Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Jun. 21, 2021 | |
Document And Entity Information | ||
Entity Registrant Name | PCT LTD | |
Entity Central Index Key | 0001119897 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Entity Incorporation, State or Country Code | NV | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-31549 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Interactive Data Current | Yes | |
Is Entity Emerging Growth Company? | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 765,501,229 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 53,853 | $ 115,196 |
Accounts receivable, net | 198,443 | 349,526 |
Inventory | 7,029 | 6,188 |
Prepaid expenses | 192,333 | 274,736 |
Other current assets | 2,110 | |
Total current assets | 451,658 | 747,756 |
PROPERTY AND EQUIPMENT | ||
Property and equipment, net | 346,716 | 358,719 |
OTHER ASSETS | ||
Intangible assets, net | 3,323,902 | 3,400,024 |
Operating lease, right of use asset | 110,236 | 118,385 |
Deposits | 15,226 | 9,726 |
Total other assets | 3,449,364 | 3,528,135 |
TOTAL ASSETS | 4,247,738 | 4,634,610 |
CURRENT LIABILITIES | ||
Accounts payable | 231,439 | 272,978 |
Accrued expenses - related parties | 80,951 | 139,280 |
Accrued expenses | 611,155 | 622,040 |
Deferred revenue | 1,075 | 1,075 |
Operating lease liability | 36,607 | 34,965 |
Notes payable – related parties, net | 183,034 | 789,214 |
Notes payable, net | 413,130 | 384,380 |
Convertible notes payable, net | 1,935,017 | 1,554,503 |
Derivative liability | 11,763,555 | 11,429,043 |
Total current liabilities | 15,255,963 | 15,227,478 |
Convertible notes payable, net of current portion and discounts | 53,500 | |
Operating lease liability, net of current portion | 77,499 | 83,420 |
TOTAL LIABILITIES | 15,333,462 | 15,364,398 |
MEZZANINE EQUITY | ||
Preferred series A stock, $0.001 par value; 1,000,000 authorized; 500,000 and 500,000 issued and outstanding at March 31, 2021 and December 31, 2020, respectively; Preferred series B stock, $0.001 par value; 1,000,000 authorized; 1,000,000 and 1,000,000 issued and outstanding at March 31, 2021 and December 31, 2020, respectively; Preferred series C stock, $0.001 par value; 5,500,000 authorized; nil and 490,000 issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 218,645 | 258,645 |
STOCKHOLDERS' DEFICIT | ||
Common stock, $0.001 par value; 1,000,000,000 authorized; 758,454,354 and 722,487,846 issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 758,454 | 722,488 |
Additional paid-in capital | 23,962,053 | 23,202,933 |
Accumulated deficit | (36,024,876) | (34,913,854) |
TOTAL STOCKHOLDERS' DEFICIT | (11,304,369) | (10,988,433) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 4,247,738 | $ 4,634,610 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 |
Preferred stock, shares issued | 1,500,000 | 1,990,000 |
Preferred stock, shares outstanding | 1,500,000 | 1,990,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 758,454,354 | 722,487,846 |
Common stock, shares outstanding | 758,454,354 | 722,487,846 |
Preferred stock series A | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred stock, shares outstanding | 500,000 | 500,000 |
Preferred stock series B | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Preferred stock series C | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,500,000 | 5,500,000 |
Preferred stock, shares issued | 490,000 | |
Preferred stock, shares outstanding | 490,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | ||
Product | $ 89,263 | $ 162,648 |
Licensing | 31,750 | 7,000 |
Equipment leases | 274,506 | 102,534 |
Total Revenues | 395,519 | 272,182 |
OPERATING EXPENSES | ||
General and administrative | 893,451 | 548,786 |
Research and development | 9,199 | |
Costs of product, licensing and equipment leases | 52,901 | 148,850 |
Depreciation and amortization | 88,122 | 83,021 |
Total operating expenses | 1,043,673 | 780,657 |
Loss from operations | (648,154) | (508,475) |
OTHER INCOME (EXPENSE) | ||
Gain/(Loss) on change in fair value of derivative liability | (650,913) | (9,294,762) |
Gain/(Loss) on settlement of debt | 316,401 | (44,000) |
Interest expense | (178,356) | (434,411) |
Misc. income | 50,000 | |
Total other income (expense) | (462,868) | (9,773,173) |
Loss before income taxes | (1,111,022) | (10,281,648) |
Income taxes | ||
NET LOSS | (1,111,022) | (10,281,648) |
Preferred series C stock deemed dividends | (270,000) | |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS’ | $ (1,111,022) | $ (10,551,648) |
Basic and diluted net loss per share | $ 0 | $ (0.02) |
Basic and diluted weighted average shares outstanding | 751,832,583 | 545,843,212 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2019 | 498,880,300 | |||
Beginning balance, amount at Dec. 31, 2019 | $ 498,881 | $ 15,872,330 | $ (26,505,567) | $ (10,134,356) |
Common stock issued for services, shares | 15,525,000 | |||
Common stock issued for services, amount | $ 15,525 | 103,538 | 119,063 | |
Common stock issued in settlement of debt, shares | 250,000 | |||
Common stock issued in settlement of debt, amount | $ 250 | 7,975 | 8,225 | |
Common stock issued in conversion of convertible notes payable, shares | 36,050,000 | |||
Common stock issued in conversion of convertible notes payable, amount | $ 36,050 | 360,660 | 396,710 | |
Beneficial conversion feature on preferred series C stock | 270,000 | (270,000) | ||
Net loss | (10,281,648) | (10,281,648) | ||
Ending balance, shares at Mar. 31, 2020 | 550,705,300 | |||
Ending balance, amount at Mar. 31, 2020 | $ 550,706 | 16,614,503 | (37,057,215) | (19,892,006) |
Beginning balance, shares at Dec. 31, 2020 | 722,487,846 | |||
Beginning balance, amount at Dec. 31, 2020 | $ 722,488 | 23,202,933 | (34,913,854) | (10,988,433) |
Common stock issued for services, shares | 2,500,000 | |||
Common stock issued for services, amount | $ 2,500 | 74,276 | 76,776 | |
Common stock issued in settlement of debt, related parties, shares | 4,466,508 | |||
Common stock issued in settlement of debt, related parties, amount | $ 4,466 | 648,844 | 653,310 | |
Common stock issued in conversion of convertible notes payable, shares | 25,000,000 | |||
Common stock issued in conversion of convertible notes payable, amount | $ 25,000 | 25,000 | ||
Conversion of preferred series C stock, shares | 4,000,000 | |||
Conversion of preferred series C stock, amount | $ 4,000 | 36,000 | 40,000 | |
Net loss | (1,111,022) | (1,111,022) | ||
Ending balance, shares at Mar. 31, 2021 | 758,454,354 | |||
Ending balance, amount at Mar. 31, 2021 | $ 758,454 | $ 23,962,053 | $ (36,024,876) | $ (11,304,369) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net loss | $ (1,111,022) | $ (10,281,648) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 88,122 | 83,021 |
Amortization of debt discount | 78,804 | 73,588 |
Common stock issued for services | 14,027 | 119,063 |
Loss on change in fair value of derivative liability | 650,913 | 9,294,762 |
Amortization of right of use asset | 8,149 | |
Amortization of prepaid expense | 146,465 | |
Loss on settlement of debt | (316,401) | 44,000 |
Default penalties on convertible notes | 15,172 | 13,762 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 151,083 | (15,745) |
Inventory | (841) | 26,669 |
Prepaid expenses | 33,024 | |
Deposits | (5,500) | (12,027) |
Operating lease liability | (4,279) | |
Accrued expenses | (10,885) | 377,306 |
Accrued expenses - related party | 13,900 | 5,430 |
Accounts payable | (41,539) | 44,573 |
Net cash used in operating activities | (323,932) | (194,222) |
Cash Flows from Investing Activities | ||
Net cash (used in) provided by investing activities | ||
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 207,575 | 155,525 |
Proceeds from notes payable - related parties | 3,500 | |
Proceeds from convertible notes payable | 555,000 | 76,000 |
Proceeds from preferred series C stock subscriptions | 270,000 | |
Repayment of convertible notes payable | (218,500) | (8,888) |
Repayment of notes payable | (256,486) | (102,414) |
Repayment of notes payable - related parties | (25,000) | (12,286) |
Net cash provided by financing activities | 262,589 | 381,437 |
Net change in cash | (61,343) | 187,215 |
Cash and cash equivalents at beginning of period | 115,196 | 67,613 |
Cash and cash equivalents at end of period | 53,853 | 254,828 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 43,339 | 147 |
Cash paid for Income taxes | ||
Non-cash investing and financing activities: | ||
Preferred series C stock deemed dividend | 270,000 | |
Original debt discount against convertible notes | 41,888 | |
Original debt discount against notes payable | 25,068 | |
Common stock issued in conversion of convertible notes payable | 25,000 | 396,710 |
Common stock issued in settlement of debt | 8,225 | |
Property and equipment transferred to inventory | 26,669 | |
Common stock issued for prepaid expenses | 62,750 | |
Preferred series C converted to common stock | 40,000 | |
Common stock issued in settlement of notes payable to related parties | 653,309 | |
Common stock issued in conversion of preferred series C stock | $ 77,998 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited interim condensed consolidated financial statements of PCT LTD (the “Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of our balance sheet, statements of operations, stockholders’ equity (deficit), and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative of the results to be expected for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2020 audited financial statements as reported in its Form 10-K, filed on April 13, 2021. COVID-19 In December 2019 COVID-19 emerged in Wuhan, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to almost all other countries, including the United States, and infections have been reported globally. Because COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. Additional, more restrictive proclamations and/or directives may be issued in the future. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak. Any resulting financial impact cannot be reasonably estimated at this time but may have a material impact on our business, financial condition and results of operations. The significance of the impact of the COVID-19 outbreak on the Company’s businesses and the duration for which it may have an impact cannot be determined at this time. At a minimum, the COVID-19 pandemic caused the Company to restrict travel of its personnel and to initiate distributor installations of certain of the Company’s equipment, as possible. The Company adapted to the immediate need for its US EPA registered disinfectant at the end of March and beginning of April, 2020, but installing greater storage reserves and by assembling more of it higher-volume equipment to produce the hospital grade disinfectant known as Hydrolyte®. There were hard costs associates with these adaptations to the Little River, SC facility, but the Company continues to benefit from its fluid production capacities over the longer term. As the Federal, state and other restrictions associated with the pandemic have lessened, the Company is able to act more effectively in obtaining new contracts for its healthcare equipment, the Annihilyzer®. Nature of Operations PCT LTD (formerly Bingham Canyon Corporation, (the “Company,” “PCT Ltd,” or “Bingham”), a Delaware corporation, was formed on February 27, 1986. The Company changed its domicile to Nevada on August 26, 1998. The Company acquires, develops and provides sustainable, environmentally safe disinfecting, cleaning and tracking technologies. The Company specializes in providing cleaning, sanitizing, and disinfectant fluid solutions and fluid-generating equipment that creates environmentally safe solutions for global sustainability. Paradigm is located in Little River, SC and was formed June 6, 2012 under the name of EUR-ECA, Ltd. On September 11, 2015, its Board of Directors authorized EUR-ECA Ltd to file with the Nevada Secretary of State to change its name to Paradigm Convergence Technologies Corp. Paradigm is a technology licensing company specializing in environmentally safe solutions for global sustainability. The company holds a patent, intellectual property and/or distribution rights to innovative products and technologies. Paradigm provides innovative products and technologies for eliminating biocidal contamination from water supplies, industrial fluids, hard surfaces, food processing equipment, and medical devices. Paradigm’s overall strategy is to market new products and technologies through the use of equipment leasing, joint ventures, licensing, distributor agreements and partnerships. Effective on February 29, 2018, the Company changed its name from Bingham Canyon Corporation to PCT LTD to more accurately identify the Company’s direction and to develop the complimentary relationship and association with its wholly-owned operating company, Paradigm Convergence Technologies Corporation (“Paradigm” or “PCT Corp.”). Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Company's most recent Form 10-K. Basic and Diluted Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. As March 31, 2021, there were outstanding common share equivalents (options, warrants, convertible debt, and preferred series A stock which amounted to 556,953,901 shares of common stock. These common share equivalents were not included in the computation of diluted loss per share as their effect would have been anti-dilutive. Recent Accounting Pronouncements ASU 2019-12 amends the requirements related to the accounting for “hybrid” tax regimes. Such regimes are tax jurisdictions that impose the greater of two taxes — one based on income, or one based on items other than income. Although ASC 740 does not apply to taxes based on items other than income, ASC 740-10-15-4(a) originally specified that if there is a tax based on income that is greater than a franchise tax based on capital, only that excess is subject to the guidance in ASC 740. In feedback to the FASB, stakeholders indicated that the guidance on hybrid tax regimes increased the cost and complexity of applying ASC 740, particularly when the tax amount deemed to be a non-income tax was insignificant. Further, such guidance made it more difficult for entities to determine the appropriate tax rate to use when recording deferred taxes. Accordingly, the FASB amended ASC 740-10-15-4(a) to state that an entity should include the amount of tax based on income in the tax provision and should record any incremental amount recorded as a tax not based on income. This amendment effectively reverses the order in which an entity determines the type of tax under current U.S. GAAP. In addition, the ASU amends the illustrative examples referred to and included in ASC 740-10-55-26 and ASC 740-10-55-139 through 55-144. The FASB notes that such amendments are consistent with the accounting for other incremental taxes, such as the base erosion anti-abuse tax. Moreover, in paragraph BC12 of the ASU, the FASB concluded that subjecting these taxes to the disclosure requirements in ASC 740 will result in greater transparency of franchise tax amounts. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40)” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements. |
GOING CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 2. GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has limited assets, has an accumulated deficit of $36,024,876 and has negative cash flows from operations. As of March 31, 2021, the Company had a working capital deficit of $14,804,305. The Company has relied on raising debt and equity capital in order to fund its ongoing day-to-day operations and its corporate overhead. The Company will require additional working capital from either cash flow from operations, from debt or equity financing, or from a combination of these sources. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 3. PROPERTY AND EQUIPMENT Property and equipment at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Leasehold improvements 18,840 18,840 Machinery and leased equipment $ 365,483 $ 365,483 Machinery and equipment not yet in service 32,580 32,580 Office equipment and furniture 39,356 39,357 Website 2,760 2,760 Total property and equipment $ 459,020 $ 459,020 Less: Accumulated Depreciation (112,304 ) (100,301 ) Property and equipment, net 346,716 358,719 Depreciation expense was $12,000 and $6,153 for the three-months ended March 31, 2021 and 2020, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 4. INTANGIBLE ASSETS Intangible assets at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 Patents $ 4,505,489 $ 4,505,489 Technology rights 200,000 200,000 Intangible, at cost 4,705,489 4,705,489 Less: Accumulated amortization (1,381,587 ) (1,305,465 ) Net Carrying Amount $ 3,323,902 $ 3,400,024 Amortization expense was $76,122 and $76,868 for the three-months ended March 31, 2021 and 2020, respectively. Estimated Future Amortization Expense: $ For year ending December 31, 2021 228,366 For year ending December 31, 2022 304,488 For year ending December 31, 2023 304,488 For year ending December 31, 2024 304,488 For year ending December 31, 2025 304,488 Thereafter 1,877,584 Total 3,323,902 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 5. LEASES On August 26, 2020, the Company signed a new one-year lease for the Company headquarters and operations located in Little River, South Carolina. The lease was effective retroactively from July 1, 2020, ending on June 30, 2021, for $7,500 per month. The Company re-negotiated an annual lease on the Little River, SC facility for $7,500 per month, retroactive to July 1, 2020, which is renewable for an additional four years (with a 2% increase annually). The Company renewed the lease for another year, effective July 1, 2021, at $7,650/month. On October 19, 2020, the Company entered into a building lease with a three-year term and an effective date of November 1, 2020. The lease requires the Company to make payments of $4,500 per month. The Company recognized operating lease expense of $13,500 during the period ended March 31, 2021. At March 31, 2021, the weighted average remaining operating lease term was 2.58 years and the weighted average discount rate associated with operating leases was 18.5%. On March 15, 2021, the Company entered into a building lease with a two-year term and an effective date of April 1, 2021. The lease requires the Company to make payments of $2,750 per month. The Components of lease expenses were as follows: 2021 2020 $ Total operating lease cost 13,500 — The following table provides supplemental cashflow and other information related to leases for the period ended March 31, 2021 and 2020: 2021 2020 $ Lease payments 38,750 17,940 Supplemental balance sheet information related to leases as of March 31, 2021 and 2020 are as below: 2021 2020 $ Cost 123,614 — Accumulated amortization (13,378 ) — Net carrying value 110,236 — Future minimum lease payments related to lease obligations are as follows as of March 31, 2021: $ 2021 40,500 2022 54,000 2023 45,000 Total minimum lease payments 139,500 Less: amount of lease payments representing effects of discounting (25,394 ) Present value of future minimum lease payments 114,106 Less: current obligations under leases (36,607 ) Lease liabilities, net of current portion 77,499 |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 6. Notes Payable The following table summarizes notes payable as of March 31, 2021 and December 31, 2020: Type Original Amount Origination Date Maturity Date Effective Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Note Payable ** $ 25,000 05/08/2017 06/30/2018 0 % $ 27,500 $ 27,500 Note Payable ** $ 8,700 11/15/2018 06/30/2019 10 % $ 8,700 $ 8,700 Note Payable $ 118,644 05/05/2020 05/05/2021 8 % $ 110,644 $ 110,644 Note Payable (a) $ 199,500 10/01/2020 09/28/2021 66 % $ 95,805 $ 149,573 Note Payable (b) $ 126,000 11/03/2020 04/23/2021 168 % $ 21,000 $ 85,050 Note Payable (c) $ 113,980 11/04/2020 03/15/2021 210 % $ — $ 65,988 Note Payable (d) $ 177,800 01/02/2021 07/12/2021 116 % $ 115,957 $ — Note Payable (e) $ 111,920 03/03/2021 05/21/2021 220 % $ 90,935 $ — Subtotal $ 470,542 $ 447,455 Debt discount $ (57,412 ) $ (63,075 ) Balance, net $ 413,130 $ 384,380 Less current portion $ (413,130 ) $ (384,380 ) Total long-term $ — $ — ** Currently in default a) On October 1, 2020, the Company sold future receivables with a non-related party for $199,500, of which $53,250 was loan fees and original issue discount resulting in cash proceeds to the Company of $146,250. The advance is to be repaid through weekly payments of $3,841. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $14,625 of the discount was amortized to expense, leaving a net note balance of $79,789 (discount balance of $16,017). b) On November 3, 2020, the Company sold future receivables with a non-related party for $126,000, of which $39,650 was loan fees and original issue discount resulting in cash proceeds to the Company of $86,350. The advance is to be repaid through $1,050 daily payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $17,969 of the discount was amortized to expense, leaving a net note balance of $20,025 (discount balance of $975). c) On November 4, 2020, the Company sold future receivables with a non-related party for $113,980, of which $34,440 was loan fees and original issue discount resulting in cash proceeds to the Company of $79,540. The advance is to be repaid through $5,999 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $13,489 of the discount was amortized to expense, and the remaining $65,988 was repaid leaving a note balance of $0. d) On February 2, 2021, the Company sold future receivables with a non-related party for $177,800, of which $39,795 was loan fees and original issue discount resulting, and $35,994 was paid to settle the loan described in Note (d) in cash proceeds to the Company of $102,011. The advance is to be repaid through $7,730 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $21,522 of the discount was amortized to expense, leaving a net note balance of $97,684 (discount balance of $18,273). e) On March 9, 2021, the Company sold future receivables with a non-related party for $111,920, of which $35,120 was loan fees and original issue discount resulting in cash proceeds to the Company of $76,800. The advance is to be repaid through $1,399 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $12,975 of the discount was amortized to expense, leaving a net note balance of $68,790 (discount balance of $22,145). f) On March 9, 2021, the Company sold future receivables with a non-related party for $29,686, of which $10,120 was loan fees and original issue discount resulting in cash proceeds to the Company of $19,566. During the three months ended March 31, 2021, $10,120 of the discount was amortized to expense and $29,686 was repaid, leaving a net note balance of $0. The following table summarizes notes payable as of March 31, 2021 and December 31, 2020: Type Original Amount Origination Date Maturity Date Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Note Payable, RP ** $ 30,000 04/10/2018 01/15/2019 3 % $ 5,000 $ 30,000 Note Payable, RP **(g) $ 380,000 06/20/2018 01/02/2020 8 % $ — $ 380,000 Note Payable, RP **(h) $ 350,000 06/20/2018 01/02/2020 5 % $ — $ 285,214 Note Payable, RP ** $ 17,000 06/20/2018 01/02/2020 5 % $ 17,000 $ 17,000 Note Payable, RP ** $ 50,000 07/27/2018 11/30/2018 8 % $ 50,000 $ 50,000 Note Payable, RP $ 5,000 10/09/2018 Demand 0 % $ 5,000 $ 5,000 Note Payable, RP $ 5,000 10/19/2018 Demand 0 % $ 5,000 $ 5,000 Note Payable, RP ** $ 15,000 08/16/2019 02/16/2020 8 % $ 15,000 $ 15,000 Note Payable, RP $ 2,000 02/11/2020 Demand 0 % $ 2,000 $ 2,000 Note Payable, RP (h) $ 84,034 02/16/2021 Demand 5 % $ 84,034 $ — Subtotal $ 183,034 $ 789,214 Debt discount $ — $ — Balance, net $ 183,034 $ 789,214 Less current portion $ (183,034 ) $ (789,214 ) Total long-term $ — $ — ** Currently in default g) On February 16, 2021, the Company issued 2,663,299 shares of common stock to settle a June 20, 2018 note payable of $380,000 and accrued interest of $26,153 owed to the current COO and Director of the Company. The Company recognized the fair value of the shares issued of $74,572 and due to the related party nature of the transaction no gain was recognized for the difference between the fair value of the shares and the extinguished debt. The resulting difference was recorded as Additional Paid-in Capital in the amount of $328,919. h) On February 16, 2021, the Company issued 1,803,279 shares of common stock to settle $247,156 from a $275,000 note payable dated June 20, 2018, which has a balance of $331,190, including interest, to the current Chairman and CEO of the Company. The Company also agreed to issue a new note for the remaining balance owed to the Chairman and CEO of $84,034, dated February 16, 2021. The note will bear interest at 5% per annum and is due on June 30, 2021. The Company recognized the fair value of the shares issued of $50,492 and due to the related party nature of the transaction no gain was recognized for the difference between the fair value of the shares and the extinguished debt. The resulting difference was recorded as Additional Paid-in Capital in the amount of $194,861. The following table summarizes convertible notes payable as of March 31, 2021 and December 31, 2020: Type Original Amount Origination Date Maturity Date Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Convertible Note Payable * ** $ 65,000 12/06/2018 12/06/2019 12 % $ 46 $ 46 Convertible Note Payable * **(i) $ 75,000 03/18/2019 12/13/2019 24 % $ 107,795 $ 177,795 Convertible Note Payable * ** (j) $ 30,000 03/06/2020 03/05/2021 12 % $ 36,834 $ 21,662 Convertible Note Payable (k) * ** $ 150,000 04/10/2020 04/09/2021 12 % $ 90,000 $ 165,000 Convertible Note Payable ** (l) $ 300,000 08/27/2020 07/31/2021 12 % $ 280,000 $ 300,000 Convertible Note Payable (m) $ 53,500 09/22/2020 03/21/2022 12 % $ — $ 53,500 Convertible Note Payable (n) $ 87,500 09/24/2020 Demand 8 % $ 15,000 $ 40,000 Convertible Note Payable (o) $ 200,000 10/07/2020 10/06/2021 5 % $ 200,000 $ 200,000 Convertible Note Payable (p) $ 200,000 10/16/2020 10/15/2021 5 % $ 200,000 $ 200,000 Convertible Note Payable (q) $ 300,000 11/11/2020 11/10/2021 5 % $ 300,000 $ 300,000 Convertible Note Payable (r) $ 150,000 12/29/2020 12/28/2021 5 % $ 150,000 $ 150,000 Convertible Note Payable (s) $ 150,000 01/27/2021 01/27/2022 5 % $ 150,000 $ — Convertible Note Payable (t) $ 128,000 02/22/2021 02/22/2022 12 % $ 128,000 $ — Convertible Note Payable (u) $ 200,000 03/18/2021 03/18/2022 5 % $ 200,000 $ — Convertible Note Payable (v) $ 83,000 03/26/2021 03/26/2022 12 % $ 83,000 $ — Subtotal $ 1,940,675 $ 1,608,003 Debt discount $ (5,658 ) $ — Balance, net $ 1,935,017 $ 1,608,003 Less current portion $ (1,935,017 ) $ (1,554,503 ) Total long-term $ — $ 53,500 i) During the three months ended March 31, 2021 the Company repaid $70,000 of the convertible note payable. j) During the three months ended March 31, 2021 the Company incurred additional default penalties of $15,174 on the convertible note. k) On April 10, 2020, the Company entered into a convertible promissory note with a non-related party for $150,000, of which $18,000 was an original issue discount resulting in cash proceeds to the Company of $132,000. The note is due on April 9, 2021 and bears interest on the unpaid principal balance at a rate of 12% per annum. The Note may be converted by the Lender at any time into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading price during the 25-trading day period prior to the conversion date. Further, if at any time the stock price is less than $0.30, an additional 20% discount is applied and if at any time the conversion price is less than $0.01 an additional 10% is applied. Further, an additional 15% is applied if the Company fails to comply with its reporting requirements. During the period, all these additional discounts were triggered. The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15. The initial fair value of the conversion feature was $507,847 and resulted in a discount to the note payable of $132,000 and an initial derivative expense of $375,847. During the year ended December 31, 2020, the Company incurred $15,000 of penalties which increased the principal amount of the note to $165,000. During the three months ended March 31, 2021, the Company repaid $75,000 of the note. l) During the three months ended March 31, 2021, the Company repaid $20,000 of the note. m) On September 22, 2020, the Company entered into a convertible promissory note with a non-related party for $53,500, of which $3,500 was an original issue discount resulting in cash proceeds to the Company of $50,000. The note is due on March 21, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. During the three months ended March 31, 2021 the Company repaid the $53,500 note as well as $25,882 of interest and prepayment penalties. As the note was repaid prior to becoming convertible no derivative liability was recognized. n) During the three months ended March 31, 2021 the Company issued 25,000,000 common shares upon the conversion of $25,000 of the convertible note payable. o) On October 7, 2020, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on October 6, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.20. p) On October 16, 2020, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on October 15, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.20. q) On November 11, 2020, the Company entered into a convertible promissory note with a non-related party for $300,000. The note is due on November 10, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.15. r) On December 29, 2020, the Company entered into a convertible promissory note with a non-related party for $150,000. The note is due on December 28, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.10. s) On January 27, 2021, the Company entered into a convertible promissory note with a non-related party for $150,000. The note is due on January 26, 2022 and bears interest on the unpaid principal balance at a rate of 5% per annum. The note may be converted by the lender at any time within 6-months of the date of issuance into shares of Company’s common stock at a conversion price equal to $0.10. t) On February 23, 2021, the Company entered into a convertible promissory note with a non-related party for $128,000, of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $125,000. The note is due on February 22, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. As the note is not convertible until 180 days following issuance, no derivative liability was recognized as of March 31, 2021. u) On March 18, 2021, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on March 17, 2022 and bears interest on the unpaid principal balance at a rate of 5% per annum. The note may be converted by the lender at any time within 6-months of the date of issuance into shares of Company’s common stock at a conversion price equal to $0.10. v) On March 26, 2021, the Company entered into a convertible promissory note with a non-related party for $83,000, of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $80,000. The note is due on March 24, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. As the note is not convertible until 180 days following issuance, no derivative liability was recognized as of March 31, 2021. |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
DERIVATIVE LIABILITIES | NOTE 7 – DERIVATIVE LIABILITIES The embedded conversion option of (1) the convertible debentures described in Note 6 and (2) warrants, containing conversion features that qualify for embedded derivative classification. The fair value of the liabilities will be re-measured at the end of every reporting period and the change in fair value will be reported in the statement of operations as a gain or loss on derivative financial instruments. Upon the issuance of the convertible notes payable described in Note 6, the Company concluded that it only has sufficient shares to satisfy the conversion of some but not all of the outstanding convertible notes, warrants and options. The Company elected to reclassify contracts from equity with the earliest inception date first. As a result, none of the Company’s previously outstanding convertible instruments qualified for derivative reclassification, however, any convertible securities issued after the election, including the warrants described in Note 10, qualified for derivative classification. The Company reassesses the classification of the instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities. March 31, 2021 December 31, Balance at the beginning of period $ 11,429,043 $ 10,517,873 Original discount limited to proceeds of convertible notes — 166,000 Fair value of derivative liabilities in excess of notes proceeds received — 1,128,966 Settlement of derivative instruments (316,401 ) (4,876,287 ) Change in fair value of embedded conversion option 650,913 4,492,491 Balance at the end of the period $ 11,763,555 $ 11,429,043 The Company uses Level 3 inputs for its valuation methodology for the embedded conversion features and warrant liabilities as their fair values were determined by using the Binomial Model based on various assumptions. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations: Expected Volatility Risk-free Interest Rate Expected Dividend Yield Expected Life (in years) At March 31, 2021 116 - 262 % 0.07-0.92 % 0 % 0.66-4.41 |
STOCKHOLDERS' DEFICIT AND STOCK
STOCKHOLDERS' DEFICIT AND STOCK OPTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT AND STOCK OPTIONS | NOTE 8 - STOCKHOLDERS’ DEFICIT Preferred Stock Effective March 23, 2018, the Company amended the articles of incorporation and authorized 10,000,000 shares of preferred stock with a par value of $0.001 per share. The preferred stock may be issued from time to time by the Board of Directors as shares of one or more classes or series, as summarized below. Series A Preferred Shares Effective March 23, 2018, the Company amended the articles of incorporation and authorized 10,000,000 shares of preferred stock with a par value of $0.001 per share, of which 1,000,000 shares were designated as Series A Convertible Preferred Stock as of December 31, 2019. The preferred stock may be issued from time to time by the Board of Directors as shares of one or more classes or series. On December 1, 2018, the Company’s Board of Directors authorized an offering for 1,000,000 Preferred Series “A” stock at $0.10 per share and with 100% regular or cashless exercise at $0.10 per share of common stock warrant coverage. At December 31, 2018, the Company received $60,000 of subscriptions for the issuance of 600,000 shares of Preferred Series “A” stock to three accredited investors who are related parties. The Company was unable to issue the subscriber the preferred shares until the Company filed a Certificate of Designation and the Preferred Series “A” stock has been duly validly authorized. Resulting in a preferred stock liability related to the Company’s commitment to issue shares of Series A stock upon the designation. On April 12, 2019, the Company filed a Certificate of Designation with the Nevada Secretary of State designating 1,000,000 shares of its authorized preferred stock as Series A Convertible Preferred Stock. The principal terms of the Series A Preferred Shares are as follows: Issue Price The stated price for the Series A Preferred shall be $0.10 per share. Redemption This Company may at any time following the first anniversary date of issuance (the “Redemption Date”), at the option of the Board of Directors, redeem in whole or in part the Shares by paying in cash in exchange for the Shares to be redeemed a price equal to the Original Series A Issue Price ($0.10) (the “Redemption Price”). Any redemption affected pursuant to this provision shall be made on a pro rata basis among the holders of the Shares in proportion to the number of the shares then held by them. Dividends None. Preference of Liquidation In the event of any liquidation, dissolution or winding up of the Company, the holders of Shares shall be entitled to receive, prior and in preference to any distribution of any of the assets of this Company, to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the sum of (i) $0.10 for each outstanding Share (the “Original Series A Issue Price”) and (ii) an amount equal to 6% of the Original Series A Issue Price for each 12 months that has passed since the date of issuance of any Shares (such amount being referred to herein as the “Premium”). For purposes of this provision, a liquidation, dissolution or winding up of this Company shall be deemed to be occasioned by, or to include, (A) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation but, excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (B) a sale of all or substantially all of the assets of the Company; unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise), hold at least 50% of the voting power of the surviving or acquiring entity. If upon the occurrence of such liquidation, dissolution or winding up event, the assets and funds thus distributed among the holders of the Shares shall be insufficient to permit the payment to such holders of the full aforesaid preferential amounts, then, subject to the rights of series of preferred stock that may from time to time come into existence, the entire assets and funds of the Company legally available for distribution shall be distributed ratably among the holders of the Shares in proportion to the preferential amount each such holder is otherwise entitled to receive. In any of such liquidation, dissolution or winding up event, if the consideration received by the Company is other than cash, its value will be deemed its fair market value. Any securities shall be valued as follows: Securities not subject to investment letter or other similar restrictions on free marketability (covered by (B) below): 1) If traded on a securities exchange (NASDAQ, AMEX, NYSE, etc.), the value shall be deemed to be the average of the closing prices of the securities on such exchange over the thirty-day period ending three (3) days prior to the closing; 2) If traded on a quotation system, such as the OTC:QX, OTC:QB or OTC Pink Sheets, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty-day period ending three (3) days prior to the closing; and 3) If there is no active public market, the value shall be the fair market value thereof, as mutually determined by the Company and the holders of at least a majority of the voting power of all then outstanding shares of Preferred Stock. The method of valuation of securities subject to investment letter or other restrictions on free marketability (other than restrictions arising solely by virtue of a stockholder’s status as an affiliate or former affiliate) shall be to make an appropriate discount from the market value determined as above in (A) (1), (2) or (3) to reflect the approximate fair market value thereof, as mutually determined by the Company and the holders of at least a majority of the voting power of all then outstanding shares of such Preferred Stock. Voting The holder of each Share shall not have any voting rights, except in the case of voting on a change in the preferences of Shares. Conversion Each Share shall be convertible into shares of the Company’s Common Stock at a price per share of $0.10 (1 Share converts into 1 share of Common Stock), at the option of the holder thereof, at any time following the date of issuance of such Share and on or prior to the fifth day prior to the Redemption Date, if any, as may have been fixed in any Redemption Notice with respect to the Shares, at the office of this Company or any transfer agent for such stock. Each Share shall automatically be converted into shares of Common Stock on the first day of the thirty-sixth (36th) month following the original issue date of the shares at the Conversion Price per share. The Company was unable to issue the subscribers the preferred shares until the Company filed a Certificate of Designation and the Preferred Series “A” stock had been duly validly authorized. As the Company had not filed the Certificate of Designation and as the Company could not issue the preferred shares to settle the proceeds received, it was determined the subscriptions were settleable in cash. As a result, the Company classified the subscriptions received as a liability in accordance with ASC 480 Distinguishing Liabilities from Equity. The filing of the Certificate of Designation and issuance of the preferred shares resulted in the reclassification of the Series A Preferred Shares from a liability to temporary equity or “mezzanine” because the preferred shares include the liquidation preferences described above. The fair value of the preferred series A stock on April 12, 2019 was $60,398 and was valued by using the Binomial Model based on various assumptions and was reclassified from a liability to mezzanine equity. As of March 31, 2021, and December 31, 2020, there were 500,000 shares of Series A Convertible Preferred Stock issued and outstanding, respectively. Series B Preferred Shares Effective August 13, 2019, the Company filed a Certificate of Designation with the Nevada Secretary of State thereby designating 1,000,000 shares of its authorized preferred stock as Series B –Preferred Stock. The principal terms of the Series B Preferred Shares are as follows: Voting Rights Holders of the Series B Preferred Stock shall be entitled to cast five hundred (500) votes for each share held of the Series B Preferred Stock on all matters presented to the stockholders of the Corporation for stockholder vote which shall vote along with holders of the Corporation’s Common Stock on such matters. Redemption Rights The Series B Preferred Stock shall be redeemed by the Corporation upon the successful receipt by the Corporation of at least $1,000,000 in equity capital following the issuance of the Series B Preferred Stock. To date the Company has received $500,500 of equity capital, and upon the receipt of an additional $499,500 in equity capital the redemption right will be triggered. Conversion Rights The Series B Preferred Stock is not convertible into shares of Common Stock of the Corporation. Protective Provisions So long as any shares of Series B Preferred Stock are outstanding, this Corporation shall not without first obtaining the approval (by vote or written consent, as provided by law) of the Holders of the Series B Preferred Stock which is entitled, other than solely by law, to vote with respect to the matter, and which Preferred Stock represents at least a majority of the voting power of the then outstanding shares of such Series B Preferred Stock: a) sell, convey, or otherwise dispose of or encumber all or substantially all of its property or business or merge into or consolidate with any other corporation (other than a wholly owned subsidiary corporation) or effect any transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Corporation is disposed of; b) alter or change the rights, preferences or privileges of the shares of Series B Preferred Stock so as to affect adversely the shares; c) increase or decrease (other than by redemption or conversion) the total number of authorized shares of preferred stock; d) authorize or issue, or obligate itself to issue, any other equity security, including any other security convertible into or exercisable for any equity security (i) having a preference over, or being on a parity with, the Series B Preferred Stock with respect to dividends or upon liquidation, or (ii) having rights similar to any of the rights of the Series B Preferred Stock; or e) amend the Corporation’s Articles of Incorporation or bylaws. Dividends None. Preference of Liquidation None. Upon designation, the Company issued 500,000 shares of the Series B preferred stock to each of its current CEO/Chairman and COO/Director (1,000,000 shares in total) pursuant to their employment agreements. As the Series B Preferred Shares represent share-based payments that are not classified as liabilities but that could require the employer to redeem the equity instruments for cash or other assets, the Company classified the initial redemption amount of the shares of $158,247 as temporary equity or “mezzanine”. As of March 31, 2021, and December 31, 2020, there were 1,000,000 shares of Series B Preferred Stock issued and outstanding, respectively. Series C Preferred Shares Pursuant to the September 18, 2019 majority consent of stockholders in lieu of an annual meeting (including the consent of the Series A Convertible Preferred Stockholders), the Registrant filed a Certificate of Designation with the Nevada Secretary of State designating 5,500,000 shares of its authorized preferred stock as Series C Convertible Preferred Stock. The Registrant is awaiting the file stamped Certificate of Designation from the Nevada Secretary of State. The rights and preferences of such preferred stock are as follows: The number of shares constituting the Series C Convertible Preferred Stock shall be 5,500,000. Such number of shares may be increased or decreased by resolution of the Board of Directors, provided that no decrease shall reduce the number of shares of Series C Convertible Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Company convertible into Series C Convertible Preferred Stock. Conversion Rights Each Share shall be convertible into shares of the Company’s Common Stock at a price per share of $0.01 (1 Share converts into 100 shares of Common Stock) (the “Conversion Price”), at the option of the holder thereof, at any time following the date of issuance of such Share and on or prior to the fifth (5th) day prior to the redemption Date, if any, as may have been fixed in any redemption notice with respect to the Shares, at the office of this Company or any transfer agent for such stock. Voting Rights The holder of each Share shall not have any voting rights, except in the case of voting on a change in the preferences of Shares. Protective Provisions So long as any Shares are outstanding, this Company shall not without first obtaining the approval (by vote or written consent, as provided by law) of the holders of Shares which is entitled, other than solely by law, to vote with respect to the matter, and which Shares represents at least a majority of the voting power of the then outstanding Shares: a) sell, convey, or otherwise dispose of or encumber all or substantially all of its property or business or merge into or consolidate with any other corporation (other than a wholly owned subsidiary corporation) or effect any transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Company is disposed of; b) alter or change the rights, preferences or privileges of the Shares so as to affect adversely the Shares; c) increase or decrease (other than by redemption or conversion) the total number of authorized shares of preferred stock; d) authorize or issue, or obligate itself to issue, any other equity security, including any other security convertible into or exercisable for any equity security (i) having a preference over, or being on a parity with, the Shares with respect to liquidation, or (ii) having rights similar to any of the rights of the Preferred Stock; or e) amend the Company’s Articles of Incorporation or bylaws. Other Rights There are no other rights, privileges or preferences attendant or relating to in any way the Shares, including by way of illustration but not limitation, those concerning dividend, ranking, other conversion, other redemption, participation or anti-dilution rights or preferences. As conversion of the Series C Preferred Shares is not within the control of the Company, and it is not certain that the Company could satisfy its obligation to deliver shares upon conversion, the Series C Preferred Shares were classified in temporary equity or “mezzanine”. At December 31, 2020, there were 40,000 Series C Preferred Shares issued and outstanding, valued at $1 per share or $40,000. On February 15, 2021, 40,000 shares of preferred series C stock was converted into common stock (1 share converts into 100 shares of common stock), resulting in the issuance of 4,000,000 shares of common stock. At March 31, 2021, no Series C Preferred Shares were outstanding Common Stock Effective March 23, 2018, the Company amended the Articles of Incorporation and increased the authorized shares of common stock with a par value of $0.001 per share from 100,000,000 to 300,000,000 shares. Effective October 4, 2019, the Company amended the Articles of Incorporation and increased the authorized shares of common stock with a par value of $0.001 per share from 300,000,000 to 1,000,000,000 shares. The number of shares outstanding of the registrant’s common stock as of March 31, 2021 and December 31, 2020 was 758,454,354 and 722,487,846, respectively. On January 4, 2021, the Company issued 25,000,000 common shares to settle a convertible note described in Note 6(o), with a remaining balance of $40,000. On February 15, 2021, 40,000 shares of preferred series C stock was converted into common stock (1 share converts into 100 shares of common stock), resulting in the issuance of 4,000,000 shares of common stock. On February 16, 2021, the Company issued 1,803,279 shares of common stock to settle $247,270 from a $275,000 note payable dated June 20, 2018, which has a balance of $331,304, including interest, to the current Chairman and CEO of the Company. On February 16, 2021, the Company issued 2,663,299 shares of common stock to settle a June 20, 2018 note payable of $380,000 and accrued interest of $26,153 owed to the current COO and Director of the Company. On March 1, 2021, the Company entered into a consulting agreement. Pursuant to the agreement, the consultant will provide advisory services through May 31, 2021 in consideration of 2,500,000 shares of common stock. The fair value of the common stock was $62,750, of which $20,917 was recognized in consulting expenses for the period ended March 31, 2021 and $41,833 was recorded as prepaid expenses. NOTE 9. STOCK OPTIONS Below is a table summarizing the options issued and outstanding as of March 31, 2021: Number of options Weighted average exercise price Balance, December 31, 2020 200,000 2.00 Granted — — Expired — — Settled — — Balance, March 31, 2021 200,000 2.00 As at March 31, 2021, the following share stock options were outstanding: Date Number Number Exercise Weighted Average Remaining Contractual Expiration Proceeds to Company if Issued Outstanding Exercisable Price $ Life (Years) Date Exercised 01/26/2017 200,000 200,000 2.00 0.82 01/26/2022 400,000 200,000 200,000 $ 400,000 The weighted average exercise prices are $2.00 for the options outstanding and exercisable, respectively. The intrinsic value of stock options outstanding at March 31, 2021 was $nil. |
WARRANTS
WARRANTS | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees and Product Warranties [Abstract] | |
WARRANTS | NOTE 9. WARRANTS The Company concluded that it only has sufficient shares to satisfy the conversion of some but not all of the outstanding convertible instruments. The initial fair value of the warrants issued during the period was calculated using the Binomial Model as described in Note 6. The following table summarizes the continuity of share purchase warrants: Number of Weighted average exercise price Balance, December 31, 2020 457,690,272 0.000179 Adjustment to warrants outstanding — — Granted — — Settled — — Balance, March 31, 2021 457,690,272 0.000179 As at March 31, 2021, the following share purchase warrants were outstanding: Date Number Number Exercise Weighted Average Remaining Contractual Expiration Proceeds to Company if Issued Outstanding Exercisable Price $ Life (Years) Date Exercised 11/28/2018 142,857,143 * 142,857,143 * 0.00035 * 0.66 11/28/2021 $ 50,000 12/3/2018 500,000 500,000 0.10 2.68 12/3/2023 50,000 2/14/2019 152,899,585 * 152,899,585 * 0.00035 * 2.88 2/14/2024 50,267 3/13/2019 107,142,857 * 107,142,857 * 0.00035 * 2.95 3/13/2024 37,500 9/11/2019 53,571,429 * 53,571,429 * 0.00056 * 3.45 9/11/2024 30,000 8/26/2020 10,000,000 10,000,000 0.06000 4.41 8/26/2025 600,000 457,690,272 457,690,272 $ 817,767 *The number of warrants outstanding and exercisable is variable based on adjustments to the exercise price of the warrant due to dilutive issuances. The intrinsic value of warrants outstanding at March 31, 2021 was $9,670,419. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10. RELATED PARTY TRANSACTIONS The Company has agreements with related parties for consulting services, accrued rent, accrued interest, notes payable and stock options. See Notes to Financial Statements numbers 6, 8, 9 and 11 for more details. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11. COMMITMENTS AND CONTINGENCIES Consulting Agreements On March 1, 2021, the Company entered into a consulting agreement. Pursuant to the agreement, the consultant will provide consulting services to the Company in various marketing and management matters for a period of three months. In consideration for the services performed by the consultant, the Company agreed to compensate the consultant $5,000 per month. Additionally, the Company agreed to sell to the consultant, and the consultant has the option to purchase from the Company, two and one-half million (2,500,000) shares of the Company’s Common Stock at the price of $0.0001. This option to purchase is valid for one year. The Company also uses the professional services of securities attorneys, a US EPA specialist, professional accountants, and other public-company specialists. Employment Agreements – No new agreements during the period ending March 31, 2021. Other Obligations and Commitments – No new obligation or commitments during the period ending March 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS On April 2, 2021 and April 16, 2021, the Company paid $35,000 and $19,000 respectively to a non-related party towards a $75,000 Convertible Note dated March 18, 2019. On April 5, 2021, the Company entered into a convertible promissory note with a non-related party for $43,000. The Note is due on April 5, 2022 and bears interest on the unpaid principal balance at the rate of 12% per annum. The Note may be converted by the lender at any time before 6-months of the date of issuance into shares of Company’s common stock at the conversion price equal to 61% multiplied by the Market Price. On April 14, 2021, the Company entered into a convertible promissory note with a non-related party for $200,000. The Note is due on April 14, 2022 and bears interest on the unpaid principal balance at the rate of 5% per annum. The Note may not be converted by the lender before 6 months of the issuance date into shares of Company’s common stock at a conversion price equal to $0.10. On May 3, 2021, the Company entered into a convertible promissory note with a non-related party for $128,000. The Note is due on May 3, 2022 and bears interest on the unpaid principal balance at the rate of 12% per annum. The Note may be converted by the lender at any time before 6-months of the date of issuance into shares of Company’s common stock at the conversion price equal to 61% multiplied by the Market Price. On May 5, 2021, the Company entered into an employment agreement with a recently appointed officer, whereby it authorized the issuance of 1,000,000 shares of common stock to such officer (see 8-K issued May 21, 2021) On May 6, 2021, the Company accepted the resignation of Gregory W. Albers from the position of Secretary/Treasurer of PCT LTD. Mr. Albers will continue to serve as a member of the Board as a Director (see 8-K issued May 21, 2021) On May 7, 2021, the Company deemed in the best interest to settle any and all of the Company’s prior convertible debt with Crown Bridge Partners and allow for the cashless exercise to purchase 1,921,875 shares of PCT LTD’s common stock (par value $0.001/share) at the rate of $0.032/share, thereby reducing PCT LTD’s prior debt to Crown Bridge Partners to $0.00. In addition, Crown Bridge Partners shall release 60,072,853 shares to the agreed upon payment terms of $36,994 cash. On May 19, 2021, the company received acknowledgement from a non-related, convertible note holder, with which the Company had previously settled its debt, that 4,623,093 warrants were extinguished at the time of the settlement (May 8, 2020); thereby returning 4,623,093 warrants to the Company’s treasury. On June 2, 2021, the Company sold future receivables to a non-related party for $222,400, of which $8,000 was attributable to loan fees and $62,400 to original issue discount resulting in cash proceeds to the Company of $152,000. The advance is to be repaid through weekly payments of $8,554. In connection with the advance, the Company granted the lender a security interest in all past, present and future assets of the Company. On June 2, 2021, the Company paid $25,000 to a non-related party toward a $150,000 Convertible Note dated April 9, 2020. On June 2, 2021, the Company entered into a subscription and purchase agreement with a non-related party consisting of 3,750,000 restricted shares of common stock (aggregate) at a price per share of $0.02 for $75,000 cash. On June 4, 2021, the Company paid $43,600 to a non-related party to extinguish any and all debt owed on a February 1, 2021 future receivables transaction On July 1, 2021, the Company renewed its annual lease on the Little River, SC facility for $7,650 per month, which is renewable for an additional three years (with a 2% increase annually). |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
COVID-19 | COVID-19 In December 2019 COVID-19 emerged in Wuhan, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to almost all other countries, including the United States, and infections have been reported globally. Because COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. Additional, more restrictive proclamations and/or directives may be issued in the future. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak. Any resulting financial impact cannot be reasonably estimated at this time but may have a material impact on our business, financial condition and results of operations. The significance of the impact of the COVID-19 outbreak on the Company’s businesses and the duration for which it may have an impact cannot be determined at this time. At a minimum, the COVID-19 pandemic caused the Company to restrict travel of its personnel and to initiate distributor installations of certain of the Company’s equipment, as possible. The Company adapted to the immediate need for its US EPA registered disinfectant at the end of March and beginning of April, 2020, but installing greater storage reserves and by assembling more of it higher-volume equipment to produce the hospital grade disinfectant known as Hydrolyte®. There were hard costs associates with these adaptations to the Little River, SC facility, but the Company continues to benefit from its fluid production capacities over the longer term. As the Federal, state and other restrictions associated with the pandemic have lessened, the Company is able to act more effectively in obtaining new contracts for its healthcare equipment, the Annihilyzer®. |
Nature of Operations | Nature of Operations PCT LTD (formerly Bingham Canyon Corporation, (the “Company,” “PCT Ltd,” or “Bingham”), a Delaware corporation, was formed on February 27, 1986. The Company changed its domicile to Nevada on August 26, 1998. The Company acquires, develops and provides sustainable, environmentally safe disinfecting, cleaning and tracking technologies. The Company specializes in providing cleaning, sanitizing, and disinfectant fluid solutions and fluid-generating equipment that creates environmentally safe solutions for global sustainability. Paradigm is located in Little River, SC and was formed June 6, 2012 under the name of EUR-ECA, Ltd. On September 11, 2015, its Board of Directors authorized EUR-ECA Ltd to file with the Nevada Secretary of State to change its name to Paradigm Convergence Technologies Corp. Paradigm is a technology licensing company specializing in environmentally safe solutions for global sustainability. The company holds a patent, intellectual property and/or distribution rights to innovative products and technologies. Paradigm provides innovative products and technologies for eliminating biocidal contamination from water supplies, industrial fluids, hard surfaces, food processing equipment, and medical devices. Paradigm’s overall strategy is to market new products and technologies through the use of equipment leasing, joint ventures, licensing, distributor agreements and partnerships. Effective on February 29, 2018, the Company changed its name from Bingham Canyon Corporation to PCT LTD to more accurately identify the Company’s direction and to develop the complimentary relationship and association with its wholly-owned operating company, Paradigm Convergence Technologies Corporation (“Paradigm” or “PCT Corp.”). |
Significant Accounting Policies | Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Company's most recent Form 10-K. |
Basic and Diluted Loss per Share | Basic and Diluted Loss Per Share Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed by dividing net loss by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. As March 31, 2021, there were outstanding common share equivalents (options, warrants, convertible debt, and preferred series A stock which amounted to 556,953,901 shares of common stock. These common share equivalents were not included in the computation of diluted loss per share as their effect would have been anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2019-12 amends the requirements related to the accounting for “hybrid” tax regimes. Such regimes are tax jurisdictions that impose the greater of two taxes — one based on income, or one based on items other than income. Although ASC 740 does not apply to taxes based on items other than income, ASC 740-10-15-4(a) originally specified that if there is a tax based on income that is greater than a franchise tax based on capital, only that excess is subject to the guidance in ASC 740. In feedback to the FASB, stakeholders indicated that the guidance on hybrid tax regimes increased the cost and complexity of applying ASC 740, particularly when the tax amount deemed to be a non-income tax was insignificant. Further, such guidance made it more difficult for entities to determine the appropriate tax rate to use when recording deferred taxes. Accordingly, the FASB amended ASC 740-10-15-4(a) to state that an entity should include the amount of tax based on income in the tax provision and should record any incremental amount recorded as a tax not based on income. This amendment effectively reverses the order in which an entity determines the type of tax under current U.S. GAAP. In addition, the ASU amends the illustrative examples referred to and included in ASC 740-10-55-26 and ASC 740-10-55-139 through 55-144. The FASB notes that such amendments are consistent with the accounting for other incremental taxes, such as the base erosion anti-abuse tax. Moreover, in paragraph BC12 of the ASU, the FASB concluded that subjecting these taxes to the disclosure requirements in ASC 740 will result in greater transparency of franchise tax amounts. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40)” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | March 31, 2021 December 31, 2020 Leasehold improvements 18,840 18,840 Machinery and leased equipment $ 365,483 $ 365,483 Machinery and equipment not yet in service 32,580 32,580 Office equipment and furniture 39,356 39,357 Website 2,760 2,760 Total property and equipment $ 459,020 $ 459,020 Less: Accumulated Depreciation (112,304 ) (100,301 ) Property and equipment, net 346,716 358,719 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of intangible assets | March 31, 2021 December 31, 2020 Patents $ 4,505,489 $ 4,505,489 Technology rights 200,000 200,000 Intangible, at cost 4,705,489 4,705,489 Less: Accumulated amortization (1,381,587 ) (1,305,465 ) Net Carrying Amount $ 3,323,902 $ 3,400,024 |
Estimated future amortization expense of intangible assets | $ For year ending December 31, 2021 228,366 For year ending December 31, 2022 304,488 For year ending December 31, 2023 304,488 For year ending December 31, 2024 304,488 For year ending December 31, 2025 304,488 Thereafter 1,877,584 Total 3,323,902 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of lease expenses, supplemental balance sheet, cashflow and other information related to leases | The Components of lease expenses were as follows: 2021 2020 $ Total operating lease cost 13,500 — The following table provides supplemental cashflow and other information related to leases for the period ended March 31, 2021 and 2020: 2021 2020 $ Lease payments 38,750 17,940 Supplemental balance sheet information related to leases as of March 31, 2021 and 2020 are as below: 2021 2020 $ Cost 123,614 — Accumulated amortization (13,378 ) — Net carrying value 110,236 — |
Future minimum lease payments related to lease obligations | $ 2021 40,500 2022 54,000 2023 45,000 Total minimum lease payments 139,500 Less: amount of lease payments representing effects of discounting (25,394 ) Present value of future minimum lease payments 114,106 Less: current obligations under leases (36,607 ) Lease liabilities, net of current portion 77,499 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes payable | Type Original Amount Origination Date Maturity Date Effective Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Note Payable ** $ 25,000 05/08/2017 06/30/2018 0 % $ 27,500 $ 27,500 Note Payable ** $ 8,700 11/15/2018 06/30/2019 10 % $ 8,700 $ 8,700 Note Payable $ 118,644 05/05/2020 05/05/2021 8 % $ 110,644 $ 110,644 Note Payable (a) $ 199,500 10/01/2020 09/28/2021 66 % $ 95,805 $ 149,573 Note Payable (b) $ 126,000 11/03/2020 04/23/2021 168 % $ 21,000 $ 85,050 Note Payable (c) $ 113,980 11/04/2020 03/15/2021 210 % $ — $ 65,988 Note Payable (d) $ 177,800 01/02/2021 07/12/2021 116 % $ 115,957 $ — Note Payable (e) $ 111,920 03/03/2021 05/21/2021 220 % $ 90,935 $ — Subtotal $ 470,542 $ 447,455 Debt discount $ (57,412 ) $ (63,075 ) Balance, net $ 413,130 $ 384,380 Less current portion $ (413,130 ) $ (384,380 ) Total long-term $ — $ — ** Currently in default a) On October 1, 2020, the Company sold future receivables with a non-related party for $199,500, of which $53,250 was loan fees and original issue discount resulting in cash proceeds to the Company of $146,250. The advance is to be repaid through weekly payments of $3,841. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $14,625 of the discount was amortized to expense, leaving a net note balance of $79,789 (discount balance of $16,017). b) On November 3, 2020, the Company sold future receivables with a non-related party for $126,000, of which $39,650 was loan fees and original issue discount resulting in cash proceeds to the Company of $86,350. The advance is to be repaid through $1,050 daily payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $17,969 of the discount was amortized to expense, leaving a net note balance of $20,025 (discount balance of $975). c) On November 4, 2020, the Company sold future receivables with a non-related party for $113,980, of which $34,440 was loan fees and original issue discount resulting in cash proceeds to the Company of $79,540. The advance is to be repaid through $5,999 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $13,489 of the discount was amortized to expense, and the remaining $65,988 was repaid leaving a note balance of $0. d) On February 2, 2021, the Company sold future receivables with a non-related party for $177,800, of which $39,795 was loan fees and original issue discount resulting, and $35,994 was paid to settle the loan described in Note (d) in cash proceeds to the Company of $102,011. The advance is to be repaid through $7,730 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $21,522 of the discount was amortized to expense, leaving a net note balance of $97,684 (discount balance of $18,273). e) On March 9, 2021, the Company sold future receivables with a non-related party for $111,920, of which $35,120 was loan fees and original issue discount resulting in cash proceeds to the Company of $76,800. The advance is to be repaid through $1,399 weekly payments. In connection with the advance, the Company granted the lender a security interest and all past, present and future assets of the Company. During the three months ended March 31, 2021, $12,975 of the discount was amortized to expense, leaving a net note balance of $68,790 (discount balance of $22,145). f) On March 9, 2021, the Company sold future receivables with a non-related party for $29,686, of which $10,120 was loan fees and original issue discount resulting in cash proceeds to the Company of $19,566. During the three months ended March 31, 2021, $10,120 of the discount was amortized to expense and $29,686 was repaid, leaving a net note balance of $0. Type Original Amount Origination Date Maturity Date Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Note Payable, RP ** $ 30,000 04/10/2018 01/15/2019 3 % $ 5,000 $ 30,000 Note Payable, RP **(g) $ 380,000 06/20/2018 01/02/2020 8 % $ — $ 380,000 Note Payable, RP **(h) $ 350,000 06/20/2018 01/02/2020 5 % $ — $ 285,214 Note Payable, RP ** $ 17,000 06/20/2018 01/02/2020 5 % $ 17,000 $ 17,000 Note Payable, RP ** $ 50,000 07/27/2018 11/30/2018 8 % $ 50,000 $ 50,000 Note Payable, RP $ 5,000 10/09/2018 Demand 0 % $ 5,000 $ 5,000 Note Payable, RP $ 5,000 10/19/2018 Demand 0 % $ 5,000 $ 5,000 Note Payable, RP ** $ 15,000 08/16/2019 02/16/2020 8 % $ 15,000 $ 15,000 Note Payable, RP $ 2,000 02/11/2020 Demand 0 % $ 2,000 $ 2,000 Note Payable, RP (h) $ 84,034 02/16/2021 Demand 5 % $ 84,034 $ — Subtotal $ 183,034 $ 789,214 Debt discount $ — $ — Balance, net $ 183,034 $ 789,214 Less current portion $ (183,034 ) $ (789,214 ) Total long-term $ — $ — ** Currently in default g) On February 16, 2021, the Company issued 2,663,299 shares of common stock to settle a June 20, 2018 note payable of $380,000 and accrued interest of $26,153 owed to the current COO and Director of the Company. The Company recognized the fair value of the shares issued of $74,572 and due to the related party nature of the transaction no gain was recognized for the difference between the fair value of the shares and the extinguished debt. The resulting difference was recorded as Additional Paid-in Capital in the amount of $328,919. h) On February 16, 2021, the Company issued 1,803,279 shares of common stock to settle $247,156 from a $275,000 note payable dated June 20, 2018, which has a balance of $331,190, including interest, to the current Chairman and CEO of the Company. The Company also agreed to issue a new note for the remaining balance owed to the Chairman and CEO of $84,034, dated February 16, 2021. The note will bear interest at 5% per annum and is due on June 30, 2021. The Company recognized the fair value of the shares issued of $50,492 and due to the related party nature of the transaction no gain was recognized for the difference between the fair value of the shares and the extinguished debt. The resulting difference was recorded as Additional Paid-in Capital in the amount of $194,861. Type Original Amount Origination Date Maturity Date Annual Interest Rate Balance at March 31, 2021 Balance at December 31, 2020 Convertible Note Payable * ** $ 65,000 12/06/2018 12/06/2019 12 % $ 46 $ 46 Convertible Note Payable * **(i) $ 75,000 03/18/2019 12/13/2019 24 % $ 107,795 $ 177,795 Convertible Note Payable * ** (j) $ 30,000 03/06/2020 03/05/2021 12 % $ 36,834 $ 21,662 Convertible Note Payable (k) * ** $ 150,000 04/10/2020 04/09/2021 12 % $ 90,000 $ 165,000 Convertible Note Payable ** (l) $ 300,000 08/27/2020 07/31/2021 12 % $ 280,000 $ 300,000 Convertible Note Payable (m) $ 53,500 09/22/2020 03/21/2022 12 % $ — $ 53,500 Convertible Note Payable (n) $ 87,500 09/24/2020 Demand 8 % $ 15,000 $ 40,000 Convertible Note Payable (o) $ 200,000 10/07/2020 10/06/2021 5 % $ 200,000 $ 200,000 Convertible Note Payable (p) $ 200,000 10/16/2020 10/15/2021 5 % $ 200,000 $ 200,000 Convertible Note Payable (q) $ 300,000 11/11/2020 11/10/2021 5 % $ 300,000 $ 300,000 Convertible Note Payable (r) $ 150,000 12/29/2020 12/28/2021 5 % $ 150,000 $ 150,000 Convertible Note Payable (s) $ 150,000 01/27/2021 01/27/2022 5 % $ 150,000 $ — Convertible Note Payable (t) $ 128,000 02/22/2021 02/22/2022 12 % $ 128,000 $ — Convertible Note Payable (u) $ 200,000 03/18/2021 03/18/2022 5 % $ 200,000 $ — Convertible Note Payable (v) $ 83,000 03/26/2021 03/26/2022 12 % $ 83,000 $ — Subtotal $ 1,940,675 $ 1,608,003 Debt discount $ (5,658 ) $ — Balance, net $ 1,935,017 $ 1,608,003 Less current portion $ (1,935,017 ) $ (1,554,503 ) Total long-term $ — $ 53,500 i) During the three months ended March 31, 2021 the Company repaid $70,000 of the convertible note payable. j) During the three months ended March 31, 2021 the Company incurred additional default penalties of $15,174 on the convertible note. k) On April 10, 2020, the Company entered into a convertible promissory note with a non-related party for $150,000, of which $18,000 was an original issue discount resulting in cash proceeds to the Company of $132,000. The note is due on April 9, 2021 and bears interest on the unpaid principal balance at a rate of 12% per annum. The Note may be converted by the Lender at any time into shares of Company’s common stock at a conversion price equal to 65% of the lowest trading price during the 25-trading day period prior to the conversion date. Further, if at any time the stock price is less than $0.30, an additional 20% discount is applied and if at any time the conversion price is less than $0.01 an additional 10% is applied. Further, an additional 15% is applied if the Company fails to comply with its reporting requirements. During the period, all these additional discounts were triggered. The embedded conversion option qualified for derivative accounting and bifurcation under ASC 815-15. The initial fair value of the conversion feature was $507,847 and resulted in a discount to the note payable of $132,000 and an initial derivative expense of $375,847. During the year ended December 31, 2020, the Company incurred $15,000 of penalties which increased the principal amount of the note to $165,000. During the three months ended March 31, 2021, the Company repaid $75,000 of the note. l) During the three months ended March 31, 2021, the Company repaid $20,000 of the note. m) On September 22, 2020, the Company entered into a convertible promissory note with a non-related party for $53,500, of which $3,500 was an original issue discount resulting in cash proceeds to the Company of $50,000. The note is due on March 21, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. During the three months ended March 31, 2021 the Company repaid the $53,500 note as well as $25,882 of interest and prepayment penalties. As the note was repaid prior to becoming convertible no derivative liability was recognized. n) During the three months ended March 31, 2021 the Company issued 25,000,000 common shares upon the conversion of $25,000 of the convertible note payable. o) On October 7, 2020, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on October 6, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.20. p) On October 16, 2020, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on October 15, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.20. q) On November 11, 2020, the Company entered into a convertible promissory note with a non-related party for $300,000. The note is due on November 10, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.15. r) On December 29, 2020, the Company entered into a convertible promissory note with a non-related party for $150,000. The note is due on December 28, 2021 and bears interest on the unpaid principal balance at a rate of 5% per annum. The Note may be converted by the Lender at any time after 6-months of the date of issuance into shares of Company’s common stock at a conversion price of $0.10. s) On January 27, 2021, the Company entered into a convertible promissory note with a non-related party for $150,000. The note is due on January 26, 2022 and bears interest on the unpaid principal balance at a rate of 5% per annum. The note may be converted by the lender at any time within 6-months of the date of issuance into shares of Company’s common stock at a conversion price equal to $0.10. t) On February 23, 2021, the Company entered into a convertible promissory note with a non-related party for $128,000, of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $125,000. The note is due on February 22, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. As the note is not convertible until 180 days following issuance, no derivative liability was recognized as of March 31, 2021. u) On March 18, 2021, the Company entered into a convertible promissory note with a non-related party for $200,000. The note is due on March 17, 2022 and bears interest on the unpaid principal balance at a rate of 5% per annum. The note may be converted by the lender at any time within 6-months of the date of issuance into shares of Company’s common stock at a conversion price equal to $0.10. v) On March 26, 2021, the Company entered into a convertible promissory note with a non-related party for $83,000, of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $80,000. The note is due on March 24, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. As the note is not convertible until 180 days following issuance, no derivative liability was recognized as of March 31, 2021. |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Summary of changes in the fair value of the Company's Level 3 financial liabilities | March 31, 2021 December 31, Balance at the beginning of period $ 11,429,043 $ 10,517,873 Original discount limited to proceeds of convertible notes — 166,000 Fair value of derivative liabilities in excess of notes proceeds received — 1,128,966 Settlement of derivative instruments (316,401 ) (4,876,287 ) Change in fair value of embedded conversion option 650,913 4,492,491 Balance at the end of the period $ 11,763,555 $ 11,429,043 |
Assumptions used in the calculations for fair value of derivative liabilities | Expected Volatility Risk-free Interest Rate Expected Dividend Yield Expected Life (in years) At March 31, 2021 116 - 262 % 0.07-0.92 % 0 % 0.66-4.41 |
STOCKHOLDERS' DEFICIT AND STO_2
STOCKHOLDERS' DEFICIT AND STOCK OPTIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of options issued and outstanding | Number of options Weighted average exercise price Balance, December 31, 2020 200,000 2.00 Granted — — Expired — — Settled — — Balance, March 31, 2021 200,000 2.00 |
Stock options outstanding | Date Number Number Exercise Weighted Average Remaining Contractual Expiration Proceeds to Company if Issued Outstanding Exercisable Price $ Life (Years) Date Exercised 01/26/2017 200,000 200,000 2.00 0.82 01/26/2022 400,000 200,000 200,000 $ 400,000 |
WARRANTS (Tables)
WARRANTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Guarantees and Product Warranties [Abstract] | |
Summary of the continuity of share purchase warrants | Number of Weighted average exercise price Balance, December 31, 2020 457,690,272 0.000179 Adjustment to warrants outstanding — — Granted — — Settled — — Balance, March 31, 2021 457,690,272 0.000179 |
Share purchase warrants outstanding | Date Number Number Exercise Weighted Average Remaining Contractual Expiration Proceeds to Company if Issued Outstanding Exercisable Price $ Life (Years) Date Exercised 11/28/2018 142,857,143 * 142,857,143 * 0.00035 * 0.66 11/28/2021 $ 50,000 12/3/2018 500,000 500,000 0.10 2.68 12/3/2023 50,000 2/14/2019 152,899,585 * 152,899,585 * 0.00035 * 2.88 2/14/2024 50,267 3/13/2019 107,142,857 * 107,142,857 * 0.00035 * 2.95 3/13/2024 37,500 9/11/2019 53,571,429 * 53,571,429 * 0.00056 * 3.45 9/11/2024 30,000 8/26/2020 10,000,000 10,000,000 0.06000 4.41 8/26/2025 600,000 457,690,272 457,690,272 $ 817,767 *The number of warrants outstanding and exercisable is variable based on adjustments to the exercise price of the warrant due to dilutive issuances. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended |
Mar. 31, 2021shares | |
Accounting Policies [Abstract] | |
Antidilutive securities excluded from calculation of earnings per share | 556,953,901 |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (36,024,876) | $ (34,913,854) |
Working capital deficit | $ (14,804,305) |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and equipment (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Abstract] | |||
Leasehold improvements | $ 18,840 | $ 18,840 | |
Machinery and leased equipment | 365,483 | 365,483 | |
Machinery and equipment not yet in services | 32,580 | 32,580 | |
Office equipment and furniture | 39,357 | 39,357 | |
Website | 2,760 | 2,760 | |
Total Property and equipment | 459,020 | 459,020 | |
Less: Accumulated Depreciation | (112,304) | (100,301) | |
Property and equipment, net | $ 346,716 | $ 358,719 | $ 358,719 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 12,000 | $ 6,153 |
INTANGIBLE ASSETS - Components
INTANGIBLE ASSETS - Components of intangible assets (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Patents | $ 4,505,489 | $ 4,505,489 |
Technology rights | 200,000 | 200,000 |
Intangible, at cost | 4,705,489 | 4,705,489 |
Less: Accumulated amortization | (1,381,587) | (1,305,465) |
Net Carrying Amount | $ 3,323,902 | $ 3,400,024 |
INTANGIBLE ASSETS - Estimated f
INTANGIBLE ASSETS - Estimated future amortization expense of intangible assets (Details) | Mar. 31, 2021USD ($) |
Intangible Assets - Estimated Future Amortization Expense Of Intangible Assets | |
For year ending December 31, 2021 | $ 228,366 |
For year ending December 31, 2022 | 304,488 |
For year ending December 31, 2023 | 304,488 |
For year ending December 31, 2024 | 304,488 |
For year ending December 31, 2025 | 304,488 |
Thereafter | 1,877,584 |
Total | $ 3,323,902 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Intangible Assets | ||
Amortization expense | $ 76,122 | $ 76,868 |
LEASES - Components of lease ex
LEASES - Components of lease expenses, supplemental balance sheet, cashflow and other information related to leases (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Components of lease expenses | ||
Total operating lease cost | $ 13,500 | |
Supplemental cashflow and other information | ||
Lease payments | 38,750 | 17,940 |
Supplemental balance sheet information | ||
Cost | 123,614 | |
Accumulated amortization | (13,378) | |
Net carrying value | $ 110,236 |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments related to lease obligations (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 40,500 | |
2022 | 54,000 | |
2023 | 45,000 | |
Total minimum lease payments | 139,500 | |
Less: amount of lease payments representing effects of discounting | (25,394) | |
Present value of future minimum lease payments | 114,106 | |
Less: current obligations under leases | (36,607) | |
Lease liabilities, net of current portion | $ 77,499 | $ 83,420 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Abstract] | |
Operating lease expense recognized | $ 13,500 |
NOTES PAYABLE - Notes payable (
NOTES PAYABLE - Notes payable (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Notes Payable (4) | |
Original amount | $ 25,000 |
Issuance date | May 8, 2017 |
Maturity date | Jun. 30, 2018 |
Interest rate | 0.00% |
Balance, beginning | $ 27,500 |
Balance, ending | 27,500 |
Notes Payable (18) | |
Original amount | $ 8,700 |
Issuance date | Nov. 15, 2018 |
Maturity date | Jun. 30, 2019 |
Interest rate | 10.00% |
Balance, beginning | $ 8,700 |
Balance, ending | 8,700 |
Notes Payable (32) | |
Original amount | $ 118,644 |
Issuance date | May 5, 2020 |
Maturity date | May 5, 2021 |
Interest rate | 8.00% |
Balance, beginning | $ 110,644 |
Balance, ending | 110,644 |
Notes Payable (38) | |
Original amount | $ 199,500 |
Issuance date | Oct. 1, 2020 |
Maturity date | Sep. 28, 2021 |
Interest rate | 66.00% |
Balance, beginning | $ 149,573 |
Balance, ending | 95,805 |
Notes Payable (39) | |
Original amount | $ 126,000 |
Issuance date | Nov. 3, 2020 |
Maturity date | Apr. 23, 2021 |
Interest rate | 168.00% |
Balance, beginning | $ 85,050 |
Balance, ending | 21,000 |
Notes Payable (40) | |
Original amount | $ 113,980 |
Issuance date | Nov. 4, 2020 |
Maturity date | Mar. 15, 2021 |
Interest rate | 210.00% |
Balance, beginning | $ 65,988 |
Balance, ending | |
Notes Payable (41) | |
Original amount | $ 177,800 |
Issuance date | Jan. 2, 2021 |
Maturity date | Jul. 12, 2021 |
Interest rate | 116.00% |
Balance, beginning | |
Balance, ending | 115,957 |
Notes Payable (42) | |
Original amount | $ 111,920 |
Issuance date | Mar. 3, 2021 |
Maturity date | May 21, 2021 |
Interest rate | 220.00% |
Balance, beginning | |
Balance, ending | 90,935 |
Notes Payable, Related Party (12) | |
Original amount | $ 30,000 |
Issuance date | Apr. 10, 2018 |
Maturity date | Jan. 15, 2019 |
Interest rate | 3.00% |
Balance, beginning | $ 30,000 |
Balance, ending | 5,000 |
Notes Payable, Related Party (14) | |
Original amount | $ 380,000 |
Issuance date | Jun. 20, 2018 |
Maturity date | Jan. 2, 2020 |
Interest rate | 8.00% |
Balance, beginning | $ 380,000 |
Balance, ending | |
Notes Payable, Related Party (15) | |
Original amount | $ 350,000 |
Issuance date | Jun. 20, 2018 |
Maturity date | Jan. 2, 2020 |
Interest rate | 5.00% |
Balance, beginning | $ 285,214 |
Balance, ending | |
Notes Payable, Related Party (16) | |
Original amount | $ 17,000 |
Issuance date | Jun. 20, 2018 |
Maturity date | Jan. 2, 2020 |
Interest rate | 5.00% |
Balance, beginning | $ 17,000 |
Balance, ending | 17,000 |
Notes Payable, Related Party (18) | |
Original amount | $ 50,000 |
Issuance date | Jul. 27, 2018 |
Maturity date | Nov. 30, 2018 |
Interest rate | 8.00% |
Balance, beginning | $ 50,000 |
Balance, ending | 50,000 |
Notes Payable, Related Party (19) | |
Original amount | $ 5,000 |
Issuance date | Oct. 9, 2018 |
Interest rate | 0.00% |
Balance, beginning | $ 5,000 |
Balance, ending | 5,000 |
Notes Payable, Related Party (20) | |
Original amount | $ 5,000 |
Issuance date | Oct. 19, 2018 |
Interest rate | 0.00% |
Balance, beginning | $ 5,000 |
Balance, ending | 5,000 |
Notes Payable, Related Party (24) | |
Original amount | $ 15,000 |
Issuance date | Aug. 16, 2019 |
Maturity date | Feb. 16, 2020 |
Interest rate | 8.00% |
Balance, beginning | $ 15,000 |
Balance, ending | 15,000 |
Notes Payable, Related Party (26) | |
Original amount | $ 2,000 |
Issuance date | Feb. 11, 2020 |
Interest rate | 0.00% |
Balance, beginning | |
Balance, ending | 2,000 |
Notes Payable, Related Party (27) | |
Original amount | $ 84,034 |
Issuance date | Feb. 16, 2021 |
Interest rate | 5.00% |
Balance, beginning | |
Balance, ending | 84,034 |
Convertible Note Payable (5) | |
Original amount | $ 50,000 |
Issuance date | Dec. 6, 2018 |
Maturity date | Dec. 6, 2019 |
Interest rate | 12.00% |
Balance, beginning | $ 22,777 |
Balance, ending | |
Convertible Note Payable (6) | |
Original amount | $ 65,000 |
Issuance date | Dec. 6, 2018 |
Maturity date | Dec. 6, 2019 |
Interest rate | 12.00% |
Balance, beginning | $ 46 |
Balance, ending | 46 |
Convertible Note Payable (15) | |
Original amount | $ 75,000 |
Issuance date | Mar. 18, 2019 |
Maturity date | Dec. 13, 2019 |
Interest rate | 24.00% |
Balance, beginning | $ 177,795 |
Balance, ending | 107,795 |
Convertible Note Payable (22) | |
Original amount | $ 30,000 |
Issuance date | Mar. 6, 2020 |
Maturity date | Mar. 5, 2021 |
Interest rate | 12.00% |
Balance, beginning | $ 21,662 |
Balance, ending | 36,834 |
Convertible Note Payable (24) | |
Original amount | $ 150,000 |
Issuance date | Apr. 10, 2020 |
Maturity date | Apr. 9, 2021 |
Interest rate | 12.00% |
Balance, beginning | $ 165,000 |
Balance, ending | 90,000 |
Convertible Note Payable (27) | |
Original amount | $ 300,000 |
Issuance date | Aug. 27, 2020 |
Maturity date | Jul. 31, 2021 |
Interest rate | 12.00% |
Balance, beginning | $ 300,000 |
Balance, ending | 280,000 |
Convertible Note Payable (28) | |
Original amount | $ 53,500 |
Issuance date | Sep. 22, 2020 |
Maturity date | Mar. 21, 2022 |
Interest rate | 12.00% |
Balance, beginning | $ 53,500 |
Balance, ending | |
Convertible Note Payable (29) | |
Original amount | $ 87,500 |
Issuance date | Sep. 24, 2020 |
Interest rate | 8.00% |
Balance, beginning | $ 40,000 |
Balance, ending | 15,000 |
Convertible Note Payable (30) | |
Original amount | $ 200,000 |
Issuance date | Oct. 7, 2020 |
Maturity date | Oct. 6, 2021 |
Interest rate | 5.00% |
Balance, beginning | $ 200,000 |
Balance, ending | 200,000 |
Convertible Note Payable (31) | |
Original amount | $ 200,000 |
Issuance date | Oct. 16, 2020 |
Maturity date | Oct. 15, 2021 |
Interest rate | 5.00% |
Balance, beginning | $ 200,000 |
Balance, ending | 200,000 |
Convertible Note Payable (32) | |
Original amount | $ 300,000 |
Issuance date | Nov. 11, 2020 |
Maturity date | Nov. 10, 2021 |
Interest rate | 5.00% |
Balance, beginning | $ 300,000 |
Balance, ending | 300,000 |
Convertible Note Payable (33) | |
Original amount | $ 150,000 |
Issuance date | Dec. 29, 2020 |
Maturity date | Dec. 28, 2021 |
Interest rate | 5.00% |
Balance, beginning | $ 150,000 |
Balance, ending | 150,000 |
Convertible Note Payable (34) | |
Original amount | $ 150,000 |
Issuance date | Jan. 27, 2021 |
Maturity date | Jan. 27, 2022 |
Interest rate | 5.00% |
Balance, beginning | |
Balance, ending | 150,000 |
Convertible Note Payable (35) | |
Original amount | $ 128,000 |
Issuance date | Feb. 22, 2021 |
Maturity date | Feb. 22, 2022 |
Interest rate | 12.00% |
Balance, beginning | |
Balance, ending | 128,000 |
Convertible Note Payable (36) | |
Original amount | $ 200,000 |
Issuance date | Mar. 18, 2021 |
Maturity date | Mar. 18, 2022 |
Interest rate | 5.00% |
Balance, beginning | |
Balance, ending | 200,000 |
Convertible Note Payable (37) | |
Original amount | $ 83,000 |
Issuance date | Mar. 26, 2021 |
Maturity date | Mar. 26, 2022 |
Interest rate | 12.00% |
Balance, beginning | |
Balance, ending | $ 83,000 |
DERIVATIVE LIABILITIES - Summar
DERIVATIVE LIABILITIES - Summary of changes in the fair value of the Company's Level 3 financial liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Notes to Financial Statements | ||
Balance at the beginning of period | $ 11,429,043 | $ 10,517,873 |
Original discount limited to proceeds of convertible notes | 166,000 | |
Fair value of derivative liabilities in excess of notes proceeds received | 1,128,966 | |
Settlement of derivative instruments | (316,401) | (4,876,287) |
Change in fair value of embedded conversion option | 650,913 | 4,492,491 |
Balance at the end of the period | $ 11,763,555 | $ 11,429,043 |
DERIVATIVE LIABILITIES - Assump
DERIVATIVE LIABILITIES - Assumptions used in the calculations for fair value of derivative liabilities (Details) - Derivative liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Expected price volatility, minimum | 116.00% |
Expected price volatility, maximum | 262.00% |
Expected dividend yield | 0.00% |
Expected option life, minimum | 7 months 28 days |
Expected option life, maximum | 4 years 4 months 28 days |
Risk-free interest rate, minimum | 0.07% |
Risk-free interest rate, maximum | 0.92% |
STOCKHOLDERS' DEFICIT AND STO_3
STOCKHOLDERS' DEFICIT AND STOCK OPTIONS - Summary of options issued and outstanding (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Stockholders Deficit And Stock Options - Summary Of Options Issued And Outstanding | |
Number of options, beginning balance | shares | 200,000 |
Number of options, granted | shares | |
Number of options, expired | shares | |
Number of options, settled | shares | |
Number of options, ending balance | shares | 200,000 |
Weighted average exercise price, beginning balance | $ / shares | $ 2 |
Weighted average exercise price, granted | $ / shares | |
Weighted average exercise price, expired | $ / shares | |
Weighted average exercise price, settled | $ / shares | |
Weighted average exercise price, ending balance | $ / shares | $ 2 |
STOCKHOLDERS' DEFICIT AND STO_4
STOCKHOLDERS' DEFICIT AND STOCK OPTIONS - Stock options outstanding (Details) - Options issued and outstanding | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Number outstanding | 200,000 |
Number exercisable | 200,000 |
Exercise price | $ / shares | $ 2 |
Weighted average remaining contractual life | 9 months 26 days |
Expiration date | Jan. 26, 2022 |
Proceeds to Company if exercised | $ | $ 400,000 |
WARRANTS - Summary of the conti
WARRANTS - Summary of the continuity of share purchase warrants (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Guarantees and Product Warranties [Abstract] | |
Number of warrants, beginning balance | shares | 457,690,272 |
Number of warrants, adjustments to warrants outstanding | shares | |
Number of warrants, granted | shares | |
Number of warrants, settled | shares | |
Number of warrants, ending balance | shares | 457,690,272 |
Weighted average exercise price, beginning balance | $ / shares | $ 0.000179 |
Weighted average exercise price, adjustments to warrants outstanding | $ / shares | |
Weighted average exercise price, granted | $ / shares | |
Weighted average exercise price, settled | $ / shares | |
Weighted average exercise price, ending balance | $ / shares | $ 0.000179 |
WARRANTS - Share purchase warra
WARRANTS - Share purchase warrants outstanding (Details) - Share purchase warrants outstanding - USD ($) | Aug. 27, 2020 | Sep. 12, 2019 | Mar. 14, 2019 | Feb. 15, 2019 | Dec. 04, 2018 | Nov. 29, 2018 | Mar. 31, 2021 |
Number outstanding | 10,000,000 | 53,571,429 | 107,142,857 | 152,899,585 | 500,000 | 142,857,143 | 457,690,272 |
Number exercisable | 10,000,000 | 53,571,429 | 107,142,857 | 152,899,585 | 500,000 | 142,857,143 | 457,690,272 |
Exercise price | $ 0.06 | $ 0.00056 | $ 0.00035 | $ 0.00035 | $ 0.10 | $ 0.00035 | |
Weighted average remaining contractual life | 4 years 4 months 28 days | 3 years 5 months 12 days | 2 years 11 months 12 days | 2 years 10 months 17 days | 2 years 8 months 5 days | 7 months 28 days | |
Expiration date | Aug. 26, 2025 | Sep. 11, 2024 | Mar. 13, 2024 | Feb. 14, 2024 | Dec. 3, 2023 | Nov. 28, 2021 | |
Proceeds to Company if exercised | $ 600,000 | $ 30,000 | $ 37,500 | $ 50,267 | $ 50,000 | $ 50,000 | $ 817,767 |