Document and Entity Information
Document and Entity Information | Mar. 31, 2023 |
Details | |
Registrant CIK | 0001431074 |
Document Type | S-1/A |
Entity Registrant Name | BERGIO INTERNATIONAL, INC. |
Entity Incorporation, State or Country Code | WY |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Current assets | ||
Cash | $ 113,972 | $ 464,248 |
Accounts receivable | 160,009 | 119,931 |
Inventory, net | 2,885,975 | 2,855,585 |
Inventory, net | 2,600 | 700 |
Total current assets | 3,162,556 | 3,440,464 |
Property and equipment, net | 45,283 | 50,164 |
Goodwill, net | 5,681,167 | 5,681,167 |
Intangible Assets, Net | 208,830 | 269,319 |
Operating lease right of use assets | 110,201 | 24,595 |
Investment in unconsolidated affiliate | 6,603 | 6,603 |
Total Assets | 9,214,640 | 9,472,312 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,879,864 | 1,851,432 |
Bank overdraft | 0 | 11,582 |
Accrued compensation - CEO | 349,264 | 319,640 |
Notes payable, net | 818,656 | 702,504 |
Convertible notes payable, net of debt discount | 38,864 | 19,324 |
Loans payable and accrued interest, net | 1,282,569 | 1,072,089 |
Advances from CEO and accrued interest | 261,810 | 142,854 |
Derivative liability - convertible debt | 119,519 | 108,594 |
Derivative liability - acquisition | 133,140 | 7,914 |
Operating lease liabilities - current | 32,216 | 18,072 |
Total current liabilities | 4,915,902 | 4,254,005 |
Long-term liabilities | ||
Notes payable - long-term | 261,344 | 259,496 |
Operating lease liabilities - long-term | 77,985 | 6,524 |
Total long term liabilities | 339,329 | 266,020 |
Total liabilities | 5,255,231 | 4,520,025 |
Series E Preferred, classified as mezzanine debt | 317,000 | 0 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity | ||
Preferred stock value, Series A | 0 | 0 |
Convertible Series B Preferred Stock Value | 0 | 0 |
Convertible Series C Preferred Stock Value | 0 | 0 |
Convertible Series D Preferred Stock Value | 10 | 13 |
Common stock value | 123 | 123 |
Common stock issuable, value | 10 | 10 |
Additional paid-in capital | 25,785,891 | 26,102,888 |
Accumulated deficit | (20,283,316) | (19,605,358) |
Total stockholders' equity, bergio | 5,502,718 | 6,497,676 |
Non-controlling interest in subsidiaries | (1,860,309) | (1,545,389) |
Total SH Equity | 3,642,409 | 4,952,287 |
Total liabilities and shareholders' deficit | $ 9,214,640 | $ 9,472,312 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - Parenthetical - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Preferred Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 25,000,000,000 | 25,000,000,000 |
Common Stock, Shares, Issued | 12,319,522 | 12,316,954 |
Common stock issuable, not yet issued | 1,000,000 | |
Series E Preferred Stock | ||
Preferred Par value | $ 0.00001 | |
Preferred Authorized | 2,500,000 | |
Preferred Issued | 317,000 | |
Preferred Stock, Liquidation Preference, Value | $ 1 | |
Series A Preferred Stock | ||
Preferred Par value | $ 0.001 | |
Preferred Authorized | 75 | |
Preferred Issued | 75 | 75 |
Series B Preferred Stock | ||
Preferred Par value | $ 0.00001 | |
Preferred Authorized | 4,900 | |
Preferred Issued | 3,000 | 3,000 |
Preferred Stock, Liquidation Preference, Value | $ 100 | |
Series C Preferred Stock | ||
Preferred Par value | $ 0.00001 | |
Preferred Authorized | 5,000,000 | |
Preferred Issued | 0 | |
Preferred Stock, Liquidation Preference, Value | $ 100 | |
Series D Preferred Stock | ||
Preferred Par value | $ 0.00001 | |
Preferred Authorized | 2,500,000 | |
Preferred Issued | 957,000 | 1,274,000 |
Preferred Stock, Liquidation Preference, Value | $ 1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net Revenues | $ 1,388,363 | $ 1,956,501 |
Revenues from related parties | 0 | 139,050 |
Total revenues, net | 1,388,363 | 2,095,551 |
Cost of revenues | 768,661 | 1,246,737 |
Gross profit | 619,702 | 848,814 |
Operating expenses | ||
Selling And Marketing Expenses | 360,180 | 721,104 |
Professional And Consulting Expenses | 532,274 | 553,952 |
Compensation and related expenses | 168,202 | 280,018 |
General and administrative expenses | 226,127 | 257,697 |
Total operating expenses | 1,286,783 | 1,812,771 |
Loss from operations | (667,081) | (963,957) |
Other income (expenses) | ||
Interest expense | (157,458) | (1,095,233) |
Derivative Expense | 0 | (16,900) |
Amortization of debt discount and deferred financing cost | (19,541) | (317,840) |
Loss from foreign currency transactions | (1,744) | (3,925) |
Fraud loss caused by computer hackers | 0 | (19,400) |
Change in fair value of derivative liabilities | (136,151) | 177,216 |
Interest income and other | 0 | 164 |
Other income or expense | 0 | 11,809 |
Gain (Loss) on Extinguishment of Debt | 0 | 149,755 |
Total other expenses, net | (314,894) | (1,114,354) |
Loss before provision for income taxes | (981,975) | (2,078,311) |
Provision for income taxes | 0 | 0 |
Net Income (Loss) | (981,975) | (2,078,311) |
Losses attributable to non-controlling interest | 314,920 | 492,725 |
Net income (loss) attributable to Bergio International, Inc. | (667,055) | (1,585,586) |
Deemed dividends, preferred stock | 0 | (815,000) |
Net loss available to Bergio International, Inc. common stockholders | $ (667,055) | $ (2,400,586) |
Earnings Per Share, Basic | $ (0.05) | $ (0.60) |
Weighted Average Number of Shares Outstanding, Basic | 12,319,522 | 4,013,589 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Preferred Stock | Series B Preferred Equity | Series D Preferred Equity | Common Stock | Common Issuable Equity | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest | Total | Series C Preferred Equity | Treasury Stock, Common |
Equity Balance at Dec. 31, 2021 | $ 0 | $ 0 | $ 0 | $ 24 | $ 0 | $ 18,646,446 | $ (14,452,396) | $ (557,472) | $ 3,740,303 | $ 0 | $ 103,700 |
Equity Balance, Shares at Dec. 31, 2021 | 75 | 3,000 | 0 | 2,433,039 | 32,044 | 5 | |||||
Series D preferred stock issued for cash, net of offering cost | $ 0 | $ 0 | $ 9 | $ 0 | $ 0 | 814,991 | 0 | 0 | 815,000 | $ 0 | 0 |
Series D preferred stock issued for cash, net of offering cost, share | 0 | 0 | 855,000 | 0 | 0 | 0 | |||||
Accrued dividends on preferred stock | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | (6,563) | 0 | (6,563) | $ 0 | 0 |
Net Income (Loss) | 0 | 0 | 0 | 0 | 0 | (1,585,586) | (492,725) | (2,078,311) | 0 | 0 | |
Equity Balance at Mar. 31, 2022 | $ 0 | $ 0 | $ 9 | $ 53 | $ 0 | 22,681,386 | (16,859,545) | (1,050,197) | 4,771,706 | $ 0 | 0 |
Equity Balance, Shares at Mar. 31, 2022 | 75 | 3,000 | 855,000 | 5,258,393 | 32,044 | 5 | |||||
Issuance of deemed dividend (in Dollars) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 815,000 | (815,000) | 0 | 0 | $ 0 | 0 |
Issuance of common stock for debt conversion including accrued interest and fees | $ 0 | $ 0 | $ 0 | $ 28 | $ 0 | 2,285,628 | 0 | 0 | 2,285,656 | $ 0 | 0 |
Issuance of common stock for debt conversion including accrued interest and fees, in Shares | 0 | 0 | 0 | 2,825,354 | 0 | 0 | |||||
Accretion of stock-based compensation for services | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 15,621 | 0 | 0 | 15,621 | $ 0 | 0 |
Cancellation of treasury stock | 0 | 0 | 0 | 0 | 0 | 103,700 | 0 | 0 | 0 | $ 0 | $ (103,700) |
Equity Balance at Dec. 31, 2022 | $ 0 | $ 0 | $ 13 | $ 123 | $ 10 | 26,102,888 | (19,605,358) | (1,545,389) | 4,952,287 | ||
Equity Balance, Shares at Dec. 31, 2022 | 75 | 3,000 | 1,274,000 | 12,316,954 | 1,000,000 | ||||||
Series D preferred stock issued for cash, net of offering cost | $ 0 | $ 0 | $ (3) | $ 0 | $ 0 | 3 | 0 | 0 | 0 | ||
Series D preferred stock issued for cash, net of offering cost, share | 0 | 0 | (317,000) | 0 | 0 | ||||||
Reclassification of Series E preferred stock | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | (317,000) | 0 | 0 | (317,000) | ||
Round up of fractional shares, reverse split, value | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Round up of fractional shares, reverse split, shares | 0 | 0 | 0 | 2,568 | 0 | ||||||
Accrued dividends on preferred stock | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | (10,903) | 0 | (10,903) | ||
Net Income (Loss) | 0 | 0 | 0 | 0 | 0 | 0 | (667,055) | (314,920) | (981,975) | ||
Equity Balance at Mar. 31, 2023 | $ 0 | $ 0 | $ 10 | $ 123 | $ 10 | $ 25,785,891 | $ (20,283,316) | $ (1,860,309) | $ 3,642,409 | ||
Equity Balance, Shares at Mar. 31, 2023 | 75 | 3,000 | 957,000 | 12,319,522 | 1,000,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) attributable to Bergio International, Inc. | $ (667,055) | $ (1,585,586) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Non-controlling interest in subsidiaries | (314,920) | (492,725) |
Amortization expense | 60,489 | 60,489 |
Depreciation expense | 9,781 | 10,557 |
Stock-based compensation | 0 | 15,621 |
Amortization of debt discount and deferred financing costs | 19,541 | 317,840 |
Derivative expense, cash flows | 0 | 16,900 |
Fair value of common stock (in Dollars) | 136,151 | (177,216) |
Gain (Loss) on Extinguishment of Debt | 0 | (149,755) |
Non-cash interest upon conversion of debt | 0 | 1,025,660 |
Amortization of right of use assets | 4,225 | (23,545) |
Change in operating assets and liabilities | ||
Increase (decrease) in Accounts Receivables | (40,078) | (31,416) |
Increase (decrease) in Inventory | (30,390) | 95,313 |
Increase (decrease) in Prepaids | (1,900) | 19,186 |
Increase (decrease) in Accounts payable and accrued liabilities | 153,843 | (266,140) |
Increase (decrease) in bank overdraft | (11,582) | 0 |
Increase (decrease) in Accrued salaries | 29,624 | 0 |
Increase (decrease) in Operating lease obligations | (4,225) | 23,544 |
Increase (decrease) in deferred compensation, related | 0 | 70,000 |
NET CASH USED IN OPERATING ACTIVITIES | (656,496) | (1,071,273) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (4,900) | 0 |
NET CASH USED IN INVESTING ACTIVITIES | (4,900) | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from sale of preferred stock | 0 | 815,000 |
Proceeds from loans payable | 487,123 | 381,600 |
Proceeds from convertible debt | 0 | 76,250 |
Repayment of note payable | 0 | (154,934) |
Repayment of loan payable | (288,378) | (336,553) |
Repayment of secured notes | 0 | (110,000) |
Advance from (payments to) Chief Executive Officer, net | 112,375 | (97,430) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 311,120 | 573,933 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (350,276) | (497,340) |
CASH AND CASH EQUIVALENTS - beginning of period | 464,248 | 1,093,195 |
CASH AND CASH EQUIVALENTS - end of period | 113,972 | 595,855 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 0 | 0 |
Income taxes paid | 0 | 0 |
Non-cash investing and financing activities | ||
Issuance of common stock issued for convertible debt, loans payable, and accrued interest | 0 | 1,259,996 |
Deemed dividend upon issuance of Series D preferred stock | 0 | 815,000 |
Initial amount of ROU asset and related liability, non-cash | 89,830 | 0 |
Initial derivative liability recorded in connection with convertible notes payable | $ 0 | $ 76,250 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation Disclosure | Mar. 31, 2023 |
Notes | |
Nature of Operations and Basis of Presentation Disclosure | Note 1 - Nature of Operations and Basis of Presentation Organization and Nature of Operations Bergio International, Inc. (the “Company”) was incorporated in the State of Delaware on July 24, 2007 under the name Alba Mineral Exploration, Inc. On October 21, 2009, as a result of a Share Exchange Agreement, the corporation’s name was changed to Bergio International, Inc. On February 19, 2020, the Company changed its state of incorporation to Wyoming. The Company is engaged in the product design, manufacturing, distribution of fine jewelry primarily in the United States and is headquartered in Fairfield, New Jersey. The Company’s intent is to take advantage of the Bergio brand and establish a chain of retail stores worldwide. The Company’s branded product lines are products and/or collections designed by the Company’s designer and CEO, Berge Abajian, and will be the centerpiece of the Company’s retail stores. On February 10, 2021, the Company entered into an Acquisition Agreement (“Acquisition Agreement”) with Digital Age Business, Inc., a Florida corporation, (“Digital Age Business”), pursuant to which the shareholders of Digital Age Business agreed to sell all of the assets and liabilities of its Aphrodite’s business to a subsidiary of the Company known as Aphrodite’s Marketing, Inc. (“Aphrodite’s Marketing”), a Wyoming corporation in exchange for Series B Preferred Stock of the Company. The Company owns 51% of Aphrodite’s Marketing. On July 1, 2021 (“Closing”), the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GearBubble, Inc., a Nevada corporation, (“GearBubble”), pursuant to which the shareholders of GearBubble (the “Equity Recipients”) agreed to sell 100% of the issued and outstanding shares of GearBubble to a subsidiary of the Company known as GearBubble Tech, Inc. (“GearBubble Tech”), a Wyoming corporation in exchange for $3,162,000 (the “Cash Purchase Price”), which shall be paid as follows: a) $2,000,000 (which was paid in cash at Closing), b) $1,162,000 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by the Company, and 49% of the Merger Sub shall be owned by the GearBubble Shareholders. The Company owns 51% of GearBubble Tech. On March 24, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 1,000,000,000 shares to 3,000,000,000 shares. On July 9, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 3,000,000,000 shares to 6,000,000,000 shares. On April 28, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares. On September 26, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 9,000,000,000 shares to 15,000,000,000 shares. In March 2023, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares. In the same Articles of Amendment, the Company filed for a reverse split of the Company’s common stock, at the ratio of 1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023. All share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the unaudited condensed consolidated financial statements to reflect the Reverse Stock Split. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information, which includes consolidated interim financial statements and present the consolidated interim financial statements of the Company and its wholly-owned and majority-owned subsidiaries as of March 31, 2023. All intercompany transactions and balances have been eliminated. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows have been made. Those adjustments consist of normal and recurring adjustments. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2022, and footnotes thereto included in the Company’s Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2023 (the “Annual Report”). The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for the full year. Impact of the COVID-19 Coronavirus The Company’s operations have been affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The ultimate disruption which may be caused by the outbreak is uncertain; however, it has resulted in a material adverse impact on the Company’s financial position, operations and cash flows. Areas affected include, but are not limited to, disruption to the Company’s customers and revenue, including a significant disruption in consumer demand and accessories, labor workforce, inability of customers to pay outstanding accounts receivable due and owing to the Company as they limit or shut down their businesses, customers seeking relief or extended payment plans relating to accounts receivable due and owing to the Company, unavailability of products and supplies used in operations, and the decline in value of assets held by the Company, including property and equipment. As such, the comparability of the Company’s operating results has been affected by significant adverse impacts related to the COVID-19 pandemic. The Company has increased its online presence to minimize the impact of having to close its retail stores as well as directing efforts towards its wholesale operations. The Company increased its online presence through its majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech. Non-controlling Interest in Consolidated Financial Statements In December 2007, the Financial Accounting Standard Board (“FASB”) issued ASC 810-10-65, “Non-controlling Interests in consolidated financial statements, an amendment of Accounting Research Bulletin No. 51” (“SFAS No. 160”). This ASC clarifies that a non-controlling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited condensed consolidated financial statements. It also requires consolidated net income to include the amounts attributable to both the parent and non-controlling interest, with disclosure on the face of the consolidated income statement of the amounts attributed to the parent and to the non-controlling interest. In accordance with ASC 810-10- 45-21, those losses attributable to the parent and the non-controlling interest in subsidiaries may exceed their interests in the subsidiary’s equity. The excess and any further losses attributable to the parent and the non-controlling interest shall be attributed to those interests even if that attribution results in a deficit non-controlling interest balance. On February 9, 2021, the Company entered into an Acquisition Agreement which resulted to the acquisition of 51% interest in Aphrodite’s Marketing. Additionally, on July 1, 2021, the Company entered into a Merger Agreement with GearBubble which resulted to the acquisition of 51% interest in the Merger Sub, GearBubble Tech. As of March 31, 2023 and December 31, 2022, the Company recorded a non-controlling interest balance of $(1,860,309) and $(1,545,389), respectively, in connection with the majority-owned subsidiaries, Aphrodite’s Marketing and GearBubble Tech as reflected in the accompanying unaudited condensed consolidated balance sheet and losses attributable to non-controlling interest of $314,920 and $492,725 during the three months ended March 31, 2023 and 2022, respectively as reflected in the accompanying unaudited condensed consolidated statements of operations. |
Going Concern Disclosure
Going Concern Disclosure | Mar. 31, 2023 |
Notes | |
Going Concern Disclosure | Note 2 - Going Concern These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited condensed consolidated financial statements, the Company had a net loss attributable to Bergio International, Inc. and cash used in operations of $667,055 and $656,496, respectively, for the three months ended March 31, 2023. Additionally, the Company had an accumulated deficit of approximately $20,283,316 million and working capital deficit of $1,753,346 at March 31, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive or raise additional capital pursuant to debt or equity financings. The Company may seek to raise additional capital through additional debt and/or equity financings to fund its operations in the future; however, no assurance can be provided that the Company will be able to raise additional capital on favorable terms, or at all. If the Company is unable to raise additional capital or secure additional lending in the future to fund its business plan, the Company may need to curtail or cease its operations. The Company increased its online presence and provided for the expansion of the Company’s branded product lines. The acquired majority owned subsidiaries, Aphrodite Marketing and GearBubble Tech of which the Company owns 51%, will enhance the Company’s online presence and provide the opportunity for future growth. However, there can be no assurance that this venture will be successful or that the Company can raise the required capital to fund this operation. These unaudited condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | Mar. 31, 2023 |
Notes | |
Summary of Significant Accounting Policies | Note 3 - Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States which includes the Company, its wholly-owned and majority owned subsidiaries as of March 31, 2023. All significant inter-company accounts and transactions have been eliminated. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. 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 reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from estimates. Significant estimates during the three months ended March 31, 2023 and 2022 include the estimates of useful lives of property and equipment and intangible assets, valuation of the operating lease liability and related right-of-use asset, valuation of derivatives, allowance for uncollectable receivables, valuation of equity based instruments issued for other than cash, the fair value of warrants issued with debt, the valuation allowance on deferred tax assets, and stock-based compensation. Revenue Recognition The Company applies ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASC 606 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard requires an entity to 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 in exchange for those goods or services and also requires certain additional disclosures. ASC 606 requires us to identify distinct performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. When distinct performance obligations exist, the Company allocates the contract transaction price to each distinct performance obligation. The standalone selling price, or our best estimate of standalone selling price, is used to allocate the transaction price to the separate performance obligations. The Company recognizes revenue when, or as, the performance obligation is satisfied. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Also, significant judgment may be required to determine the allocation of transaction price to each distinct performance obligation. Generally, revenues are recognized at the time of shipment to the customer with the price being fixed and determinable and collectability assured, provided title and risk of loss is transferred to the customer. Provisions, when appropriate, are made where the right to return exists. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. The Company’s subsidiary, GearBubble Tech, recognizes revenue from three sources: (1) e-commerce revenue (2) platform subscription fees and (3) partner and services revenue. • The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. The ecommerce sellers have no further obligation to the customer after the promised goods are transferred to the customer. Based on its evaluation of these factors, we have determined we are the principal in these arrangements. Through our suppliers, we have the ability to control the promised goods and as a result, the Company records ecommerce sales on a gross basis. The Company refunds the full cost of the merchandise returned and all original shipping charges if the returned item is defective or we or our partners have made an error, such as shipping the wrong product. If the return is not a result of a product defect or a fulfillment error and the customer initiate a return of an unopened item within 30 days of delivery, for most products we refund the full cost of the merchandise minus the original shipping charge and actual return shipping fees. If our customer returns an item that has been opened or shows signs of wear, the Company issues a partial refund minus the original shipping charge and actual return shipping fees. • • Cost of revenues Cost of revenue consists primarily of the cost of the merchandise, shipping fees, credit card processing services, fulfillment cost, ecommerce sellers’ pay-out; costs associated with operation and maintenance of the Company’s platform. Marketing The Company applies ASC 720 “Other Expenses” to account for marketing costs. Pursuant to ASC 720-35-25-1, the Company expenses marketing costs as incurred. Marketing costs include advertising and related expenses for third party personnel engaged in marketing and selling activities, including sales commissions, and third-party e-commerce platform fees and selling fees. The Company directs its customers to the Company’s ecommerce platform through social media, digital marketing, and promotional campaigns. Marketing costs were $360,180 and $721,104 for the three months ended March 31, 2023 and 2022, are included in selling and marketing expenses on the unaudited condensed consolidated statement of operations. Shipping and Handling Costs The Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the related costs of shipping products to customers are classified in selling and marketing expenses as incurred. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company’s previously reported financial position or results of operations and relates to the presentation of certain selling and marketing expenses previously included in cost of revenues. Fair Value of Financial Instruments FASB ASC 820 - Fair Value Measurements and Disclosures, 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. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to the Company on March 31, 2023. Accordingly, the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1: Level 2: Level 3: The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash, prepaid expenses and other current assets, accounts payable and accrued liabilities, and accrued compensation approximate their fair market value based on the short-term maturity of these instruments. In August 2018, the FASB issued ASU 2018-13,” Changes to Disclosure Requirements for Fair Value Measurements”, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Upon adoption, this guidance did not have a material impact on its unaudited condensed consolidated financial statements. Assets or liabilities measured at fair value or a recurring basis included embedded conversion options in convertible debt and convertible preferred stock and were as follows at: March 31, 2023 December 31, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total derivative liabilities $ - $ - $ 252,659 $ - $ - $ 116,508 ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding equity instruments. Cash and Cash Equivalents Cash equivalents are comprised of certain highly liquid instruments with a maturity of three months or less when purchased. The Company did not have any cash equivalents on hand at March 31, 2023 and December 31, 2022. The Company places its cash with high credit quality financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institutions, the Company evaluates, at least annually, the rating of the financial institutions in which it holds deposits. At March 31, 2023 and December 31, 2022, the Company did not have cash in excess of FDIC limits. Accounts Receivable The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current credit worthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for and payments from its customers and maintains provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. While such credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly reviewing the composition of its accounts receivable aging and evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic circumstance. While credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. As of March 31, 2023 and December 31, 2022, the allowance for doubtful accounts was $0 for both periods. Inventory Inventories consist primarily of finished goods and are stated at the lower of cost or market. Cost is determined using the weighted average method, and average cost is recomputed after each inventory purchase or sale. Inventories are written down if the estimated net realizable value is less than the recorded value, if appropriate. Long-Lived Assets The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment losses were recognized for the three months ended March 31, 2023 and 2022. Property and equipment Property is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets, generally three to five years. Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 - “Compensation-Stock Compensation”, which requires recognition in the financial statements of the cost of employee, non-employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Derivative Liabilities The Company has certain financial instruments that are embedded derivatives associated with capital raises and acquisition (see Note 13). The Company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815-10 – Derivative and Hedging – Contract in Entity’s Own Equity. This accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment. In July 2017, FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features. These amendments simplify the accounting for certain financial instruments with down-round features. The amendments require companies to disregard the down-round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. For public business entities, the amendments in Part I of the ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Concentration Risk Concentration of Revenues For the three months ended March 31, 2023 and 2022, no customer accounted for over 10% of total revenues. Concentration of Purchases The Company purchased approximately 18% of its finished products from one vendor during the three months ended March 31, 2023. The Company purchased approximately 44% of its finished products from three vendors (15%, 19% and 10%) during the three months ended March 31, 2022. Concentration of Accounts Receivable As of March 31, 2023, accounts receivable amounted to $127,200 and two customers represented 79% (44% and 35%) of this balance. As of December 31, 2022, total accounts receivable amounted to $119,931 and two customers represented 90% (60% and 30%) of this balance. Recent Accounting Pronouncements Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Property, Plant and Equipment D
Property, Plant and Equipment Disclosure | Mar. 31, 2023 |
Notes | |
Property, Plant and Equipment Disclosure | Note 4 - Property and Equipment Property and equipment consist of the following: March 31, 2023 December 31, 2022 Leasehold improvements $ 391,722 $ 391,722 Office and computer equipment 581,352 581,352 Selling equipment 8,354 8,354 Furniture and fixtures 25,411 20,511 Total at cost 1,006,839 1,001,939 Less: Accumulated depreciation (961,556) (951,775) $ 45,283 $ 50,164 Depreciation expense for the three months ended March 31, 2023 and 2022 was $9,781 and $10,557, respectively. |
Net Loss per Share Disclosure
Net Loss per Share Disclosure | Mar. 31, 2023 |
Notes | |
Net Loss per Share Disclosure | Note 5 - Net Loss per Share Pursuant to ASC 260-10-45, basic loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the periods presented. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of common stock issuable for stock options and stock warrants (using the treasury stock method), convertible notes and common stock issuable. These common stock equivalents may be dilutive in the future. The potentially dilutive common stock equivalents as of March 31, 2023 and December 31, 2022 were excluded from the dilutive loss per share calculation as they would be antidilutive due to the net loss as follow: March 31, 2023 December 31, 2022 (Unaudited) Common Stock Equivalents: Stock Warrants 3,095,983 3,095,983 Convertible Preferred Stock 13,265,856 16,735,086 Convertible Notes 2,438,462 24,384,615 Total 18,800,301 44,215,684 |
Convertible Notes Payable Discl
Convertible Notes Payable Disclosure | Mar. 31, 2023 |
Notes | |
Convertible Notes Payable Disclosure | Note 6 - Convertible Notes Payable As of March 31, 2023 and December 31, 2022, convertible notes payable consisted of the following: March 31, 2023 December 31, 2022 (Unaudited) Principal amount $ 79,250 $ 79,250 Less: unamortized debt discount (40,386) (59,926) Convertible notes payable, net $ 38,864 $ 19,324 Boot Capital, LLC On October 3, 2022, the Company entered into an 8% convertible note in the amount of $79,250 less legal and financing costs of $4,250 for net proceeds of $75,000 with Boot Capital LLC. The principal and accrued interest is payable on or before October 3, 2023. The note may not be prepaid except under certain conditions. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of twenty-two percent (22%) per annum from the due date thereof until the same is paid. At the option of the Holder, but not before 180 days from the date of issuance, the holder may elect to convert all or part of the convertible into the Company’s common stock. The conversion price shall mean 65% multiplied by the average two lowest trading price (representing a discount rate of 35%) during the previous 15 trading day period ending on the latest complete trading day prior to the date of this note. During the first 90 to 180 days following the date of this note, the Company has the right to prepay the principal and accrued but unpaid interest due under this note together with any other amounts that the Company may owe the holder under the terms of the note, at a premium ranging from 120% to 125% as defined in the note agreement. After this initial 180-day period, the Company does not have a right to prepay such note. There were no conversions during the three months ended March 31, 2023. The outstanding balance at March 31, 2023 and December 31, 2022 was $79,250 for both periods. Accrued interest at March 31, 2023 and December 31, 2022 was $3,109 and $1,546, respectively. Amortization of debt discounts and financing cost For the three months ended March 31, 2023 and 2022, amortization of debt discounts and financing cost related to all the convertible notes above amounted to $19,541 and $256,765, respectively, which has been amortized and included in amortization of debt discount and deferred financing cost on the accompanying unaudited condensed consolidated statements of operations. |
Derivative Liability Disclosure
Derivative Liability Disclosure | Mar. 31, 2023 |
Notes | |
Derivative Liability Disclosure | Note 7 - Derivative Liability The Company applies the provisions of ASC 815-40, Derivatives and Hedging - Contracts in an Entity’s Own Stock, under which convertible instruments that contain terms and provisions which cause the embedded conversion options to be accounted for as derivative liabilities. As a result, embedded conversion options in certain convertible notes and convertible preferred stock are recorded as a liability and are revalued at fair value at each reporting date. As of March 31, 2023 and December 31, 2022, total derivative liabilities amounted $252,659 (consist of derivative liability from convertible debt of $119,519 and derivative liability related to acquisition of Aphrodite’s Marketing $133,140) and $116,508 (consist of derivative liability from convertible debt of $108,594 and derivative liability related to acquisition of Aphrodite’s Marketing $7,914), respectively. The following is a roll forward for the three months ended March 31, 2023 and for the year ended December 31, 2022 of the fair value liability of price adjustable derivative instruments: Fair Value of Liability for Derivative Instruments Balance at December 31, 2021 $ 978,232 Initial valuation of derivative liabilities included in debt discount 201,250 Initial valuation of derivative liabilities related to issuance of Series B and C Preferred Stock 37,706 Initial valuation of derivative liabilities included in derivative expense (405,700) Reclassification of derivative liabilities to gain from extinguishment of debt (67,284) Change in fair value of derivative liabilities (627,696) Balance at December 31, 2022 116,508 Change in fair value of derivative liabilities 136,151 Balance at March 31, 2023 $ 252,659 The Company calculates the estimated fair values of the liabilities for derivative instruments using the Black-Scholes pricing model. The closing price of the Company’s common stock at March 31, 2023 and December 31, 2022 was $0.05 for both periods. The volatility, expected remaining term, and risk-free interest rates used to estimate the fair value of derivative liabilities at March 31, 2023 are indicated in the table that follows. The expected term is equal to the remaining term of the convertible instruments and the risk-free rate is based upon rates for treasury securities with the same term. Initial Valuations (on new derivative instruments entered into during the three months ended March 31, 2023) March 31, 2023 Volatility - 628% to 637% Expected Remaining Term (in years) - 0.08 to 0.51 Risk Free Interest Rate - 4.74 to 4.94% Expected dividend yield - None |
Loans Payable Disclosure
Loans Payable Disclosure | Mar. 31, 2023 |
Notes | |
Loans Payable Disclosure | Note 8 - Loans and Advances Payable Loans and advances payable consisted of the following: March 31, 2023 December 31, 2022 (Unaudited) Principal amount of loans and advances $ 938,359 $ 839,613 Accrued interest 344,210 232,476 Loans and advances payable $ 1,282,569 $ 1,072,089 Trillium Partners LP On June 16, 2022, the Company received proceeds related to a loan with Trillium Partners LP in the amount of $100,000. The loan and accrued interest were due on demand. Interest accrued at the rate of 3% per annum. As of December 31, 2022, the principal balance was $100,000. Accrued interest amounted to $4,340 at December 31, 2022. During the three months ended March 31, 2023, the Company reclassed such loan to note payable upon the receipt of a secured promissory note (see Note 9). Jonathan Foltz The Company’s majority owned subsidiary, Aphrodite’s Marketing, has a loan with Jonathan Foltz, the President and CEO of Digital Age Business. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $75,500 with Jonathan Foltz. During the year ended December 31, 2022, the Company received $90,150 and repaid back $25,239 related to this loan. Additionally, during the year ended December 31, 2022, Nationwide has assumed $65,513 of this loan. As of December 31, 2022, the outstanding balance is $81,534. During the three months ended March 31, 2023, the Company has received $37,572 and repaid back $1,611 related to this loan. As of March 31, 2023 and December 31, 2022, the outstanding balance is $117,495 and $81,534, respectively. Nationwide Transport Service, LLC (“Nationwide”) Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, has loan agreements with Nationwide dated in October 2020 and November 2020. Nationwide is owned by the father of Jonathan Foltz. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $545,720 with Nationwide. Aphrodite’s Marketing did not make the required installment payments pursuant to the loan agreements from December 2020 to February 2021 and as such these loans are currently in default. Interest on defaulted amount ranges from 1% to 3% per month. During the year ended December 31, 2022, the Company repaid back $150,000 related to this loan. Additionally, during the year ended December 31, 2022, Nationwide assumed a total of $106,000 of loans related to Digital Age Business and Jonathan Foltz. As of December 31, 2022, the outstanding balance is $608,500 including accrued interest of $77,718. As of March 31, 2023, the outstanding balance is $628,187 including accrued interest of $97,406. Amazon Capital Services, Inc. In July 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a loan agreement with Amazon Capital Services, Inc. (“Amazon”) for a loan amount of $64,000. The loan bears an annual interest rate of 12% and has a loan term of 6 months from date of the loan. During the year ended December 31, 2022, the Company repaid back $55,531 related to this loan. As of December 31, 2022, the outstanding balance is $11,001 including accrued interest of $2,532. During the three months ended March 31, 2023, the Company has repaid back $11,085 related to this loan. As of March 31, 2023, the outstanding balance is $0. Bluevine Capital, Inc. In August 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a line of credit agreement with Bluevine Capital, Inc. (“Bluevine”) for up to a loan amount of $200,000. The loan bears weekly interest rate of 0.54% and an upfront fee of 1.6% which were deducted from the loan amount. The loans are repaid in 26 weekly installments from the date of the loan. During the year ended December 31, 2022, the Company has drawn a total loan of $200,000 and repaid back $112,412. As of December 31, 2022, the outstanding balance is $87,588. During the three months ended March 31, 2023, the Company has drawn a total loan of $75,000 and repaid back $80,424. As of March 31, 2023, the outstanding balance is $82,164. Square Advance In September 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a merchant cash advance agreement (the “First Advance”) with Square Advance. Under the agreement, the Company sold an aggregate of $174,875 in future receivables for a purchase amount of $125,000. The aggregate principal amount is payable in weekly instalments totaling $7,286 until such time that the obligation is fully satisfied for approximately 6 months. During the year ended December 31, 2022, the Company received $118,750 (net of debt cost fee of $6,250 which was amortized immediately to interest expense) and repaid back $97,638 related to this loan advance. This loan is guaranteed by the CEO of the Company and Jonathan Foltz. During the year ended December 31, 2022, interest expense incurred related to this advance amounted to $31,171. In January 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a merchant cash advance agreement with Square Advance. Under the agreement, the Company sold an aggregate of $245,000 in future receivables for a purchase amount of $175,000. The aggregate principal amount is payable in daily instalments totaling $1,884.62 until such time that the obligation is fully satisfied for approximately 130 days. The Company has received $168,000 (net of debt cost fee of $7,000 which was amortized immediately to interest expense) of which $59,749 was used to pay the remaining balance of the First Advance. This loan is guaranteed by the CEO of the Company and Jonathan Foltz. During the three months ended March 31, 2023, interest expense incurred related to these advances amounted to $52,985. As of March 31, 2023 and December 31, 2022, the outstanding balance is $143,555 and $58,533, respectively. EAdvance Services In November 2022, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a purchase and sale of future receipt agreement with EAdvance Services. Under the agreement, the Company sold an aggregate of $213,900 in future receipt or receivables for a purchase amount of $155,000. The aggregate principal amount is payable in daily instalments of $1,782 until such time that the obligation is fully satisfied for approximately 4 months. During the year ended December 31, 2022, the Company received $150,350 (net of debt cost fee of $4,650 which was amortized immediately to interest expense) and repaid back $43,659 related to this loan. This loan is guaranteed by the CEO of the Company. During the year ended December 31, 2022, interest expense incurred related to this advance amounted to $13,592. As of December 31, 2022, the outstanding balance is $124,933. During the three months ended March 31, 2023, repaid back $72,498 related to this loan. During the three months ended March 31, 2023, interest expense incurred related to this advance amounted to $29,450. As of March 31, 2023, the outstanding balance is $81,885. Parkside Funding Group LLC In February 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, executed a purchase and sale of future receipt agreement with Parkside Funding Group LLC. Under the agreement, the Company sold an aggregate of $217,500 in future receipt or receivables for a purchase amount of $150,000. The aggregate principal amount is payable in daily instalments of $1,977 until such time that the obligation is fully satisfied for approximately 4 months. This loan is guaranteed by the CEO of the Company and Jonathan Foltz. During the three months ended March 31, 2023, the Company received $142,500 (net of debt cost fee of $7,500 which was amortized immediately to interest expense) and repaid back $44,546 related to this loan. As of March 31, 2023, the outstanding balance is $105,454. Marcus by Goldman Sachs In February 2023, the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a line of credit agreement with Marcus by Goldman Sachs (“Marcus”) for up to a loan amount of $125,000. The loan bears an annual interest rate of 9.99%. The amount due is 2% of the principal balance plus any fees and amounts that weren’t paid during the prior statement periods. During the repayment period, the amount due is the total outstanding balance at the end of the draw period divided into 26 equal payments that, if made in-full and on-time, bring the balance to zero over the next year. During the three months ended March 31, 2023, the Company has drawn a total loan of $125,000 and repaid back $2,000. As of March 31, 2023, the outstanding balance is $123,828, including accrued interest of $828. |
Notes Payable Disclosure
Notes Payable Disclosure | Mar. 31, 2023 |
Notes | |
Notes Payable Disclosure | Note 9 - Notes Payable Notes payable is summarized below: March 31, 2023 December 31, 2022 (Unaudited) Principal amount $ 1,080,000 $ 962,000 Less: current portion (818,656) (702,504) Notes payable - long term portion $ 261,344 $ 259,496 Minimum principal payments under notes payable are as follows: Year ended December 31, 2023 - remainder $ 829,012 Year ended December 31, 2024 15,492 Year ended December 31, 2025 15,492 Year ended December 31, 2026 15,492 Year ended December 31, 2027 15,492 Year ended December 31, 2028 and thereafter 189,020 Total principal payments $ 1,080,000 On July 6, 2020, entered into a Loan Authorization and Agreement (“SBA Loan Agreement”) with the Small Business Association (“SBA”) in the amount of $114,800 under the SBA’s Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic. Pursuant to the SBA Loan Agreement, the Company received an advance of $114,800, to be used for working capital purposes only. Pursuant to the SBA Loan Agreement, the Company executed; (i) a note for the benefit of the SBA (“SBA Note”), which contains customary events of default; and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of the Company, which also contains customary events of default. Installment payments, including principal and interest, were due monthly beginning July 6, 2021 but were extended by the SBA to July 6, 2022 in the amount of $560 each month for a term of thirty (30) years. In March 2022, SBA extended the payment due date from 24 months to 30 months from the date of the note. Interest accrues on this note at the rate of 3.75%. This note is collateralized by the assets of the Company. The outstanding balances at December 31, 2022 was $114,800 with accrued interest of $11,195. During the three months ended March 31, 2023, a total of $1,680 of installment payments were paid. The outstanding balances at March 31, 2023 was $114,800 with accrued interest of $10,428. Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into a Loan Authorization and Agreement with the SBA, under the SBA’s Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic. On February 10, 2021, upon the acquisition of Aphrodite’s Marketing, the Company assumed an outstanding balance of $150,000 related to this SBA Loan. Pursuant to the SBA Loan Agreement, the Company received an advance of $150,000, to be used for working capital purposes only. Pursuant to the SBA Loan Agreement, the Company executed; (i) a note for the benefit of the SBA, which contains customary events of default; and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of the Company, which also contains customary events of default. The SBA Note bears an interest rate of 3.75% per annum which accrues from the date of the advance. Installment payments, including principal and interest, were due monthly beginning June 24, 2021 but was extended by the SBA to June 24, 2022 in the amount of $731. In March 2022, SBA extended the payment due date from 24 months to 30 months from the date of the note. The outstanding balance at December 31, 2022 was $150,000 with accrued interest of $14,627. During the three months ended March 31, 2023, the Company did not pay the installment payments. The outstanding balance at March 31, 2023 was $150,000 with accrued interest of $15,828. On July 1, 2021, the Company issued a promissory note in the amount of $1,162,000 in connection with the Merger Agreement with GearBubble and is payable to Mr. Donald Wilson who is one of the majority owners of the 49% of GearBubble Tech. The $1,162,000 promissory note is to be paid in 15 equal installments. This note is non-interest bearing and due on demand. Between October 2021 and November 2021, the Company paid a total of $309,867 towards this promissory note. During the three months ended March 31, 2023, the Company has repaid back $154,933 related to promissory note. As of March 31, 2023 and December 31, 2022, the outstanding balance is $697,200 for both periods. The Company negotiated with Mr. Donald Wilson to defer the installment payments in the future. Trillium Partners LP On June 16, 2022, the Company received proceeds related to a loan with Trillium Partners LP in the amount of $100,000. The loan and accrued interest were due on demand. Interest accrued at the rate of 3% per annum. During the three months ended March 31, 2023, the Company reclassed this from a loan to a note payable upon the receipt of a secured promissory note. Accordingly, the Company entered into Secured Promissory Note (the “Secured Note”) in amount of $118,000 and original issue discount of $18,000 for net proceeds of $100,000. The Secured Note was due on February 4, 2023. Such Secure Note is secured by a security interest in the borrower’s existing and future assets, including all rights to received payments (including credit card payments) from the sale of goods or services, inventory, property and equipment, and general intangibles. Principal and interest shall be paid with 16 weekly payments of $7,375 shall be paid to the lender on each Friday starting in the month of July 2022; Upon the occurrence of an event of default, the principal or interest on this note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum. As of March 31, 2023, the principal balance is $118,000 and accrued interest amounted to $2,515 at March 31, 2023. |
Related Party Transactions Disc
Related Party Transactions Disclosure | Mar. 31, 2023 |
Notes | |
Related Party Transactions Disclosure | Note 10 - Related Party Transactions Advances from Chief Executive Officer and Accrued Interest The Company receives periodic advances from the Company’s Chief Executive Officer (“CEO”) based upon the Company’s cash flow needs. At March 31, 2023 and December 31, 2022, $261,810 and $142,854 was due to such officer, respectively. Interest expense was accrued at an interest rate of 5% at March 31, 2023. Interest expense incurred was $2,845 for the year ended December 31, 2022. Interest expense incurred was $6,581 for the three months ended March 31, 2023. During the year ended December 31, 2022, the CEO provided advances to the Company for working capital purposes of $190,000 and the Company repaid $192,493 of these advances. During the three months ended March 31, 2023, the CEO provided advances to the Company for working capital purposes of $144,500 and the Company repaid $32,125 of these advances. Effective February 28, 2010, the Company entered into an employment agreement with the CEO. The agreement, which is for a five-year term, provides for an initial base salary of $175,000 per year with a 3% annual increase thereafter (the “Base Salary”). The CEO is also entitled to certain bonuses based on net profits before taxes and other customary benefits, as defined in the agreement. In addition, since it is understood that the Company is employing the CEO during a time of economic decline throughout the U.S. and at times and from time to time, the Company may not be in a position to pay the full amount of Base Salary owed the CEO it is understood and agreed to by the Board, that as long as the Company is unable to pay the CEO the full amount of his Base Salary that the Board shall issue to him, from time to time, an amount of shares that will allow him to remain in possession of fifty-one percent (51%) of the Company’s then outstanding shares of common stock. Such issuances shall be made to the CEO at any time when his total share holdings are reduced to an amount less than fifty-one percent (51%) as a result of the issuance of shares of common stock made on behalf of the Company. Effective September 1, 2011, the Company authorized and issued 51 shares of Series A Preferred Stock to the Company’s CEO. Additionally, during the year ended December 31, 2021, the Company authorized and issued an additional 24 shares of Series A Preferred Stock to the Company’s CEO in connection with the amended and restated certificate of designation for the Company’s Series A Preferred Stock. In April 2022, the Company accrued bonus compensation of $100,000 to the CEO. During the year ended December 31, 2022, the Company repaid back $126,523 of accrued compensation to CEO. As of March 31, 2023 and December 31, 2022, accrued compensation - CEO amounted $349,264 and $319,640, respectively, as reflected in the unaudited condensed consolidated balance sheets. On July 1, 2021, the Company entered into an Amended and Restated Executive Employment Agreement (“Amended Employment Agreement”) with the CEO of the Company, Berge Abajian (the “Executive”). The term of the Amended Employment Agreement shall be for 5 years and shall be automatically extended for successive periods of 1 year unless terminated by the Company or the Executive. The Executive shall receive a base salary of $250,000 per year and such base salary shall automatically increase in a rate of 3% per annum for each consecutive year after 2021 or at such rates as may be approved by the board of directors of the Company. Upon written request of the Executive, the Company shall pay all or a portion of the base salary owed to Executive in the form of i) a convertible promissory note, or ii) the Company’s common stock or if available, S-8 common stock. Additionally, the Executive is eligible to receive a quarterly bonus at the discretion of the board of directors of the Company. Additionally, the Executive shall be eligible to participate in the Company’s 2021 Stock Incentive Plan. In July 2021, under the terms of the ESOP, the Board of Directors of the Company approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) to the Company’s CEO subject to the Company increasing its authorized shares to 6,000,000,000 shares and subject to the effectiveness of an S-8 Registration Statement covering these shares which was filed with the Securities and Exchange Commission (“SEC”) on September 21, 2022 (see Note 12). Loans Payable The Company’s majority owned subsidiary, Aphrodite’s Marketing, has a loan with Jonathan Foltz, the President and CEO of Digital Age Business. Jonathan Foltz is one of the majority owners of the 49% in Acquisition Sub, Aphrodite’s Marketing. As of March 31, 2023 and December 31, 2022, the outstanding balance was $117,495 and $81,534, respectively. Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, has loan agreements with Nationwide dated in October 2020 and November 2020. Nationwide is owned by the father of Jonathan Foltz (see Note 8). As of December 31, 2022, the outstanding balance is $608,500 including accrued interest of $77,718. As of March 31, 2023, the outstanding balance is $628,187 including accrued interest of $97,406. |
Commitments and Contingencies D
Commitments and Contingencies Disclosure | Mar. 31, 2023 |
Notes | |
Commitments and Contingencies Disclosure | Note 11 - Commitments and Contingencies Litigation The Company is currently not involved in any litigation that we believe could have a material adverse effect on the Company’s financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of the Company or any of the Company’s subsidiaries, threatened against or affecting the Company, the Company’s common stock, any of the Company’s subsidiaries or of the Company’s officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect. Operating Lease Agreements The Company leases retail space at two different locations. The term of the first lease is for a ten-year period from July 2014 to April 2024 starting with a monthly base rent of $1,200. The base rent is subject to an annual increase as defined in the lease agreement. In addition to the monthly base rent, the Company is charged separately for common area maintenance which is considered a non-lease component. The second lease has a contingent rental based on 10% of sales. Contingent rentals are not included in operating lease liabilities. The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease. The Company used incremental borrowing rate of 10% as of January 1, 2019 for operating leases that commenced prior to that date. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. Through the Company’s majority owned subsidiary, Aphrodite’s Marketing, entered into an approximate three-year lease agreement on October 1, 2019, for its office facilities starting with a monthly base rent of $6,582. The base rent is subject to an annual increase as defined in the lease agreement. The Company recorded right-of-use assets and operating lease liabilities of $122,946 related to this lease agreement. The Company used incremental borrowing rate of 8% during year 2021. The Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings. The Company did not renew this lease agreement in October 2022. In March 2023, the Company leases retail space at their 3 rd The following table reconciles the undiscounted future minimum lease payments (displayed by year in aggregate) under non-cancelable operating leases with terms more than one year to the total operating lease liabilities on the unaudited consolidated balance sheet as of March 31, 2023: Year 2023 - remainder $ 33,140 Year 2024 24,465 Year 2025 23,370 Year 2026 23,484 Year 2027 20,841 Year 2028 4,032 Total minimum lease payments 129,332 Less amounts representing interest (19,131) Present value of net minimum lease payments 110,201 Less current portion (32,216) Long-term capital lease obligation $ 77,985 Amended Employment Agreement On July 1, 2021, the Company entered into an Amended and Restated Executive Employment Agreement with the CEO of the Company, Berge Abajian. The term of the Amended Employment Agreement shall be for 5 years and shall be automatically extended for successive periods of 1 year unless terminated by the Company or the Executive. The Executive shall receive a base salary of $250,000 per year and such base salary shall automatically increase in a rate of 3% per annum for each consecutive year after 2021 or at such rates as may be approved by the board of directors of the Company. Upon written request of the Executive, the Company shall pay all or a portion of the base salary owed to Executive in the form of i) a convertible promissory note, or ii) the Company’s common stock or if available, S-8 common stock. Additionally, the Executive is eligible to receive a quarterly bonus at the discretion of the board of directors of the Company. Additionally, the Executive shall be eligible to participate in the Company’s 2021 Stock Incentive Plan. In July 2021, under the terms of the ESOP, the Board of Directors of the Company approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) to the Company’s CEO subject to the Company increasing its authorized shares to 6,000,000,000 shares and subject to the effectiveness of an S-8 Registration Statement covering these shares which was filed with the SEC on September 21, 2022 (see Note 12). |
Stockholders' Equity Note Discl
Stockholders' Equity Note Disclosure | Mar. 31, 2023 |
Notes | |
Stockholders' Equity Note Disclosure | Note 12 - Stockholder’s Equity (Deficit) Employee Stock Ownership Plan On July 9, 2021, the Board of Directors of the Company adopted the Bergio International, Inc. 2021 Stock Incentive Plan (the “ESOP”), under which the Company may award shares of the Company’s Common Stock to employees of the Company and/or its Subsidiaries. The terms of the ESOP allow the Company’s Board of Directors discretion to award the Company’s Common Stock, in the form of options, stock appreciation rights, restricted stock awards, restricted stock units, and performance award shares, to such employees, upon meeting the criteria set forth therein, from time to time. Subject to adjustments as provided in the plan, the shares of common stock that may be issued with respect to awards granted under the plan shall not exceed an aggregate of 1,000,000,000 shares of common stock. The Company shall reserve such number of shares for awards under the plan, subject to adjustments as provided in the plan. The maximum number of shares of common stock under the plan that may be issued as incentive stock options shall be 100,000,000 shares. On July 9, 2021, and under the terms of the ESOP, the Company’s Board of Directors approved the future issuance of 1,000,000 post-split shares (500,000,000 pre-split shares) of the Company’s Common Stock to the Company’s CEO, Berge Abajian, subject to the Company increasing its total authorized shares of common stock to 6,000,000,000 which was increased in July 2021 and subject to the effectiveness of an S-8 Registration Statement covering these shares with the SEC. As of December 31, 2021, the Company did not meet the prerequisite related to the effectiveness of an S-8 Registration Statement. As of September 30, 2022, the Company met the prerequisite related to the effectiveness of an S-8 Registration Statement. The 1,000,000 post-split shares (500,000,000 pre-split shares) of common stock have not been issued to the CEO and have been recorded as common stock issuable as of March 31, 2023 and December 31, 2022. Preferred Stock The Company has authorized the issuance of 10,000,000 shares of preferred stock. The Company’s board of directors is authorized, at any time, and from time to time, to provide for the issuance of shares of preferred stock in one or more series, and to determine the designations, preferences, limitations and relative or other rights of the preferred stock or any series thereof. Certificate of Designation of Series A Preferred Stock In September 2011, the Company filed a Certificate of Designation for Series A Preferred Stock with the Wyoming Secretary of State, and designated 51 shares of preferred stock as Series A Preferred Stock. In February 2021, the Company filed an amended and restated certificate of designation for the Company’s Series A Preferred Stock increasing the number of shares to 75 shares. Designation Dividends Liquidation Voting Rights Conversion As of March 31, 2023 and December 31, 2022, there were 75 shares of Series A Preferred Stock issued and outstanding. The Company’s CEO owns 75 shares of shares of the Series A Preferred Stock. Certificate of Designation of Series B 2% Convertible Preferred Stock On February 10, 2021, the Company filed a Certificate of Designation for Series B Convertible Preferred Stock (the “Certificate of Designations”) with the Wyoming Secretary of State, designating 4,900 shares of preferred stock as Series B Convertible Preferred Stock. Designation Dividends “Requisite Holders), redeem, repurchase or otherwise acquire directly or indirectly any Junior Securities (as defined in Section 7), nor shall the Company directly or indirectly pay or declare any dividend or make any distribution upon, nor shall any distribution be made in respect of, any Junior Securities, nor shall any monies be set aside for or applied to the purchase or redemption (through a sinking fund or otherwise) of any Junior Securities. Liquidation Voting Rights Conversion at Option of Holder As of March 31, 2023 and December 31, 2022, there were 3,000 shares of Series B Convertible Preferred Stock issued and outstanding. Certificate of Designation of Series C 2% Convertible Preferred Stock On February 10, 2021, the Company filed a Certificate of Designation for Series C Convertible Preferred Stock with the Wyoming Secretary of State, which designated 5 shares of preferred stock as Series C Convertible Preferred Stock. In April 2022, the Company increased the designation to 5,000,000 authorized shares upon filing an Amended and Restated Certificate of Designation, Preference and Rights of the Series C Convertible Preferred. Designation Dividends Liquidation other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the holders of Series C Preferred Stock shall be distributed among the holders of Series C Preferred Stock ratably in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full. Voting Rights Conversion at Option of Holder (a) Conversion at Option of holder On February 10, 2021, the Company issued 5 Series C Convertible Preferred Stock in connection with the acquisition of Aphrodite’s Marketing. On April 18, 2022, the Company received a notice of conversion from the holder of the 5 shares of Series C Convertible Preferred Stock converting into 271,793 post-split shares (135,896,517 pre-split shares) of the Company’s common stock. As of March 31, 2023 and December 31, 2022, there were no shares of Series C Convertible Preferred Stock issued and outstanding. Certificate of Designation of Series D 3% Convertible Preferred Stock On January 4, 2022, the Company filed a Certificate of Designation for Series D Convertible Preferred Stock with the Wyoming Secretary of State, designating 2,500,000 shares of preferred stock as Series D Convertible Preferred Stock. In February 2022, the Company filed an Amended and Restated Certificate of Designation, Preference and Rights of the Series D Convertible Preferred Stock. The Company amended and cancelled the mandatory provision and also amended the fixed conversion price from $0.50 to $0.40 post-split ($0.001 to $0.0008 pre-split). In April 2022, the Company filed another Amended and Restated Certificate of Designation, Preference and Rights of the Series D Convertible Preferred Stock whereby the Company amended the fixed conversion price from $0.40 to $0.25 post-split ($0.0008 to $0.0005 pre-split). In October 2022, the fixed conversion price was adjusted from $0.25 to $0.10 post-split ($0.0005 to $0.0002 pre-split) due to the subsequent sale of the Company’s common stock at $0.10 post-split ($0.0002 pre-split) per share in October 2022. Designation Dividends Liquidation Voting Rights Conversion price On March 24, 2023, the Company and Trillium Partners, L.P. (the “Holder”) entered into an Exchange Agreement whereby the Holder will exchange (the “Exchange”) 317,000 Series D Preferred Stock of the Company for 317,000 Series E Preferred Stock of the Company for shares of the Company’s Series E Preferred stock which shall have the rights and preferences in the Certificate of Designation of the Series E Preferred Stock as discussed above and for no other consideration. As of March 31, 2023 and December 31, 2022, there were 957,000 and 1,274,000 shares of Series D Convertible Preferred Stock issued and outstanding, respectively. Certificate of Designation of Series E 3% Preferred Stock On March 24, 2023, the Company filed a Certificate of Designation for Series E Preferred Stock with the Wyoming Secretary of State, designating 2,500,000 shares of preferred stock as Series E Preferred Stock. Designation Voting Rights Dividends Liquidation No Conversion Right Mandatory Redemption by the Company Default Adjustment As of March 31, 2023, there were 317,000 shares of Series E Preferred Stock issued and outstanding. The Series E preferred shares are mandatorily redeemable by the Company and are therefore classified as mezzanine debt for $317,000 as reflected in the unaudited condensed consolidated balance sheet. Dividends on Preferred Stock As of March 31, 2023 and December 31, 2022, accrued and unpaid dividends related to the Series B, C, D and E Preferred Stock amounted $43,101 and $32,198, respectively and was included in accounts payable and accrued liabilities as reflected in the unaudited condensed consolidated balance sheets. During the three months ended March 31, 2023 and 2022, total dividends recorded amounted to $10,903 and $6,563, respectively as reflected in the unaudited condensed consolidated statements of stockholders’ equity. Common Stock Issued and Issuable On March 24, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The amendment reflected the increase in the authorized shares of common stock from 1,000,000,000 shares to 3,000,000,000 shares. On July 9, 2021, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation. The Amendment reflected the increase in the authorized shares of common stock from 3,000,000,000 shares to 6,000,000,000 shares. On April 28, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 6,000,000,000 shares to 9,000,000,000 shares. On September 26, 2022, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 9,000,000,000 shares to 15,000,000,000 shares. In March 2023, the Company filed, with the Wyoming Secretary of State, a Certificate of Amendment, to amend its Articles of Incorporation and reflected the increase in the authorized shares of common stock from 15,000,000,000 shares to 25,000,000,000 shares. In the same Articles of Amendment, the Company filed for a reverse split of the Company’s common stock, at the ratio of 1 for 500, which was declared effective by FINRA effective April 17, 2023. All share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the unaudited condensed consolidated financial statements to reflect the Reverse Stock Split. Common Stock Warrants A summary of the Company’s outstanding stock warrants is presented below: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at December 31, 2021 1,596,483 $ 1.00 4.26 Granted 1,500,000 0.25 7.00 Exercised (500) 0.50 2.40 Balance at December 31, 2022 3,095,983 $ 0.70 4.71 Granted - - - Exercised - - - Balance at March 31, 2023 3,095,983 $ 0.70 4.46 Warrants exercisable at March31, 2023 3,095,983 $ 0.70 4.46 At March 31, 2023, the aggregate intrinsic value of warrants outstanding was $0. |
Subsequent Events Disclosure
Subsequent Events Disclosure | Mar. 31, 2023 |
Notes | |
Subsequent Events Disclosure | Note 13 - Subsequent Events 1800 Diagonal Lending, LLC On April 24, 2023, the Company entered into an 8% convertible note in the amount of $70,481 less legal and financing costs of $5,481 for net proceeds of $65,000 with 1800 Diagonal Lending, LLC (“1800 Diagonal”). The principal and accrued interest are payable on or before April 24, 2024. Any amount of principal or interest on this note which was not paid when due shall bear interest at the rate of twenty-two percent (22%) per annum from the due date thereof until the same is paid. At the option of the Holder, but not before 180 days from the date of issuance, the holder may elect to convert all or part of the convertible into the Company’s common stock. The conversion price was 65% multiplied by the average three lowest trading price (representing a discount rate of 35%) during the previous 15 trading day trading day period ending on the latest complete trading day prior to the date of this note. During the first 90 to 180 days following the date of these notes, the Company had the right to prepay the principal and accrued but unpaid interest due together with any other amounts that the Company may owe the holder under the terms of the note, at a premium ranging from 115% to 120% as defined in the note agreement. After this initial 180-day period, the Company does not have a right to prepay such notes. Other than as described above, the above 1800 Diagonal notes contain certain events of default, including failure to timely issue shares upon receipt of a notice of conversion, as well as certain customary events of default, including, among others, breach of covenants, representations or warranties, insolvency, bankruptcy, liquidation, and failure by the Company to pay the principal and interest due under the Note. Additional events of default shall include, among others: delisting of common stock, failure to comply with the Exchange Act, financial statement restatement, replacement of transfer agent, and cross-default. In the event that the Company fails to deliver the shares of common stock issuable upon conversion of principal or interest under the above 1800 Diagonal note within three business days of a notice of conversion by 1800 Diagonal, the Company shall incur a penalty of $2,000 per day; provided, however, that such fee shall not be due if the failure to deliver the shares is a result of a third party, such as the transfer agent. Upon the occurrence and during the continuation of certain events of default, the above 1800 Diagonal note will become immediately due and payable and the Company will pay 1800 Diagonal in full satisfaction of its obligations in the amount equal to 150% of an amount equal to the then-outstanding principal amount of the above 1800 Diagonal notes, plus any interest accrued upon such event of default or prior events of default (the “Default Amount”). Further, upon the occurrence and during the continuation of any event of default specified in section 3.2 as defined in the 1800 Diagonal note agreements, which relates to the failure to issue shares of the Company’s Common Stock upon the conversion of 1800 Diagonal notes, such above 1800 Diagonal notes shall become immediately due and payable in an amount equal to the Default Amount multiplied by two. On April 24, 2023, the Company entered into another 13% convertible note in an amount of $75,180 less legal and financing costs of $10,180 for net proceeds of $65,000 with 1800 Diagonal Lending, LLC (the “1800 note”). The principal and accrued interest is payable on or before April 24, 2024. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of twenty-two percent (22%) per annum from the due date thereof until the same is paid. The Company has the right to prepay in full at any time with no prepayment penalty. The note bears interest at a rate of 13% per annum which is equivalent to $9,773 interest. The principal amount and the interest is due and payable in nine equal monthly payments of $9,550, commencing on June 15, 2023 with eight subsequent payments each month thereafter. At any time following an event of default under Article III of the 1800 note, it becomes convertible, in whole or in part, into shares of Common Stock at the option of 1800 Diagonal, at any time and from time to time thereafter (subject to the beneficial ownership limitations set forth in Section 5d thereof). The conversion price of the 1800 note is 60% multiplied by the lowest trading price during the 20 trading days prior to the conversion date (representing a 40% discount). Upon the occurrence and during the continuation of any event of default, the 1800 note shall become immediately due and payable and the borrower shall pay to the holder, in full satisfaction of its obligations hereunder, an amount equal to 150% (“Default Percentage”) times the sum of (w) the then outstanding principal amount of this note plus (x) accrued and unpaid interest on the unpaid principal amount of this note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the holder pursuant to Article IV (the then outstanding principal amount of this note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the holder shall be entitled to exercise all other rights and remedies available at law or in equity. Any failure to deliver shares in conversion following a default shall result in a unilateral increase of the Default Percentage to 200%. If the borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, to convert the balance owed pursuant to the note including the Default Amount into shares of common stock of the Company. First Amendment to Advance Agreement On April 21, 2023, the Company, together with its majority owned subsidiaries, Aphrodite Marketing and GearBubble Tech (collectively the “Borrower”), entered into an Amendment Agreement (the “Amendment”) with Trillium Partners L.P to amend the Advance Agreement dated October 27, 2021 (the “Agreement”). Both parties agreed to amend the Agreement in section 10 of the Agreement including among others, a default interest rate of 22% per annum, conversion right to convert all or any part of the outstanding and unpaid amounts of the promissory notes, and variable conversion price of 50% of the lowest trading price during the 30-trading day period prior to conversion date. In the event that the Company fails to deliver the shares of common stock issuable upon conversion of principal or interest under of the promissory note within three business days of a notice of conversion, the Company shall incur a penalty of $2,000 per day; provided, however, that such fee shall not be due if the failure to deliver the shares is a result of a third party, such as the transfer agent. Common Stock for Debt Conversion In April 2023, the Company issued 600,000 shares of its common stock at an average contractual conversion price of approximately $0.006 as a result of the conversion of principal of $3,510 underlying certain outstanding convertible notes converted during such period. In May 2023, the Company issued 630,973 shares of its common stock at an average contractual conversion price of approximately $0.004 as a result of the conversion of accrued interest of $2,524 underlying certain outstanding promissory note converted during such period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: Consolidation, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Consolidation, Policy | Principles of Consolidation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States which includes the Company, its wholly-owned and majority owned subsidiaries as of March 31, 2023. All significant inter-company accounts and transactions have been eliminated. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Use of Estimates, Policy | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. 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 reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from estimates. Significant estimates during the three months ended March 31, 2023 and 2022 include the estimates of useful lives of property and equipment and intangible assets, valuation of the operating lease liability and related right-of-use asset, valuation of derivatives, allowance for uncollectable receivables, valuation of equity based instruments issued for other than cash, the fair value of warrants issued with debt, the valuation allowance on deferred tax assets, and stock-based compensation. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies: Revenue Recognition, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Revenue Recognition, Policy | Revenue Recognition The Company applies ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). ASC 606 establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. This standard requires an entity to 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 in exchange for those goods or services and also requires certain additional disclosures. ASC 606 requires us to identify distinct performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. When distinct performance obligations exist, the Company allocates the contract transaction price to each distinct performance obligation. The standalone selling price, or our best estimate of standalone selling price, is used to allocate the transaction price to the separate performance obligations. The Company recognizes revenue when, or as, the performance obligation is satisfied. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Also, significant judgment may be required to determine the allocation of transaction price to each distinct performance obligation. Generally, revenues are recognized at the time of shipment to the customer with the price being fixed and determinable and collectability assured, provided title and risk of loss is transferred to the customer. Provisions, when appropriate, are made where the right to return exists. Shipping and handling costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales. The Company’s subsidiary, GearBubble Tech, recognizes revenue from three sources: (1) e-commerce revenue (2) platform subscription fees and (3) partner and services revenue. • The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. The ecommerce sellers have no further obligation to the customer after the promised goods are transferred to the customer. Based on its evaluation of these factors, we have determined we are the principal in these arrangements. Through our suppliers, we have the ability to control the promised goods and as a result, the Company records ecommerce sales on a gross basis. The Company refunds the full cost of the merchandise returned and all original shipping charges if the returned item is defective or we or our partners have made an error, such as shipping the wrong product. If the return is not a result of a product defect or a fulfillment error and the customer initiate a return of an unopened item within 30 days of delivery, for most products we refund the full cost of the merchandise minus the original shipping charge and actual return shipping fees. If our customer returns an item that has been opened or shows signs of wear, the Company issues a partial refund minus the original shipping charge and actual return shipping fees. • • |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies: Cost of revenues, policy (Policies) | Mar. 31, 2023 |
Policies | |
Cost of revenues, policy | Cost of revenues Cost of revenue consists primarily of the cost of the merchandise, shipping fees, credit card processing services, fulfillment cost, ecommerce sellers’ pay-out; costs associated with operation and maintenance of the Company’s platform. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies: Marketing policy (Policies) | Mar. 31, 2023 |
Policies | |
Marketing policy | Marketing The Company applies ASC 720 “Other Expenses” to account for marketing costs. Pursuant to ASC 720-35-25-1, the Company expenses marketing costs as incurred. Marketing costs include advertising and related expenses for third party personnel engaged in marketing and selling activities, including sales commissions, and third-party e-commerce platform fees and selling fees. The Company directs its customers to the Company’s ecommerce platform through social media, digital marketing, and promotional campaigns. Marketing costs were $360,180 and $721,104 for the three months ended March 31, 2023 and 2022, are included in selling and marketing expenses on the unaudited condensed consolidated statement of operations. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies: Shipping and Handling Cost, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Shipping and Handling Cost, Policy | Shipping and Handling Costs The Company accounts for shipping and handling fees in accordance with ASC 606. While amounts charged to customers for shipping products are included in revenues, the related costs of shipping products to customers are classified in selling and marketing expenses as incurred. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies: Reclassifications, policy (Policies) | Mar. 31, 2023 |
Policies | |
Reclassifications, policy | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassified amounts have no impact on the Company’s previously reported financial position or results of operations and relates to the presentation of certain selling and marketing expenses previously included in cost of revenues. |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies: Fair Value of Financial Instruments, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments FASB ASC 820 - Fair Value Measurements and Disclosures, 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. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to the Company on March 31, 2023. Accordingly, the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1: Level 2: Level 3: The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash, prepaid expenses and other current assets, accounts payable and accrued liabilities, and accrued compensation approximate their fair market value based on the short-term maturity of these instruments. In August 2018, the FASB issued ASU 2018-13,” Changes to Disclosure Requirements for Fair Value Measurements”, which will improve the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements, and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Upon adoption, this guidance did not have a material impact on its unaudited condensed consolidated financial statements. Assets or liabilities measured at fair value or a recurring basis included embedded conversion options in convertible debt and convertible preferred stock and were as follows at: March 31, 2023 December 31, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total derivative liabilities $ - $ - $ 252,659 $ - $ - $ 116,508 ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding equity instruments. |
Summary of Significant Accou_10
Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash equivalents are comprised of certain highly liquid instruments with a maturity of three months or less when purchased. The Company did not have any cash equivalents on hand at March 31, 2023 and December 31, 2022. The Company places its cash with high credit quality financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. To reduce its risk associated with the failure of such financial institutions, the Company evaluates, at least annually, the rating of the financial institutions in which it holds deposits. At March 31, 2023 and December 31, 2022, the Company did not have cash in excess of FDIC limits. |
Summary of Significant Accou_11
Summary of Significant Accounting Policies: Accounts Receivable, policy (Policies) | Mar. 31, 2023 |
Policies | |
Accounts Receivable, policy | Accounts Receivable The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current credit worthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for and payments from its customers and maintains provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. While such credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. An allowance for doubtful accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company determines the adequacy of this allowance by regularly reviewing the composition of its accounts receivable aging and evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic circumstance. While credit losses have historically been within the Company’s expectation and the provision established, the Company cannot guarantee that this will continue. As of March 31, 2023 and December 31, 2022, the allowance for doubtful accounts was $0 for both periods. |
Summary of Significant Accou_12
Summary of Significant Accounting Policies: Inventory, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Inventory, Policy | Inventory Inventories consist primarily of finished goods and are stated at the lower of cost or market. Cost is determined using the weighted average method, and average cost is recomputed after each inventory purchase or sale. Inventories are written down if the estimated net realizable value is less than the recorded value, if appropriate. |
Summary of Significant Accou_13
Summary of Significant Accounting Policies: Long-Lived Assets, policy (Policies) | Mar. 31, 2023 |
Policies | |
Long-Lived Assets, policy | Long-Lived Assets The Company assesses the recoverability of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment losses were recognized for the three months ended March 31, 2023 and 2022. |
Summary of Significant Accou_14
Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | Mar. 31, 2023 |
Policies | |
Property, Plant and Equipment, Policy | Property and equipment Property is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets, generally three to five years. |
Summary of Significant Accou_15
Summary of Significant Accounting Policies: Stock-based compensation, policy (Policies) | Mar. 31, 2023 |
Policies | |
Stock-based compensation, policy | Stock-based compensation Stock-based compensation is accounted for based on the requirements of ASC 718 - “Compensation-Stock Compensation”, which requires recognition in the financial statements of the cost of employee, non-employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. |
Summary of Significant Accou_16
Summary of Significant Accounting Policies: Derivative Liabilities, policy (Policies) | Mar. 31, 2023 |
Policies | |
Derivative Liabilities, policy | Derivative Liabilities The Company has certain financial instruments that are embedded derivatives associated with capital raises and acquisition (see Note 13). The Company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815-10 – Derivative and Hedging – Contract in Entity’s Own Equity. This accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment. In July 2017, FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features. These amendments simplify the accounting for certain financial instruments with down-round features. The amendments require companies to disregard the down-round feature when assessing whether the instrument is indexed to its own stock, for purposes of determining liability or equity classification. For public business entities, the amendments in Part I of the ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. |
Summary of Significant Accou_17
Summary of Significant Accounting Policies: Concentration Risk, policy (Policies) | Mar. 31, 2023 |
Policies | |
Concentration Risk, policy | Concentration Risk Concentration of Revenues For the three months ended March 31, 2023 and 2022, no customer accounted for over 10% of total revenues. Concentration of Purchases The Company purchased approximately 18% of its finished products from one vendor during the three months ended March 31, 2023. The Company purchased approximately 44% of its finished products from three vendors (15%, 19% and 10%) during the three months ended March 31, 2022. Concentration of Accounts Receivable As of March 31, 2023, accounts receivable amounted to $127,200 and two customers represented 79% (44% and 35%) of this balance. As of December 31, 2022, total accounts receivable amounted to $119,931 and two customers represented 90% (60% and 30%) of this balance. |
Summary of Significant Accou_18
Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies) | Mar. 31, 2023 |
Policies | |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
Summary of Significant Accou_19
Summary of Significant Accounting Policies: Fair Value of Financial Instruments, Policy: Schedule of Fair Value Derivative Liabilities (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Fair Value Derivative Liabilities | March 31, 2023 December 31, 2022 Description Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Total derivative liabilities $ - $ - $ 252,659 $ - $ - $ 116,508 |
Property, Plant and Equipment_2
Property, Plant and Equipment Disclosure: Property, Plant and Equipment Schedule (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Property, Plant and Equipment Schedule | March 31, 2023 December 31, 2022 Leasehold improvements $ 391,722 $ 391,722 Office and computer equipment 581,352 581,352 Selling equipment 8,354 8,354 Furniture and fixtures 25,411 20,511 Total at cost 1,006,839 1,001,939 Less: Accumulated depreciation (961,556) (951,775) $ 45,283 $ 50,164 |
Net Loss per Share Disclosure_
Net Loss per Share Disclosure: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | March 31, 2023 December 31, 2022 (Unaudited) Common Stock Equivalents: Stock Warrants 3,095,983 3,095,983 Convertible Preferred Stock 13,265,856 16,735,086 Convertible Notes 2,438,462 24,384,615 Total 18,800,301 44,215,684 |
Convertible Notes Payable Dis_2
Convertible Notes Payable Disclosure: Convertible Debt Scedule (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Convertible Debt Scedule | March 31, 2023 December 31, 2022 (Unaudited) Principal amount $ 79,250 $ 79,250 Less: unamortized debt discount (40,386) (59,926) Convertible notes payable, net $ 38,864 $ 19,324 |
Derivative Liability Disclosu_2
Derivative Liability Disclosure: Schedule of Derivative Liabilities at Fair Value (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Derivative Liabilities at Fair Value | Fair Value of Liability for Derivative Instruments Balance at December 31, 2021 $ 978,232 Initial valuation of derivative liabilities included in debt discount 201,250 Initial valuation of derivative liabilities related to issuance of Series B and C Preferred Stock 37,706 Initial valuation of derivative liabilities included in derivative expense (405,700) Reclassification of derivative liabilities to gain from extinguishment of debt (67,284) Change in fair value of derivative liabilities (627,696) Balance at December 31, 2022 116,508 Change in fair value of derivative liabilities 136,151 Balance at March 31, 2023 $ 252,659 |
Derivative Liability Disclosu_3
Derivative Liability Disclosure: Schedule of Derivatives Instruments Fair Value (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Derivatives Instruments Fair Value | Initial Valuations (on new derivative instruments entered into during the three months ended March 31, 2023) March 31, 2023 Volatility - 628% to 637% Expected Remaining Term (in years) - 0.08 to 0.51 Risk Free Interest Rate - 4.74 to 4.94% Expected dividend yield - None |
Loans Payable Disclosure_ Sched
Loans Payable Disclosure: Schedule of Debt (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Debt | March 31, 2023 December 31, 2022 (Unaudited) Principal amount of loans and advances $ 938,359 $ 839,613 Accrued interest 344,210 232,476 Loans and advances payable $ 1,282,569 $ 1,072,089 |
Notes Payable Disclosure_ Sched
Notes Payable Disclosure: Schedule of Notes Payable (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Schedule of Notes Payable | March 31, 2023 December 31, 2022 (Unaudited) Principal amount $ 1,080,000 $ 962,000 Less: current portion (818,656) (702,504) Notes payable - long term portion $ 261,344 $ 259,496 |
Notes Payable Disclosure_ Minim
Notes Payable Disclosure: Minimum principal payments under notes payable (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Minimum principal payments under notes payable | Year ended December 31, 2023 - remainder $ 829,012 Year ended December 31, 2024 15,492 Year ended December 31, 2025 15,492 Year ended December 31, 2026 15,492 Year ended December 31, 2027 15,492 Year ended December 31, 2028 and thereafter 189,020 Total principal payments $ 1,080,000 |
Commitments and Contingencies_2
Commitments and Contingencies Disclosure: Lessee, Operating Lease, Schedule (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Lessee, Operating Lease, Schedule | Year 2023 - remainder $ 33,140 Year 2024 24,465 Year 2025 23,370 Year 2026 23,484 Year 2027 20,841 Year 2028 4,032 Total minimum lease payments 129,332 Less amounts representing interest (19,131) Present value of net minimum lease payments 110,201 Less current portion (32,216) Long-term capital lease obligation $ 77,985 |
Stockholders' Equity Note Dis_2
Stockholders' Equity Note Disclosure: Share-Based Payment Arrangement, Option, Activity (Tables) | Mar. 31, 2023 |
Tables/Schedules | |
Share-Based Payment Arrangement, Option, Activity | Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at December 31, 2021 1,596,483 $ 1.00 4.26 Granted 1,500,000 0.25 7.00 Exercised (500) 0.50 2.40 Balance at December 31, 2022 3,095,983 $ 0.70 4.71 Granted - - - Exercised - - - Balance at March 31, 2023 3,095,983 $ 0.70 4.46 Warrants exercisable at March31, 2023 3,095,983 $ 0.70 4.46 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation Disclosure (Details) - USD ($) | 3 Months Ended | |||||||||
Jul. 03, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 01, 2023 | Sep. 26, 2022 | Apr. 28, 2022 | Jul. 09, 2021 | Mar. 24, 2021 | Feb. 20, 2021 | Feb. 09, 2021 | |
Business acquisition interest acquired | 51% | 51% | 51% | |||||||
Total selling percentage | 100% | |||||||||
Purchase price (in Dollars) | $ 3,162,000 | |||||||||
Installment, description | a) $2,000,000 (which was paid in cash at Closing), b) $1,162,000 to be paid in 15 equal installments, and c) 49,000 of the 100,000 authorized shares of the Merger Sub, such that upon the Closing, 51% of the Merger Sub shall be owned by the Company, and 49% of the Merger Sub shall be owned by the GearBubble Shareholders. | |||||||||
Increase in authorized common shares | 25,000,000,000 | 15,000,000,000 | 9,000,000,000 | 6,000,000,000 | 3,000,000,000 | |||||
Reverse Stock Split | 1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023. | |||||||||
Non-controlling interest balance (in Dollars) | $ 314,920 | $ 492,725 | ||||||||
Aphrodite S Marketing | ||||||||||
Non-controlling interest balance (in Dollars) | $ 1,860,309 | $ 1,545,389 |
Going Concern Disclosure (Detai
Going Concern Disclosure (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 30, 2023 | |
Details | |||
Net income (loss) attributable to Bergio International, Inc. | $ 667,055 | $ 1,585,586 | |
NET CASH USED IN OPERATING ACTIVITIES | 656,496 | $ 1,071,273 | |
Accumulated deficit | 20,283,316 | $ 19,605,358 | |
Working capital (deficit) | $ 1,753,346 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies: Marketing policy (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Details | ||
Marketing costs | $ 360,180 | $ 721,104 |
Summary of Significant Accou_21
Summary of Significant Accounting Policies: Fair Value of Financial Instruments, Policy: Schedule of Fair Value Derivative Liabilities (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Total derivative liabilities | $ 252,659 | $ 116,508 |
Summary of Significant Accou_22
Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Details) | Mar. 31, 2023 USD ($) |
Details | |
Cash, FDIC Insured Amount | $ 250,000 |
Summary of Significant Accou_23
Summary of Significant Accounting Policies: Concentration Risk, policy (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Concentration risk percentage, purchases | 18% | 44% |
Total accounts receivable | $ 127,200 | $ 119,931 |
Concentration risk percentage, accounts receivable | 79% | 90% |
Property, Plant and Equipment_3
Property, Plant and Equipment Disclosure: Property, Plant and Equipment Schedule (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Leasehold improvements, gross | $ 391,722 | $ 391,722 |
Office and computer equipment, gross | 581,352 | 581,352 |
Selling equipment, gross | 8,354 | 8,354 |
Furniture and fixtures, gross | 25,411 | 20,511 |
Total at cost, gross | 1,006,839 | 1,001,939 |
Less: Accumulated depreciation (property and equipment) | (961,556) | (951,775) |
Property and equipment, net | $ 45,283 | $ 50,164 |
Property, Plant and Equipment_4
Property, Plant and Equipment Disclosure (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Details | ||
Depreciation, Depletion and Amortization Expense | $ 9,781 | $ 10,557 |
Net Loss per Share Disclosure_2
Net Loss per Share Disclosure: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18,800,301 | 44,215,684 |
Stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,095,983 | 3,095,983 |
Convertible Preferred Stock amount | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,265,856 | 16,735,086 |
Convertible Notes amount | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,438,462 | 24,384,615 |
Convertible Notes Payable Dis_3
Convertible Notes Payable Disclosure: Convertible Debt Scedule (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Principal amount of debt | $ 79,250 | $ 79,250 |
Less: unamortized debt discount | (40,386) | (59,926) |
Convertible notes payable, net | $ 38,864 | $ 19,324 |
Convertible Notes Payable Dis_4
Convertible Notes Payable Disclosure (Details) - USD ($) | 3 Months Ended | ||
Oct. 03, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Boot Capital, convertible note Oct 3, 2022 | |||
Convertible notes interest rate | 8% | ||
Convertible note amount | $ 79,250 | ||
Legal and financing costs | 4,250 | ||
Net proceeds from debt | $ 75,000 | ||
Interest rate, when not paid | 22% | ||
Conversion price percentage | 65% | ||
Discount rate percentage | 35% | ||
Outstanding convertible note balance | $ 79,250 | ||
Accrued interest on debt | 3,109 | $ 1,546 | |
All convertible notes | |||
Amortization interest expense | $ 19,541 | $ 256,765 |
Derivative Liability Disclosu_4
Derivative Liability Disclosure (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 | Dec. 31, 2021 |
Derivative Liability | $ 252,659 | $ 116,508 | $ 978,232 |
DL from convertible debt | |||
Derivative Liability | 119,519 | 108,594 | |
DL from Aphrodite Acquisition | |||
Derivative Liability | $ 133,140 | $ 7,914 |
Derivative Liability Disclosu_5
Derivative Liability Disclosure: Schedule of Derivative Liabilities at Fair Value (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 30, 2023 | Dec. 31, 2021 | |
Details | ||||
Derivative Liability | $ 252,659 | $ 116,508 | $ 978,232 | |
Initial valuation of derivative liabilities included in debt discount | $ 201,250 | |||
Initial valuation of derivative liabilities related to issuance of Preferred Stock | 37,706 | |||
Initial valuation of derivative liabilities included in derivative expense | (405,700) | |||
Reclassification of derivative liabilities to gain from extinguishment of debt | (67,284) | |||
Change in fair value of derivative liabilities | $ 136,151 | $ 627,696 |
Loans Payable Disclosure_ Sch_2
Loans Payable Disclosure: Schedule of Debt (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Loans principal amount | $ 938,359 | $ 839,613 |
Loans payable accrued interest | 344,210 | 232,476 |
Loans payable and accrued interest, net | $ 1,282,569 | $ 1,072,089 |
Loans Payable Disclosure (Detai
Loans Payable Disclosure (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 30, 2023 | Feb. 02, 2023 | Jun. 16, 2022 | |
Interest expense | $ 157,458 | $ 1,095,233 | ||||
Trillium Partners, loan payable, June 16, 2022 | ||||||
Amount of debt entered | 100,000 | $ 100,000 | ||||
Loan percentage rate | 3% | |||||
Accrued interest payable | 4,340 | |||||
Loan from Jonathan Foltz, Feb 10, 2021 | ||||||
Loan debt assumed | $ 75,500 | |||||
Proceeds from loan | 37,572 | 90,150 | ||||
Payments on loan | 1,611 | 25,239 | ||||
Loan payable principal | 117,495 | $ 81,534 | ||||
Loans from Nationwide, Feb 10, 2021 | ||||||
Accrued interest payable | 97,406 | 77,718 | ||||
Loan debt assumed | 545,720 | |||||
Payments on loan | 150,000 | |||||
Loan payable principal | 628,187 | 608,500 | ||||
Loan from Amazon, July 2022 | ||||||
Accrued interest payable | 2,532 | |||||
Proceeds from loan | 64,000 | |||||
Payments on loan | 11,085 | 55,531 | ||||
Loan payable principal | 0 | 11,001 | ||||
Line of credit from Bluevine, August 2022 | ||||||
Proceeds from loan | 200,000 | |||||
Payments on loan | 80,424 | 112,412 | ||||
Loan payable principal | 82,164 | 87,588 | ||||
Merchant cash advance from Square Advance, Sept 2022 | ||||||
Proceeds from loan | 118,750 | |||||
Payments on loan | 97,638 | |||||
Payments to acquire loan receivables | 174,875 | |||||
Proceeds from sale of loan receivables | 125,000 | |||||
Loan debt cost fee | 6,250 | |||||
Interest expense | 31,171 | |||||
Merchant cash advance from Aphrodite Jan 2023 | ||||||
Proceeds from loan | 168,000 | |||||
Loan payable principal | 143,555 | 58,533 | ||||
Payments to acquire loan receivables | 245,000 | |||||
Proceeds from sale of loan receivables | 175,000 | |||||
Loan debt cost fee | 7,000 | |||||
Interest expense | 52,985 | |||||
Advance from EAdvance Services, Nov 2022 | ||||||
Proceeds from loan | 150,350 | |||||
Payments on loan | 72,498 | 43,659 | ||||
Loan payable principal | 81,885 | $ 124,933 | ||||
Payments to acquire loan receivables | 213,900 | |||||
Proceeds from sale of loan receivables | 155,000 | |||||
Loan debt cost fee | 4,650 | |||||
Interest expense | 29,450 | $ 13,592 | ||||
Parkside Funding Group, Feb 2023 | ||||||
Proceeds from loan | 142,500 | |||||
Payments on loan | 44,546 | |||||
Loan payable principal | 105,454 | |||||
Payments to acquire loan receivables | 217,500 | |||||
Proceeds from sale of loan receivables | 150,000 | |||||
Loan debt cost fee | 7,500 | |||||
Marcus by Goldman Sachs, Feb 2023 | ||||||
Amount of debt entered | $ 125,000 | |||||
Accrued interest payable | 828 | |||||
Proceeds from loan | 125,000 | |||||
Payments on loan | 2,000 | |||||
Loan payable principal | $ 123,828 |
Notes Payable Disclosure_ Sch_2
Notes Payable Disclosure: Schedule of Notes Payable (Details) - USD ($) | Mar. 31, 2023 | Mar. 30, 2023 |
Details | ||
Notes payable gross | $ 1,080,000 | $ 962,000 |
Less: Notes Payable current portion | (818,656) | (702,504) |
Notes payable - long-term | $ 261,344 | $ 259,496 |
Notes Payable Disclosure_ Min_2
Notes Payable Disclosure: Minimum principal payments under notes payable (Details) | Mar. 31, 2023 USD ($) |
Minimum principal payments, notes payable | $ 1,080,000 |
Minimum payments, Dec 31, 2023 | |
Minimum principal payments, notes payable | 829,012 |
Minimum payments, Dec 31, 2024 | |
Minimum principal payments, notes payable | 15,492 |
Minimum payments, Dec 31, 2025 | |
Minimum principal payments, notes payable | 15,492 |
Minimum payments, Dec 31, 2026 | |
Minimum principal payments, notes payable | 15,492 |
Minimum payments, Dec 31, 2027 | |
Minimum principal payments, notes payable | 15,492 |
Minimum payments, Dec 31, 2028 | |
Minimum principal payments, notes payable | $ 189,020 |
Notes Payable Disclosure (Detai
Notes Payable Disclosure (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Dec. 31, 2021 | Mar. 30, 2023 | Jun. 16, 2022 | Jul. 31, 2021 | Jun. 06, 2020 | Feb. 12, 2020 | |
SBA Loan Agreement July 6, 2020 | |||||||
Unsecured notes payable | $ 114,800 | $ 114,800 | $ 114,800 | ||||
Interest accrues at percentage | 3.75% | ||||||
Accrued interest payable | $ 10,428 | 11,195 | |||||
Payments on loan | 1,680 | ||||||
SBA Loan Agreement, Feb 10, 2021 | |||||||
Unsecured notes payable | $ 150,000 | 150,000 | $ 150,000 | ||||
Interest accrues at percentage | 3.75% | ||||||
Accrued interest payable | $ 15,828 | $ 14,627 | |||||
Promissory note with GearBubble, July 1, 2021 | |||||||
Unsecured notes payable | 697,200 | $ 1,162,000 | |||||
Payments on loan | 154,933 | $ 309,867 | |||||
Trillium Partners, loan payable, June 16, 2022 | |||||||
Unsecured notes payable | $ 118,000 | $ 100,000 | |||||
Interest accrues at percentage | 3% | ||||||
Accrued interest payable | $ 4,340 | ||||||
Proceeds from unsecured debt | $ 100,000 |
Related Party Transactions Di_2
Related Party Transactions Disclosure (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 30, 2023 | Dec. 31, 2020 | Sep. 02, 2011 | |
Interest expense | $ 157,458 | $ 1,095,233 | |||||
Loan from Jonathan Foltz, Feb 10, 2021 | |||||||
Loan payable principal | 117,495 | $ 81,534 | |||||
Loans from Nationwide, Feb 10, 2021 | |||||||
Loan payable principal | 628,187 | 608,500 | |||||
Accrued interest payable | 97,406 | 77,718 | |||||
Chief Executive Officer | |||||||
Due to Officers | $ 261,810 | 142,854 | |||||
Interest rate annual | 5% | ||||||
Interest expense | $ 6,581 | $ 2,845 | |||||
Proceeds from related party debt | 144,500 | 190,000 | |||||
Repayment of related party debt | 32,125 | $ 192,493 | |||||
Base salary - officer | $ 250,000 | $ 175,000 | |||||
Annual salary increase percentage | 3% | 3% | |||||
Preferred shares issued - officer | 24 | 51 | |||||
Advances received - officer | $ 100,000 | ||||||
Advances repaid - officer | $ 126,523 | ||||||
Deferred compensation - officer | $ 349,264 | $ 319,640 |
Commitments and Contingencies_3
Commitments and Contingencies Disclosure (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Company's operating lease agreement | |
Rent payments | $ 1,200 |
Subsidiary's operating lease agreement | |
Rent payments | 6,582 |
Right-of-use assets and operating lease liabilities | 122,946 |
Retail space third location | |
Rent payments | 1,900 |
Right-of-use assets and operating lease liabilities | $ 89,830 |
Commitments and Contingencies_4
Commitments and Contingencies Disclosure: Lessee, Operating Lease, Schedule (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Details | |
Operating lease liabilities, due current | $ 33,140 |
Operating lease liabilities, next year | 24,465 |
Operating lease liabilities, 2025 | 23,370 |
Operating lease liabilities, 2026 | 23,484 |
Operating lease liabilities, 2027 | 20,841 |
Operating lease liabilities, 2028 | 4,032 |
Operating lease liabilities, total minimum due | 129,332 |
Total lease | 19,131 |
Less amounts representing interest, lease payments | 110,201 |
Current lease obligations | 32,216 |
Long-term lease obligations | $ 77,985 |
Stockholders' Equity Note Dis_3
Stockholders' Equity Note Disclosure (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 30, 2023 | Mar. 01, 2023 | Sep. 26, 2022 | Apr. 28, 2022 | Jul. 09, 2021 | Mar. 24, 2021 | Sep. 30, 2011 | |
Shares of common stock under the option plan | 1,000,000 | 100,000,000 | |||||||||
Common stock issuable, not yet issued | 1,000,000 | ||||||||||
Preferred Authorized | 10,000,000 | 10,000,000 | |||||||||
Value of preferred stock at issuance associated with the acquisition (in Shares) | 5 | ||||||||||
Series E Preferred, classified as mezzanine debt | $ 317,000 | $ 0 | |||||||||
Accrued dividends on preferred stock | $ 10,903 | $ 6,563 | |||||||||
Increase in authorized common shares | 25,000,000,000 | 15,000,000,000 | 9,000,000,000 | 6,000,000,000 | 3,000,000,000 | ||||||
Reverse Stock Split | 1 for 500 (the “Reverse Stock Split”), which was declared effective by Financial Industry Regulatory Authority (“FINRA”) effective April 17, 2023. | ||||||||||
Value of outstanding warrants | $ 0 | ||||||||||
Stock Option Plan Shares | |||||||||||
Common stock issuable, not yet issued | 1,000,000 | ||||||||||
Series A Preferred Stock | |||||||||||
Preferred Authorized | 75 | 51 | |||||||||
Preferred Par value | $ 0.001 | ||||||||||
Preferred Issued | 75 | 75 | |||||||||
Series B Preferred Stock | |||||||||||
Preferred Authorized | 4,900 | ||||||||||
Preferred Par value | $ 0.00001 | ||||||||||
Preferred Issued | 3,000 | 3,000 | |||||||||
Series C Preferred Stock | |||||||||||
Preferred Authorized | 5,000,000 | ||||||||||
Preferred Par value | $ 0.00001 | ||||||||||
Preferred Issued | 0 | ||||||||||
Issuance of common for converted preferred | 271,793 | ||||||||||
Series D Preferred Stock | |||||||||||
Preferred Authorized | 2,500,000 | ||||||||||
Preferred Par value | $ 0.00001 | ||||||||||
Preferred Issued | 957,000 | 1,274,000 | |||||||||
Series D converted Oct 2022 | |||||||||||
Preferred shares converted, amount of shares | 317,000 | ||||||||||
Series E Preferred Stock | |||||||||||
Preferred Authorized | 2,500,000 | ||||||||||
Preferred Par value | $ 0.00001 | ||||||||||
Preferred Issued | 317,000 | ||||||||||
Reverse stock split 2023 | |||||||||||
Reverse Stock Split | 1 for 500, which was declared effective by FINRA effective April 17, 2023. |
Stockholders' Equity Note Dis_4
Stockholders' Equity Note Disclosure: Share-Based Payment Arrangement, Option, Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Mar. 31, 2023 | Mar. 30, 2023 | Dec. 31, 2021 | |
Details | ||||
Number of warrants outstanding | 3,095,983 | 3,095,983 | 1,596,483 | |
Warrants outstanding, Weighted Average Exercise Price | $ 0.70 | $ 0.70 | $ 1 | |
Number of warrants granted | 1,500,000 | |||
Warrants granted, Weighted Average Exercise Price | $ 0.25 | |||
Number of warrants exercised | 500 | |||
Warrants exercised, Weighted Average Exercise Price | $ 0.50 | |||
Number of warrants exercisable | 3,095,983 | |||
Warrants exercisable, Weighted Average Exercise Price | $ 0.70 |
Subsequent Events Disclosure (D
Subsequent Events Disclosure (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 11, 2023 | Apr. 30, 2023 | Apr. 24, 2023 | Mar. 31, 2022 | |
Issuance of common stock for debt conversion including accrued interest and fees, in Shares | 630,973 | 600,000 | ||
Convertible into shares of common, fixed price | $ 0.004 | $ 0.006 | ||
Issuance of common stock for debt conversion including accrued interest and fees | $ 2,524 | $ 3,510 | $ 2,285,656 | |
1800 Diagonal Lending, convertible note April 24, 2023 | ||||
Convertible notes interest rate | 8% | |||
Convertible note amount | $ 70,481 | |||
Legal and financing costs | 5,481 | |||
Net proceeds from debt | $ 65,000 | |||
Interest rate, when not paid | 22% | |||
1800 Diagonal Lending, convertible note April 24, 2023(2) | ||||
Convertible notes interest rate | 13% | |||
Convertible note amount | $ 75,180 | |||
Legal and financing costs | 10,180 | |||
Net proceeds from debt | $ 65,000 | |||
Interest rate, when not paid | 22% |