| Summary of Significant Accounting Policies | Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements were prepared
in conformity with generally accepted accounting principles in the United States of America (“US GAAP”). Use of Estimates The preparation of financial statements in conformity
with US GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates. Significant estimates include accounts payable, the recoverability
of long-term assets, and the valuation of derivative liabilities. Consolidation The consolidated financial statements of the Company
include the Company and its wholly owned subsidiary, Purge Virus, LLC. All material intercompany balances and transactions have been eliminated
in consolidation. Cash Cash consists of deposits in one large national bank.
On March 31, 2021 and December 31, 2020, respectively, the Company had $269,002 and $12,069 in cash in the United States. The Company
has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. Fair Value of Financial Instruments For certain of the Company’s financial instruments,
including cash accounts payable, accrued liabilities, short-term debt, and derivative liability, the carrying amounts approximate their
fair values due to their short maturities. We adopted ASC Topic 820, “Fair Value Measurements and Disclosures,”, which requires
disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines
fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements
for fair value measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial
instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments
and their expected realization and their current market rate of interest. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level
3 measurements). The three levels of valuation hierarchy are defined as follows: Level 1 input to the valuation methodology are quoted
prices for identical assets or liabilities in active markets. The Company’s investment in Mobicard Inc., see Note 4, is actively
traded on the pink sheets. Level 2 inputs to the valuation methodology include
quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either
directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable
in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from
valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company’s analyses of all financial instruments
with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. We have recorded the conversion option on notes as
a derivative liability because of the variable conversion price, which in accordance with U.S. GAAP, prevents them from being considered
as indexed to our stock and qualified for an exception to derivative accounting. We recognize derivative instruments as either assets
or liabilities on the accompanying balance sheets at fair value. We record changes in the fair value of the derivatives in the accompanying
statement of operations. Assets and liabilities measured at fair value are
as follows as of March 31,2021:
Total Level 1 Level 2 Level 4
Assets
Investments 168,000 168,000
Total assets measured at fair value 168,000 168,000
Liabilities
Derivative liability 2,209,605 2,209,605
Total liabilities measured at fair value 2,209,605 2,209,605 Assets and liabilities measured at fair value are
as follows as of December 31, 2020:
Total Level 1 Level 2 Level 4
Assets
Investments 168,000 168,000
Total assets measured at fair value 168,000 168,000
Liabilities
Derivative liability 834,230 834,230
Total liabilities measured at fair value 834,230 834,230 The following is a reconciliation of the derivative
liability for which Level 3 inputs were used in determining the approximate fair value:
Balance as of December 31, 2019 $ 893,171
Fair value of derivative liabilities 266,068
Loss on conversion (483,793 )
Gain on change in derivative liabilities 158,784
Balance as of December 31, 2020 $ 834,230
Balance as of December 31, 2020 $ 834,230
Fair value of derivative liabilities 2,750,749
Loss on conversion (1,375,374 )
Gain on change in derivative liabilities 0
Balance as of March 31, 2021 $ 2,209,605 Earnings Per Share (EPS) Basic EPS is computed by dividing income available
to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to
basic net income per share except that the denominator is increased to include the number of additional common shares that would have
been outstanding if all the potential common shares, warrants and stock options had been issued and if the additional common shares were
dilutive. Diluted EPS assumes that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed
by applying the treasury stock method for the outstanding options and the if-converted method for the outstanding convertible preferred
shares. Under the treasury stock method, options and warrants are assumed to be exercised at the beginning of the period (or at the time
of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.
Under the if-converted method, convertible outstanding instruments are assumed to be converted into common stock at the beginning of the
period (or at the time of issuance, if later). During the year ended December 31, 2020 and 2019, the Company generated no revenues and
incurred substantial losses, of which the vast majority were due to mostly non-cash charges for accrued interest, penalties and derivative
charges related to convertible debt instruments. Therefore, the effect of any common stock equivalents on EPS is anti-dilutive during
those periods. Concentration of Credit Risk Cash is mainly maintained by one highly qualified
institution in the United States. At no time were such amounts more than federally insured limits. Management does not believe that the
Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company
has not experienced any losses on our deposits of cash. Income Taxes The Company utilizes FASB Accounting Standards Codification
(ASC) Topic 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that were included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the
tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts
at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to
affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be
realized. ASC 740 provides accounting and disclosure guidance
about positions taken by an organization in its tax returns that might be uncertain. When tax returns are filed, it is likely that some
positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits
of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in
the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that
the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken
are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured
as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing
authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected
as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that
would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest
expense and penalties are classified in selling, general and administrative expenses in the statements of income. On March 31, 2021 and December 31, 2020, the Company
had not taken any significant uncertain tax positions on its tax returns for the period ended December 31, 2020 and prior years or in
computing its tax provisions for any years. Prior management considered its tax positions, and believed that all of the positions taken
by the Company in its Federal and State tax returns were more likely than not to be sustained upon examination. The Company is subject
to examination by U.S. Federal and State tax authorities from inception to present, generally for three years after they are filed. New
management, which took control of the Company on March 5, 2019, has filed federal and state taxes in California, Illinois and Pennsylvania
as required and had brought the Company current in all regards. Concentration of Credit Risk Cash is mainly maintained by one highly qualified
institution in the United States. At various times, such amounts are more than federally insured limits. Management does not believe that
the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company
has not experienced any losses on our deposits of cash. Risks and Uncertainties The Company is subject to risks from, among other
things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing
customer requirements, limited operating history and the volatility of public markets. Accounts Receivable Accounts receivable are stated
at the amount management expects to collect from outstanding balances. The Company provides for probable uncollectible amounts based upon
its assessment of the current status of the individual receivables and after using reasonable collection efforts. The allowance for doubtful
accounts as of March 31, 2021 and December 31, 2020 was zero. Revenue Recognition The Company recognizes revenues
in accordance with Accounting Standards Codification (“ ASC” Stock-Based Compensation The Company accounts for all stock-based compensation
using a fair value-based method. The fair value of equity-classified awards granted to employees is estimated on the date of the grant
using the Black-Scholes option-pricing model and the related stock-based compensation expense is recognized over the vesting period during
which an employee is required to provide service in exchange for the award. Goodwill and Other Acquired Intangible Assets The Company initially records goodwill and other intangible
assets at their estimated fair values and reviews these assets periodically for impairment. Goodwill represents the excess of the purchase
price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and
is tested at least annually for impairment, historically during our fourth quarter. Recently Issued Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02, Leases
(Topic 842) (“ASU 2016-02”). ASU 2016-02 requires an entity to recognize right-of-use assets and lease liabilities on its
balance sheet and disclose key information about leasing arrangements. For public companies, ASU 2016-02 is effective for annual reporting
periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective
adoption, with early adoption permitted. We are evaluating the impact this guidance will have on our financial position and statement
of operations. |
