laws of the state of Utah as the Uintah Mountain Copper Mining Company. In January 2005, we changed domicile to Nevada and changed our name to Voxpath Holding, Inc. In September of 2006, we merged The Retirement Solution Inc. through a Share Purchase Agreement into Voxpath Holdings, Inc. and then changed our name to TheRetirementSolution.Com, Inc. and in October 2008 changed our name to Global Investor Services, Inc., before changing our name to Investview, Inc., on March 27, 2012. On March 31, 2017, we entered into a Contribution Agreement with the members of Wealth Generators, LLC, a limited liability company (“Wealth Generators”), pursuant to which the Wealth Generators members agreed to contribute 100% of the outstanding securities of Wealth Generators in exchange for an aggregate of 1,358,670,942 shares of our common stock. The closing of the Contribution Agreement was effective April 1, 2017, and Wealth Generators became our wholly owned subsidiary and the former members of Wealth Generators became our stockholders and control the majority of our outstanding common stock (see Note 5). On June 6, 2017, we entered into an Acquisition Agreement with Market Trend Strategies, LLC, a company whose members are also former members of our management. Under the Acquisition Agreement, we spun-off our operations that existed prior to the merger with Wealth Generators and sold the intangible assets used in those pre-merger operations in exchange for Market Trend Strategies’ assumption of $419,139 in pre-merger liabilities. On February 28, 2018, we filed a name change for Wealth Generators, LLC to Kuvera, LLC (“Kuvera”) and on May 7, 2018, we established WealthGen Global, LLC as a Utah limited liability company and our wholly owned subsidiary. On July 20, 2018, we entered into a Purchase Agreement with United Games Marketing LLC, a Utah limited liability company, to purchase its wholly owned subsidiaries United Games, LLC and United League, LLC for 50,000,000 shares of our common stock (see Note 5). On November 12, 2018, we established Kuvera France, S.A.S. to handle sales of our financial education and research in the European Union. On December 30, 2018, our wholly owned subsidiary S.A.F.E. Management, LLC received its registration and disclosure approval from the National Futures Association. S.A.F.E. Management, LLC is now a New Jersey State Registered Investment Adviser, Commodities Trading Advisor, Commodity Pool Operator, and approved for over the counter FOREX advisory services. On January 17, 2019, we renamed our non-operating wholly owned subsidiary WealthGen Global, LLC to SafeTek, LLC, a Utah limited liability company. Nature of Business We own a number of companies that each operate independently, but are accretive to one another. We are establishing a portfolio of wholly owned subsidiaries delivering leading-edge technologies, services, and research, dedicated primarily to the individual consumer. Following is a description of each of our companies. Kuvera, LLC Kuvera France S.A.S. S.A.F.E. Management, LLC United League, LLC United Games, LLC SAFETek, LLC Investment Tools & Training, LLC Razor Data Corp. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended December 31, 2019, are not necessarily indicative of the operating results that may be expected for the year ending March 31, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the March 31, 2019 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2019. Principles of Consolidation The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Apex Tek, LLC (formerly Razor Data, LLC), S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. Through March 31, 2019 we had determined that one affiliated entity, Kuvera LATAM S.A.S., which we previously conducted business with, was a variable interest entity and we were the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, through March 31, 2019 we had consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because the Company did not have any ownership interest in this variable interest entity, the Company had allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. As of April 1, 2019 Kuvera LATAM S.A.S. had no operations and ceased to exist, therefore, as of that date, no consolidation of the entity is necessary and we recorded a gain on deconsolidation of $53,739 to eliminate the intercompany account with Kuvera LATAM S.A.S. All intercompany transactions and balances have been eliminated in consolidation. Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications. Use of Estimates The preparation of these unaudited condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Foreign Exchange We have consolidated the accounts of Kuvera France S.A.S. into our consolidated financial statements and have consolidated the accounts of Kuvera LATAM S.A.S. through March 31, 2019. The operations of Kuvera France S.A.S. are conducted in France and its functional currency is the Euro. The operations of Kuvera LATAM S.A.S. were conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency and have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Stockholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit). The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates. December 31, 2019 March 31, 2019 Euro to USD 1.12165 1.12200 Colombian Peso to USD n/a 0.00031 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods. Nine Months Ended December 31, 2019 2018 Euro to USD 1.11443 n/a Colombian Peso to USD n/a 0.00034 Cryptocurrencies We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of December 31, 2019 and March 31, 2019 the fair value of our cryptocurrencies was $156,448 and $142,061, respectively. During the nine months ended December 31, 2019 we recorded $(657) and $8,445 as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the nine months ended December 31, 2018 we recorded $16,363 and $95,810 as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the three months ended December 31, 2019 we recorded $10 and $(16,885) as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the three months ended December 31, 2018 we recorded $10 and $(16,885) as a total realized and unrealized gain (loss) on cryptocurrency, respectively. Fixed Assets Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred. As of December 31, 2019 fixed assets were made up of the following: Estimated Useful Life (years) Value Furniture, fixtures, and equipment 10 $ 11,372 Computer equipment 3 19,533 Data processing equipment 3 4,166,470 4,197,375 Accumulated amortization as of December 31, 2019 (333,034 ) Net book value, December 31, 2019 $ 3,864,341 Total depreciation expense for the nine months ended December 31, 2019 and 2018, was $320,528 and $4,126, respectively. Long-Lived Assets – Intangible Assets & License Agreement We account for our intangible assets and long-term license agreement in accordance with ASC Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the nine months ended December 31, 2019 and 2018 was $113,315 and $113,315, respectively, and the long-term license agreement was recorded at a net value of $1,869,905 and $1,983,220 as of December 31, 2019 and March 31, 2019, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. During the nine months ended December 31, 2019 we impaired the value of the customer contracts/relationships originally acquired. Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships n/a - 991,000 Accumulated amortization as of December 31, 2019 (254,949 ) Net book value, December 31, 2019 $ 736,051 Amortization expense is expected to be as follows: Remainder of 2020 $ 43,169 Fiscal year ending March 31, 2021 173,150 Fiscal year ending March 31, 2022 173,150 Fiscal year ending March 31, 2023 115,338 Fiscal year ending March 31, 2024 55,748 Fiscal year ending March 31, 2025 and beyond 175,496 $ 736,051 Impairment of Long-Lived Assets We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. During the nine months ended December 31, 2019 and 2018 impairment of $627,452 and $0 was recognized, respectively. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: - quoted prices for similar assets or liabilities in active markets; - quoted prices for identical or similar assets or liabilities in markets that are not active; - inputs other than quoted prices that are observable for the asset or liability; and - inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of December 31, 2019 and March 31, 2019, approximates the fair value due to their short-term nature. Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 156,448 $ - $ - $ 156,448 Total Assets $ 156,448 $ - $ - $ 156,448 Derivative liability $ - $ - $ 383,670 $ 383,670 Total Liabilities $ - $ - $ 383,670 $ 383,670 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ - $ 1,358,901 $ 1,358,901 Total Liabilities $ - $ - $ 1,358,901 $ 1,358,901 Sale and Leaseback Through our wholly-owned subsidiary, APEX Tex, LLC, we sell high powered data processing equipment (“APEX”) to our customers and they lease the equipment back to SAFETek, LLC, another of our wholly-owned subsidiaries. We account for these transactions under ASC 842-40 where the leaseback has been deemed a sales-type lease due to the lease term generally covering the entire economic life of the equipment and our likelihood to purchase the asset at the end of the lease term. In accordance with ASC 842-40 we have recorded the data processing equipment as a fixed asset on our balance sheet and we have accounted for the amounts received for the equipment as a financial liability, in other liabilities on our balance sheet. Further, we will recognize interest on the financial liability over the term of the lease to ensure the financial liability equates to the total amounts to be paid over the life of the lease. During the nine months ended December 31, 2019 we had the following activity related to our sale and leaseback transactions: Proceeds from sales of APEX $ 9,693,141 Interest recognized on financial liability 877,352 Payments made for leased equipment (1,341,100 ) Total financial liability 9,229,393 Other current liabilities [1] (7,576,800 ) Other long-term liabilities $ 1,652,593 [1] Represents lease payments to be made in the next 12 months As of December 31, 2019, we have received proceeds of $607,205 in additional deposits for APEX sales, which has been recorded in the customer advance amount shown on our balance sheet. Revenue Recognition Subscription Revenue The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period, therefore we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 10-day trial period to subscription customers, during which a full refund can be requested if a customer does not like the product. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. Equipment Sales We generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing activities: protein folding, CGI rendering, Game Streaming, Machine & Deep Learning, Mining, Independent Financial Verification, and general high-speed computing. We recognize equipment sales revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver an equipment package to our customers which includes hardware, software, and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a separate third party that provides such services. Cryptocurrency Mining Service Revenue We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. We recognize cryptocurrency mining service revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. Mining Revenue Through our wholly owned subsidiary, SAFETek, LLC, we lease equipment under a sales-type lease and use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for mining we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute our ongoing major and central operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities. Fee Revenue We generate fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. Revenue generated for the nine months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,214,747 $ - $ - $ 380,871 $ 9,486 $ 21,605,104 Refunds, incentives, credits, and chargebacks (1,887,656 ) - - - - (1,887,656 ) Amounts paid to supplier - - - - - - Net revenue $ 19,327,091 $ - $ - $ 380,871 $ 9,486 $ 19,717,448 Revenue generated for the nine months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,882,005 $ 698,954 $ 5,690,380 $ - $ - $ 28,271,389 Refunds, incentives, credits, and chargebacks (1,047,007 ) (4,000 ) (6,501 ) - - (1,057,508 ) Amounts paid to supplier - - (3,871,278 ) - - (3,871,278 Net revenue $ 20,835,048 $ 694,954 $ 1,812,601 $ - $ - $ 23,342,603 Revenue generated for the three months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 5,096,886 $ - $ - $ 380,871 $ 4,117 $ 5,481,874 Refunds, incentives, credits, and chargebacks (518,263 ) - - - - (518,263 ) Amounts paid to supplier - - - - - - Net revenue $ 4,578,623 $ - $ - $ 380,871 $ 4,117 $ 4,963,611 Revenue generated for the three months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 7,204,415 $ 698,954 $ 40,779 $ - $ - $ 7,944,148 Refunds, incentives, credits, and chargebacks (200,613 ) (4,000 ) (6,501 ) - - (211,114 ) Amounts paid to supplier - - - - - - Net revenue $ 7,003,802 $ 694,954 $ 34,278 $ - $ - $ 7,773,034 Net Income (Loss) per Share We follow ASC subtopic 260-10, Earnings per Share (“ASC 260-10”), which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: December 31, December 31, Options to purchase common stock - 35,000 Warrants to purchase common stock 125,000 6,052,497 Notes convertible into common stock 11,080,447 - Totals 11,205,447 6,087,497 Lease Obligation We determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account, the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical expedient and will not separate non-lease components from lease components and will instead account for | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Principles of Consolidation The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Razor Data Corp., S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. We have determined that one affiliated entity, Kuvera LATAM S.A.S., which we conduct business with, is a variable interest entity and we are the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, we have consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because we do not have any ownership interest in this variable interest entity, we have allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Foreign Exchange We have consolidated the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into our consolidated financial statements. The operations of Kuvera France S.A.S. are conducted in France and its functional currency is the Euro. The operations of Kuvera LATAM S.A.S. are conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency and have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Stockholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit). The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates: March 31, March 31, Euro to USD 1.12200 n/a Colombian Peso to USD 0.00031 0.00036 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods: Year ended March 31, 2019 2018 Euro to USD 1.13580 n/a Colombian Peso to USD 0.00033 0.00034 Concentration of Credit Risk Financial instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place our cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit of $250,000. As of March 31, 2019 and 2018, cash balances that exceeded FDIC limits were $0 and $1,095,329, respectively, and we have not experienced significant losses relating to these concentrations in the past. Cash and Cash Equivalents For purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of March 31, 2019 and 2018, we had no cash equivalents. Receivables Receivables are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. We had no allowance for doubtful accounts as of March 31, 2019 and 2018. Cryptocurrencies We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of March 31, 2019 and March 31, 2018, the fair value of our cryptocurrencies was $142,061 and $480,370, respectively. During the year ended March 31, 2019, we recorded $16,241 and $106,488 as realized and unrealized gain (loss) on cryptocurrency, respectively. During the year ended March 31, 2018, we recorded $(10,939) and $(135,729) as realized and unrealized gain (loss) on cryptocurrency, respectively. Fixed Assets Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Furniture, fixtures, and equipment 10 years Computer equipment 3 years When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred. Fixed assets are presented net of accumulated depreciation of $12,505 and $7,173, as of March 31, 2019 and 2018, respectively. Total depreciation expense for the years ended March 31, 2019 and 2018, was $5,332 and $2,639, respectively. Long-Lived Assets – Intangible Assets & License Agreement We account for our intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the year ended March 31, 2019 and 2018, was $150,400 and $122,380, respectively, and the long-term license agreement was recorded at a net value of $1,983,220 and $2,133,620 as of March 31, 2019 and 2018, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination (see Note 5). Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 825,000 1,816,000 Accumulated amortization as of March 31, 2019 (239,315 ) Net book value, March 31, 2019 $ 1,576,685 Amortization expense is expected to be as follows: Fiscal year ending March 31, 2020 $ 338,150 Fiscal year ending March 31, 2021 338,150 Fiscal year ending March 31, 2022 338,150 Fiscal year ending March 31, 2023 280,565 Fiscal year ending March 31, 2024 and beyond 281,670 $ 1,576,685 Impairment of Long-Lived Assets We have adopted ASC Subtopic 360-10, Property, Plant and Equipment. ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by us be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: - quoted prices for similar assets or liabilities in active markets; - quoted prices for identical or similar assets or liabilities in markets that are not active; - inputs other than quoted prices that are observable for the asset or liability; and - inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, and accounts payable. We have determined that the book value of our outstanding financial instruments as of March 31, 2019 and March 31, 2018, approximates the fair value due to their short-term nature. Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ 1,358,901 $ - $ 1,358,901 Total Liabilities $ - $ 1,358,901 $ - $ 1,358,901 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - Revenue Recognition Effective April 1, 2018, we adopted the ASC Subtopic 606-10, Revenue from Contracts with Customers. The adoption of ASC 606-10 had no impact on prior year or previously disclosed amounts. In accordance with ASC 606-10, revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 10-day trial period to subscription customers, during which a full refund can be requested if a customer does not like the product. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. We generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing activities: protein folding, CGI rendering, game streaming, machine & deep learning, mining, independent financial verification, and general high-speed computing. Our performance obligation is to deliver an equipment package to our customers that includes hardware, software, and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a separate third party that provides such services. Revenue generated for the year ended March 31, 2019, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 28,518,660 $ 698,954 $ 5,775,269 $ 34,992,883 Refunds, incentives, credits, and chargebacks (1,495,458 ) (4,000 ) (6,501 ) (1,505,959 ) Amounts paid to supplier - - (3,827,843 ) (3,827,843 ) Net revenue $ 27,023,202 $ 694,954 $ 1,940,925 $ 29,659,081 Revenue generated for the year ended March 31, 2018, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 14,758,614 $ - $ 8,885,798 $ 23,644,412 Refunds, incentives, credits, and chargebacks (859,035 ) - - (859,035 ) Amounts paid to supplier - - (4,867,945 ) (4,867,945 ) Net revenue $ 13,899,579 $ - $ 4,017,853 $ 17,917,432 Advertising, Selling, and Marketing Costs We expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting our product worldwide, including promotional events. Advertising, selling, and marketing expenses for the years ended March 31, 2019 and 2018, totaled $878,936 and $454,225, respectively. Income Taxes We have adopted ASC Subtopic 740-10, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes consist primarily of derivative liability and stock compensation accounting versus basis differences. Net Income (Loss) per Share We follow ASC Subtopic 260-10, Earnings per Share, which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: March 31, 2019 March 31, 2018 Convertible notes payable - - Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 5,052,497 6,169,497 Notes convertible into common stock 52,162,055 - Total 57,249,552 6,204,497 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS There are no recently issued accounting pronouncements that the Company has not yet adopted that they believe are applicable or would have a material impact on the financial statements of the Company. | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842)”. There are no additional recently issued accounting pronouncements that we have not yet adopted that we believe are applicable or would have a material impact on our financial statements. |
Going Concern and Liquidity
Going Concern and Liquidity | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Going Concern and Liquidity | NOTE 4 – GOING CONCERN AND LIQUIDITY Our financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. We have incurred significant recurring losses, which have resulted in an accumulated deficit of $33,684,432 as of December 31, 2019, along with a net loss of $8,587,449 for the nine months ended December 31, 2019. Additionally, as of December 31, 2019, we had cash of $263,600 and a working capital deficit of $10,938,623. These factors raise substantial doubt about our ability to continue as a going concern. Historically we have relied on increasing revenues and new debt and equity financing to pay for operational expenses and debt as it came due. During the nine months ended December 31, 2019, we raised $2,177,452 in cash proceeds from new debt arrangements, raised $2,164,500 in cash proceeds from related parties, and received $825,000 from the sale of our common stock. Additionally, net cash provided by operations was $4,690,473 for the nine months ended December 31, 2019. Since our acquisition of Wealth Generators in April of 2017 we have implemented a number of initiatives and we are beginning to see the positive impact of these actions. First, our largest subsidiary, Kuvera, has a bonus plan structure for distributors of our services which consistently paid out beyond our maximum threshold. Adjustments to this bonus plan have been made over the last 12 months. This resulted in a gradual reduction in bonus payouts which reduced our losses. Second, we expanded the objectives of Investview through the acquisition and creation of additional subsidiaries to increase our sources of income and creating business activities in new sectors which includes: ● Fully licensing SAFE Management LLC as a Registered Investment Advisor and Commodities Trading Advisor. This was done so SAFE Management could offer fully managed trading services to individuals who lacked the time to trade for themselves and provide reasonable advisory fees and minimum investment amounts to service individuals who do not meet the requirements of Qualified Investors. ● We acquired the assets of United Games LLC and United League LLC which provided us highly experienced management, programmers, marketing and compliance personnel along with key technology components such as a fully coded back office and trademarked FIREFAN app. We are still in the process of adapting their technology to Kuvera operations and working on various distribution plans for FIREFAN. ● We changed the name of our subsidiary WealthGen Global, which was an unused entity, to SAFETek LLC in preparation for our entry into the high-performance computing space to meet the needs of 4IR (Fourth Industrial Revolution) business needs which includes mining, blockchain technologies, gaming, artificial intelligence and 3-Dimensional rendering. This will enable us to provide HPC services to small, medium and startup entities who require specialized high-speed processing but cannot afford the infrastructure. By leasing our processing to these companies, we will aid these entities in bringing their products, inventions, improvements to market. ● We have designed a program known as APEX which enables individuals to purchase highly customized data processing equipment which SAFETek will lease from the purchasers for a fixed period of time at a fixed monthly lease payment. This enables individuals to participate in emerging growth without experiencing the volatility and potential loss experienced in the sector. ● We have renamed our subsidiary Razor Data LLC to APEX Tek LLC. APEX Tek will be solely responsible for the sales and marketing of the APEX Package. These companies provide Investview a stake in 4IR, HPC, app development, fintech, blockchain and personal money management sectors. Each of these are areas that are targeted for significant growth spurred by innovations through technology. While our liabilities are larger than our assets it is important to note that we seek to keep operating expenses low. The assets we have acquired and will continue to seek out are those of technology, mobile apps, and human resources. These assets are not easily defined on our balance sheet but represent our ability to carry out our objectives which we believe will ultimately generating positive cash flow, reduced debt and then profitability. Further, while we have reported reoccurring losses and have an operating capital deficiency, we have been able to establish multiple companies to create various revenue streams as we move forward. Our largest challenge is operational cash flow as lending arrangements continue to be expensive causing us to deploy incoming cash to prior debt. We continue to seek short term capital in arrangements that are partnership-based with elements of debt and equity combined. Additionally, our immediate focus is the continued reduction in losses by controlling expenses, increasing revenue, and generating additional revenue streams. Accordingly, the accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate our continuation as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. | NOTE 4 – GOING CONCERN AND LIQUIDITY Our financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. We have incurred significant recurring losses, which have resulted in an accumulated deficit of $25,096,983 as of March 31, 2019, along with a net loss of $5,011,036 and net cash used in operations of $2,983,251 for the year ended March 31, 2019. Additionally, as of March 31, 2019, we had a working capital deficit of $2,222,990. These factors raise substantial doubt about our ability to continue as a going concern. Historically we have relied on increasing revenues and new debt financing to pay for operational expenses and debt as it came due. During the year ended March 31, 2019, we raised $1,905,777 in cash proceeds from related parties and $4,115,961 in cash proceeds from new lending arrangements. Subsequent to March 31, 2019, we obtained $200,000 in cash proceeds from new lending arrangements and received $325,000 from the sale of our common stock. Since our acquisition of Wealth Generators in April of 2017 we have implemented a number of initiatives and we are beginning to see the positive impact of these actions. First, our largest subsidiary, Kuvera, has a bonus plan structure for distributors of our services which consistently paid out beyond our maximum threshold. Adjustments to this bonus plan have been made over the last 12 months with additional adjustments planned for the next two quarters. This resulted in a gradual reduction in bonus payouts which reduced our losses. Second, we expanded the objectives of Investview through the acquisition and creation of additional subsidiaries to increase our sources of income and creating business activities in new sectors which includes: ● Fully licensing SAFE Management LLC as a Registered Investment Advisor and Commodities Trading Advisor. This was done so SAFE Management could offer fully managed trading services to individuals who lacked the time to trade for themselves and provide reasonable advisory fees and minimum investment amounts to service individuals who do not meet the requirements of Qualified Investors. ● We acquired the assets of United Games LLC and United League LLC which provided us highly experienced management, programmers, marketing and compliance personnel along with key technology components such as a fully coded back office and trademarked FIREFAN app. We are still in the process of adapting their technology to Kuvera operations and working on various distribution plans for FIREFAN. ● We changed the name of our subsidiary WealthGen Global, which was an unused entity, to SAFETek LLC in preparation for our entry into the high-performance computing space to meet the needs of 4IR (Fourth Industrial Revolution) business needs which includes mining, blockchain technologies, gaming, artificial intelligence and 3-Dimensional rendering. This will enable us to provide HPC services to small, medium and startup entities who require specialized high-speed processing but cannot afford the infrastructure. By leasing our processing to these companies, we will aid these entities in bringing their products, inventions, improvements to market. ● We have designed a program through Joint Venture known as APEX which enables individuals to purchase highly customized processing cards which SAFETek will lease from the purchasers for a fixed period of time at a fixed monthly lease payment. This enables individuals to participate in emerging growth without experiencing the volatility and potential loss experienced in the sector. These companies provide Investview a stake in 4IR, HPC, app development, fintech, blockchain and personal money management sectors. Each of these are areas that are targeted for significant growth spurred by innovations through technology. While our liabilities are larger than our assets it is important to note that we seek to keep operating expenses low. The assets we have acquired and will continue to seek out are those of technology, mobile apps, and human resources. These assets are not easily defined on our balance sheet but represent our ability to carry out our objectives which we believe will ultimately generating positive cash flow, reduced debt and then profitability. Further, while we have reported reoccurring losses and have an operating capital deficiency, we have been able to establish multiple companies to create various revenue streams as we move forward. Our largest challenge is operational cash flow as lending arrangements continue to be expensive causing us to deploy incoming cash to prior debt. We continue to seek short term capital in arrangements that are partnership based with elements of debt and equity combined. Additionally, our immediate focus is the continued reduction in losses by controlling expenses, increasing revenue, and generating additional revenue streams. Accordingly, the accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate our continuation as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 5 – ACQUISITIONS Reverse Acquisition with Wealth Generators Effective April 1, 2017, we entered into a Contribution Agreement with Wealth Generators, pursuant to which the Wealth Generators members agreed to contribute 100% of the outstanding securities of Wealth Generators in exchange for an aggregate of 1,358,670,942 shares of our common stock. Following the closing, Wealth Generators became our wholly owned subsidiary and the Wealth Generators members became our stockholders and control the majority of our outstanding common stock. The transaction was accounted for as a reverse acquisition using the acquisition method of accounting in accordance with ASC Topic 805. Wealth Generators is the acquirer solely for financial accounting purposes. The following table summarizes the purchase accounting for the fair value of the assets acquired and liabilities assumed at the date of the reverse acquisition: Cash $ 3,550 Receivables 150,000 Total assets acquired 153,550 Accounts payable and accrued liabilities 456,599 Due to former management 127,199 Debt 26,314 Total liabilities assumed [1] 610,112 Net liabilities assumed 456,562 Consideration [2] 662,047 Goodwill $ 1,118,609 [1] In conjunction with the reverse acquisition, we entered into an assignment and assumption agreement wherein we issued 24,914,348 shares of our common stock to Alpha Pro Asset Management Group, LLC (“Alpha Pro”), an entity affiliated with the prior members of management, in exchange for Alpha Pro’s assumption of $482,588 in liabilities. Accordingly, the shares issued for debt were accounted for the moment before the reverse acquisition, and the $482,588 in liabilities have been excluded from the total liabilities assumed shown here. [2] The fair value of the consideration effectively transferred was measured based on the fair value of 150,465,339 shares that were outstanding immediately before the transaction. Using the closing market price of $0.0044 per share on March 31, 2017, consideration was valued at $662,047. Acquisition of United Games, LLC and United League, LLC On July 20, 2018, we entered into a Purchase Agreement with United Games Marketing LLC, a Utah limited liability company, to purchase its wholly owned subsidiaries United Games, LLC and United League, LLC for 50,000,000 shares of our common stock. United Games, LLC and United League, LLC provide distributor marketing back-office and commission tools and online sports gaming experience for users of their applications distributed through their networks of affiliates therefore we expect significant synergies to exist as a result of combining operations. The transaction was accounted for as a business combination using the acquisition method of accounting in accordance with the FASB (ASC Topic 805). The following table summarizes the purchase accounting for the fair value of the assets acquired and liabilities assumed at the date of the acquisition and the gain on bargain purchase which resulted from the fair value of the intangible assets acquired exceeding the fair value of our common stock given as consideration: Cash $ 3,740 Receivables 361,345 Intangible assets (see Note 2) 1,816,000 Total assets acquired 2,181,085 Accounts payable and accrued liabilities 409,803 Total liabilities assumed 409,803 Net assets acquired 1,771,282 Consideration [1] 800,000 Gain on bargain purchase $ 971,282 [1] The 50,000,000 shares of our common stock transferred as consideration in accordance with the Purchase Agreement was valued on July 20, 2018, the date of acquisition, based on the weighted equity fair value of $0.016 per share as determined by a third party valuation firm. United Games, LLC and United League, LLC recorded combined revenue of $1,331,542 and a combined net income of $26,059 since the July 20, 2018 acquisition date, which were included in our consolidated statement of operations for the year ended March 31, 2019. The table below represents the pro forma revenue and net income (loss) for the years ended March 31, 2019 and 2018, assuming the acquisition had occurred on April 1, 2017, pursuant to ASC Subtopic 805-10-50. This pro forma information does not purport to represent what the actual results of our operations would have been had the acquisition occurred on this date nor does it purport to predict the results of operations for future periods: Year Ended March 31, 2019 2018 Revenues $ 27,961,351 $ 19,416,537 Net (loss) $ (5,288,735 ) $ (16,371,058 ) Loss per common share $ (0.00 ) $ (0.01 ) |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Related-Party Transactions | NOTE 5 – RELATED-PARTY TRANSACTIONS Our related-party payables consisted of the following: December 31, March 31, Short-term advances [1] $ 668,608 $ 440,489 Short-term Promissory Note entered into on 8/17/18 [2] - 105,000 Convertible Promissory Note entered into on 7/23/19 [3] 903,285 - Accounts payable – related party [4] 75,000 - $ 1,646,893 $ 545,489 [1] We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. [2] A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. During the nine months ended December 31, 2019 we made repayments of $105,000 on the note. [3] We entered into a $3,600,000 convertible promissory note with a member of the senior management team on July 23, 2019. We received proceeds of $1,000,000 from the note, including $900,000 in cash and $100,000 which offset amounts owing to the lender. In accordance with the terms of the note we are required to repay a monthly minimum payment of $50,000 beginning January of 2020 through June of 2020 and a monthly minimum payment of $100,000 beginning July of 2020 until the total principal amount has been repaid. The lender has the right to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares of our common stock at a conversion price of $0.005 per share, subject to adjustment. During the nine months ended December 31, 2019 we recorded a beneficial conversion feature of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000 as a debt discount, representing the difference between the face value of the note and the proceeds received. During the nine months ended December 31, 2019 we amortized $903,285 of the debt discount into interest expense. [4] During the nine months ended December 31, 2019 we entered into an employment agreement with Jayme McWidener as our Chief Financial Officer. At the date we entered into the employment agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified as a related party accounts payable balance on our balance sheet. | NOTE 6 – RELATED PARTY TRANSACTIONS Our related party payables consisted of the following: Year Ended March 31, 2019 2018 Short-term advances [1] $ 440,489 $ 1,880 Short-term promissory note entered into on 8/17/18 [2] 105,000 - $ 545,489 $ 1,880 [1] We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. [2] A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000, which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. In addition to the above-mentioned related-party lending arrangements, during the year ended March 31, 2019, we sold $41,500 worth of high-speed computer processing equipment to our chief executive officer. This revenue has been included in the equipment sales reported on our statement of operations. |
Debt
Debt | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Debt | NOTE 6 – DEBT Our debt consisted of the following: December 31, 2019 March 31, 2019 Short-term advance received on 8/31/18 [1] $ 65,000 $ 75,000 Secured merchant agreement for future receivables entered into on 2/14/19 [2] - 641,687 Secured merchant agreement for future receivables entered into on 2/14/19 [3] - 468,790 Secured merchant agreements for future receivables entered into on 2/14/19 [4] - 597,060 Promissory note entered into on 1/16/19 [5] - 60,000 Secured merchant agreements for future receivables entered into on 3/28/19 [6] - 25,650 Convertible promissory note entered into on 1/11/19 [7] - 26,600 Convertible promissory note entered into on 2/6/19 [8] - 76,686 Convertible promissory note entered into on 3/14/19 [9] - 5,557 Secured merchant agreement for future receivables entered into on 8/16/19 and refinanced on 12/10/19 [10] 1,594,423 - Secured merchant agreement for future receivables entered into on 8/16/19 [11] 454,378 - Convertible promissory note entered into on 8/30/19 [12] 31,948 - Convertible promissory note entered into on 9/11/19 [13] 35,829 - $ 2,181,578 $ 1,977,030 [1] In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. During the nine months ended December 31, 2019 we made payments of $10,000 [2] During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we were required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $316,093 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $451,886 and amortized $126,292 into interest expense. [3] During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $297,033 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $413,580 and amortized $241,823 into interest expense. [4] During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $382,000 was rolled into a new debt arrangement, see notation [11] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $509,840 and amortized $294,780 into interest expense. [5] In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. During the nine months ended December 31, 2019, we repaid $60,000 of the amount due under the note. [6] During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. During the nine months ended December 31, 2019, we repaid $40,500 and amortized $14,850 into interest expense. [7] In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of April 11, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. During the nine months ended December 31, 2019, we amortized $114,848 into interest expense, recorded additional interest expense on the note of $40,977 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,425. [8] In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurred interest at 12% per annum, and had a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the “Returnable Shares”) to the note holder as a commitment fee, provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note had a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. During the nine months ended December 31, 2019, we amortized $197,486 into interest expense, recorded additional interest expense on the note of $11,136, and paid off the note and accrued interest for $285,308. In accordance with the terms of the agreement the 22,500,000 Returnable Shares were returned and cancelled (see Note 8). [9] In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of June 14, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. During the nine months ended December 31, 2019, we amortized $133,168 into interest expense, recorded additional interest expense on the note of $43,983 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,708. [10] During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On August 15, 2019, we received proceeds from this arrangement of $339,270 after paying off $316,093 from a February 2018 agreement (see notation [2] above) and $297,033 from a second February 2019 agreement (see notation [3] above). In accordance with the terms of the agreement, we were required to repay $1,399,000 by making daily ACH payments of $6,823. Accordingly, we recorded $446,604 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Effective December 10, 2019 this debt was refinanced and the outstanding balance of $839,514 was rolled into a new Secured Merchant Agreement for future receivables. During the nine months ended December 31, 2019, prior to the refinance, we repaid $559,486 and amortized $446,605 into interest expense related to the August 2019 arrangement. As a result of the refinancing arrangement we received proceeds of $854,801. In accordance with the terms of the agreement, we were required to repay $2,448,250 by making daily ACH payments of $10,999. Accordingly, we recorded $753,935 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, after the refinance, we repaid $153,986 and amortized $54,094 into interest expense related to the new December 2019 arrangement. [11] During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. In August 2019, we received proceeds from this arrangement of $418,381 after paying off $382,000 from a October 2018 agreement (see notation [4] above). In accordance with the terms of the agreement, we were required to repay $1,189,150 by making daily ACH payments of $5,801. Accordingly, we recorded $388,769 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, we repaid $533,750 and amortized $187,747 into interest expense. [12] In August 2019, we entered into a Convertible Promissory Note and received proceeds of $100,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of November 28, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $103,000 and captured loan fees, recorded as interest expense, of $69,048. During the nine months ended December 31, 2019, we amortized $27,783 into interest expense, and recorded additional interest expense on the note of $4,165. [13] In September 2019, we entered into a Convertible Promissory Note and received proceeds of $125,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of December 10, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $128,000 and captured loan fees, recorded as interest expense, of $53,573. During the nine months ended December 31, 2019, we amortized $31,158 into interest expense, and recorded additional interest expense on the note of $4,671. In addition to the above debt transactions that were outstanding as of September 30, 2019 and March 31, 2019, during the nine months ended December 31, 2019, we also received proceeds of $200,000 from two additional short-term notes ($100,000 each) and received proceeds of $140,000 from a convertible promissory note. During the nine months ended December 31, 2019, we recorded interest expense of $30,000 for fixed interest and extension fees on the short-term notes and made total cash payments of $230,000 to extinguish the interest and principal amounts due on the short-term notes. During the nine months ended December 31, 2019, we accounted for the conversion feature in the convertible note as a derivative instrument, therefore at inception recorded a debt discount of $143,000 and captured loan fees, recorded as interest expense, of $718,518. By the time we repaid the convertible note in December of 2019 we had amortized the full $143,000 into interest expense, recorded additional interest expense on the note of $45,094 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $188,094. | NOTE 7 – DEBT Our debt consisted of the following: Year Ended March 31, 2019 2018 Revenue share agreement entered into on 6/28/16 [1] $ - $ 195,245 Short-term advance received on 8/31/18 [2] 75,000 - Secured merchant agreement for future receivables entered into on 2/14/19 [3] 641,687 - Secured merchant agreement for future receivables entered into on 2/14/19 [4] 468,790 - Secured merchant agreements for future receivables entered into on 2/14/19 [5] 597,060 - Promissory note entered into on 1/16/19 [6] 60,000 - Secured merchant agreements for future receivables entered into on 3/28/19 [7] 25,650 - Convertible promissory note entered into on 1/11/19 [8] 26,600 - Convertible promissory note entered into on 2/6/19 [9] 76,686 - Convertible promissory note entered into on 3/14/19 [10] 5,557 - $ 1,977,030 $ 195,245 [1] During April 2016, we entered into a Royalty Agreement, which was replaced with a Revenue Share Agreement dated June 28, 2016, which was amended in October of 2016. Cash receipts were received of $100,000, $150,000, and $250,000 on April 19, May 11, and June 29, 2016, respectively. In accordance with the terms of the final amended agreement, we are required to make payments of $25,000 per month or a 3% royalty for the previous month’s sales, whichever is greater, beginning February 15, 2017, until the lender has been repaid $600,000. During the year ended March 31, 2019, we repaid $195,245. [2] In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. [3] During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we are required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. [4] During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. [5] During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. [6] In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. Subsequent to January 16, 2019, we repaid $60,000 of the amount due under the note. [7] During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. [8] In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of April 11, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. [9] In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurs interest at 12% per annum, and has a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the “Returnable Shares”) to the note holder as a commitment fee (see Note 9), provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. [10] In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of June 14, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. In addition to the above debt transactions that were outstanding as of March 31, 2019 and 2018, during the year ended March 31, 2019, we also received proceeds of $530,000 from short-term notes. During the year ended March 31, 2019, we recorded interest expense of $51,000 for fixed interest amounts due on the notes and made total cash payments of $581,000 to extinguish the interest and principal amounts due on the notes. |
Derivative Liability
Derivative Liability | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Liability | NOTE 7 – DERIVATIVE LIABILITY During the nine months ended December 31, 2019, we had the following activity in our derivative liability account: Derivative liability at March 31, 2019 $ 1,358,901 Derivative liability recorded on new instruments 1,206,139 Derivative liability reduced by debt settlement (1,676,735 ) Change in fair value (504,635 ) Derivative liability at December 31, 2019 $ 383,670 We use the binomial option pricing model to estimate fair value for those instruments convertible into common stock, at inception, at conversion date, and at each reporting date. During the nine months ended December 31, 2019, the assumptions used in our binomial option pricing model were in the following range: Risk free interest rate 1.53% - 2.13 % Expected life in years 0.03 - 1.25 Expected volatility 250% - 381 % | NOTE 8 – DERIVATIVE LIABILITY During the year ended March 31, 2019, we had the following activity in our derivative liability account: Derivative liability at March 31, 2018 $ - Derivative liability recorded on new instruments 1,144,525 Change in fair value 214,376 Derivative liability at March 31, 2019 $ 1,358,901 We use the binomial option pricing model to estimate fair value for those instruments convertible into common stock, at inception, at conversion date, and at each reporting date. During the year ended March 31, 2019, the assumptions used in our binomial option pricing model were in the following range: Risk free interest rate 2.40% - 2.58 % Expected life in years 0.35 - 1.25 Expected volatility 222% - 268 % |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Stockholders' Equity (Deficit) | NOTE 8 – STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock We are authorized to issue up to 50,000,000 shares of preferred stock with a par value of $0.001 and our Board of Directors has the authority to issue one or more classes of preferred stock with rights senior to those of common stock and to determine the rights, privileges and preferences of that preferred stock. As of December 31, 2019 and March 31, 2019 we had no preferred stock issued or outstanding. Common Stock During the nine months ended December 31, 2019, we issued 59,215,648 shares of common stock in exchange for net proceeds of $825,000. In conjunction with the sale of common stock during the year ended March 31, 2018, we provided a guarantee to certain individuals such that we would issue additional shares of our common stock if the average closing price of our common stock fell below $0.02 per share on the 20 days preceding the 18-month anniversary of the date the shares were originally sold. As a result of this guarantee, we had recorded $626,388 in accounts payable and accrued liabilities on our balance sheet as of March 31, 2018. During the year ended March 31, 2019, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we were released from the guarantee, and we increased additional paid-in capital by $525,000 to remove the previously recorded offering costs. During the nine months ended December 31, 2019, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we were released from the guarantee, and we increased additional paid-in capital by $101,387 to remove the previously recorded offering costs. Also during the nine months ended December 31, 2019, we issued 241,000,000 shares of common stock, valued at $3,865,500 based on the market value on the day of issuance, to multiple employees for services and compensation, which is subject to forfeiture if the employee is not in good standing at the time the shares are fully vested. Of the $3,865,500 value we recognized $1,844,639 as an expense during the nine months ending December 31, 2019 and the remaining $2,020,861 will be recognized ratably over the vesting term. In addition to the shares issued to employees, we also issued an additional 285,618,592 shares of common stock, valued at $831,800 based on the market value on the day of issuance, for services. During the nine months ended December 31, 2019 we repurchased 5,150 shares of common stock for $102 and we cancelled 22,500,000 shares that were returned in accordance with the terms of a Convertible Promissory Note (see Note 6), reducing common stock by $22,500 and increasing additional paid in capital by the same. We also cancelled 200,000,000 shares returned in conjunction with the termination of a Joint Venture Agreement entered into in March of 2019, reducing common stock by $200,000, reducing additional paid in capital by $3,180,000, offset with a reduction in our prepaid asset of $3,380,000. During the nine months ended December 31, 2019 we recorded a beneficial conversion feature of $1,000,000 related to a convertible promissory note entered into with a related party (see Note 5). As of December 31, 2019 and March 31, 2019, the Company had 3,003,490,408 and 2,640,161,318 shares of common stock issued and outstanding, respectively. Employee Stock Options The nonqualified plan adopted in 2007 authorized 65,000 shares, of which 47,500 had been granted as of March 31, 2018. The qualified plan adopted in October of 2008 authorizes 125,000 shares and was approved by a majority of our shareholders on September 16, 2009. As of March 31, 2018, 42,500 shares had been granted under the 2008 plan. Effective April 1, 2018 we cancelled both the 2007 and 2008 plans, as well as any shares that were allocated under the plans and were not yet issued. The following table summarizes the changes in employee stock options outstanding and the related prices for the shares of our common stock issued to employees under two employee stock option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2019 35,000 $ 10.00 0.51 $ - Granted - $ - Exercised - $ - Canceled / expired (35,000 ) $ 10.00 Options outstanding at December 31, 2019 - $ - - $ - Options exercisable at December 31, 2019 - $ - - $ - Stock-based compensation expense in connection with options granted to employees for the three months ended December 31, 2019 and 2018, was $0. Warrants The following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of December 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $ 1.50 125,000 0.46 $ 1.50 125,000 $ 1.50 Transactions involving our warrant issuance are summarized as follows: Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted / restated - $ - Canceled - $ - Expired (1,117,000 ) $ 1.48 Warrants outstanding at March 31, 2019 5,052,497 $ 1.50 Granted - $ - Canceled - $ - Expired (4,927,497 ) $ 1.50 Warrants outstanding at December 31, 2019 125,000 $ 1.50 | NOTE 9 – STOCKHOLDERS’ EQUITY Preferred Stock We are authorized to issue up to 50,000,000 shares of preferred stock with a par value of $0.001 and our board of directors has the authority to issue one or more classes of preferred stock with rights senior to those of common stock and to determine the rights, privileges, and preferences of that preferred stock, which has not yet been done. As of March 31, 2019 and 2018, we had no preferred stock issued or outstanding. Common Stock Transactions During the year ended March 31, 2019, we issued 50,000,000 shares of common stock for the acquisition of United Games, LLC and United League, LLC (see Note 5). We also issued 1,000,000 shares of common stock in August and 1,000,000 shares of common stock in March, valued at $10,000 and $17,600, respectively, based on the market price on the day of issuance, to an employee for compensation. The shares are subject to forfeiture if the employee is not in good standing six months after the date of issuance. During the year ended March 31, 2019, the $10,000 was recognized as expense and of the $17,600 we recognized $2,933 as an expense and $14,667 was recorded as a prepaid asset. Also during the year ended March 31, 2019, we issued 400,000,000 shares of common stock with a value of $6,760,000 based on the market price on the date of issuance, for an agreement to partner with a third party to generate future revenues. The 400,000,000 shares are subject to forfeiture for five years from the date of issuance, such that shares will be deemed earned upon meeting certain milestones. We are recognizing the expense ratably over the five-year term and recorded $96,307 in expense during the year ended March 31, 2019, while recording $6,663,693 as a prepaid asset as of March 31, 2019. During the year ended March 31, 2019, we entered into a common stock purchase agreement that provides cash of $1,000,000 in exchange for shares of our common stock. In conjunction with that agreement, we issued 3,000,000 shares of common stock that was accounted for as offering costs, increasing common stock by $3,000 and decreasing additional paid-in capital by $3,000, to offset any proceeds from the future equity transactions resulting from the agreement. During the year ended March 31, 2019, we issued 22,500,000 shares as a commitment fee in conjunction with a debt arrangement, whereby the shares were valued at $69,871 based on the allocation of debt proceeds (see Note 7). Also during the year ended March 31, 2019, we repurchased 7,000,000 shares of common stock for $91,000. During the year ended March 31, 2018, we issued 267,127,500 shares of common stock for net proceeds of $2,495,338. We issued 125,000 shares of common stock with a value of $7,500 for a one-year consulting agreement, 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement, and 94,250,333 shares of common stock with a value of $6,719,734 for consulting and service agreements; of the value of the shares issued for services and the license agreement $6,846,060 was recorded as expense, $3,555 was recorded as a prepaid asset, and $2,133,620 was recorded as a long-term license agreement during the year ended March 31, 2018. We also issued 239,575,884 shares of our common stock in settlement of debt, wherein accrued liabilities, principal, accrued interest, and derivative liabilities were extinguished in the amounts of $435,892, $2,348,606, $20,696, and $38,557, respectively, and we recognized a loss on the settlement of debt in the amount of $3,186,394 in the statement of operations for the year ended March 31, 2018. In conjunction with the shares issued for the settlement of debt, a gain of $413,012 related to the period prior to the reverse acquisition with Wealth Generators was excluded from the statement of operations. As a result of the reverse acquisition, we issued 1,358,670,942 shares of common stock (see Note 5). During the year ended March 31, 2018, we entered into an equity distribution agreement that provides for cash advances up to $5,000,000 in exchange for shares of our common stock, to be fulfilled at our request. Pursuant to that agreement, we issued 4,273,504 shares of common stock as a commitment fee, recorded a liability of $250,000 for future commitment fees to be paid, and paid cash of $15,000 for due diligence costs. As a result, common stock increased $4,274 and additional paid-in capital decreased by $269,274 to offset any proceeds from future equity transactions resulting from the agreement. During the year ended March 31, 2018, we cancelled 250,000 shares of common stock and 1,300 shares of treasury stock, resulting in a decrease in common stock of $251, a decrease in additional paid-in capital of $8,338, and a decrease in treasury stock of $8,589. In conjunction with the sale of common stock during the year ended March 31, 2018, we provided a guarantee to certain individuals such that we would issue additional shares of our common stock if the average closing price of our common stock fell below $0.02 per share on the 20 days preceding the 18-month anniversary of the date the shares were originally sold. As a result of this guarantee, we had recorded $626,388 in accounts payable and accrued liabilities on our balance sheet as of March 31, 2018. During the year ended March 31, 2018, the 18-month anniversary passed without the common stock falling below the set threshold, therefore, we were released from the guarantee, and we increased additional paid-in capital by $525,000 to remove the previously recorded offering costs. As of March 31, 2019 and 2018, we had 2,640,161,318 and 2,169,661,318 shares of common stock issued and outstanding, respectively. Employee Stock Options The nonqualified plan adopted in 2007 authorizes 65,000 shares, of which 47,500 have been granted as of March 31, 2019. The qualified plan adopted in October of 2008 authorizes 125,000 shares and was approved by a majority of our shareholders on September 16, 2009. As of March 31, 2019, 42,500 shares have been granted under the 2008 plan. The following table summarizes the changes in employee stock options outstanding and the related prices for the shares of our common stock issued to employees under two employee stock option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2017 35,000 $ 10.00 2.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2019 35,000 $ 10.00 0.51 $ - Options exercisable at March 31, 2019 35,000 $ 10.00 0.51 $ - Stock-based compensation expense in connection with options granted to employees for the year ended March 31, 2019 and 2018, was $0. Warrants The following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of March 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $ 1.50 5,052,497 0.36 $ 1.50 5,052,497 $ 1.50 Transactions involving our warrant issuance are summarized as follows: Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2017 6,534,810 $ 1.48 Granted / restated - $ - Canceled - $ - Expired (365,313 ) $ (1.18 ) Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted - $ - Canceled - $ - Expired (1,117,000 ) $ (1.48 ) Warrants outstanding at March 31, 2019 5,052,497 $ 1.50 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we may be or have been involved in legal proceedings from time to time. Below is a description of all legal proceedings we were involved in during the nine months ended December 31, 2019. In February 2018, we received a subpoena from the United States Commodity Futures Trading Commission (“CFTC”). We complied with the terms of the subpoena, negotiated a resolution of this matter with the CFTC staff, and a final order was issued on September 14, 2018. Under the order, we are not admitting or denying any of the allegations, will pay a fine of $150,000, and have agreed not to act as an unregistered Commodities Trading Advisor in the future. As of December 31, 2019 we have paid all amounts owed to CFTC and no unpaid balance remains. In April of 2019, we received a Summons and Complaint from Fibernet Corp making claims of unpaid invoices and breach of contracts entered into in February 2012 and January 2015 as RazorData Corp. Without admitting fault or liability, in June of 2019, we entered into an agreement with Fibernet Corp to settle all claims and release us from any future claims in exchange for a payment of $35,160 to avoid ongoing litigation related to this matter. | NOTE 10 – COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we may be or have been involved in legal proceedings from time to time. Below is a description of all legal proceedings we were involved in during the year ended March 31, 2019: ● On November 1, 2017, we filed a lawsuit in the Fourth Judicial District Court for Utah County, State of Utah, Wealth Generators, LLC, v. Evan Cabral, Daniel Lopez, John Legarreta, Johnathan Lopez, Julian Kuschner, Nick Gomez, Luke Shulla, Nestor Velazquez, Christopher Terry, Isis De La Torre, Alex Morton, Ivan Briongos, Brandon Boyd, and International Markets Live Ltd. d/b/a iMarketslive, Civil No. 170401615, alleging corporate espionage and misappropriation of corporate information. The lawsuit alleges that International Markets Live Ltd., dba iMarketslive, conspired with a number of individuals affiliated with Wealth Generators to steal our confidential information, intellectual property, and trade secrets. On September 27, 2018, the court issued its ruling granting in part and denying in part our motion for preliminary injunction. On January 2, 2019, the parties entered into a settlement agreement in which they agreed to release all claims and have the litigation dismissed with prejudice, with neither party making any payment to the other, but with the defendants agreeing to make a $5,000 donation to charity. On February 22, 2019, the matter was dismissed with prejudice. ● In February 2018, we received a subpoena from the United States Commodity Futures Trading Commission (“CFTC”). We complied with the terms of the subpoena, negotiated a resolution of this matter with the CFTC staff, and a final order was issued on September 14, 2018. Under the order, we did not admit or deny any of the allegations, agreed to pay a fine of $150,000, and agreed not to act as an unregistered Commodities Trading Advisor in the future. As of March 31, 2019, we have paid $90,000 to CFTC and the remaining unpaid balance has been included in accounts payable and accrued liabilities on our consolidated balance sheet. ● Jim Westphal filed a wage claim against Kuvera, LLC (at the time named Wealth Generators, LLC), in the United States District Court for the District of Utah, Central Division (Case No. 2:18-cv-00080) in the amount of $6,500 plus liquidated damages. Mr. Westphal is claiming unpaid overtime wages. We contend that Mr. Westphal was an independent contractor, hired on a limited basis to perform software services, and is accordingly not entitled to overtime payments under the Fair Labor Standards Act. Moreover, Mr. Westphal never provided the promised software pursuant to the parties’ agreement. We filed a counterclaim on July 12, 2018, seeking damages of approximately $20,000 and demanding a jury trial. In December 2018, the parties settled the matter with a joint motion. As a result of the settlement, we paid Mr. Westphal $1,500 and the case was dismissed. ● In April of 2019, we received a Summons and Complaint from Fibernet Corp making claims of unpaid invoices and breach of contracts entered into in February 2012 and January 2015 as RazorData Corp. Without admitting fault or liability, in June of 2019, we entered into an agreement with Fibernet Corp to settle all claims and release us from any future claims in exchange for a payment of $35,160 to avoid ongoing litigation related to this matter. |
Operating Lease
Operating Lease | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Lease | NOTE 10 – OPERATING LEASE In February 2016, the FASB issued ASU No. 2016-02, Leases During the nine months ended December 31, 2019 we entered two operating leases for office space in Eatontown, New Jersey (the “Eatontown Lease”) and Kaysville, Utah (the “Kaysville Lease”). We have the option to extend the three year lease term of the Eatontown Lease for a period of one year. In addition, we are obligated to pay twelve monthly installments to cover an annual utility charge of $1.75 per rentable square foot for electric usage within the demised premises. As the lessor has the right to digitally meter and charge us accordingly, these payments were deemed variable and will be expensed as incurred. During the three and nine months ended December 31, 2019 the variable lease costs amounted to $831 and $1,385, respectively. At commencement of the Eatontown Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $110,097. We have the option to extend the twelve-and-a-half-month lease term of the Kaysville Lease for a period of one year. At commencement of the Kaysville Lease, right-of-use assets obtained in exchange for new operating lease liabilities amounted to $21,147. Operating lease expense was $16,397 and $24,630 for the three and nine months ended December 31, 2019, respectively. Operating cash flows used for the operating leases during the three and nine months ended December 31, 2019 were $12,897 and $18,797, respectively. As of December 31, 2019, the weighted average remaining lease term was 2.34 years and the weighted average discount rate was 12%. Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows: Remainder of 2020 $ 14,897 2021 56,794 2022 48,000 2023 16,000 Total 135,691 Less: Interest (17,294 ) Present value of lease liability 118,397 Operating lease liability, current [1] (59,064 ) Operating lease liability, long term $ 59,333 [1] Represents lease payments to be made in the next 12 months |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 – INCOME TAXES Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company used an effective tax rate of 30% when calculating the deferred tax assets and liabilities and income tax provision below. Net deferred tax assets consist of the following components as of March 31, 2019 and 2018: 2019 2018 Deferred tax assets: NOL carryover $ 2,363,900 $ 1,146,200 Amortization 209,100 335,600 Contingent Liability 49,100 45,000 Related party accruals 1,500 - Deferred tax liabilities Depreciation (1,200 ) (2,900 ) Valuation allowance (2,622,400 ) (1,523,900 ) Total long-term deferred income tax assets $ - $ - The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended March 31, 2019 and 2018, due to the following: 2019 2018 Book income (loss) $ (1,493,400 ) $ (4,473,900 ) Stock for services 32,800 2,048,200 Gain on settlement – derivative and equity derived - 955,900 Amortization (33,100 ) 313,200 Contingent liability (45,000 ) 45,000 Unrealized loss on cryptocurrency (31,900 ) 40,700 Meals and entertainment 12,400 6,200 Non-cash interest expense 315,800 5,700 Depreciation (7,200 ) (2,800 ) Related party accruals 1,500 (1,500 ) Related party accrued payroll 174,600 - Gain on bargain purchase (291,400 ) - Loss on value of derivative liabilities 64,300 - Stock issued for loan fees 21,000 - Amortization of prepaid paid for with equity 45,100 - Valuation allowance 1,234,500 1,063,300 Total long-term deferred income tax assets $ - $ - At March 31, 2019, we had net operating loss carryforwards of approximately $7,880,000 that may be offset against future taxable income for the year 2020 through 2039. However, due to the change in ownership provisions of the Tax Reform Act of 1986, the NOL accumulated prior to the April 1, 2017, acquisition can only offset future income of up to $13,837 per year until expired. Should additional changes in ownership occur, net operating loss carryforwards in future years may be further limited. No tax benefit from continuing or discontinued operations have been reported in the March 31, 2019, consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. We comply with the provisions of FASB ASC 740 in accounting for our uncertain tax positions. ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740, we may recognize the tax benefit from an uncertain tax position only if it is more likely that not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. We have determined that we have no significant uncertain tax positions requiring recognition under ASC 740. We recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. We had no accruals for interest and tax penalties at March 31, 2019 and 2018. We do not expect the amount of unrecognized tax benefits to materially change within the next 12 months. We are required to file income tax returns in the U.S. Federal jurisdiction, in New York State, New Jersey, and in Utah. We are no longer subject to income tax examinations by tax authorities for tax years ending before March 31, 2015. During the year ended March 31, 2019 and 2018 we paid income taxes of $70,768 and $24,589, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Subsequent Events [Abstract] | ||
Subsequent Events | NOTE 11 – SUBSEQUENT EVENTS Subsequent to December 31, 2019 we received $1,070,000 in proceeds from related party advances and issued 10,000,000 shares of our common stock for services. On April 27, 2020, the Company entered into a Securities Purcahse Agreeement (“SPA”) and related agreements with DBR Capital, LLC, a Pennsylvania limited liability company (“DBR”), pursuant to which DBR purchased a $1.3 million convertible note and agreed to purchase a $700,000 convertible note, which was funded on May 28, 2020. DBR also agreed to purchase an additional convertible note in the principal amount of $9.0 on or before October 31, 2020. The SPA also contemplated the creation of a new broker-dealer subsidiary for the Company and the exchange of a portion of the equity the new subsidiary to DBR in consideration for the rights to certain proprietary software and other intellectual property owned by DBR. Reference is made to the Company’s Form 8-K filed with the SEC on April 30, 2020 and the exhibits filed as part of the 8-K, including the SPA, a Voting Agreement, Lock-Up Agreement and the $1.3 million convertible note. In accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have determined that there are no additional subsequent events that require disclosure. | NOTE 12 – SUBSEQUENT EVENTS In April of 2019, we received proceeds of $200,000 from two separate short-term promissory notes. In June of 2019, we entered into an office lease agreement for our corporate finance department, located in Eatontown, New Jersey. The agreement is for a term of three years at a monthly rent amount of $2,500 for months one through six, $3,500 for months six through 12, and $4,000 for months 13 through 36. Corporate Finance is expected to occupy the new office space beginning in July of 2019. In May and June of 2019, we issued an aggregate of 39,215,648 shares of our common stock to Triton Funds LP under the common stock purchase agreement that was entered into in December 2018 and amended in March and April 2019, for net proceeds of $325,000. In accordance with ASC Topic 855, Subsequent Events, we have evaluated subsequent events through the date of this filing and have determined that there are no additional subsequent events that require disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”) and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the nine months ended December 31, 2019, are not necessarily indicative of the operating results that may be expected for the year ending March 31, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the March 31, 2019 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2019. | Basis of Accounting Our policy is to prepare our financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Apex Tek, LLC (formerly Razor Data, LLC), S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. Through March 31, 2019 we had determined that one affiliated entity, Kuvera LATAM S.A.S., which we previously conducted business with, was a variable interest entity and we were the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, through March 31, 2019 we had consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because the Company did not have any ownership interest in this variable interest entity, the Company had allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. As of April 1, 2019 Kuvera LATAM S.A.S. had no operations and ceased to exist, therefore, as of that date, no consolidation of the entity is necessary and we recorded a gain on deconsolidation of $53,739 to eliminate the intercompany account with Kuvera LATAM S.A.S. All intercompany transactions and balances have been eliminated in consolidation. | Principles of Consolidation The consolidated financial statements include the accounts of Investview, Inc., and our wholly owned subsidiaries, Kuvera, LLC, Investment Tools & Training, LLC, Razor Data Corp., S.A.F.E. Management, LLC, SafeTek, LLC (formerly WealthGen Global, LLC), United Games, LLC, United League, LLC, and Kuvera France S.A.S. We have determined that one affiliated entity, Kuvera LATAM S.A.S., which we conduct business with, is a variable interest entity and we are the primary beneficiary of the entity’s activities, which are similar to those of Kuvera, LLC. As a result, we have consolidated the accounts of this variable interest entity into the accompanying consolidated financial statements. Further, because we do not have any ownership interest in this variable interest entity, we have allocated the contributed capital in the variable interest entity as a component of noncontrolling interest. All intercompany transactions and balances have been eliminated in consolidation. |
Financial Statement Reclassification | Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications. | |
Use of Estimates | Use of Estimates The preparation of these unaudited condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | Use of Estimates The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Exchange | Foreign Exchange We have consolidated the accounts of Kuvera France S.A.S. into our consolidated financial statements and have consolidated the accounts of Kuvera LATAM S.A.S. through March 31, 2019. The operations of Kuvera France S.A.S. are conducted in France and its functional currency is the Euro. The operations of Kuvera LATAM S.A.S. were conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency and have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Stockholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit). The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates. December 31, 2019 March 31, 2019 Euro to USD 1.12165 1.12200 Colombian Peso to USD n/a 0.00031 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods. Nine Months Ended December 31, 2019 2018 Euro to USD 1.11443 n/a Colombian Peso to USD n/a 0.00034 | Foreign Exchange We have consolidated the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into our consolidated financial statements. The operations of Kuvera France S.A.S. are conducted in France and its functional currency is the Euro. The operations of Kuvera LATAM S.A.S. are conducted in Colombia and its functional currency is the Colombian Peso. The financial statements of Kuvera France S.A.S. and Kuvera LATAM S.A.S. are prepared using their respective functional currency and have been translated into U.S. dollars (“USD”). Assets and liabilities are translated into USD at the applicable exchange rates at period-end. Stockholders’ equity is translated using historical exchange rates. Revenue and expenses are translated at the average exchange rates for the period. Any translation adjustments are included as foreign currency translation adjustments in accumulated other comprehensive income in our stockholders’ equity (deficit). The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates: March 31, March 31, Euro to USD 1.12200 n/a Colombian Peso to USD 0.00031 0.00036 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods: Year ended March 31, 2019 2018 Euro to USD 1.13580 n/a Colombian Peso to USD 0.00033 0.00034 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose us to concentration of credit risk include cash, accounts receivable, and advances. We place our cash and temporary cash investments with credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit of $250,000. As of March 31, 2019 and 2018, cash balances that exceeded FDIC limits were $0 and $1,095,329, respectively, and we have not experienced significant losses relating to these concentrations in the past. | |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, we consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. As of March 31, 2019 and 2018, we had no cash equivalents. | |
Receivables | Receivables Receivables are carried at net realizable value, representing the outstanding balance less an allowance for doubtful accounts based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. We had no allowance for doubtful accounts as of March 31, 2019 and 2018. | |
Cryptocurrencies | Cryptocurrencies We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of December 31, 2019 and March 31, 2019 the fair value of our cryptocurrencies was $156,448 and $142,061, respectively. During the nine months ended December 31, 2019 we recorded $(657) and $8,445 as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the nine months ended December 31, 2018 we recorded $16,363 and $95,810 as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the three months ended December 31, 2019 we recorded $10 and $(16,885) as a total realized and unrealized gain (loss) on cryptocurrency, respectively. During the three months ended December 31, 2018 we recorded $10 and $(16,885) as a total realized and unrealized gain (loss) on cryptocurrency, respectively. | Cryptocurrencies We hold cryptocurrency-denominated assets (“cryptocurrencies”) and include them in our consolidated balance sheet as other current assets. We record cryptocurrencies at fair market value and recognize the change in the fair value of our cryptocurrencies as an unrealized gain or loss in the consolidated statement of operations. As of March 31, 2019 and March 31, 2018, the fair value of our cryptocurrencies was $142,061 and $480,370, respectively. During the year ended March 31, 2019, we recorded $16,241 and $106,488 as realized and unrealized gain (loss) on cryptocurrency, respectively. During the year ended March 31, 2018, we recorded $(10,939) and $(135,729) as realized and unrealized gain (loss) on cryptocurrency, respectively. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives. When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred. As of December 31, 2019 fixed assets were made up of the following: Estimated Useful Life (years) Value Furniture, fixtures, and equipment 10 $ 11,372 Computer equipment 3 19,533 Data processing equipment 3 4,166,470 4,197,375 Accumulated amortization as of December 31, 2019 (333,034 ) Net book value, December 31, 2019 $ 3,864,341 Total depreciation expense for the nine months ended December 31, 2019 and 2018, was $320,528 and $4,126, respectively. | Fixed Assets Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Furniture, fixtures, and equipment 10 years Computer equipment 3 years When retired or otherwise disposed, the carrying value and accumulated depreciation of the fixed asset is removed from its respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. Expenditures for maintenance and repairs which do not extend the useful lives of the related assets are expensed as incurred. Fixed assets are presented net of accumulated depreciation of $12,505 and $7,173, as of March 31, 2019 and 2018, respectively. Total depreciation expense for the years ended March 31, 2019 and 2018, was $5,332 and $2,639, respectively. |
Long-lived Assets - Intangible Assets & License Agreement | Long-Lived Assets – Intangible Assets & License Agreement We account for our intangible assets and long-term license agreement in accordance with ASC Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the nine months ended December 31, 2019 and 2018 was $113,315 and $113,315, respectively, and the long-term license agreement was recorded at a net value of $1,869,905 and $1,983,220 as of December 31, 2019 and March 31, 2019, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination. Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. During the nine months ended December 31, 2019 we impaired the value of the customer contracts/relationships originally acquired. Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships n/a - 991,000 Accumulated amortization as of December 31, 2019 (254,949 ) Net book value, December 31, 2019 $ 736,051 Amortization expense is expected to be as follows: Remainder of 2020 $ 43,169 Fiscal year ending March 31, 2021 173,150 Fiscal year ending March 31, 2022 173,150 Fiscal year ending March 31, 2023 115,338 Fiscal year ending March 31, 2024 55,748 Fiscal year ending March 31, 2025 and beyond 175,496 $ 736,051 | Long-Lived Assets – Intangible Assets & License Agreement We account for our intangible assets and long-term license agreement in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Further, ASC Subtopic 350-30 requires an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing, maintaining, or restoring intangible assets are recognized as an expense when incurred. In June of 2017 we issued 80,000,000 shares of common stock with a value of $2,256,000 for a 15-year license agreement. Annual amortization over the 15-year life is expected to be $150,400 per year. Amortization recognized for the year ended March 31, 2019 and 2018, was $150,400 and $122,380, respectively, and the long-term license agreement was recorded at a net value of $1,983,220 and $2,133,620 as of March 31, 2019 and 2018, respectively. In June of 2018 we purchased United Games, LLC and United League, LLC and recorded the transaction as a business combination (see Note 5). Intangible assets acquired in the business combination were recorded at fair value on the date of acquisition and are being amortized on a straight-line method over their estimated useful lives. Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 825,000 1,816,000 Accumulated amortization as of March 31, 2019 (239,315 ) Net book value, March 31, 2019 $ 1,576,685 Amortization expense is expected to be as follows: Fiscal year ending March 31, 2020 $ 338,150 Fiscal year ending March 31, 2021 338,150 Fiscal year ending March 31, 2022 338,150 Fiscal year ending March 31, 2023 280,565 Fiscal year ending March 31, 2024 and beyond 281,670 $ 1,576,685 |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets We have adopted ASC Subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. During the nine months ended December 31, 2019 and 2018 impairment of $627,452 and $0 was recognized, respectively. | Impairment of Long-Lived Assets We have adopted ASC Subtopic 360-10, Property, Plant and Equipment. ASC 360-10 requires that long-lived assets and certain identifiable intangibles held and used by us be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or when the historical cost carrying value of an asset may no longer be appropriate. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve break-even operating results over an extended period. We evaluate the recoverability of long-lived assets based upon future net cash flows expected to result from the asset, including eventual disposition. Should impairment in value be indicated, the carrying value of intangible assets will be adjusted and an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: - quoted prices for similar assets or liabilities in active markets; - quoted prices for identical or similar assets or liabilities in markets that are not active; - inputs other than quoted prices that are observable for the asset or liability; and - inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, accounts payable, and debt. We have determined that the book value of our outstanding financial instruments as of December 31, 2019 and March 31, 2019, approximates the fair value due to their short-term nature. Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 156,448 $ - $ - $ 156,448 Total Assets $ 156,448 $ - $ - $ 156,448 Derivative liability $ - $ - $ 383,670 $ 383,670 Total Liabilities $ - $ - $ 383,670 $ 383,670 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ - $ 1,358,901 $ 1,358,901 Total Liabilities $ - $ - $ 1,358,901 $ 1,358,901 | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on our principal or, in the absence of a principal, most advantageous market for the specific asset or liability. U.S. generally accepted accounting principles provide for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: - quoted prices for similar assets or liabilities in active markets; - quoted prices for identical or similar assets or liabilities in markets that are not active; - inputs other than quoted prices that are observable for the asset or liability; and - inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable and reflect management’s own assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Our financial instruments consist of cash, accounts receivable, and accounts payable. We have determined that the book value of our outstanding financial instruments as of March 31, 2019 and March 31, 2018, approximates the fair value due to their short-term nature. Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ 1,358,901 $ - $ 1,358,901 Total Liabilities $ - $ 1,358,901 $ - $ 1,358,901 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - |
Sale and Leaseback | Sale and Leaseback Through our wholly-owned subsidiary, APEX Tex, LLC, we sell high powered data processing equipment (“APEX”) to our customers and they lease the equipment back to SAFETek, LLC, another of our wholly-owned subsidiaries. We account for these transactions under ASC 842-40 where the leaseback has been deemed a sales-type lease due to the lease term generally covering the entire economic life of the equipment and our likelihood to purchase the asset at the end of the lease term. In accordance with ASC 842-40 we have recorded the data processing equipment as a fixed asset on our balance sheet and we have accounted for the amounts received for the equipment as a financial liability, in other liabilities on our balance sheet. Further, we will recognize interest on the financial liability over the term of the lease to ensure the financial liability equates to the total amounts to be paid over the life of the lease. During the nine months ended December 31, 2019 we had the following activity related to our sale and leaseback transactions: Proceeds from sales of APEX $ 9,693,141 Interest recognized on financial liability 877,352 Payments made for leased equipment (1,341,100 ) Total financial liability 9,229,393 Other current liabilities [1] (7,576,800 ) Other long-term liabilities $ 1,652,593 [1] Represents lease payments to be made in the next 12 months As of December 31, 2019, we have received proceeds of $607,205 in additional deposits for APEX sales, which has been recorded in the customer advance amount shown on our balance sheet. | |
Revenue Recognition | Revenue Recognition Subscription Revenue The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. We recognize subscription revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to provide services over a fixed subscription period, therefore we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 10-day trial period to subscription customers, during which a full refund can be requested if a customer does not like the product. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. Equipment Sales We generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing activities: protein folding, CGI rendering, Game Streaming, Machine & Deep Learning, Mining, Independent Financial Verification, and general high-speed computing. We recognize equipment sales revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver an equipment package to our customers which includes hardware, software, and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a separate third party that provides such services. Cryptocurrency Mining Service Revenue We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. We recognize cryptocurrency mining service revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. Mining Revenue Through our wholly owned subsidiary, SAFETek, LLC, we lease equipment under a sales-type lease and use the equipment on blockchain networks to validate and add blocks of transactions to blockchain ledgers (commonly referred to as “mining”). As compensation for mining we are issued fees from processors and/or block rewards that are newly created cryptocurrency units granted to us. Our mining activities constitute our ongoing major and central operations of SAFETek, LLC. Because we do not have contracts, nor do we have customers associated with our mining revenue, we recognize revenue when fees and/or rewards are settled, or ultimately granted to us as a result of our mining activities. Fee Revenue We generate fee revenue from our customers through SAFE Management, our subsidiary licensed as a Registered Investment Advisor and Commodities Trading Advisor. We recognize fee revenue in accordance with ASC 606-10 where revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. Our performance obligation is to deliver fully managed trading services to individuals who do not meet the requirements of Qualified Investors and who lack the time to trade for themselves. We recognize fee revenue as our performance obligation is met and we receive payment for such advisory fees in the month following recognition. Revenue generated for the nine months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,214,747 $ - $ - $ 380,871 $ 9,486 $ 21,605,104 Refunds, incentives, credits, and chargebacks (1,887,656 ) - - - - (1,887,656 ) Amounts paid to supplier - - - - - - Net revenue $ 19,327,091 $ - $ - $ 380,871 $ 9,486 $ 19,717,448 Revenue generated for the nine months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,882,005 $ 698,954 $ 5,690,380 $ - $ - $ 28,271,389 Refunds, incentives, credits, and chargebacks (1,047,007 ) (4,000 ) (6,501 ) - - (1,057,508 ) Amounts paid to supplier - - (3,871,278 ) - - (3,871,278 Net revenue $ 20,835,048 $ 694,954 $ 1,812,601 $ - $ - $ 23,342,603 Revenue generated for the three months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 5,096,886 $ - $ - $ 380,871 $ 4,117 $ 5,481,874 Refunds, incentives, credits, and chargebacks (518,263 ) - - - - (518,263 ) Amounts paid to supplier - - - - - - Net revenue $ 4,578,623 $ - $ - $ 380,871 $ 4,117 $ 4,963,611 Revenue generated for the three months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 7,204,415 $ 698,954 $ 40,779 $ - $ - $ 7,944,148 Refunds, incentives, credits, and chargebacks (200,613 ) (4,000 ) (6,501 ) - - (211,114 ) Amounts paid to supplier - - - - - - Net revenue $ 7,003,802 $ 694,954 $ 34,278 $ - $ - $ 7,773,034 | Revenue Recognition Effective April 1, 2018, we adopted the ASC Subtopic 606-10, Revenue from Contracts with Customers. The adoption of ASC 606-10 had no impact on prior year or previously disclosed amounts. In accordance with ASC 606-10, revenue is measured based on a consideration specified in a contract with a customer and recognized when we satisfy the performance obligation specified in each contract. The majority of our revenue is generated by subscription sales and payment is received at the time of purchase. Our performance obligation is to provide services over a fixed subscription period; therefore, we recognize revenue ratably over the subscription period and deferred revenue is recorded for the portion of the subscription period subsequent to each reporting date. Additionally, we offer a 10-day trial period to subscription customers, during which a full refund can be requested if a customer does not like the product. Revenues are deferred during the trial period as collection is not probable until that time has passed. Revenues are presented net of refunds, sales incentives, credits, and known and estimated credit card chargebacks. We generate revenue from the sale of cryptocurrency mining services to our customers through an arrangement with a third-party supplier. Our performance obligation is to arrange for the third-party to provide mining services to our customers and payment is received at the time of purchase, therefore revenue is recognized upon receipt of payment. We recognize revenue in the amount of the fee to which we are entitled to as an agent, or the amount of consideration that we retain after paying the third-party the consideration received in exchange for the services the third-party is to provide. We generate revenue from the sale of high-speed computer processing equipment that is used for any of the following intense processing activities: protein folding, CGI rendering, game streaming, machine & deep learning, mining, independent financial verification, and general high-speed computing. Our performance obligation is to deliver an equipment package to our customers that includes hardware, software, and firmware and is drop-shipped to a hosting data center. We receive payment at the time of purchase and recognize revenue when the equipment package is delivered and ready for maintenance and hosting, which our customers arrange for, and obtain, from a separate third party that provides such services. Revenue generated for the year ended March 31, 2019, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 28,518,660 $ 698,954 $ 5,775,269 $ 34,992,883 Refunds, incentives, credits, and chargebacks (1,495,458 ) (4,000 ) (6,501 ) (1,505,959 ) Amounts paid to supplier - - (3,827,843 ) (3,827,843 ) Net revenue $ 27,023,202 $ 694,954 $ 1,940,925 $ 29,659,081 Revenue generated for the year ended March 31, 2018, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 14,758,614 $ - $ 8,885,798 $ 23,644,412 Refunds, incentives, credits, and chargebacks (859,035 ) - - (859,035 ) Amounts paid to supplier - - (4,867,945 ) (4,867,945 ) Net revenue $ 13,899,579 $ - $ 4,017,853 $ 17,917,432 |
Advertising, Selling, and Marketing Costs | Advertising, Selling, and Marketing Costs We expense advertising, selling, and marketing costs as incurred. Advertising, selling, and marketing costs include costs of promoting our product worldwide, including promotional events. Advertising, selling, and marketing expenses for the years ended March 31, 2019 and 2018, totaled $878,936 and $454,225, respectively. | |
Income Taxes | Income Taxes We have adopted ASC Subtopic 740-10, Income Taxes, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes consist primarily of derivative liability and stock compensation accounting versus basis differences. | |
Net Income (Loss) Per Share | Net Income (Loss) per Share We follow ASC subtopic 260-10, Earnings per Share (“ASC 260-10”), which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: December 31, December 31, Options to purchase common stock - 35,000 Warrants to purchase common stock 125,000 6,052,497 Notes convertible into common stock 11,080,447 - Totals 11,205,447 6,087,497 | Net Income (Loss) per Share We follow ASC Subtopic 260-10, Earnings per Share, which specifies the computation, presentation, and disclosure requirements of earnings per share information. Basic loss per share has been calculated based upon the weighted average number of common shares outstanding. Convertible debt, stock options, and warrants have been excluded as common stock equivalents in the diluted loss per share because their effect is anti-dilutive on the computation. Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: March 31, 2019 March 31, 2018 Convertible notes payable - - Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 5,052,497 6,169,497 Notes convertible into common stock 52,162,055 - Total 57,249,552 6,204,497 |
Lease Obligation | Lease Obligation We determine if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use asset account, the operating lease liability, current account, and the operating lease liability, long term account in our balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. We have elected the practical expedient and will not separate non-lease components from lease components and will instead account for |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Schedule of Exchange Rates | The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates. December 31, 2019 March 31, 2019 Euro to USD 1.12165 1.12200 Colombian Peso to USD n/a 0.00031 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods. Nine Months Ended December 31, 2019 2018 Euro to USD 1.11443 n/a Colombian Peso to USD n/a 0.00034 | The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates: March 31, March 31, Euro to USD 1.12200 n/a Colombian Peso to USD 0.00031 0.00036 The following rates were used to translate the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods: Year ended March 31, 2019 2018 Euro to USD 1.13580 n/a Colombian Peso to USD 0.00033 0.00034 |
Schedule of Fixed Assets | As of December 31, 2019 fixed assets were made up of the following: Estimated Useful Life (years) Value Furniture, fixtures, and equipment 10 $ 11,372 Computer equipment 3 19,533 Data processing equipment 3 4,166,470 4,197,375 Accumulated amortization as of December 31, 2019 (333,034 ) Net book value, December 31, 2019 $ 3,864,341 | Fixed assets are stated at cost and depreciated using the straight-line method over their estimated useful lives as follows: Furniture, fixtures, and equipment 10 years Computer equipment 3 years |
Schedule of Long-Lived Assets | Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships n/a - 991,000 Accumulated amortization as of December 31, 2019 (254,949 ) Net book value, December 31, 2019 $ 736,051 | Estimated Useful Life (years) Value FireFan mobile application 4 $ 331,000 Back office software 10 408,000 Tradename/trademark - FireFan 5 248,000 Tradename/trademark - United Games 0.45 4,000 Customer contracts/relationships 5 825,000 1,816,000 Accumulated amortization as of March 31, 2019 (239,315 ) Net book value, March 31, 2019 $ 1,576,685 |
Schedule of Amortization Expense | Amortization expense is expected to be as follows: Remainder of 2020 $ 43,169 Fiscal year ending March 31, 2021 173,150 Fiscal year ending March 31, 2022 173,150 Fiscal year ending March 31, 2023 115,338 Fiscal year ending March 31, 2024 55,748 Fiscal year ending March 31, 2025 and beyond 175,496 $ 736,051 | Amortization expense is expected to be as follows: Fiscal year ending March 31, 2020 $ 338,150 Fiscal year ending March 31, 2021 338,150 Fiscal year ending March 31, 2022 338,150 Fiscal year ending March 31, 2023 280,565 Fiscal year ending March 31, 2024 and beyond 281,670 $ 1,576,685 |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 156,448 $ - $ - $ 156,448 Total Assets $ 156,448 $ - $ - $ 156,448 Derivative liability $ - $ - $ 383,670 $ 383,670 Total Liabilities $ - $ - $ 383,670 $ 383,670 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ - $ 1,358,901 $ 1,358,901 Total Liabilities $ - $ - $ 1,358,901 $ 1,358,901 | Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 142,061 $ - $ - $ 142,061 Total Assets $ 142,061 $ - $ - $ 142,061 Derivative liability $ - $ 1,358,901 $ - $ 1,358,901 Total Liabilities $ - $ 1,358,901 $ - $ 1,358,901 Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2018: Level 1 Level 2 Level 3 Total Cryptocurrencies $ 480,370 $ - $ - $ 480,370 Total Assets $ 480,370 $ - $ - $ 480,370 Total Liabilities $ - $ - $ - $ - |
Schedule of Sale and Leaseback Transactions | During the nine months ended December 31, 2019 we had the following activity related to our sale and leaseback transactions: Proceeds from sales of APEX $ 9,693,141 Interest recognized on financial liability 877,352 Payments made for leased equipment (1,341,100 ) Total financial liability 9,229,393 Other current liabilities [1] (7,576,800 ) Other long-term liabilities $ 1,652,593 [1] Represents lease payments to be made in the next 12 months | |
Schedule of Revenue Generated | Revenue generated for the nine months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,214,747 $ - $ - $ 380,871 $ 9,486 $ 21,605,104 Refunds, incentives, credits, and chargebacks (1,887,656 ) - - - - (1,887,656 ) Amounts paid to supplier - - - - - - Net revenue $ 19,327,091 $ - $ - $ 380,871 $ 9,486 $ 19,717,448 Revenue generated for the nine months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 21,882,005 $ 698,954 $ 5,690,380 $ - $ - $ 28,271,389 Refunds, incentives, credits, and chargebacks (1,047,007 ) (4,000 ) (6,501 ) - - (1,057,508 ) Amounts paid to supplier - - (3,871,278 ) - - (3,871,278 Net revenue $ 20,835,048 $ 694,954 $ 1,812,601 $ - $ - $ 23,342,603 Revenue generated for the three months ended December 31, 2019 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 5,096,886 $ - $ - $ 380,871 $ 4,117 $ 5,481,874 Refunds, incentives, credits, and chargebacks (518,263 ) - - - - (518,263 ) Amounts paid to supplier - - - - - - Net revenue $ 4,578,623 $ - $ - $ 380,871 $ 4,117 $ 4,963,611 Revenue generated for the three months ended December 31, 2018 is as follows: Subscription Revenue Equipment Sales Cryptocurrency Mining Service Revenue Mining Revenue Fee Revenue Total Gross billings/receipts $ 7,204,415 $ 698,954 $ 40,779 $ - $ - $ 7,944,148 Refunds, incentives, credits, and chargebacks (200,613 ) (4,000 ) (6,501 ) - - (211,114 ) Amounts paid to supplier - - - - - - Net revenue $ 7,003,802 $ 694,954 $ 34,278 $ - $ - $ 7,773,034 | Revenue generated for the year ended March 31, 2019, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 28,518,660 $ 698,954 $ 5,775,269 $ 34,992,883 Refunds, incentives, credits, and chargebacks (1,495,458 ) (4,000 ) (6,501 ) (1,505,959 ) Amounts paid to supplier - - (3,827,843 ) (3,827,843 ) Net revenue $ 27,023,202 $ 694,954 $ 1,940,925 $ 29,659,081 Revenue generated for the year ended March 31, 2018, was as follows: Subscription Equipment Sales Cryptocurrency Total Gross billings $ 14,758,614 $ - $ 8,885,798 $ 23,644,412 Refunds, incentives, credits, and chargebacks (859,035 ) - - (859,035 ) Amounts paid to supplier - - (4,867,945 ) (4,867,945 ) Net revenue $ 13,899,579 $ - $ 4,017,853 $ 17,917,432 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: December 31, December 31, Options to purchase common stock - 35,000 Warrants to purchase common stock 125,000 6,052,497 Notes convertible into common stock 11,080,447 - Totals 11,205,447 6,087,497 | Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows: March 31, 2019 March 31, 2018 Convertible notes payable - - Options to purchase common stock 35,000 35,000 Warrants to purchase common stock 5,052,497 6,169,497 Notes convertible into common stock 52,162,055 - Total 57,249,552 6,204,497 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Schedule of Business Acquisition, Pro Forma Information | This pro forma information does not purport to represent what the actual results of our operations would have been had the acquisition occurred on this date nor does it purport to predict the results of operations for future periods: Year Ended March 31, 2019 2018 Revenues $ 27,961,351 $ 19,416,537 Net (loss) $ (5,288,735 ) $ (16,371,058 ) Loss per common share $ (0.00 ) $ (0.01 ) |
Wealth Generators [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase accounting for the fair value of the assets acquired and liabilities assumed at the date of the reverse acquisition: Cash $ 3,550 Receivables 150,000 Total assets acquired 153,550 Accounts payable and accrued liabilities 456,599 Due to former management 127,199 Debt 26,314 Total liabilities assumed [1] 610,112 Net liabilities assumed 456,562 Consideration [2] 662,047 Goodwill $ 1,118,609 [1] In conjunction with the reverse acquisition, we entered into an assignment and assumption agreement wherein we issued 24,914,348 shares of our common stock to Alpha Pro Asset Management Group, LLC (“Alpha Pro”), an entity affiliated with the prior members of management, in exchange for Alpha Pro’s assumption of $482,588 in liabilities. Accordingly, the shares issued for debt were accounted for the moment before the reverse acquisition, and the $482,588 in liabilities have been excluded from the total liabilities assumed shown here. [2] The fair value of the consideration effectively transferred was measured based on the fair value of 150,465,339 shares that were outstanding immediately before the transaction. Using the closing market price of $0.0044 per share on March 31, 2017, consideration was valued at $662,047. |
Acquisition of United Games, LLC and United League, LLC [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase accounting for the fair value of the assets acquired and liabilities assumed at the date of the acquisition and the gain on bargain purchase which resulted from the fair value of the intangible assets acquired exceeding the fair value of our common stock given as consideration: Cash $ 3,740 Receivables 361,345 Intangible assets (see Note 2) 1,816,000 Total assets acquired 2,181,085 Accounts payable and accrued liabilities 409,803 Total liabilities assumed 409,803 Net assets acquired 1,771,282 Consideration [1] 800,000 Gain on bargain purchase $ 971,282 [1] The 50,000,000 shares of our common stock transferred as consideration in accordance with the Purchase Agreement was valued on July 20, 2018, the date of acquisition, based on the weighted equity fair value of $0.016 per share as determined by a third party valuation firm. |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Schedule of Related Party Payables | Our related-party payables consisted of the following: December 31, March 31, Short-term advances [1] $ 668,608 $ 440,489 Short-term Promissory Note entered into on 8/17/18 [2] - 105,000 Convertible Promissory Note entered into on 7/23/19 [3] 903,285 - Accounts payable – related party [4] 75,000 - $ 1,646,893 $ 545,489 [1] We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. [2] A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. During the nine months ended December 31, 2019 we made repayments of $105,000 on the note. [3] We entered into a $3,600,000 convertible promissory note with a member of the senior management team on July 23, 2019. We received proceeds of $1,000,000 from the note, including $900,000 in cash and $100,000 which offset amounts owing to the lender. In accordance with the terms of the note we are required to repay a monthly minimum payment of $50,000 beginning January of 2020 through June of 2020 and a monthly minimum payment of $100,000 beginning July of 2020 until the total principal amount has been repaid. The lender has the right to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares of our common stock at a conversion price of $0.005 per share, subject to adjustment. During the nine months ended December 31, 2019 we recorded a beneficial conversion feature of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000 as a debt discount, representing the difference between the face value of the note and the proceeds received. During the nine months ended December 31, 2019 we amortized $903,285 of the debt discount into interest expense. [4] During the nine months ended December 31, 2019 we entered into an employment agreement with Jayme McWidener as our Chief Financial Officer. At the date we entered into the employment agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified as a related party accounts payable balance on our balance sheet. | Our related party payables consisted of the following: Year Ended March 31, 2019 2018 Short-term advances [1] $ 440,489 $ 1,880 Short-term promissory note entered into on 8/17/18 [2] 105,000 - $ 545,489 $ 1,880 [1] We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. [2] A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000, which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. |
Debt (Tables)
Debt (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Schedule of Debt | Our debt consisted of the following: December 31, 2019 March 31, 2019 Short-term advance received on 8/31/18 [1] $ 65,000 $ 75,000 Secured merchant agreement for future receivables entered into on 2/14/19 [2] - 641,687 Secured merchant agreement for future receivables entered into on 2/14/19 [3] - 468,790 Secured merchant agreements for future receivables entered into on 2/14/19 [4] - 597,060 Promissory note entered into on 1/16/19 [5] - 60,000 Secured merchant agreements for future receivables entered into on 3/28/19 [6] - 25,650 Convertible promissory note entered into on 1/11/19 [7] - 26,600 Convertible promissory note entered into on 2/6/19 [8] - 76,686 Convertible promissory note entered into on 3/14/19 [9] - 5,557 Secured merchant agreement for future receivables entered into on 8/16/19 and refinanced on 12/10/19 [10] 1,594,423 - Secured merchant agreement for future receivables entered into on 8/16/19 [11] 454,378 - Convertible promissory note entered into on 8/30/19 [12] 31,948 - Convertible promissory note entered into on 9/11/19 [13] 35,829 - $ 2,181,578 $ 1,977,030 [1] In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. During the nine months ended December 31, 2019 we made payments of $10,000 [2] During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we were required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $316,093 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $451,886 and amortized $126,292 into interest expense. [3] During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $297,033 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $413,580 and amortized $241,823 into interest expense. [4] During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $382,000 was rolled into a new debt arrangement, see notation [11] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $509,840 and amortized $294,780 into interest expense. [5] In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. During the nine months ended December 31, 2019, we repaid $60,000 of the amount due under the note. [6] During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. During the nine months ended December 31, 2019, we repaid $40,500 and amortized $14,850 into interest expense. [7] In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of April 11, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. During the nine months ended December 31, 2019, we amortized $114,848 into interest expense, recorded additional interest expense on the note of $40,977 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,425. [8] In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurred interest at 12% per annum, and had a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the “Returnable Shares”) to the note holder as a commitment fee, provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note had a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. During the nine months ended December 31, 2019, we amortized $197,486 into interest expense, recorded additional interest expense on the note of $11,136, and paid off the note and accrued interest for $285,308. In accordance with the terms of the agreement the 22,500,000 Returnable Shares were returned and cancelled (see Note 8). [9] In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of June 14, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. During the nine months ended December 31, 2019, we amortized $133,168 into interest expense, recorded additional interest expense on the note of $43,983 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,708. [10] During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On August 15, 2019, we received proceeds from this arrangement of $339,270 after paying off $316,093 from a February 2018 agreement (see notation [2] above) and $297,033 from a second February 2019 agreement (see notation [3] above). In accordance with the terms of the agreement, we were required to repay $1,399,000 by making daily ACH payments of $6,823. Accordingly, we recorded $446,604 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Effective December 10, 2019 this debt was refinanced and the outstanding balance of $839,514 was rolled into a new Secured Merchant Agreement for future receivables. During the nine months ended December 31, 2019, prior to the refinance, we repaid $559,486 and amortized $446,605 into interest expense related to the August 2019 arrangement. As a result of the refinancing arrangement we received proceeds of $854,801. In accordance with the terms of the agreement, we were required to repay $2,448,250 by making daily ACH payments of $10,999. Accordingly, we recorded $753,935 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, after the refinance, we repaid $153,986 and amortized $54,094 into interest expense related to the new December 2019 arrangement. [11] During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. In August 2019, we received proceeds from this arrangement of $418,381 after paying off $382,000 from a October 2018 agreement (see notation [4] above). In accordance with the terms of the agreement, we were required to repay $1,189,150 by making daily ACH payments of $5,801. Accordingly, we recorded $388,769 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, we repaid $533,750 and amortized $187,747 into interest expense. [12] In August 2019, we entered into a Convertible Promissory Note and received proceeds of $100,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of November 28, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $103,000 and captured loan fees, recorded as interest expense, of $69,048. During the nine months ended December 31, 2019, we amortized $27,783 into interest expense, and recorded additional interest expense on the note of $4,165. [13] In September 2019, we entered into a Convertible Promissory Note and received proceeds of $125,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of December 10, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $128,000 and captured loan fees, recorded as interest expense, of $53,573. During the nine months ended December 31, 2019, we amortized $31,158 into interest expense, and recorded additional interest expense on the note of $4,671. | Our debt consisted of the following: Year Ended March 31, 2019 2018 Revenue share agreement entered into on 6/28/16 [1] $ - $ 195,245 Short-term advance received on 8/31/18 [2] 75,000 - Secured merchant agreement for future receivables entered into on 2/14/19 [3] 641,687 - Secured merchant agreement for future receivables entered into on 2/14/19 [4] 468,790 - Secured merchant agreements for future receivables entered into on 2/14/19 [5] 597,060 - Promissory note entered into on 1/16/19 [6] 60,000 - Secured merchant agreements for future receivables entered into on 3/28/19 [7] 25,650 - Convertible promissory note entered into on 1/11/19 [8] 26,600 - Convertible promissory note entered into on 2/6/19 [9] 76,686 - Convertible promissory note entered into on 3/14/19 [10] 5,557 - $ 1,977,030 $ 195,245 [1] During April 2016, we entered into a Royalty Agreement, which was replaced with a Revenue Share Agreement dated June 28, 2016, which was amended in October of 2016. Cash receipts were received of $100,000, $150,000, and $250,000 on April 19, May 11, and June 29, 2016, respectively. In accordance with the terms of the final amended agreement, we are required to make payments of $25,000 per month or a 3% royalty for the previous month’s sales, whichever is greater, beginning February 15, 2017, until the lender has been repaid $600,000. During the year ended March 31, 2019, we repaid $195,245. [2] In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. [3] During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we are required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. [4] During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. [5] During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. [6] In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. Subsequent to January 16, 2019, we repaid $60,000 of the amount due under the note. [7] During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. [8] In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of April 11, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. [9] In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurs interest at 12% per annum, and has a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the “Returnable Shares”) to the note holder as a commitment fee (see Note 9), provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. [10] In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of June 14, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. |
Derivative Liability (Tables)
Derivative Liability (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of Derivative Liability | During the nine months ended December 31, 2019, we had the following activity in our derivative liability account: Derivative liability at March 31, 2019 $ 1,358,901 Derivative liability recorded on new instruments 1,206,139 Derivative liability reduced by debt settlement (1,676,735 ) Change in fair value (504,635 ) Derivative liability at December 31, 2019 $ 383,670 | During the year ended March 31, 2019, we had the following activity in our derivative liability account: Derivative liability at March 31, 2018 $ - Derivative liability recorded on new instruments 1,144,525 Change in fair value 214,376 Derivative liability at March 31, 2019 $ 1,358,901 |
Schedule of Assumptions Used in Binominal Option Pricing Model | During the nine months ended December 31, 2019, the assumptions used in our binomial option pricing model were in the following range: Risk free interest rate 1.53% - 2.13 % Expected life in years 0.03 - 1.25 Expected volatility 250% - 381 % | During the year ended March 31, 2019, the assumptions used in our binomial option pricing model were in the following range: Risk free interest rate 2.40% - 2.58 % Expected life in years 0.35 - 1.25 Expected volatility 222% - 268 % |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Summary of Changes in Employee Stock Options Outstanding and the Related Prices | The following table summarizes the changes in employee stock options outstanding and the related prices for the shares of our common stock issued to employees under two employee stock option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2019 35,000 $ 10.00 0.51 $ - Granted - $ - Exercised - $ - Canceled / expired (35,000 ) $ 10.00 Options outstanding at December 31, 2019 - $ - - $ - Options exercisable at December 31, 2019 - $ - - $ - | The following table summarizes the changes in employee stock options outstanding and the related prices for the shares of our common stock issued to employees under two employee stock option plans: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Life (years) Value Options outstanding at March 31, 2017 35,000 $ 10.00 2.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2018 35,000 $ 10.00 1.51 $ - Granted - $ - Exercised - $ - Canceled / expired - $ - Options outstanding at March 31, 2019 35,000 $ 10.00 0.51 $ - Options exercisable at March 31, 2019 35,000 $ 10.00 0.51 $ - |
Summary of Warrants Outstanding and Related Prices | The following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of December 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $ 1.50 125,000 0.46 $ 1.50 125,000 $ 1.50 | The following table summarizes the warrants outstanding and the related prices for the shares of our common stock as of March 31, 2019: Warrants Outstanding Warrants Exercisable Weighted Average Weighted Weighted Remaining Average Average Exercise Number Contractual Exercise Number Exercise Price Outstanding Life (Years) Price Exercisable Price $ 1.50 5,052,497 0.36 $ 1.50 5,052,497 $ 1.50 |
Summary of Warrants Issued | Transactions involving our warrant issuance are summarized as follows: Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted / restated - $ - Canceled - $ - Expired (1,117,000 ) $ 1.48 Warrants outstanding at March 31, 2019 5,052,497 $ 1.50 Granted - $ - Canceled - $ - Expired (4,927,497 ) $ 1.50 Warrants outstanding at December 31, 2019 125,000 $ 1.50 | Transactions involving our warrant issuance are summarized as follows: Weighted Number of Average Shares Exercise Price Warrants outstanding at March 31, 2017 6,534,810 $ 1.48 Granted / restated - $ - Canceled - $ - Expired (365,313 ) $ (1.18 ) Warrants outstanding at March 31, 2018 6,169,497 $ 1.50 Granted - $ - Canceled - $ - Expired (1,117,000 ) $ (1.48 ) Warrants outstanding at March 31, 2019 5,052,497 $ 1.50 |
Operating Lease (Tables)
Operating Lease (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows: Remainder of 2020 $ 14,897 2021 56,794 2022 48,000 2023 16,000 Total 135,691 Less: Interest (17,294 ) Present value of lease liability 118,397 Operating lease liability, current [1] (59,064 ) Operating lease liability, long term $ 59,333 [1] Represents lease payments to be made in the next 12 months |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consist of the following components as of March 31, 2019 and 2018: 2019 2018 Deferred tax assets: NOL carryover $ 2,363,900 $ 1,146,200 Amortization 209,100 335,600 Contingent Liability 49,100 45,000 Related party accruals 1,500 - Deferred tax liabilities Depreciation (1,200 ) (2,900 ) Valuation allowance (2,622,400 ) (1,523,900 ) Total long-term deferred income tax assets $ - $ - |
Schedule of Provision for Income Tax | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended March 31, 2019 and 2018, due to the following: 2019 2018 Book income (loss) $ (1,493,400 ) $ (4,473,900 ) Stock for services 32,800 2,048,200 Gain on settlement – derivative and equity derived - 955,900 Amortization (33,100 ) 313,200 Contingent liability (45,000 ) 45,000 Unrealized loss on cryptocurrency (31,900 ) 40,700 Meals and entertainment 12,400 6,200 Non-cash interest expense 315,800 5,700 Depreciation (7,200 ) (2,800 ) Related party accruals 1,500 (1,500 ) Related party accrued payroll 174,600 - Gain on bargain purchase (291,400 ) - Loss on value of derivative liabilities 64,300 - Stock issued for loan fees 21,000 - Amortization of prepaid paid for with equity 45,100 - Valuation allowance 1,234,500 1,063,300 Total long-term deferred income tax assets $ - $ - |
Organization and Nature of Bu_2
Organization and Nature of Business (Details Narrative) - USD ($) | Jul. 20, 2018 | Jun. 06, 2017 | Apr. 02, 2017 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2017 |
Entity incorporation, date of incorporation | Jan. 30, 1946 | Jan. 30, 1946 | ||||
Contribution Agreement [Member] | Wealth Generators, LLC [Member] | ||||||
Percentage on contributed shares | 100.00% | 100.00% | ||||
Number of shares exchanged for common stock | 1,358,670,942 | 1,358,670,942 | ||||
Acquisition Agreement [Member] | Market Trend Strategies, LLC [Member] | ||||||
Value pre-merger liabilities | $ 419,139 | |||||
Purchase Agreement [Member] | ||||||
Number of shares purchased | 50,000,000 | |||||
Purchase Agreement [Member] | United Games Marketing, LLC [Member] | ||||||
Number of shares purchased | 50,000,000 |
Organization and Nature of Bu_3
Organization and Nature of Business (Details Narrative) (10-K) - USD ($) | Jul. 20, 2018 | Jun. 06, 2017 | Apr. 02, 2017 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2017 |
Entity incorporation, date of incorporation | Jan. 30, 1946 | Jan. 30, 1946 | ||||
Contribution Agreement [Member] | Wealth Generators, LLC [Member] | ||||||
Percentage on contributed shares | 100.00% | 100.00% | ||||
Number of shares exchanged for common stock | 1,358,670,942 | 1,358,670,942 | ||||
Acquisition Agreement [Member] | Market Trend Strategies, LLC [Member] | ||||||
Value pre-merger liabilities | $ 419,139 | |||||
Purchase Agreement [Member] | ||||||
Number of shares purchased | 50,000,000 | |||||
Purchase Agreement [Member] | United Games Marketing, LLC [Member] | ||||||
Number of shares purchased | 50,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Apr. 02, 2019 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Gain on deconsolidation | $ 53,739 | |||||||
Other assets current | 156,448 | 156,448 | $ 142,061 | $ 480,370 | ||||
Realized (gain) loss on cryptocurrency | 10 | (1,091) | (657) | 16,363 | 16,241 | (10,939) | ||
Unrealized (gain) loss on cryptocurrency | 16,885 | 116 | (8,445) | (95,810) | (106,488) | 135,729 | ||
Depreciation expense | $ 320,528 | 4,126 | $ 5,332 | 2,639 | ||||
Annual amortization on intangible assets | 15 years | 15 years | ||||||
Amortization | $ 113,315 | 113,315 | $ 150,400 | |||||
Impairment | 627,452 | 627,452 | ||||||
Long-term license agreement | 1,869,905 | 1,869,905 | 1,983,220 | 2,133,620 | ||||
Customer advance | $ 607,205 | $ 607,205 | $ 265,000 | |||||
License Agreement [Member] | ||||||||
Number of shares issued during period | 80,000,000 | |||||||
Value of shares issued during period | $ 2,256,000 | |||||||
Agreement term | 15 years | |||||||
Amortization | $ 150,400 | |||||||
Kuvera LATAM S.A.S [Member] | ||||||||
Gain on deconsolidation | $ 53,739 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) (10-K) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Cash, FDIC Insured Amount | $ 250,000 | ||||||||
Cash balances exceeded FDIC limits | 0 | $ 1,095,329 | |||||||
Cash equivalents | |||||||||
Allowance for doubtful accounts | |||||||||
Fair value of cryptocurrencies | 142,061 | 480,370 | |||||||
Realized (gain) loss on cryptocurrency | $ 10 | $ (1,091) | $ (657) | $ 16,363 | 16,241 | (10,939) | |||
Unrealized (gain) loss on cryptocurrency | (16,885) | $ (116) | 8,445 | 95,810 | 106,488 | (135,729) | |||
Fixed assets, net of accumulated depreciation | 333,034 | 333,034 | 12,505 | 7,173 | |||||
Depreciation expense | $ 320,528 | 4,126 | $ 5,332 | 2,639 | |||||
Number of shares issued during period | 59,215,648 | ||||||||
Value of shares issued during period | $ 175,000 | $ 325,000 | $ 325,000 | $ 825,000 | 2,495,388 | ||||
Annual amortization on intangible assets | 15 years | 15 years | |||||||
Amortization | $ 113,315 | $ 113,315 | $ 150,400 | ||||||
Advertising, selling, and marketing expenses | 878,936 | 454,225 | |||||||
License Agreement [Member] | |||||||||
Number of shares issued during period | 80,000,000 | ||||||||
Value of shares issued during period | $ 2,256,000 | ||||||||
Agreement term | 15 years | ||||||||
Amortization | $ 150,400 | ||||||||
Long-Term License Agreement [Member] | |||||||||
Amortization | $ 1,983,220 | $ 2,133,620 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Exchange Rates (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Euro to USD [Member] | ||||
Exchange Rate at Balance Sheet Dates | 1.12165 | 1.12200 | ||
Exchange Rate for Operating Periods | 1.11443 | 1.13580 | ||
Colombian Peso to USD [Member] | ||||
Exchange Rate at Balance Sheet Dates | 0.00031 | 0.00036 | ||
Exchange Rate for Operating Periods | 0.00034 | 0.00033 | 0.00034 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Fixed Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property, plant and equipment, gross | $ 4,197,375 | ||
Accumulated amortization | (333,034) | $ (12,505) | $ (7,173) |
Net book value | $ 3,864,341 | $ 13,528 | $ 18,860 |
Furniture, Fixtures, and Equipment [Member] | |||
Estimated useful lives of fixed assets | 10 years | 10 years | |
Property, plant and equipment, gross | $ 11,372 | ||
Computer Equipment [Member] | |||
Estimated useful lives of fixed assets | 3 years | 3 years | |
Property, plant and equipment, gross | $ 19,533 | ||
Data Processing Equipment [Member] | |||
Estimated useful lives of fixed assets | 3 years | ||
Property, plant and equipment, gross | $ 4,166,470 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Long-Lived Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 28, 2019 | |
Estimated useful life | 15 years | 15 years | |
Long-lived intangible assets | $ 991,000 | $ 1,816,000 | |
Accumulated amortization | (254,949) | (239,315) | |
Net book value | $ 736,051 | $ 1,576,685 | |
FireFan Mobile Application [Member] | |||
Estimated useful life | 4 years | 4 years | |
Long-lived intangible assets | $ 331,000 | $ 331,000 | |
Back Office Software [Member] | |||
Estimated useful life | 10 years | 10 years | |
Long-lived intangible assets | $ 408,000 | $ 408,000 | |
Tradename/trademark - FireFan [Member] | |||
Estimated useful life | 5 years | 5 years | |
Long-lived intangible assets | $ 248,000 | $ 248,000 | |
Tradename/trademark - United Games [Member] | |||
Estimated useful life | 5 months 12 days | 5 months 12 days | |
Long-lived intangible assets | $ 4,000 | $ 4,000 | |
Customer Contracts/relationships [Member] | |||
Estimated useful life | 0 years | 5 years | |
Long-lived intangible assets | $ 825,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Accounting Policies [Abstract] | ||
Remainder of 2020 | $ 43,169 | |
Fiscal year ending March 31, 2021 | 173,150 | $ 338,150 |
Fiscal year ending March 31, 2022 | 173,150 | 338,150 |
Fiscal year ending March 31, 2023 | 115,338 | 280,565 |
Fiscal year ending March 31, 2024 | 55,748 | |
Fiscal year ending March 31, 2025 and beyond | 175,496 | 281,670 |
Total | $ 736,051 | $ 1,576,685 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) (10-K) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Accounting Policies [Abstract] | ||
Fiscal year ending March 31, 2020 | $ 338,150 | |
Fiscal year ending March 31, 2021 | $ 173,150 | 338,150 |
Fiscal year ending March 31, 2022 | 173,150 | 338,150 |
Fiscal year ending March 31, 2023 | 115,338 | 280,565 |
Fiscal year ending March 31, 2024 and beyond | 175,496 | 281,670 |
Total | $ 736,051 | $ 1,576,685 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Cryptocurrencies | $ 156,448 | $ 142,061 | $ 480,370 |
Total Assets | 156,448 | 142,061 | 480,370 |
Derivative liability | 383,670 | 1,358,901 | |
Total Liabilities | 383,670 | 1,358,901 | |
Level 1 [Member] | |||
Cryptocurrencies | 156,448 | 142,061 | 480,370 |
Total Assets | 156,448 | 142,061 | 480,370 |
Derivative liability | |||
Total Liabilities | |||
Level 2 [Member] | |||
Cryptocurrencies | |||
Total Assets | |||
Derivative liability | 1,358,901 | ||
Total Liabilities | 1,358,901 | ||
Level 3 [Member] | |||
Cryptocurrencies | |||
Total Assets | |||
Derivative liability | 383,670 | ||
Total Liabilities | $ 383,670 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Sale and Leaseback Transactions (Details) - USD ($) | 9 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | ||
Other current liabilities | $ (7,576,800) | ||
Other long-term liabilities | 1,652,593 | ||
Sale and Leaseback [Member] | |||
Proceeds from sales of APEX | 9,693,141 | ||
Interest recognized on financial liability | 877,352 | ||
Payments made for leased equipment | (1,341,100) | ||
Total financial liability | 9,229,393 | ||
Other current liabilities | [1] | (7,576,800) | |
Other long-term liabilities | $ 1,652,593 | ||
[1] | Represents lease payments to be made in the next 12 months |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Revenue Generated (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Gross billings/receipts | $ 5,481,874 | $ 7,944,148 | $ 21,605,104 | $ 28,271,389 | $ 34,992,883 | $ 23,644,412 |
Refunds, incentives, credits, and chargebacks | (518,263) | (211,114) | (1,887,656) | (1,057,508) | (1,505,959) | (859,035) |
Amounts paid to supplier | (3,871,278) | (3,827,843) | (4,867,945) | |||
Net revenue | 4,963,611 | 7,733,034 | 19,717,448 | 23,342,603 | 29,659,081 | 17,917,432 |
Subscription Revenue [Member] | ||||||
Gross billings/receipts | 5,096,886 | 7,204,415 | 21,214,747 | 21,882,005 | 28,518,660 | 14,758,614 |
Refunds, incentives, credits, and chargebacks | (518,263) | (200,613) | (1,887,656) | (1,047,007) | (1,495,458) | (859,035) |
Amounts paid to supplier | ||||||
Net revenue | 4,578,623 | 7,003,802 | 19,327,091 | 20,835,048 | 27,023,202 | 13,899,579 |
Equipment Sales [Member] | ||||||
Gross billings/receipts | 698,954 | 698,954 | 698,954 | |||
Refunds, incentives, credits, and chargebacks | (4,000) | (4,000) | (4,000) | |||
Amounts paid to supplier | ||||||
Net revenue | 694,954 | 694,954 | 694,954 | |||
Cryptocurrency Mining Revenue [Member] | ||||||
Gross billings/receipts | 40,779 | 5,690,380 | 5,775,269 | 8,885,798 | ||
Refunds, incentives, credits, and chargebacks | (6,501) | (6,501) | (6,501) | |||
Amounts paid to supplier | (3,871,278) | (3,827,843) | (4,867,945) | |||
Net revenue | 34,278 | 1,812,601 | $ 1,940,925 | $ 4,017,853 | ||
Mining Revenue [Member] | ||||||
Gross billings/receipts | 380,871 | 380,871 | ||||
Refunds, incentives, credits, and chargebacks | ||||||
Amounts paid to supplier | ||||||
Net revenue | 380,871 | 380,871 | ||||
Fee Revenue [Member] | ||||||
Gross billings/receipts | 4,117 | 9,486 | ||||
Refunds, incentives, credits, and chargebacks | ||||||
Amounts paid to supplier | ||||||
Net revenue | $ 4,117 | $ 9,486 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11,205,447 | 6,087,497 | 57,249,552 | 6,204,497 |
Options to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 35,000 | 35,000 | ||
Warrants to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 125,000 | 6,052,497 | 5,052,497 | 6,169,497 |
Notes Convertible into Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11,080,447 | 52,162,055 | ||
Convertible Notes Payable [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 35,000 |
Going Concern and Liquidity (De
Going Concern and Liquidity (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Accumulated deficit | $ 33,684,432 | $ 25,096,983 | $ 20,085,947 | |
Net loss | (8,587,449) | (5,011,036) | ||
Cash | 263,600 | 133,644 | 1,490,686 | |
Working capital deficit | 10,938,623 | 2,222,990 | ||
Proceeds from debt | 2,177,452 | $ 1,955,000 | 4,115,961 | 1,675,000 |
Proceeds from related parties | 2,164,500 | 1,480,777 | 1,905,777 | 498,380 |
Proceeds from the sale of stock | 825,000 | |||
Net cash provided by operation | $ 4,690,473 | $ (2,580,818) | $ (2,983,251) | $ (1,045,665) |
Going Concern and Liquidity (_2
Going Concern and Liquidity (Details Narrative) (10-K) - USD ($) | Apr. 02, 2019 | Feb. 12, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Accumulated deficit | $ 33,684,432 | $ 25,096,983 | $ 20,085,947 | |||
Net loss | (8,587,449) | (5,011,036) | ||||
Net cash used in operations | (4,690,473) | $ 2,580,818 | 2,983,251 | 1,045,665 | ||
Working capital deficit | 10,938,623 | 2,222,990 | ||||
Proceeds from related parties | 2,164,500 | 1,480,777 | 1,905,777 | 498,380 | ||
Proceeds from lending arrangements | 2,177,452 | $ 1,955,000 | $ 4,115,961 | $ 1,675,000 | ||
Proceeds from the sale of stock | $ 825,000 | |||||
Subsequent Event [Member] | ||||||
Proceeds from related parties | $ 1,070,000 | |||||
Proceeds from new lending arrangements | $ 200,000 | |||||
Proceeds from the sale of stock | $ 325,000 |
Acquisitions (Details Narrative
Acquisitions (Details Narrative) (10-K) - USD ($) | Jul. 20, 2018 | Apr. 02, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Net income (loss) | $ (3,827,928) | $ (479,976) | $ (8,587,449) | $ (1,005,298) | $ (5,011,036) | $ (14,913,016) | |||
United Games, LLC and United League, LLC [Member] | |||||||||
Combined revenue | $ 1,331,542 | ||||||||
Net income (loss) | $ 26,059 | ||||||||
Contribution Agreement [Member] | Wealth Generators, LLC [Member] | |||||||||
Percentage on contributed shares | 100.00% | 100.00% | |||||||
Number of shares exchanged for common stock | 1,358,670,942 | 1,358,670,942 | |||||||
Purchase Agreement [Member] | |||||||||
Common stock issued for acquisition | 50,000,000 | ||||||||
Purchase Agreement [Member] | United Games, LLC and United League, LLC [Member] | |||||||||
Common stock issued for acquisition | 50,000,000 | 50,000,000 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) (10-K) - USD ($) | Jul. 20, 2018 | Apr. 02, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Consideration | $ 662,047 | ||||||||
Gain on bargain purchase | $ 2,005,282 | $ 971,282 | |||||||
Wealth Generators [Member] | |||||||||
Cash | $ 3,550 | ||||||||
Receivables | 150,000 | ||||||||
Total assets acquired | 153,550 | ||||||||
Accounts payable and accrued liabilities | 456,599 | ||||||||
Due to former management | 127,199 | ||||||||
Debt | 26,314 | ||||||||
Total liabilities assumed | [1] | 610,112 | |||||||
Net liabilities assumed | 456,562 | ||||||||
Consideration | [2] | 662,047 | |||||||
Goodwill | $ 1,118,609 | ||||||||
United Games, LLC and United League, LLC [Member] | |||||||||
Cash | $ 3,740 | ||||||||
Receivables | 361,345 | ||||||||
Intangible assets | 1,816,000 | ||||||||
Total assets acquired | 2,181,085 | ||||||||
Accounts payable and accrued liabilities | 409,803 | ||||||||
Total liabilities assumed | 409,803 | ||||||||
Net assets acquired | 1,771,282 | ||||||||
Consideration | [3] | 800,000 | |||||||
Gain on bargain purchase | $ 971,282 | ||||||||
[1] | In conjunction with the reverse acquisition, we entered into an assignment and assumption agreement wherein we issued 24,914,348 shares of our common stock to Alpha Pro Asset Management Group, LLC ("Alpha Pro"), an entity affiliated with the prior members of management, in exchange for Alpha Pro's assumption of $482,588 in liabilities. Accordingly, the shares issued for debt were accounted for the moment before the reverse acquisition, and the $482,588 in liabilities have been excluded from the total liabilities assumed shown here. | ||||||||
[2] | The fair value of the consideration effectively transferred was measured based on the fair value of 150,465,339 shares that were outstanding immediately before the transaction. Using the closing market price of $0.0044 per share on March 31, 2017, consideration was valued at $662,047. | ||||||||
[3] | The 50,000,000 shares of our common stock transferred as consideration in accordance with the Purchase Agreement was valued on July 20, 2018, the date of acquisition, based on the weighted equity fair value of $0.016 per share as determined by a third party valuation firm. |
Acquisitions - Schedule of Re_2
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) (10-K) (Parenthetical) - USD ($) | Jul. 20, 2018 | Mar. 31, 2019 | Mar. 31, 2017 |
Fair value of consideration outstanding shares transferred | 150,465,339 | ||
Business acquisition, price per shares | $ 0.0044 | ||
Consideration value | $ 662,047 | ||
Assignment and Assumption Agreement [Member] | Alpha Pro Asset Management Group [Member] | |||
Number of common stock issued for the reversed acquisition | 24,914,348 | ||
Acquisition of business liabilities assumed | $ 482,588 | ||
Purchase Agreement [Member] | |||
Number of shares purchased | 50,000,000 | ||
Fair value of weighted equity price per shares | $ 0.016 |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisition, Pro Forma Information (Details) (10-K) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Combinations [Abstract] | ||
Revenues | $ 27,961,351 | $ 19,416,537 |
Net (loss) | $ (5,288,735) | $ (16,371,058) |
Loss per common share | $ 0 | $ (0.01) |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) (10-K) | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Computer Equipment [Member] | Chief Executive Officer [Member] | |
Proceeds from sale of equipment | $ 41,500 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Related Party Payables (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Aug. 17, 2018 | Mar. 31, 2018 | ||||
Related Party Transactions [Abstract] | ||||||||
Short-term advances | $ 668,608 | [1] | $ 440,489 | [2] | $ 100,000 | $ 1,880 | [2] | |
Short-term Promissory Note entered into on 8/17/18 | [3] | 105,000 | [4] | [4] | ||||
Convertible Promissory Note entered into on 7/23/19 | [5] | 903,285 | ||||||
Accounts payable - related party | [6] | 75,000 | ||||||
Total related party payable | $ 1,646,893 | $ 545,489 | $ 1,880 | |||||
[1] | We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. | |||||||
[2] | We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. | |||||||
[3] | A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. During the nine months ended December 31, 2019 we made repayments of $105,000 on the note. | |||||||
[4] | A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000, which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. | |||||||
[5] | We entered into a $3,600,000 convertible promissory note with a member of the senior management team on July 23, 2019. We received proceeds of $1,000,000 from the note, including $900,000 in cash and $100,000 which offset amounts owing to the lender. In accordance with the terms of the note we are required to repay a monthly minimum payment of $50,000 beginning January of 2020 through June of 2020 and a monthly minimum payment of $100,000 beginning July of 2020 until the total principal amount has been repaid. The lender has the right to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares of our common stock at a conversion price of $0.005 per share, subject to adjustment. During the nine months ended December 31, 2019 we recorded a beneficial conversion feature of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000 as a debt discount, representing the difference between the face value of the note and the proceeds received. During the nine months ended December 31, 2019 we amortized $903,285 of the debt discount into interest expense. | |||||||
[6] | During the nine months ended December 31, 2019 we entered into an employment agreement with Jayme McWidener as our Chief Financial Officer. At the date we entered into the employment agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified as a related party accounts payable balance on our balance sheet. |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Related Party Payables (Details) (Parenthetical) - USD ($) | Jul. 23, 2019 | Aug. 31, 2018 | Aug. 17, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |||||
Proceeds from related parties | $ 2,164,500 | $ 1,480,777 | $ 1,905,777 | $ 498,380 | ||||||||||
Repayments for related party debt | 1,754,500 | 996,169 | 1,367,168 | 1,316,500 | ||||||||||
Settlement of debt | $ 443,907 | 1,725,384 | 19,387 | 19,387 | (2,767,422) | |||||||||
Short-term promissory note advance funds | $ 100,000 | 668,608 | [1] | 668,608 | [1] | 440,489 | [2] | 1,880 | [2] | |||||
Debt instrument due date | Aug. 31, 2019 | |||||||||||||
Convertible promissory note | [3] | 903,285 | 903,285 | |||||||||||
Proceeds from convertible debt | 140,000 | |||||||||||||
Amortization of debt discount | 2,916,917 | $ 161,154 | 1,052,523 | |||||||||||
Accounts payable related party | [4] | 75,000 | 75,000 | |||||||||||
Mac Accounting Group, LLP [Member] | Employment Agreement [Member] | ||||||||||||||
Accounts payable related party | 75,000 | 75,000 | ||||||||||||
Short-term Promissory Note [Member] | ||||||||||||||
Interest incurred | $ 5,000 | |||||||||||||
Repayments for related party debt | 105,000 | |||||||||||||
Short-term promissory note advance funds | $ 100,000 | |||||||||||||
Debt instrument due date | Aug. 31, 2019 | Aug. 31, 2018 | ||||||||||||
Senior Management Team [Member] | ||||||||||||||
Convertible promissory note | $ 3,600,000 | |||||||||||||
Convertible Promissory Note [Member] | ||||||||||||||
Debt instrument, convertible, beneficial conversion feature | 1,000,000 | |||||||||||||
Debt discount, unamortized | $ 2,600,000 | 2,600,000 | ||||||||||||
Amortization of debt discount | 903,285 | |||||||||||||
Convertible Promissory Note [Member] | January of 2020 Through June of 2020 [Member] | ||||||||||||||
Repayments for related party debt | 50,000 | |||||||||||||
Convertible Promissory Note [Member] | July of 2020 [Member] | ||||||||||||||
Repayments for related party debt | 100,000 | |||||||||||||
Convertible Promissory Note [Member] | Lender [Member] | ||||||||||||||
Proceeds from convertible debt | 1,000,000 | |||||||||||||
Cash | 900,000 | |||||||||||||
Due to related party | 100,000 | |||||||||||||
Debt conversion, converted instrument, amount | $ 2,600,000 | |||||||||||||
Debt instrument, convertible, conversion price | $ 0.005 | |||||||||||||
Majority Shareholders and Other Related Parties [Member] | ||||||||||||||
Proceeds from related parties | 1,164,500 | |||||||||||||
Interest incurred | 714,999 | |||||||||||||
Repayments for related party debt | 1,649,500 | |||||||||||||
Settlement of debt | $ 1,880 | |||||||||||||
[1] | We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. | |||||||||||||
[2] | We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. | |||||||||||||
[3] | We entered into a $3,600,000 convertible promissory note with a member of the senior management team on July 23, 2019. We received proceeds of $1,000,000 from the note, including $900,000 in cash and $100,000 which offset amounts owing to the lender. In accordance with the terms of the note we are required to repay a monthly minimum payment of $50,000 beginning January of 2020 through June of 2020 and a monthly minimum payment of $100,000 beginning July of 2020 until the total principal amount has been repaid. The lender has the right to convert up to $2,600,000 of the outstanding and unpaid principal amount into shares of our common stock at a conversion price of $0.005 per share, subject to adjustment. During the nine months ended December 31, 2019 we recorded a beneficial conversion feature of $1,000,000 as a debt discount (see Note 8). Additionally, we recorded $2,600,000 as a debt discount, representing the difference between the face value of the note and the proceeds received. During the nine months ended December 31, 2019 we amortized $903,285 of the debt discount into interest expense. | |||||||||||||
[4] | During the nine months ended December 31, 2019 we entered into an employment agreement with Jayme McWidener as our Chief Financial Officer. At the date we entered into the employment agreement we owed her firm, Mac Accounting Group, LLP, $75,000, which was reclassified as a related party accounts payable balance on our balance sheet. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Payables (Details) (10-K) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Aug. 17, 2018 | Mar. 31, 2018 | |||
Related Party Transactions [Abstract] | |||||||
Short-term advances | $ 668,608 | [1] | $ 440,489 | [2] | $ 100,000 | $ 1,880 | [2] |
Short-term promissory note entered into on 8/17/18 | [3] | 105,000 | [4] | [4] | |||
Total related party payable | $ 1,646,893 | $ 545,489 | $ 1,880 | ||||
[1] | We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. | ||||||
[2] | We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. | ||||||
[3] | A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000 which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. During the nine months ended December 31, 2019 we made repayments of $105,000 on the note. | ||||||
[4] | A member of the senior management team advanced funds of $100,000 on August 17, 2018, under a short-term promissory note due to be repaid on August 31, 2018. On August 31, 2018 the note was amended to be due on demand or, in absence of a demand, due on August 31, 2019. The note had a fixed interest payment of $5,000, which was recorded as interest expense in the statement of operations during the year ended March 31, 2019. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Party Payables (Details) (10-K) (Parenthetical) - USD ($) | Jan. 16, 2019 | Aug. 31, 2018 | Aug. 17, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |||
Proceeds from debt | $ 2,177,452 | $ 1,955,000 | $ 4,115,961 | $ 1,675,000 | ||||||
Repayments for related party debt | 1,754,500 | $ 996,169 | 1,367,168 | 1,316,500 | ||||||
Short-term promissory note advance funds | $ 100,000 | 668,608 | [1] | 440,489 | [2] | $ 1,880 | [2] | |||
Debt instrument due date | Aug. 31, 2019 | |||||||||
Short-term Promissory Note [Member] | ||||||||||
Proceeds from debt | $ 1,000,000 | |||||||||
Interest incurred | 5,000 | |||||||||
Repayments for related party debt | $ 105,000 | |||||||||
Short-term promissory note advance funds | $ 100,000 | |||||||||
Debt instrument due date | Aug. 31, 2019 | Aug. 31, 2018 | ||||||||
Wealth Generators [Member] | ||||||||||
Proceeds from debt | 1,805,777 | |||||||||
Interest incurred | 15,000 | |||||||||
Repayments for related party debt | $ 1,382,168 | |||||||||
[1] | We periodically receive advances for operating funds from our current majority shareholders and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand and are unsecured. During the nine months ended December 31, 2019, we received $1,164,500 in cash proceeds from advances, incurred $714,999 in interest expense on the advances, and repaid related parties $1,649,500. Also during the nine months ended December 31, 2019 we settled $1,880 of amounts that were recorded as due prior to March 31, 2018. | |||||||||
[2] | We periodically receive advances for operating funds from our current majority shareholders (former members of Wealth Generators prior to the reverse acquisition) and other related parties, including entities that are owned, controlled, or influenced by our owners or management. These advances are due on demand, generally have no set interest rates associated with them, and are unsecured. During the year ended March 31, 2019, we received $1,805,777 in cash proceeds from advances, incurred $15,000 in interest, and repaid related parties a total of $1,382,168. |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Proceeds from short-term debt | $ 631,617 | $ 75,000 | $ 200,000 | $ 530,000 | ||
Proceeds from convertible promissory note | 140,000 | |||||
Interest expense | 30,000 | 51,000 | ||||
Cash payment | 230,000 | 581,000 | ||||
Interest expense amortized | 2,916,917 | $ 161,154 | $ 1,052,523 | |||
Convertible Note [Member] | ||||||
Interest expense | 45,094 | |||||
Interest expense amortized | 143,000 | |||||
Prepayment penalties | 188,094 | |||||
Short-term Debt One [Member] | ||||||
Proceeds from short-term debt | 100,000 | |||||
Short-term Debt Two [Member] | ||||||
Proceeds from short-term debt | 100,000 | |||||
Derivative Instrument [Member] | ||||||
Interest expense | 718,518 | |||||
Debt discount | $ 143,000 |
Debt - (Details Narrative) (10-
Debt - (Details Narrative) (10-K) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||||
Proceeds from short-term debt | $ 631,617 | $ 75,000 | $ 200,000 | $ 530,000 |
Interest expense | 30,000 | 51,000 | ||
Cash payment | $ 230,000 | $ 581,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | ||||
Debt | $ 2,181,578 | $ 1,977,030 | $ 195,245 | ||||
Short-term Advance Received on 8/31/18 [Member] | |||||||
Debt | 65,000 | [1] | 75,000 | [2] | [2] | ||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [3] | 641,687 | [4] | [4] | |||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [5] | 468,790 | [6] | [6] | |||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [7] | 597,060 | [8] | [8] | |||
Promissory Note Entered into on 1/16/19 [Member] | |||||||
Debt | [9] | 60,000 | [10] | [10] | |||
Secured Merchant Agreement for Future Receivables Entered into on 3/28/19 [Member] | |||||||
Debt | [11] | 25,650 | [12] | [12] | |||
Convertible promissory note entered into on 1/11/19 [Member] | |||||||
Debt | [13] | 26,600 | [13] | [14] | |||
Convertible promissory note entered into on 2/6/19 [Member] | |||||||
Debt | [15] | 76,686 | [15] | [16] | |||
Convertible Promissory Note Entered into on 3/14/19 [Member] | |||||||
Debt | [17] | 5,557 | |||||
Secured Merchant Agreement for Future Receivables Entered into on 8/16/19 and Refinanced on 12/10/19 [Member] | |||||||
Debt | [18] | 1,594,423 | |||||
Secured Merchant Agreement for Future Receivables Entered into on 8/16/19 [Member] | |||||||
Debt | [19] | 454,378 | |||||
Convertible promissory note entered into on 8/30/19 [Member] | |||||||
Debt | [20] | 31,948 | |||||
Convertible Promissory Note Entered into on 9/11/19 [Member] | |||||||
Debt | [21] | $ 35,829 | |||||
[1] | In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. During the nine months ended December 31, 2019 we made payments of $10,000 | ||||||
[2] | In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. | ||||||
[3] | During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we were required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $316,093 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $451,886 and amortized $126,292 into interest expense. | ||||||
[4] | During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we are required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. | ||||||
[5] | During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $297,033 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $413,580 and amortized $241,823 into interest expense. | ||||||
[6] | During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. | ||||||
[7] | During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $382,000 was rolled into a new debt arrangement, see notation [11] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $509,840 and amortized $294,780 into interest expense. | ||||||
[8] | During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. | ||||||
[9] | In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. During the nine months ended December 31, 2019, we repaid $60,000 of the amount due under the note. | ||||||
[10] | In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. Subsequent to January 16, 2019, we repaid $60,000 of the amount due under the note. | ||||||
[11] | During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. During the nine months ended December 31, 2019, we repaid $40,500 and amortized $14,850 into interest expense. | ||||||
[12] | During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. | ||||||
[13] | In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of April 11, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. During the nine months ended December 31, 2019, we amortized $114,848 into interest expense, recorded additional interest expense on the note of $40,977 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,425. | ||||||
[14] | In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurs interest at 12% per annum, and has a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the "Returnable Shares") to the note holder as a commitment fee (see Note 9), provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. | ||||||
[15] | In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurred interest at 12% per annum, and had a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the "Returnable Shares") to the note holder as a commitment fee, provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note had a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. During the nine months ended December 31, 2019, we amortized $197,486 into interest expense, recorded additional interest expense on the note of $11,136, and paid off the note and accrued interest for $285,308. In accordance with the terms of the agreement the 22,500,000 Returnable Shares were returned and cancelled (see Note 8). | ||||||
[16] | In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of June 14, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. | ||||||
[17] | In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of June 14, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. During the nine months ended December 31, 2019, we amortized $133,168 into interest expense, recorded additional interest expense on the note of $43,983 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,708. | ||||||
[18] | During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On August 15, 2019, we received proceeds from this arrangement of $339,270 after paying off $316,093 from a February 2018 agreement (see notation [2] above) and $297,033 from a second February 2019 agreement (see notation [3] above). In accordance with the terms of the agreement, we were required to repay $1,399,000 by making daily ACH payments of $6,823. Accordingly, we recorded $446,604 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Effective December 10, 2019 this debt was refinanced and the outstanding balance of $839,514 was rolled into a new Secured Merchant Agreement for future receivables. During the nine months ended December 31, 2019, prior to the refinance, we repaid $559,486 and amortized $446,605 into interest expense related to the August 2019 arrangement. As a result of the refinancing arrangement we received proceeds of $854,801. In accordance with the terms of the agreement, we were required to repay $2,448,250 by making daily ACH payments of $10,999. Accordingly, we recorded $753,935 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, after the refinance, we repaid $153,986 and amortized $54,094 into interest expense related to the new December 2019 arrangement. | ||||||
[19] | During August 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. In August 2019, we received proceeds from this arrangement of $418,381 after paying off $382,000 from a October 2018 agreement (see notation [4] above). In accordance with the terms of the agreement, we were required to repay $1,189,150 by making daily ACH payments of $5,801. Accordingly, we recorded $388,769 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the nine months ended December 31, 2019, we repaid $533,750 and amortized $187,747 into interest expense. | ||||||
[20] | In August 2019, we entered into a Convertible Promissory Note and received proceeds of $100,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of November 28, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $103,000 and captured loan fees, recorded as interest expense, of $69,048. During the nine months ended December 31, 2019, we amortized $27,783 into interest expense, and recorded additional interest expense on the note of $4,165. | ||||||
[21] | In September 2019, we entered into a Convertible Promissory Note and received proceeds of $125,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of December 10, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest trading prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $128,000 and captured loan fees, recorded as interest expense, of $53,573. During the nine months ended December 31, 2019, we amortized $31,158 into interest expense, and recorded additional interest expense on the note of $4,671. |
Debt - Schedule of Debt (Deta_2
Debt - Schedule of Debt (Details) (Parenthetical) | Sep. 11, 2019USD ($)Integer | Aug. 16, 2019USD ($) | Aug. 15, 2019USD ($) | Mar. 29, 2019USD ($) | Mar. 14, 2019USD ($)Integer | Feb. 28, 2019USD ($) | Feb. 15, 2019USD ($) | Feb. 06, 2019USD ($)Integershares | Jan. 16, 2019USD ($) | Jan. 11, 2019USD ($)Integer | Dec. 17, 2018USD ($) | Sep. 28, 2018USD ($) | Aug. 31, 2018 | Aug. 17, 2018 | Aug. 30, 2019USD ($)Integer | Feb. 28, 2019USD ($)Integershares | Jan. 31, 2019USD ($)Integer | Aug. 31, 2018USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Mar. 31, 2018USD ($) |
Proceeds from short-term debt | $ 631,617 | $ 75,000 | $ 200,000 | $ 530,000 | |||||||||||||||||||
Repayment of short-term debt | 511,617 | ||||||||||||||||||||||
Cash receipts | 2,177,452 | $ 1,955,000 | 4,115,961 | $ 1,675,000 | |||||||||||||||||||
Repayments for debt | $ 60,000 | 3,801,562 | 1,164,396 | 2,936,044 | 1,424,578 | ||||||||||||||||||
Interest expense amortized | 2,916,917 | $ 161,154 | 1,052,523 | ||||||||||||||||||||
Debt periodic payment | 230,000 | 581,000 | |||||||||||||||||||||
Proceeds form convertible promissory note | 140,000 | ||||||||||||||||||||||
Debt maturity date | Aug. 31, 2019 | ||||||||||||||||||||||
Interest expenses | 30,000 | 51,000 | |||||||||||||||||||||
Common stock value | 3,003,490 | 2,640,161 | $ 2,169,661 | ||||||||||||||||||||
Short-term Promissory Note [Member] | |||||||||||||||||||||||
Proceeds from short-term debt | 120,000 | 631,617 | |||||||||||||||||||||
Repayment of short-term debt | $ 511,617 | ||||||||||||||||||||||
Cash receipts | $ 1,000,000 | ||||||||||||||||||||||
Repayments for debt | 60,000 | ||||||||||||||||||||||
Debt instrument interest percentage | 0.00% | ||||||||||||||||||||||
Debt maturity date | Aug. 31, 2019 | Aug. 31, 2018 | |||||||||||||||||||||
Convertible Promissory Note One [Member] | |||||||||||||||||||||||
Interest expense amortized | 197,486 | 72,514 | |||||||||||||||||||||
Interest expenses | $ 11,136 | 4,172 | |||||||||||||||||||||
Issuance of common stock returnable shares as commitment fee | shares | 22,500,000 | ||||||||||||||||||||||
Accrued interest | $ 285,308 | ||||||||||||||||||||||
Convertible Promissory Note Two [Member] | |||||||||||||||||||||||
Interest expense amortized | 133,168 | 4,831 | |||||||||||||||||||||
Interest expenses | 43,983 | 726 | |||||||||||||||||||||
Prepayment penalties | 182,708 | ||||||||||||||||||||||
Convertible Promissory Notes Three [Member] | |||||||||||||||||||||||
Debt instrument interest percentage | 12.00% | ||||||||||||||||||||||
Debt discount | $ 103,000 | ||||||||||||||||||||||
Interest expense amortized | 27,783 | ||||||||||||||||||||||
Proceeds form convertible promissory note | 100,000 | ||||||||||||||||||||||
Loan fees | $ 3,000 | ||||||||||||||||||||||
Debt maturity date | Nov. 28, 2020 | ||||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | ||||||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | ||||||||||||||||||||||
Interest expenses | $ 69,048 | 4,165 | |||||||||||||||||||||
Convertible Promissory Note Four Member] | |||||||||||||||||||||||
Debt instrument interest percentage | 12.00% | ||||||||||||||||||||||
Debt discount | $ 128,000 | ||||||||||||||||||||||
Interest expense amortized | 31,158 | ||||||||||||||||||||||
Proceeds form convertible promissory note | 125,000 | ||||||||||||||||||||||
Loan fees | $ 3,000 | ||||||||||||||||||||||
Debt maturity date | Dec. 10, 2020 | ||||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | ||||||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | ||||||||||||||||||||||
Interest expenses | $ 53,573 | 4,671 | |||||||||||||||||||||
Secured Merchant Agreement [Member] | |||||||||||||||||||||||
Cash receipts | $ 28,500 | $ 73,801 | $ 349,851 | $ 380,000 | $ 570,000 | $ 77,260 | |||||||||||||||||
Repayments for debt | 45,000 | 909,350 | 489,650 | 559,600 | $ 839,400 | 451,886 | 141,372 | 699,500 | |||||||||||||||
Debt instrument interest percentage | 10.00% | ||||||||||||||||||||||
Debt discount | 16,500 | 152,391 | 139,799 | 179,600 | $ 269,400 | 224,500 | |||||||||||||||||
Transferring of amount owed | 233,501 | ||||||||||||||||||||||
Interest expense amortized | 126,292 | 26,100 | |||||||||||||||||||||
Debt periodic payment | $ 4,500 | 5,049 | $ 3,000 | $ 4,372 | |||||||||||||||||||
Debt outstanding balance | $ 316,093 | ||||||||||||||||||||||
Secured Merchant Agreement [Member] | Payments of First 30 Days [Member] | |||||||||||||||||||||||
Repayments for debt | 1,000 | ||||||||||||||||||||||
Secured Merchant Agreement [Member] | Payments Thereafter [Member] | |||||||||||||||||||||||
Repayments for debt | $ 2,999 | ||||||||||||||||||||||
New Secured Merchant Agreement [Member] | |||||||||||||||||||||||
Repayments for debt | $ 605,899 | ||||||||||||||||||||||
Transferring of amount owed | 233,501 | ||||||||||||||||||||||
Interest expense amortized | 269,400 | ||||||||||||||||||||||
New Secured Merchant Agreement One [Member] | |||||||||||||||||||||||
Repayments for debt | 39,993 | ||||||||||||||||||||||
Transferring of amount owed | 449,657 | ||||||||||||||||||||||
Interest expense amortized | 139,799 | ||||||||||||||||||||||
New Secured Merchant Agreement Two [Member] | |||||||||||||||||||||||
Repayments for debt | 138,000 | ||||||||||||||||||||||
Transferring of amount owed | 421,600 | ||||||||||||||||||||||
Interest expense amortized | 179,600 | ||||||||||||||||||||||
Secured Merchant Agreement One [Member] | |||||||||||||||||||||||
Cash receipts | 126,932 | ||||||||||||||||||||||
Repayments for debt | 840,000 | 413,580 | 129,388 | ||||||||||||||||||||
Debt discount | 291,468 | ||||||||||||||||||||||
Interest expense amortized | 241,823 | 49,646 | |||||||||||||||||||||
Debt periodic payment | 4,649 | ||||||||||||||||||||||
Debt outstanding balance | 297,033 | ||||||||||||||||||||||
New Secured Merchant Agreement Three [Member] | |||||||||||||||||||||||
Repayments for debt | 371,620 | ||||||||||||||||||||||
Transferring of amount owed | 327,880 | ||||||||||||||||||||||
Interest expense amortized | 224,500 | ||||||||||||||||||||||
Secured Merchant Agreement Two [Member] | |||||||||||||||||||||||
Cash receipts | 126,932 | ||||||||||||||||||||||
Repayments for debt | 629,550 | 509,840 | 157,410 | ||||||||||||||||||||
Debt discount | 224,410 | ||||||||||||||||||||||
Interest expense amortized | 294,780 | 61,330 | |||||||||||||||||||||
Debt periodic payment | $ 3,498 | ||||||||||||||||||||||
Debt outstanding balance | 382,000 | ||||||||||||||||||||||
Second Secured Merchant Agreement [Member] | |||||||||||||||||||||||
Cash receipts | $ 288,000 | ||||||||||||||||||||||
Repayments for debt | 419,700 | ||||||||||||||||||||||
Debt discount | $ 131,700 | 131,700 | |||||||||||||||||||||
Debt periodic payment | $ 2,332 | ||||||||||||||||||||||
Secured Merchant Agreement Three [Member] | |||||||||||||||||||||||
Repayments for debt | 40,500 | 4,500 | |||||||||||||||||||||
Interest expense amortized | 14,850 | 1,650 | |||||||||||||||||||||
Convertible Promissory Note [Member] | |||||||||||||||||||||||
Debt instrument interest percentage | 12.00% | 12.00% | 12.00% | 12.00% | |||||||||||||||||||
Debt discount | $ 30,000 | $ 138,000 | $ 30,000 | $ 138,000 | |||||||||||||||||||
Interest expense amortized | 114,848 | 23,152 | |||||||||||||||||||||
Proceeds form convertible promissory note | 135,000 | 240,000 | 135,000 | ||||||||||||||||||||
Loan fees | $ 3,000 | $ 3,000 | $ 3,000 | ||||||||||||||||||||
Debt maturity date | Apr. 11, 2020 | Aug. 6, 2019 | Apr. 11, 2020 | ||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | 65.00% | 65.00% | ||||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | 20 | 15 | ||||||||||||||||||||
Interest expenses | $ 450,005 | $ 120,128 | $ 450,005 | 40,977 | $ 3,448 | ||||||||||||||||||
Prepayment penalties | 182,425 | ||||||||||||||||||||||
Issuance of common stock returnable shares as commitment fee | shares | 22,500,000 | ||||||||||||||||||||||
Common stock value | 69,871 | $ 69,871 | |||||||||||||||||||||
Convertible Promissory Note [Member] | Common Stock [Member] | |||||||||||||||||||||||
Debt discount | $ 270,000 | $ 270,000 | |||||||||||||||||||||
Convertible Promissory Note One [Member] | |||||||||||||||||||||||
Debt instrument interest percentage | 12.00% | ||||||||||||||||||||||
Debt discount | $ 30,000 | ||||||||||||||||||||||
Proceeds form convertible promissory note | 240,000 | ||||||||||||||||||||||
Loan fees | $ 3,000 | ||||||||||||||||||||||
Debt maturity date | Aug. 6, 2019 | ||||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | ||||||||||||||||||||||
Conversion of lowest trading days | Integer | 20 | ||||||||||||||||||||||
Interest expenses | $ 120,128 | ||||||||||||||||||||||
Issuance of common stock returnable shares as commitment fee | shares | 22,500,000 | ||||||||||||||||||||||
Common stock value | $ 69,871 | ||||||||||||||||||||||
Convertible Promissory Note One [Member] | Common Stock [Member] | |||||||||||||||||||||||
Debt discount | $ 270,000 | ||||||||||||||||||||||
Convertible Promissory Note Two [Member] | |||||||||||||||||||||||
Debt instrument interest percentage | 12.00% | ||||||||||||||||||||||
Debt discount | $ 138,000 | ||||||||||||||||||||||
Proceeds form convertible promissory note | 135,000 | ||||||||||||||||||||||
Loan fees | $ 3,000 | ||||||||||||||||||||||
Debt maturity date | Jun. 14, 2020 | ||||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | ||||||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | ||||||||||||||||||||||
Interest expenses | $ 64,492 | ||||||||||||||||||||||
Secured Merchant Agreement Four [Member] | |||||||||||||||||||||||
Repayment of short-term debt | $ 316,093 | ||||||||||||||||||||||
Cash receipts | 339,270 | ||||||||||||||||||||||
Repayments for debt | 1,399,000 | ||||||||||||||||||||||
Debt discount | 446,604 | ||||||||||||||||||||||
Debt outstanding balance | 297,033 | ||||||||||||||||||||||
Secured Merchant Agreement Four [Member] | ACH Payments [Member] | |||||||||||||||||||||||
Repayments for debt | $ 6,823 | 2,448,250 | |||||||||||||||||||||
Debt periodic payment | 10,999 | ||||||||||||||||||||||
August 2019 Arrangement [Member] | |||||||||||||||||||||||
Proceeds from short-term debt | 839,514 | ||||||||||||||||||||||
Cash receipts | 854,801 | ||||||||||||||||||||||
Repayments for debt | 559,486 | ||||||||||||||||||||||
Debt discount | 446,605 | ||||||||||||||||||||||
New December 2019 Arrangement [Member] | |||||||||||||||||||||||
Repayments for debt | 153,986 | ||||||||||||||||||||||
Debt discount | 753,935 | ||||||||||||||||||||||
Interest expense amortized | 54,094 | ||||||||||||||||||||||
Secured Merchant Agreement Five [Member] | |||||||||||||||||||||||
Cash receipts | 418,381 | ||||||||||||||||||||||
Repayments for debt | 1,189,150 | 533,750 | |||||||||||||||||||||
Debt discount | 388,769 | ||||||||||||||||||||||
Interest expense amortized | 187,747 | ||||||||||||||||||||||
Debt periodic payment | $ 5,801 | ||||||||||||||||||||||
Short-term Debt [Member] | |||||||||||||||||||||||
Repayment of short-term debt | $ 10,000 |
Debt - Schedule of Debt (Deta_3
Debt - Schedule of Debt (Details) (10-K) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | ||||
Debt | $ 2,181,578 | $ 1,977,030 | $ 195,245 | ||||
Revenue Share Agreement Entered into on 6/28/2016 [Member] | |||||||
Debt | [1] | 195,245 | |||||
Short-term Advance Received on 8/31/18 [Member] | |||||||
Debt | 65,000 | [2] | 75,000 | [3] | [3] | ||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [4] | 641,687 | [5] | [5] | |||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [6] | 468,790 | [7] | [7] | |||
Secured Merchant Agreement for Future Receivables Entered into on 2/14/19 [Member] | |||||||
Debt | [8] | 597,060 | [9] | [9] | |||
Promissory Note Entered into on 1/16/19 [Member] | |||||||
Debt | [10] | 60,000 | [11] | [11] | |||
Secured Merchant Agreement for Future Receivables Entered into on 3/28/19 [Member] | |||||||
Debt | [12] | 25,650 | [13] | [13] | |||
Convertible promissory note entered into on 1/11/19 [Member] | |||||||
Debt | [14] | 26,600 | [14] | [15] | |||
Convertible promissory note entered into on 2/6/19 [Member] | |||||||
Debt | [16] | 76,686 | [16] | [17] | |||
Convertible Promissory Note Entered into on 3/14/19 [Member] | |||||||
Debt | [18] | $ 5,557 | |||||
Convertible Promissory Note Entered into on 1/11/19 [Member] | |||||||
Debt | [19] | ||||||
[1] | During April 2016, we entered into a Royalty Agreement, which was replaced with a Revenue Share Agreement dated June 28, 2016, which was amended in October of 2016. Cash receipts were received of $100,000, $150,000, and $250,000 on April 19, May 11, and June 29, 2016, respectively. In accordance with the terms of the final amended agreement, we are required to make payments of $25,000 per month or a 3% royalty for the previous month's sales, whichever is greater, beginning February 15, 2017, until the lender has been repaid $600,000. During the year ended March 31, 2019, we repaid $195,245. | ||||||
[2] | In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. During the nine months ended December 31, 2019 we made payments of $10,000 | ||||||
[3] | In August 2018, we received a $75,000 short-term advance. The advance is due on demand, has no interest rate, and is unsecured. | ||||||
[4] | During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we were required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $316,093 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $451,886 and amortized $126,292 into interest expense. | ||||||
[5] | During September 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On September 28, 2018, we received proceeds from this arrangement of $570,000. In accordance with the terms of the agreement, we were required to repay $839,400 by making ACH payments in the amount of 10% of our daily cash receipts. Accordingly, we recorded $269,400 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $233,501 of amounts owed to a new agreement. However, prior to the terminating the September agreement, we made payments of $605,899 and amortized $269,400 into interest expense. During January 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On January 11, 2019, we received proceeds from this arrangement of $349,851. In accordance with the terms of the agreement, we were required to repay $489,650 by making daily ACH payments of $1,000 for the first 30 days following the date of the agreement and daily ACH payments of $2,999 thereafter. Accordingly, we recorded $139,799 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $449,657 of amounts owed to a new agreement. However, prior to the terminating the January agreement, we made payments of $39,993 and amortized $139,799 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $73,801 after paying off $233,501 from a September 2018 agreement (see above) and $449,657 from a January 2019 agreement (see above). In accordance with the terms of the agreement, we are required to repay $909,350 by making daily ACH payments of $5,049. Accordingly, we recorded $152,391 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $141,372 and amortized $26,100 into interest expense. | ||||||
[6] | During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $297,033 was rolled into a new debt arrangement, see notation [10] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $413,580 and amortized $241,823 into interest expense. | ||||||
[7] | During December 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On December 17, 2018, we received proceeds from this arrangement of $380,000. In accordance with the terms of the agreement, we were required to repay $559,600 by making daily ACH payments of $3,000. Accordingly, we recorded $179,600 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $421,600 of amounts owed to a new agreement. However, prior to the terminating the December agreement, we made payments of $138,000 and amortized $179,600 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $421,600 from a December 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $840,000 by making daily ACH payments of $4,649. Accordingly, we recorded $291,468 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $129,388 and amortized $49,646 into interest expense. | ||||||
[8] | During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. Effective August 16, 2019 this debt was refinanced and the outstanding balance of $382,000 was rolled into a new debt arrangement, see notation [11] below. During the nine months ended December 31, 2019, prior to the refinance, we repaid $509,840 and amortized $294,780 into interest expense. | ||||||
[9] | During October 2018, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. During October 2018, we received proceeds from this arrangement of $77,260. In accordance with the terms of the agreement, we were required to repay $699,500 by making daily ACH payments of $4,372. Accordingly, we recorded $224,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. In February 2019 we replaced this agreement with a new Secured Merchant Agreement (see below), therefore transferring $327,880 of amounts owed to a new agreement. However, prior to the terminating the October agreement, we made payments of $371,620 and amortized $224,500 into interest expense. During February 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On February 15, 2019, we received proceeds from this arrangement of $126,932 after paying off $327,880 from an October 2018 agreement (see above). In accordance with the terms of the agreement, we are required to repay $629,550 by making daily ACH payments of $3,498. Accordingly, we recorded $224,410 as a debt discount at the inception of the agreement, which was the difference between the funds received plus the earlier debt paid off, and the amount that was to be repaid. Also during February 2019, we entered into a second Secured Merchant Agreement with this same entity, receiving proceeds of $288,000. In accordance with the terms of the agreement, we are required to repay $419,700 by making daily ACH payments of $2,332. Accordingly, we recorded $131,700 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $157,410 on these two agreements and amortized $61,330 into interest expense. | ||||||
[10] | In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. During the nine months ended December 31, 2019, we repaid $60,000 of the amount due under the note. | ||||||
[11] | In January 2019, we received funds of $631,617 and repaid $511,617 in a series of transactions representing short-term advances. On January 16, 2019, we entered into a short-term promissory note for the resulting $120,000 owed as a result of the transactions. The note had a zero percent interest rate and was due within the shorter of three months or the receipt of cash from a $1 million financing arrangement. Subsequent to January 16, 2019, we repaid $60,000 of the amount due under the note. | ||||||
[12] | During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. During the nine months ended December 31, 2019, we repaid $40,500 and amortized $14,850 into interest expense. | ||||||
[13] | During March 2019, we entered into a Secured Merchant Agreement for future receivables with an entity that provides quick access to working capital. On March 29, 2019, we received proceeds from this arrangement of $28,500. In accordance with the terms of the agreement, we were required to repay $45,000 by making daily ACH payments of $4,500. Accordingly, we recorded $16,500 as a debt discount at the inception of the agreement, which was the difference between the funds received and the amount that was to be repaid. During the year ended March 31, 2019, we repaid $4,500 and amortized $1,650 into interest expense. | ||||||
[14] | In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of April 11, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. During the nine months ended December 31, 2019, we amortized $114,848 into interest expense, recorded additional interest expense on the note of $40,977 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,425. | ||||||
[15] | In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurs interest at 12% per annum, and has a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the "Returnable Shares") to the note holder as a commitment fee (see Note 9), provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. | ||||||
[16] | In February 2019, we entered into a Convertible Promissory Note and received proceeds of $240,000. The note was issued with a $30,000 original issue discount and loan fees of $3,000, incurred interest at 12% per annum, and had a maturity date of August 6, 2019. In accordance with the terms of the note, we issued 22,500,000 shares of common stock (the "Returnable Shares") to the note holder as a commitment fee, provided, however, the Returnable Shares must be returned to us if the note is fully repaid and satisfied prior to the date which is 180 days following the issue date. The Convertible Promissory Note had a variable conversion rate that is 65% of the lowest trading price during the previous 20-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). We allocated the proceeds of the note to the common stock issued and to the fair value of the note, taking into consideration the fair value of the conversion feature. As a result, the common stock was valued at $69,871, we recorded a debt discount of $270,000, and captured loan fees, recorded as interest expense, of $120,128. During the year ended March 31, 2019, we recorded amortization of the debt discount of $72,514 into interest expense and recorded additional interest expense on the note of $4,172. During the nine months ended December 31, 2019, we amortized $197,486 into interest expense, recorded additional interest expense on the note of $11,136, and paid off the note and accrued interest for $285,308. In accordance with the terms of the agreement the 22,500,000 Returnable Shares were returned and cancelled (see Note 8). | ||||||
[17] | In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of June 14, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. | ||||||
[18] | In March 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurred interest at 12% per annum and had a maturity date of June 14, 2020. The Convertible Promissory Note had a variable conversion rate that was 65% of the average of the two lowest closing prices during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature was accounted for as a derivative instrument (see Note 7). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $64,492. During the year ended March 31, 2019, we recorded amortization of the debt discount of $4,831 into interest expense and recorded additional interest expense on the note of $726. During the nine months ended December 31, 2019, we amortized $133,168 into interest expense, recorded additional interest expense on the note of $43,983 (inclusive of a prepayment penalty), and paid off the note, accrued interest, and prepayment penalties for $182,708. | ||||||
[19] | In January 2019, we entered into a Convertible Promissory Note and received proceeds of $135,000 after incurring loan fees of $3,000. The note incurs interest at 12% per annum and has a maturity date of April 11, 2020. The Convertible Promissory Note has a variable conversion rate that is 65% of the lowest closing price during the previous 15-trading-day period, subject to adjustment. Therefore, the conversion feature is accounted for as a derivative instrument (see Note 8). At inception, we recorded a debt discount of $138,000 and captured loan fees, recorded as interest expense, of $450,005. During the year ended March 31, 2019, we recorded amortization of the debt discount of $23,152 into interest expense and recorded additional interest expense on the note of $3,448. |
Debt - Schedule of Debt (Deta_4
Debt - Schedule of Debt (Details) (10-K) (Parenthetical) | Mar. 29, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 15, 2019USD ($) | Jan. 16, 2019USD ($) | Jan. 11, 2019USD ($)Integer | Dec. 17, 2018USD ($) | Sep. 28, 2018USD ($) | Aug. 17, 2018 | Jun. 29, 2016USD ($) | May 11, 2016USD ($) | Apr. 19, 2016USD ($) | Mar. 31, 2019USD ($)Integer | Feb. 28, 2019USD ($)Integershares | Jan. 31, 2019USD ($)Integer | Aug. 31, 2018USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Mar. 31, 2018USD ($) |
Cash receipts | $ 2,177,452 | $ 1,955,000 | $ 4,115,961 | $ 1,675,000 | |||||||||||||||||
Repayments for debt | $ 60,000 | 3,801,562 | 1,164,396 | 2,936,044 | 1,424,578 | ||||||||||||||||
Proceeds from short-term debt | $ 631,617 | $ 75,000 | 200,000 | 530,000 | |||||||||||||||||
Interest expense amortized | 2,916,917 | $ 161,154 | 1,052,523 | ||||||||||||||||||
Repayment of short-term debt | $ 511,617 | ||||||||||||||||||||
Proceeds form convertible promissory note | 140,000 | ||||||||||||||||||||
Debt maturity date | Aug. 31, 2019 | ||||||||||||||||||||
Interest expenses | 30,000 | 51,000 | |||||||||||||||||||
Common stock value | $ 2,640,161 | 3,003,490 | 2,640,161 | $ 2,169,661 | |||||||||||||||||
Convertible Promissory Note Entered into on 2/6/19 [Member] | |||||||||||||||||||||
Interest expense amortized | 72,514 | ||||||||||||||||||||
Interest expenses | 4,172 | ||||||||||||||||||||
Convertible Promissory Note Entered into on 3/14/19 [Member] | |||||||||||||||||||||
Interest expense amortized | 4,831 | ||||||||||||||||||||
Interest expenses | 726 | ||||||||||||||||||||
Lender [Member] | |||||||||||||||||||||
Repayments for debt | $ 600,000 | ||||||||||||||||||||
Revenue Share Agreement Entered into on 6/28/2016 [Member] | |||||||||||||||||||||
Cash receipts | $ 250,000 | $ 150,000 | $ 100,000 | ||||||||||||||||||
Repayments for debt | $ 25,000 | 195,245 | |||||||||||||||||||
Royalty percentage | 3.00% | ||||||||||||||||||||
Secured Merchant Agreement [Member] | |||||||||||||||||||||
Cash receipts | $ 28,500 | $ 73,801 | $ 349,851 | $ 380,000 | $ 570,000 | $ 77,260 | |||||||||||||||
Repayments for debt | 45,000 | 909,350 | 489,650 | 559,600 | $ 839,400 | 451,886 | 141,372 | 699,500 | |||||||||||||
Debt instrument interest percentage | 10.00% | ||||||||||||||||||||
Debt discount | 16,500 | 152,391 | 139,799 | 179,600 | $ 269,400 | 224,500 | |||||||||||||||
Transferring of amount owed | 233,501 | ||||||||||||||||||||
Interest expense amortized | 126,292 | 26,100 | |||||||||||||||||||
Repayment to bank | $ 4,500 | 5,049 | $ 3,000 | $ 4,372 | |||||||||||||||||
Secured Merchant Agreement [Member] | Payments of First 30 Days [Member] | |||||||||||||||||||||
Repayments for debt | 1,000 | ||||||||||||||||||||
Secured Merchant Agreement [Member] | Payments Thereafter [Member] | |||||||||||||||||||||
Repayments for debt | $ 2,999 | ||||||||||||||||||||
New Secured Merchant Agreement [Member] | |||||||||||||||||||||
Repayments for debt | $ 605,899 | ||||||||||||||||||||
Transferring of amount owed | 233,501 | ||||||||||||||||||||
Interest expense amortized | 269,400 | ||||||||||||||||||||
New Secured Merchant Agreement One [Member] | |||||||||||||||||||||
Repayments for debt | 39,993 | ||||||||||||||||||||
Transferring of amount owed | 449,657 | ||||||||||||||||||||
Interest expense amortized | 139,799 | ||||||||||||||||||||
New Secured Merchant Agreement Two [Member] | |||||||||||||||||||||
Repayments for debt | 138,000 | ||||||||||||||||||||
Transferring of amount owed | 421,600 | ||||||||||||||||||||
Interest expense amortized | 179,600 | ||||||||||||||||||||
Secured Merchant Agreement One [Member] | |||||||||||||||||||||
Cash receipts | 126,932 | ||||||||||||||||||||
Repayments for debt | 840,000 | 413,580 | 129,388 | ||||||||||||||||||
Debt discount | 291,468 | ||||||||||||||||||||
Interest expense amortized | 241,823 | 49,646 | |||||||||||||||||||
Repayment to bank | 4,649 | ||||||||||||||||||||
New Secured Merchant Agreement Three [Member] | |||||||||||||||||||||
Repayments for debt | 371,620 | ||||||||||||||||||||
Transferring of amount owed | 327,880 | ||||||||||||||||||||
Interest expense amortized | 224,500 | ||||||||||||||||||||
Secured Merchant Agreement Two [Member] | |||||||||||||||||||||
Cash receipts | 126,932 | ||||||||||||||||||||
Repayments for debt | 629,550 | 509,840 | 157,410 | ||||||||||||||||||
Debt discount | 224,410 | ||||||||||||||||||||
Interest expense amortized | 294,780 | 61,330 | |||||||||||||||||||
Repayment to bank | $ 3,498 | ||||||||||||||||||||
Second Secured Merchant Agreement [Member] | |||||||||||||||||||||
Cash receipts | $ 288,000 | ||||||||||||||||||||
Repayments for debt | 419,700 | ||||||||||||||||||||
Debt discount | $ 131,700 | 131,700 | |||||||||||||||||||
Repayment to bank | $ 2,332 | ||||||||||||||||||||
Secured Merchant Agreement and Second Secured Merchant Agreement [Member] | |||||||||||||||||||||
Repayments for debt | 157,410 | ||||||||||||||||||||
Interest expense amortized | 61,330 | ||||||||||||||||||||
Financing Arrangement [Member] | |||||||||||||||||||||
Cash receipts | 1,000,000 | ||||||||||||||||||||
Proceeds from short-term debt | $ 120,000 | ||||||||||||||||||||
Debt instrument interest percentage | 0.00% | ||||||||||||||||||||
Secured Merchant Agreement Three [Member] | |||||||||||||||||||||
Repayments for debt | 40,500 | 4,500 | |||||||||||||||||||
Interest expense amortized | 14,850 | 1,650 | |||||||||||||||||||
Convertible Promissory Note Entered into on 1/11/19 [Member] | |||||||||||||||||||||
Debt instrument interest percentage | 12.00% | 12.00% | 12.00% | 12.00% | |||||||||||||||||
Debt discount | $ 30,000 | $ 138,000 | $ 30,000 | $ 138,000 | |||||||||||||||||
Interest expense amortized | 114,848 | 23,152 | |||||||||||||||||||
Proceeds form convertible promissory note | 135,000 | 240,000 | 135,000 | ||||||||||||||||||
Loan fees | $ 3,000 | $ 3,000 | $ 3,000 | ||||||||||||||||||
Debt maturity date | Apr. 11, 2020 | Aug. 6, 2019 | Apr. 11, 2020 | ||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | 65.00% | 65.00% | ||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | 20 | 15 | ||||||||||||||||||
Interest expenses | $ 450,005 | $ 120,128 | $ 450,005 | $ 40,977 | $ 3,448 | ||||||||||||||||
Issuance of common stock returnable shares as commitment fee | shares | 22,500,000 | ||||||||||||||||||||
Common stock value | 69,871 | $ 69,871 | |||||||||||||||||||
Convertible Promissory Note Entered into on 1/11/19 [Member] | Common Stock [Member] | |||||||||||||||||||||
Debt discount | $ 270,000 | $ 270,000 | |||||||||||||||||||
Convertible Promissory Note Entered into on 3/14/19 [Member] | |||||||||||||||||||||
Debt instrument interest percentage | 12.00% | 12.00% | |||||||||||||||||||
Debt discount | $ 138,000 | $ 138,000 | |||||||||||||||||||
Proceeds form convertible promissory note | 135,000 | ||||||||||||||||||||
Loan fees | $ 3,000 | ||||||||||||||||||||
Debt maturity date | Jun. 14, 2020 | ||||||||||||||||||||
Conversion of lowest trading percentage | 65.00% | ||||||||||||||||||||
Conversion of lowest trading days | Integer | 15 | ||||||||||||||||||||
Interest expenses | $ 64,492 |
Derivative Liability - Schedule
Derivative Liability - Schedule of Derivative Liability (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Derivative liability, beginning balance | $ 1,358,901 | |||||
Derivative liability recorded on new instruments | 1,206,139 | 1,144,525 | ||||
Derivative liability reduced by debt settlement | (1,676,735) | |||||
Change in fair value | $ 94,622 | (504,635) | 214,376 | |||
Derivative liability, ending balance | $ 383,670 | $ 383,670 | $ 1,358,901 |
Derivative Liability - Schedu_2
Derivative Liability - Schedule of Assumptions Used in Binominal Option Pricing Model (Details) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019Integer | |
Risk Free Interest Rate [Member] | Minimum [Member] | ||
Fair value measurements valuation techniques, percent | 1.53 | 2.40 |
Risk Free Interest Rate [Member] | Maximum [Member] | ||
Fair value measurements valuation techniques, percent | 2.13 | 2.58 |
Expected Life in Years [Member] | Minimum [Member] | ||
Fair value measurements valuation techniques, term | 11 days | 4 months 6 days |
Expected Life in Years [Member] | Maximum [Member] | ||
Fair value measurements valuation techniques, term | 1 year 2 months 30 days | 1 year 2 months 30 days |
Expected Volatility [Member] | Minimum [Member] | ||
Fair value measurements valuation techniques, percent | 250 | 222 |
Expected Volatility [Member] | Maximum [Member] | ||
Fair value measurements valuation techniques, percent | 381 | 268 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 16, 2009 | Dec. 31, 2007 | Mar. 31, 2007 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | |||||||||||||
Preferred stock, shares outstanding | |||||||||||||
Number of shares issued during period | 59,215,648 | ||||||||||||
Number of shares issued during period, value | $ 175,000 | $ 325,000 | $ 325,000 | $ 825,000 | $ 2,495,388 | ||||||||
Common stock average closing price | $ 0.02 | ||||||||||||
Accounts payable and accrued liabilities | $ 626,388 | ||||||||||||
Increase in additional paid-in capital | $ 101,387 | 525,000 | |||||||||||
Number of shares issued for employees for services and compensation, shares | 241,000,000 | ||||||||||||
Number of shares issued for employees for services and compensation | $ 3,865,500 | $ 6,727,235 | |||||||||||
Common stock issued for services and compensation | 1,160,524 | 1,515,915 | $ 10,000 | $ 6,787,600 | |||||||||
Number of common stock repurchased | $ 102 | $ 91,000 | $ 91,000 | ||||||||||
Reduction of common stock, value | 200,000 | 200,000 | |||||||||||
Reduction of additional paid on capital | 3,180,000 | 3,180,000 | |||||||||||
Reduction of prepaid assets | $ 3,380,000 | $ 3,380,000 | |||||||||||
Common stock, shares issued | 2,640,161,318 | 3,003,490,408 | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 | ||||||||
Common stock, shares outstanding | 2,640,161,318 | 3,003,490,408 | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 | ||||||||
Shares granted in period | |||||||||||||
Nonqualified Plan [Member] | |||||||||||||
Number of shares authorized | 65,000 | 65,000 | |||||||||||
Shares granted in period | 47,500 | 47,500 | |||||||||||
Qualified Plan [Member] | |||||||||||||
Number of shares authorized | 125,000 | ||||||||||||
Shares granted in period | 42,500 | 42,500 | |||||||||||
Joint Venture Agreement [Member] | |||||||||||||
Number of common stock cancelled, shares | 200,000,000 | ||||||||||||
Convertible Promissory Note [Member] | |||||||||||||
Number of common stock repurchased, shares | 5,150 | ||||||||||||
Number of common stock repurchased | $ 102 | ||||||||||||
Number of common stock cancelled, shares | 22,500,000 | ||||||||||||
Beneficial conversion feature | $ 1,000,000 | ||||||||||||
Employees [Member] | |||||||||||||
Number of shares issued for employees for services and compensation, shares | 285,618,592 | ||||||||||||
Number of shares issued for employees for services and compensation | $ 831,800 | ||||||||||||
Common stock issued for services and compensation | 1,844,639 | ||||||||||||
Remaining common stock issued to employees compensation | 2,020,861 | ||||||||||||
Reduction of common stock, value | $ 22,500 | $ 22,500 | |||||||||||
Stock based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Preferred Stock [Member] | Maximum [Member] | |||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Common Stock [Member] | |||||||||||||
Number of shares issued during period | 267,127,500 | ||||||||||||
Number of common stock repurchased, shares | 7,000,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) (10-K) - USD ($) | Jul. 20, 2018 | Mar. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 16, 2009 | Dec. 31, 2007 | Mar. 31, 2007 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Preferred stock, shares issued | |||||||||||||||
Preferred stock, shares outstanding | |||||||||||||||
Stock issued to an employee for compensation, values | $ 1,160,524 | $ 1,515,915 | $ 10,000 | $ 6,787,600 | |||||||||||
Prepaid assets | $ 6,685,970 | 3,619,317 | $ 3,619,317 | 6,685,970 | $ 3,555 | ||||||||||
Number of shares issued during period | 59,215,648 | ||||||||||||||
Number of shares issued during period, value | $ 175,000 | 325,000 | $ 325,000 | $ 825,000 | 2,495,388 | ||||||||||
Offering costs | $ 101,387 | 525,000 | (265,000) | ||||||||||||
Decrease in additional paid-in capital | $ 101,387 | 525,000 | |||||||||||||
Stock issued as commitment fee in conjunction with debt arrangement, value | $ 69,871 | ||||||||||||||
Stock issued as commitment fee in conjunction with debt arrangement | 22,500,000 | ||||||||||||||
Stock repurchased during period, value | $ 102 | $ 91,000 | $ 91,000 | ||||||||||||
Expenses for issuance of shares for services and license agreement | 6,846,060 | ||||||||||||||
Long-term license agreement | $ 2,133,620 | ||||||||||||||
Stock issued in settlement of debt | 239,575,884 | ||||||||||||||
Extinguishment of debt related to accrued liabilities amount | $ 435,892 | ||||||||||||||
Extinguishment of debt related to principal amount | 2,348,606 | ||||||||||||||
Extinguishment of debt related to accrued interest amount | 20,696 | ||||||||||||||
Extinguishment of debt related to derivative liabilities amount | 38,557 | ||||||||||||||
Loss on settlement of debt | 3,186,394 | ||||||||||||||
Gain on settlement of debt | $ 413,012 | ||||||||||||||
Stock issued for reverse acquisition | 1,358,670,942 | ||||||||||||||
Decrease in common stock | $ 251 | ||||||||||||||
Decrease in treasury stock | $ 8,589 | ||||||||||||||
Common stock average closing price | $ 0.02 | ||||||||||||||
Price protection guarantee | $ 626,388 | ||||||||||||||
Common stock, shares issued | 2,640,161,318 | 3,003,490,408 | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 | ||||||||||
Common stock, shares outstanding | 2,640,161,318 | 3,003,490,408 | 3,003,490,408 | 2,640,161,318 | 2,169,661,318 | ||||||||||
Shares granted in period | |||||||||||||||
Employees [Member] | |||||||||||||||
Stock issued to an employee for compensation, values | $ 1,844,639 | ||||||||||||||
Stock based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Nonqualified Plan [Member] | |||||||||||||||
Shares authorized | 65,000 | 65,000 | |||||||||||||
Shares granted in period | 47,500 | 47,500 | |||||||||||||
Qualified Plan [Member] | |||||||||||||||
Shares authorized | 125,000 | ||||||||||||||
Shares granted in period | 42,500 | 42,500 | |||||||||||||
Purchase Agreement [Member] | |||||||||||||||
Common stock issued for acquisition | 50,000,000 | ||||||||||||||
Purchase Agreement [Member] | United Games, LLC and United League, LLC [Member] | |||||||||||||||
Common stock issued for acquisition | 50,000,000 | 50,000,000 | |||||||||||||
Stock issued to an employee for compensation | 1,000,000 | 1,000,000 | |||||||||||||
Stock issued to an employee for compensation, values | $ 17,600 | $ 10,000 | |||||||||||||
Stock based compensation expense | 2,933 | $ 10,000 | |||||||||||||
Prepaid assets | 14,667 | $ 14,667 | |||||||||||||
Third Party Agreement [Member] | |||||||||||||||
Stock based compensation expense | $ 96,307 | ||||||||||||||
Number of shares issued during period | 400,000,000 | ||||||||||||||
Number of shares issued during period, value | $ 6,760,000 | ||||||||||||||
Forfeiture period | 5 years | ||||||||||||||
Common Stock Purchase Agreement [Member] | |||||||||||||||
Prepaid assets | $ 6,663,693 | $ 6,663,693 | |||||||||||||
Number of shares issued during period, value | $ 1,000,000 | ||||||||||||||
Offering costs, shares | 3,000,000 | ||||||||||||||
Offering costs | $ 3,000 | ||||||||||||||
Decrease in additional paid-in capital | $ 3,000 | ||||||||||||||
One-year Consulting Agreement [Member] | |||||||||||||||
Number of shares issued during period | 125,000 | ||||||||||||||
Number of shares issued during period, value | $ 7,500 | ||||||||||||||
15-year Lisence Agreement [Member] | |||||||||||||||
Number of shares issued during period | 80,000,000 | ||||||||||||||
Number of shares issued during period, value | $ 2,256,000 | ||||||||||||||
Consulting and Service Agreements [Member] | |||||||||||||||
Number of shares issued during period | 94,250,333 | ||||||||||||||
Number of shares issued during period, value | $ 6,719,734 | ||||||||||||||
Equity Distribution Agreement [Member] | |||||||||||||||
Offering costs, shares | 4,273,504 | ||||||||||||||
Offering costs | $ 4,274 | ||||||||||||||
Maximum cash advance in exchange of common stock | 5,000,000 | ||||||||||||||
Future commitment fees | 250,000 | ||||||||||||||
Due diligence costs | 15,000 | ||||||||||||||
Decrease in additional paid-in capital to offset any proceeds from future equity transactions | $ 269,274 | ||||||||||||||
Preferred Stock [Member] | Maximum [Member] | |||||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common Stock [Member] | |||||||||||||||
Number of shares issued during period | 267,127,500 | ||||||||||||||
Stock repurchased during period | 7,000,000 | ||||||||||||||
Cancellation of stock, shares | 250,000 | ||||||||||||||
Cancellation of treasury stock, shares | 1,300 | ||||||||||||||
Treasury Stock [Member] | |||||||||||||||
Stock issued to an employee for compensation, values | |||||||||||||||
Number of shares issued during period, value | |||||||||||||||
Offering costs | |||||||||||||||
Stock repurchased during period, value |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Summary of Changes in Employee Stock Options Outstanding and the Related Prices (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Number of Options Outstanding, Beginning | 35,000 | 35,000 | 35,000 |
Number of Options Outstanding, Granted | |||
Number of Options Outstanding, Exercised | |||
Number of Options Outstanding, Cancelled/expired | (35,000) | ||
Number of Options Outstanding, Outstanding, Ending | 35,000 | 35,000 | |
Number of Options, Exercisable | |||
Weighted Average Exercise Price Outstanding, Beginning | $ 10 | $ 10 | $ 10 |
Weighted Average Exercise Price Outstanding, Granted | |||
Weighted Average Exercise Price Outstanding, Exercised | |||
Weighted Average Exercise Price Outstanding, Cancelled/expired | 10 | ||
Weighted Average Exercise Price Outstanding, Ending | 10 | $ 10 | |
Weighted Average Exercise Price, Exercisable | |||
Weighted Average Remaining Contractual Life Outstanding, Beginning | 1 year 6 months 3 days | 2 years 6 months 3 days | |
Weighted Average Remaining Contractual Life Outstanding, Ending | 0 years | 6 months 3 days | 1 year 6 months 3 days |
Weighted Average Remaining Contractual Life, Exercisable | 0 years | 6 months 3 days | |
Aggregate Intrinsic Value Outstanding, Beginning | |||
Aggregate Intrinsic Value Outstanding, Ending | |||
Aggregate Intrinsic Value, Exercisable |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) - Summary of Warrants Outstanding and Related Prices (Details) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||||
Warrants Outstanding, Exercise Price | $ 1.50 | $ 1.50 | ||
Warrants Outstanding, Number Outstanding | 125,000 | 5,052,497 | 6,169,497 | 6,534,810 |
Warrants Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 months 16 days | 4 months 9 days | ||
Warrants Outstanding, Weighted Average Exercise Price | $ 1.50 | $ 1.50 | ||
Warrants Exercisable, Number Exercisable | 125,000 | 5,052,497 | ||
Warrants Exercisable, Weighted Average Exercise Price | $ 1.50 | $ 1.50 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) - Summary of Warrants Issued (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | |||
Number of Warrants Outstanding, Beginning | 5,052,497 | 6,169,497 | 6,534,810 |
Number of Warrants Granted/restated | |||
Number of Warrants Canceled | |||
Number of Warrants Expired | (4,927,497) | (1,117,000) | (365,313) |
Number of Warrants Outstanding, Ending | 125,000 | 5,052,497 | 6,169,497 |
Weighted Average Exercise Price Outstanding, Beginning | $ 1.50 | $ 1.50 | $ 1.48 |
Weighted Average Exercise Price Granted | |||
Weighted Average Exercise Price Canceled | |||
Weighted Average Exercise Price Expired | 1.50 | (1.48) | (1.18) |
Weighted Average Exercise Price Outstanding, Ending | $ 1.50 | $ 1.50 | $ 1.50 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Feb. 28, 2018 | |
CFTC [Member] | ||
Loss contingency amount | $ 150,000 | |
Fibernet Corp [Member] | ||
Settlement amount | $ 35,160 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) (10-K) - USD ($) | Jan. 02, 2019 | Jul. 12, 2018 | Dec. 31, 2018 | Feb. 28, 2018 | Dec. 31, 2019 | Mar. 31, 2019 |
CFTC [Member] | ||||||
Loss contingency fine amount | $ 150,000 | $ 90,000 | ||||
Kuvera, LLC [Member] | ||||||
Wages claim amount | $ 6,500 | |||||
Damages seeking value | $ 20,000 | |||||
Settlement amount | $ 1,500 | |||||
Fibernet Corp [Member] | ||||||
Settlement amount | $ 35,160 | |||||
Fibernet Corp [Member] | June 2019 [Member] | ||||||
Settlement amount | $ 35,160 | |||||
Settlement Agreement [Member] | ||||||
Donation to charity | $ 5,000 |
Operating Lease (Details Narrat
Operating Lease (Details Narrative) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2019USD ($)ft² | Dec. 31, 2019USD ($)ft² | Mar. 31, 2019USD ($) | |
Variable lease costs | $ 831 | $ 1,385 | |
Operating lease liabilities | 118,397 | 118,397 | |
Operating lease right-of-use asset | 112,564 | 112,564 | |
Operating lease expense | 16,397 | 24,630 | |
Operating cash flow lease for operating leases | $ 12,897 | $ 18,797 | |
Operating lease weighted average remaining lease term | 2 years 4 months 2 days | 2 years 4 months 2 days | |
Operating lease weighted average discount rate | 12.00% | 12.00% | |
Eatontown New Jersey [Member] | |||
Operating lease liabilities | $ 110,097 | $ 110,097 | |
Kaysville Lease [Member] | |||
Operating lease right-of-use asset | $ 21,147 | $ 21,147 | |
Eatontown New Jersey and Kaysville Utah [Member] | |||
Area of land | ft² | 1.75 | 1.75 | |
Operating lease terms | 3 years | 3 years |
Operating Lease - Schedule of F
Operating Lease - Schedule of Future Minimum Lease Payments Under Non-cancellable Leases (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | |
Leases [Abstract] | |||
Remainder of 2020 | $ 14,897 | ||
2021 | 56,794 | ||
2022 | 48,000 | ||
2023 | 16,000 | ||
Total | 135,691 | ||
Less: Interest | (17,294) | ||
Present value of lease liability | 118,397 | ||
Operating lease liability, current | (59,064) | [1] | |
Operating lease liability, long term | $ 59,333 | ||
[1] | Represents lease payments to be made in the next 12 months |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) (10-K) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 30.00% | |||
Net operating loss carryforwards | $ 7,880,000 | |||
Future taxable income term description | Future taxable income for the year 2020 through 2039. | |||
Acquisition offset future income | $ 13,837 | |||
Tax benefit from continuing or discontinued operations | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | ||||
Income taxes | $ 9,580 | $ 44,844 | $ 70,768 | $ 24,589 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (10-K) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, NOL carryover | $ 2,363,900 | $ 1,146,200 |
Deferred tax assets, Amortization | 209,100 | 335,600 |
Deferred tax assets, Contingent Liability | 49,100 | 45,000 |
Deferred tax assets, Related party accruals | 1,500 | |
Deferred tax liabilities, Depreciation | (1,200) | (2,900) |
Deferred tax liabilities. Valuation allowance | (2,622,400) | (1,523,900) |
Total long-term deferred income tax assets |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax (Details) (10-K) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Book income (loss) | $ (1,493,400) | $ (4,473,900) |
Stock for services | 32,800 | 2,048,200 |
Gain on settlement - derivative and equity derived | 955,900 | |
Amortization | (33,100) | 313,200 |
Contingent liability | (45,000) | 45,000 |
Unrealized loss on cryptocurrency | (31,900) | 40,700 |
Meals and entertainment | 12,400 | 6,200 |
Non-cash interest expense | 315,800 | 5,700 |
Depreciation | (7,200) | (2,800) |
Related party accruals | 1,500 | (1,500) |
Related party accrued payroll | 174,600 | |
Gain on bargain purchase | (291,400) | |
Loss on value of derivative liabilities | 64,300 | |
Stock issued for loan fees | 21,000 | |
Amortization of prepaid paid for with equity | 45,100 | |
Valuation allowance | 1,234,500 | 1,063,300 |
Total long-term deferred income tax assets |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 27, 2020 | Feb. 12, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Proceeds from related party | $ 2,164,500 | $ 1,480,777 | $ 1,905,777 | $ 498,380 | ||
Number of common stock shares issued for services | 241,000,000 | |||||
Proceeds from convertible promissory note | $ 140,000 | |||||
Subsequent Event [Member] | ||||||
Proceeds from related party | $ 1,070,000 | |||||
Number of common stock shares issued for services | 10,000,000 | |||||
Subsequent Event [Member] | DBR Capital, LLC [Member] | Securities Purcahse Agreeement [Member] | ||||||
Debt instrument principal amount | $ 1,300,000 | |||||
Subsequent Event [Member] | Convertible Note [Member] | DBR Capital, LLC [Member] | Securities Purcahse Agreeement [Member] | ||||||
Debt instrument principal amount | 1,300,000 | |||||
Proceeds from convertible promissory note | 700,000 | |||||
Purchase of additional convertible notes | $ 9,000,000 |
Subsequent Events (Details Na_2
Subsequent Events (Details Narrative) (10-K) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Jan. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Proceeds from short-term promissory notes | $ 631,617 | $ 75,000 | $ 200,000 | $ 530,000 | ||||||||
Lease monthly rent amount | $ 16,397 | $ 24,630 | ||||||||||
Number of shares issued during period | 59,215,648 | |||||||||||
Number of shares issued during period, value | $ 175,000 | $ 325,000 | $ 325,000 | $ 825,000 | $ 2,495,388 | |||||||
Triton Funds LP [Member] | ||||||||||||
Number of shares issued during period, value | $ 325,000 | |||||||||||
Subsequent Event [Member] | Triton Funds LP [Member] | ||||||||||||
Number of shares issued during period | 39,215,648 | 39,215,648 | ||||||||||
Number of shares issued during period, value | $ 325,000 | |||||||||||
Subsequent Event [Member] | Office Lease Agreement [Member] | ||||||||||||
Lease agreement, term | 3 years | 3 years | ||||||||||
Subsequent Event [Member] | Office Lease Agreement [Member] | Months One Through Six [Member] | ||||||||||||
Lease monthly rent amount | $ 2,500 | |||||||||||
Subsequent Event [Member] | Office Lease Agreement [Member] | Months Six Through 12 [Member] | ||||||||||||
Lease monthly rent amount | 3,500 | |||||||||||
Subsequent Event [Member] | Office Lease Agreement [Member] | Months 13 Through 36 [Member] | ||||||||||||
Lease monthly rent amount | $ 4,000 | |||||||||||
Subsequent Event [Member] | Short-term Promissory Note One [Member] | ||||||||||||
Proceeds from short-term promissory notes | 200,000 | |||||||||||
Subsequent Event [Member] | Short-term Promissory Note Two [Member] | ||||||||||||
Proceeds from short-term promissory notes | $ 200,000 |