Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | GOOD HEMP, INC. | |
Entity Central Index Key | 0001464865 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 23,509,775 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-54509 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 45-2578051 | |
Entity Address Address Line 1 | 20311 Chartwell Center Drive | |
Entity Address Address Line 2 | Suite 1469 | |
Entity Address City Or Town | Cornelius | |
Entity Address State Or Province | NC | |
Entity Address Postal Zip Code | 28031 | |
City Area Code | 1-800 | |
Local Phone Number | 947-9197 | |
Entity Interactive Data Current | Yes |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 13,405 | $ 21,233 |
Accounts receivable | 64,803 | 4,689 |
Inventory | 0 | 163,567 |
Prepaid expenses | 166,933 | 9,541 |
Current assets of discontinued operations | 324 | 0 |
Total current assets | 245,465 | 199,030 |
Other assets | ||
Property, plant and equipment, net | 130,070 | 0 |
Branding agreement | 0 | 1,735,714 |
Investment | 66,988 | 63,433 |
Goodwill | 563,524 | 0 |
Intellectual property | 12,000 | 12,000 |
Total assets | 1,018,047 | 2,010,177 |
Current liabilities | ||
Accounts payable | 84,628 | 19,203 |
Accounts payable to related parties | 94,572 | 82,832 |
Accrued liabilities | 7,987 | 0 |
Interest payable | 41,303 | 35,320 |
Interest payable to related parties | 78,858 | 45,057 |
Notes payable | 19,100 | 19,100 |
Convertible notes, net of discounts | 1,033,803 | 286,910 |
Convertible notes to related parties, net of discounts | 510,575 | 400,575 |
Derivative liabilities | 4,652,050 | 1,526,495 |
Total current liabilities | 6,522,876 | 2,415,492 |
Total liabilities | 6,522,876 | 2,415,492 |
Stockholders' deficit | ||
Preferred stock - Class A - 30,000,000 shares authorized, $0.001 par value, 0 and 250,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 0 | 250 |
Common stock - 150,000,000 shares authorized, $0.001 par value, 23,444,775 and 22,263,829 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 23,445 | 22,264 |
Additional paid in capital | 8,608,974 | 7,962,062 |
Accumulated deficit | (14,112,736) | (8,389,891) |
Total controlling interest | (5,480,317) | (405,315) |
Non-controlling interest | (24,512) | 0 |
Total stockholders' deficit | (5,504,829) | (405,315) |
Total liabilities and stockholders' deficit | $ 1,018,047 | $ 2,010,177 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
STOCKHOLDER'S EQUITY | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 23,444,775 | 22,263,829 |
Common stock, shares issued | 23,444,775 | 22,263,829 |
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares outstanding | 0 | 250,000 |
Preferred stock, shares issued | 0 | 250,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) | ||||
Net sales | $ 416,327 | $ 102,010 | $ 943,364 | $ 383,356 |
Cost of sales | 408,757 | 77,688 | 883,510 | 290,157 |
Gross profit | 7,570 | 24,322 | 59,854 | 93,199 |
Operating expenses | 650,996 | 290,922 | 2,476,204 | 456,510 |
Operating loss | (643,426) | (266,600) | (2,416,350) | (363,311) |
Other income (expense) | ||||
Interest income | 3 | 0 | 7 | 0 |
Gain on write off of debt | 0 | 0 | 38,910 | 0 |
Interest expense | (103,257) | (3,192) | (170,997) | (20,360) |
Loss on derivative liabilities | (1,090,026) | 119,848 | (3,125,555) | (607,495) |
Other income (expense) | 149 | 0 | 149 | 0 |
Total other income (expense) | (1,193,131) | 116,656 | (3,257,486) | (627,855) |
Net loss from continuing operations | (1,836,557) | (149,944) | (5,673,836) | (991,166) |
Loss from discontinued operations | (20,376) | 0 | (73,521) | 0 |
Net loss | (1,856,933) | (149,944) | (5,747,357) | (991,166) |
Net loss - non-controlling interest | 6,793 | 0 | 24,512 | 0 |
Net loss - controlling interest | $ (1,850,140) | $ (149,944) | $ (5,722,845) | $ (991,166) |
Net loss per share from continuing operations - basic and diluted | $ (0.08) | $ (0.01) | $ (0.25) | $ (0.06) |
Net loss per share from discontinued operations - basic and diluted | 0 | 0 | ||
Net loss per share - basic and diluted | $ (0.08) | $ (0.01) | $ (0.25) | $ (0.06) |
Weighted average number of common shares - basic and diluted | 22,747,492 | 21,952,470 | 22,612,048 | 17,776,646 |
CONDENSED STATEMENT OF STOCKHOL
CONDENSED STATEMENT OF STOCKHOLDERS DEFICIT (Unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Noncontrolling Interest | Accumulated Deficit |
Balance, shares at Dec. 31, 2019 | 1,952,470 | |||||
Balance, amount at Dec. 31, 2019 | $ (2,057,435) | $ 0 | $ 1,953 | $ 4,868,548 | $ 0 | $ (6,927,936) |
Issuance of common shares for branding agreement, shares | 6,000,000 | |||||
Issuance of common shares for branding agreement, amount | 2,700,000 | 0 | $ 6,000 | 2,694,000 | 0 | 0 |
Shares issued to William Alessi, shares | 7,000,000 | |||||
Shares issued to William Alessi, amount | 7,000 | 0 | $ 7,000 | 0 | 0 | 0 |
Shares issued to Chris Chumas, shares | 7,000,000 | |||||
Shares issued to Chris Chumas, amount | 7,000 | 0 | $ 7,000 | 0 | 0 | 0 |
Net loss for the period | (188,551) | 0 | $ 0 | 0 | 0 | (188,551) |
Balance, shares at Mar. 31, 2020 | 21,952,470 | |||||
Balance, amount at Mar. 31, 2020 | 468,014 | 0 | $ 21,953 | 7,562,548 | 0 | (7,116,487) |
Balance, shares at Dec. 31, 2019 | 1,952,470 | |||||
Balance, amount at Dec. 31, 2019 | (2,057,435) | $ 0 | $ 1,953 | 4,868,548 | 0 | (6,927,936) |
Net loss for the period | (991,166) | |||||
Balance, shares at Sep. 30, 2020 | 250,000 | 22,263,829 | ||||
Balance, amount at Sep. 30, 2020 | 65,474 | $ 250 | $ 22,264 | 7,962,062 | 0 | (7,919,102) |
Balance, shares at Mar. 31, 2020 | 21,952,470 | |||||
Balance, amount at Mar. 31, 2020 | 468,014 | 0 | $ 21,953 | 7,562,548 | 0 | (7,116,487) |
Net loss for the period | (652,671) | 0 | $ 0 | 0 | 0 | (652,671) |
Balance, shares at Jun. 30, 2020 | 21,952,470 | |||||
Balance, amount at Jun. 30, 2020 | (184,657) | 0 | $ 21,953 | 7,562,548 | 0 | (7,769,158) |
Net loss for the period | (149,944) | $ 0 | 0 | 0 | 0 | (149,944) |
Issuance of Series B-1 preferred stock, shares | 250,000 | |||||
Issuance of Series B-1 preferred stock, amount | 250,000 | $ 250 | $ 0 | 249,750 | 0 | 0 |
Issuance of common stock for conversion of convertible note, shares | 111,359 | |||||
Issuance of common stock for conversion of convertible note, amount | 60,000 | 0 | $ 111 | 59,889 | 0 | 0 |
Issuance of common stock for services, shares | 160,000 | |||||
Issuance of common stock for services, amount | 120,000 | 0 | $ 160 | 119,840 | 0 | 0 |
Issuance of common stock for joint venture, shares | 40,000 | |||||
Issuance of common stock for joint venture, amount | 20,000 | 0 | $ 40 | 19,960 | 0 | 0 |
Amortization of derivative liabilities | (49,925) | $ 0 | $ 0 | (49,925) | 0 | 0 |
Balance, shares at Sep. 30, 2020 | 250,000 | 22,263,829 | ||||
Balance, amount at Sep. 30, 2020 | 65,474 | $ 250 | $ 22,264 | 7,962,062 | 0 | (7,919,102) |
Balance, shares at Dec. 31, 2020 | 250,000 | 22,263,829 | ||||
Balance, amount at Dec. 31, 2020 | (405,315) | $ 250 | $ 22,264 | 7,962,062 | 0 | (8,389,891) |
Net loss for the period | (1,442,815) | 0 | $ 0 | 0 | 0 | (1,442,815) |
Issuance of common stock for services, shares | 30,000 | |||||
Issuance of common stock for services, amount | 26,400 | 0 | $ 30 | 26,370 | 0 | 0 |
Issuance of common stock for financing, shares | 65,000 | |||||
Issuance of common stock for financing, amount | 78,000 | 0 | $ 65 | 77,935 | 0 | 0 |
Issuance of common stock for conversion of notes payable, shares | 17,405 | |||||
Issuance of common stock for conversion of notes payable, amount | 10,443 | $ 0 | $ 18 | 10,425 | 0 | 0 |
Balance, shares at Mar. 31, 2021 | 250,000 | 22,376,234 | ||||
Balance, amount at Mar. 31, 2021 | (1,733,287) | $ 250 | $ 22,377 | 8,076,792 | 0 | (9,832,706) |
Balance, shares at Dec. 31, 2020 | 250,000 | 22,263,829 | ||||
Balance, amount at Dec. 31, 2020 | (405,315) | $ 250 | $ 22,264 | 7,962,062 | 0 | (8,389,891) |
Net loss for the period | (5,747,357) | |||||
Balance, shares at Sep. 30, 2021 | 23,444,775 | |||||
Balance, amount at Sep. 30, 2021 | (5,504,829) | $ 0 | $ 23,445 | 8,608,974 | (24,512) | (14,112,736) |
Balance, shares at Mar. 31, 2021 | 250,000 | 22,376,234 | ||||
Balance, amount at Mar. 31, 2021 | (1,733,287) | $ 250 | $ 22,377 | 8,076,792 | 0 | (9,832,706) |
Net loss for the period | (2,447,609) | 0 | $ 0 | 0 | (17,719) | (2,429,890) |
Issuance of S-1 common stock at $1.25 for cash, shares | 166,400 | |||||
Issuance of S-1 common stock at $1.25 for cash, amount | 208,000 | $ 0 | $ 166 | 207,834 | 0 | 0 |
Balance, shares at Jun. 30, 2021 | 250,000 | 22,542,634 | ||||
Balance, amount at Jun. 30, 2021 | (3,972,896) | $ 250 | $ 22,543 | 8,284,626 | (17,719) | (12,262,596) |
Net loss for the period | (1,856,933) | 0 | $ 0 | 0 | (6,793) | (1,850,140) |
Issuance of S-1 common stock at $1.25 for cash, shares | 60,000 | |||||
Issuance of S-1 common stock at $1.25 for cash, amount | 75,000 | $ 0 | $ 60 | 74,940 | 0 | 0 |
Exercise of warrants for preferred shares at $1.00, shares | 250,000 | |||||
Exercise of warrants for preferred shares at $1.00, amount | 250,000 | $ 250 | $ 0 | 249,750 | 0 | 0 |
Conversion of preferred shares to common shares, shares | (500,000) | 833,333 | ||||
Conversion of preferred shares to common shares, amount | 0 | $ (500) | $ 833 | (333) | 0 | 0 |
Cashless warrant exercise, shares | 8,808 | |||||
Cashless warrant exercise, amount | 0 | 0 | $ 9 | (9) | 0 | 0 |
Balance, shares at Sep. 30, 2021 | 23,444,775 | |||||
Balance, amount at Sep. 30, 2021 | $ (5,504,829) | $ 0 | $ 23,445 | $ 8,608,974 | $ (24,512) | $ (14,112,736) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss from continuing operations | $ (5,673,836) | $ (991,166) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 14,158 | 0 |
Amortization of branding agreement | 1,735,714 | 0 |
Non-cash interest expense | 0 | 0 |
Stock-based compensation | 26,400 | 52,500 |
Gain on write off of debt | (38,910) | 0 |
Gain on derivative liabilities | 3,125,555 | (607,496) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,503) | (7,210) |
Prepaid expenses | (85,479) | (130,616) |
Inventory | 163,567 | 98,491 |
Other receivable | 228 | 0 |
Accounts payable | 22,623 | 126,060 |
Accounts payable to related parties | 75,000 | 0 |
Accrued liabilities | (32,698) | 0 |
Interest payable | 40,227 | 4,338 |
Operating cash flows from discontinued operations | (73,521) | 0 |
Net cash used in operating activities | (719,475) | (1,455,099) |
Cash flows from investing activities: | ||
Purchase of investments | (689,055) | 0 |
Purchase of fixed assets | (47,000) | 0 |
Net cash flows from investing activities | (736,055) | 0 |
Cash flows from financing activities: | ||
Proceeds from convertible notes payable to related parties, net of discounts | 0 | 147,967 |
Proceeds from convertible notes payable, net of discounts | 1,322,182 | 966,084 |
Repayment of convertible notes payable, net of discounts | (488,291) | 0 |
Issuance of notes payable | 0 | 19,100 |
Proceeds from issuance of common stock | 283,000 | 0 |
Conversion of note payables to common stock, net | 0 | 60,000 |
Issuance of preferred stock | 250,000 | 250,000 |
Proceeds from investment in subsidiary | 42,500 | 0 |
Net cash provided by financing activities | 1,409,391 | 1,443,151 |
Net change in cash | (46,139) | (11,948) |
Cash and cash equivalents - beginning of period | 59,868 | 48,088 |
Cash and cash equivalents - end of period for discontinued operations | 324 | 0 |
Cash and cash equivalents - end of period for continuing operations | 13,405 | 36,140 |
Supplemental non-cash information | ||
Common stock issued for financing fees | 78,000 | 0 |
Spire Branding Agreement for common stock | 0 | 2,700,000 |
Conversion of notes payable into common stock | 10,000 | 14,000 |
Exercise of cashless warrants | $ 8,808 | $ 0 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
NATURE OF OPERATIONS | |
NOTE 1 - NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS Good Hemp, Inc. (the “Company” or “Good Hemp”), formerly known as Keyser Resources, Inc., and Lone Star Gold, Inc., was incorporated in the State of Nevada on November 26, 2007. The Company was involved in the exploration and development of mining properties until September 30, 2013, when it discontinued operations. In 2017, the Company was put into receivership and in 2018, it emerged from receivership. On September 11, 2019, the Company’s Board of Directors, pursuant to Nevada Revised Statute 92A.280, amended the Company’s Articles of Incorporation to change the name of the Company from Lone Star Gold, Inc. to Good Hemp, Inc. The amendment was filed with the Nevada Secretary of State on September 12, 2019. The Company is now a North Carolina based company that is made up of industry veterans focused on exploiting niche markets in the hemp industry. Good Hemp® includes two lines of hemp-based beverages. Good Hemp® 2oh! is a hemp-derived, CBD-infused line of flavored waters, and Good Hemp® fizz! is a line of carbonated hemp oil infused sodas. Good Hemp® products have been sold throughout the United States since 2016 via Amazon.com, as well as local retailers. By establishing a comprehensive distribution system, Good Hemp® has secured listings for its products with regional and national grocery and convenience chain stores. On July 21, 2020, the Company filed with the State of Nevada a Certificate of Designation designating 250,000 shares of the Company’s authorized preferred stock as Series B-1 Convertible Preferred Stock (the “Series B-1 Preferred Stock”). Each share of Series B-1 Preferred Stock is convertible into 1.667 shares of Company common stock (subject to a 4.99% beneficial ownership limitation). The Series B-1 Preferred Stock entitles the holder to piggy-back registration rights and one vote per share. Also, on July 21, 2020, the Company filed with the State of Nevada a Certificate of Designation designating 750,000 shares of the Company’s authorized preferred stock as Series B-2 Convertible Preferred Stock (the “Series B-2 Preferred Stock”). Each share of Series B-2 Preferred Stock is convertible into a number of shares of Company common stock equal to $1.00 divided by (i) the lesser of $0.60 or 60% of the 14-day average closing price of the Company’s common stock at the time of conversion (the “Market Price”) if the conversion occurs within 6 months of July 21, 2020, or (ii) 60% of the Market Price if the conversion occurs at least 6 months after July 21, 2020 (subject to a 4.99% beneficial ownership limitation). The Series B-2 Preferred Stock entitles the holder to one vote per share. On February 9, 2021, the Company formed Good Hemp Wellness, LLC, a limited liability company formed under the laws of the State of North Carolina, to sell CBD products to customers through chiropractic offices. In October 2021, this company was dissolved. This company is being treated as discontinued operations in the consolidated financial statements. On April 1, 2021, the Company entered into an agreement to purchase Diamond Creek Group, LLC, a North Carolina limited liability company which sells the Diamond Creek brand of high alkaline water products, for a total purchase price of $643,000. On April 2, 2021, the Company closed the acquisition and paid the initial $500,000 portion of the purchase price, and on April 23, 2021, paid the $143,000 purchase price balance. See note 4 for the purchase price allocation. The outbreak of the coronavirus (COVID-19) resulted in increased travel restrictions, and shutdown of businesses, which may cause slower recovery of the economy. We may experience impact from quarantines, market downturns and changes in customer behavior related to pandemic fears and impact on our workforce if the virus continues to spread. In addition, one or more of our customers, partners, service providers or suppliers may experience financial distress, delayed or defaults on payment, file for bankruptcy protection, sharp diminishing of business, or suffer disruptions in their business due to the outbreak. The extent to which the coronavirus impacts our results will depend on future developments and reactions throughout the world, which are highly uncertain and will include emerging information concerning the severity of the coronavirus and the actions taken by governments and private businesses to attempt to contain the coronavirus. It is likely to result in a potential material adverse impact on our business, results of operations and financial condition. Wider-spread COVID-19 globally could prolong the deterioration in economic conditions and could cause decreases in or delays in advertising spending and reduce and/or negatively impact our short-term ability to grow our revenues. Any decreased collectability of accounts receivable, bankruptcy of small and medium businesses, or early termination of agreements due to deterioration in economic conditions could negatively impact our results of operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and has a year-end of December 31. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Good Hemp, Inc. and its wholly owned subsidiary, Diamond Creek Group, LLC, and its controlling interest subsidiary, Good Hemp Wellness, LLC. (collectively, the “Company”). All intercompany accounts have been eliminated upon consolidation. Condensed Financial Statements The unaudited condensed financial statements of the Company for the nine month periods ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020 was derived from the audited financial statements included in the Company’s financial statements as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2021. These unaudited condensed financial statements should be read in conjunction with that report. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability of long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Impairment of Long-Lived Assets Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or when indicators of a potential impairment are present. Our impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangibles. The annual evaluation for impairment of goodwill and indefinite-lived intangibles is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. We believe such assumptions are also comparable to those that would be used by other marketplace participants. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. When certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived brands may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Fair Value of Financial Instruments The FASB issued ASC 820-10, Fair Value Measurements and Disclosures - Level 1: Quoted prices in active markets for identical assets or liabilities - Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. - Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter. Cash and Cash Equivalents For purposes of the statement of cash flows, cash equivalents include demand deposits, money market funds, and all highly liquid debt instructions with original maturities of three months or less. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. Inventory Inventory consisting of raw materials and finished product is stated at the lower of cost (first in, first out method) or net realizable value. Concentration and Credit Risk The Company does not have any financial asset and therefore is not exposed to any credit risks. Cash - The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable consists of product sales to customers. Trade accounts receivable are generally due 30 days after issuance of the invoice. Receivables past due more than 120 days are considered delinquent. Delinquent receivables are written off based on specific circumstances of the customer. At June 30, 2021, an allowance was not deemed necessary. Derivative Financial Instruments For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. Commitment and Contingencies The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. The Company follows ASC 440-10, Commitments, to report accounting for certain commitments. Net Loss Per Common Share The Company computes net income or loss per share in accordance with ASC 260 Earnings per Share. Under the provisions of the Earnings per Share Topic ASC, basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. Income Taxes The Company accounts for its income taxes in accordance with ASC 740 Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided for the amount of deferred tax assets that would otherwise be recorded for income tax benefits primarily relating to operating loss carryforwards as realization cannot be determined to be more likely than not. The statement establishes a more-likely-than-not threshold for recognizing the benefits of tax return positions in the financial statements. Also, the statement implements a process for measuring those tax positions which meet the recognition threshold of being ultimately sustained upon examination by the taxing authorities. There are no uncertain tax positions taken by the Company on its tax returns and the adoption of the statement had no material impact to the Company’s financial statements. The Company files tax returns in the US and states in which it has operations and is subject to taxation. Tax years subsequent to 2013 remain open to examination by U.S. federal and state tax jurisdictions. Revenue Recognition Revenue is recognized in accordance with ASC 606. The Company performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company evaluates the goods or services promised within each contract related performance obligation and assesses whether each promised good or service is distinct. The Company recognizes as revenue, the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as professional service hours purchased in bulk for a given time period. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2021 | |
GOING CONCERN | |
NOTE 3 - GOING CONCERN | NOTE 3 – GOING CONCERN The Company’s unaudited condensed consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has recurring operating losses, an accumulated deficit and a working capital deficiency. Management’s plans include raising capital in the debt and equity markets. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until its operations become established enough to be considered reliably profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As reflected in the financial statements, the Company had a working capital deficit of $6,277,411 at September 30, 2021 and had a loss of $5,747,357 for the nine months ended September 30, 2021, which raises substantial doubt as to the Company’s ability to continue as a going concern in the future. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company is unable to continue as a going concern. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
INTANGIBLE ASSETS | |
NOTE 4 - INTANGIBLE ASSETS | NOTE 4 – INTANGIBLE ASSETS On February 6, 2019, the Company, entered into an Intellectual Property Purchase Agreement Agreement Seller On April 30, 2019, the Company acquired from S. Mark Spoone the CANNA HEMP and CANNA trademarks including all rights and trade secrets and related inventory for consideration totaling $32,462.39. At March 31, 2021, the Company had not attributed any value to the acquired trademarks. Effective February 28, 2020, the Company entered into a Branding Agreement (the “Branding Agreement”) with Spire Holdings, LLC (“Spire”), pursuant to which the Company would immediately issue Spire 6,000,000 shares of the Company’s common stock (the “Spire Shares”), and Spire would provide the Company (i) 7 primary NASCAR Cup Series No. 77 entry automobile, team and drivers (“Car”) sponsorships, and (ii) 25 associate or secondary sponsorships in connection with the Car, subject to NASCAR and network television approval. Pursuant to the Branding Agreement, Spire has some antidilution protection and piggyback registration rights with respect to the Spire Shares. On February 10, 2021, the Company and Spire entered into an Amendment to Branding Agreement amending the sponsorship dates to be during the 2021-2022 NASCAR Cup Series racing seasons instead of the 2020-2021 racing season. The Company recorded an intangible asset in the amount of $2,700,000 based on the closing price of GHMP common shares of $0.45 on February 28, 2020. Through the nine-month period ended September 30, 2021, the Company determined that it had utilized 100% of the services provided under the branding agreement and has recognized $2,700,000 as expenses. The following summarizes the branding agreement: Gross Value of Branding Agreement $ 2,700,000 Value Utilized (2,700,000 ) Remaining $ - On April 1, 2021, the Company entered into an agreement to purchase Diamond Creek Group, LLC, a North Carolina limited liability company which sells the Diamond Creek brand of high alkaline water products, for a total purchase price of $643,000. On April 2, 2021, the Company closed the acquisition and paid the initial $500,000 portion of the purchase price, and on April 23, 2021, paid the $143,000 purchase price balance. The purchase price was allocated as follows: Purchase Price Allocation Amount Acquisition cost $ 643,000 Assets acquired Cash and cash equivalents 38,635 Accounts receivable 41,611 Property and Equipment 97,228 Total assets acquired 177,474 Liabilities assumed Accounts payable and accrued liabilities 77,998 Note payable 20,000 Total liabilities assumed 97,998 Goodwill $ 563,524 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
NOTES PAYABLE | |
NOTE 5 - NOTES PAYABLE | NOTE 5 – NOTES PAYABLE On March 14, 2019, the Company borrowed $50,000 from an unrelated third party. The loan was unsecured, bore interest at 8% per year, and was due and payable on September 14, 2019. At the option of the note holder, the note may at any time be converted into shares of the Company’s common stock. The number of shares to be issued upon conversion would be determined by dividing the amount to be converted by 60% of the average of the three lowest closing prices of the Company’s common stock during the ten trading days immediately preceding the conversion date. If at any time prior to July 14, 2020, the Company sold or issued any shares of its common stock at a price below $1.20 per share, the Company would issue such number of additional shares of its common stock to the note holder as determined by the following: A B = C A $1.20 = D C – D = Number of additional shares to be issued to the note holder Where: A = The principal amount of the note previously converted by the note holder. B = The price per share at which the Company’s common stock was sold or issued. On March 15, 2019, the note holder exercised its option to convert the note into 67,750 restricted shares of the Company’s common stock. The common stock was issued to the note holder in April 2019. On March 30, 2020, the Company entered into a securities purchase agreement (the “SPA”) with Power Up Lending Group Ltd., a Virginia corporation (the “Investor”), pursuant to which the Company agreed to issue to the Investor a 10% Convertible Promissory Note (the “Note”), dated March 23, 2020, in the principal amount of $67,500. The Note was funded by the Investor on March 30, 2020, and on such date pursuant to the SPA, the Company reimbursed the Investor for expenses for legal fees and due diligence of $2,500. The SPA includes customary representations, warranties and covenants by the Company and customary closing conditions. The Note matures 12 months after the date of the Note on March 23, 2021. The Note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the Note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the Note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The Note carries a prepayment penalty if the Note is paid off in 60, 90, 120,150, or 180 days following the Note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 115%, 120%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. Effective April 8, 2020, the Company and its lender, GS Capital Partners, LLC, entered into a forbearance agreement relating to the Lender’s promissory note dated October 8, 2019, in the original principal amount of $103,000, pursuant to which the Company would pay the Lender $40,000 by April 10, 2020, and $80,000 by May 10, 2020. The Company made both payments, with the final payment made on May 11, 2020, since May 10, 2020, was a Sunday, and the lender’s note is now considered paid in full. Effective May 8, 2020, the Company entered into a securities purchase agreement with Power Up Lending Group Ltd., a Virginia corporation (“Power Up”), pursuant to which the Company agreed to issue to the Power Up an 8% Convertible Promissory Note, dated May 7, 2020, in the principal amount of $42,000. The note was funded by the Power Up on May 8, 2020, and on such date pursuant to the securities purchase agreement, the Company reimbursed the Power Up for expenses for legal fees and due diligence of $2,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on May 7, 2021. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that Power Up may not convert the note to the extent that such conversion would result in Power Up’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by Power Up. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. On July 31, 2020, the Company issued a Convertible Promissory Note (the “JRF Note”) to JRF AZ Investments II, LP (the “JRF Investor”), in the principal amount of $60,000, which was funded on July 31, 2020. The JRF Note matured nine months after the date of the note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion. On August 1, 2020, the JRF Investor elected to convert the entire JRF Note into Company common stock and was subsequently issued 111,359 shares of Company common stock in conversion thereof. On August 4, 2020, the Company entered into a securities purchase agreement with DGF Services, Inc. The note is for $10,000 bearing interest at 7% per annum and has a conversion price of $0.60 per share. The note matures on February 3, 2021. On March 15, 2021, the Company issued 30,000 shares of common stock for the conversion of principal and interest of $10,456. See Note 9. On August 18, 2020, the Company entered into a securities purchase agreement with Power Up Lending Group pursuant to which the Company agreed to issue to the Investor an 8% Convertible Promissory Note, dated August 18, 2020, in the principal amount of $128,000. The note was funded by the Investor on August 18, 2020, and on such date pursuant to the securities purchase agreement, the Company reimbursed the Investor for expenses for legal fees and due diligence of $2,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on August 17, 2021. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. On February 4, 2021, the Company entered into a securities purchase agreement with Power Up Lending Group pursuant to which the Company agreed to issue to the Investor an 8% Convertible Promissory Note, dated February 4, 2021, in the principal amount of $127,000. The note was funded by the Investor on February 4, 2021, and on such date pursuant to the securities purchase agreement, the Company reimbursed the Investor for expenses for legal fees and due diligence of $2,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on February 4, 2022. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. On August 2, 2021, the Company paid the note, accrued interest and prepayment penalty in full. On February 16, 2021, the Company entered into a securities purchase agreement with Power Up Lending Group pursuant to which the Company agreed to issue to the Investor an 8% Convertible Promissory Note, dated February 16, 2021, in the principal amount of $78,750. The note was funded by the Investor on February 16, 2021, and on such date pursuant to the securities purchase agreement, the Company reimbursed the Investor for expenses for legal fees and due diligence of $2,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on February 16, 2022. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. On August 11, 2021, the Company paid the note, accrued interest and prepayment penalty in full. On March 26, 2021, the Company entered into a securities purchase agreement with Leonite Capital LLC (“Leonite”) pursuant to which the Company agreed to issue to the Investor an 8% Convertible Promissory Note, dated March 26, 2021, in the principal amount of $568,182. The note was funded by the Investor on March 26, 2021, and on such date pursuant to the securities purchase agreement, the Company reimbursed the Investor for expenses for legal fees and due diligence of $2,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on March 26, 2022. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. The financing required the Company to issue 65,000 shares of common stock to Leonite (see Note 9). On April 21, 2021, the Company entered into a securities purchase agreement (the “GS Capital SPA”) with GS Capital Partners, LLC, a New York limited liability company, pursuant to which the Company agreed to issue to the investor a 5% Convertible Redeemable Promissory Note (the “GS Capital Note”), dated April 21, 2021, in the principal amount of $85,750. The GS Capital Note included a $8,000 original issue discount, and was funded by the investor on April 22, 2021, and on such date pursuant to the GS Capital SPA, the Company reimbursed the investor for legal fees of $3,750, receiving net funding of $74,000. The GS Capital SPA includes customary representations, warranties and covenants by the Company and customary closing conditions. The GS Capital Note matures 12 months after the date of the note on April 21, 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The note carries a prepayment penalty if it is paid off in 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 105% if prepaid within 60 days, 120% if prepaid from 61 days-120 days, and 125% if prepaid between 121 days-180 days of issuance. After the expiration of 180 days, the Company shall have no right of prepayment. On April 20, 2021, the Company entered into a securities purchase agreement (the “Power Up SPA”) with Power Up Lending Group Ltd., a Virginia corporation, pursuant to which the Company agreed to issue to the investor a 5% Convertible Promissory Note (the “Power Up Note”), dated April 20, 2021, in the principal amount of $82,000. The Power Up Note was funded by the investor on April 23, 2021, and on such date pursuant to the Power Up SPA, the Company reimbursed the investor for expenses for legal fees and due diligence of $2,000, receiving net funding of $80,000. The Power Up SPA includes customary representations, warranties and covenants by the Company and customary closing conditions. The Power Up Note matures 12 months after the date of the Power Up Note on April 20, 2022. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the investor. The note carries a prepayment penalty if the note is paid off in 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 125%. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. On May 4, 2021, the Company entered into a securities purchase agreement with Metrospaces, Inc., a Florida corporation, pursuant to which the Company agreed to issue to the investor a 5% Convertible Redeemable Note, dated April 4, 2021, in the principal amount of $50,000. The note was funded by the investor on May 4, 2021, with the Company receiving funding of $50,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on May 4, 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. The note carries a prepayment penalty if it is paid off in 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 115% if prepaid within 60 days, 120% if prepaid from 61 days-120 days, and 125% if prepaid between 121 days-180 days of issuance. After the expiration of 180 days, the Company shall have no right of prepayment. On August 13, 2021, the Company entered into a securities purchase agreement with Geneva Roth Remark Holdings, Inc., a New York corporation, pursuant to which the Company agreed to issue to the investor a Convertible Note, dated August 13, 2021, in the principal amount of $250,375. The Note included a $25,375 original issue discount and was funded by the investor on August 13, 2021, with the Company receiving funding of $225,000. The note carries a one-time interest charge of 10% of $25,037. The note has mandatory monthly payments of $27,541 starting on September 30, 2021 until the note is paid in full. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on August 13, 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 75% multiplied by the lowest closing price during the previous trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The Company made the first note payment on $27,541 prior to September 30, 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
NOTE 6 - RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS All related party transactions are recorded at the exchange amount which is the value established and agreed to by the related party. Mr. William Alessi, CEO, is the Principal Executive Officer and director of the Company. The JanBella Group is an entity controlled by Mr. Alessi. Chris Chumas is a director and a minority shareholder of the Company. A payable to a related party of $17,574 to Maurice Bideaux, the Company’s former chief executive officer and director, was forgiven by Mr. Bideaux in 2010. An additional advance from Mr. Bideaux of $38,910 was written off due to the statute of limitations. On February 6, 2019, Mr. William Alessi, the Company’s CEO and one of its directors, personally sold 6,000,000 shares of the Company’s Class A Preferred Shares to Chris Chumas for $100,000 in cash. During the quarter ended March 31, 2019, Mr. Alessi returned to treasury 12,000,000 shares of Class “A” preferred shares to facilitate the acquisition of certain intellectual property as disclosed below and in Note 4 above. As a result, $12,000 has been added to his loan account in lieu of payment. On July 18, 2019, the Company issued promissory notes to Mr. Alessi, JanBella Group and Mr. Chumas to evidence the amounts they advanced to the Company. The notes are due on demand, bear interest at 10% per year, and are secured by all of the Company’s assets. At the option of the noteholders, the notes may be converted into shares of the Company’s common stock. The number of shares which will be issued upon any conversion of the notes will be determined by dividing the principal amount to be converted (plus, at the option of the noteholder, accrued and unpaid interest) by the lower of (i) $0.001 or, (ii) 50% of the lowest bid price during the forty-five consecutive trading day period ending on the trading day immediately prior to the conversion date. On or about July 22, 2019, the Company purchased shares of its Class A Preferred Shares from the following persons: Class A Name Preferred Shares Consideration William Alessi 12,000,000 $ 200,000 (1) Chris Chumas 6,000,000 $ 100,000 (1) ____________ (1) Payment for the preferred shares was in the form of notes. The notes bear interest at 8% per year, are due and payable on December 31, 2019, and are unsecured. On or about July 22, 2019, S. Mark Spoone converted his 12,000,000 Class A Preferred Shares into 450,000 shares of the Company’s common stock. On January 29, 2020, the Company issued 7,000,000 shares of its common stock to each of William Alessi and Chris Chumas, respectively, for partial conversion of their promissory notes in the principal amount of $7,000 each, respectively. The following table presents principal amounts due, and common and preferred shares held by William Alessi, Chris Chumas and S. Mark Spoone as of September 30, 2021: Interest Common Shares Preferred Shares Name Principal rate # # Chris Chumas $ 150,287 8%-10 % 7,000,000 nil William Alessi 250,288 0%-10 % 6,971,050 (1) nil JanBella Group (2) 110,000 10 % nil nil S. Mark Spoone nil 450,000 nil Total $ 510,575 (1) (2) See Part II – Unregistered Sales of Equity Securities and Use of Proceeds regarding the sale of unregistered securities and use of proceeds. |
DERIVATIVE LIABILITIES
DERIVATIVE LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE LIABILITIES | |
NOTE 7 - DERIVATIVE LIABILITIES | NOTE 7 – DERIVATIVE LIABILITIES The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of September 30, 2021. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model. For the nine months ended September 30, 2021, the assumptions utilized in estimating fair values of the liabilities measured on a recurring basis are as follows: Nine months ended September 30, 2021 Expected term 1.00 years Expected average volatility 321.5 % Expected dividend yield - Risk-free interest rate 7.00 % The fair value measurements of the derivative liabilities at September 30, 2021 are summarized: Total Level 1 Level 2 Level 3 $ 4,652,050 $ - $ - $ 4,652,050 The fair value measurements of the derivative liabilities at December 31, 2020 is summarized: Total Level 1 Level 2 Level 3 $ 1,526,495 $ - $ - $ 1,526,495 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
NOTE 8 - COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES Legal Matters The Company is subject, from time to time, to claims by third parties under various legal disputes. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows. As of August 16, 2021, the Company did not have any legal actions pending against it. Commitments The Company entered into various Seed Resale Agreements to sell Hemp seeds to growers. The Company is obligated to purchase from the growers’ minimum future quantities of hemp biomass. |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2021 | |
CAPITAL STOCK | |
NOTE 9 - CAPITAL STOCK | NOTE 9 – CAPITAL STOCK On January 29, 2020, the Company issued 7,000,000 shares of its common stock to each of William Alessi and Chris Chumas, respectively, for partial conversion of promissory notes in the principal amount of $7,000 each, respectively. On February 28, 2020, the Company entered into a Branding Agreement (the “Branding Agreement”) with Spire Holdings, LLC (“Spire”), pursuant to which the Company would immediately issue Spire 6,000,000 shares of the Company’s common stock (the “Spire Shares”), and Spire would provide the Company (i) 7 primary NASCAR Cup Series No. 77 entry automobile, team and drivers (“Car”) sponsorships, and (ii) 25 associate or secondary sponsorships in connection with the Car, subject to NASCAR and network television approval. Pursuant to the Branding Agreement, Spire has some anti-dilution protection and piggyback registration rights with respect to the Spire Shares. On July 29, 2020, the Company sold a third party investor (the “ Investor Securities Effective July 1, 2020, Scott Shellady was appointed to serve as the Chief Strategic Officer of the Company. On June 24, 2020, the Company entered into a consulting services agreement with Mr. Shellady, pursuant to which Mr. Shellady would (i) render marketing, sales, distribution, and branding services to the Company; and (ii) would be paid $5,000 per month and 100,000 shares of Company common stock for services rendered during the initial term from July 1, 2020, through December 31, 2020. Effective July 31, 2020, the Company issued a Convertible Promissory Note to JRF AZ Investments II, LP in the principal amount of $60,000, which was funded on July 31, 2020. TheNote matured six months after the date of the Note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion. On August 1, 2020, JRF AZ Investments II, LP elected to convert the entire Note into Company common stock and was subsequently issued 111,359 shares of Company common stock in conversion thereof. On August 24, 2020, with an effective date of July 1, 2020, the Company entered into a joint venture agreement with Paul Hervey (“Hervey”), an individual, for the purpose of cultivating hemp. Hervey is a licensed hemp cultivator in good standing under the laws of North Carolina with approximately 3,700 square feet of greenhouse cultivation space and approximately 9 acres of farmable land (the “Facility”). Under the joint venture agreement, Good Hemp will contribute up to $160,000 for the preparation of the Facility, as well as up to $174,000 as ongoing operational expenses for the joint venture, and Hervey will contribute exclusive use of the Facility, as well as purchase services and/or purchase or lease necessary equipment for the planting, cultivation and irrigation for growing hemp, and profits shall be split equally by the parties after reimbursement of expenses paid by the parties. The joint venture shall conduct business under the name “Olin Farms, LLC”. On or about August 20, 2020, the Company compensated Hervey $53,433.33 for the initial expenses of the joint venture. The payment was made as follows: (i) a check payable to Hervey in the amount of $33,433.33, and (ii) the issuance of 40,000 shares of Company common stock in lieu of a $20,000 cash payment. On March 15, 2021, the Company issued 30,000 shares of common stock to a consultant for services. On March 23, 2021, the Company issued 17,405 shares of common stock to DGF Services, Inc. for a conversion of $77,952 in convertible debt. See Note 5. On March 25, 2021, the Company issued 65,000 shares of common stock to Leonite in conjunction with financing. See Note 5. On June 16, 2021, the Company issued 166,400 shares of common stock to two investors under the S-1 registration at $1.25 per share for a total of $208,000 in cash. On July 26, 2021, the Company issued 60,000 shares of common stock to one investor under the S-1 registration at $1.25 per share for a total of $75,000 in cash. On July 30, 2021, an investor (the “ Investor On July 30, 2021, the investor holding 500,000 shares of Series B-2 Preferred Stock converted these shares into 833,333 common shares according to the conversion rights. On August 27, 2021, two warrant holders exercised cashless warrants. The Company issued 8,808 shares of common stock in relation to these warrants being exercised. See Part II – Unregistered Sales of Equity Securities and Use of Proceeds regarding the sale of unregistered securities and use of proceeds. |
JOINT VENTURE
JOINT VENTURE | 9 Months Ended |
Sep. 30, 2021 | |
JOINT VENTURE | |
NOTE 10- JOINT VENTURE | NOTE 10 – JOINT VENTURE On August 24, 2020, with an effective date of July 1, 2020, the Company entered into a joint venture agreement with Paul Hervey (“Hervey”) for the purpose of cultivating hemp. Hervey is a licensed hemp cultivator in good standing under the laws of North Carolina with approximately 3,700 square feet of greenhouse cultivation space and approximately 9 acres of farmable land (the “Facility”). Under the joint venture agreement, Good Hemp will contribute up to $160,000 for the preparation of the Facility, as well as up to $174,000 as ongoing operational expenses for the joint venture, and Hervey will contribute exclusive use of the Facility, as well as purchase services and/or purchase or lease necessary equipment for the planting, cultivation and irrigation for growing hemp, and profits shall be split equally by the parties after reimbursement of expenses paid by the parties. The joint venture shall conduct business under the name “Olin Farms, LLC”. On or about August 20, 2020, the Company compensated Hervey $53,433.33 for the initial expenses of the joint venture. The payment was made as follows: (i) a check payable to Hervey in the amount of $33,433.33, and (ii) the issuance of 40,000 shares of Company common stock in lieu of a $20,000 cash payment. On or about August 21, 2020, the Company made an initial cash contribution to Olin Farms, LLC, in the amount of $10,000.00. In October 2021, Olin Farms, LLC was dissolved. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
DISCONTINUED OPERATIONS | |
NOTE 11 - DISCONTINUED OPERATIONS | NOTE 11 – DISCONTINUED OPERATIONS The Company decided during the year to discontinue operations of its majority owned subsidiary, Good Hemp Wellness, LLC. In October 2021, the Company dissolved this entity in accordance with the laws and regulations of North Carolina. In accordance with the provisions of ASC 205-20, the Company has separately reported the assets and liabilities of the discontinued operations in the Consolidated Balance Sheets. The assets and liabilities have been reflected as discontinued operations in the Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020, and consist of the following: September 30, 2021 December 31, 2020 Current Assets of Discontinued Operations: Cash $ 324 $ - Total Current Assets of Discontinued Operations $ 324 $ - In accordance with the provisions of ASC 205-20, the Company has not included in the results of continuing operations the results of operations of the discontinued operations in the Consolidated Statements of Operations. The results of operations for this entity for the three and nine-month periods ended September 30, 2021 and 2020 have been reflected as discontinued operations in the Consolidated Statements of Operations, and consist of the following: Three Months Ended September 30, 2021 September 30, 2020 Net sales $ 1,885 $ - Cost of sales 1,562 - Gross profit 323 - Operating expenses 20,699 - Operating loss (20,376 ) - Loss before taxes of discontinued operations (20,376 ) - Provision for income taxes of discontinued operations - - Net loss of discontinued operations $ (20,376 ) $ - Nine Months Ended September 30, 2021 September 30, 2020 Net sales $ 4,189 $ - Cost of sales 1,814 - Gross profit 2,375 - Operating expenses 75,896 - Operating loss (73,521 ) - Loss before taxes of discontinued operations (73,521 ) - Provision for income taxes of discontinued operations - - Net loss of discontinued operations $ (73,521 ) $ - In accordance with the provisions of ASC 205-20, the Company has separately reported the cash flow activity of the discontinued operations in the Consolidated Statements of Cash Flows. The cash flow activity from discontinued operations for the period ended September 30, 2021 and year ended December 31, 2020 have been reflected as discontinued operations in the Consolidated Statements of Cash Flows and consist of the following: Nine Months Ended September 30, 2021 September 31, 2020 DISCONTINUED OPERATING ACTIVITIES Net loss of discontinued operations $ (73,521 ) $ - Net cash used in operating activities of discontinued operations $ (73,521 ) $ - |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
NOTE 11- SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS Management has evaluated subsequent events, in accordance with FASB ASC Topic 855, “Subsequent Events,” through the date which the financial statements were available to be issued and there are no material subsequent events except as noted below. Effective October 5, 2021, the Company entered into a securities purchase agreement with Jefferson Street Capital, LLC, a New Jersey limited liability company, pursuant to which the Company agreed to issue to the investor a 10% Convertible Redeemable Note, dated October 5, 2021, in the principal amount of $275,000. The note was funded by the investor on October 5, 2021, with the Company receiving funding of $250,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures on August 20, 2022. The Company must begin making monthly payments in February 2022 and March 2022 of $6,000, then five payments of $58,100 from April through August 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 75% multiplied by the lowest closing price during the 10 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. On October 18, 2021, the Company issued 65,000 shares of common stock to an investor under the S-1 registration at $1.25 per share for a total of $75,000 in cash. Effective October 19, 2021, the Company entered into a securities purchase agreement with Sixth Street Lending, LLC, a Virginia limited liability company, pursuant to which the Company agreed to issue to the investor a 5% Convertible Redeemable Note, dated October 19, 2021, in the principal amount of $87,500. The note was funded by the investor on October 19, 2021, with the Company receiving funding of $85,000. The securities purchase agreement includes customary representations, warranties and covenants by the Company and customary closing conditions. The note matures 12 months after the date of the note on October 19, 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The Company follows the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and has a year-end of December 31. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Good Hemp, Inc. and its wholly owned subsidiary, Diamond Creek Group, LLC, and its controlling interest subsidiary, Good Hemp Wellness, LLC. (collectively, the “Company”). All intercompany accounts have been eliminated upon consolidation. |
Condensed Financial Statements | The unaudited condensed financial statements of the Company for the nine month periods ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020 was derived from the audited financial statements included in the Company’s financial statements as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2021. These unaudited condensed financial statements should be read in conjunction with that report. |
Use of Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the recoverability of long-lived assets and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Impairment of Long-Lived Assets | Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. Long-lived assets and certain identifiable intangible assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. |
Goodwill and Other Intangible Assets | Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or when indicators of a potential impairment are present. Our impairment testing of goodwill is performed separately from our impairment testing of indefinite-lived intangibles. The annual evaluation for impairment of goodwill and indefinite-lived intangibles is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. We believe such assumptions are also comparable to those that would be used by other marketplace participants. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, product life cycles, operating plans and the macroeconomic environment of the countries in which the brands are sold. When certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived brands may be adjusted to a determinable life. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. Customer relationships, brands and other non-contractual intangible assets with determinable lives are amortized over periods generally ranging from 5 to 30 years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. |
Fair Value of Financial Instruments | The FASB issued ASC 820-10, Fair Value Measurements and Disclosures - Level 1: Quoted prices in active markets for identical assets or liabilities - Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. - Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter. |
Cash and Cash Equivalents | For purposes of the statement of cash flows, cash equivalents include demand deposits, money market funds, and all highly liquid debt instructions with original maturities of three months or less. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. |
Inventory | Inventory consisting of raw materials and finished product is stated at the lower of cost (first in, first out method) or net realizable value. |
Concentrations and Credit Risk | The Company does not have any financial asset and therefore is not exposed to any credit risks. Cash - The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. |
Accounts Receivable and Allowance for Doubtful Accounts | Trade accounts receivable consists of product sales to customers. Trade accounts receivable are generally due 30 days after issuance of the invoice. Receivables past due more than 120 days are considered delinquent. Delinquent receivables are written off based on specific circumstances of the customer. At June 30, 2021, an allowance was not deemed necessary. |
Derivative Financial Instruments | For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company used a Black Scholes valuation model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. |
Commitment and Contingencies | The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. The Company follows ASC 440-10, Commitments, to report accounting for certain commitments. |
Net Loss Per Common Share | The Company computes net income or loss per share in accordance with ASC 260 Earnings per Share. Under the provisions of the Earnings per Share Topic ASC, basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. |
Income Taxes | The Company accounts for its income taxes in accordance with ASC 740 Income Taxes, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is provided for the amount of deferred tax assets that would otherwise be recorded for income tax benefits primarily relating to operating loss carryforwards as realization cannot be determined to be more likely than not. The statement establishes a more-likely-than-not threshold for recognizing the benefits of tax return positions in the financial statements. Also, the statement implements a process for measuring those tax positions which meet the recognition threshold of being ultimately sustained upon examination by the taxing authorities. There are no uncertain tax positions taken by the Company on its tax returns and the adoption of the statement had no material impact to the Company’s financial statements. The Company files tax returns in the US and states in which it has operations and is subject to taxation. Tax years subsequent to 2013 remain open to examination by U.S. federal and state tax jurisdictions. |
Revenue Recognition | Revenue is recognized in accordance with ASC 606. The Company performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company evaluates the goods or services promised within each contract related performance obligation and assesses whether each promised good or service is distinct. The Company recognizes as revenue, the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company recognizes revenue upon completion of our performance obligations or expiration of the contractual time to use services such as professional service hours purchased in bulk for a given time period. |
Recently Issued Accounting Pronouncements | From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
INTANGIBLE ASSETS | |
Schedule of branding agreement | Gross Value of Branding Agreement $ 2,700,000 Value Utilized (2,700,000 ) Remaining $ - |
Schedule of Acquisition price | Purchase Price Allocation Amount Acquisition cost $ 643,000 Assets acquired Cash and cash equivalents 38,635 Accounts receivable 41,611 Property and Equipment 97,228 Total assets acquired 177,474 Liabilities assumed Accounts payable and accrued liabilities 77,998 Note payable 20,000 Total liabilities assumed 97,998 Goodwill $ 563,524 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Summary purchases towards related party | Class A Name Preferred Shares Consideration William Alessi 12,000,000 $ 200,000 (1) Chris Chumas 6,000,000 $ 100,000 (1) |
Schedule of due to related party | Interest Common Shares Preferred Shares Name Principal rate # # Chris Chumas $ 150,287 8%-10 % 7,000,000 nil William Alessi 250,288 0%-10 % 6,971,050 (1) nil JanBella Group (2) 110,000 10 % nil nil S. Mark Spoone nil 450,000 nil Total $ 510,575 |
DERIVATIVE LIABILITIES (Tables)
DERIVATIVE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE LIABILITIES | |
Schedule of Summary fair values of the liabilities measured | Nine months ended September 30, 2021 Expected term 1.00 years Expected average volatility 321.5 % Expected dividend yield - Risk-free interest rate 7.00 % |
Schedule of Summary fair value measurements of the derivative liabilities | Total Level 1 Level 2 Level 3 $ 4,652,050 $ - $ - $ 4,652,050 Total Level 1 Level 2 Level 3 $ 1,526,495 $ - $ - $ 1,526,495 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DISCONTINUED OPERATIONS | |
Assets and liabilities reflected as discontinued operations | September 30, 2021 December 31, 2020 Current Assets of Discontinued Operations: Cash $ 324 $ - Total Current Assets of Discontinued Operations $ 324 $ - |
Discontinued operations in the Consolidated Statements of Operations | Three Months Ended September 30, 2021 September 30, 2020 Net sales $ 1,885 $ - Cost of sales 1,562 - Gross profit 323 - Operating expenses 20,699 - Operating loss (20,376 ) - Loss before taxes of discontinued operations (20,376 ) - Provision for income taxes of discontinued operations - - Net loss of discontinued operations $ (20,376 ) $ - Nine Months Ended September 30, 2021 September 30, 2020 Net sales $ 4,189 $ - Cost of sales 1,814 - Gross profit 2,375 - Operating expenses 75,896 - Operating loss (73,521 ) - Loss before taxes of discontinued operations (73,521 ) - Provision for income taxes of discontinued operations - - Net loss of discontinued operations $ (73,521 ) $ - Nine Months Ended September 30, 2021 September 31, 2020 DISCONTINUED OPERATING ACTIVITIES Net loss of discontinued operations $ (73,521 ) $ - Net cash used in operating activities of discontinued operations $ (73,521 ) $ - |
NATURE OF OPERATIONS (Details N
NATURE OF OPERATIONS (Details Narrative) - USD ($) | Aug. 13, 2021 | Feb. 04, 2021 | May 08, 2020 | Apr. 23, 2021 | Apr. 21, 2021 | Apr. 20, 2021 | Aug. 18, 2020 | Jul. 21, 2020 | Mar. 30, 2020 | Sep. 30, 2021 | Apr. 02, 2021 |
Ownership percentage towards common stock | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | ||
Acquisition paid initial portion of purchase price | $ 143,000 | $ 643,000 | $ 500,000 | ||||||||
Series B-1 Convertible Preferred Shares [Member] | |||||||||||
Ownership percentage towards common stock | 4.99% | ||||||||||
Preferred stock shares authorized, designating shares | 250,000 | ||||||||||
Conversion feature description | Each share of Series B-1 Preferred Stock is convertible into 1.667 shares of Company common stock (subject to a 4.99% beneficial ownership limitation). | ||||||||||
Series B-2 Convertible Preferred Shares [Member] | |||||||||||
Ownership percentage towards common stock | 4.99% | ||||||||||
Preferred stock shares authorized, designating shares | 750,000 | ||||||||||
Shares issuable description | Each share of Series B-2 Preferred Stock is convertible into a number of shares of Company common stock equal to $1.00 divided by (i) the lesser of $0.60 or 60% of the 14-day average closing price of the Company’s common stock at the time of conversion (the “Market Price”) if the conversion occurs within 6 months of July 21, 2020, or (ii) 60% of the Market Price if the conversion occurs at least 6 months after July 21, 2020 (subject to a 4.99% beneficial ownership limitation). |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
GOING CONCERN | ||||||||
Working capital deficit | $ (6,277,411) | $ (6,277,411) | ||||||
Net loss | $ (1,856,933) | $ (2,447,609) | $ (1,442,815) | $ (149,944) | $ (652,671) | $ (188,551) | $ (5,747,357) | $ (991,166) |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) | Sep. 30, 2021USD ($) |
Gross Value of Branding | |
Gross Value of Branding Agreement | $ 2,700,000 |
Value Utilized | (2,700,000) |
Remaining | $ 0 |
INTANGIBLE ASSETS (Details 1)
INTANGIBLE ASSETS (Details 1) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
GOING CONCERN | ||
Acquisition cost | $ 643,000 | |
Assets acquired | ||
Cash and cash equivalents | 38,635 | |
Accounts receivable | 41,611 | |
Property and Equipment | 97,228 | |
Total assets acquired | 177,474 | |
Liabilities assumed | ||
Accounts payable and accrued liabilities | 77,998 | |
Note payable | 20,000 | |
Total liabilities assumed | 97,998 | |
Goodwill | $ 563,524 | $ 0 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | Feb. 06, 2019 | Apr. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Apr. 02, 2021 | Feb. 28, 2020 |
Related inventory consideration | $ 32,462 | ||||||
Intangible asset | $ 2,700,000 | ||||||
Closing price of common shares | $ 0.45 | ||||||
Shares issued upon agreement | 6,000,000 | ||||||
Recognized expense | $ 2,700,000 | ||||||
Acquisition paid initial portion of purchase price | 643,000 | $ 143,000 | $ 500,000 | ||||
Proceeds from issuance of preferred stock | $ 250,000 | $ 250,000 | |||||
Class A Preferred Shares [Member] | S. Mark Spoone [Member] | |||||||
Preferred stock shares issued for acquisitions | 12,000,000 | ||||||
Proceeds from issuance of preferred stock | $ 12,000 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | Aug. 13, 2021 | May 04, 2021 | Mar. 15, 2021 | Feb. 04, 2021 | May 10, 2020 | May 08, 2020 | Apr. 08, 2020 | Mar. 15, 2019 | Mar. 14, 2019 | Apr. 23, 2021 | Apr. 22, 2021 | Apr. 21, 2021 | Apr. 20, 2021 | Mar. 26, 2021 | Feb. 16, 2021 | Aug. 21, 2020 | Aug. 18, 2020 | Aug. 04, 2020 | Jul. 31, 2020 | Mar. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Aug. 20, 2020 | Aug. 01, 2020 | Jul. 14, 2020 |
Proceeds from unrelated third party | $ 103,000 | $ 50,000 | ||||||||||||||||||||||||||
Legal fees | $ 80,000 | $ 40,000 | $ 10,000 | $ 2,500 | ||||||||||||||||||||||||
Common stock price per share | $ 1.20 | |||||||||||||||||||||||||||
Interest rate | 8.00% | |||||||||||||||||||||||||||
Common stock issuance of shares | 65,000 | 40,000 | ||||||||||||||||||||||||||
Convertible note prepayment description | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The Note carries a prepayment penalty if the Note is paid off in 60, 90, 120,150, or 180 days following the Note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 115%, 120%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | ||||||||||||||||||||||||
Ownership percentage towards common stock | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | 4.99% | |||||||||||||||||||
Shares issuable description | The number of shares to be issued upon conversion would be determined by dividing the amount to be converted by 60% of the average of the three lowest closing prices of the Company’s common stock during the ten trading days immediately preceding the conversion date. | The Note matures 12 months after the date of the Note on March 23, 2021. The Note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the Note, at a conversion price equal to 65% | ||||||||||||||||||||||||||
Convertible promissory note principal amount | $ 67,500 | |||||||||||||||||||||||||||
Interest charge | $ 103,257 | $ 3,192 | $ 170,997 | $ 20,360 | ||||||||||||||||||||||||
Note payable | $ 19,100 | $ 19,100 | $ 19,100 | |||||||||||||||||||||||||
Common stock shares issued | 23,444,775 | 23,444,775 | 22,263,829 | |||||||||||||||||||||||||
Restricted Stock [Member] | ||||||||||||||||||||||||||||
Common stock shares issued upon debt conversion | 67,750 | |||||||||||||||||||||||||||
JRF AZ Investments LLC [Member] | ||||||||||||||||||||||||||||
Principal amount | $ 60,000 | |||||||||||||||||||||||||||
Convertible note descriptions | The JRF Note matured nine months after the date of the note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion | |||||||||||||||||||||||||||
Common stock shares issued | 111,359 | |||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||
Legal fees | $ 225,000 | $ 50,000 | $ 2,000 | $ 2,000 | $ 3,750 | $ 82,000 | $ 2,000 | $ 2,000 | ||||||||||||||||||||
Interest rate | 10.00% | 8.00% | 8.00% | 8.00% | ||||||||||||||||||||||||
Principal amount | $ 250,375 | 74,000 | $ 60,000 | |||||||||||||||||||||||||
Interest charge | 25,037 | |||||||||||||||||||||||||||
Monthly payment | $ 27,541 | |||||||||||||||||||||||||||
Original issue discount | 25,375 | 8,000 | $ 80,000 | |||||||||||||||||||||||||
Convertible promissory note | $ 225,000 | $ 50,000 | $ 127,000 | $ 85,750 | $ 568,182 | $ 78,750 | ||||||||||||||||||||||
Convertible note descriptions | The note matures 12 months after the date of the note on May 4, 2022. The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. The note carries a prepayment penalty if it is paid off in 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 115% if prepaid within 60 days, 120% if prepaid from 61 days-120 days, and 125% if prepaid between 121 days-180 days of issuance. After the expiration of 180 days, the Company shall have no right of prepayment. | The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The note carries a prepayment penalty if it is paid off in 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 105% if prepaid within 60 days, 120% if prepaid from 61 days-120 days, and 125% if prepaid between 121 days-180 days of issuance. After the expiration of 180 days, the Company shall have no right of prepayment. | The note matures 12 months after the date of the note on March 26, 2022. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The JRF Note matured nine months after the date of the note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion. | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | GS Capital Partners [Member] | ||||||||||||||||||||||||||||
Legal fees | $ 3,750 | |||||||||||||||||||||||||||
Maturity date | Apr. 21, 2022 | |||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Metrospaces, Inc. [Member] | ||||||||||||||||||||||||||||
Maturity date | Apr. 20, 2022 | |||||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Power Up Lending Group [Member] | ||||||||||||||||||||||||||||
Legal fees | $ 2,000 | $ 2,000 | ||||||||||||||||||||||||||
Interest rate | 8.00% | 8.00% | ||||||||||||||||||||||||||
Convertible note prepayment description | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note matures 12 months after the date of the note on August 17, 2021. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion; provided, however, that the Investor may not convert the note to the extent that such conversion would result in the Investor’s beneficial ownership of the Company’s common stock being in excess of 4.99% of the Company’s issued and outstanding common stock. The beneficial ownership limitation may not be waived by the Investor. The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | ||||||||||||||||||||||||
Ownership percentage towards common stock | 4.99% | |||||||||||||||||||||||||||
Shares issuable description | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note matures 12 months after the date of the note on May 7, 2021. The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day period ending on the last complete trading day prior to the date of conversion | The note carries a prepayment penalty if the note is paid off in 30, 60, 90, 120, 150, or 180 days following the note date. The prepayment penalty is based on the then-outstanding principal at the time of payoff, plus accrued and unpaid interest, multiplied by 112%, 115%, 118%, 125%, 130%, and 135% respectively. After the expiration of 180 days following the issue date, the Company shall have no right of prepayment. | The note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the date of the note, at a conversion price equal to 65% multiplied by the lowest closing bid price during the 20 trading day | ||||||||||||||||||||||||
Convertible promissory note principal amount | $ 42,000 | $ 128,000 | ||||||||||||||||||||||||||
Maturity date | Aug. 13, 2022 | Feb. 4, 2022 | Mar. 26, 2022 | Feb. 16, 2022 | Aug. 17, 2021 | |||||||||||||||||||||||
Securities Purchase Agreement [Member] | DGF Services, Inc. [Member] | ||||||||||||||||||||||||||||
Maturity date | Feb. 3, 2021 | |||||||||||||||||||||||||||
Note payable | $ 10,000 | |||||||||||||||||||||||||||
Interest rate | 7.00% | |||||||||||||||||||||||||||
Conversion price | $ 0.60 | |||||||||||||||||||||||||||
Common stock shares issued upon debt conversion | 30,000 | |||||||||||||||||||||||||||
Conversion of debt | $ 10,456 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Jul. 22, 2019USD ($)shares |
William Alessi [Member] | |
Consideration | $ | $ 200,000 |
Chris Chumas [Member] | |
Consideration | $ | $ 100,000 |
Class A Preferred Shares [Member] | William Alessi [Member] | |
Purchase of preferred stock shares | shares | 12,000,000 |
Class A Preferred Shares [Member] | Chris Chumas [Member] | |
Purchase of preferred stock shares | shares | 6,000,000 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Sep. 30, 2021 | Jul. 18, 2019 |
Principal | $ 510,575 | |
Interest rate | 10.00% | |
Chris Chumas [Member] | ||
Principal | $ 150,287 | |
Common shares | 7,000,000 | |
Chris Chumas [Member] | Minimum [Member] | ||
Interest rate | 8.00% | |
Chris Chumas [Member] | Maximum [Member] | ||
Interest rate | 10.00% | |
William Alessi [Member] | ||
Principal | $ 250,288 | |
Common shares | 6,971,050 | |
William Alessi [Member] | Minimum [Member] | ||
Interest rate | 0.00% | |
William Alessi [Member] | Maximum [Member] | ||
Interest rate | 10.00% | |
JanBella Group [Member] | ||
Principal | $ 110,000 | |
Interest rate | 10.00% | |
S. Mark Spoone [Member] | ||
Principal | $ 0 | |
Common shares | 450,000 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | |||||||
Jan. 29, 2020 | Jul. 22, 2019 | Jul. 18, 2019 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 06, 2019 | |
Converted description | The number of shares which will be issued upon any conversion of the notes will be determined by dividing the principal amount to be converted (plus, at the option of the noteholder, accrued and unpaid interest) by the lower of (i) $0.001 or, (ii) 50% of the lowest bid price during the forty-five consecutive trading day period ending on the trading day immediately prior to the conversion date. | |||||||
Interest rate | 10.00% | |||||||
Common stock shares issued | 23,444,775 | 22,263,829 | ||||||
Mr. Alessi Trust [Member] | ||||||||
Common stock shares issued | 7,000,000 | |||||||
Common stock shares held | 6,971,000 | |||||||
Debt instrument converted amount | $ 7,000 | |||||||
Mr. William Alessi [Member] | ||||||||
Common stock shares issued | 7,000,000 | |||||||
Common stock shares held | 50 | |||||||
Debt instrument converted amount | $ 7,000 | |||||||
Preferred stock shares sold | 6,000,000 | |||||||
Proceeds from preferred stock shares sold | $ 100,000 | |||||||
Purchase of preferred stock shares | 12,000,000 | |||||||
Preferred shares, note payable | $ 12,000 | |||||||
Maurice Bideaux [Member] | ||||||||
Due to related party | $ 17,574 | |||||||
Unpaid amount | $ 38,910 | |||||||
Class A Preferred Shares [Member] | S. Mark Spoone [Member] | ||||||||
Interest rate | 8.00% | |||||||
Converted class A Preferred Shares into common stock | 450,000 | |||||||
Class A Preferred Stock, Converted Instrument | 12,000,000 |
DERIVATIVE LIABILITIES (Details
DERIVATIVE LIABILITIES (Details) | 9 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE LIABILITIES | |
Expected term | 1 year |
Expected average volatility | 321.50% |
Expected dividend yield | 0.00% |
Risk-free interest rate | 7.00% |
DERIVATIVE LIABILITIES (Detai_2
DERIVATIVE LIABILITIES (Details 1) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Total | $ 4,652,050 | $ 1,526,495 |
Level 1 [Member] | ||
Total | 0 | 0 |
Level 2 [Member] | ||
Total | 0 | 0 |
Level 3 [Member] | ||
Total | $ 4,652,050 | $ 1,526,495 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) | Jul. 30, 2021USD ($)$ / sharesshares | Mar. 15, 2021shares | May 10, 2020USD ($) | Apr. 08, 2020USD ($) | Mar. 23, 2021USD ($)shares | Aug. 24, 2020USD ($)ft² | Aug. 21, 2020USD ($) | Aug. 20, 2020USD ($)shares | Jul. 31, 2020USD ($) | Jul. 29, 2020USD ($)shares | Jun. 24, 2020USD ($)shares | Mar. 30, 2020USD ($) | Jan. 29, 2020USD ($)shares | Sep. 30, 2021USD ($)shares | Aug. 27, 2021shares | Jul. 26, 2021USD ($)$ / sharesshares | Jun. 16, 2021USD ($)$ / sharesshares | Mar. 26, 2021shares | Mar. 25, 2021shares | Dec. 31, 2020USD ($)shares | Aug. 01, 2020shares | Feb. 28, 2020shares |
Debt conversion, shares | 17,405 | |||||||||||||||||||||
Debt conversion, amount | $ | $ 77,952 | |||||||||||||||||||||
Common stock issuance of shares | 40,000 | 65,000 | ||||||||||||||||||||
Cash payment | $ | $ 20,000 | |||||||||||||||||||||
Shares issued for service rendered, shares | 30,000 | |||||||||||||||||||||
Common stock shares issued | 23,444,775 | 22,263,829 | ||||||||||||||||||||
Common stock value | $ | $ 23,445 | $ 22,264 | ||||||||||||||||||||
Initial expenses | $ | $ 80,000 | $ 40,000 | $ 10,000 | $ 2,500 | ||||||||||||||||||
Leonite [Member] | ||||||||||||||||||||||
Common stock issuance of shares | 65,000 | |||||||||||||||||||||
Chris Chumas [Member] | ||||||||||||||||||||||
Common stock shares issued | 7,000,000 | |||||||||||||||||||||
Shares issued principal amount | $ | $ 7,000 | |||||||||||||||||||||
Paul Hervey [Member] | ||||||||||||||||||||||
Payment of related party | $ | 33,433 | |||||||||||||||||||||
Branding Agreement [Member] | Spire Holdings, LLC [Member] | ||||||||||||||||||||||
Common stock shares issued | 6,000,000 | |||||||||||||||||||||
Joint Venture Agreement [Member] | ||||||||||||||||||||||
Initial expenses | $ | $ 53,433 | |||||||||||||||||||||
Contribution amount | $ | $ 160,000 | |||||||||||||||||||||
Operational expenses | $ | $ 174,000 | |||||||||||||||||||||
Joint Venture Agreement [Member] | Paul Hervey [Member] | ||||||||||||||||||||||
Greenhouse cultivation space | ft² | 3,700 | |||||||||||||||||||||
Farmable land | ft² | 9 | |||||||||||||||||||||
Consulting Service Agreement [Member] | Scott Shellady [Member] | July 1, 2020 [Member] | ||||||||||||||||||||||
Shares issued for service rendered, shares | 100,000 | |||||||||||||||||||||
Payment of consulting services fee per month | $ | $ 5,000 | |||||||||||||||||||||
JRF AZ Investments II, LP [Member] | August 1, 2020 [Member] | Convertible Promissory Note [Member] | ||||||||||||||||||||||
Principal amount | $ | $ 60,000 | |||||||||||||||||||||
Conversion price description | Note matured six months after the date of the Note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion. | |||||||||||||||||||||
Investor [Member] | ||||||||||||||||||||||
Aggregate purchase price | $ | $ 250,000 | |||||||||||||||||||||
Preferred stock shares descriptions | 250000 | |||||||||||||||||||||
One Investor [Member] | S-1 registration [Member] | ||||||||||||||||||||||
Common stock shares issued | 60,000 | |||||||||||||||||||||
Price per share | $ / shares | $ 1.25 | |||||||||||||||||||||
Common stock value | $ | $ 75,000 | |||||||||||||||||||||
Two Warrnat Holder [Member] | ||||||||||||||||||||||
Common stock shares issued | 8,808 | |||||||||||||||||||||
Two Investor [Member] | S-1 registration [Member] | ||||||||||||||||||||||
Common stock shares issued | 166,400 | |||||||||||||||||||||
Price per share | $ / shares | $ 1.25 | |||||||||||||||||||||
Common stock value | $ | $ 208,000 | |||||||||||||||||||||
JRF AZ Investments LLC [Member] | ||||||||||||||||||||||
Common stock shares issued | 111,359 | |||||||||||||||||||||
Conversion price description | The JRF Note matured nine months after the date of the note and was convertible into shares of the Company’s common stock at a conversion price equal to 60% of the average closing price during the 10 trading day period ending on the trading day prior to conversion | |||||||||||||||||||||
Mr. William Alessi [Member] | ||||||||||||||||||||||
Common stock shares issued | 7,000,000 | |||||||||||||||||||||
Shares issued principal amount | $ | $ 7,000 | |||||||||||||||||||||
Series B-2 Preferred Shares [Member] | Investor [Member] | ||||||||||||||||||||||
Conversion of stock | 500,000 | |||||||||||||||||||||
Stock converted into common stock | 833,333 | |||||||||||||||||||||
Common stock shares issued | 250,000 | |||||||||||||||||||||
Price per share | $ / shares | $ 1 | |||||||||||||||||||||
Common stock value | $ | $ 250,000 | |||||||||||||||||||||
Series B-1 Preferred Shares [Member] | ||||||||||||||||||||||
Preferred stock shares | 250,000 |
JOINT VENTURES (Details Narrati
JOINT VENTURES (Details Narrative) | May 10, 2020USD ($) | Apr. 08, 2020USD ($) | Aug. 24, 2020USD ($)ft² | Aug. 21, 2020USD ($) | Aug. 20, 2020USD ($)shares | Mar. 30, 2020USD ($) | Mar. 26, 2021shares |
Initial expenses | $ 80,000 | $ 40,000 | $ 10,000 | $ 2,500 | |||
Common stock issuance of shares | shares | 40,000 | 65,000 | |||||
Cash payment | $ 20,000 | ||||||
Paul Hervey [Member] | |||||||
Payment of related party | 33,433 | ||||||
Joint Venture Agreement [Member] | |||||||
Initial expenses | $ 53,433 | ||||||
Operational expenses | $ 174,000 | ||||||
Contribution amount | $ 160,000 | ||||||
Joint Venture Agreement [Member] | Paul Hervey [Member] | |||||||
Farmable land | ft² | 9 | ||||||
Greenhouse cultivation space | ft² | 3,700 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Current Assets of Discontinued Operations: | |||
Cash | $ 324 | $ 0 | $ 0 |
Total Current Assets of Discontinued Operations | $ 324 | $ 0 |
DISCONTINUED OPERATIONS (Deta_2
DISCONTINUED OPERATIONS (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net sales | $ 416,327 | $ 102,010 | $ 943,364 | $ 383,356 |
Cost of sales | 408,757 | 77,688 | 883,510 | 290,157 |
Gross profit | 7,570 | 24,322 | 59,854 | 93,199 |
Operating expenses | 650,996 | 290,922 | 2,476,204 | 456,510 |
Operating loss | (643,426) | (266,600) | (2,416,350) | (363,311) |
Loss before taxes of discontinued operations | 6,793 | 0 | 24,512 | 0 |
Net loss of discontinued operations | (20,376) | 0 | (73,521) | 0 |
Statements Of Operations [Member] | ||||
Net sales | 1,885 | 0 | 4,189 | 0 |
Cost of sales | 1,562 | 0 | 1,814 | 0 |
Gross profit | 323 | 0 | 2,375 | 0 |
Operating expenses | 20,699 | 0 | 75,896 | 0 |
Operating loss | (20,376) | 0 | (73,521) | 0 |
Loss before taxes of discontinued operations | (20,376) | 0 | (73,521) | 0 |
Provision for income taxes of discontinued operations | 0 | 0 | 0 | 0 |
Net loss of discontinued operations | $ (20,376) | $ 0 | $ (73,521) | $ 0 |
DISCONTINUED OPERATIONS (Deta_3
DISCONTINUED OPERATIONS (Details 2) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
DISCONTINUED OPERATING ACTIVITIES | ||
Net loss of discontinued operations | $ (73,521) | $ 0 |
Net cash used in operating activities of discontinued operations | $ (73,521) | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Oct. 05, 2021 | Oct. 19, 2021 | Oct. 18, 2021 | Sep. 30, 2021 | Aug. 13, 2021 | May 04, 2021 | Apr. 21, 2021 | Mar. 26, 2021 | Feb. 16, 2021 | Feb. 04, 2021 | Dec. 31, 2020 |
Common stock value | $ 23,445 | $ 22,264 | |||||||||
securities purchase agreement [Member] | |||||||||||
Convertible debt | $ 225,000 | $ 50,000 | $ 85,750 | $ 568,182 | $ 78,750 | $ 127,000 | |||||
Subsequent Event [Member] | securities purchase agreement [Member] | Sixth Street Lending, LLC [Member] | Convertible Redeemable Note [Member] | |||||||||||
Convertible debt, maturity date | October 19, 2022 | ||||||||||
Proceeds from convertible debt | $ 85,000 | ||||||||||
Convertible debt | $ 87,500 | ||||||||||
Convertible debt, interest rate | 5.00% | ||||||||||
Terms of conversion feature | The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 65% multiplied by the lowest closing price during the 20 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. | ||||||||||
Subsequent Event [Member] | securities purchase agreement [Member] | Jefferson Street Capital, LLC [Member] | Convertible Redeemable Note [Member] | |||||||||||
Convertible debt, maturity date | August 20, 2022 | ||||||||||
Proceeds from convertible debt | $ 250,000 | ||||||||||
Convertible debt | $ 275,000 | ||||||||||
Convertible debt, interest rate | 10.00% | ||||||||||
Terms of conversion feature | The note is convertible into shares of the Company’s common stock at any time at a conversion price equal to 75% multiplied by the lowest closing price during the 10 trading day period prior to the date of conversion (and including the conversion date); provided, however, that the investor may not convert the note to the extent that such conversion would result in the investor’s beneficial ownership of the Company’s common stock being in excess of 9.9% of the Company’s issued and outstanding common stock. | ||||||||||
Amount of monthly payments for from April through August 2022 | $ 58,100 | ||||||||||
Amount of monthly payments for February and March 2022 | $ 6,000 | ||||||||||
Subsequent Event [Member] | S-1 registration [Member] | Investor [Member] | |||||||||||
Common stock shares issued | 65,000 | ||||||||||
Common stock value | $ 75,000 | ||||||||||
Price per share | $ 1.25 |