UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A10-Q
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended
September 30, 2019March 31, 2020
or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition period from _______________ to ______________
Commission File Number:000-10210
GLOBAL TECH INDUSTRIES GROUP, INC.
(Exact name of registrant as specified in its charter)
NEVADA | 83-0250943 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
511 Sixth Avenue, suite 800
New York, NY 10011
(Address of principal executive offices) (Zip Code)
(212) 204 7926
Registrant’s telephone number, including area code
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act: None
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
None | N/A | N/A |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes | [X] | No | [ ] |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One).
Large accelerated filer | [ ] | Accelerated filer | [ ] |
Non-accelerated filer | [ | Smaller reporting company | [X] |
Emerging growth company | [ ] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act [ ]
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes | [ ] | No | [X] |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
As of November 2, 2019June 27, 2020 the number of shares outstanding of the registrant’s class of common stock was 175,777,990208,317,990.
EXPLANATORY NOTE – COVID-19 RELIEF
The sole purpose of this Amendment No. 1 to theCompany is filing its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 GLOBAL TECH INDUSTRIES GROUP, INC. (the “Company”) filed withMarch 31, 2020 after the Securitiesapplicable May 15, 2020 deadline in reliance on the 45-day extension provided by an order issued by the SEC under Section 36 of the Exchange Act dated March 4, 2020 (Release No. 34-88318), as modified and Exchange Commissionsuperseded by a new SEC order issued on 11/07/2019 (the “Form 10-Q”March 25, 2020 (Release No. 34-88465) (collectively, the “COVID-19 Order”) is to furnish:.
No other changes have been madeThe Company was impacted by the COVID-19 virus and has relied on the COVID-19 Order. The Company’s Chief Executive and Financial Officer resides in the State of New York. The State of New York issued a lockdown order due to the Form 10-Q.COVID-19 virus which has resulted in certain offices being closed. This Amendment No. 1delayed the ability of the Company’s Chief Executive and Financial Officer to provide certain financial information concerning the Company to the Company’s accountant who prepared the Company’s financial statements for the period ended March 31, 2020. In turn, this delayed the review of the Company’s financial statements by its auditor and the Company’s ability to file its Quarterly Report on Form 10-Q speaks as offor the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.period ended March 31, 2020 on a timely basis.
TABLE OF CONTENTS
GLOBAL TECH INDUSTRIES GROUP, INC.
CondensedConsolidated Balance Sheets
(Unaudited)
September 30, | December 31, | |||||||
2019 | 2018 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 2,320 | $ | 7,819 | ||||
Marketable securities | 178,125 | 131,120 | ||||||
Total Current Assets | 180,444 | 138,939 | ||||||
PROPERTY AND EQUIPMENT (NET) | - | - | ||||||
INVESTMENTS | 51,832 | 51,832 | ||||||
TOTAL ASSETS | $ | 232,276 | $ | 190,771 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 3,142,795 | $ | 2,433,174 | ||||
Accrued interest payable | 631,911 | 567,246 | ||||||
Private Placement Deposits | 128,634 | 128,634 | ||||||
Asset retirement obligation | 101,250 | 101,250 | ||||||
Due to officers and directors | 367,462 | 354,623 | ||||||
Notes payable- in default | 568,577 | 568,577 | ||||||
Current portion of long-term debt-related party | 756,780 | 756,780 | ||||||
Current portion of long-term debt | 566,082 | 566,082 | ||||||
Total Current Liabilities | 6,263,491 | 5,476,366 | ||||||
Total Liabilities | 6,263,491 | 5,476,366 | ||||||
STOCKHOLDERS’ (DEFICIT) | ||||||||
Preferred Stock, par value $.001, 50,000 authorized, 1,000 issued | 1 | 1 | ||||||
Common stock, par value $0.001 per share, 350,000,000 shares authorized; 175,777,990 and 170,777,990 issued and outstanding, respectively | 175,777 | 170,777 | ||||||
Additional paid-in-capital | 161,007,076 | 160,739,496 | ||||||
Unearned ESOP shares | (3,413,600 | ) | (3,413,600 | ) | ||||
Accumulated other comprehensive income | 150,989 | 103,985 | ||||||
Retained (Deficit) | (163,951,458 | ) | (162,886,254 | ) | ||||
Total Stockholders’ (Deficit) | (6,031,214 | ) | (5,285,595 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) | $ | 232,276 | $ | 190,771 |
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 1,399 | $ | 1,435 | ||||
Marketable securities | 17,068 | 44,044 | ||||||
Total Current Assets | 18,467 | 45,479 | ||||||
TOTAL ASSETS | $ | 18,467 | $ | 45,479 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued expenses | $ | 903,992 | $ | 731,327 | ||||
Accrued interest payable | 318,955 | 310,307 | ||||||
Accrued interest payable-related party | 343,056 | 298,796 | ||||||
Notes payable in default | 871,082 | 87,082 | ||||||
Due to officers and directors | 28,901 | - | ||||||
Total Current Liabilities | 2,465,986 | 2,211,512 | ||||||
LONG-TERM LIABILITIES | ||||||||
Notes payable related party | 3,540,405 | 3,540,405 | ||||||
Total Long-Term Liabilities | 3,540,405 | 3,540,405 | ||||||
Total Liabilities | 6,006,391 | 5,751,917 | ||||||
STOCKHOLDERS’ (DEFICIT) | ||||||||
Preferred stock,par value $.001, 50,000 authorized, 1,000 issued and outstanding | 1 | 1 | ||||||
Common stock, par value $0.001 per share, 350,000,000 shares authorized; 205,277,990 issued and outstanding | 205,278 | 205,278 | ||||||
Additional paid-in-capital | 161,716,346 | 161,712,986 | ||||||
Accumulated(Deficit) | (167,909,549 | ) | (167,624,703 | ) | ||||
Total Stockholders’ (Deficit) | (5,987,924 | ) | (5,706,438 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) | $ | 18,467 | $ | 45,479 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3 |
GLOBAL TECH INDUSTRIES GROUP, INC.
CondensedConsolidated Statements of Operations
(Unaudited)
For The Three Months Ended | For The Nine Months Ended | For The Three Months Ended | ||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||
(as restated) | ||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
General and administrative | 216,885 | 675,152 | 934,700 | 1,140,432 | 28,120 | 77,318 | ||||||||||||||||||
Compensation and professional fees | 22,279 | 16,500 | 50,472 | 49,186 | 172,745 | 199,909 | ||||||||||||||||||
Depreciation | - | - | - | 362 | ||||||||||||||||||||
Total Operating Expenses | 239,164 | 691,652 | 985,172 | 1,189,980 | 200,865 | 277,227 | ||||||||||||||||||
OPERATING LOSS | (239,164 | ) | (691,652 | ) | (985,172 | ) | (1,189,980 | ) | (200,865 | ) | (277,227 | ) | ||||||||||||
OTHER INCOME (EXPENSES) | ||||||||||||||||||||||||
Interest income | - | - | 0 | - | ||||||||||||||||||||
Other income | - | - | - | - | ||||||||||||||||||||
Gain/(loss) on marketable securities | (26,976 | ) | 35,615 | |||||||||||||||||||||
Interest expense | (26,933 | ) | (26,356 | ) | (80,032 | ) | (77,804 | ) | (57,005 | ) | (26,199 | ) | ||||||||||||
Total Other Income (Expenses) | (26,933 | ) | (26,356 | ) | (80,032 | ) | (77,804 | ) | (83,981 | ) | 9,416 | |||||||||||||
LOSS BEFORE INCOME TAXES | (266,097 | ) | (718,008 | ) | (1,065,204 | ) | (1,267,784 | ) | (284,846 | ) | (267,811 | ) | ||||||||||||
INCOME TAX EXPENSE | - | - | - | - | - | - | ||||||||||||||||||
NET LOSS | $ | (266,097 | ) | $ | (718,008 | ) | $ | (1,065,204 | ) | $ | (1,267,784 | ) | $ | (284,846 | ) | $ | (267,811 | ) | ||||||
OTHER COMPREHENSIVE INCOME/(LOSS) net of taxes | ||||||||||||||||||||||||
Unrealized gain (loss) on held for sale marketable securities | 20,697 | (29,871 | ) | 47,005 | (11,764 | ) | ||||||||||||||||||
COMPREHENSIVE LOSS | $ | (245,401 | ) | $ | (747,879 | ) | $ | (1,018,200 | ) | $ | (1,279,548 | ) | ||||||||||||
BASIC AND DILUTED LOSS PER SHARE | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED | 175,777,990 | 159,422,440 | 172,481,694 | 156,859,477 | 205,277,990 | 170,777,990 |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4 |
GLOBAL TECH INDUSTRIES GROUP, INC.
Condensed Consolidated Statements of Cash FlowsStockholders' Deficit
(Unaudited)
For The Nine Months Ended | ||||||||
September 30, | September 30, | |||||||
2019 | 2018 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (1,065,204 | ) | (1,267,784 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 0 | 362 | ||||||
Stock issued for services | 262,500 | 419,481 | ||||||
Imputed interest on loan | 10,080 | 10,080 | ||||||
Change in operating assets and liabilities, net of acquisition: | ||||||||
(Increase) decrease in accounts receivables and prepaids | - | - | ||||||
Increase (decrease) in accounts payable and accrued expenses | 774,287 | 572,894 | ||||||
Net Cash Used in Operating Activities | (18,337 | ) | (264,967 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Cash paid to related party loans | (56,200 | ) | - | |||||
Cash received from related party loans | 69,038 | 162,240 | ||||||
Net Cash Provided by (Used in) Financing Activities | 12,838 | 162,240 | ||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,499 | ) | (102,727 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 7,819 | 120,545 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 2,320 | $ | 17,818 | ||||
SUPPLEMENTAL DISCLOSURES: | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for income taxes | $ | - | $ | - | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Stock issued in exchange for debt | $ | - | $ | 5,099 | ||||
Unrealized gain on marketable securities | $ | 47,005 | $ | (11,764 | ) |
Preferred Stock | Common Stock | Additional | Retained | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | (Deficit) | Equity | ||||||||||||||||||||||
Balance, December 31, 2018 | 1,000 | $ | 1 | 170,777,990 | $ | 170,778 | $ | 160,739,496 | $ | (166,195,868 | ) | $ | (5,285,593 | ) | ||||||||||||||
Imputed interest – loan | 3,360 | 3,360 | ||||||||||||||||||||||||||
Net loss for the three months ended March 31, 2019 (as restated) | (267,811 | ) | (267,811 | ) | ||||||||||||||||||||||||
Balance, March 31, 2019 (as restated) | 1,000 | $ | 1 | 170,777,990 | $ | 170,778 | $ | 160,742,856 | $ | (166,463,679 | ) | $ | (5,550,044 | ) | ||||||||||||||
Balance, December 31, 2019 | 1,000 | $ | 1 | 205,277,990 | $ | 205,278 | $ | 161,712,986 | $ | (167,624,703 | ) | $ | (5,706,438 | ) | ||||||||||||||
Imputed interest – loan | 3,360 | 3,360 | ||||||||||||||||||||||||||
Net loss for the three months ended March 31, 2020 | (284,846 | ) | (284,846 | ) | ||||||||||||||||||||||||
Balance, March 31, 2020 | 1,000 | $ | 1 | 205,277,990 | $ | 205,278 | $ | 161,716,346 | $ | (167,909,549 | ) | $ | (5,987,924 | ) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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GLOBAL TECH INDUSTRIES GROUP, INC.
CondensedConsolidated StatementStatements of Stockholders’ DeficitCash Flows
For the periods ended September 30, 2019 and 2018(Unaudited)
Accumulated | ||||||||||||||||||||||||||||||||||||
Unearned | Other | |||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional | ESOP | Retained | Comprehensive | Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Shares | (Deficit) | Income | Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2017 | 1,000 | $ | 1 | 155,577,990 | $ | 155,577 | $ | 158,514,377 | $ | (2,972,600 | ) | $ | (161,591,550 | ) | $ | 149,208 | $ | (5,744,987 | ) | |||||||||||||||||
Common stock issued for services & ESOP plan | 13,500,000 | 13,500 | 1,773,079 | (441,000 | ) | 1,345,579 | ||||||||||||||||||||||||||||||
Imputed interest – loan | 13,440 | 13,440 | ||||||||||||||||||||||||||||||||||
Stock exchanges for investment and consulting services | 1,700,000 | 1,700 | 438,600 | 440,300 | ||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | (45,223 | ) | (45,223 | ) | ||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2018 | (1,294,704 | ) | (1,294,704 | ) | ||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | 1,000 | $ | 1 | 170,777,990 | $ | 170,777 | $ | 160,739,496 | $ | (3,413,600 | ) | $ | (162,886,254 | ) | $ | 103,985 | $ | (5,285,595 | ) | |||||||||||||||||
Imputed interest – loan | 10,080 | 10,080 | ||||||||||||||||||||||||||||||||||
Stock exchanges for investment and consulting services | 5,000,000 | 5,000 | 257,500 | 262,500 | ||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | 47,004 | 47,004 | ||||||||||||||||||||||||||||||||||
Net loss for the period ended September 30, 2019 | (1,065,204 | ) | (1,065,204 | ) | ||||||||||||||||||||||||||||||||
Balance, September 30, 2019 | 1,000 | $ | 1 | 175,777,990 | $ | 175,777 | $ | 161,007,076 | $ | (3,413,600 | ) | $ | (163,951,458 | ) | $ | 150,989 | $ | (6,031,214 | ) |
For The Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
(as restated) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (284,846 | ) | (267,811 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Imputed interest on loan | 3,360 | 3,360 | ||||||
(Gain)/loss on marketable securities | 26,976 | (35,615 | ) | |||||
Change in operating assets and liabilities: | ||||||||
Increase in related party accruals | 44,260 | 12,717 | ||||||
Increase in accounts payable and accrued expenses | 181,313 | 292,076 | ||||||
Net Cash Provided by (Used in) Operating Activities | (28,937 | ) | 4,727 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net Cash Provided by (Used in) Investing Activities | - | - | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Cash paid to related party loans | - | (30,257 | ) | |||||
Cash received from related party loans | 28,901 | 21,531 | ||||||
Net Cash Provided by (Used in) Financing Activities | 28,901 | (8,726 | ) | |||||
DECREASE IN CASH AND CASH EQUIVALENTS | (36 | ) | (3,999 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,435 | 7,819 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,399 | $ | 3,820 | ||||
SUPPLEMENTAL DISCLOSURES: | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for income taxes | $ | - | $ | - |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6 |
GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
September 30, 2019 (Unaudited)March 31, 2020
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared by GLOBAL TECH INDUSTRIES GROUP, INC. (“the Company”) without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2019March 31, 2020, and for all periods presented herein, have been made.
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Regulation S-X. Certain information and footnotenote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”), have been condensed or omitted. It is suggested thatomitted from these condensedstatements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with theour audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the Company’syear ended December 31, 2018 audited financial statements.2019. The results of operations for the period ended September 30, 2019March 31, 2020 are not necessarily indicative of the operating results for the full year.
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as disclosed in ItemNote 2 below. All significant inter-company balances and transactions have been eliminated.
B) GOING CONCERN
The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its operating expenses and seeking equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID-19) a pandemic. As a result, economic uncertainties have arisen which have the potential to negatively impact the Company’s ability to raise funding from the markets. Other financial impact could occur though such potential impact is unknown at this time.
7 |
GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
A) PRINCIPLES OF CONSOLIDATION
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Ludicrous, Inc., BioEnergy Applied Technologies Inc., GoHealthMD, Inc., MLN, Inc., Universal Energy and Services Group, Inc. Sky Entertainment, Inc., Eye Care Centers International, Inc., GoHealthMD Nano Pharmaceuticals, Inc., TTI Strategic Acquisitions and Equity Group, Inc, TTII Oil & Gas, Inc., and G T International, Inc. All subsidiaries of the Company, other than TTII Oil & Gas,TTI Strategic Acquisitions and Equity Group, Inc., currently have no financial activity. All significant inter-company balances and transactions have been eliminated.
B) USE OF MANAGEMENT’S ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. These financial statements have material estimates for valuation of stock and option transactions, and asset retirement obligations associated with the oil and gas operations.
C) CASH EQUIVALENTS
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained with major financial institutions in the U S. Deposits held with these banks at times exceed $250,000 of insurance provided on such deposits. The Company has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risk on cash and cash equivalents. At September 30, 2019March 31, 2020 and December 31, 2018,2019, no excess cash balances existed. There were no cash equivalents at September 30, 2019March 31, 2020 and December 31, 2018.2019.
D) FIXED ASSETS
8 |
GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, ranging from 3 to 7 years for furniture, fixtures, machinery and equipment. Leasehold improvements are amortized over the lesser of the term of the lease or the economic life of the asset. Routine repairs and maintenance are expensed when incurred.
E) D)INCOME TAXES
The Company applies ASC 740 which requires the asset and liability method of accounting for income taxes. The asset and liability method require that the current or deferred tax consequences of all events recognized in the financial statements are measured by applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years. Deferred tax assets are reviewed for recoverability and the Company records a valuation allowance to reduce its deferred tax assets when it is more likely than not that all or some portion of the deferred tax assets will not be recovered.
The Company adopted ASC 740 at the beginning of fiscal year 2008. This interpretation requires recognition and measurement of uncertain tax positions using a “more-likely-than-not” approach, requiring the recognition and measurement of uncertain tax positions. The adoption of ASC 740 had no material impact on the Company’s financial statements. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards 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 the deferred tax assets will to be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
F) E)REVENUE RECOGNITION
WeThe Company currently has no source of revenue, however, if and when such revenues can be generated again, we will recognize oil production revenues when the oil is accepted and picked up by our service provider in accordance with ASC 605606 Revenue Recognition and Revenue Arrangementsfrom contracts with Multiple Deliverables.customers. Revenue is recognized when control of our products are transferred to our customers in an amount that reflects the priceconsideration the Company expects to be entitled to in exchange for those products. The Company does not have any significant financing components as payment is fixedreceived at or determinable, persuasive evidenceshortly after point of an arrangement exists, the service is performedsale. The Company currently has no sales and collectability of the resulting receivable is reasonably assured.no performance obligations. If we subsequently determine that collection from that customer is not reasonably assured, we record an allowance for doubtful accounts and bad debt expense for all that customer’s unpaid invoices and cease recognizing revenue for continued services provided until cash is received.
G)
9 |
GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
F)STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation in accordance with the provisions of ASC 718. ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on the grant-date fair value of the award. That cost will be recognized over the period during which an employee is required to provide service in exchange for the reward- known as the requisite service period. No compensation cost is recognized for equity instruments for which employees do not render the requisite service. The grant-date fair value of employee share options and similar instruments are estimated using the Black Scholes option-pricing model adjusted for the unique characteristics of those instruments.
Equity instruments issued to non-employees are recorded at their fair values as determined in accordance with ASC 718 and ASC 595, “Accounting for Equity Instruments That Are Issuedas amended by ASU 2018-07. As such, the grant date is the measurement date of an award’s fair value.
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GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to Other Than Employees for Acquiring, or in Conjunction with Selling Goods and Services”, and are periodically revalued as the stock options vest and are recognized as expense over the related service period.Unaudited Condensed Consolidated Financial Statements
March 31, 2020
H) INTANGIBLE ASSETS AND BUSINESS COMBINATIONS
The Company adopted ASC 805, “Business Combinations”, and ASC 350, “Goodwill and Other Intangible Assets”, effective September 2001 and revised in December 2007. ASC 805 requires the use of the purchase method of accounting for any business combinations initiated after September 30, 2002, and further clarifies the criteria to recognize intangible assets separately from goodwill. Under ASC 350, goodwill and indefinite−life intangible assets are no longer amortized, but are reviewed for impairment annually.
With the acquisition of BAT, Global Tech fifteen (15) intellectual properties pertaining to the construction of the mobile configuration and operation of the glyd-arc medical waste destruction unit, as well as an enhanced configuration and novel method for coal gasification. These intangibles have an undefined life as the intellectual property has yet to be commercialized. However, because there are no comparable properties, and because there is no cash-flow being generated from these intangibles, the Company could not determine a fair value at December 31, 2009 and therefore recorded an impairment of the entire capitalized value of $2,275,000.
With the acquisition of the assets of ARUR, the company acquired a patent for a gun sight. Since there was no available determinable value to the patent, no allocation of the purchase price was assigned to the patent. In addition, the Company acquired a 75% working interest in an Oil & Gas lease in the state of Kansas. Subsequent to the acquisition, the previous operator filed a mechanics lien on the property. The Company determined that due to this lien and loss of title to the assets, that the cost allocation to this asset would be written off as an impairment of a long-lived asset. The Company acquired various minority equity ownerships in inactive companies in Brazil and uncollectible receivables, therefore no purchase price allocation was assigned to these assets. No other intangible assets were acquired from this purchase.
I)G) FAIR VALUE OF FINANCIAL INSTRUMENTS
On January 1, 2008, the Company adopted ASC 820, “Fair Value Measurements” ASC 820 defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:
[ ] | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
[ ] | 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 and significant to the fair measurement. |
The carrying amounts reported in the balance sheets for cash and cash equivalents, and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value 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 carrying value of notes payable approximates fair value because negotiated terms and conditions are consistent with current market rates as of September 30, 2019March 31, 2020 and December 31, 2018.2019.
Marketable securities are reported at the quoted and listed market rates of the securities held at the year end.
The following table presents the Company’s Marketable securities and Notes Payable within the fair value hierarchy utilized to measure fair value on a recurring basis as of September 30, 2019March 31, 2020 and December 31, 2018:2019:
Level 1 | Level 2 | Level 3 | ||||||||||
Marketable Securities – 2019 | 178,125 | -0- | -0- | |||||||||
Marketable Securities – 2018 | 131,120 | -0- | -0- | |||||||||
Notes payable - 2019 | -0- | -0- | $ | 1,891,439 | ||||||||
Notes payable - 2018 | -0- | -0- | $ | 1,891,439 |
Level 1 | Level 2 | Level 3 | ||||||||||
Marketable Securities – 2020 | $ | 17,068 | $ | -0- | $ | -0- | ||||||
Marketable Securities – 2019 | $ | 44,044 | $ | -0- | $ | -0- |
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The following table presents a Level 3 reconciliation ofGLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the beginning and ending balances of the fair value measurements using significant unobservable inputs as of September 30, 2019 and DecemberUnaudited Condensed Consolidated Financial Statements
March 31, 2018:2020
Notes payable | ||||
Balance, December 31, 2017 | $ | 1,891,439 | ||
No Activity | - | |||
Balance, December 31, 2018 | $ | 1,891,439 | ||
No Activity | 0 | |||
Balance, September 30, 2019 | $ | 1,891,439 |
J) H)BASIC AND DILUTED LOSS PER SHARE
The Company calculates earnings per share in accordance with ASC 260, “Computation of Earnings“Earnings Per Share.” Basic loss per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share gives effect to dilutive convertible securities, options, warrants and other potential common stock outstanding during the period; only in periods in which such effect is dilutive. For 2020 and 2019, and 2018,there were no common stock equivalent shares were excluded frompotentially dilutive securities to consider in the calculation as their effects are anti-dilutive, respectively. The ESOP shares issued during 2019 and 2018 have also been excluded from the calculation as they were issued but not outstanding.fully diluted earnings per share calculation.
For the Three Months Ended | For the Nine Months Ended | For the Three Months Ended | ||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||
Loss (numerator) | $ | (266,097 | ) | $ | (718,008 | ) | $ | (1,065,204 | ) | $ | (1,267,784 | ) | $ | (284,846 | ) | $ | (267,811 | ) | ||||||
Shares (denominator) | 175,777,990 | 159,422,440 | 172,481,694 | 156,859,477 | 205,277,990 | 170,777,990 | ||||||||||||||||||
Basic and diluted loss per share | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
K) I)RECENT ACCOUNTING PRONOUNCEMENTS
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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L) ASSET RETIREMENT OBLIGATIONS
GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
The Company follows FASB ASC 410-20“Accounting for Asset Retirement Obligations,” which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs.J)
FASB ASC 410-20 requires recognition of the present value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount.
Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company’s asset retirement obligations are related to the plugging, dismantlement, removal, site reclamation and similar activities of its oil and gas exploration activities.
M) Marketable Securities-Available for SaleSecurities
The Company purchasedpurchases marketable securities during 2012 and 2015. The Company’s marketable securitiesengages in trading activities for its own account. Securities that are classified as “availableheld principally for sale”. Accordingly,resale in the Company originally recognizes the sharesnear term are recorded at the marketfair value purchased. The shares are evaluated quarterly using the specific identification method. Any unrealized holding gains or losses are reported as Other Comprehensive Incomewith changes in fair value included in earnings. Interest and as a separate component of stockholder’s equity. Realized gains and lossesdividends are included in earnings. Also, other than temporary impairments are recorded as a loss on marketable securities in the statements of operations.net Interest Income.
NOTE 3 - RELATED PARTY TRANSACTIONS
Notes Payable-Related Party
The Company is indebted to the officers of the Company for unpaid wages, expenses and bonusescash advances from current and previous years that were converted into Notes. Various Directors and Shareholders have also advanced funds to the Company to support operations. The balances at September 30, 2019March 31, 2020 and December 31, 2019 for Related Party Notes Payable are $3,540,405 and $3,540,405 respectively. Accrued interest on the related party notes at March 31, 2020 and December 31, 2019 total $343,056 and $298,796, respectively
Mr. Reichman, our CEO, has rendered services to the Company and his wages have been accrued in accrued expenses during 2017, 2018 are $421,044and 2019. At December 30, 2019, Mr. Reichman agreed to consolidate accrued wages, auto allowance and cash advances into a long-term Note Payable with a term date of July 15, 2021. At December 30, 2019 the Company executed a Note for $2,016,672 which consisted of cash advances of $400,223, accrued wages of $1,500,000 and auto allowances of $116,449. The total Notes due to Mr. Reichman at March 31, 2020 and $206,670 to Mrs. Griffin,December 31, 2019 is $2,437,717 and $2,437,717, respectively. The notesAll Mr. Reichman’s Notes bear interest at 5%, are dueunsecured, and have been extended through July 15, 2021. Accrued interest on Mr. Reichman’s Notes are $193,725 and $163,254 at October 1,March 31, 2020 and December 31, 2019, respectively.
Mrs. Griffin, our President, has rendered services to the Company and her wages have been accrued in accrued expenses during 2017, 2018 and 2019. At December 30, 2019, Mrs. Griffin agreed to consolidate accrued wages and expenses into a long-term Note Payable with a term date of July 15, 2021. At December 30, 2019, the Company executed a Note for $563,000 which consisted of expenses of $16,000 and accrued wages of $547,000. The total Notes due to Mrs. Griffin at March 31, 2020 and December 31, 2019 is $769,670 and $769,670, respectively. All Mrs. Griffin’s Notes bear interest at 5%, are unsecured.unsecured, and have been extended through July 15, 2021. Accrued interest on Mrs. Griffin’s Notes are $76,789 and $56,834 at March 31, 2020 and December 31, 2019, respectively.
On December 13, 2012, the Company executed a note payable to an individual and board member in the amount of $19,000, interest accrues at 8% per annum, unsecured, due after 8 months of execution, but extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $10,699 and $10,319 respectively.
On March 6, April 22, April 30, May 24, June 14, June 21, July 3, July 30, November 20, December 2, December 13, 2013, the Company executed notes payable to an individual and board member in the total amount of $31,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $12,602 and $12,137, respectively.
On January 2, January 21, April 24, May 19, July 28, August 26, and December 23, 2014, the Company executed notes payable to an individual and board member in the total amount of $31,500, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $11,090 and $10,617, respectively.
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GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
On February 11, April 21, May 6, June 8, June 15, July 17, August 19, October 20, 2015, and January 22, 2016 the Company executed notes payable to an individual and board member in the total amount of $34,800, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $9,994 and $9,471, respectively.
On February 28, 2013, the Company executed a note payable to a Trust and shareholder, whose Trustee is our CEO, in the amount of $5,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $2,125 and $2,050, respectively.
On July 23, July 24, August 5, August 26, and September 13, 2013, the Company executed a note payable to a Trust and shareholder, whose Trustee is our CEO, in the total amount of $80,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution.$7,924 was paid on December 31, 2019, leaving a balance of $72,076. Unpaid accrued interest at March 31, 2020 and December 31, 2019 is $1,081 and $0, respectively.
On March 6, March 16, March 25, June 30, August 12, September 10, September 14, October 8, October 14, November 30, December 3, December 7, 2015, the Company executed a note payable to a Trust and shareholder, whose Trustee is our CEO, in the total amount of $49,200, which was paid down to $0 at December 31, 2019 interest accrues at 6% per annum, unsecured, due after 12 months of execution (2016). Accrued interest at March 31, 2020 and December 31, 2019 is $0 and $0, respectively.
On September 23, and November 10, 2014, the Company executed a note payable to a Trust and shareholder whose Trustee is our CEO, in the total amount of $2,500, which was paid down to $0 at December 31, 2019 interest accrues at 6% per annum, unsecured, due after 8 months of execution (2015). Accrued interest at March 31, 2020 and December 31, 2019 is $0 and $0, respectively,
On May 15, July 12, July 17, and November 22, 2013, the Company executed notes payable to an Trust and shareholder, whose Trustee is our CEO, in the total amount of $83,877, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $9,114 and $8,778, respectively.
On January 22, 2014, the Company executed a note agreement with a Trust and shareholder, whose Trustee is our CEO, in the amount of $14,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and has been extended to July 15, 2021. Accrued interest at December 31, 2019 and 2018 is $5,199 and $4,989, respectively.
On April 7, 2014, April 17, 2014, June 6, 2014, July 18, 2014 and October 10, 2014, the Company executed note agreements with a Trust and shareholder whose Trustee is our CEO, in various amounts totaling $24,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and has been extended to July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $8,808 and $8,448, respectively.
On October 10, 2014, the Company executed a note payable to a Trust and shareholder, whose Trustee is our CEO, in the amount of $5,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to July 15, 2021. Accrued interest at March 31,2020 and December 31, 2019 is $1,642 and $1,567, respectively.
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GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
On December 30, 2019, the Company executed a note payable to a Trust and shareholder, whose Trustee is our CEO, in the amount of $12,765, interest accrues at 6%, per annum, unsecured, due on July 15, 2021. Accrued interest at March 31, 2020 and December 31, 2019 is $191 and $0, respectively.
(b)Additional detail to all Notes Payable-Related Party is as follows:
2020 | 2019 | Interest | Interest Expense | |||||||||||||||||||
Principal | Principal | Rate | 3/31/2020 | 3/31/2019 | Maturity | |||||||||||||||||
$ | 2,016,672 | $ | 2,016,672 | 5.00 | % | $ | 25,208 | $ | - | 7/15/21 | ||||||||||||
563,000 | 563,000 | 5.00 | % | 7,038 | - | 7/15/21 | ||||||||||||||||
409,920 | 409,920 | 5.00 | % | 5,124 | 5,124 | 7/15/21 | ||||||||||||||||
11,125 | 11,125 | 5.00 | % | 139 | 139 | 7/15/21 | ||||||||||||||||
200,000 | 200,000 | 5.00 | % | 2,500 | 2,500 | 7/15/21 | ||||||||||||||||
6,670 | 6,670 | 5.00 | % | 83 | 83 | 7/15/21 | ||||||||||||||||
19,000 | 19,000 | 8.00 | % | 380 | 380 | 7/15/21 | ||||||||||||||||
31,000 | 31,000 | 6.00 | % | 390 | 390 | 7/15/21 | ||||||||||||||||
31,500 | 31,500 | 6.00 | % | 473 | 473 | 7/15/21 | ||||||||||||||||
34,800 | 34,800 | 6.00 | % | 522 | 522 | 7/15/21 | ||||||||||||||||
5,000 | 5,000 | 6.00 | % | 75 | 75 | 7/15/21 | ||||||||||||||||
72,076 | 80,000 | 6.00 | % | 1,200 | 1,200 | 7/15/21 | ||||||||||||||||
- | - | 6.00 | % | - | 738 | N/A | ||||||||||||||||
- | - | 6.00 | % | - | 37 | N/A | ||||||||||||||||
83,877 | 83,877 | 6.00 | % | 335 | 335 | 7/15/21 | ||||||||||||||||
14,000 | 14,000 | 6.00 | % | 210 | 210 | 7/15/21 | ||||||||||||||||
24,000 | 24,000 | 6.00 | % | 360 | 360 | 7/15/21 | ||||||||||||||||
5,000 | 5,000 | 6.00 | % | 75 | 75 | 7/15/21 | ||||||||||||||||
12,765 | 12,765 | 6.00 | % | 191 | - | 7/15/21 | ||||||||||||||||
$ | 3,540,405 | $ | 3,540,405 | $ | 44,303 | $ | 12,641 |
Due to Officers and Directors
Due to officers asconsists of September 30, 2019 and December 31, 2018 are totals of $367,462 and $354,623, respectively. These balances consist of net cash advances and unpaidexpenses paid by Mr. Reichman in order to satisfy the expense reimbursementsneeds of the Company. The balance of advances made by Mr. Reichman at December 30, 2019 in the amount of $400,223, were consolidated with other amounts due to David Reichman.Mr. Reichman, and a Note Payable was issued in its stead. The payables and cash advances are unsecured, due on demand and do not bear interest. During the first ninethree months ofended March 31, 2020 and 2019, Mr. Reichman advanced $69,038$28,901 and $21,531, respectively, to the Company to cover operating expenses and was repaid $56,200.$0 and $30, 257, respectively. At March 31, 2020 and December 31, 2019, the amounts Due to Officers and Directors for cash advances and expenses are $28,901 and $0, respectively.
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GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to the Unaudited Condensed Consolidated Financial Statements
March 31, 2020
NOTE 4 - NOTES PAYABLE
(a) NOTES PAYABLE IN DEFAULT:
Notes payable in default consist of various notes bearing interest at rates from 5% to 9%, which are unsecured with original due dates between August 2000 and December 2016. All the notes are unpaid to date and several are in default and are thus classified as current liabilities. At September 30,March 31, 2020 and December 31, 2019, notes payable in default amounted to $1,891,439.$871,082 and $871,082, respectively. Accrued interest on the notes in default at March 31, 2020 and December 31, 2019 are $319,146 and $310,307, respectively. Below is a discussion of the details to the notes payable in default and a table summarizing the notes owed by the Company.in default with additional information.
During 2002, the Company settled a trade payable in litigation by executing a note payable to a company onCompany in the amount of $18,000, interest accrues at 6% per annum, unsecured, due September 1, 2002, and in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $19,530.$20,070 and $19,800, respectively.
Also during 2002, in settlement of another trade payable, the Company executed a note payable to a Company in the amount of $30,000, interest accrues at 6% per annum, unsecured, due September 12, 2002, in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $30,049.$30,949 and $30,499, respectively.
During 2000, the companyCompany executed a note payable to an individual in the amount of $25,000, interest accrues at 5% per annum, unsecured, due August 31, 2000, in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $25,527.$26.152 and $25,839, respectively.
In 2002, the Company settled an obligation with a consultant by executing a note payable for $40,000, interest accrues at 7% per annum, unsecured, due July 10, 2002, in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $48,787.$50,187 and $49,487, respectively.
On December 27, 2009, the Company executed a note payable to an individual for various advances to the Company in the amount of $292,860. On June 26, 2013, this note was renegotiated to include the accrued interest. The new note balance is $388,376 and interest accrues at 5% per annum, unsecured, and is extended to October 5, 2018, with monthly installments beginning in 2014 of $5,553, which did not occur. This note is in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $121,634.$131,344 and $126,489, respectively.
In January 27, 2010, the Company executed a note payable to a corporation in the amount of $192,000, bears no interest and is due on demand after 6 months of execution and is unsecured. No demand has been made at the date of these financial statements.statements, but the note is in default. Interest expense in the amount of $10,080$3,360 has been imputed for this note in 2019. Anfor the three months ended March 31, 2020 and 2019, respectively, with an offsetting entry to Paid in Capital was made in connection with this adjustment.Capital.
On August 28, 2012, and September 17, 2012, the Company executed a note payable to a corporation in the amount of $12,000 and $20,000, respectively. On June 26, 2013, this note was renegotiated to include the accrued interest. The new note balance is $32,960 and interest accrues at 5% per annum, unsecured, and is extended to October 5, 2018, with monthly installments beginning in 2014 of $473, which did not occur, and is unsecured.unsecured and in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $10,323.$11,147 and $10,735, respectively.
On April 12, 2012, the Company executed a note payable to a corporation in the amount of $100,000, however on June 26, 2013, this note was renegotiated to bear interest at 5% per annum, unsecured, extended to October 5, 2018, with monthly installments beginning in 2014 of $1,430, which did not occur.occur and this note is in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $31,318.$33,818 and $32,568, respectively.
On December 31, 2012, the Company executed a note payable to a corporation in the amount of $32,000, however on June 26, 2013, this note was renegotiated to include accrued interest. The new note balance is $32,746, bears interest at 5% per annum, unsecured, extended to October 5, 2018, with monthly installments beginning in 2014 of $468, which did not occur. Accrued interest at September 30, 2019 is $10,145.
On December 3, 2012, the Company executed a note payable to a corporation in the amount of $5,000, however on June 26, 2013,occur and this note was renegotiated to include accrued interest. The new note balance is $5,099, bears interest at 5% per annum, unsecured, extended to October 5, 2018, with monthly installments beginning in 2014 of $71, which did not occur. This note was paid off through a stock conversion and accrued interest at December 31, 2018 is $0.
On December 13, 2012, the Company executed a note payable to an individual and board member in the amount of $19,000, interest accrues at 8% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018. Accrued interest at September 30, 2019 is $10,145.
On February 28, 2013, the Company executed a note payable to a Trust in the amount of $5,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and is in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $1,975.$11,073 and $10,664, respectively.
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On March 6, April 22, April 30, May 24, June 14, June 21, July 3, July 30, November 20, December 2, December 13, 2013, the Company executed notes payable to an individual and board member in the total amount of $31,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018. Accrued interest at September 30, 2019 is $11,672.
On May 15, July 12, July 17, and November 22, 2013, the Company executed notes payable to an individual in the total amount of $88,877, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and currently in default. Accrued interest at September 30, 2019 8 is $10,379.GLOBAL TECH INDUSTRIES GROUP, INC.
On June 30, 2013, the Company negotiated a settlement of outstanding wages, advances, expenses, etc.,Notes to the two officers of the Company. The settlement Notes were for $500,000 and $25,000 to Mr. Reichman and $200,000 and $10,000 to Mrs. Griffin. The balances at DecemberUnaudited Condensed Consolidated Financial Statements
March 31, 2016 are $421,045 to Mr. Reichman and $206,670 to Mrs. Griffin. The notes bear interest at 5% and are extended to October 5, 2018. Accrued interest at September 30, 2019 is $222,575.
On July 23, July 24, August 5, August 26, and September 13, 2013, the Company executed a note payable to a Trust in the total amount of $80,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and currently in default. Accrued interest at September 30, 2019 is $29,480.2020
On March 11, 2014, the Company executed a note agreement with an LLC in the amount of $5,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018.2018 and is in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $1,667.$1,817 and $1,742, respectively.
On January 31, 2014, the Company executed a note agreement with a Corporation in the amount of $7,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018. Accrued interest at September 30, 20192018 and is $2,379.
On January 22, 2014, the Company executed a note agreement with an individual in the amount of $14,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and currently in default. Accrued interest at September 30,March 31, 2020 and December 31, 2019 is $4,779.$2,589 and $2,484, respectively.
On April 7, 2014, April 17, 2014, June 6, 2014, July 18, 2014 and October 10, 2014, the Company executed note agreements with an individual in various amounts totaling $24,000, interest accrues at 6% per annum, unsecured, due after 8 months of execution, and currently in default. Accrued interest at September 30, 2019 is $7,644.
On January 2, January 21, April 24, May 19, July 28, August 26, and December 23, 2014, the Company executed notes payable to an individual and board member in the total amount of $31,500, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018. Accrued interest at September 30, 2019 is $9,939.
On September 23, and November 10, 2014, the Company executed a note payable to a Trust in the total amount of $2,500, interest accrues at 6% per annum, unsecured, due after 8 months of execution (2015). Accrued interest at September 30, 2019 is $863.
On February 11, April 21, May 6, June 8, June 15, July 17, August 19, October 20, 2015, and January 22, 2016 the Company executed notes payable to an individual and board member in the total amount of $34,800, interest accrues at 6% per annum, unsecured, due after 8 months of execution, but extended to October 5, 2018. Accrued interest at September 30, 2019 is $8,949.
On March 6, March 16, March 25, June 30, August 12, September 10, September 14, October 8, October 14, November 30, December 3, December 7, 2015, the Company executed a note payable to a Trust in the total amount of $49,200, interest accrues at 6% per annum, unsecured, due after 12 months of execution (2016). Accrued interest at September 30, 2019 is $12,177.
None of the above notes are convertible or have any covenants.
(b)Additional detail to all Notes Payable in Default is as follows:
9/30/19 | 12/31/18 | Interest | Interest Expense | |||||||||||||||||||||||||||||||||||||||
2020 | 2020 | 2019 | Interest | Interest Expense | ||||||||||||||||||||||||||||||||||||||
Principal | Principal | Principal | Rate | 9/30/19 | 9/30/18 | Maturity | Principal | Principal | Rate | 3/31/2020 | 3/31/2019 | Maturity | ||||||||||||||||||||||||||||||
$ | 19,000 | $ | 19,000 | 8.00 | % | $ | 1,140 | $ | 1,140 | 10/5/18 | 32,960 | 32,960 | 5.00 | % | 412 | 412 | 10/5/18 | |||||||||||||||||||||||||
32,960 | 32,960 | 5.00 | % | 1,236 | 1,236 | 10/5/18 | 32,746 | 32,746 | 5.00 | % | 409 | 409 | 10/5/18 | |||||||||||||||||||||||||||||
37,746 | 37,746 | 5.00 | % | 1,227 | 1,227 | 10/5/18 | 5,000 | 5,000 | 6.00 | % | 75 | 75 | 10/5/18 | |||||||||||||||||||||||||||||
107,000 | 107,000 | 5.00 | % | 4,065 | 4,065 | 10/5/18 | 100,000 | 100,000 | 5.00 | % | 1,250 | 1,250 | 10/5/18 | |||||||||||||||||||||||||||||
388,376 | 388,376 | 5.00 | % | 14,565 | 14,565 | 10/5/18 | 7,000 | 7,000 | 6.00 | % | 105 | 105 | 10/5/18 | |||||||||||||||||||||||||||||
192,000 | 192,000 | 0 | % | 10,980 | 10,980 | 10/5/18 | 388,376 | 388,376 | 5.00 | % | 4,855 | 4,855 | 10/5/18 | |||||||||||||||||||||||||||||
18,000 | 18,000 | 6.00 | % | 810 | 810 | 9/1/2002 | 192,000 | 192,000 | 0 | % | 3,360 | 3,360 | 10/5/18 | |||||||||||||||||||||||||||||
30,000 | 30,000 | 6.00 | % | 1,350 | 1,350 | 9/12/2002 | 18,000 | 18,000 | 6.00 | % | 270 | 270 | 9/1/2002 | |||||||||||||||||||||||||||||
25,000 | 25,000 | 5.00 | % | 939 | 939 | 8/31/2000 | 30,000 | 30,000 | 6.00 | % | 450 | 450 | 9/12/2002 | |||||||||||||||||||||||||||||
40,000 | 40,000 | 7.00 | % | 2,100 | 2,100 | 7/10/2002 | 25,000 | 25,000 | 5.00 | % | 313 | 313 | 8/31/2000 | |||||||||||||||||||||||||||||
5,000 | 5,000 | 6.00 | % | 225 | 225 | 10/28/2013 | 40,000 | 40,000 | 7.00 | % | 700 | 700 | 7/10/2002 | |||||||||||||||||||||||||||||
62,500 | 62,500 | 6.00 | % | 2,814 | 2,814 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
144,642 | 144,642 | 6.00 | % | 3,165 | 3,165 | 1/14-10/15 | ||||||||||||||||||||||||||||||||||||
409,920 | 409,920 | 5.00 | % | 15,372 | 15,372 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
11,125 | 11,125 | 5.00 | % | 417 | 417 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
200,000 | 200,000 | 5.00 | % | 7,500 | 7,500 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
6,670 | 6,670 | 5.00 | % | 299 | 299 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
82,500 | 82,500 | 6.00 | % | 3,714 | 3,714 | 3/14-11/15 | ||||||||||||||||||||||||||||||||||||
34,800 | 34,800 | 6.00 | % | 3,022 | 3,022 | 10/5/18 | ||||||||||||||||||||||||||||||||||||
49,200 | 49,200 | 6.00 | % | 2,214 | 2,214 | 3/16-12/16 | ||||||||||||||||||||||||||||||||||||
$ | 1,891,439 | $ | 1,891,439 | $ | 75,648 | $ | 75,648 | 871,082 | $ | 871,082 | $ | 12,199 | $ | 12,199 |
At September 30, 2019March 31, 2020 and December 31, 2018,2019, accrued interest on the outstanding notes payable were $319,146 and convertible$310,307, respectively and related party notes was $631,924$343,056 and $567,258,$298,796, respectively. Interest expense on the outstanding notes amounted to $24,915$56,502 and $24,915$24,840 for the three months ended September 30,March 31, 2020 and 2019, and 2018 including the imputed interest discussed above.
NOTE 65 - STOCKHOLDERS’ DEFICIT
ISSUANCES OF COMMON STOCK
During the three months ended September 30,March 31, 2020 and 2019, the Company recorded imputed interest on a non-interest-bearing note in the amount of $3,360, with an increase in paid in capital.
During the three months ended September 30, 2019, there was no commondid not issue any stock, issued.stock options or warrants.
ISSUANCES OF PREFERRED STOCK
Pursuant to the Articles of Incorporation of the Company, there was initially authorized 50,000 shares of Series A Preferred Stock. On April 7, 2016, the Company’s Board of Directors created and issued out of the Series A Preferred Stock, 1,000 Series A Preferred shares with the following features:
a) | Super voting power, wherein the 1,000 shares have the right to vote in the amount equal to fifty-one percent (51%) of the total vote with respect to any proposal relating to (i) increasing the authorized share capital of the Company, and (ii) effecting any forward stock split of the Company’s authorized, issued or outstanding shares of capital stock, and (iii) any other matter subject to a shareholder vote. | |
b) | No entitlement to dividends. | |
c) | No liquidation preferences. | |
d) | No conversion rights. | |
e) | Automatic Redemption Rights upon certain triggers, to be redeemed at par value. |
The Board of Directors also authorized the issuance of all 1,000 Series A Preferred shares to David Reichman, CEO, for no consideration.
NOTE 7 - LEGAL ACTIONS OTHER
During April 2012,the three months ended March 31, 2020 and 2019, the Company filed suitrecorded imputed interest on a non-interest-bearing note in Los Angeles Superior Court against GeoGreen Biofuels, Inc.the amount of $3,360 and related parties, relating$3,360, respectively, as an increase in paid in capital.
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GLOBAL TECH INDUSTRIES GROUP, INC.
Notes to GeoGreen’s failure to repay $192,000 advanced pursuant to a Bridge Loan Term Sheet. Although litigation is inherently unpredictable, GTII is confident in its position, and intends to pursue the action aggressively. GeoGreen has filed a cross-complaint against the Company and its two officers, the Chief Executive Officer and the President, however the charges against the officers were subsequently dismissed with prejudice. A motion was also passed denying GeoGreen’s motion to strike GTIIs request for punitive damages. The Company has dropped its law suit for the time being.Unaudited Condensed Consolidated Financial Statements
March 31, 2020
NOTE 6 - LEGAL ACTIONS
On February 3, 2017, the Company filed suit in Eastern District Federal Court New York against American resourceResource Technologies, Inc., (ARUR) and several directors and officers relating to the Chautauqua County Court Kansas decision nullifying the Agreement.acquisition Agreement of ARUR. The Company has made several attempts to recover the shares of GTII stock paid to ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing theDocket No. 17-CV-0698. The case has not yet been decided.
During March 2013, the Company was named in an action pertaining to the 75% working interest in the Ownbey Lease. Subsequent to the Company’s purchase of the assets and the termination of the operator, a mechanics lien was filed against the property claiming approximately $267,000 in fees aresubsequently withdrawn due to the previous operator. An action is pending in the District Court of Chautauqua County, Kansas, captioned Aesir Energy, Inc. vs. American Resource Technologies, Inc.; Nancy Ownbey Archer; Jimmy Stephen Ownbey; Robbie Faye Butts; Global Tech Industries Group, Inc. and TTII oil & Gas, Inc. Management intends to vigorously contest AESIR’s claims and, at this point, settlement appears unlikely. It has been presented in the County Court that some of ARUR’s Directors have acted without authorization in this matter, and GTII’s management is assessing how to proceed at this time. No monetary claims have been asserted against GTII or TTII Oil & Gas, Inc.On the 3rd of February 2017, GTII filed an action for declaratory relief in the Eastern District of New York, for the purpose of recovering the costs, expenses and consideration paid to ARUR for the rights and benefits associated with an Oil and Gas transaction entered into between the parties on December 31st, 2012. The action by GTII is predicated on the underlying contract for the sale of the assetsclose of ARUR being vacated by a local Kansas Court on the basis that the company and its officers lacked the authority to enter into the contract. Because of that decision GTII lost all interest in the transaction, their associated benefits and any financial gain that may have been anticipated. Attempts were made to resolve this without litigation but have been unsuccessful. The matter is proceeding accordingly.operations. The Company has made several attemptsis continuing its efforts to recoverlegally cancel the shares of GTII, f/k/a TTI stock paidissued to the ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing the case has not yet been decided.shareholders.
On December 30, 2016, Global Tech Industries Group, Inc., a Nevada corporation,the Company executed a stock purchase agreement (the “Agreement”), which was signed and closed in Hong Kong, with GoFun Group, Ltd. through its wholly owned subsidiary Go F & B Holdings, Ltd. GoFun Group, Ltd. is a privately held company running a casual dining restaurant business, based in Hong Kong.Subsequent to the agreement being signed, GoFun Group failed to substantially perform under the agreement, including, but not limited to providing audited financials of its assets, making the ongoing payments called for in the agreement, along with other matters that led Global Tech to initiate litigation in the United States. Currently, Global Tech and GoFun are litigating the matter in the U.S District Court for the southern district of New York. The original acquisition agreement and rescission was recorded on the Company’s books in 2016, however the physical share certificates were not returned to the Company. During the last quarter of 2019, the Company was able to secure, via preliminary settlement, the return of 43,649,491 shares of the Company’s stock, which was issued in good faith to GoFun in anticipation of a final stock exchange. The stock has since been returned to the Company’s treasury and cancelled. The Company also reclassified a deposit received from GoFun shareholders in the amount of $128,634 for future share issuances pursuant to the Acquisition Agreement, to a Gain on Settlements and Debt Relief as part of the legal settlement of this case. As of this writing, motions are pending that may require remaining negotiations to continue in arbitration.
On December 30, 2019, a dispute between the caseCompany and its counsel regarding the GoFun matter, above, resulted in a filing, and subsequent settlement, of an action in the Supreme Court of the State of New York for the County of New York (Index No. 656396/2019). Pursuant to the settlement, prior counsel for the Company accepted previously-issued shares in 2016, as full payment for all legal work, expenses, costs, and other fees.
NOTE 7 – SUBSEQUENT EVENTS
On May 8, 2020, the Company issued 3,040,000 shares of common stock at $0.02 per share, for services rendered valued at $60,800.
The Company has not yetevaluated events subsequent to the balance sheet through the date the financial statements were issued and noted no additional events requiring disclosure.
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NOTE 8 – RESTATEMENT OF PRIOR ISSUED FINANCIAL STATEMENTS
The financial statements for the three months ended March 31, 2019 have been decided.restated due to an error in reporting the adoption of ASC 321, effective January 1, 2018, which requires unrealized gains and losses from marketable securities to be recorded in earnings, however, the Company erroneously recorded unrealized losses on marketable securities in the March 31, 2019 10-Q in other accumulated comprehensive income, an equity account. For comparability purposes, some reclassifications have also been made. The impact of the Restatement is as follows at March 31, 2019:
Three Months Ended March 31, 2019 | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustment | As Restated | ||||||||||
Statement of Operations Data: | ||||||||||||
General and administrative | 247,318 | (170,000 | ) | 77,318 | ||||||||
Compensation and professional fees | 29,909 | 170,000 | 199,909 | |||||||||
Gain on marketable securities | - | 35,615 | 35,615 | |||||||||
Total Other Income (expense) | (26,199 | ) | 35,615 | 9,416 | ||||||||
Loss Before Income Taxes | (303,426 | ) | 35,615 | (267,811 | ) | |||||||
Net Loss | (303,426 | ) | 35,615 | (267,811 | ) | |||||||
Other Comprehensive Income (loss) | 35,615 | (35,615 | ) | - |
Period Ended March 31, 2019 | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustment | As Restated | ||||||||||
Balance Sheet Data: | ||||||||||||
Marketable securities | 166,735 | 51,832 | 218,567 | |||||||||
Total Current Assets | 170,555 | 51,832 | 222,387 | |||||||||
Investments | 51,832 | (51,832 | ) | - | ||||||||
Unearned ESOP shares | (3,413,600 | ) | 3,413,600 | - | ||||||||
Accumulated other comprehensive income | 139,599 | (139,599 | ) | - | ||||||||
Accumulated (Deficit) | (163,189,680 | ) | (3,274,001 | ) | (166,463,681 | ) |
Three Months Ended March 31, 2019 | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustment | As Restated | ||||||||||
Cash Flows Data: | ||||||||||||
Net loss | (303,426 | ) | 35,615 | (267,811 | ) | |||||||
Gain loss on marketable securities | - | (35,615 | ) | (35,615 | ) | |||||||
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cautionary Statements
This Form 10-Q may contain “forward-looking statements,” as that term is used in federal securities laws, about Global Tech’s consolidated financial condition, results of operations and business. These statements include, among others:
● | statements concerning the potential benefits that may be experienced from business activities and certain transactions contemplated or completed; and |
● | statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts. These statements may be made expressly in this Form 10-Q. You can find many of these statements by looking for words such as “believes,” “expects,” “anticipates,” “estimates,” “opines,” or similar expressions used in this Form 10-Q. These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause our actual results to be materially different from any future results expressed or implied in those statements. The most important facts that could prevent us from achieving our stated goals include, but are not limited to, the following: |
a) | volatility or decline of Global Tech’s stock price; potential fluctuation of quarterly results; |
b) | Potential fluctuation of quarterly results; |
c) | failure to earn revenues or profits; |
d) | inadequate capital to continue or expand our business, and inability to raise additional capital or financing to implement our business plans; |
e) | failure to commercialize our technology or to make sales; |
f) | decline in demand for our products and services; |
g) | Rapid adverse changes in markets; |
h) | litigation with or legal claims and allegations by outside parties against GTII, including but not limited to challenges to intellectual property rights; |
i) | insufficient revenues to cover operating costs; and |
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Overview of Business
Global Tech Industries Group, Inc. (“Global Tech”, “GTII”, “we”. “our”, “us”, “the Company”, “management”) is a Nevada corporation which has been operating under several different names since 1980.
Western Exploration, Inc., a Nevada corporation, was formed on July 24, 1980. In 1990, Western Exploration, Inc. changed its name to Nugget Exploration, Inc. On November 10, 1999, a wholly owned subsidiary of Nugget Exploration, Inc., Nugget Holdings Corporation, merged with and into GoHealthMD, Inc., a Delaware corporation. Shortly thereafter, Nugget Exploration, Inc. changed its name to GoHealthMD, Inc., a Nevada corporation.
On August 18, 2004, GoHealthMD, Inc., the Nevada Corporation, changed its name to Tree Top Industries, Inc. On July 7, 2017, Tree Top Industries, Inc. changed its name to Global Tech Industries Group, Inc. GoHealthMD, Inc. continues to exist as a Delaware corporation and wholly owned subsidiary of Global Tech Industries Group, Inc. MLN, Inc., BioEnergy Applied Technologies, Inc. (“BAT”), Eye Care Centers International, Inc., GoHealthMD Nano Pharmaceuticals, Inc., TTI Strategic Acquisitions and Equity Group, Inc., and TTII Oil & Gas, Inc., a Delaware corporation, all were formed by Global Tech in the anticipation of technologies, products, or services being acquired. G T International, Inc., a Nevada corporation, is an also a wholly-owned subsidiary of Global Tech Industries Group, Inc, existing as a Wyoming corporation.Inc. Not all subsidiaries are currently active.
Effective August 12, 2009, Global Tech completed a stock exchange with BAT, BioEnergy Systems Management Inc., Wimase Limited and Energetic Systems Inc., LLC. whereby Global Tech acquired 100% of the issued and outstanding stock of BAT. BAT is the originator of various proprietary, clean-tech, environmentally friendly technologies and intellectual properties in the areas of hazardous waste destruction, energetic materials, chemical recycling processes, and coal gasification. BAT also maintains unique electrolytic technology that simplifies the production of bio fuels, specifically biodiesel and its byproducts. Global Tech acquired all the issued and outstanding shares of BAT. Global Tech issued 35,000 shares of its common stock, par value $.001 per share, to the stockholders of BAT in exchange for the transfer of all the issued and outstanding shares of common stock of BAT by such stockholders.have current operations.
The Company also owns NetThruster, Inc., a Nevada corporation (“NetThruster”), which was formally known as Ludicrous, Inc. (“Ludicrous”). On January 28, 2011, the Board of Directors of Global Tech adopted resolutions approving the disposition by the Company of all the common stock of its wholly-owned subsidiary, NetThruster, Inc., a Delaware corporation (“NetThruster Delaware”), in a spin-off to Global Tech’s shareholders on a pro rata basis (the “Spin-Off”). Thereafter, NetThruster Delaware would be owned by Global Tech’s shareholders. David Reichman, the CEO of Global Tech was named Chairman of the Board, CEOcurrently has investing operations through TTII Strategic Acquisitions and CFO of NetThruster Delaware. Kathy M. Griffin was named a Director and corporate secretary. The Board of Directors of NetThruster Delaware is comprised of David Reichman and Kathy Griffin. On February 9, 2011, Global Tech entered into a distribution agreement with NetThruster Delaware (the “Distribution Agreement”). The Spin-Off is governed by the Distribution Agreement. A copy of the Distribution Agreement is attached by reference. The Spin-Off was disclosed in a Form 8-K, filed on February 9, 2011, which announced that the NetThruster division would be spun-off into a separate entity. Subsequently, management and the board of directors agreed to postpone the spin-off indefinitely
On May 25, 2011Global Tech signed a licensing agreement with WorldWithoutBlindness (“WWB”) for the right to market and sell their patented eye screening equipment on a global basis outside the United States, for a period of two years. Eye Care Centers International, Inc, was formed to support the further growth and development of (“WWB”), an organization whose primary mission is to bring patented eye screening equipment to the developing world. The WWB technology uses objective parameters instead of traditional subjective eye chart examinations, to screen children as young as six months old. This agreement was extended an additional two years through May 25, 2015.
On December 31, 2012, Global Tech and its new subsidiary, TTII Oil & Gas, Inc., a Delaware corporation, signed a binding asset purchase agreement with American Resource Technologies, Inc. (“ARUR”), a Kansas corporation, to acquire all the assets of ARUR for a purchase price of $513,538, which was paid in the form of shares of Global Tech’s common stock as described in the asset purchase agreement, which was disclosed in a Form 8 – K and is attached as an exhibit incorporated by reference. Subsequent to the Company’s purchase of the assets and the termination of the operator, a mechanics lien was filed against the property claiming approximately $267,000 in fees are due to the previous operator. At December 31, 2012, due to the lien, the Company impaired the recorded cost, leaving no value associated with the acquisition. See Note 11 for detail of the assets acquired from ARUR. An action is pending in the District Court of Chautauqua County, Kansas, captioned Aesir Energy, Inc. vs. American Resource Technologies, Inc.; Nancy Ownbey Archer; Jimmy Stephen Ownbey; Robbie Faye Butts; Tree Top Industries, Inc.; and TTII oil & Gas, Inc. Management intends to vigorously contest AESIR’s claims and, at this point, settlement appears unlikely. It has been presented in the County Court that some of ARUR’s Directors have acted without authorization in this matter. No monetary claims have been asserted against Global Tech or TTII Oil & Gas, Inc. The Company has made several attempts to recover the shares of GTII stock paid to ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing the case has not yet been decided.
On December 30, 2016, Global Tech IndustriesEquity Group, Inc., a Nevada corporation, executed a stock purchase agreement (the “Agreement”), which was signedwherein the Company holds various Marketable Securities, however the amounts of investments are minimal as of March 31, 2020. The Company is also involved in various merger and closed in Hong Kong, with GoFun Group, Ltd. through its wholly owned subsidiary Go F & B Holdings, Ltd. GoFun Group, Ltd.acquisition activities, and is a privately held company running a casual dining restaurant business, based in Hong Kong.Subsequentcurrently negotiating opportunities that are expected to bring operating revenues to the agreement being signed, GoFun Group failedCompany. The Company continues to substantially perform under the agreement, including, but not limitedseek opportunities to providing audited financials ofutilize its assets, making the ongoing payments called for in the agreement, alongintellectual properties and relationships with other matters that led Global Tech to initiate litigation in the United States. Currently, Global Tech and GoFun are litigating the matter in the U.S District Court for the southern district of New York. As of this writing the case has not yet been decided.our valued business associates.
Organizational History
We were incorporated in 1980 under the laws of the State of Nevada under the name of Western Exploration, Inc. Western Exploration, Inc., a Nevada corporation, was formed on July 24, 1980. In 1990, Western Exploration, Inc. changed its name to Nugget Exploration, Inc. On November 10, 1999, a wholly-owned subsidiary of Nugget Exploration, Inc., Nugget Holdings Corporation merged with and into GoHealthMD, Inc., a Delaware corporation. Shortly thereafter, Nugget Exploration, Inc. changed its name to GoHealthMD, Inc. a Nevada corporation.
On August 18, 2004, GoHealthMD, Inc., the Nevada Corporation, changed its name to Tree Top Industries, Inc. On July 7, 2016, Tree Top Industries, Inc. changed its name to Global Tech Industries Group, Inc. GoHealthMD, Inc. continues to exist as a Delaware corporation and wholly-owned subsidiary of Global Tech Industries Group, Inc. NetThruster, Inc. MLN, Inc., BioEnergy Applied Technologies, Inc. (BAT”), Eye Care Centers International, Inc., GoHealthMD Nano Pharmaceuticals, Inc., TTI Strategic Acquisitions and Equity Group, Inc. and TTII Oil & Gas, Inc, all were formed by Global Tech in the anticipation of technologies, products or services being acquired. G T International, Inc. is a wholly owned subsidiary of Global Tech Industries Group, Inc., existing as a Wyoming corporation. Not all subsidiaries are currently active.
On December 31, 2012, Global Tech and its new subsidiary, TTII Oil & Gas, Inc., a Delaware corporation, signed a binding asset purchase agreement with American Resource Technologies, Inc. (“ARUR”), a Kansas corporation, to acquire all the assets of ARUR for a purchase price of $513,538, which was paid in the form of 466,8534,668,530 shares of Global Tech’s common stock as described in the asset purchase agreement. The shares were valued at $1.10$0.11 per share, based on the closing trading price of the common stock on the Closing Date. The assets purchased from ARUR include a 75% working interest in oil and gas leases in Kansas, as well as other oil field assets, a natural gas pipeline, currently shut down that is also located in Kansas, 25% interest in three other business entities operating in Kansas, and accounts receivables from two companies operating in Brazil in the amounts of $3,600,000 and $3,600,000 respectively. TTII Oil & Gas, Inc. also purchased three promissory notes in the amounts of $100,000, $100,000 and $350,000, as well an overdue contract for revenue in the amount of $1,000,000. Finally, a gun sight patent was also acquired from Century Technologies, Inc. TTII Oil & Gas, Inc. intends to pursue more opportunities in Kansas to expand the current leases, and to aggressively continue pumping oil from the thirteen currently operating wells. At the same time, both Global Tech Industries Group, Inc. and TTII Oil & Gas, Inc. intend to aggressively pursue the two companies located in Brazil, who are responsible for the over $7,000,000 dollars in monies owed to TTII Oil & Gas, Inc. All accounts and notes receivable were deemed uncollectable due to the age and circumstances, and therefore were assessed no value in the asset purchase. The equity ownerships were also deemed to be impaired due to the inactive nature of the entities, and were not allocated any value. The gun sight patent was also not readily assessable as to value and no purchase price was allocated to this asset. Also, due to the mechanic’s lien and lawsuit on the oil leases, as well as the absence of an official reserve report, the oil lease was also impaired and no value was recorded for this asset. On September 2015, the Chautauqua County Court decided that American Resource Technologies Inc management and Board of Directors improperly acted and rendered the original Agreement a nullity. During 2019, the Company removed additional obligations related to the ARUR acquisition and settled legal fees due. The Company has made several attemptsis continuing its efforts to recoverlegally cancel the shares of GTII stock paidissued to the ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing the case has not yet been decided.shareholders.
On December 30, 2016, Global Tech Industries Group, Inc., a Nevada corporation, executed a stock purchase agreement (the “Agreement”), which was signed and closed in Hong Kong, with GoFun Group, Ltd. through its wholly owned subsidiary Go F & B Holdings, Ltd. GoFun Group, Ltd. is a privately held company running a casual dining restaurant business, based in Hong Kong.Subsequent to the agreement being signed, GoFun Group failed to substantially perform under the agreement, including, but not limited to providing audited financials of its assets, making the ongoing payments called for in the agreement, along with other matters that led Global Tech to initiate litigation in the United States. Currently, Global Tech and GoFun are litigating the matter in the U.S District Court for the southern districtSouthern District of New York.York, Docket No.17-CV-03727. As of this writing the case has not yet been decided. . . On October 2, 2019, the Company was able to secure, via preliminary settlement, the return of 43,649,491 shares of the Company’s stock, that was issued in good faith to GoFun in anticipation of a final stock exchange. The stock has since been returned to the Company’s treasury and cancelled As of this writing, motions are pending that may require remaining negotiations to continue in arbitration.
TheOn December 30, 2019, a dispute between the Company is indebtedand its counsel regarding the GoFun matter, above, resulted in a filing, and subsequent settlement, of an action in the Supreme Court of the State of New York for the County of New York (Index No. 656396/2019). Pursuant to the officers ofsettlement, counsel for the Company accepted previously-issued shares as full payment for unpaid wagesall legal work, expenses, costs, and bonuses from previous years that were converted into Notes. The balances at September 30, 2018 are $421,044 to Mr. Reichman and $206,670 to Mrs. Griffin, respectively. The notes bear interest at 5% are due at October 1, 2018 and are unsecured.other fees.
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Due to officers as of September 30, 2018 and December 31, 2017 are totals of $367,462 and $354,623, respectively. These balances consist of net cash advances, and unpaid expense reimbursements due to David Reichman. The payables and cash advances are unsecured, due on demand and do not bear interest. During the first nine months of 2019 Mr. Reichman advanced $12,839 to the Company to cover operating expenses.
Employees
As of August 10, 2019June 17, 2020 we have 1 full-time employee and one part time employee. We have not experienced any work stoppages and we consider relations with its employees to be good.
RESULTS OF OPERATIONS
Results of Operations for the three months ended September 30, 2019Three Months Ended March 31, 2020 Compared to three months ended September 30, 2018:Three Months Ended March 31, 2019:
We realized revenues of $0 during the three months ended September 30, 2018March 31, 2020 and 2019. Our general operating expenses decreased from $ 691,652277,228 in 20182019 to $239,164$200,865 in 2019.2020. The decrease was primarily the result of an aquisition relateddecreases in travel expenses which are part of administrative expenses.and professional fees. Due to the Coronavirus, the Company executives travelled less during the first quarter 2020, due to certain restrictions.
Our net loss decreasedincreased by $451,911$17,036 from $718,008$267,811 in 20182019 to a loss of $266,097$284,846 in 2019. The primary reason for this decrease was the result of an increase in consulting expense. We expect that our losses will continue until we are able to establish a consistent revenue source and finalize our projected acquisition. Management and the Board are considering multiple options currently available.
Results of Operations for the nine months ended September 30, 2019 Compared to nine months ended September 30, 2018:
We realized revenues of $0 during the nine months ended September 30, 2018 and 2019. Our general operating expenses decreased from $ 1,189,980 in 2018 to $985,172 in 2019. The decrease was primarily the result of consulting expenses earlier in the year which are part of administrative expenses.
Our net loss decreased by $202,580 from $1.267,784 in 2018 to a loss of $1.065,204 in 2019.2020. The primary reason for this increase was the result of consultingincreased interest expense earlier inand the year.loss on marketable securities. We expect that our losses will continue until we are able to establish a consistent revenue source and finalize our projected acquisition. Management and the Board are considering multiple options currently available.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2019March 31, 2020 we had cash on hand of $3,820$1,399 compared to $7,849$1,435 at December 31, 2018. We2019. Cash used cash inby our operations of $18,337$(28,937) in 20192020 compared to cash usedprovided of $264,967$4,727 in 2018. We generated cash-flow decrease from financing2019. Our operations are supported by our CEO who uses individual credit to pay for expenses of the Company. In 2019, there were refunds of previously reported expenses which caused our operating activities during 2019 of $12,838, compared to a cash influx of $162,240, for the same period in 2018.be positive. We anticipate that we will continue to have a negative cash flow from operations for 2019.2020. We do not have sufficient cash on hand at September 30, 2019March 31, 2020 to cover our negative cash flow. We will attempt to raise capital through the sale of our common stock or through debt financing, or engaging in other operations.
Some of Global Tech’s past due obligations, including $338,000 of accounts payable, and $113,000 of notes payable and judgments, some of which are duplicative, were incurred or obtained prior to 2005. No actions have been taken by any of the applicable creditors, and the statute of limitations has been exceeded for the creditors to seek legal action. Global Tech believes that these obligations will not be satisfied in the future because the statute of limitations has been exceeded, butand is not allowedcurrently seeking a judicial resolution to remove them from our books and records due to accounting regulations.these obligations.
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During the ninethree months ended September 30, 2019,March 31, 2020, the Company’s working capital deficit increaseddecreased from $(2,166,033) to 6,083,046 from $5,337,427, an increase$(2,447,519), a decrease of 14%13%, due to the extension of several long-term notes that had become current orincrease in default.accounts payable and accrued interest.
Any remedy to our current lack of liquidity must take into account all the foregoing liabilities. Global Tech intends to continue its pursuit to find other operating activities, and as necessary, raise capital in order to monetize its business and pay all its liabilities. Capital raise plans are under consideration but it cannot be assured that they will materialize in the current economic environment. Currently, Global Tech is without adequate financing or assets. Because no actions have been taken on the aforementioned past due obligations and demand has not been made by the applicable current note holders, we are unable to accurately quantify the effect the overdue accounts have on Global Tech’s financial condition, liquidity and capital resources. However, in the event that all of these obligations and notes payable were required to be paid in an amount equal to the full balance of each, Global Tech would not be able to meet the obligations based upon its current financial status. The liquidity shortfall of $(5,783,469)$(2,447,519) would cause Global Tech to default and, further, would put our continued viability in jeopardy.
CONTRACTUAL OBLIGATIONS
NoneThere are no new contractual obligations for the quarter ended March 31, 2020.
Going Concern Qualification
The Company has incurred significant losses from operations, and such losses are expected to continue. The Company’s auditors have included a “Going Concern Qualification” in their report for the year ended December 31, 2018.2019. In addition, the Company has limited working capital. The foregoing raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans include seeking additional capital and/or debt financing. There is no guarantee that additional capital and/or debt financing will be available when and to the extent required, or that if available, it will be on terms acceptable to the Company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The “Going Concern Qualification” may make it substantially more difficult to raise capital.
Potential Impact of COVID-19
As explained in the Explanatory Notes near the beginning of this Report, the Company was impacted by the COVID-19 virus and has relied on the COVID-19 Order. The Company’s Chief Executive and Financial Officer resides in the State of New York. The State of New York issued a lockdown order due to the COVID-19 virus which has resulted in certain offices being closed. This delayed the ability of the Company’s Chief Executive and Financial Officer to provide certain financial information concerning the Company to the Company’s accountant who prepared the Company’s financial statements for the period ended March 31, 2020. In turn, this delayed the review of the Company’s financial statements by the Company’s auditor and the Company’s ability to file its Quarterly Report on Form 10-Q for the period ended March 31, 2020 on a timely basis.
In addition, the Company is concerned that the COVID-19 virus may impact the Company’s ability to raise additional equity capital due to the uncertainty of the virus’ effects on the economy and capital markets, which may make potential investors less likely to invest during the pandemic. This may affect the Company’s ability to raise equity capital to meet its financial obligations, implement its business plan and continue as a going concern.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information we are required to disclose is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Commission. David Reichman, our Chief Executive Officer and our Principal Accounting Officer, is responsible for establishing and maintaining our disclosure controls and procedures.
Under the supervision and with the participation of our management, including the Chief Executive Officer and Principal AccountingChief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Principal Accounting Officer has concluded that, as of September 30, 2019 theseThe disclosure controls and procedures were ineffective to ensure that all information required to be disclosed by us in the reports that we file or submit under the Exchange Act is: (i) recorded, processed, summarized and reported, within the time periods specified in the Commission’sSEC’s rule and forms; and (ii) accumulated and communicated to our management including our Chief Executive Officer and Principal Accounting Officer, as appropriate to allow timely decisions regarding required disclosure. The Company’sBased on that evaluation, management concluded that our controls arewere not effective due to a lackas of the segregation of duties. The Company lacks the appropriate personnel to handle all the varying recording and reporting tasks on a timely basis. The Company plans to address these material weaknesses as resources become available by hiring additional professional staff, such as a Chief Financial Officer, as funding becomes available, outsourcing certain aspects of the recording and reporting functions, and separating responsibilities. The Company believes that it would require approximately $250,000 per year in available funds in order to retain the qualified personnel required for effective disclosure controls and procedures.March 31, 2020.
The term “internal control over financial reporting” is defined as a process designed by, or under the supervision of, the registrant’s principal executive and principal financial officers, or persons performing similar functions, and effected by the registrant’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
Changes in Internal Controls over Financial Reporting
There were no additional changes in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2019March 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations over Internal Controls
Global Tech’sThe Company’s management does not expect that its disclosure controls or its internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within Global Techthe Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
Our disclosure controls and procedures are designed to provide reasonable assurance of that our reports will be accurate. Our Chief Executive Officer and Principal Accounting Officer concludes that our disclosure controls and procedures were ineffective at that reasonable assurance level, as of the end of the period covered by this Form 10-Q. Our future reports shall also indicate that our disclosure controls and procedures are designed for this reason and shall indicate the related conclusion by the Chief Executive Officer and Principal Accounting Officer as to their effectiveness.
Notwithstanding this finding of ineffective disclosure controls and procedures, we concluded that the consolidated financial statements included in this Form 10-Q present fairly, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States.
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During April 2012, the Company filed suit in Los Angeles Superior Court against GeoGreen Biofuels, Inc. and related parties, relating to GeoGreen’s failure to repay $192,000 advanced pursuant to a Bridge Loan Term Sheet. Although litigation is inherently unpredictable, GTII is confident in its position, and intends to pursue the action aggressively. GeoGreen has filed a cross-complaint against the Company and its two officers, the Chief Executive Officer and the President, however the charges against the officers were subsequently dismissed with prejudice. A motion was also passed denying GeoGreen’s motion to strike GTIIs request for punitive damages. The Company has dropped its law suit for the time being.
On February 3, 2017, the Company filed suit in Eastern District Federal Court New York against American resourceResource Technologies, Inc., (ARUR) and several directors and officers relating to the Chautauqua County Court Kansas decision nullifying the Agreement.acquisition Agreement of ARUR. The Company has made several attempts to recover the shares of GTII stock paid to ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing theDocket No. 17-CV-0698. The case has not yet been decided.
During March 2013, the Company was named in an action pertaining to the 75% working interest in the Ownbey Lease. Subsequent to the Company’s purchase of the assets and the termination of the operator, a mechanics lien was filed against the property claiming approximately $267,000 in fees aresubsequently withdrawn due to the previous operator. An action is pending in the District Court of Chautauqua County, Kansas, captioned Aesir Energy, Inc. vs. American Resource Technologies, Inc.; Nancy Ownbey Archer; Jimmy Stephen Ownbey; Robbie Faye Butts; Global Tech Industries Group, Inc. and TTII oil & Gas, Inc. Management intends to vigorously contest AESIR’s claims and, at this point, settlement appears unlikely. It has been presented in the County Court that some of ARUR’s Directors have acted without authorization in this matter, and GTII’s management is assessing how to proceed at this time. No monetary claims have been asserted against GTII or TTII Oil & Gas, Inc.On the 3rd of February 2017, GTII filed an action for declaratory relief in the Eastern District of New York, for the purpose of recovering the costs, expenses and consideration paid to ARUR for the rights and benefits associated with an Oil and Gas transaction entered into between the parties on December 31st, 2012. The action by GTII is predicated on the underlying contract for the sale of the assetsclose of ARUR being vacated by a local Kansas Court on the basis that the company and its officers lacked the authority to enter into the contract. Because of that decision GTII lost all interest in the transaction, their associated benefits and any financial gain that may have been anticipated. Attempts were made to resolve this without litigation but have been unsuccessful. The matter is proceeding accordingly.operations. The Company has made several attemptsis continuing its efforts to recoverlegally cancel the shares of GTII, f/k/a TTI stock paidissued to the ARUR for the asset acquisition and the various costs and expenses expended by GTII in fulfillment of its obligations under the contract with ARUR. The failure of non-litigation attempts to resolve the matter resulted in filing an action for declaratory judgment in the US District Court for the Eastern District of New York, case#17-CV-0698. As of this writing the case has not yet been decided.shareholders.
On December 30, 2016, Global Tech Industries Group, Inc., a Nevada corporation,the Company executed a stock purchase agreement (the “Agreement”), which was signed and closed in Hong Kong, with GoFun Group, Ltd. through its wholly owned subsidiary Go F & B Holdings, Ltd. GoFun Group, Ltd. is a privately held company running a casual dining restaurant business, based in Hong Kong.Subsequent to the agreement being signed, GoFun Group failed to substantially perform under the agreement, including, but not limited to providing audited financials of its assets, making the ongoing payments called for in the agreement, along with other matters that led Global Tech to initiate litigation in the United States. Currently, Global Tech and GoFun are litigating the matter in the U.S District Court for the southern districtSouthern District of New York.York, Docket No.17-CV-03727. On October 2, 2019, the Company was able to secure, via preliminary settlement, the return of 43,649,491 shares of the Company’s stock, that was issued in good faith to GoFun in anticipation of a final stock exchange. The stock has since been returned to the Company’s treasury and cancelled. The Company also reclassified a deposit received from GoFun shareholders in the amount of $128,634 for future share issuances pursuant to the Acquisition Agreement, to a Gain on Settlements and Debt Relief as part of the legal settlement of this case. As of this writing, motions are pending that may require remaining negotiations to continue in arbitration.
.
On December 30, 2019, a dispute between the case has yetCompany and its counsel regarding the GoFun matter, above, resulted in a filing, and subsequent settlement, of an action in the Supreme Court of the State of New York for the County of New York (Index No. 656396/2019). Pursuant to be decided.the settlement, counsel for the Company accepted previously-issued shares as full payment for all legal work, expenses, costs, and other fees.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
There were 5,000,000no shares of common stock issued during the three months ended September 30, 2018.March 31, 2020.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Company has the following note payable obligations in default: | ||||||||
Note payable to Facts and Comparisons due September 1, 2002, with interest accrued at 6% per annum, unsecured, in settlement of a trade payable; unpaid to date and in default | 18,000 | 18,000 | ||||||
Note payable to Luckysurf.com due September 12, 2002 with interest accrued at 6% per annum, unsecured, in settlement of a trade payable; unpaid to date and in default | 30,000 | 30,000 | ||||||
Note payable to Michael Marks (a shareholder) due August 31, 2000 with interest accrued at 5% per annum, unsecured; unpaid to date and in default | 25,000 | 25,000 | ||||||
Note payable to Steven Goldberg (a former consultant) due July 10, 2002, unsecured with interest of 7% accrued if unpaid at due date, in settlement of liability; unpaid to date and in default | 40,000 | 40,000 | ||||||
Note payable to an individual, unsecured with interest of 6% per annum, unpaid to date and in default | 5,000 | |||||||
Note payable to a corporation, unsecured with interest of 6% per annum, unpaid to date and in default | 7,000 | |||||||
Note payable to a corporation, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 100,000 | |||||||
Note payable to a corporation, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 32,746 | |||||||
Note payable to a corporation, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 32,960 | |||||||
Note payable to a corporation, unsecured, non interest bearing, unpaid to date and in default | 192,000 | |||||||
Note payable to an LLC, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 5,000 | 5,000 | ||||||
Various Notes payable to a Trust, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 131,700 | |||||||
Various Notes payable to an individual, unsecured with interest accruing at 6% per annum, unpaid to date and in default | 60,340 | 388,376 | ||||||
Totals | $ | 379,181 | $ | 871,082 |
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None of these notes have been paid, and management has indicated that no demand for payment for any of these notes has been received by the Company. However, the Company received a notice of motion from Luckysurf.com dated October 22, 2002, seeking entry of a judgment for $30,000. No further information or action has been received by the Company relating to this note.
Not Applicable
3. Exhibits
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(1) | Filed November 13, 2009, as an exhibit to a Form 10-Q and incorporated herein by reference. |
Filed January 3, 2012, as an exhibit to an 8 – K and incorporated herein by reference. | |
Filed April 12, 2013, as an exhibit to an 8 – K and incorporated herein by reference. | |
(2) | Filed July 19, 2010, as an exhibit to a Form 10-K/A and incorporated herein by reference. |
(3) | Filed November 7, 2007, as an exhibit to a Form 8-K and incorporated herein by reference. |
(4) | Filed March 25, 2010, as an exhibit to a Form 8-K and incorporated herein by reference. |
(5) | Filed January 19, 2010, as an exhibit to a Form 8-K and incorporated herein by reference. |
(6) | Filed July 19, 2010, as an exhibit to a Form 10-Q/A and incorporated herein by reference. |
(7) | Filed February 9, 2011, as an exhibit to a Form 8-K and incorporated herein by reference. |
(8) | Filed April 19, 2011, as an exhibit to a Form 8 - K and incorporated herein by reference. |
(9) | Filed October 18, 2011 as an exhibit to a Form 8 - K and incorporated herein by reference. |
(10) | Filed March 6, 2012 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(11) | Filed March 23, 2012 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(12) | Filed August 21, 2012 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(13) | Filed January 8, 2013 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(14) | Filed January 8, 2013 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(15) | Filed January 5, 2017 as an exhibit to a Form 8 – K and incorporated herein by reference. |
(16) | Filed April |
(a) | Exhibits |
(a) Exhibits
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Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: | GLOBAL TECH INDUSTRIES GROUP, INC. | |
By: | /s/ David Reichman | |
David Reichman, Chairman of the Board, Chief Executive Officer, Chief Financial Officer and Principal Accounting Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ David Reichman | Dated: | |
David Reichman, Chairman of the Board, Chief | |||
Executive Officer, Chief Financial Officer | |||
and Principal Accounting Officer | |||
By: | /s/ Kathy M. Griffin | Dated: | |
Kathy M. Griffin, Director, President | |||
By: | /s/ Frank Benintendo | Dated: | |
Frank Benintendo, Director & Secretary | |||
By: | /s/ Donald Gilbert | Dated: | |
Donald Gilbert, Director | |||
By: | /s/ | Dated: | |
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