UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM ~~10-Q/A~~10-Q

~~Amendment No. 1~~

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 000-54867

LGBTQ LOYALTY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

80-0671280

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

2435 Dixie Highway, Wilton Manors, FL 33305

(Address of principal executive offices, including zip code)

Tel: (858)-577-1746

(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:

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☒ 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☒ 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 definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if this 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 ☒

As of ~~November~~December 9, 2022 the Company had 1,179,890,617 shares of common stock, $0.001 par value, issued and outstanding.

Our independent audit firm has not finished their review and have not provided approval to this filing.

~~EXPLANATORY NOTE~~

This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and six months periods ended June 30, 2022 that we originally filed with the Securities and Exchange Commission, or the Commission, on October 17, 2022 or the Original Filing. The nature of our amendment was due to various accounts that required correction on our consolidated balance sheets and statements of operations.

~~Refer to Note 2 in the notes to the condensed consolidated financial statements for a further explanation of the restated figures.~~

LGBTQ Loyalty Holdings, Inc.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2022

TABLE OF CONTENTS

		PAGE

	PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2021

Item 4.	Controls and Procedures	2021

	PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	2122

Item 1A.	Risk Factors	2122

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2122

Item 3.	Defaults Upon Senior Securities	2122

Item 4.	Mine Safety Disclosures	2122

Item 5.	Other Information	2122

Item 6.	Exhibits	2122

	SIGNATURES	2223

LGBTQ Loyalty Holdings, Inc.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

	PAGE

~~Review Report of Independent Registered Public Accounting Firm~~	2

Condensed Consolidated Balance Sheets as of ~~June~~September 30, 2022 (unaudited) and December 31, 2021	2

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (unaudited)	3

Condensed Consolidated Statements of ~~Operations~~Cash Flows for the ~~three and six~~nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	4

Condensed Consolidated Statements of ~~Cash Flows~~Stockholders’ Deficit for the ~~six~~three and nine months ended ~~June~~September 30, 2022 and 2021 (unaudited)	5

~~Condensed Consolidated Statements of Stockholders’ Deficit for the three and six months ended June 30, 2022 and 2021 (unaudited)~~	6

Notes to Condensed Consolidated Financial Statements (unaudited)	76

~~REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM~~

To the Board of Directors and
Stockholders of LGBTQ Loyalty Holdings, Inc.

~~Results of Review of Interim Financial Information~~

We have reviewed the condensed consolidated balance sheets of LGBTQ Loyalty Holdings, Inc. (the Company) as of June 30, 2022 and 2021 and the related condensed consolidated statements of operations and stockholders’ deficit for the three-month and six-month periods ended June 30, 2022 and 2021, and the related condensed consolidated statements of cash flows for the six-month period then ended, and the related notes (collectively referred to as the interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the balance sheet of the Company as of December 31, 2021, and the related statements of operations, stockholders’ deficit, and cash flows for the year then ended (not presented herein); and in our report dated April 15, 2022, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2021, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

~~Basis for Review Results~~

These interim financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

~~Respectfully yours,~~

~~Haynie and Company~~

~~PCAOB ID 457~~

~~We have served as the Company’s auditor since 2018.~~

~~Salt Lake City, Utah~~

~~November 14, 2022~~

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,			September 30,			December 31,
	2022			2021			2022			2021
	(Unaudited)						(Unaudited)
ASSETS
Current assets:
Cash	$	12,934		$	78,348		$	9,387		$	78,348
Prepaid expenses and other current assets		8,270			6,925			8,270			6,925
Total current assets		21,204			85,273			17,657			85,273
Intangible assets, net		40,347			53,243			33,899			53,243
Total assets	$	61,551		$	138,516		$	51,556		$	138,516

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	1,408,776		$	985,917		$	1,549,593		$	985,917
Accrued salaries and consulting fees		723,007			660,331			743,321			660,331
Accrued interest and dividends		861,384			640,153			948,604			640,153
Notes payable		256,986			126,986			256,986			126,986
Notes payable to related party		71,800			1,800			71,800			1,800
Convertible notes payable, net of debt discount		2,415,028			2,195,145			2,415,028			2,195,145
Derivative liability on convertible notes payable		2,781,435			1,398,127			3,036,614			1,398,127
Series D preferred stock		1,758,224			-			1,758,224			-
Total liabilities		10,276,640			6,008,459			10,780,170			6,008,459

Commitments and contingencies		-			-			-			-

Stockholders’ equity (deficit):
Preferred stock, $0.001 par value, 10,000,000 shares authorized
Series A, 1 share designated, no shares issued or outstanding as of June 30, 2022 and December 31, 2021		-			-
Series B, 500,000 shares designated, no shares issued and outstanding as of June 30, 2022 and December 31, 2021		-			-
Series C, 129,559 shares designated, 51,559 shares issued and outstanding as of June 30, 2022 and December 31, 2021		52			52
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		1			1
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 1,132,010,984 and 912,068,287 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		1,132,010			832,719
Series A, 1 share designated, no shares issued or outstanding as of September 30, 2022 and December 31, 2021								-			-
Series B, 500,000 shares designated, 0 and 50,000 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively								-			-
Series C, 129,559 shares designated, 52,559 and no shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively								52			52
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively								1			-
Preferred stock								1			-
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 1,244,213,365 and 832,719,287 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively								1,244,213			832,719
Additional paid-in capital		12,549,667			13,215,129			12,549,666			13,215,129
Accumulated deficit		(23,896,819	)		(19,917,844	)		(24,522,546	)		(19,917,844	)
Total stockholders’ equity (deficit)		(10,215,089	)		(5,869,943	)		(10,728,614	)		(5,869,943	)
Total liabilities and stockholders’ equity (deficit)	$	61,551		$	138,516		$	51,556		$	138,516

See the accompanying notes to the unaudited condensed consolidated financial statements

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

2022 2021 2022 2021
Three Months Ended Nine Months Ended
September 30, September 30,
2022 2021 2022 2021
Revenue - - $ - -
Cost of net revenue - - - $ -
Gross profit - - - -

Operating expenses:
Personnel costs 27,852 132,097 188,253 1,521,218
Consulting fees 11,250 2,220 37,750 73,720
Legal and professional fees 78,245 308,382 360,030 567,032
Fund expenses - - 100,000 -
Sales and marketing 21,036 117,012 119,975 157,512
General and administrative 12,921 30,727 64,266 87,241
Depreciation and amortization 6,448 6,448 19,344 19,344
Total operating expenses 157,752 596,886 889,618 2,426,067

Loss from operations (157,752 ) (596,886 ) (889,618 ) (2,426,067 )

Other expense:
Interest expense (149,439 ) (437,528 ) (1,675,189 ) (1,726,856 )
Other income (expense) - (7,076 ) - (7,076 )
Change in derivative liability (318,536 ) 1,422,551 (1,471,760 ) (823,425 )
Total other expense (467,975 ) 977,947 (3,146,949 ) (2,557,357 )

Provision for income taxes - - - -
Net income (loss) $ (625,727 ) $ 381,062 $ (4,036,567 ) $ (4,983,424 )

Weighted average common shares outstanding - basic and diluted 1,218,194,847 553,901,386 1,032,011,912 650,976,730
Net income (loss) per common share - basic and diluted $ (0.001 ) $ 0.00 $ (0.004 ) $ (0.01 )
See the accompanying notes to the unaudited condensed consolidated financial statements
3

LGBTQ LOYALTY HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF ~~OPERATIONS~~CASH FLOWS
(Unaudited)
2022 2021 2022 2021
Three Months Ended Six Months Ended
June 30, June 30,
2022 2021 2022 2021
Revenue $ - $ - $ - $ -
Cost of net revenue - - - $ -
Gross profit - - - -

Operating expenses:
Personnel costs 46,407 93,121 160,401 1,389,121
Consulting fees 11,250 38,500 26,500 71,500
Legal and professional fees 124,992 153,527 281,785 258,650
Fund expenses - - 100,000 -
Sales and marketing 71,237 40,500 98,939 40,500
General and administrative 15,028 28,392 51,345 56,514
Depreciation and amortization 6,448 6,448 12,896 12,896
Total operating expenses 275,362 360,488 731,866 1,829,181

Loss from operations (275,362 ) (360,488 ) (731,866 ) (1,829,181 )

Other income (expense):
Interest expense (1,419,622 ) (727,642 ) (1,525,750 ) (1,289,328 )
Change in derivative liability (794,036 ) (2,658,949 ) (1,153,224 ) (2,245,976 )
Total other income (expense), net (2,213,658 ) (3,386,591 ) (2,678,974 ) (3,535,304 )

Provision for income taxes - - - -
Net loss $ (2,489,020 ) $ (3,747,079 ) $ (3,410,840 ) $ (5,364,485 )

Weighted average common shares outstanding - basic and diluted 994,630,987 553,901,386 938,916,526 432,821,915
Net loss per common share - basic and diluted $ (0.003 ) $ (0.01 ) $ (0.004 ) $ (0.01 )
2022 2021
Nine Months Ended
September 30,
2022 2021
Cash flows from operating activities:
Net loss $ (4,036,567 ) $ (4,983,424 )
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and original issue discount 158,690 1,077,708
Change in fair value of derivative liability 1,471,760 823,425
Financing related costs - debt 1,220,986 460,780
Stock-based compensation expense - 1,218,114
Depreciation and amortization 19,344 19,344
Changes in operating assets and liabilities:
Prepaid expenses and other current assets (1,345 ) (12,058 )
Accounts payable 551,600 (54,428 )
Accrued salaries and consulting fees 82,990 223,279
Accrued interest and dividends 263,581 141,132
Net cash used in operating activities (268,961 ) (1,086,128 )
Cash flows from investing activities:
Purchases of property and equipment - -
Other receivables - (205,000 )
Net cash used in investing activities - (205,000 )
Cash flows from financing activities:
Net proceeds (repayments) from promissory note agreements 200,000 (1,000 )
Proceeds from issuance of convertible debenture agreements - 300,000
Repayments of convertible debt agreements - (56,350 )
Proceeds from issuance of common stock under equity line of credit - 78,620
Proceeds from issuance of Series D preferred stock - 1,061,600
Net cash provided by financing activities 200,000 1,382,870
Net change in cash (68,961 ) 91,741
Cash at beginning of period 78,348 30,312
Cash at end of period $ 9,387 $ 122,053

Supplemental disclosure of cash flow information:
Cash paid for income taxes $ - $ -
Cash paid for interest $ - $ 4,944

Supplemental disclosure of non-cash financing activities:
Exercise of common stock warrants $ 140,966 $ -
Dividends on preferred stock $ 44,870 $ 30,866
Conversion of Series D preferred stock for common stock $ 111,000 $ -
Deemed dividend on conversion of preferred stock $ 523,266 $ -
Debenture conversions $ 238,764 $ -
Reclassification of Series D preferred stock $ 1,015,999 $ -
Conversion of accrued consulting fees into common shares $ - $ 338,608
Conversion of related party notes payable into common shares $ - $ 16,085
Conversion of Series C preferred stock into common stock $ - $ 78,000
See the accompanying notes to the unaudited condensed consolidated financial statements

4

LGBTQ LOYALTY HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)

2022 2021
Six Months Ended
June 30,
2022 2021
Cash flows from operating activities:
Net loss $ (3,410,840 ) $ (5,364,485 )
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and original issue discount 109,690 704,007
Change in fair value of derivative liability 1,153,224 2,245,976
Financing related costs - debt 1,220,986 460,780
Stock-based compensation expense - 1,218,114
Depreciation and amortization 12,896 12,896
Changes in operating assets and liabilities:
Prepaid expenses and other current assets (1,345 ) 14,058
Accounts payable 422,984 (105,699 )
Accrued salaries and consulting fees 62,550 201,470
Accrued interest and dividends 194,441 93,663
Net cash used in operating activities (235,414 ) (519,220 )
Cash flows from investing activities:
Other receivables - (205,000 )
Net cash used in investing activities - (205,000 )
Cash flows from financing activities:
Net proceeds (repayments) from promissory note agreements 170,000 (1,000 )
Proceeds from issuance of convertible debenture agreements - 300,000
Proceeds from issuance of Series D preferred stock - 574,100
Net cash provided by financing activities 170,000 873,100
Net change in cash (65,414 ) 148,880
Cash at beginning of period 78,348 30,312
Cash at end of period $ 12,934 $ 179,192

Supplemental disclosure of cash flow information:
Cash paid for income taxes $ - $ -
Cash paid for interest $ - $ -

Supplemental disclosure of non-cash financing activities:
Exercise of common stock warrants $ 140,966 $ 61,775
Dividends on preferred stock $ 44,870 $ 11,241
Conversion of Series D preferred stock for common stock $ 74,000 $ -
Deemed dividend on conversion of preferred stock $ 523,266 $ -
Debenture conversions $ 126,562 $ -
Reclassification of Series D preferred stock $ 1,015,999 $ -
Derivative liability – inception $
306,646
$ -
Conversion of accrued consulting fees into common shares $ - $ 338,608
Conversion of related party notes payable into common shares $ - $ 16,085
Conversion of Series C preferred stock into common stock $ - $ 53,000
Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit
Preferred Stock Additional Total
Series A Series B Series C Series D Common Stock Paid-in Accumulated Stockholders’
Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit

Balances at December 31, 2020 - $ - 50,000 $ 50 129,559 $ 130 - - 263,725,234 $ 263,725 $ 7,714,704 $ (13,239,189 ) $ (5,260,580 )
Common shares issued to board of directors - - - - - - - - 140,000,000 140,000 980,000 - 1,120,000
Common shares issued for services and compensation - - - - - - - - 31,834,386 31,834 204,614 - 236,448
Debenture conversions - - - - - - - - 37,538,998 37,539 318,815 - 356,354
Dividends on preferred stock - - - - - - - - - - - (1,722 ) (1,722 )
Net loss - - - - - - - - - - - (1,617,405 ) (1,617,405 )
Balances at March 31, 2021 - - 50,000 50 129,559 130 - - 473,098,618 473,098 9,218,133 (14,858,316 ) (5,166,906 )
Debenture conversions - - - - - - - - 100,448,779 100,449 1,821,061 - 1,921,510
Conversion of notes and payables - - - - - - - - 11,956,004 11,956 192,408 - 204,364
Exercise of warrants - - - - - - - - 30,887,276 30,887 (30,887 ) - -
Conversion of Series C preferred stock into common stock - - - - (53,000 ) (53 ) - - 53,000,000 53,000 (52,947 ) - -
Dividends on preferred stock - - - - - - - - - - - (9,519 ) (9,519 )
Net loss - - - - - - - - - - - (3,747,079 ) (3,747,079 )
Balances at June 30, 2021 - $ - 50,000 $ 50 76,559 $ 77 - $ - 669,390,677 $ 669,390 $ 11,147,767 $ (18,614,915 ) $ (6,797,631 )
Debenture conversions - - - - - - - - 20,479,798 20,480 304,123 - 324,603
Exercise of warrants - - - - - - - - 30,887,275 30,887 (30,887 ) - -
Conversion of Series C preferred stock into common stock - - - - (25,000 ) (25 ) - - 25,000,000 25,000 (24,975 ) - -
Common shares issued pursuant to equity line of credit - - - - - - - - 13,386,862 13,387 72,309 - 85,696
Common shares issued for services - - - - - - - - 13,440,860 13,441 111,559 - 125,000
Conversion of Series B preferred stock for common shares - - (25,000 ) (25 ) - - - - 958,333 958 (933 ) - -
Issuance of Series B dividend common shares - - - - - - - - 461,395 461 6,439 - 6,900
Dividends on preferred stock - - - - - - - - - - - (19,625 ) (19,625 )
Net loss - - - - - - - - - - - 381060 381,060
Balances at September 30, 2021 - $ - 25,000 $ 25 51,559 $ 52 - $ - 774,005,200 $ 774,004 $ 11,585,402 $ (18,253,480 ) $ (5,893,997 )

Balances at December 31, 2021 - $ - - $ - 51,559 $ 52 1,050 $ 1 832,719,287 $ 832,719 $ 13,215,129 $ (19,917,844 ) $ (5,869,943 )
Exercise of warrants - - - - - - - - 43,349,000 43,349 (43,349 ) - -
Conversion of Series D preferred stock for common stock - - - - - - (45 ) - 36,000,000 36,000 (36,000 ) - -
Deemed dividend on conversion of preferred stock - - - - - - - - - - 237,924 (237,924 ) -
Dividends on preferred stock - - - - - - - - - - - (22,720 ) (22,720 )
Net loss - - - - - - - - - - - (921,819 ) (921,819 )
Balances at March 31, 2022 - - - - 51,559 52 1,005 1 912,068,287 912,068 13,373,704 (21,100,307 ) (6,814,482 )
Debenture conversions - - - - - - - - 84,325,397 84,325 42,236 - 126,561
Exercise of warrants - - - - - - - - 97,617,300 97,617 (97,617 ) - -
Conversion of Series D preferred stock for common stock - - - - - - (19 ) - 38,000,000 38,000 (38,000 ) - -
Deemed dividend on conversion of preferred stock - - - - - - - - - - 285,342 (285,342 ) -
Reclassification of Series D preferred stock - - - - - - - - - - (1,015,999 ) - (1,015,999 )
Dividends on preferred stock - - - - - - - - - - - (22,150 ) (22,150 )
Net loss - - - - - - - - - - - (2,489,020 ) (2,489,020 )
Balances at June 30, 2022 - $ - - $ - 51,559 $ 52 986 $ 1 1,132,010,984 $ 1,132,011 $ 12,549,666 $ (23,896,819 ) $ (10,215,094 )
Balance - $ - - $ - 51,559 $ 52 986 $ 1 1,132,010,984 $ 1,132,011 $ 12,549,666 $ (23,896,819 ) $ (10,215,094 )
Debenture conversions - - - - - - - - 112,202,381 112,202 - - 112,202
Net loss - - - - - - - - - - - (625,727 ) (625,727 )
Balances at September 30, 2022 - $ - - $ - 51,559 $ 52 986 $ 1 1,244,213,365 $ 1,244,213 $ 12,549,666 $ (24,522,546 ) $ (10,728,614 )
Balance - $ - - $ - 51,559 $ 52 986 $ 1 1,244,213,365 $ 1,244,213 $ 12,549,666 $ (24,522,546 ) $ (10,728,614 )

See the accompanying notes to the unaudited condensed consolidated financial statements

5

LGBTQ LOYALTY HOLDINGS, INC.
~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)~~
~~(Unaudited)~~
Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit
Preferred Stock Additional Total
Series A Series B Series C Series D Common Stock Paid-in Accumulated Stockholders’
Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Deficit

Balances at December 31, 2020     - $     - 50,000 $ 50 129,559 $ 130 - - 263,725,234 $ 263,725 $ 7,714,704 $ (13,239,189 ) $ (5,260,580 )
Common shares issued to board of directors - - - - - - - - 140,000,000 140,000 980,000 - 1,120,000
Common shares issued for services and compensation - - - - - - - - 31,834,386 31,834 204,614 - 236,448
Debenture conversions - - - - - - - - 37,538,998 37,539 318,815 - 356,354
Dividends on preferred stock - - - - - - - - - - - (1,722 ) (1,722 )
Net loss - - - - - - - - - - - (1,617,405 ) (1,617,405 )
Balances at March 31, 2021 - - 50,000 50 129,559 130 - - 473,098,618 473,098 9,218,133 (14,858,316 ) (5,166,906 )
Debenture conversions - - - - - - - - 100,448,779 100,449 1,821,061 - 1,921,510
Conversion of notes and payables - - - - - - - - 11,956,004 11,956 192,408 - 204,364
Exercise of warrants - - - - - - - - 30,887,276 30,887 (30,887 ) - -
Conversion of Series C preferred stock into common stock - - - - (53,000 ) (53 ) - - 53,000,000 53,000 (52,947 ) - -
Dividends on preferred stock - - - - - - - - - - - (9,519 ) (9,519 )
Net loss - - - - - - - - - - - (3,747,079 ) (3,747,079 )
Balances at June 30, 2021 - $ - 50,000 $ 50 76,559 $ 77 550 $ 1 669,390,677 $ 669,390 $ 11,147,767 $ (18,614,915 ) $ (6,797,631 )

Balances at December 31, 2021 - $ - - $ - 51,559 $ 52 1,050 $ 1 832,719,287 $ 832,719 $ 13,215,129 $ (19,917,844 ) $ (5,869,943 )
Exercise of warrants - - - - - - - - 43,349,000 43,349 (43,349 ) - -
Conversion of Series D preferred stock for common stock - - - - - - (45 ) - 36,000,000 36,000 (36,000 ) - �� -
Deemed dividend on conversion of preferred stock - - - - - - - - - - 237,924 (237,924 ) -
Dividends on preferred stock - - - - - - - - - - - (22,720 ) (22,720 )
Net loss - - - - - - - - - - - (921,819 ) (921,819 )
Balances at March 31, 2022 - - - - 51,559 52 1,005 1 912,068,287 912,068 13,373,704 (21,100,307 ) (6,814,482 )
Debenture conversions - - - - - - - - 84,325,397 84,325 42,237 - 126,562
Exercise of warrants - - - - - - - - 97,617,300 97,617 (97,617 ) - -
Conversion of Series D preferred stock for common stock - - - - - - (19 ) - 38,000,000 38,000 (38,000 ) - -
Deemed dividend on conversion of preferred stock - - - - - - - - - - 285,342 (285,342 ) -
Reclassification of Series D preferred stock - - - - - - - - - - (1,015,999 ) - (1,015,999 )
Dividends on preferred stock - - - - - - - - - - - (22,150 ) (22,150 )
Net loss - - - - - - - - - - - (2,489,020 ) (2,489,020 )
Balances at June 30, 2022 - $ - - $ - 51,559 $ 52 986 $ 1 1,132,010,984 $ 1,132,010 $ 12,549,667 $ (23,896,819 ) $ (10,215,089 )
~~See the accompanying notes to the unaudited condensed consolidated financial statements~~
6
~~LGBTQ LOYALTY HOLDINGS, INC.~~
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
~~June~~September 30, 2022

Note 1. Nature of Business

Throughout this report, the terms “our,” “we,” “us,” and the “Company” refer to LGBTQ Loyalty Holdings, Inc. (formerly LifeApps Brands Inc.), including its subsidiaries.

On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.

On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.

On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) approved a Plan of Liquidation for the Fund under which the Fund would be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance. On April 28, 2022, the Company effectuated the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. As of this date, the Fund has ceased operations.

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Note 2. Correction of Previously Issued Financial Statements
Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and six months ended ~~June~~September 30, 2022, the Company discovered several errors in its accounts on its condensed consolidated balance sheets and statements of operations.

The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:
Schedule of Restatement of Company’s Financial Statements
Original Adjustment As Restated
June 30, 2022 June 30, 2022
Original Adjustment As Restated Original Adjustment As Restated
Cash $ 11,269 $ 1,665 $ 12,934 $ 11,269 $ 1,665 $ 12,934
Total assets $ 59,886 $ 1,665 $ 61,551 $ 59,886 $ 1,665 $ 61,551

Accounts payable $ 1,386,797 $ 21,979 $ 1,408,776 $ 1,386,797 $ 21,979 $ 1,408,776
Accrued salaries and consulting fees 743,321 (20,314 ) 723,007 743,321 (20,314 ) 723,007
Derivative liability on convertible notes payable 2,769,066 12,369 2,781,435 2,769,066 12,369 2,781,435
Total liabilities 10,262,606 14,034 10,276,640 10,262,606 14,034 10,276,640
Common stock 1,132,007 3 1,132,010 1,132,007 3 1,132,010
Additional paid-in capital 12,549,666 1 12,549,667 12,549,666 1 12,549,667
Accumulated deficit (23,884,446 ) (12,373 ) (23,896,819 ) (23,884,446 ) (12,373 ) (23,896,819 )
Total stockholders’ equity (deficit) (10,202,720 ) (12,369 ) (10,215,089 ) (10,202,720 ) (12,369 ) (10,215,089 )
Total liabilities and stockholders’ equity (deficit) $ 59,886 $ 1,665 $ 61,551 $ 59,886 $ 1,665 $ 61,551

Original Adjustment As Restated
Six Months Ended June 30, 2022 Six months Ended June 30, 2022
Original Adjustment As Restated Original Adjustment As Restated
General and administrative $ 39,453 $ 11,892 $ 51,345 $ 39,453 $ 11,892 $ 51,345
Total operating expenses 719,974 11,892 731,866 719,974 11,892 731,866
Interest expense (1,525,116 ) (634 ) (1,525,750 ) (1,525,116 ) (634 ) (1,525,750 )
Change in derivative liability (1,105,465 ) (47,759 ) (1,153,224 ) (1,105,465 ) (47,759 ) (1,153,224 )
Net loss $ (3,350,555 ) $ (60,285 ) $ (3,410,840 ) $ (3,350,555 ) $ (60,285 ) $ (3,410,840 )

Six Months Ended June 30, 2022
Original Adjustment As Restated
Net cash used in operating activities $ (237,079 ) $ 1,665 $ (235,414 )
Original Adjustment As Restated
Six months Ended June 30, 2022
Original Adjustment As Restated
Net cash used in operating activities $ (237,079 ) $ 1,665 $ (235,414 )

Three Months Ended June 30, 2022
Original Adjustment As Restated
Debenture conversions $ 114,040 $ 12,522 $ 126,562
Furthermore, in the three months ended March 31, 2022, the deemed dividends related to Preferred Stock conversions were incorrectly recorded (instead of debiting shareholder deficit and crediting additional paid in capital, it did the opposite). They have been corrected in the second quarter. As the effect is a reclass within equity, we consider the change to be qualitatively immaterial.
Original Adjustment As Restated
Three Months Ended Sep June 30, 2022
Original Adjustment As Restated
Debenture conversions $ 114,040 $ 12,522 $ 126,562
Note 3. Summary of Significant Accounting Policies

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $~~23,896,819~~24,522,546 and have negative working capital of $~~10,255,436~~10,762,513 as of ~~June~~September 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Basis of Presentation

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

Prior Period Adjustments
In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

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Fair Value Measurements

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.

Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.

The following table is a summary of our financial instruments measured at fair value:
Schedule of Financial Instruments at Fair Value
Fair Value Measurements Fair Value Measurements
as of June 30, 2022: as of September 30, 2022:
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Liabilities:
Derivative liability on convertible notes payable and preferred stock $ - $ - $ 2,781,435 $ 2,781,435 $ - $ - $ 3,036,614 $ 3,036,614
$ - $ - $ 2,781,435 $ 2,781,435 $ - $ - $ 3,036,614 $ 3,036,614

Fair Value Measurements
as of December 31, 2021:
Level 1 Level 2 Level 3 Total
Liabilities:
Derivative liability on convertible notes payable $       - $ - $ 1,398,127 $ 1,398,127
$ - $ - $ 1,398,127 $ 1,398,127

Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.

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Earnings per Share

We calculate earnings per share in accordance with ASC Topic 260 Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:
Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss
2022 2021
Nine Months Ended
September 30,
2022 2021
Stock options outstanding - 1,800,000
Warrants 28,333,333 204,946,057
Shares to be issued upon conversion of notes 9,726,808,810 203,651,096
Series D preferred stock 2,010,000,000 67,826
Anti-dilutive securities 11,765,142,143 410,464,979

2022 2021
Six Months Ended
June 30,
2022 2021
Stock options outstanding - 1,800,000
Warrants 28,333,333 204,946,057
Shares to be issued upon conversion of notes 6,170,908,567 203,651,096
Series D preferred stock 2,010,000,000 67,826
Anti-dilutive securities 8,209,241,900 410,464,979
Recent Pronouncements

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Note 4. Intangible Assets

The Company capitalizes costs pertaining to the development of the LGBTQ100 ESG Index website. The Company began amortizing these costs upon the launch of the index, and will amortize the costs over a three-year useful life.

At ~~June~~September 30, 2022 and December 31, 2021, net intangible assets were $~~40,347~~33,899 and $53,243, respectively. Amortization expense was $~~12,896~~19,344 for both the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

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Note 5. Notes Payable

As of ~~June~~September 30, 2022 and December 31, 2021, the Company has a note payable outstanding in the amount of $1,986. The note is past due at ~~June~~September 30, 2022 and is, therefore, in default. The note accrues interest at a rate of 2% per annum.

In December 2019, the Company issued a promissory note to Pride Partners LLC (“Pride”) for $75,000. The note is secured, accrues interest at a rate of 10% per annum, and matured on June 20, 2020. As of ~~June~~September 30, 2022, the full principal amount was outstanding and in default.

In 2019, the Company issued a promissory note for $50,000. The note includes $2,500 in original issue discount. The noted is unsecured and matured in December 2019. As of ~~June~~September 30, 2022, the full principal amount was outstanding an in default.

In April 2022, Advancing Equality Preference entered into a loan payable for $130,000 for proceeds of $100,000. The loan matured on ~~June~~September 30, 2022 and is currently in default.

Note 6. Convertible Notes Payable

During the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the Company recorded amortization of debt discount and original issue discount of $~~109,690~~158,690 and $~~582,631~~1,077,708, respectively, for all convertible debentures. This amount is included in interest expense in our consolidated statements of operations.

The Company did not file its Form 10-Q for the quarter ended March 31, 2022 on a timely basis. As a result, several default provisions were triggered with the Company’s outstanding debentures. The Company recorded an additional $374,125 in additional principal owed upon this default provision. Accordingly, the Company recorded $374,125 in interest expense in the consolidated statements of operations.

The following is a summary of the activity of the convertible notes payable and convertible debenture for the ~~six~~nine months ended ~~June~~September 30, 2022:
Schedule of Convertible Notes Payable and Convertible Debentures Activity
Convertible
Debenture
Balance as of December 31, 2021 $ 2,195,145
Convertible debenture - debt discount (213,932 )
Additional principal per default provisions 374,125
Amortization of debt discount and original issue discount 109,690
Conversion to common stock, net of discount (50,000 )
Balance as of June 30, 2022 $ 2,415,028
Convertible
Debenture
Balance as of December 31, 2021 $ 2,195,145
Convertible debenture - debt discount (213,932 )
Additional principal per default provisions 374,125
Amortization of debt discount and original issue discount 158,690
Conversion to common stock, net of discount (99,000 )
Balance as of September 30, 2022 $ 2,415,028

The following comprises the balance of the convertible debenture outstanding at ~~June~~September 30, 2022 and December 31, 2021:
Schedule of Convertible Debenture Outstanding
September 30, December 31,
2022 2021
Principal amount outstanding $ 2,496,152 $ 2,221,027
Less: Unamortized original issue discount (79,962 ) -
Less: Unamortized original issue discount (1,162 ) (25,882 )
Total $ 2,415,028 $ 2,195,145

June 30, December 31,
2022 2021
Principal amount outstanding $ 2,545,152 $ 2,221,027
Less: Unamortized original debt discount (123,421 ) -
Less: Unamortized original issue discount (6,703 ) (25,882 )
Total $ 2,415,028 $ 2,195,145
1110

As of ~~June~~September 30, 2022 and December 31, 2021, the EMA Note was in default and the parity value of the EMA Note was determined to be $434,687. In 2021, the Company issued 60,714,000 shares of common stock pursuant to conversions of outstanding principal.

Note 7.Derivative Liability

We evaluated the terms of the conversion features of the debentures and related debenture warrants as noted above and below, in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock, and determined they are indexed to the Company’s common stock and that the conversion features meet the definition of a liability. Therefore, we bifurcated the conversion feature and accounted for it as a separate derivative liability.

To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded.

We value the conversion feature at origination of the notes using the Black-Scholes valuation model with the below assumptions. We value the derivative liability at the end of each accounting period, and upon conversion of the underlying note or warrant, with the difference in value recognized as gain or loss included in other income (expense) in our consolidated statements of operations.
Schedule of Conversion Feature of Derivative Liability
Six Months Ended
June 30,
2022 2021
Risk-free interest rate 2.01 % 0.09 %
Expected term (in years) 0.48 1.00
Expected volatility 154.5 % 237.4 %
Expected dividend yield 0 % 0 %
Exercise price of underlying common shares $ 0.001 $ 0.004
Nine months Ended
September 30,
2022 2021
Risk-free interest rate 2.01 % 0.09 %
Expected term (in years) 0.48 1.00
Expected volatility 154.5 % 237.4 %
Expected dividend yield 0 % 0 %
Exercise price of underlying common shares $ 0.001 $ 0.004

During the ~~six~~nine months ended ~~June~~September 30, 2022, the entire value of the principal of the debentures was assigned to the derivative liability and recognized as a debt discount. The debt discount is recorded as reduction (contra-liability) to the debentures and is being amortized over the initial term. Any excess balance was recognized as origination interest on the derivative liability and expensed on origination. In accordance with the Company’s sequencing policy, shares issuable pursuant to the convertible debentures would be settled subsequent to the Company’s Series B preferred stock.

The following is a summary of the activity of the derivative liability for the ~~six~~nine months ended ~~June~~September 30, 2022:
Schedule of Derivative Liability Activity
Debenture
Balance as of December 31, 2021 $ 1,398,127
Initial fair value per derivative recognition 294,124
Conversion of debenture to common stock (127,397 )
Change in fair value of derivative liability 1,471,760
Balance as of September 30, 2022 $ 3,036,614

Debenture
Balance as of December 31, 2021 $ 1,398,127
Initial fair value per derivative recognition 306,646
Conversion of debenture to common stock (76,562 )
Change in fair value of derivative liability 1,153,224
Balance as of June 30, 2022 $ 2,781,435
1211

Note 8. Preferred Stock
Series D Convertible Preferred Stock
On April 8, 2021, the Company issued 400 shares of Series D Convertible Preferred Stock (the Series D Preferred Stock”) to GHS Investments, LLC (“GHS”) pursuant to a Securities Purchase Agreement (“GHS April Agreement”) for net proceeds of $427,600. In conjunction with the GHS Agreement, the Company issued warrants to purchase 40,000,000 shares of common stock at an exercise price of $0.001.

On May 12, 2021, the Company issued 150 shares of Series D Preferred Stock to GHS Investments, LLC pursuant to a Securities Purchase Agreement (“GHS May Agreement”) for net proceeds of $146,500. In conjunction with the GHS Agreement, the Company issued warrants to purchase 1,500,000 shares of common stock at an exercise price of $0.001.

Notwithstanding, on June 23, 2021, GHS and the Company entered into a Rescission Agreement (the “Rescission Agreement”) pursuant to which the Company and GHS agreed to rescind, ab initio, the issuances of Warrants to GHS. Pursuant to the Rescission Agreement, GHS and the Company agreed that the issuance of the Warrants are unconditionally and irrevocably rescinded ab initio by GHS and the Company, and the Warrants are neither valid nor effective in any manner whatsoever. Further, GHS and the Company acknowledged that each has been restored to the position in which such party found itself on the date that the respective GHS Agreement was executed but without any references, rights or obligations relative to the Warrants contained in, or otherwise granted in, either the GHS Agreements or the Warrants. As a result, GHS has no rights whatsoever to the Warrants and the Company has no rights whatsoever to the any exercise price that it may have received pursuant to the Warrants. In connection with the execution and delivery of the Rescission Agreement, the Company and GHS entered into two (2) Amended and Restated Purchase Agreements which each seek to amend and restate the terms and conditions contained in the April Agreement and the May Agreement.

On July 14, 2021, the Company issued 250 shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS July Agreement”) for net proceeds of $237,500. On August 20, 2021, the Company issued 250shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS August Agreement”) for net proceeds of $250,000.

On the one-year anniversary of the date of issuance of the Preferred Stock, the Company must redeem the Preferred Stock then outstanding at a price equal to the outstanding Stated Value together with any accrued but unpaid dividends.

In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share. As a result of the conversion, the Company recorded a deemed dividend of $237,924, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0015) and original fixed conversion price of $0.008109.

In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $22,800 for 38,000,000 shares of common stock at a conversion price of $0.0006 per share. As a result of the conversion, the Company recorded a deemed dividend of $285,342, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0006) and original fixed conversion price of $0.008109.

As of ~~June~~September 30, 2022, there were 986 shares of Series D preferred stock outstanding, and $97,814 in accrued Series D dividends. As of December 31, 2021, there were 1,050 shares of Series D preferred stock outstanding, and $52,944 in accrued Series D dividends.

Due to the Company’s late filing on its Form 10-Q for the quarter ended March 31, 2022 (see Note 7), default provisions were triggered with the GHS agreement. As a result, it was determined all preferred stock were due for redemption immediately. The Company determined that $1,758,224, inclusive of the stated value of the Series D preferred stock, and inclusive of accrued dividends, default penalties and interest, was due. As such, the Company reclassified $1,015,999 of Series D preferred stock from additional paid-in capital to a current liability. The remaining amount of $644,411 was included in interest expense in the consolidated statements of operations.

12
Note 9. Stockholders’ Equity (Deficit)

Common Stock
In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share.
In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $57,000 for 38,000,000 shares of common stock at a conversion price of $0.0006per share.

In the ~~six~~nine months ended ~~June~~September 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

In March 2021, an aggregate of 140,000,000 shares of common stock were issued to the board members for accrued dividends as well as current compensation the year ended December 31, 2021. Of these shares issuances, $961,666 is included in personnel costs in the consolidated statements of operations.

In March 2021, an aggregate of 31,834,386 shares of common stock were issued to employees and consultants for accrued and current consulting services for a total fair value of $236,448.

In June 2021, an aggregate of 11,956,004 shares of common stock were issued pursuant to conversion of balances owed to a related party and accrued consulting services totaling $204,364.

In June 2021, Auctus exercised 32,142,857 warrants into shares of common stock.

During the ~~six~~nine months ended ~~June~~September 30, 2021, Pride converted 53,000 shares of Series C preferred stock for 53,000,000 shares of common stock.

During the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the Company issued ~~84,325,397~~196,527,778 and 137,987,777 shares of common stock pursuant to conversion of debentures in the principal amount of $~~50,000~~99,000 and $495,247, all respectively.

Note 10. Options and Warrants

Options

As of ~~June~~September 30, 2022 and December 31, 2021, we had 0 options remaining outstanding pursuant to the 2012 Equity Incentive Plan.

Warrants

As of ~~June~~September 30, 2022 and December 31, 2021, we had 28,333,333 and 174,058,782 warrants outstanding, respectively, with a weighted average exercise price of $0.01 and $0.02 per share. In the ~~six~~nine months ended ~~June~~September 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

13

Note 11. Related Party Transactions

Parties, which can be a corporation or an individual, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Notes Payable to Related Party

Notes payable to related parties at ~~June~~September 30, 2022 and December 31, 2021 included a note of $1,800 with a 2% annual interest rate. Currently the Company has defaulted on this obligation. Forbearance has been granted by the related party.

In February 2022, the Company issued a promissory note to a related party for $70,000. The note is unsecured and matured in April 2022. The note does not bear interest. The note includes a promise to issue shares of the Company’s preferred stock, which was undetermined as of ~~June~~September 30, 2022. As of ~~June~~September 30, 2022, the note was in default.

Accrued Salaries and Compensation

As of ~~June~~September 30, 2022 and December 31, 2021, accrued salaries to our company officers and executive director totaled $522,804 and $472,804, respectively, and is included in accrued salaries and consulting fees in our consolidated balance sheets.

In March 2021, we issued200,000,000 shares of common stock to the Chief Operating Officer for a total fair value of $160,000.

Board of Directors

In March 2021, we issued 20,000,000 shares of common stock to each of the seven board members, including the Chief Executive Officer, for an aggregate of 140,000,000 shares. Of these share issuances, $961,666 is included in personnel costs in the consolidated statements of operations and the remaining $138,334 was converted from accrued salaries and consulting fees.

A former board member is the co-founder and president of ProcureAM, LLC, the fund advisor for the Fund. During 2021, we initially received $100,000 from ProcureAM and provided an additional $305,000 to the custodian. As of December 31, 2021, we have recorded $305,000 in fund expenses and do not expect to receive any amounts back from ProcureAM. In the ~~six~~nine months ended ~~June~~September 30, 2022, we recorded an additional $100,000 in fund expenses which we do not expect to receive any amounts back from ProcureAM. As such, other receivable was $0 on the consolidated balance sheets.

On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.

On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.
Accounts Payable

As of ~~June~~September 30, 2022 and December 31, 2021, the Company had $168,308 and $102,808, respectively, included in accounts payable to related parties including officers and board members.

Note 12. Subsequent Events

Management has evaluated all activity up to ~~November 11,~~December 9, 2022 and concluded that no subsequent events have occurred that would require recognition in these financial statements or disclosure in the notes to these financial statements other than the following:

On ~~August 25,~~October 5, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Directorformer members of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respectiveBoard tendered 64,322,748 shares of ~~Common Stock~~common stock back to the Company.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the financial information included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”), including our unaudited condensed consolidated financial statements as of ~~June~~September 30, 2022 and for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021 and the related notes. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations section to “us,” “we,” “our,” and similar terms refer to LGBTQ Loyalty Holdings, Inc., a Delaware corporation. This discussion includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as “anticipate,” “estimate,” “plan,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions are used to identify forward-looking statements.

We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors that may affect our results include, but are not limited to, the risk factors in Item 2.01 in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2022. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Moreover, we operate in a very competitive changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and certainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

Business Overview

On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.
On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.

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Fund Closure

On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) has approved a Plan of Liquidation for the Fund under which the Fund will be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance.

LGBTQ Loyalty has generated an abundance of media coverage for our premier LGBTQ Index product with the launch and listing on NYSE of the LGBTQ100 ESG Index. The exclusive media launch with Bloomberg Media was instrumental in propelling the LGBTQ100 brand to center stage overnight in the financial sector. In addition, LGBTQ Loyalty was featured at the Inside ETFs Summit in early 2020 with Board Members, Barney Frank and Billy Bean speaking on the “The Power of Inclusion & Equality” for investors. Our media strategy objective is to lay the groundwork for additional high-profile positioning of the brand as we work to achieve the desired increased financial media coverage and growth in AUM valuation for our company and shareholders.

Our Products

Our mission is to build a sustainable and well recognized brand focused on unlocking the growing purchasing power of the LGTBQ community globally by offering a robust LGBTQ Index and core ETF portfolio that attracts key institutional investors and corporations.

At the nucleus of our LGBTQ Loyalty Preference Index is our partner-driven Crowd Preference Index Methodology (CPIM) which we believe disrupts ESG investing. This is achieved through an elevated screening process of financial performance data and ESG standards and practices, whereby LGBTQ community data on diversity and inclusion compliance directly impacts corporate financial results and transparently identifies and recognizes high performance companies who have consistently outperformed the S&P 500 index or equivalent sector standards and norms.

We intend to extend the LGBTQ Loyalty Index brand with future plans to develop indices with a focus on the ‘Social’ component of ESG utilizing our proprietary financial slogan of “Advancing Equality” within other gender, minority interest groups.

Revenue

The Company focus over the past few years was to create and launch our first of many financial Index products through an equality driven thematic ESG screened and alpha performance benchmark. The Company achieved this through its LGBTQ100 ESG Index listing and performance on the NYSE starting on October 30, 2019. In 2022 our collective efforts and focus is to monetize and scale our model by capturing recurring revenue streams through our current financial Index product. Our goal is to accelerate our revenue pursuits through our partnership and licensed relationships to achieve a break-even point when we have secured AUM benchmarked against the LGBTQ100 Index in excess of $50,000,000.

We intend to introduce a new key partnered revenue source derived from Direct Index Licensing Fees generated by financial institutions and asset management companies for creating a product (e.g., Index Funds, Structured Financial Products, Turnkey Asset Management Providers) based on or linked to the LGBTQ100 index. This includes fees to use the LGBTQ100 index to track the performance of funds or as benchmarks for actively managed portfolios. We plan to capture Data Subscriptions which could provide recurring subscription revenue from our LGBTQ Index. This includes ongoing and historical data and information generated by our wholly owned division Advancing Equality Preference Inc., and through our strategic partnerships for new potential financial equality-driven Indices.

New initiatives in 2022 include a plan to create ancillary revenue streams to complement and support this unique platform for the top 100 Equality driven Corporations in America represented in the LGBTQ100 Index. We believe our index will reward and elevate the status of those corporations that have adopted diversity and inclusion best practices, cared for their employees and positively impacted LGBTQ communities. Expert LGBTQ economists have repeatedly stressed the value of the LGBTQ brand loyalty to corporations. We consider the companies that best capture the spending trends and loyalty of the LGBTQ consumer will be better positioned for financial growth and success. Given the opportunity to link to the power and status generated between the LGBTQ community, these companies and their own workforce, we will launch a Partner Loyalty Program which includes benefits afforded to defined sponsorship tiers.

16

We have achieved no revenues to date from our LGBTQ related operations and have been focused on building our product and achieving performance results and media branding over the course of the past twelve months. There are no assurances that can be given that we will achieve revenues or profitability in the future.

Business Strategy

Our business strategy is targeted to the estimated three trillion-dollar global purchasing power of the LGBTQ consumer demographic. More than nineteen million people identify themselves as LGBTQ in the US and four-hundred-fifty million globally while the LGBTQ community is composed of some of the most loyalty-driven consumers in the world.

We believe that the LGBTQ demographic is one of the most highly sought-after economic groups in the world from corporate America down to the local business owner because of their higher median income and brand loyalty. What makes targeting and supporting this dynamic demographic even more extraordinary and rewarding is that friends, family, employers, employees, teachers, coaches and fans of our community so loyally support the brands, products and services that in turn support us. We further believe that this loyalty across the board is time tested, proven, growing and expanding and ultimately extremely rewarding to all that are embraced by the LGBTQ community. Connecting the world’s most supportive LGBTQ companies to the dynamic, loyal and ever-increasing spending power of the LGBTQ community is a consequential step forward for the LGBTQ movement and investment community.

Many Fortune 500 companies are directing more of their consumer advertising and promotional spend towards celebrating diversity and equality. Our long-term goal is to reinforce the financial performance of those Corporations as they foster and integrate LGBTQ equality practices through their Diversity and Inclusion policies as a cornerstone of their corporate culture. Our LGBTQ100 Index of the top 100 corporate constituents have already embraced and enacted this standard of Equality excellence. See our top LGBTQ100 Index constituents on our website.

Critical Accounting Policies and Estimates

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with GAAP, which contemplates our continuation as a going concern. We have incurred losses to date of ~~$23,896,819~~$24,522,546 and have negative working capital of ~~$10,255,436~~$10,762,513 as of ~~June~~September 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

17

Use of Estimates

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

Derivative Financial Instruments:

The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with a fixed conversion price or floor would be settled first, and interest payable in shares settle next. Thereafter, share settlement order is based on instrument issuance date – earlier dated instruments settling before later dated. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. The policy includes all shares issuable pursuant to debenture and preferred stock instruments as well as shares issuable under service and employment contracts and interest on short term loans.

Results of Operations

Three months ended ~~June~~September 30, 2022 compared with the three months ended ~~June~~September 30, 2021

There were no revenues during the three months ended ~~June~~September 30, 2022 or 2021.

The following is a breakdown of our operating expenses for the three months ended ~~June~~September 30, 2022 and 2021:

Three Months Ended Three Months Ended
June 30, September 30,
2022 2021 Change $ Change % 2022 2021 Change $ Change %
Personnel costs $ 46,407 $ 93,121 $ (46,714 ) -50 % $ 27,852 $ 132,097 $ (104,245 ) -79 %
Consulting fees 11,250 38,500 (27,250 ) -71 % 11,250 2,220 9,030 407 %
Legal and professional fees 124,992 153,527 (28,535 ) -19 % 78,245 308,382 (230,137 ) -75 %
Fund expenses - - - 100 %
Sales and marketing 71,237 40,500 30,737 76 % 21,036 117,012 (95,976 ) -82 %
General and administrative 15,028 28,392
(13,364
) -47 % 12,921 30,727 (17,806 ) -58 %
Depreciation and amortization 6,448 6,448 - 0 % 6,448 6,448 - 0 %
$ 275,362 $ 360,488 $ (85,126 ) -24 % $ 157,752 $ 596,886 $ (439,134 ) -74 %
Personnel costs include officer salaries and directors’ compensation. The decrease in personnel costs is primarily due 2021 board compensation.
Consulting fees increased by $9,030 during the three months ended September 30, 2022. Consulting fees represent our efforts to launch the LGBTQ100 ESG Index and LGBTQ + ESG100 ETF.
Legal and professional fees decreased by $230,137 primarily due to less financing matters in 2022.
Sales and marketing costs decreased by $95,976 in the three months ended September 30, 2022 due to no limited efforts in the third quarter of 2022.
General and administrative expenses decreased by $17,806 in 2022 due to less operations overall.
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Depreciation and amortization expense was $6,448 in the three months ended September 30, 2022 and 2021, which represents amortization on our index development costs.
The following is a breakdown of our other income (expenses) for the three months ended September 30, 2022 and 2021:
Three Months Ended
September 30,
2022 2021 Change $ Change %
Interest expense $ (149,439 ) $ (437,528 ) 288,089 -66 %
Change in derivative liability (318,536 ) 1,422,551 (1,741,087 ) -122 %
$ (467,975 ) $ 985,023 $ (1,452,998 ) -148 %
Interest expense is primarily attributable to origination interest and amortization of debt discount. Interest expense includes the default penalties to record additional amounts owed on the convertible debentures and Series D preferred stock.
Change in derivative liability includes the mark-to-market adjustment of the derivative liability in connection with our convertible debenture.
Net (loss) income was ($625,727) and $381,062 for the three months ended September 30, 2022 and 2021, respectively.
Nine months ended September 30, 2022 compared with the nine months ended September 30, 2021
There were no revenues during the nine months ended September 30, 2022 or 2021.
The following is a breakdown of our operating expenses for the nine months ended September 30, 2022 and 2021:
Nine Months Ended
September 30,
2022 2021 Change $ Change %
Personnel costs $ 175,331 $ 1,521,218 $ (1,345,887 ) -88 %
Consulting fees 37,750 73,720 (35,970 ) -49 %
Legal and professional fees 360,030 567,032 (207,002 ) -37 %
Sales and marketing 119,975 157,512 (37,537 ) 100 %
General and administrative 64,266 87,241 (22,975 ) -26 %
Depreciation and amortization 19,344 19,344 - 0 %
$ 889,618 $ 2,426,067 $ (1,536,449 ) -63 %
Personnel costs include officer salaries and directors’ compensation. The decrease in personnel costs is primarily due 2021 board compensation.

Consulting fees decreased by ~~$27,250~~$35,970 during the ~~three~~nine months ended ~~June~~September 30, 2022, primarily due to limited operations in developing the Index. Consulting fees represent our efforts to launch the LGBTQ100 ESG Index and LGBTQ + ESG100 ETF.

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Legal and professional fees decreased by ~~$28,535 primarily~~$207,002 due to less ~~financing matters~~financings in 2022.
Fund expenses represented the $100,000 incurred to Procure.

Sales and marketing costs ~~increased~~decreased by ~~$30,737~~$37,537 in the ~~three~~nine months ended ~~June~~September 30, 2022 ~~based on some new branding~~due to less sales efforts intowards the third quarter of 2022.

General and administrative expenses decreased by ~~$13,364~~$22,975 in 2022 due to less operations overall.

18
Depreciation and amortization expense was ~~$6,448~~$19,344 in the ~~three~~nine months ended ~~June~~September 30, 2022 and 2021, which represents amortization on our index development costs.

The following is a breakdown of our other income (expenses) for the ~~three~~nine months ended ~~June~~September 30, 2022 and 2021:

Three Months Ended
June 30,
2022 2021 Change $ Change %
Interest expense $ (1,419,622 ) $ (727,642 ) (691,980 ) 95 %
Change in derivative liability (794,036 ) (2,658,949 ) 1,864,913 -70 %
$ (2,213,658 ) $ (3,386,591 ) $ 1,172,933 -35 %
Nine Months Ended
September 30,
2022 2021 Change $ Change %
Interest expense $ (1,525,750 ) $ (1,726,856 ) 201,106 -12 %
Change in derivative liability (1,153,224 ) (823,425 ) (329,799 ) 40 %
$ (2,678,974 ) $ (2,550,281 ) $ (128,693 ) 5 %

Interest expense is primarily attributable to origination interest and amortization of debt discount. Interest expense includes the default penalties to record additional amounts owed on the convertible debentures and Series D preferred stock.

Change in derivative liability includes the mark-to-market adjustment of the derivative liability in connection with our convertible debenture.

Net loss was ~~$2,489,020~~$4,036,567 and ~~$3,747,079~~$4,983,424 for the ~~three~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

~~Six months ended June 30, 2022 compared with the six months ended June 30, 2021~~
~~There were no revenues during the six months ended June 30, 2022 or 2021.~~
~~The following is a breakdown of our operating expenses for the six months ended June 30, 2022 and 2021:~~
Six Months Ended
June 30,
2022 2021 Change $ Change %
Personnel costs $ 160,401 $ 1,389,121 $ (1,228,720 ) -88 %
Consulting fees 26,500 71,500 (45,000 ) -63 %
Legal and professional fees 281,785 258,650 23,135 9 %
Fund expenses 100,000 - 100,000 100 %
Sales and marketing 98,939 40,500 58,439 144 %
General and administrative 51,345 56,514 (5,169 ) -9 %
Depreciation and amortization 12,896 12,896 - 0 %
$ 719,974 $ 1,829,181 $ (1,097,315 ) -60 %
~~Personnel costs include officer salaries and directors’ compensation. The decrease in personnel costs is primarily due 2021 board compensation.~~
Consulting fees decreased by $45,000 during the six months ended June 30, 2022, primarily due to limited operations in developing the Index. Consulting fees represent our efforts to launch the LGBTQ100 ESG Index and LGBTQ + ESG100 ETF.
~~Legal and professional fees increased by $23,135 due to less financings in 2022.~~
~~Fund expenses represented the $100,000 incurred to Procure.~~
~~Sales and marketing costs increased by $58,439 in the six months ended June 30, 2022 based on some new branding efforts in 2022.~~
~~General and administrative expenses decreased by $5,169 in 2022 due to less operations overall.~~
~~Depreciation and amortization expense was $12,896 in the six months ended June 30, 2022 and 2021, which represents amortization on our index development costs.~~
~~The following is a breakdown of our other income (expenses) for the six months ended June 30, 2022 and 2021:~~
Six Months Ended
June 30,
2022 2021 Change $ Change %
Interest expense $ (1,525,750 ) $ (1,289,328 ) (236,422 ) 18 %
Change in derivative liability (1,153,224 ) (2,245,976 ) 1,092,752 -49 %
$ (2,678,974 ) $ (3,535,304 ) $ 856,330 -24 %
Interest expense is primarily attributable to origination interest and amortization of debt discount. Interest expense includes the default penalties to record additional amounts owed on the convertible debentures and Series D preferred stock.
~~Change in derivative liability includes the mark-to-market adjustment of the derivative liability in connection with our convertible debenture.~~
~~Net loss was $3,410,840 and $5,364,485 for the six months ended June 30, 2022 and 2021, respectively.~~
Liquidity and Capital Resources

Historically, we have been financed through advances from related parties, issuances of convertible debt, and the sale of our common and preferred stock. Our existing sources of liquidity will not be sufficient for us to implement our business plans. There are no assurances that we will be able to raise additional capital as and when needed. As of ~~June~~September 30, 2022, we had ~~$12,934~~$9,387 of cash on hand. Based on our current planned expenditures, we will require approximately $2.5 million over the next 12 months. Our existing sources of liquidity may not be sufficient for us to implement our continuing business plan. Our need for future capital will be dependent upon the speed at which we expand our product offerings. There are no assurances that we will be able raise additional capital as and when needed.

As of ~~June~~September 30, 2022, we had a working capital deficit of ~~$10,255,436~~$10,762,513 as compared to a working capital deficit of $7,001,879 at December 31, 2021.

During the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, operations used cash of ~~$235,414~~$268,961 and ~~$519,220,~~$1,086,128, respectively, primarily related to our net loss partially offset by non-cash charges and cash provided by changes in operating assets and liabilities.

In 2022, we received ~~$70,000~~$100,000 in proceeds from a related party note. Advanced Equity also entered into a loan for $100,000.

In 2021, we received $300,000 in proceeds from the issuance of convertible debentures and repaid notes payable of $1,000. We also received ~~$574,100~~$1,061,600 from the issuance of Series D preferred ~~stock.~~stock and $78,620 from an equity lineof credit.

We will continue to seek out additional capital in the form of debt or equity under the most favorable terms we can find.

The Company is currently, and has for some time, been in financial distress. It has no cash resources or current assets, and has no ongoing source of revenue. Management is continuing to address numerous aspects of the Company’s operations and obligations, including, without limitation, debt obligations, financing requirements, and regulatory compliance, and has taken steps to continue to raise new debt and equity capital to fund the Company’s business activities.

The Company is continuing its efforts to raise additional capital in order to be able to pay its liabilities and fund its business activities on a going forward basis and regularly evaluates various measures to satisfy the Company’s liquidity needs. Though the Company actively pursues opportunities to finance its operations through external sources of debt and equity financing, there can be no assurance that such financing will be available on terms acceptable to the Company, or at all.

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Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information required under this item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective due to a lack of audit committee and segregation of duties caused by limited personnel to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Limitations on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), does not expect that our disclosure controls and procedures will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, 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. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon 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. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Management believes that the material weakness set forth above did not have an effect on our financial results.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting during the three and ~~six~~nine months ended ~~June~~September 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

2021

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There are no pending, nor to our knowledge threatened, legal proceedings against us.

ITEM 1A. RISK FACTORS

As of the date of this filing, there have been no material changes to the Risk Factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on April 15, 2022, which may be accessed via EDGAR through the Internet at www.sec.gov (the “2021 Form 10-K”). The Risk Factors set forth in the 2021 Form 10-K should be read carefully in connection with evaluating the Company’s business and in connection with the forward-looking statements contained in this Quarterly Report on Form 10-Q. Any of the risks described in the 2021 Form 10-K could materially adversely affect the Company’s business, financial condition or future results and the actual outcome of matters as to which forward-looking statements are made. These are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

Refer to the footnotes of the accompanying consolidated financial statements for convertible debentures entered into and issuances of common and preferred stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

We are in default under a $20,000 Promissory Note dated May 20, 2017 that became due on August 31, 2017. We have entered into a payment plan with the payee thereunder wherein we are making monthly cash payments to reduce the outstanding balance due. At ~~June~~September 30, 2022 the outstanding balance was approximately $1,986.

All other of the Company’s outstanding convertible debentures and notes payables are currently in default.

ITEM 4. MINE SAFETY DISCLOSURE

Not Applicable.

ITEM 5. OTHER INFORMATION

On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.

On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.

ITEM 6. EXHIBITS

Exhibit
Number
Description of Exhibit
31.1* Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2* Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1* Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2* Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS** Inline XBRL Instance Document
101.SCH** Inline XBRL Taxonomy Extension Schema Document
101.CAL** Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB** Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE** Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF** Inline XBRL Taxonomy Extension Definition Linkbase Document
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith
** This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

2122

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LGBTQ LOYALTY HOLDINGS, INC.

~~November 14,~~December 9, 2022 By: /s/ Robert A. Blair
Robert A. Blair, Chief Executive Officer

~~November 14,~~December 9, 2022 By: /s/ Eric Sherb
Eric Sherb, Chief Financial Officer
2223

	2022			2021
	Nine Months Ended
	September 30,
	2022			2021
Cash flows from operating activities:
Net loss	$	(4,036,567	)	$	(4,983,424	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and original issue discount		158,690			1,077,708
Change in fair value of derivative liability		1,471,760			823,425
Financing related costs - debt		1,220,986			460,780
Stock-based compensation expense		-			1,218,114
Depreciation and amortization		19,344			19,344
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(1,345	)		(12,058	)
Accounts payable		551,600			(54,428	)
Accrued salaries and consulting fees		82,990			223,279
Accrued interest and dividends		263,581			141,132
Net cash used in operating activities		(268,961	)		(1,086,128	)
Cash flows from investing activities:
Purchases of property and equipment		-			-
Other receivables		-			(205,000	)
Net cash used in investing activities		-			(205,000	)
Cash flows from financing activities:
Net proceeds (repayments) from promissory note agreements		200,000			(1,000	)
Proceeds from issuance of convertible debenture agreements		-			300,000
Repayments of convertible debt agreements		-			(56,350	)
Proceeds from issuance of common stock under equity line of credit		-			78,620
Proceeds from issuance of Series D preferred stock		-			1,061,600
Net cash provided by financing activities		200,000			1,382,870
Net change in cash		(68,961	)		91,741
Cash at beginning of period		78,348			30,312
Cash at end of period	$	9,387		$	122,053

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	-		$	4,944

Supplemental disclosure of non-cash financing activities:
Exercise of common stock warrants	$	140,966		$	-
Dividends on preferred stock	$	44,870		$	30,866
Conversion of Series D preferred stock for common stock	$	111,000		$	-
Deemed dividend on conversion of preferred stock	$	523,266		$	-
Debenture conversions	$	238,764		$	-
Reclassification of Series D preferred stock	$	1,015,999		$	-
Conversion of accrued consulting fees into common shares	$	-		$	338,608
Conversion of related party notes payable into common shares	$	-		$	16,085
Conversion of Series C preferred stock into common stock	$	-		$	78,000

	2022			2021
	Six Months Ended
	June 30,
	2022			2021
Cash flows from operating activities:
Net loss	$	(3,410,840	)	$	(5,364,485	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and original issue discount		109,690			704,007
Change in fair value of derivative liability		1,153,224			2,245,976
Financing related costs - debt		1,220,986			460,780
Stock-based compensation expense		-			1,218,114
Depreciation and amortization		12,896			12,896
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(1,345	)		14,058
Accounts payable		422,984			(105,699	)
Accrued salaries and consulting fees		62,550			201,470
Accrued interest and dividends		194,441			93,663
Net cash used in operating activities		(235,414	)		(519,220	)
Cash flows from investing activities:
Other receivables		-			(205,000	)
Net cash used in investing activities		-			(205,000	)
Cash flows from financing activities:
Net proceeds (repayments) from promissory note agreements		170,000			(1,000	)
Proceeds from issuance of convertible debenture agreements		-			300,000
Proceeds from issuance of Series D preferred stock		-			574,100
Net cash provided by financing activities		170,000			873,100
Net change in cash		(65,414	)		148,880
Cash at beginning of period		78,348			30,312
Cash at end of period	$	12,934		$	179,192

Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	-		$	-
Cash paid for interest	$	-		$	-

Supplemental disclosure of non-cash financing activities:
Exercise of common stock warrants	$	140,966		$	61,775
Dividends on preferred stock	$	44,870		$	11,241
Conversion of Series D preferred stock for common stock	$	74,000		$	-
Deemed dividend on conversion of preferred stock	$	523,266		$	-
Debenture conversions	$	126,562		$	-
Reclassification of Series D preferred stock	$	1,015,999		$	-
Derivative liability – inception	$	306,646		$	-
Conversion of accrued consulting fees into common shares	$	-		$	338,608
Conversion of related party notes payable into common shares	$	-		$	16,085
Conversion of Series C preferred stock into common stock	$	-		$	53,000

	Shares		Amount		Shares			Amount			Shares			Amount			Shares			Amount		Shares		Amount		Capital			Deficit			Deficit
	Preferred Stock																									Additional						Total
	Series A				Series B						Series C						Series D					Common Stock				Paid-in			Accumulated			Stockholders’
	Shares		Amount		Shares			Amount			Shares			Amount			Shares			Amount		Shares		Amount		Capital			Deficit			Deficit

Balances at December 31, 2020		-	$	-		50,000		$	50			129,559		$	130			-			-		263,725,234	$	263,725	$	7,714,704		$	(13,239,189	)	$	(5,260,580	)
Common shares issued to board of directors		-		-		-			-			-			-			-			-		140,000,000		140,000		980,000			-			1,120,000
Common shares issued for services and compensation		-		-		-			-			-			-			-			-		31,834,386		31,834		204,614			-			236,448
Debenture conversions		-		-		-			-			-			-			-			-		37,538,998		37,539		318,815			-			356,354
Dividends on preferred stock		-		-		-			-			-			-			-			-		-		-		-			(1,722	)		(1,722	)
Net loss		-		-		-			-			-			-			-			-		-		-		-			(1,617,405	)		(1,617,405	)
Balances at March 31, 2021		-		-		50,000			50			129,559			130			-			-		473,098,618		473,098		9,218,133			(14,858,316	)		(5,166,906	)
Debenture conversions		-		-		-			-			-			-			-			-		100,448,779		100,449		1,821,061			-			1,921,510
Conversion of notes and payables		-		-		-			-			-			-			-			-		11,956,004		11,956		192,408			-			204,364
Exercise of warrants		-		-		-			-			-			-			-			-		30,887,276		30,887		(30,887	)		-			-
Conversion of Series C preferred stock into common stock		-		-		-			-			(53,000	)		(53	)		-			-		53,000,000		53,000		(52,947	)		-			-
Dividends on preferred stock		-		-		-			-			-			-			-			-		-		-		-			(9,519	)		(9,519	)
Net loss		-		-		-			-			-			-			-			-		-		-		-			(3,747,079	)		(3,747,079	)
Balances at June 30, 2021		-	$	-		50,000		$	50			76,559		$	77			-		$	-		669,390,677	$	669,390	$	11,147,767		$	(18,614,915	)	$	(6,797,631	)
Debenture conversions		-		-		-			-			-			-			-			-		20,479,798		20,480		304,123			-			324,603
Exercise of warrants		-		-		-			-			-			-			-			-		30,887,275		30,887		(30,887	)		-			-
Conversion of Series C preferred stock into common stock		-		-		-			-			(25,000	)		(25	)		-			-		25,000,000		25,000		(24,975	)		-			-
Common shares issued pursuant to equity line of credit		-		-		-			-			-			-			-			-		13,386,862		13,387		72,309			-			85,696
Common shares issued for services		-		-		-			-			-			-			-			-		13,440,860		13,441		111,559			-			125,000
Conversion of Series B preferred stock for common shares		-		-		(25,000	)		(25	)		-			-			-			-		958,333		958		(933	)		-			-
Issuance of Series B dividend common shares		-		-		-			-			-			-			-			-		461,395		461		6,439			-			6,900
Dividends on preferred stock		-		-		-			-			-			-			-			-		-		-		-			(19,625	)		(19,625	)
Net loss		-		-		-			-			-			-			-			-		-		-		-			381060			381,060
Balances at September 30, 2021		-	$	-		25,000		$	25			51,559		$	52			-		$	-		774,005,200	$	774,004	$	11,585,402		$	(18,253,480	)	$	(5,893,997	)

Balances at December 31, 2021		-	$	-		-		$	-			51,559		$	52			1,050		$	1		832,719,287	$	832,719	$	13,215,129		$	(19,917,844	)	$	(5,869,943	)
Exercise of warrants		-		-		-			-			-			-			-			-		43,349,000		43,349		(43,349	)		-			-
Conversion of Series D preferred stock for common stock		-		-		-			-			-			-			(45	)		-		36,000,000		36,000		(36,000	)		-			-
Deemed dividend on conversion of preferred stock		-		-		-			-			-			-			-			-		-		-		237,924			(237,924	)		-
Dividends on preferred stock		-		-		-			-			-			-			-			-		-		-		-			(22,720	)		(22,720	)
Net loss		-		-		-			-			-			-			-			-		-		-		-			(921,819	)		(921,819	)
Balances at March 31, 2022		-		-		-			-			51,559			52			1,005			1		912,068,287		912,068		13,373,704			(21,100,307	)		(6,814,482	)
Debenture conversions		-		-		-			-			-			-			-			-		84,325,397		84,325		42,236			-			126,561
Exercise of warrants		-		-		-			-			-			-			-			-		97,617,300		97,617		(97,617	)		-			-
Conversion of Series D preferred stock for common stock		-		-		-			-			-			-			(19	)		-		38,000,000		38,000		(38,000	)		-			-
Deemed dividend on conversion of preferred stock		-		-		-			-			-			-			-			-		-		-		285,342			(285,342	)		-
Reclassification of Series D preferred stock		-		-		-			-			-			-			-			-		-		-		(1,015,999	)		-			(1,015,999	)
Dividends on preferred stock		-		-		-			-			-			-			-			-		-		-		-			(22,150	)		(22,150	)
Net loss		-		-		-			-			-			-			-			-		-		-		-			(2,489,020	)		(2,489,020	)
Balances at June 30, 2022		-	$	-		-		$	-			51,559		$	52			986		$	1		1,132,010,984	$	1,132,011	$	12,549,666		$	(23,896,819	)	$	(10,215,094	)
Balance		-	$	-		-		$	-			51,559		$	52			986		$	1		1,132,010,984	$	1,132,011	$	12,549,666		$	(23,896,819	)	$	(10,215,094	)
Debenture conversions		-		-		-			-			-			-			-			-		112,202,381		112,202		-			-			112,202
Net loss		-		-		-			-			-			-			-			-		-		-		-			(625,727	)		(625,727	)
Balances at September 30, 2022		-	$	-		-		$	-			51,559		$	52			986		$	1		1,244,213,365	$	1,244,213	$	12,549,666		$	(24,522,546	)	$	(10,728,614	)
Balance		-	$	-		-		$	-			51,559		$	52			986		$	1		1,244,213,365	$	1,244,213	$	12,549,666		$	(24,522,546	)	$	(10,728,614	)

										Original			Adjustment			As Restated
	June 30, 2022									June 30, 2022
	Original			Adjustment			As Restated			Original			Adjustment			As Restated
Cash	$	11,269		$	1,665		$	12,934		$	11,269		$	1,665		$	12,934
Total assets	$	59,886		$	1,665		$	61,551		$	59,886		$	1,665		$	61,551

Accounts payable	$	1,386,797		$	21,979		$	1,408,776		$	1,386,797		$	21,979		$	1,408,776
Accrued salaries and consulting fees		743,321			(20,314	)		723,007			743,321			(20,314	)		723,007
Derivative liability on convertible notes payable		2,769,066			12,369			2,781,435			2,769,066			12,369			2,781,435
Total liabilities		10,262,606			14,034			10,276,640			10,262,606			14,034			10,276,640
Common stock		1,132,007			3			1,132,010			1,132,007			3			1,132,010
Additional paid-in capital		12,549,666			1			12,549,667			12,549,666			1			12,549,667
Accumulated deficit		(23,884,446	)		(12,373	)		(23,896,819	)		(23,884,446	)		(12,373	)		(23,896,819	)
Total stockholders’ equity (deficit)		(10,202,720	)		(12,369	)		(10,215,089	)		(10,202,720	)		(12,369	)		(10,215,089	)
Total liabilities and stockholders’ equity (deficit)	$	59,886		$	1,665		$	61,551		$	59,886		$	1,665		$	61,551


	Six Months Ended June 30, 2022
	Original			Adjustment		As Restated
Net cash used in operating activities	$	(237,079	)	$	1,665	$	(235,414	)


	Three Months Ended June 30, 2022
	Original		Adjustment		As Restated
Debenture conversions	$	114,040	$	12,522	$	126,562

	Fair Value Measurements								Fair Value Measurements
	as of June 30, 2022:								as of September 30, 2022:
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Liabilities:
Derivative liability on convertible notes payable and preferred stock	$	-	$	-	$	2,781,435	$	2,781,435	$	-	$	-	$	3,036,614	$	3,036,614
	$	-	$	-	$	2,781,435	$	2,781,435	$	-	$	-	$	3,036,614	$	3,036,614

	Fair Value Measurements
	as of December 31, 2021:
	Level 1		Level 2		Level 3		Total
Liabilities:
Derivative liability on convertible notes payable	$	-	$	-	$	1,398,127	$	1,398,127
	$	-	$	-	$	1,398,127	$	1,398,127

	Convertible
	Debenture
Balance as of December 31, 2021	$	2,195,145
Convertible debenture - debt discount		(213,932	)
Additional principal per default provisions		374,125
Amortization of debt discount and original issue discount		109,690
Conversion to common stock, net of discount		(50,000	)
Balance as of June 30, 2022	$	2,415,028

	Three Months Ended										Three Months Ended
	June 30,										September 30,
	2022		2021		Change $			Change %			2022		2021		Change $			Change %
Personnel costs	$	46,407	$	93,121	$	(46,714	)		-50	%	$	27,852	$	132,097	$	(104,245	)		-79	%
Consulting fees		11,250		38,500		(27,250	)		-71	%		11,250		2,220		9,030			407	%
Legal and professional fees		124,992		153,527		(28,535	)		-19	%		78,245		308,382		(230,137	)		-75	%
Fund expenses		-		-		-			100	%
Sales and marketing		71,237		40,500		30,737			76	%		21,036		117,012		(95,976	)		-82	%
General and administrative		15,028		28,392		(13,364	)		-47	%		12,921		30,727		(17,806	)		-58	%
Depreciation and amortization		6,448		6,448		-			0	%		6,448		6,448		-			0	%
	$	275,362	$	360,488	$	(85,126	)		-24	%	$	157,752	$	596,886	$	(439,134	)		-74	%

Exhibit Number		Description of Exhibit
31.1*		Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**		Inline XBRL Instance Document
101.SCH**		Inline XBRL Taxonomy Extension Schema Document
101.CAL**		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE**		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF**		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

*	Filed herewith
**	This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

	LGBTQ LOYALTY HOLDINGS, INC.

~~November 14,~~December 9, 2022	By:	/s/ Robert A. Blair
		Robert A. Blair, Chief Executive Officer

~~November 14,~~December 9, 2022	By:	/s/ Eric Sherb
		Eric Sherb, Chief Financial Officer