Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 22, 2023 | |
Details | ||
Registrant CIK | 0001352952 | |
Fiscal Year End | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-52635 | |
Entity Registrant Name | CFN ENTERPRISES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-1559541 | |
Entity Address, Address Line One | 600 E. 8TH STREET | |
Entity Address, City or Town | WHITEFISH | |
Entity Address, Country | MT | |
Entity Address, Postal Zip Code | 59937 | |
Country Region | 833 | |
City Area Code | 420 | |
Local Phone Number | 2636 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,090,664 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 18,636 | $ 12,474 |
Restricted cash | 20,203 | 20,128 |
Accounts receivable, net | 20,110 | 28,245 |
Total current assets | 58,949 | 60,847 |
Property and equipment, net | 50,738 | 53,570 |
Right of use asset | 99,406 | 110,321 |
Other assets | 54,176 | 46,766 |
Assets held for sale | 599,047 | 599,047 |
Total assets | 862,316 | 870,551 |
Current liabilities | ||
Accounts payable | 2,317,905 | 2,357,614 |
Accrued liabilities | 2,662,761 | 2,343,654 |
Payments made in advance of securities date | 0 | 217,500 |
Due to related party | 499,640 | 503,259 |
Deferred revenue | 13,267 | 10,978 |
Current portion of notes payable | 3,086,580 | 3,088,250 |
Current portion of right of use liability | 262,727 | 262,727 |
Current liabilities of discontinued operations | 79,823 | 79,823 |
Total current liabilities | 8,922,703 | 8,863,805 |
Right of use liability | 147,040 | 200,758 |
Long-term note payable, net of current portion and discounts | 976,144 | 978,337 |
Total liabilities | 10,045,887 | 10,042,900 |
Stockholders' deficit | ||
Common shares | 40,090 | 37,690 |
Additional paid-in capital | 50,383,656 | 49,786,056 |
Accumulated deficit | (59,607,321) | (58,996,099) |
Total stockholders' deficit | (9,183,571) | (9,172,349) |
Total liabilities and stockholders' deficit | 862,316 | 870,551 |
Series A Preferred Stock | ||
Stockholders' deficit | ||
Preferred shares | 1 | 1 |
Total stockholders' deficit | 1 | 1 |
Series B Preferred Stock | ||
Stockholders' deficit | ||
Preferred shares | 3 | 3 |
Total stockholders' deficit | $ 3 | $ 3 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
Preferred Stock, Shares Authorized | 2,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 40,094,664 | 37,609,664 |
Common Stock, Shares, Outstanding | 40,094,664 | 37,609,664 |
Series A Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 500 | 500 |
Preferred Stock, Shares Issued | 500 | 500 |
Preferred Stock, Shares Outstanding | 500 | 500 |
Series B Preferred Stock | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 3,000 | 3,000 |
Preferred Stock, Shares Issued | 3,000 | 3,000 |
Preferred Stock, Shares Outstanding | 3,000 | 3,000 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $ 112,957 | $ 1,519,291 |
Cost of revenue | 176,191 | 2,283,683 |
Gross loss | (63,233) | (764,392) |
Operating expenses | ||
Selling, general and administrative | 422,013 | 491,498 |
Total operating expenses | 422,013 | 491,498 |
Loss from operations | (485,247) | (1,255,890) |
Other income (expense) | ||
Interest expense | (66,051) | (46,316) |
Interest income | 76 | 2 |
Total other income (expense), net | (65,976) | (46,314) |
Net loss | (551,222) | (1,302,204) |
Preferred stock interest | 60,000 | 60,000 |
Net loss available to common shareholders | (611,222) | (1,362,204) |
Net loss attributable to non-controlling interest | 0 | 23 |
Net loss available to CFN Enterprises common shareholders | $ (611,222) | $ (1,362,181) |
Net loss per common share - basic and diluted | $ (0.02) | $ (0.04) |
Basic and diluted | 38,170,664 | 31,679,481 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest | Total | Series A Preferred Stock | Series B Preferred Stock |
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2021 | $ 31,679 | $ 46,399,451 | $ (48,833,880) | $ 7,003 | $ (2,395,743) | $ 1 | $ 3 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 31,679,481 | 500 | 3,000 | ||||
Preferred stock interest | $ 0 | 0 | 60,000 | 0 | 60,000 | $ 0 | $ 0 |
Payment of CSIS debt by shareholder | 0 | 415,875 | 415,875 | 0 | 0 | ||
Net Income (Loss) Attributable to Parent | 0 | 0 | (1,302,181) | (23) | (1,302,204) | 0 | 0 |
Equity, Attributable to Parent, Ending Balance at Mar. 31, 2022 | $ 31,679 | 46,815,326 | (50,196,061) | 6,980 | (3,342,072) | $ 1 | $ 3 |
Shares, Outstanding, Ending Balance at Mar. 31, 2022 | 31,679,481 | 500 | 3,000 | ||||
Preferred stock interest | $ 0 | 0 | (60,000) | 0 | (60,000) | $ 0 | $ 0 |
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2022 | $ 37,690 | 49,786,056 | (58,996,099) | 0 | (9,172,349) | $ 1 | $ 3 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | 37,690,664 | 500 | 3,000 | ||||
Preferred stock interest | $ 0 | 0 | 60,000 | 0 | 60,000 | $ 0 | $ 0 |
Stock Issued During Period, Value, New Issues | $ 2,400 | 597,600 | 0 | 0 | 600,000 | 0 | 0 |
Stock Issued During Period, Shares, New Issues | 2,400,000 | ||||||
Net Income (Loss) Attributable to Parent | $ 0 | 0 | (551,222) | 0 | (551,222) | 0 | 0 |
Equity, Attributable to Parent, Ending Balance at Mar. 31, 2023 | $ 40,090 | 50,383,656 | (59,607,321) | 0 | (9,183,571) | $ 1 | $ 3 |
Shares, Outstanding, Ending Balance at Mar. 31, 2023 | 40,090,664 | 500 | 3,000 | ||||
Preferred stock interest | $ 0 | $ 0 | $ (60,000) | $ 0 | $ (60,000) | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (551,222) | $ (1,302,204) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 2,832 | 381,200 |
Gain (Loss) on Disposition of Property Plant Equipment | 10,915 | 48,752 |
Amortization of right of use asset | 0 | 1,479 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 8,135 | (222,582) |
Inventory | 0 | 61,248 |
Prepaid expenses and other assets | (7,410) | (8,500) |
Accounts payable and accrued expenses | 251,898 | 1,090,563 |
Deferred revenue | 2,289 | (16,946) |
Payments made in advance of securities date | (250,000) | 0 |
Right of use liability | (53,718) | (71,106) |
Net cash used in operating activities | (586,282) | (38,096) |
Cash flows from investing activities | ||
Purchase of property and equipment, net | 0 | (14,054) |
Net cash used in investing activities | 0 | (14,054) |
Cash flows from financing activities | ||
Repayments to related parties | (3,619) | 0 |
Repayments of Notes Payable | (3,863) | (7,603) |
Proceeds from sale of common stock | 600,000 | 0 |
Net cash provided by (used in) financing activities | 592,518 | (7,603) |
Net change in cash and cash equivalents | 6,237 | (59,753) |
Cash and restricted cash at beginning of period | 32,602 | 190,029 |
Cash and restricted cash at end of period | 38,839 | 130,276 |
Cash at beginning of period | 12,474 | 170,015 |
Restricted cash at beginning of period | 20,128 | 20,014 |
Cash and restricted cash at beginning of period | 32,602 | 190,029 |
Cash at end of period | 18,636 | 110,260 |
Restricted cash at end of period | 20,203 | 20,016 |
Cash and restricted cash at end of period | 38,839 | 130,276 |
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities | ||
Accrual of preferred stock interest | $ 60,000 | $ 60,000 |
NOTE 1_ ORGANIZATION AND BASIS
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION Organization CFN Enterprises Inc., formerly known as Accelerize Inc., or the Company, is a Delaware corporation incorporated on November 22, 2005. Effective October 22, 2019, the Company filed a certificate of amendment to its certificate of incorporation with the Secretary of State of the State of Delaware to change its corporate name to CFN Enterprises Inc. On May 15, 2019, the Company entered into an asset purchase agreement or the Emerging Growth Agreement with Emerging Growth, LLC, or the Seller or Emerging Growth, pursuant to which the Company acquired certain assets from the Seller related to its sponsored content and marketing business for a purchase price consideration consisting of $420,000 in cash, 30,000,000 shares of the Company’s common stock, and 3,000 shares of Series B preferred stock with a total stated value of $3,000,000 which bears interest at 6% per annum and is convertible into the Company’s common stock at a conversion price to be mutually agreed in the future, without voting rights or a liquidation preference except with respect to default interest. The securities were issued pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. The closing of the purchase of the assets pursuant to the Emerging Growth Agreement occurred on June 20, 2019. The Company’s current operations consist of the sponsored content and marketing business, or the CFN Business, from the assets acquired pursuant to the Emerging Growth Agreement. On January 22, 2021, the Company invested $35,000 in a new joint venture focused on sponsored content and marketing called East West Asset Management or East West. East West was formed as a Limited Liability Company in the State of Nevada on November 13, 2020. CFN owns 50% of the entity and one of its officers holds the title of Member Manager in East West. The Company has concluded that East West is a variable interest entity in accordance with applicable accounting standards and guidance. As such, the accounts and results of East West have been included in the Company’s condensed consolidated financial statements. On August 23, 2021, the Company entered into securities purchase agreements with CNP Operating, LLC, a Colorado limited liability company, or CNP Operating, and the owners of all of the equity interests of CNP Operating, or the Owners, whereby the Company acquired 100% of CNP Operating from the Owners in exchange for an aggregate of 23.6 million shares of the Company’s common stock. The securities were issued pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. On August 25, 2021 the transaction was closed and CNP Operating became a wholly owned subsidiary of the Company. CNP Operating is a cannabidiol manufacturer. In the fourth quarter of 2022 and the first quarter of 2023, the Company took steps to wind down the operations of CNP Operating and focus on the CFN Business. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis which implies the Company will continue to meet its obligations for the next 12 months as of the date these financial statements are issued. The Company had a working capital deficit of $8,863,754 and an accumulated deficit of $59,607,321 as of March 31, 2023. The Company also had a net loss of $551,222 for the three months ended March 31, 2023. Management’s plan to continue as a going concern includes raising capital in the form of debt or equity, growing the CFN Business, managing and reducing operating and overhead costs and continuing to pursue strategic transactions and opportunities including launching an e-commerce network focused on the sale of general wellness cannabidiol, or CBD, products. These matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Basis of Presentation and Consolidation The accompanying consolidated financial statements include the results of operations of the Company and its subsidiaries CNP Operating, CFN Real Estate, LLC, a Delaware limited liability company, CFN Real Estate II, LLC, a Delaware limited liability company, CNP of Wyoming, LLC and East West. All intercompany accounts and transactions between the Company and its subsidiaries have been eliminated in consolidation. During the period, the Company concluded that East West is a variable interest entity in accordance with applicable accounting standards and guidance. As such, the accounts and results of East West have been included in the Company’s consolidated financial statements. These unaudited condensed financial statements reflect all adjustments including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. These unaudited condensed consolidated financial statements and notes included herein should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2022 and 2021, which are included in the Company’s December 31, 2022 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on April 17, 2023. The Company assumes that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation of these may be determined in that context. The results of operations for the period ended March 31, 2023 are not necessarily indicative of results for the entire year ending December 31, 2023. |
NOTE 2_ SUMMARY OF SIGNIFICANT
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions about collection of accounts receivable, useful life of fixed assets and intangible assets, borrowing rate considered for operating lease right-of-use asset and related operating lease liability, and assumptions used in Black-Scholes valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate. Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company has restricted cash as a result of its corporate card program through its bank, which requires collateral placed in a money market account. At March 31, 2023, the Company had a restricted cash balance of $20,203 included as a component of total cash and restricted cash as presented on the accompanying unaudited condensed consolidated statement of cash flows. Accounts Receivable The Company’s account receivables are due from customers relating to contracts to provide investor relation services. Collateral is currently not required. The Company also maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make payments. The Company periodically reviews these estimated allowances, including an analysis of the customers’ payment history and creditworthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to make payments as well as historical collection trends for its customers as a whole. Based on this review, the Company specifically reserves for those accounts deemed uncollectible or likely to become uncollectible. When receivables are determined to be uncollectible, principal amounts of such receivables outstanding are deducted from the allowance. The allowance for doubtful accounts as of March 31, 2023 and December 31, 2022 amounted to $453,952 and $470,532, respectively. Inventory The Company’s inventory consists of finished goods acquired for its e-commerce network business it is currently in the process of launching. The inventory is valued at the lower of cost (first-in, first-out) or estimated net realizable value. As of March 31, 2023, the Company valued the inventory at $0. Concentration of Credit Risks The Company is subject to concentrations of credit risk primarily from cash and cash equivalents and accounts receivable. The Company’s cash and restricted cash accounts are held at a financial institution and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. From time-to-time, the Company’s bank balances exceed the FDIC insurance limit. To reduce its risk associated with the failure of such financial institutions, the Company periodically evaluates the credit quality of the financial institution in which it holds deposits. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification, or ASC, 606, the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. The Company accounts for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. Subsequent to the closing of the Emerging Growth Agreement on June 20, 2019, the Company’s revenue is generated from the sale of promotional service packages to its customers ranging from 3 to 6 months. The Company offers different packages tailored to the type and stage of the potential customer, such as public companies looking to increase their shareholder base, as well as private companies potentially looking to go public and attract capital and publicity. The services provided by the Company include advertising, publishing of interviews and articles across its network and featuring of client content on its newsletters and social media. The packages all have fixed prices that are billed monthly over the terms of the agreement in even amounts. The Company recognizes revenue for its performance obligation associated with its contracts with customers over time as work is performed, which is deemed to occur evenly throughout the duration of the contract. This also reflects the pattern in which costs are incurred on performing the contracts. To the extent revenue recognized on contracts at each period end exceeds collections, the amounts are reflected as accounts receivable. To the extent collections on contracts at each period end exceeds revenue recognized, the amounts are reflected as deferred revenue. The Company accounts for its CNP Operating revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. Shipping and Handling Fees and Costs Amounts billed to customers for shipping and handling fees are presented in revenue. Costs incurred for shipping and handling are included in cost of revenue. Fair Value of Financial Instruments The Company accounts for assets and liabilities measured at fair value on a recurring basis in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue and due to related party approximate their fair value due to the short-term maturity of these items. The Company’s notes payable approximate their fair value due to the market rate of interest on the notes. Advertising The Company expenses advertising costs as incurred. Advertising expenses for the three months ended March 31, 2023 and 2022 amounted to $12,614 and $11,214, respectively. Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized, but no less than quarterly. For interim periods, the Company uses the effective income tax rate method resulting in zero income tax for the three months ended March 31, 2023 and 2022. Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of five years. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. Long-Lived Assets In accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). As of March 31, 2023, the Company had no outstanding stock options, 988,500 outstanding warrants and 3,500 shares of preferred stock which were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive. As of March 31, 2022, the Company had 210,667 outstanding stock options and 311,112 outstanding warrants which were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive. As a result, the basic and diluted earnings per share are the same for each of the periods presented. Share-Based Payment The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation, or ASC 718. Under the fair value recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. The Company has elected to use the Black-Scholes option-pricing model to estimate the fair value of its options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Common Stock Awards The Company has granted common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded on the consolidated statement of comprehensive loss in the same manner and charged to the same account as if such settlements had been made in cash. Warrants In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants are recorded at fair value as expense over the requisite service period or at the date of issuance, if there is not a service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 6, Stockholders’ Deficit. Leases The Company adopted Accounting Standards Update No. 2016-02, Leases (“Topic 842”) using the modified retrospective method. This accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. Upon adoption, right-of-use (ROU) assets and lease liabilities for operating leases were recorded in the amount of $181,134 and $181,134, respectively. The Company elected the practical expedient method permitted under the transition guidance, which allows a carryforward of historical lease classification, the assessment on whether a contract was or contains a lease, and the initial direct costs for any leases that existed prior to July 1, 2019. The Company also elected to recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement and leases with an initial term of 12 months or less are not included in lease liabilities or ROU asset. As most leases do not provide an implicit rate, a rate which approximates the Company’s incremental borrowing rate is used, based on the information available at commencement date, in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred. Lease agreements generally do not contain residual value guarantees or restrictive covenants. Over the lease term, the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized in a manner that results in straight-line expense recognition. At December 31, 2022, management determined that certain events and circumstances occurred that indicated that the net book value of CNP’s ROU assets may not be recoverable. As such, the Company recorded an impairment charge of $339,768. |
NOTE 3_ PROPERTY AND EQUIPMENT
NOTE 3: PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 3: PROPERTY AND EQUIPMENT | NOTE 3: PROPERTY AND EQUIPMENT The Company’s property and equipment relating to continuing operations consisted of the following: March 31, December 31, 2023 2022 Machinery & equipment $ 50,000 $ 50,000 Furniture and equipment and leasehold improvements 14,772 14,772 64,772 64,772 Less: Accumulated depreciation (14,034) (11,202) $ 50,738 $ 53,570 At December 31, 2022, management determined that certain events and circumstances occurred that indicated that the net book value of CNP’s long-lived assets may not be recoverable. As such, the Company recorded an impairment charge of $3,276,193 to record the estimated residual value of the property and equipment, which was determined to be $50,000. Depreciation expense for the three months ended March 31, 2023 and 2022 amounted to $2,832 and $381,200, respectively. |
NOTE 4_ NOTES PAYABLE
NOTE 4: NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 4: NOTES PAYABLE | NOTE 4: NOTES PAYABLE On September 10, 2019, the Company entered into a promissory note payable whereby the Company borrowed $500,000 bearing interest at 8% per annum. Interest on the note is payable quarterly on the first business day of December, March, June and September commencing December 1, 2019. In May 2021, the Company and the holder of the promissory note reached an agreement to extend the maturity date of the note from September 30, 2022 to September 30, 2024. In connection with the extension, the Company issued 160,000 shares of its common stock to the noteholder in lieu of $40,000 of interest accrued and accruing on the promissory note through December 31, 2022. In 2022, the maturity date was extended to 2024. In connection with the promissory note on September 10, 2019, the Company issued warrants to purchase 33,333 shares of the Company’s common stock at an exercise price of $1.50 per share. The warrants were exercised on June 30, 2021 and the Company received $50,000. The note was discounted by $17,624 allocated from the valuation of the warrants issued. The discount recorded on the note is being amortized as interest expense through the maturity date. As of March 31, 2023, the net book value of the promissory note amounted to $500,000, including the principal amount of $50,000 which was fully amortized. On October 28, 2019, the Company’s subsidiary CNP Operating entered into a promissory note payable with Complete Business Solutions Group, Inc (“CBSG”) whereby the Company borrowed $3,050,000. The outstanding balance of the note was $2,218,000 at December 31, 2022. At December 31, 2022, the Company reversed $1,312,080 previously recorded to additional paid-in capital in 2022 to reflect the outstanding principal of $2,218,000. The note is currently in default and personally guaranteed by Anthony Zingarelli. On September 30, 2019, the Company’s subsidiary CNP Operating entered into a promissory note payable with Eagle Six Consultants, Inc. (“Eagle”) whereby the Company borrowed $550,000 bearing interest at 16% per annum. The outstanding balance of the note was $302,489 at December 31, 2022. The note is currently in default. On May 6, 2020, the Company entered into a promissory note, or the Note, with Pacific Western Bank, evidencing an unsecured loan, or the Loan, in the amount of $263,000 made to the Company under the Paycheck Protection Program, or the PPP. The interest rate on the Loan is 1.0% per annum. The Note matured on May 6, 2022. The Company has applied for full forgiveness of the amounts due under the Note and received forgiveness during the year ended 2021. On June 24, 2020, the Company entered into a Loan Authorization and Agreement with the SBA under which the Company borrowed $150,000 and issued to the SBA a note and security agreement for the amount borrowed. Outstanding borrowings accrue interest at a rate of 3.75% per annum, and installment payments, including principal and interest, of $731 are due monthly and begin 12 months from the date of the loan agreement. The balance of any remaining principal and interest is due 30 years from the date of the loan agreement. As collateral for the borrowing, the Company granted the SBA a security interest in substantially all assets of the Company. On February 25, 2021, the Company entered into a secondary promissory note, or the Second PPP Note, with Pacific Western Bank, evidencing an unsecured loan, or the Second Loan, in the amount of $263,000 made to the Company under the PPP. The interest rate on the Loan is 1.0% per annum. The Note matures on May 6, 2022. The Company applied for full forgiveness of the amounts due under the Note and received forgiveness in February 2022 therefore the company has recorded the forgiveness as of December 31, 2021. On May 12, 2021, the Company’s subsidiary CNP Operating restructured the CSBG note payable of $2,957,000, the Eagle #1 note payable of $550,000 and the Eagle #2 note payable of $300,000 by entering into a payment and indemnification agreement with the receivers/trustee of CBSG and Eagle. The receiver has agreed that the balance of the outstanding amounts will be paid over the course of 24 months in equal payments of $158,625. Further, the Company shall pay $20,000 per month toward the balance and Anthony Zingarelli (“Zingarelli”) and Colorado Sky Industrial Supply LLC (“CSIS”), agree to personally pay the sum of $138,625 per month. Zingarelli is the only member of CNP Operating that signed a personal guarantee on the loans and Zingarelli is the sole member of CSIS. Zingarelli and CSIS has agreed to indemnify and hold the Company harmless from any and all losses, liabilities and claims. If a loss is incurred by the Company with respect to any claims, Zingarelli shall reimburse the Company for the amount of any such loss. The Company has recorded the Zingarelli payments during the period as contributions to additional paid in capital through December 31, 2021. This note is currently in default. On November 19, 2020, the Company’s subsidiary CNP Operating purchased equipment for $58,095 which was financed at zero interest rate. The monthly payments of $968 will be made for the next 60 months and mature on November 19, 2025. Imputed interest was not material. The outstanding balance of the note was $34,892 at December 31, 2022. In 2022, CNP purchased equipment for $55,016 which was financed at zero interest rate with the same lender with similar terms. The outstanding balance of the note was $48,513 at December 31, 2022, and was fully repaid in 2023. On October 19, 2021, the Company borrowed $250,000 from a lender and issued a promissory note for the repayment of the amount borrowed. The promissory note is unsecured, has a maturity date of December 31, 2024 and all principal is due upon maturity. The amount borrowed accrues interest at 12% per annum and accrued interest is payable monthly commencing on December 1, 2021. The promissory note contains customary events of default permitting acceleration of repayment for nonpayment of amounts due, a bankruptcy related proceeding, breach of representations or covenants, sale of substantially all assets, and change of control. On April 8, 2022, the Company entered into two promissory notes for aggregate proceeds of $676,000. The promissory note is unsecured, has a maturity date of April 30, 2024 and all principal is due upon maturity. The notes bear interest at 18% per annum and accrued interest is payable monthly commencing on August 1, 2022. In connection with the notes, the Company granted 676,000 warrants to the lenders with an exercise price of $1.00 per share. On October 4, 2022, the Company converted the entire $676,000 in principal and $50,700 in accrued interest on its convertible notes into an aggregate of 2,906,800 shares of common stock. On May 11, 2022, the Company’s subsidiary, CFN Real Estate II, LLC, entered into a promissory note with a lender for the repayment of $500,000 in connection with the $500,000 refinancing of the Company’s property located in Wray, Colorado. The company received the proceeds from the refinancing on May 16, 2022. Accrued interest at the rate of 12% is payable monthly commencing on June 15, 2022, and the principal of the promissory note is payable upon maturity on June 15, 2024. The lender received a security interest in the property and equipment contained therein as collateral for the promissory note. The promissory note contains customary events of default and other conditions. Future scheduled maturities of long-term debt are as follows: March 31, 2023 2023 3,086,580 2024 793,585 2025 43,585 2026 27,263 2027 12,507 Thereafter 99,203 4,062,724 The aggregate current portion of long-term debt as of March 31, 2023 amounted is $3,086,580, which represents the contractual principal payments due in the next 12 months period as well as any notes in default. |
NOTE 5_ STOCKHOLDERS' DEFICIT
NOTE 5: STOCKHOLDERS' DEFICIT | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 5: STOCKHOLDERS' DEFICIT | NOTE 5: STOCKHOLDERS’ DEFICIT Common Stock On December 6, 2021, the Company effected a reverse split of its outstanding common stock in the ratio of 1-for-15. In January 2023, the Company issued 2,400,000 shares of common stock at a purchase price of $0.25 per share for $600,000 in gross proceeds. The shares were issued pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. As of March 31, 2023 and December 31, 2022, there was $0 and $217,500, respectively, in payments made in advance of securities date. Preferred Stock The Company is authorized to issue 2,000,000 shares of preferred stock with a par value of $0.001 per share, of which 500 have been authorized as Series A Preferred Stock and 3,000 have been authorized as Series B Preferred Stock. For the three months ending March 31, 2023 and 2022 , the Company incurred $60,000 and $60,000, respectively, of interest from the outstanding preferred stock. Warrants The following summarizes the Company’s warrant activity for the three months ended March 31, 2023: Weighted-Average Weighted- Remaining Average Contractual Life Warrants Exercise Price (Years) Outstanding at December 31, 2022 988,500 $ 2.25 2.39 Granted - Forfeited - Outstanding at March 31, 2023 988,500 $ 0.02 2.14 Vested and expected to vest at March 31, 2023 988,500 $ 2.25 2.14 Exercisable at March 31, 2023 988,500 $ 2.25 2.14 As of March 31, 2023, all outstanding warrants were fully vested and there was no remaining unrecorded compensation expense. Options The Company had a Stock Option Plan, or the Plan, under which the total number of shares of capital stock of the Company that may be subject to options under the Plan was 1,500,000 shares of Common Stock from either authorized but unissued shares or treasury shares. The Plan expired on December 14, 2016. As of March 31, 2023, there were no outstanding options. |
NOTE 6_ LEASES
NOTE 6: LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 6: LEASES | NOTE 6: LEASES On June 20, 2019, the Company entered into a Lease Agreement with Emerging Growth for the lease of office space in Whitefish, Montana, for a period of one year at a rate of $1,500 per month. On August 5, 2020, the Company entered into a lease agreement with Emerging Growth for additional office space in Whitefish, Montana, replacing its previous lease from June 20, 2019. The term of the lease commenced on September 1, 2020 for a period of one year at a rate of $4,500 per month. The lease contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase. Management has elected a policy to exclude leases with an initial term of 12 months or less from the balance sheet presentation required under ASC 842. As a result, the office lease has been excluded from balance sheet presentation as it has an original term of 12 months or less. On March 30, 2021, the Company entered into a new lease with Emerging Growth, which took the place of the old lease effective April 1, 2021. The lease provides for payments of $4,500 per month and has a term of three years and contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase. On June 4, 2019, the Company’s subsidiary CNP Operating entered into a Lease Agreement with Blair Investments, LLC for the lease of office space in Centennial Colorado, for a period of 3 year at a rate of $10,521 per month. On September 26, 2019, this agreement was terminated and replaced with a new agreement starting October 1, 2019 and expiring on June 30, 2023. The agreement is personally guaranteed by Anthony Zingarelli. On October 26, 2020 the Company’s subsidiary CNP Operating entered into an amendment to the previous agreement to extend the lease to June 30, 2024, adjust the monthly rent schedule, the landlord agreed to install additional HVAC equipment and the Company agreed to reimburse the landlord $40,000 over a 4-year period with a monthly payment amount of $835. On December 9, 2021, CFN Real Estate LLC, a Delaware limited liability company, and wholly-owned subsidiary of the Company, entered into a Lease Agreement (with Option to Purchase), or the Lease, with H2S2 LLC, a Colorado limited liability company, for property in Eaton, Colorado, consisting of 9.53 acres of agricultural land zoned with use for special review for hemp processing and storage, an 8,500 square foot C1D1 rated steel building, triple tunnel green houses with a total of 8,712 square feet, a shop building consisting of 3,825 square feet and a 2,280 square foot residence. The Lease has an eleven month term and contains an option to purchase the premises, each terminating on November 30, 2022. The total monthly rent under the lease during the term is an aggregate of $354,000, consisting of a $14,000 monthly lease payment, and an aggregate of $200,000 in non-refundable payments towards the option. The total purchase price for the premises under the option is $1.2 million, inclusive of the $200,000 in payments made during the term of the lease. If the option is exercised, the lease contains a 30-day automatic extension of the term at $14,000. On August 12, 2022, CFN Real Estate LLC, entered into a First Amendment to Lease Agreement, or the Amendment, to the Lease, with H2S2 LLC, for property in Eaton, Colorado. The Amendment amends the Lease to (i) provide for payment of the final non-refundable deposit in the amount of $34,000 on or before the earlier of November 30, 2022 or exercise of the option to purchase, (ii) provide for payment of the July 2022 monthly base rent in the amount of $14,000 on or before November 30, 2022, (iii) amend the payment date for monthly base rent from the 1st to the 15th of each month, (iv) to delete the seller financing provisions of the lease, and (v) to provide for an amendment fee of $20,000, on or before November 30, 2022, or upon exercise of the option to purchase, on or before the earlier of December 31, 2022 or closing on the purchase of the premises. In January 2022, the Company’s subsidiary CNP Operating of Wyoming, LLC entered into a lease agreement with Wyott Capital Group for the lease of storage and manufacturing space in Cheyenne, Wyoming for a 3-year term including a base rent of $6,825. At December 31, 2022, management determined that certain events and circumstances occurred that indicated that the net book value of CNP’s ROU assets may not be recoverable. As such, the Company recorded an impairment charge of $339,768. |
NOTE 7_ ASSETS HELD FOR SALE
NOTE 7: ASSETS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 7: ASSETS HELD FOR SALE | NOTE 7: ASSETS HELD FOR SALE As of December 31, 2022, the Company determined that its property and equipment in Wray, Colorado (via CFN Real Estate II) were to be listed for sale. Accordingly, the Company reported the disposal group of the long-lived assets at its lower of the carrying value or the fair value less cost to sell. The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheet as of March 31, 2023, and consist of the following: March 31, 2023 Machinery & equipment $ 521,810 Building 155,471 Land 22,719 700,000 Less: Accumulated depreciation (100,953) $ 599,047 On April 12, 2023, the Company sold its property at Wray, Colorado for total proceeds of $699,000. |
NOTE 8_ RELATED PARTY TRANSACAT
NOTE 8: RELATED PARTY TRANSACATIONS | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 8: RELATED PARTY TRANSACATIONS | NOTE 8: RELATED PARTY TRANSACATIONS As of March 31, 2023 and December 31, 2022, there was $499,640 and $503,259 in amounts due to related parties, respectively, including $428,700 due to CSIS. The advances are unsecured, non-interest bearing and due on demand. On February 13, 2023, Vince Kandis, the President of CNP Operating, LLC, a wholly owned subsidiary of CFN Enterprises Inc., resigned from his position. |
NOTE 9_ COMMITMENTS AND CONTING
NOTE 9: COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 9: COMMITMENTS AND CONTINGENCIES | NOTE 9: COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. Except as set forth below, the Company is not presently a party to any legal proceedings that it currently believes, if determined adversely to the Company, would individually or taken together have a material adverse effect on the Company’s business, operating results, financial condition or cash flows. In October 2022, CAKE Software Inc. ("CAKE") filed a lawsuit against the Company in the Supreme Court of the State of New York, County of New York, captioned CAKE Software, Inc. v. Accelerize Inc. n/k/a CFN Enterprises Inc., Index No. 653838/2022. CAKE's lawsuit stems from an Asset Purchase Agreement (the "APA") executed by the parties in May 2019, in which CAKE was the buyer of certain assets from the Company. CAKE alleges that Registrant breached the APA by not paying a purported outstanding amount due which was to be calculated post-closing, and for breaching certain representations and warranties in the APA. CAKE further seeks indemnification under the APA for what it alleges are liabilities the Company retained after the closing of the sale. Based on its claims, CAKE is seeking compensatory damages of at least $1,045,441.86, attorney's fees, interests and costs, and such other relief as the court may deem just and appropriate. In its Answer and Counterclaims, filed in January 2023, the Company denies the material allegations in CAKE's operative complaint as well as any liability to CAKE, and has also asserted claims of its own against CAKE and Perseus Operating Group, a Constellation Software Inc. division ("Constellation Software"). The Company's counterclaims assert that CAKE breached the APA by failing to pay the Company an earn-out, calculated in accordance with the APA, over a three-year period and totaling no less than $12,375,000, and that CAKE failed to pay the Company a $500,000 holdback amount. The Company further alleges that Constellation Software is the alter ego of CAKE, and therefore, is also liable under the APA. Through its counterclaims, the Company seeks compensatory damages of no less than $12,875,000, encompassing the earn-out amounts owed and the holdback amount, plus attorneys' fees, interests and costs, and other such relief as the court may deem just and proper. Currently, a scheduling conference is set for May 2023. Notwithstanding, CAKE and the Company have stipulated to an early mediation to be completed no later than June 30, 2023, and have stipulated to a stay of discovery pending mediation. In the event the parties are unable to resolve this matter at mediation, they have further stipulated to submit with the court a proposed preliminary conference order, or, if they are unable to come to an agreement, a letter detailing the disputes, no later than July 7, 2023. The Company has determined that potential losses in this matter are neither probable or reasonably possible at this time. On October 18, 2021, the Company settled a vendor dispute in the amount of $100,000 of which the initial payment of $40,000 was paid on the execution of the settlement and balance to paid in 48 equal monthly payments of $1,250. The balance as of December 31, 2022, is $41,250. |
NOTE 10_ SUBSEQUENT EVENTS
NOTE 10: SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Notes | |
NOTE 10: SUBSEQUENT EVENTS | NOTE 10: SUBSEQUENT EVENTS On April 1, 2023, Emerging Growth LLC entered into a new lease agreement for its premises in Whitefish, Montana commencing April 1, 2023, for a period of five years at a rate of $3,750 per month, which lease contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase. On April 12, 2023, the Company sold its property at Wray, Colorado for total proceeds of $699,000. In connection with the sale, the Company repaid $525,000, including $500,000 in principal and $25,000 in accrued interest, on CFN Real Estate II’s related note payable with Physician Strategic. On May 15, 2023, the Company and Emerging Growth reached an agreement whereby the Company issued 1,620,000 shares of its common stock as payment for $405,000 in outstanding accrued interest on the Series B Preferred Stock through June 30, 2023, The shares were issued under the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended, as not involving a public offering. On May 19, 2023, the Company entered into an advisory agreement with the Isaac Shehebar 2008 AIJJ Grantor Retained Annuity Trust and Ezra A. Chehebar (the “Advisors”), existing shareholders of the Company, for consulting services and to advise the Company’s executive team on strategic, branding, marketing, distribution, networking and other general business matters. As consideration under the advisory agreement, on May 22, 2023, the Company issued an aggregate of 6 million five-year warrants to purchase common stock at a price of $0.25 per share to the Advisors. On May 22, 2023, John Rand, the Company’s Executive Vice President of Finance, resigned from his position. Management has evaluated subsequent events through May 22, 2023, the date the consolidated financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these financial statements. |
NOTE 2_ SUMMARY OF SIGNIFICAN_2
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions about collection of accounts receivable, useful life of fixed assets and intangible assets, borrowing rate considered for operating lease right-of-use asset and related operating lease liability, and assumptions used in Black-Scholes valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate. |
NOTE 2_ SUMMARY OF SIGNIFICAN_3
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Financial Statement Reclassification (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Financial Statement Reclassification | Financial Statement Reclassification Certain account balances from prior periods have been reclassified in these consolidated financial statements to conform to current period classifications. |
NOTE 2_ SUMMARY OF SIGNIFICAN_4
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Cash and Cash Equivalents (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less when purchased, to be cash equivalents. The Company has restricted cash as a result of its corporate card program through its bank, which requires collateral placed in a money market account. At March 31, 2023, the Company had a restricted cash balance of $20,203 included as a component of total cash and restricted cash as presented on the accompanying unaudited condensed consolidated statement of cash flows. |
NOTE 2_ SUMMARY OF SIGNIFICAN_5
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Accounts Receivable | Accounts Receivable The Company’s account receivables are due from customers relating to contracts to provide investor relation services. Collateral is currently not required. The Company also maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make payments. The Company periodically reviews these estimated allowances, including an analysis of the customers’ payment history and creditworthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to make payments as well as historical collection trends for its customers as a whole. Based on this review, the Company specifically reserves for those accounts deemed uncollectible or likely to become uncollectible. When receivables are determined to be uncollectible, principal amounts of such receivables outstanding are deducted from the allowance. The allowance for doubtful accounts as of March 31, 2023 and December 31, 2022 amounted to $453,952 and $470,532, respectively. |
NOTE 2_ SUMMARY OF SIGNIFICAN_6
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Inventory | Inventory The Company’s inventory consists of finished goods acquired for its e-commerce network business it is currently in the process of launching. The inventory is valued at the lower of cost (first-in, first-out) or estimated net realizable value. As of March 31, 2023, the Company valued the inventory at $0. |
NOTE 2_ SUMMARY OF SIGNIFICAN_7
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risks (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Concentration of Credit Risks | Concentration of Credit Risks The Company is subject to concentrations of credit risk primarily from cash and cash equivalents and accounts receivable. The Company’s cash and restricted cash accounts are held at a financial institution and are insured by the Federal Deposit Insurance Corporation, or the FDIC, up to $250,000. From time-to-time, the Company’s bank balances exceed the FDIC insurance limit. To reduce its risk associated with the failure of such financial institutions, the Company periodically evaluates the credit quality of the financial institution in which it holds deposits. |
NOTE 2_ SUMMARY OF SIGNIFICAN_8
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification, or ASC, 606, the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. The Company accounts for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. Subsequent to the closing of the Emerging Growth Agreement on June 20, 2019, the Company’s revenue is generated from the sale of promotional service packages to its customers ranging from 3 to 6 months. The Company offers different packages tailored to the type and stage of the potential customer, such as public companies looking to increase their shareholder base, as well as private companies potentially looking to go public and attract capital and publicity. The services provided by the Company include advertising, publishing of interviews and articles across its network and featuring of client content on its newsletters and social media. The packages all have fixed prices that are billed monthly over the terms of the agreement in even amounts. The Company recognizes revenue for its performance obligation associated with its contracts with customers over time as work is performed, which is deemed to occur evenly throughout the duration of the contract. This also reflects the pattern in which costs are incurred on performing the contracts. To the extent revenue recognized on contracts at each period end exceeds collections, the amounts are reflected as accounts receivable. To the extent collections on contracts at each period end exceeds revenue recognized, the amounts are reflected as deferred revenue. The Company accounts for its CNP Operating revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified, payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered. |
NOTE 2_ SUMMARY OF SIGNIFICAN_9
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Shipping and Handling Fees and Costs (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs Amounts billed to customers for shipping and handling fees are presented in revenue. Costs incurred for shipping and handling are included in cost of revenue. |
NOTE 2_ SUMMARY OF SIGNIFICA_10
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for assets and liabilities measured at fair value on a recurring basis in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements, establishes a framework for measuring fair value, and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Additional Disclosures Regarding Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, deferred revenue and due to related party approximate their fair value due to the short-term maturity of these items. The Company’s notes payable approximate their fair value due to the market rate of interest on the notes. |
NOTE 2_ SUMMARY OF SIGNIFICA_11
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Advertising (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising expenses for the three months ended March 31, 2023 and 2022 amounted to $12,614 and $11,214, respectively. |
NOTE 2_ SUMMARY OF SIGNIFICA_12
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized, but no less than quarterly. For interim periods, the Company uses the effective income tax rate method resulting in zero income tax for the three months ended March 31, 2023 and 2022. |
NOTE 2_ SUMMARY OF SIGNIFICA_13
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives of five years. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. |
NOTE 2_ SUMMARY OF SIGNIFICA_14
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Long-Lived Assets (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Long-Lived Assets | Long-Lived Assets In accordance with ASC 360-10, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. |
NOTE 2_ SUMMARY OF SIGNIFICA_15
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Basic earnings per share are calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share are computed using the weighted average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise of stock options and warrants (calculated using the modified-treasury stock method). As of March 31, 2023, the Company had no outstanding stock options, 988,500 outstanding warrants and 3,500 shares of preferred stock which were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive. As of March 31, 2022, the Company had 210,667 outstanding stock options and 311,112 outstanding warrants which were excluded from the calculation of diluted earnings per share because their effects were anti-dilutive. As a result, the basic and diluted earnings per share are the same for each of the periods presented. |
NOTE 2_ SUMMARY OF SIGNIFICA_16
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Share-Based Payment (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Share-Based Payment | Share-Based Payment The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation-Stock Compensation, or ASC 718. Under the fair value recognition provisions of this topic, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is the vesting period. The Company has elected to use the Black-Scholes option-pricing model to estimate the fair value of its options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Compensation expense recognized in the statements of operations is based on awards ultimately expected to vest and reflects estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
NOTE 2_ SUMMARY OF SIGNIFICA_17
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Common Stock Awards (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Common Stock Awards | Common Stock Awards The Company has granted common stock awards to non-employees in exchange for services provided. The Company measures the fair value of these awards using the fair value of the services provided or the fair value of the awards granted. The fair value of the awards is recognized on a straight-line basis as services are rendered. The share-based payments related to common stock awards for the settlement of services provided by non-employees is recorded on the consolidated statement of comprehensive loss in the same manner and charged to the same account as if such settlements had been made in cash. |
NOTE 2_ SUMMARY OF SIGNIFICA_18
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Warrants (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Warrants | Warrants In connection with certain financing, consulting and collaboration arrangements, the Company has issued warrants to purchase shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the holder and are classified as equity awards. The Company measures the fair value of the awards using the Black-Scholes option pricing model as of the measurement date. Warrants are recorded at fair value as expense over the requisite service period or at the date of issuance, if there is not a service period. Warrants granted in connection with ongoing arrangements are more fully described in Note 6, Stockholders’ Deficit. |
NOTE 2_ SUMMARY OF SIGNIFICA_19
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Leases (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Policies | |
Leases | Leases The Company adopted Accounting Standards Update No. 2016-02, Leases (“Topic 842”) using the modified retrospective method. This accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. Upon adoption, right-of-use (ROU) assets and lease liabilities for operating leases were recorded in the amount of $181,134 and $181,134, respectively. The Company elected the practical expedient method permitted under the transition guidance, which allows a carryforward of historical lease classification, the assessment on whether a contract was or contains a lease, and the initial direct costs for any leases that existed prior to July 1, 2019. The Company also elected to recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Under Topic 842, the Company determines if an arrangement is a lease at inception. ROU assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement and leases with an initial term of 12 months or less are not included in lease liabilities or ROU asset. As most leases do not provide an implicit rate, a rate which approximates the Company’s incremental borrowing rate is used, based on the information available at commencement date, in determining the present value of lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred. Lease agreements generally do not contain residual value guarantees or restrictive covenants. Over the lease term, the Company uses the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized in a manner that results in straight-line expense recognition. At December 31, 2022, management determined that certain events and circumstances occurred that indicated that the net book value of CNP’s ROU assets may not be recoverable. As such, the Company recorded an impairment charge of $339,768. |
NOTE 3_ PROPERTY AND EQUIPMENT_
NOTE 3: PROPERTY AND EQUIPMENT: Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Tables/Schedules | |
Property, Plant and Equipment | The Company’s property and equipment relating to continuing operations consisted of the following: March 31, December 31, 2023 2022 Machinery & equipment $ 50,000 $ 50,000 Furniture and equipment and leasehold improvements 14,772 14,772 64,772 64,772 Less: Accumulated depreciation (14,034) (11,202) $ 50,738 $ 53,570 |
NOTE 4_ NOTES PAYABLE_ Schedule
NOTE 4: NOTES PAYABLE: Schedule of Maturities of Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Tables/Schedules | |
Schedule of Maturities of Long-Term Debt | Future scheduled maturities of long-term debt are as follows: March 31, 2023 2023 3,086,580 2024 793,585 2025 43,585 2026 27,263 2027 12,507 Thereafter 99,203 4,062,724 |
NOTE 5_ STOCKHOLDERS' DEFICIT_
NOTE 5: STOCKHOLDERS' DEFICIT: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | The following summarizes the Company’s warrant activity for the three months ended March 31, 2023: Weighted-Average Weighted- Remaining Average Contractual Life Warrants Exercise Price (Years) Outstanding at December 31, 2022 988,500 $ 2.25 2.39 Granted - Forfeited - Outstanding at March 31, 2023 988,500 $ 0.02 2.14 Vested and expected to vest at March 31, 2023 988,500 $ 2.25 2.14 Exercisable at March 31, 2023 988,500 $ 2.25 2.14 |
NOTE 7_ ASSETS HELD FOR SALE_ S
NOTE 7: ASSETS HELD FOR SALE: Schedule Of Consolidated Statements Of Operations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Tables/Schedules | |
Schedule Of Consolidated Statements Of Operations | March 31, 2023 Machinery & equipment $ 521,810 Building 155,471 Land 22,719 700,000 Less: Accumulated depreciation (100,953) $ 599,047 |
NOTE 1_ ORGANIZATION AND BASI_2
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) | 3 Months Ended | ||
May 15, 2019 | Mar. 31, 2023 | Dec. 31, 2022 | |
Stock Issued During Period, Value, Acquisitions | $ 3,000,000 | ||
Working Capital Deficit | $ 8,863,754 | ||
Accumulated deficit | 59,607,321 | $ 58,996,099 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 551,222 | ||
Series B Preferred Stock | |||
Stock Issued During Period, Shares, Acquisitions | 3,000 | ||
Common Stock | |||
Stock Issued During Period, Shares, Acquisitions | 30,000,000 | ||
Asset Purchased Agreement With Emerging Growth Llc | |||
Payments to Acquire Businesses, Gross | $ 420,000 |
NOTE 2_ SUMMARY OF SIGNIFICA_20
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Details | ||
Accounts Receivable, Allowance for Credit Loss | $ 453,952 | $ 470,532 |
NOTE 2_ SUMMARY OF SIGNIFICA_21
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventory (Details) | Mar. 31, 2023 USD ($) |
Details | |
Inventory, Net | $ 0 |
NOTE 2_ SUMMARY OF SIGNIFICA_22
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Concentration of Credit Risks (Details) | Mar. 31, 2023 USD ($) |
Details | |
Cash, FDIC Insured Amount | $ 250,000 |
NOTE 2_ SUMMARY OF SIGNIFICA_23
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Advertising (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Details | ||
Advertising Expense | $ 12,614 | $ 11,214 |
NOTE 2_ SUMMARY OF SIGNIFICA_24
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Earnings Per Share (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 988,500 | 311,112 |
Share-Based Payment Arrangement, Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 210,667 |
NOTE 2_ SUMMARY OF SIGNIFICA_25
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Leases (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 | |
Details | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 181,134 | |
Impairment Charge on ROU assets | $ 339,768 |
NOTE 3_ PROPERTY AND EQUIPMEN_2
NOTE 3: PROPERTY AND EQUIPMENT: Property, Plant and Equipment (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Gross | $ 64,772 | $ 64,772 |
Less: Accumulated depreciation | (14,034) | (11,202) |
Property and equipment, net | 50,738 | 53,570 |
Machinery and Equipment | ||
Property, Plant and Equipment, Gross | 50,000 | 50,000 |
Furniture and Fixtures | ||
Property, Plant and Equipment, Gross | $ 14,772 | $ 14,772 |
NOTE 3_ PROPERTY AND EQUIPMENT
NOTE 3: PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Details | ||
Impairment charge to record the residual value of property and equipment | $ 3,276,193 | |
Depreciation | $ 2,832 | $ 381,200 |
NOTE 4_ NOTES PAYABLE (Details)
NOTE 4: NOTES PAYABLE (Details) - USD ($) | 3 Months Ended | |||||||||||||
May 11, 2022 | Apr. 08, 2022 | Feb. 25, 2021 | Nov. 19, 2020 | Jun. 24, 2020 | May 06, 2020 | Sep. 30, 2019 | Sep. 10, 2019 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 19, 2021 | May 12, 2021 | Dec. 31, 2019 | Oct. 28, 2019 | |
Long-Term Debt | $ 4,062,724 | |||||||||||||
Long-Term Debt, Gross | $ 250,000 | |||||||||||||
Notes Payable | $ 2,957,000 | |||||||||||||
Outstanding Amount | 158,625 | |||||||||||||
Balance Paid Per Month | 20,000 | |||||||||||||
Total Paid Per Month | 138,625 | |||||||||||||
Property and equipment, net | 50,738 | $ 53,570 | ||||||||||||
Purchase of property and equipment with accounts and notes payable | 55,016 | |||||||||||||
Accrued Interest Rate | 12% | |||||||||||||
Current portion of notes payable | $ 3,086,580 | $ 3,088,250 | ||||||||||||
Common Stock | ||||||||||||||
Shares issued pursuant to conversion of debt, Shares | 2,906,800 | |||||||||||||
C S B G | Eagle One | ||||||||||||||
Notes Payable | 550,000 | |||||||||||||
C S B G | Eagl Two | ||||||||||||||
Notes Payable | $ 300,000 | |||||||||||||
Paycheck Protection Program | ||||||||||||||
Debt Instrument, Interest Rate During Period | 1% | |||||||||||||
Debt Instrument, Face Amount | $ 263,000 | |||||||||||||
Second Paycheck Protection Program | ||||||||||||||
Debt Instrument, Interest Rate During Period | 1% | |||||||||||||
Debt Instrument, Face Amount | $ 263,000 | |||||||||||||
CNP Operating | ||||||||||||||
Long-Term Debt, Gross | $ 550,000 | $ 3,050,000 | ||||||||||||
Outstanding Balance | $ 302,489 | $ 2,218,000 | $ 2,218,000 | |||||||||||
Debt Instrument, Interest Rate During Period | 16% | |||||||||||||
Warrant | ||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 676,000 | |||||||||||||
Promissory Note Payable | ||||||||||||||
Proceeds from Long-Term Lines of Credit | $ 500,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | |||||||||||||
Debt Instrument, Unamortized Discount | $ 17,624 | |||||||||||||
Long-Term Debt | $ 500,000 | |||||||||||||
Long-Term Debt, Gross | 50,000 | |||||||||||||
Promissory Note Payable | Warrant in Connection with Promissory Note | ||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 33,333 | |||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.50 | |||||||||||||
SBA | ||||||||||||||
Debt Instrument, Interest Rate During Period | 3.75% | |||||||||||||
Proceeds from Loans | $ 150,000 | |||||||||||||
Debt Instrument, Periodic Payment | $ 731 | |||||||||||||
Promissory Note Payable 6 | ||||||||||||||
Long-Term Debt | $ 48,513 | |||||||||||||
Debt Instrument, Periodic Payment | $ 968 | |||||||||||||
Property and equipment, net | $ 58,095 | |||||||||||||
Promissory Note Payable 7 | ||||||||||||||
Debt Instrument, Interest Rate During Period | 18% | |||||||||||||
Proceeds from Loans | $ 676,000 | |||||||||||||
Promissory Note Payable 8 | ||||||||||||||
Debt Instrument, Interest Rate During Period | 12% | |||||||||||||
Proceeds from Loans | $ 500,000 |
NOTE 4_ NOTES PAYABLE_ Schedu_2
NOTE 4: NOTES PAYABLE: Schedule of Maturities of Long-Term Debt (Details) | Mar. 31, 2023 USD ($) |
Details | |
Long-Term Debt, Maturity, Remainder of Fiscal Year | $ 3,086,580 |
Long-Term Debt, Maturity, Year Two | 793,585 |
Long-Term Debt, Maturity, Year Three | 43,585 |
Long-Term Debt, Maturity, Year Four | 27,263 |
Long-Term Debt, Maturity, Year Five | 12,507 |
Long-Term Debt, Maturity, after Year Five | 99,203 |
Long-Term Debt | $ 4,062,724 |
NOTE 5_ STOCKHOLDERS' DEFICIT (
NOTE 5: STOCKHOLDERS' DEFICIT (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Dec. 06, 2021 | Jan. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Stockholders' Equity, Reverse Stock Split | the Company effected a reverse split of its outstanding common stock in the ratio of 1-for-15 | ||||
Proceeds from sale of common stock | $ 600,000 | $ 0 | |||
Payments made in advance of securities date | $ 0 | $ 217,500 | |||
Preferred Stock, Shares Authorized | 2,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | ||||
Dividends, Paid-in-kind | $ 60,000 | $ 60,000 | |||
Series A Preferred Stock | |||||
Preferred Stock, Shares Authorized | 500 | 500 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Series B Preferred Stock | |||||
Preferred Stock, Shares Authorized | 3,000 | 3,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Stock Issuance 2 | |||||
Shares issued as for exercise of warrant | 2,400,000 | ||||
Proceeds from sale of common stock | $ 600,000 |
NOTE 5_ STOCKHOLDERS' DEFICIT_2
NOTE 5: STOCKHOLDERS' DEFICIT: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Warrant - $ / shares | 3 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 988,500 | 988,500 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 2.25 | $ 0.02 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 4 months 20 days | 2 years 1 month 20 days | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 988,500 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 2.25 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 1 month 20 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 988,500 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 2.25 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 1 month 20 days |
NOTE 6_ LEASES (Details)
NOTE 6: LEASES (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Sep. 01, 2020 | Jun. 20, 2019 | Dec. 31, 2022 | |
Impairment Charge on ROU assets | $ 339,768 | |||
Office Space In Whitefish Montana | ||||
Operating Lease Monthly Rent | $ 4,500 | $ 4,500 | $ 1,500 | |
Office Space in Centennial, CO | ||||
Operating Lease Monthly Rent | 10,521 | |||
Office Space in Centennial, CO - HVAC Installation | ||||
Operating Lease Monthly Rent | 835 | |||
Office space In H2S2 LLC | ||||
Operating Lease Monthly Rent | 14,000 | |||
Office space In H2S2 LLC, Amendment | ||||
Operating Lease Monthly Rent | 14,000 | |||
Office Space In Wyott Capital Group | ||||
Operating Lease Monthly Rent | $ 6,825 |
NOTE 7_ ASSETS HELD FOR SALE__2
NOTE 7: ASSETS HELD FOR SALE: Schedule Of Consolidated Statements Of Operations (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Assets Held-For-Sale, Long Lived, Fair Value Disclosure, Gross | $ 700,000 | |
Property, Plant and Equipment, Other, Accumulated Depreciation | (100,953) | |
Assets held for sale | 599,047 | $ 599,047 |
Machinery and Equipment | ||
Assets Held-For-Sale, Long Lived, Fair Value Disclosure, Gross | 521,810 | |
Building | ||
Assets Held-For-Sale, Long Lived, Fair Value Disclosure, Gross | 155,471 | |
Land | ||
Assets Held-For-Sale, Long Lived, Fair Value Disclosure, Gross | $ 22,719 |
NOTE 7_ ASSETS HELD FOR SALE (D
NOTE 7: ASSETS HELD FOR SALE (Details) | Apr. 12, 2023 USD ($) |
Details | |
Proceeds from Sale of Real Estate | $ 699,000 |
NOTE 8_ RELATED PARTY TRANSAC_2
NOTE 8: RELATED PARTY TRANSACATIONS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Details | ||
Due to related party | $ 499,640 | $ 503,259 |
NOTE 9_ COMMITMENTS AND CONTI_2
NOTE 9: COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Oct. 18, 2021 | Dec. 31, 2022 |
Details | ||
Proceeds from Legal Settlements | $ 100,000 | |
Payments for Legal Settlements | 40,000 | |
Monthly Installment | $ 1,250 | |
Balance, Legal Amount Paid During The Period | $ 41,250 |