0001014897-20-000073.txt : 20201026 0001014897-20-000073.hdr.sgml : 20201026 20200924174816 ACCESSION NUMBER: 0001014897-20-000073 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 56 CONFORMED PERIOD OF REPORT: 20200331 FILED AS OF DATE: 20200925 DATE AS OF CHANGE: 20200924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Global Arena Holding, Inc. CENTRAL INDEX KEY: 0001138724 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 330931599 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-49819 FILM NUMBER: 201196193 BUSINESS ADDRESS: STREET 1: 208 EAST 51ST STREET STREET 2: SUITE 112 CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 646-801-6146 MAIL ADDRESS: STREET 1: 208 EAST 51ST STREET STREET 2: SUITE 112 CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: China Stationery & Office Supply, Inc. DATE OF NAME CHANGE: 20060719 FORMER COMPANY: FORMER CONFORMED NAME: DICKIE WALKER MARINE INC DATE OF NAME CHANGE: 20010419 10-Q 1 gahcform10q033120v6clean.htm GLOBAL ARENA FORM 10-Q 03-31-20 Converted by EDGARwiz

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


Form 10-Q


Quarterly report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2020

-OR_

Transition report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______ to _______.


Commission file number 000-49819


GLOBAL ARENA HOLDINGS, INC.

(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation or organization)

33-0931599
(I.R.S. Employer Identification No.)



208 East 51 Street, Suite 112

New York, New York
(Address of principal executive offices)


10022
(Zip code)


(646) 801-6146
(Registrants
telephone number, including area code)


Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [  ]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, or a small reporting company (as defined by Rule 12b-2 of the Exchange Act):


Large accelerated filer [  ]

Non-accelerated filer [  ]

Accelerated filer [  ]

Smaller reporting company [x]

Emerging growth company [  ]


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ] No [x]


As of September 24, 2020, the registrant had 1,515,398,504 outstanding shares of common stock.




GLOBAL ARENA HOLDINGS, INC. TABLE OF CONTENTS


PART I - FINANCIAL INFORATION




Item 1.  Financial Statements


3




    Condensed Consolidated Balance Sheets at March 31, 2020 (Unaudited) and December 31, 2019


4




    Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019 (Unaudited)


5




    Condensed Consolidated Statements of Stockholders Equity (Deficit) for the Three Months Ended March 31, 2020 and 2019 (Unaudited)


6




    Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (Unaudited)


7




Notes to Condensed Consolidated Financial Statements (Unaudited)


8




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


20

Item 3.  Quantitative and Qualitative Disclosure About Market Risk


23

Item 4.  Controls and Procedures


23


PART II - OTHER INFORMATION


Item 1.  Legal Proceedings


25

Item 1A. Risk Factors


25

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


25

Item 3.  Defaults Upon Senior Securities


25

Item 4.  Mine Safety Disclosures


25

Item 5.  Other Information


25

Item 6.  Exhibits


26




Signatures


27


2




2


PART I - FINANCIAL INFORMATION

This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934. These statements are based on managements beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations.  Forward-looking statements also include statements in which words such as expect, anticipate, intend, plan, believe, estimate, consider, or similar expressions are used.


Forward-looking statements are not guarantees of future performance.  They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.


3





GLOBAL ARENA HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATE BALANCE SHEETS



March 31,

December 31,


2020

2019


(unaudited)


ASSETS


Current Assets:


    Cash and cash equivalents

$           9,031

$        17,502

       Total current assets

9,031

 17,502




Deposits for proposed acquisitions

546,150

546,150

            TOTAL ASSETS

$      555,181

$      563,652




LIABILITIES AND STOCKHOLDERS' DEFICIT



 Current Liabilities:



    Accounts payable

$      275,414

$      281,241

    Accrued expenses

2,255,151

2,081,167

    Convertible promissory notes payable,  



       net of debt discount of $241,091 and $197,296

4,728,833

4,639,628

    Promissory notes payable

230,000

230,000

    Deferred revenue

79,313

40,500

    Derivative liability

645,302

742,280

      Total current liabilities

8,214,013

8,014,816




STOCKHOLDERS' DEFICIT




Global Arena Holdings, Inc.




   Preferred stock, $0.001 par value; 2,000,000 shares    

     authorized;


 


      Series B preferred stock; 250,000 shares authorized




      49,202 and 60,000 issued and outstanding

49

60


   Common stock, $0.001 par value; 2,000,000,000 shares authorized;




      1,125,507,119 and 985,539,957 shares issued and outstanding

1,125,507

985,540


   Additional paid-in capital

18,652,567

18,524,842


   Accumulated deficit

 (27,413,913)

 (26,961,606)


      Total Global Arena Holdings, Inc. stockholders deficit

 (7,635,790)

 (7,451,164)


Noncontrolling interest

(23,042)

-


      Total stockholders deficit

(7,658,832)

(7,451,164)


            TOTAL LIABILITIES AND STOCKHOLDERS'

                DEFICIT

$      555,181

$      563,652


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements


4


GLOBAL ARENA HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)






Three Months Ended March 31,





2020

2019

Revenues:






Services



$        108,429

$        57,354







Operating expenses:





Salaries and benefits


117,713

72,979


Marketing and advertising

1,058

-


Software development

65,285

-


Professional fees


47,492

66,213


General and administrative

157,158

74,785


Printing



48,836

3,055


     Total operating expenses

437,542

217,032







Loss from operations


(329,113)

(159,678)







Other expenses:






Interest expense and financing costs

(243,214)

(262,182)


Change in fair value of derivative liability

96,978

(28,692)


     Total other expenses

(146,236)

(290,874)

Income (loss) before provision for taxes

(475,349)

(450,552)

Provision for income taxes


-

-

Net loss


(475,349)

(450,552)

Net loss attributed to noncontrolling interest


(23,042)

-

Net loss attributed to Global Arena Holdings, Inc.


$      (452,307)

$      (450,552)







Weighted average shares outstanding

   - basic and diluted

1,025,996,664

937,006,785







Earnings (loss) per share - basic and diluted

$           (0.00)

$            (0.00)





$           (0.00)

$           ( 0.00)


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


5


GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT



Series B Preferred Stock

Common Stock

Additional Paid-in

Accumulated

Total Global Stockholders'


Shares

Amount

Shares

Amount

Capital

Deficit

Deficit

Balance, December 31, 2019

60,000

$       60

985,359,957

$985,540

$18,524,842

$(26,961,606)

$(7,451,164)

Issuance of common stock for

  convertible debt and accrued

  interest



103,447,553

103,448

18,752


122,200

Issuance of common stock for Series

  B Preferred Stock

(10,978)

(11)

36,519,609

36,519

(36,508)


-

Allocated value of warrants and

  beneficial conversion feature related

  to issuance of convertible debt





145,481


145,481

Net loss






(452,307)

(452,307)

Balance, March 31, 2020

49,202

$49

1,125,327,119

$1,125,507

$18,652,567

$(27,413,913)

$(7,635,790)









Balance, December 31, 2018

60,000

$       60

934,568,736

$934,569

$18,028,413

$(25,021,933)

$(6,058,891)

Issuance of common stock for

  accrued interest



10,971,221

10,971

(4,827)


6,144

Fair value of stock options issued for

  services







-

Allocated value of warrants and

  beneficial conversion feature related

  to issuance of convertible debt





43,220


43,220

Net loss






(450,552)

(450,552)

Balance, March 31, 2019

60,000

$60

945,539,957

$945,540

$18,066,806

$(25,472,485)

$(6,460,079)


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


6


GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)






Three Months Ended March 31,






2020

2019

 

OPERATING ACTIVITIES:



 


Net income (loss)


$  (475,349)

$  (450,552)

 


Adjustments to reconcile net income (loss) to



 


   net cash used in operating activities:



 




Amortization of debt discount

101,686

178,175

 




Change in fair value of derivative liability

(96,978)

28,692

 



Change in assets and liabilities:



 




Deferred revenue

38,813

11,000

 




Accounts payable

(5,827)

14,000

 




Accrued expenses

189,184

81,994

 


Net cash used in operating activities

(248,471)

(136,691)

 








 

FINANCING ACTIVITIES:



 



Proceeds from convertible promissory notes payable

250,000

122,500

 



Repayment of convertible promissory notes payable

(10,000)

(22,500)

 


Net cash used in financing activities

240,000

100,000

 








 

NET DECREASE IN CASH AND CASH EQUIVALENTS

(8,471)

(36,691)

 




 

CASH AND CASH EQUIVALENTS, BEGINNING BALANCE

17,502

43,574

 




 

CASH AND CASH EQUIVALENTS, ENDING BALANCE

$      9,031

$      6,883

 








 

CASH PAID FOR:




 


Interest


$    10,100

$              -

 


Income taxes


$              -

$              -

 








 

NON-CASH INVESTING AND FINANCING ACTIVITIES:



 


Allocated value of warrants and beneficial conversion features

related to debt

$  145,481

$    47,003

 


Debt converted to common stock

$  122,000

$      6,144

 


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


7


Global Arena Holdings, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2020 and 2019

(Unaudited)


NOTE 1 - ORGANIZATION


Organization and Business


On February 25, 2015, Global Election Services, Inc. (GES) formed on February 25, 2015, provides comprehensive technology-enabled paper absentee/mail ballot and internet election services to organizations such as craft and trade organizations, labor unions, political parties, co-operatives and housing organizations, associations and professional societies, universities, and political organizations. GES has developed proprietary election software for a data storage and retrieval registration system to determine voter eligibility and prevent duplicate votes with In-Person digital signature capture, as well as proprietary election software for scanning/tabulation utilizing advanced OMR/OCR/Barcode imaging software featuring de-skewing, de-speckling and image correction. This system provides three types of audit capabilities. The hardware includes high speed optical scanners that are hard lined to a computer with all Wi-Fi disabled so the entire tabulation process occurs offline, eliminating the opportunity for hacking.  GES is also working with multiple vendors and has made investments in companys who are developing Blockchain Technology for a data storage and retrieval registration system; tabulation of paper Absentee/Mail Ballots; and internet voting.


The Company has also signed a letter of Intent to acquire the assets of Election Services Solutions including all clients, contracts and employment contracts. This asset purchase is currently pending to close in the third quarter 2020.


On May 20th, 2015 the Company incorporated a new wholly owned entity in the State of Delaware called GAHI Acquisition Corp. This entity was incorporated at the time to be the merger subsidiary for the acquisition of Blockchain Technologies Corp. (BTC) and other software system development.


On May 20, 2015 the Company entered into an agreement and plan of merger with BTC. Under this agreement, BTC would have merged with GAHI Acquisition, and GAHI Acquisition, would have been the surviving corporation. As consideration for the merger, the Company was to reserve a number of shares equal to 1/3 the total issued and outstanding of the Company to be issued to BTC shareholders at closing. On October 20, 2015, the parties agreed to extend the closing date of the merger to December 15, 2015. This agreement expired on December 15, 2015.


Concurrently, on October 20, 2015, the Company paid $125,000 in cash to BTC and issued to Nikolaos Spanos 1,377,398 of its common shares and 1,993,911 warrants to purchase its common shares at the exercise price of $.10 per common share with an exercise period of three years. The warrants have expired. The common shares and warrants were issued for the purchase of 1,000,000 common shares of BTC. Said common shares of BTC represented ten percent (10%) of the outstanding equity in BTC on October 20, 2015. The securities issued by the Company were issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933. There has been no further activity in GAHI Acquisition Corp.


On March 28, 2017 the United States Patent Office issued patents to BTC covering Election Intellectual Property, US Patent #9,608,829, Issued March 28, 2017.  As an equity shareholder in BTC only, GAHC and GES have not used the BTC US Patent. Any use of the patent would require a new negotiation, and new contract with BTC.


The Company has determined that the initial investment of Blockchain Technologies Corp. will be written off.  The Companys Board of Directors cancelled all transactions previously proposed but never acted on concerning GAHI Acquisition. GAHI Acquisition will remain a subsidiary for the exclusive use of any future transactions involving Blockchain Technologies Corporation.


8


The Company, GAHI, and GES do not trade crypto currency, nor participate in Initial Coin Offerings.


On June 15, 2019, GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into True Vote thru a 24 Month Debenture and issue a three year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc.  On December 16, 2019 this Term Sheet was amended to provide for a December 17, 2019, payment by the Company for $ 40,000 to True Vote. As of the date of this filing the Company will pay an additional $ 10,000 and a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc representing Thirty percent (30%) as part of the joint venture between the companies. This transaction is expected to close in the third quarter of 2020.


On November 19, 2019 the Company incorporated a new wholly owned entity in the State of Delaware called Tidewater Energy Group Inc. The Board of Directors appointed John S. Matthews and Jason Old as Board members. The Company is being formed to explore opportunities in the oil, gas, mineral and energy business.


Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the financial condition of the Company and its operating results for the respective periods. The condensed consolidated balance sheet at December 31, 2019 has been derived from the Companys audited consolidated financial statements. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Companys Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020.


Going Concern


The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates the continuation of the Company as a going concern. The Company has generated recurring losses from operations and cash flow deficits from its operations since inception and has had to continually borrow to continue operating. In addition, certain of the Companys debt is in default as of March 31, 2020. These factors raise substantial doubt about the Companys ability to continue as a going concern. The continued operations of the Company are dependent upon its ability to raise additional capital, obtain additional financing and/or acquire or develop a business that generates sufficient positive cash flows from operations.  The Company continues to raise funds from the issuance of additional convertible promissory note. Management is hopeful that with their ability to raise additional funds that the Company should be able to continue as a going concern.


The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue as a going concern.


9


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Principles of Consolidation


The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of GAHI and its wholly-owned and majority owned subsidiaries, GES, GAHI Acquisition Corp and Tidewater Energy Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.


Noncontrolling Interest

 

The Company follows ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (NCIs) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parents ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

 

The net income (loss) attributed to the NCI is separately designated in the accompanying condensed consolidated statements of operations and comprehensive loss.

 

Basic and Diluted Earnings (Loss) Per Share


Earnings per share is calculated in accordance with the ASC 260-10, Earnings Per Share. Basic earnings-per-share is based upon the weighted average number of common shares outstanding. Diluted earnings-per-share is based on the assumption that all dilutive convertible notes, stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.


 

March 31,

 

2020

 

2019

Options

48,000,000

 

48,000,000

Warrants

466,276,590

 

466,276,590

Convertible notes

1,748,036,416

 

1,056,924,578

Total

2,262,313,006

 

1,571,201,168


Management Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates reflected in the consolidated financial statements include, but are not limited to, share-based compensation, and assumptions used in valuing derivative liabilities. Actual results could differ from those estimates.


Cash and Cash Equivalents


The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.  


10


Convertible Debt


Convertible debt is accounted for under FASB ASC 470, Debt Debt with Conversion and Other Options. The Company records a beneficial conversion feature (BCF) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital.  The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.  


Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.  


The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.




Derivative Financial Instruments


The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. 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. The Company uses the Black-Scholes-Merton model to value the derivative instruments. 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.


Revenue Recognition


The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GESs income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.


Share-Based Compensation


The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.


11


Fair Value of Financial Instruments


FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.


Fair Value Measurements


The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:


·

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

·

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

·

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.


Cash, accounts payable and accrued expenses and deferred revenue The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.


Promissory notes payable and convertible promissory notes payable Promissory notes payable and convertible promissory notes payable are recorded at amortized cost.  The carrying amount approximates their fair value.


The Company uses Level 2 inputs for its valuation methodology for the beneficial conversion feature and warrant derivative liabilities as their fair values were determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Companys derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.


The following table presents the Companys assets and liabilities required to be reflected within the fair value hierarchy as of March 31, 2020 and December 31, 2019.


 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

March 31, 2020

Description

 

March 31, 2020

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

645,302

$

-

$

645,302

$

-

 

 

 

 

 

 

 

 

 

Total

$

645,302

$

-

$

645,302

$

-

 

 

 

 

 

 

 

 

 











12


 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

December 31, 2019

Description

 

December 31, 2019

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

742,280

$

-

$

742,280

$

-

 

 

 

 

 

 

 

 

 

Total

$

742,280

$

-

$

742,280

$

-

 

 

 

 

 

 

 

 

 


Income Taxes


The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.


Under ASC 740, a tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The adoption had no effect on the Companys consolidated financial statements.


Recently Issued Accounting Pronouncements


In June 2018, the FASB issued Accounting Standards Update (ASU) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements.


In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements.


In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement.


Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.


13

NOTE 3 - INVESTMENT


On October 20, 2015, the Company paid $125,000 in cash and issued to Nikolaos Spanos, 1,377,398 of its common stock (valued at $68,870) and 1,993,911 warrants to purchase its common shares at the exercise price of $0.10 per common share exercisable for three years (valued at $90,400).  The common shares and warrants are being issued for the purchase of 1,000,000 common shares of Blockchain Technologies Corporation (BTC).  Said common shares represent ten percent (10%) of the outstanding equity in BTC.  This investment is accounted for under the cost method.  During the year ended December 31, 2019, the Company determined that this investment was impaired and took an impairment charge of $284,270.



NOTE 4 ACQUISITION DEPOSITS


On May 10, 2019, the Company entered into an asset purchase agreement with Election Services Solutions, LLC (the APA). Under the APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC. The Company will pay $550,000, of which $506,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this APA. The Company is in the process of closing this transaction in the third quarter of 2020.


On June 15, 2019 GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES will invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of Global Arena Holding Inc., (GAHC). GAHC will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc.

 

TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable.

 

Upon the closing of the agreement, GES will have invested $50,000 into a 24 Month Debenture and will have issued a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc. as part of the joint venture between the companies. The Company on December 17, 2019 paid $ 40,000 to True Vote. The Company will pay an additional $10,000 and a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, in the third quarter of 2020.



NOTE 5 ACCRUED EXPENSES


Accrued expenses at March 31, 2020 and December 31, 2019 consisted of the following:




March 31,


December 31,



2020


2019

Accrued interest

$

1,788,244

$

1,672,391

Accrued compensation


430,167


374,987

Other accrued expenses


36,740


33,789


$

2,255,151

$

2,081,167







14


NOTE 6 - PROMISSORY NOTES PAYABLE


In March 2014, the Company issued two promissory notes for a total of $230,000. The interest rate is the short-term applicable federal rate as determined by the Internal Revenue Service for the calendar month plus 10%. These two promissory notes are due on September 30, 2019, as amended.  The outstanding balance was $230,000 and $230,000 as of March 31, 2020 and December 31, 2019, respectively.



NOTE 7 - CONVERTIBLE PROMISSORY NOTES PAYABLE


Convertible promissory notes payable at March 31, 2020 and December 31, 2019 consist of the following:


 

 

March 31,

 

December 31,

 

 

2020

 

2019

Convertible promissory notes with interest at 10% to 12% per annum, convertible into common shares at a fixed price ranging from $0.001 to $0.25 per share. Maturity dates through January 31, 2021, as amended. ($2,019,000 in default)

$

2,669,000

$

2,519,000

Convertible promissory notes with interest at 12% per annum, convertible into common shares at a price ranging from $0.08 to $0.14 or a 50% to 60% discount from the lowest trade price in the 20-25 trading days prior to conversion (as of March 31, 2020 the conversion price would be $0.0007 to $0.0010 per share).  Maturity dates through December 31, 2020, as amended. ($1,057,924 in default)

 

1,107,924

 

1,132,924

Convertible promissory notes with interest at 8% per annum, convertible into common shares at a fixed price of $0.02 per share. The maturity date was September 30, 2019, as amended.  ($161,000 in default)

 

161,000

 

203,000

Convertible promissory notes with interest at 12% per annum, convertible into common shares of GES. The maturity dates through November 25, 2020, as amended. ($807,000 in default)

 

1,032,000

 

982,000

Total convertible promissory notes payable

 

4,969,924

 

4,836,924

Unamortized debt discount

 

(241,091)

 

(197,296)

Convertible promissory notes payable, net discount

 

4,728,833

 

4,639,628

Less current portion

 

(4,728,833)

 

(4,639,628)

Long-term portion

$

-

$

-

 

 

 

 

 


15


A rollfoward of the convertible promissory notes payable from December 31, 2019 to March 31, 2020 is below:


Convertible promissory notes payable, December 31, 2019

$

4,639,628

Issued for cash


250,000

Repayment for cash


(10,000)

Conversion to common stock


(107,000)

Debt discount related to new convertible promissory notes


(145,481)

Amortization of debt discounts


101,686

Convertible promissory notes payable, March 31, 2020

$

4,728,833



NOTE 8 - DERIVATIVE FINANCIAL INSTRUMENTS


Certain of the Companys convertible promissory notes payable are convertible into shares of the Companys common stock at a percentage of the market price on the date of conversion.  The Company has determined that the variable conversion rate is an embedded derivative instrument. The Company uses the Black-Scholes valuation method to value the derivative instruments at inception and on subsequent valuation dates. Weighted average assumptions used to estimate fair values are as follows:


 

 

March 31,

 

December 31,

 

 

2020

 

2019

Risk-free interest rate

 

0.14%

 

1.59%

Expected life of the options (Years)

 

0.01

 

0.01

Expected volatility

 

135%

 

152%

Expected dividend yield

 

0%

 

0%

 

 

 

 

 

Fair Value

$

645,302

$

742,280

 

 

 

 

 


A rollfoward of the derivative liability from December 31, 2019 to March 31, 2020 is below:


Derivative liabilities, December 31, 2019

$

742,280

Change in fair value of derivative liabilities


(96,978)

Derivative liabilities, March 31, 2020

$

645,302






NOTE 9- STOCKHOLDERS DEFICIT


Series B Preferred Stock


Pursuant to the Companys Certificate of Incorporation, the Company has authorized 2,000,000 shares of $0.001 par value Preferred Stock.  The Company has designated 250,000 of the 2,000,000 shares as Series B Preferred Stock. The Series B Preferred stockholders are entitled to a cumulative stock dividend, up to a maximum of 10% additional common stock upon the conversion after one year.  The Series B Preferred Stock may be converted into common shares, at any time, at the option of the holder.  The conversion price shall be the greater of $0.01 or 90% of the lowest closing price during the five most recent trading days prior to conversion.  The number of common shares to be issued shall be the number of Series B Preferred shares times $10 per shares divided by the conversion price.  


16


During the year ended December 31, 2017, the Company sold 90,000 shares of Series B Preferred Stock for cash proceeds of $900,000. During the year ended December 31, 2018, 30,000 of these preferred shares were converted into 30,743,885 shares of common stock  During the three months ended March 31, 2020, 10,798 of these preferred shares were converted into 36,519,609 shares of common stock.


Common Stock


On April 28, 2016, the stockholders approved an amendment to the Companys articles of incorporation to increase the number of authorized common shares from 100,000,000 to 1,000,000,000. In addition, the stockholders also approved an amendment to the Companys Stock Awards Plan, originally filed June 27, 2011, which will increase the number of shares authorized to be issued under the Plan from 3,000,000 shares to 7,460,000 shares.


On October 11, 2019, the Companys shareholders approved an increase of the Companys authorized shares to Two Billion (2,000,000,000) Common Shares.


During the three months ended March 31, 2020, the Company issued 103,447,553 shares of common stock for convertible notes of $107,000 and accrued interest of $15,200.  


During the three months ended March 31, 2019, the Company issued 10,971 shares of common stock for accrued interest of $6,144.  


Option Activity


A summary of the option activity is presented below:


 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Options

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

48,000,000

 

0.03

 

2.80

 

-

Granted

 

-

 

 

 

 

 

 

Exercised

 

-

 

 

 

 

 

 

Forfeited/Canceled

 

-

 

 

 

 

 

 

Outstanding, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

-

Exercisable, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

-

 

 

 

 

 

 

 

 

 


17


Warrant Activity


A summary of warrant activity is presented below:


 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Warrants

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

596,532,925

 

0.009

 

1.47

 

79,800

Granted

 

91,923,000

 

0.002

 

 

 

 

Exercised

 

-

 

 

 

 

 

 

Forfeited/Canceled

 

(195,833,333)

 

0.002

 

 

 

 

Outstanding, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

Exercisable, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

 

 

 

 

 

 

 

 

 


During the three months ended March 31, 2020, the Company issued a total of 91,923,000 warrants in connection with a new convertible promissory note payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:

·

Expected life of 3.00-3.25 years

·

Volatility of 152%;

·

Dividend yield of 0%;

·

Risk free interest rate of 0.72% - 1.59%



NOTE 10 - COMMITMENTS AND CONTINGENCIES


The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.


On October 10, 2013, GACOM settled a complaint with the National Futures Association for a fine of $50,000 for certain noncompliance with Commodity Futures Trading Commission regulations. The fine has not been paid and is included in accounts payable and accrued expenses at March 31, 2020 and December 31, 2019. The Company is currently attempting to adjudicate and settle this fine.


On December 26, 2017, the Company entered into a settlement agreement with a prior attorney with regards to outstanding legal fees owed. Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $ 25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. The $ 200,000 settlement is in default, and is carried in the accounts payable, however the Company is in the process of settling the outstanding balance. The Company made payments of $10,000 on the owed legal fees in 2020.



NOTE 11 AGREEMENTS


On May 13, 2019, the Company entered into a joint venture agreement with Voting Portals, LLC (VP), a Florida limited liability company. Pursuant to this agreement, the joint venture will be making use of the VP online e-voting web portal solutions and proprietary e-voting software programs to service and fulfill GESs clients online elections and other e-voting events pursuant to the terms of the agreement, as well as any other ventures and relationships agreed


18


to pursuant to the goals of the agreement. The Agreement was amended and as part of this agreement, the Company will be issuing 10,000,000 common shares to VP for services rendered, upon approval of the corporate actions at the 2019 annual meeting. VP will own 100% of the rights to the software, while GES will be responsible for all administrative and other election procedures. The Company is in the process of closing this transaction in the third quarter of 2020.


On May 13, 2019, the Company amended the master services agreement with HCAS Technologies (the MSA), Under the MSA, the Company will be acquiring information technology services and management from HCAS Technologies, as well as retaining Mr. Magdiel Rodriguez to act as Chief Information Officer. Pursuant to this Amended MSA, the Company will issue a total of 30,000,000 warrants to purchase the Companys common shares at a price of $0.005 as consideration for the services of HCAS and Mr. Magdiel. The Company is in the process of closing this transaction in the third quarter of 2020.


On June 19, 2019, GES Inc. signed an engagement letter with Blockchain Valley Ventures (BVV) of Zug Switzerland. Under the terms of the agreement, GES will pay BVV 50,000 Swiss Francs (CHF) and BVV will serve as an advisor in connection with a Voter Registration, Voter Authentication, and Voter Eligibility using a Blockchain Platform primarily covering the following matters:


·

Development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies such as Phoenix Systems AG, Securosys AG and others as well as any subject matter expert to be invited by Global Election Services Inc.

·

Development of a high-level technology solution architecture and its requirements for the blockchain based voting registration platform with inputs from third party blockchain technology.

·

Documentation of the results of a) and b) in order to provide the basis of the technical development of the platform.

·

Development of an implementation recommendation with respect to Voting on the Blockchain Platform.

·

Legal facilitation with respect to outside tax and legal advisors in connection with compliance with local and international regulation.

·

Project Management during the engagement.


This will be delivered as a Working Paper discussing a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation;


BVV is a Crypto Valley, Switzerland based venture capital firm who consists of highly successful entrepreneurs, finance experts, blockchain technology experts and ICO experienced analysts and consultants. The documents created will be used by GES, to create a Minimal Viable Product. This Product, along with GES licensing rights on GES existing Registration and Tabulation Software will be owned by GES.


On June 27, 2019 BVV and GES signed and amended agreement calling for a $25,000 CHF Payment for the development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies, and a $ 25,000 CHF payment upon completion of the engagement. GES made payments of $25,000 CHF payment.


On September 12, 2019, representatives of GES attended a Blockchain workshop in Zurich Switzerland to discuss the specifics of using the Blockchain in the Elections Industry. GES representatives met with a Blockchain Technology Companies who have technology solution architecture and its requirements for the blockchain based on a voting registration platform. Currently this Blockchain Development is still being developed and GES and BVV are working on a Working Paper discussing a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation.


On June 7, 2019, the Companys second subsidiary, GAHI Acquisition Corp. (GAHI) was authorized by the Companys Board of Directors to infuse an initial deposit of $50,000 into the subsidiary for general capital and administrative expenses. GAHI Acquisition will be repurposed in order to explore potential new business ventures in


19

an effort to increase shareholder value. The Company will cause GAHI Acquisition to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. The Company added Mr. Jason N. Old to the GAHI Acquisition Board as a Director.


On November 28, 2019 the Companys Board of Directors authorized the termination of the transaction previously authorized to infuse an initial deposit of $50,000 into GAHI Acquisition for general capital and administrative expenses and have GAHI Acquisition repurposed in order to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. GAHI Acquisition will remain a 100% subsidiary of the Company and will focus on Blockchain related companies for investments and acquisition.



NOTE 12 SUBSEQUENT EVENTS


Subsequent to March 31, 2020, the Company issued:


·

226,526,001 shares of common stock for the conversion of $346,000 of convertible debt; and

·



6


163,365,384 shares of common stock to officers and directors for services rendered.


In August 2020, the Company entered into an advisory agreement for strategic business development, capital sourcing and market development management services.  The agreement is for 18 months but may be canceled within the first 90 days.  Per the terms of the agreement the Company will pay the following compensation:

·

$50,000 retainer payable within 150 days of the date of the agreement;

·

Warrants to purchase 4% of GES (cashless warrants);

·

Warrants to purchase 50,000,000 shares of the Company common stock for $0.002 per shares;

·

Monthly compensation of $10,000 commencing October 1, 2020;

·

1% of net revenue from election services provided to municipal jurisdictions in the United States for 12 months; and

·

2% of all revenue generated from election services provided to municipal jurisdictions in the United States that were introduced by consultant.


Also, in August 2020, the Company entered into a software development agreement that provides for payments totaling $43,000 through September 30, 2020.


20


Item 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements


Statements in this Managements Discussion and Analysis of Financial Condition and Results of Operation, as well as in certain other parts of this Quarterly Report on Form 10-Q (as well as information included in oral statements or other written statements made or to be made by the Company) that look forward in time, are forward-looking statements made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, expectations, predictions, and assumptions and other statements that are other than statements of historical facts. Although The Company believes such forward-looking statements are reasonable, it can give no assurance that any forward-looking statements will prove to be correct.  Such forward-looking statements are subject to, and are qualified by, known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by those statements. These risks, uncertainties and other factors include, but are not limited to the Companys ability to estimate the impact of competition and of industry consolidation and risks, uncertainties and other factors set forth in the Companys filings with the Securities and Exchange Commission, including without limitation to our Annual Report on Form 10-K.


The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-Q.


Critical Accounting Policies


The Companys financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by management's applications of accounting policies. Critical accounting policies for the Company include revenue recognition, valuation of convertible promissory notes and related warrants, stock and stock option compensation, estimates, and derivative financial instruments.


The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned and majority owned subsidiaries, GES, GAHI Acquisition Corp and Tidewater Energy Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.


Revenue Recognition


The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GESs income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.


Convertible Debt


Convertible debt is accounted for under FASB ASC 470, Debt Debt with Conversion and Other Options. The Company records a beneficial conversion feature (BCF) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.


21


Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.  


The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.


Derivative Financial Instruments


The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. 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. The Company uses the Black-Scholes-Merton model to value the derivative instruments. 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.


Share-Based Compensation


The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.


Recent Accounting Pronouncements


In June 2018, the FASB issued Accounting Standards Update (ASU) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements.

 

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Companys consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement.


Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.


22


Trends and Uncertainties


The Company currently has minimal revenues and operations and is investigating potential businesses and companies for acquisition to create and/or acquire a sustainable business. Our ability to acquire or create a sustainable business may be adversely affected by our current financial conditions, availability of capital and/ or loans, general economic conditions which can be cyclical in nature along with prolonged recessionary periods, and other economic and political situations.  


The Company has generated recurring losses and cash flow deficits from its operations since inception and has had to continually borrow to continue operations. These matters raise substantial doubt about the Companys ability to continue as a going concern. The continued operations of the Company are dependent upon its ability to raise additional capital, obtain additional financing and/or generate positive cash flows from operations.  As further described in Liquidity and Capital Resources, management believes that it will be successful in obtaining additional financing, from which the proceeds will be primarily used to execute its new operating plans. The Company plans to use its available cash and new financing to develop and execute its new business plan and hopefully create and maintain a self-sustaining business.  However, the Company can give no assurances that it will be successful in achieving its plans or if financing will be available or, if available, on terms acceptable to the Company, or at all.  Should the Company not be successful in obtaining the necessary financing to fund its operations, and ultimately achieve adequate profitability and cash flows from operations, the Company would need to curtail certain or all of its operating activities.  


There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations. There are no significant elements of income or loss that do not arise from our continuing operations except for the fair value change on derivative financial instruments and settlement on arbitration.  


The rapid advances in computing and telecommunications technology over the past several decades have brought with them increasingly sophisticated methods of delivering administrating elections. Along with these advances, though, have come risks regarding the integrity and privacy of data, and these risks apply to election companies, falling into the general classification of cybersecurity. While it is not possible for anyone to give an absolute guarantee that data will not be compromised, when applicable, the Company shall utilize third-party service providers to secure the Companys financial and personal data; the Company believes that third-party service providers provide reasonable assurance that the financial and personal data that they hold are secure.


Liquidity and Capital Resources


As of March 31, 2020, the Company has an accumulated deficit of $27,413,913 and a working capital deficit of $8,204,982.  Our ability to continue as a going concern depends upon whether we can ultimately attain profitable operations, generate sufficient cash flow to meet our obligations, and obtain additional financing as needed.


For the three months ended March 31, 2020, the Company recorded a net loss of $475,349.  We recorded an amortization of debt discount of $101,686.   We recorded a gain from the change in fair value of derivative liability of $96,978.  We had an increase in accounts payable and accrued expenses of $2183,357 and a increase in deferred revenue of $38,813.  As a result, we had net cash used in operating activities of $248,471 for the three months ended March 31, 2020.


For the three months ended March 31, 2020, we received $250,000 as proceeds from the issuance of convertible promissory notes payable and repaid $10,000 of such convertible notes.  


Management believes that it will be able to continue its operations and further advance its acquisition plans. However, management cannot give assurances that such plans will materialize and be successful in the near term or on terms advantageous to the Company, or at all. Should the Company not be successful in its new business plans or obtain additional financing, the Company would need to curtail certain or all of its operating activities.


23


The Companys continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. Our auditors for the years ended December 31, 2019 and 2018 have included a going concern modification in their auditors reports.  A going concern modification may make it more difficult for us to raise funds when needed. The outcome of this uncertainty cannot presently be determined.


The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve our operating results.


Results of Operations for the Three months Ended March 31, 2020 Compared to the Three months Ended March 31, 2019


Revenues for the three months ended March 31, 2020 were $108,429 compared to $57,354 for the three months ended March 31, 2019, an increase of $51,075.  The majority of our clients hold elections on a three year cycle.  This increase in revenues is due primarily to more elections held during the three month period in 2020.

 

Salaries and benefits totaled $117,713 for the three months ended March 31, 2020 compared to $72,979 for the three months ended March 31, 2019, an increase of $44,734.  This increase was due primarily to employment agreements entered into with our key employees.

 

Professional fees for the three months ended March 31, 2020 totaled $47,492 compared to $66,213 for the three months ended March 31, 2019, a decrease of $18,721.  This decrease is primarily due to a reduction in legal fees during the three months ended March 31, 2020.

 

For the three months ended March 31, 2020, we incurred marketing and advertising expenses of $1,058 compared to the $0 in the three months ended March 31, 2019.  We incurred software development expenses of $65,285 in 2020 compared to $0 in 2019, we incurred printing costs of $48,836 in 2020 compared to $3,055 in 2019, and we incurred general and administrative expenses of $157,158 in 2020 compared to $74,785 in 2018.  These increases are all due to efforts to expand the operations of our business.

 

Total operating expenses for the three months ended March 31, 2020 were $437,542 compared to $217,032 for the three months ended March 31, 2018, an increase of $220,510 principally due to reasons discussed above.



Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Not Applicable



Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures


Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of March 31, 2020.  


We do not have sufficient segregation of duties within accounting functions, which is a basic internal control.  Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible.  However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals.  Based on this evaluation, our chief executive officer and chief financial officer have concluded such controls and procedures to be not effective as of March 31, 2020 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded,


24


processed, summarized and reported, within the time periods specified in the Commission's rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.


Evaluation of Changes in Internal Control over Financial Reporting


Our chief executive officer and chief financial officer have evaluated changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2020.  Based on that evaluation, our chief executive officer and chief financial officer, or those persons performing similar functions, did not identify any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


Important Considerations


The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time.


Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.


25


PART II - OTHER INFORMATION


Item 1.  Legal Proceedings


The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.


On October 10, 2013, GACOM settled a complaint with the National Futures Association for a fine of $50,000 for certain noncompliance with Commodity Futures Trading Commission regulations. The fine has not been paid and is included in accounts payable and accrued expenses at March 31, 2020 and December 31, 2019. The Company is currently attempting to adjudicate and settle this fine. The Company is currently attempting to adjudicate and settle this fine. The Company contacted the NFA and was the debt had been written off. GACOM ceased all activities in 2013.


On December 26, 2017, the Company entered into a settlement agreement with a prior attorney with regards to outstanding legal fees owed. Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. The $200,000 settlement is in default, and is carried in the accounts payable, however the Company is in the process of settling the outstanding balance. The Company made payments of $10,000 on the owed legal fees in 2020.



Item 1A.  Risk Factors


Not Applicable



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


During the three months ended March 31, 2020, the Company issued 103,447,553 shares of common stock for convertible notes of $107,000 and accrued interest of $15,200 and issued 36,519,609 shares of common stock for the conversion of Series B Preferred Stock.  


The above shares were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.



Item 3.  Defaults Upon Senior Securities


Not Applicable



Item 4.  Mine Safety Disclosures


Not Applicable.



Item 5.  Other Information


None.


26


Item 6.  Exhibits


The following is a complete list of exhibits filed as part of the Quarterly Report on Form 10-Q, some of which are incorporated herein by reference from the reports, registration statements and other filings of the issuer with the Securities and Exchange Commission, as referenced below:


Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32* - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS -  XBRL Instance Document

101.SCH - XBRL Taxonomy Extension Schema Document

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101.DEF - XBRL Taxonomy Extension Definition Linkbase Document

101.LAB - XBRL Taxonomy Extension Label Linkbase Document

101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document


*Filed Herewith


27


SIGNATURES

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

 

GLOBAL ARENA HOLDINGS, INC.

    a Nevada corporation

 

 

Date: September 24, 2020

By:

/s/ JOHN MATTHEWS        

 

 

John Matthews

 

 

Chief Executive Officer

Chief Financial Officer



28



EX-31 2 gahic10q1q20exhibit31.htm EXHIBIT 31 Converted by EDGARwiz

302 CERTIFICATION


I, John Matthews, certify that:


   1. I have reviewed this quarterly report on Form 10-Q of Global Arena Holding Inc.;


   2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


   3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


   4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


     a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


     b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


     c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report, our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


     d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and


   5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):


     a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


     b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.


Date: September 24, 2020


/s/John Matthews

John Matthews

Chief Executive Officer

Chief Financial Officer




EX-32 3 gahc10q1q20exhibit32.htm EXHIBIT 32 Converted by EDGARwiz

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Global Arena Holding Inc. (the "Company") on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John Matthews, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


    (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

    (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

/s/John Matthews

John Matthews

Chief Executive Officer

Chief Financial Officer


September 24, 2020




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The condensed consolidated balance sheet at December 31, 2019 has been derived from the Company's audited consolidated financial statements. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company&#x2019;s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission. 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style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr></tbody></table><p style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt;text-align:center">&#160;</p><table border="0" style="border-collapse:collapse;width:496.2pt;margin:auto"><tbody><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value Measurements at</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>As of</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Description</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Using Fair Value Hierarchy</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr></tbody></table></div></div><p style="font:10pt Times New Roman;margin:0">&#160;</p><div><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="border-bottom:1px solid rgb(0, 0, 0)">Income Taxes </span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>The Company accounts for income taxes in accordance with ASC Topic 740, <i>Income Taxes</i>. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. 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The adoption had no effect on the Company&#x2019;s consolidated financial statements.</span></span></span></p></div><p style="font:10pt Times New Roman;margin:0">&#160;</p><div><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="border-bottom:1px solid rgb(0, 0, 0)">Recently Issued Accounting Pronouncements</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="color:rgb(0, 0, 0);font-style:normal;font-weight:400">In June 2018, the FASB issued Accounting Standards Update (&#x201c;ASU&#x201d;) ASU 2018-07,&#160;<i>Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting</i>, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>In October 2016, the FASB issued ASU 2016-16, <i>Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory</i>, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements.</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="color:rgb(0, 0, 0);font-style:normal;font-weight:400">In February 2016, the FASB issued ASU 2016-02,&#160;<i>Leases (Topic 842)</i>. ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December&#160;15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. 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Diluted earnings-per-share is based on the assumption that all dilutive convertible notes, stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.</span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><table border="0" style="border-collapse:collapse;width:306.9pt;margin:auto"><tbody><tr style="height:1pt"><td style="width:92.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="3" style="width:214.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>March 31,</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:92.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:100.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>2020</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>2019</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" 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Roman,Times,serif"><span>48,000,000 </span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Warrants</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>466,276,590</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>466,276,590</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Convertible notes</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;border-bottom:0.5pt solid rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>1,748,036,416</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;border-bottom:0.5pt solid rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>1,056,924,578</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;border-bottom:3px double rgb(0, 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style="width:92.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="3" style="width:214.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>March 31,</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:92.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:100.7pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>2020</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>2019</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Options</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>48,000,000 </span></span></span></p></td><td style="width:13.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>48,000,000 </span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Warrants</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>466,276,590</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>466,276,590</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:92.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Convertible notes</span></span></span></p></td><td style="width:100.7pt;white-space:nowrap;border-bottom:0.5pt solid rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>1,748,036,416</span></span></span></p></td><td style="width:13.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:100.1pt;white-space:nowrap;border-bottom:0.5pt solid rgb(0, 0, 0);background-color:rgb(204, 238, 255)" 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Significant estimates reflected in the consolidated financial statements include, but are not limited to, share-based compensation, and assumptions used in valuing derivative liabilities. 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Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New 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style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr></tbody></table><p style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt;text-align:center">&#160;</p><table border="0" style="border-collapse:collapse;width:496.2pt;margin:auto"><tbody><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" 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Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>As of</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Description</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Using Fair Value Hierarchy</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr></tbody></table></div></div> <div><table border="0" style="border-collapse:collapse;width:496.2pt;margin:auto"><tbody><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value Measurements at</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>As of</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>March 31, 2020</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Description</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>March 31, 2020</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Using Fair Value Hierarchy</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>645,302</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr></tbody></table><p style="font:10pt Times New Roman;margin-top:0pt;margin-bottom:10pt;text-align:center">&#160;</p><table border="0" style="border-collapse:collapse;width:496.2pt;margin:auto"><tbody><tr style="height:1pt"><td style="width:141pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Fair Value Measurements 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Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Description</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>December 31, 2019</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td colspan="5" style="width:242.6pt;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Using Fair Value Hierarchy</span></span></span></p></td></tr><tr style="height:1pt"><td style="width:141pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 1</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 2</span></span></span></p></td><td style="width:16.3pt" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;border-bottom:0.5pt solid #000000" valign="top"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Level 3</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Beneficial conversion feature</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="width:141pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:80pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td><td style="width:70pt;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#160;</span></span></span></p></td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="width:141pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Total</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:80pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280 </span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>742,280</span></span></span></p></td><td style="width:16.3pt;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>$</span></span></span></p></td><td style="width:70pt;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>&#x2014;</span></span></span></p></td></tr></tbody></table></div> 645302 0 645302 0 742280 0 742280 0 <div><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="border-bottom:1px solid rgb(0, 0, 0)">Income Taxes </span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>The Company accounts for income taxes in accordance with ASC Topic 740, <i>Income Taxes</i>. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. 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The adoption had no effect on the Company&#x2019;s consolidated financial statements.</span></span></span></p></div> <div><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="border-bottom:1px solid rgb(0, 0, 0)">Recently Issued Accounting Pronouncements</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="color:rgb(0, 0, 0);font-style:normal;font-weight:400">In June 2018, the FASB issued Accounting Standards Update (&#x201c;ASU&#x201d;) ASU 2018-07,&#160;<i>Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting</i>, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>In October 2016, the FASB issued ASU 2016-16, <i>Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory</i>, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements.</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span style="color:rgb(0, 0, 0);font-style:normal;font-weight:400">In February 2016, the FASB issued ASU 2016-02,&#160;<i>Leases (Topic 842)</i>. ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December&#160;15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company&#x2019;s consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement</span></span></span></p><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span>Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. 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The common shares and warrants are being issued for the purchase of 1,000,000 common shares of Blockchain Technologies Corporation (&#x201c;BTC&#x201d;). Said common shares represent ten percent (10%) of the outstanding equity in BTC. This investment is accounted for under the cost method. 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style="font-family:Times New Roman,Times,serif"><span><span>4,728,833</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>4,639,628</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Less current portion</span></span></span></span></p></td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(4,728,833</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">)</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(4,639,628</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">)</td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Long-term portion</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">$</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>&#x2014;</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">$</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>&#x2014;</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr></tbody></table><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt;font-family:Times New Roman, Times, serif;font-style:normal;font-weight:400;color:rgb(0, 0, 0)">A rollfoward of the convertible promissory notes payable from December 31, 2019 to March 31, 2020 is below:</span></p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt">&#160;</p><table border="0" style="border-collapse:collapse;width:415.7pt;margin:auto"><tbody><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Convertible promissory notes payable, December 31, 2019</span></span></span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:67.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>4,639,628 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style="width:331.6pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Repayment for cash</span></span></span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:67.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>(10,000)</span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Conversion to common stock</span></span></span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:67.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>(107,000)</span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Debt discount related to new convertible promissory 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serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>982,000</span></span></span></span></p></td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Total convertible promissory notes payable</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times 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style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Unamortized debt discount</span></span></span></span></p></td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(241,091</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">)</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(197,296</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">)</td></tr><tr style="height:1pt;background-color:rgb(204, 238, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Convertible promissory notes payable, net discount</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>4,728,833</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>4,639,628</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr><tr style="height:1pt;background-color:rgb(255, 255, 255)"><td style="font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>Less current portion</span></span></span></span></p></td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(4,728,833</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">)</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td colspan="1" style="font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(255, 255, 255)" valign="bottom">(4,639,628</td><td style="background-color:rgb(255, 255, 255);font-size:10pt;font-family:Times New Roman, Times, 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valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>&#x2014;</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">$</td><td colspan="1" style="border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span>&#x2014;</span></span></span></span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td></tr></tbody></table> 0.10 0.10 0.12 0.12 0.12 0.12 0.08 0.08 0.12 0.12 0.001 0.001 0.25 0.25 0.02 0.02 2019000 2019000 1057924 1057924 161000 161000 807000 807000 2669000 2519000 1107924 1132924 161000 203000 1032000 982000 4969924 4836924 0.08 0.14 0.08 0.14 0.50 0.60 0.0007 0.0010 4728833 4639628 0 0 <table border="0" style="border-collapse:collapse;width:415.7pt;margin:auto"><tbody><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Convertible promissory notes payable, December 31, 2019</span></span></span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:67.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>4,639,628 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Issued for cash </span></span></span></span></span></p></td><td style="width:16.3pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:67.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>250,000 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:331.6pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Repayment for cash</span></span></span></span></span></p></td><td 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255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">December 31,</span></p></td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td></tr><tr style="background-color:rgb(255, 255, 255)"><td style="padding:0in 7px;height:20px;font-family:Times New Roman, Times, serif;text-align:left;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td colspan="1" style="border-bottom:1px solid black;padding:0in 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style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">2019</span></p></td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td></tr><tr style="background-color:rgb(204, 238, 255)"><td style="padding:0in 7px;height:20px;font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;background-color:rgb(204, 238, 255);width:78%;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">Accrued interest</span></p></td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">$</td><td colspan="1" style="padding:0in 7px;height:20px;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;background-color:rgb(204, 238, 255);width:8%;white-space:nowrap" valign="bottom">1,788,244</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right;vertical-align:bottom;width:1%">&#160;</td><td style="background-color:rgb(204, 238, 255);font-size:10pt;font-family:Times New Roman, Times, serif;text-align:left;vertical-align:bottom;width:1%">$</td><td colspan="1" style="padding:0in 7px;height:20px;font-size:10pt;font-family:Times New Roman, Times, 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255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">March 31,</span></p></td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td colspan="1" style="padding:0in 7px;height:20px;font-family:Times New Roman, Times, serif;text-align:center;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">December 31,</span></p></td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td></tr><tr style="background-color:rgb(255, 255, 255)"><td style="padding:0in 7px;height:20px;font-family:Times New Roman, Times, serif;text-align:left;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td colspan="1" style="border-bottom:1px solid black;padding:0in 7px;height:20px;font-family:Times New Roman, Times, serif;text-align:center;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">2020</span></p></td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td style="background-color:rgb(255, 255, 255);font-family:Times New Roman, Times, serif;text-align:center;width:1%">&#160;</td><td colspan="1" style="border-bottom:1px solid black;padding:0in 7px;height:20px;font-family:Times New Roman, Times, serif;text-align:center;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New 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style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>2020</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New 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Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0.01 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Expected volatility</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New 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Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td></tr><tr style="height:13.5pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Fair Value</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New 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Roman,Times,serif"><span><span><span>742,280 </span></span></span></span></span></p></td></tr></tbody></table><p style="font:10pt Times New Roman;margin:0">&#160;</p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt"><span style="font-size:10pt;font-family:Times New Roman, Times, serif">A rollfoward of the derivative liability from December 31, 2019 to March 31, 2020 is below:</span></p><p style="font-size:10pt;font-family:Times New Roman, Times, serif;margin-top:0pt;margin-bottom:0pt">&#160;</p><table border="0" style="border-collapse:collapse;width:349.4pt;margin:auto"><tbody><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">Derivative liabilities, December 31, 2019</p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>742,280 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Change in fair value of derivative liabilities</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>(96,978)</span></span></span></span></span></p></td></tr><tr style="height:13.5pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">Derivative liabilities, March 31, 2020</p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>645,302 </span></span></span></span></span></p></td></tr></tbody></table></div> <table border="0" style="border-collapse:collapse;width:455.4pt;margin:auto"><tbody><tr style="height:12.75pt"><td style="width:258.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center">March 31,</p></td><td style="width:20.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>December 31,</span></span></span></span></span></p></td></tr><tr style="height:12.75pt"><td style="width:258.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>2020</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;border-bottom:0.5pt solid #000000" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:center"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>2019</span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Risk-free interest rate</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0.14%</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>1.59%</span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Expected life of the options (Years)</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0.01</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0.01 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Expected volatility</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>135%</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>152%</span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Expected dividend yield</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0%</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>0%</span></span></span></span></span></p></td></tr><tr style="height:8.25pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>&#160;</span></span></span></span></span></p></td></tr><tr style="height:13.5pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Fair Value</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;border-bottom:3px double rgb(0, 0, 0);background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>645,302 </span></span></span></span></span></p></td><td style="width:20.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:85.2pt;white-space:nowrap;border-bottom:3px double rgb(0, 0, 0);background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>742,280 </span></span></span></span></span></p></td></tr></tbody></table> 0.14 1.59 135 152 0 0 P0Y3D P0Y3D P3Y P3Y3M 645302 742280 <table border="0" style="border-collapse:collapse;width:349.4pt;margin:auto"><tbody><tr style="height:12.75pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">Derivative liabilities, December 31, 2019</p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>742,280 </span></span></span></span></span></p></td></tr><tr style="height:12.75pt;background-color:rgb(255, 255, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>Change in fair value of derivative liabilities</span></span></span></span></span></p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0">&#160;</p></td><td style="width:68.8pt;white-space:nowrap;background-color:rgb(255, 255, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>(96,978)</span></span></span></span></span></p></td></tr><tr style="height:13.5pt;background-color:rgb(204, 238, 255)"><td style="width:258.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">Derivative liabilities, March 31, 2020</p></td><td style="width:21.8pt;white-space:nowrap;background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>$</span></span></span></span></span></p></td><td style="width:68.8pt;white-space:nowrap;border-top:0.5pt solid rgb(0, 0, 0);border-bottom:3px double rgb(0, 0, 0);background-color:rgb(204, 238, 255)" valign="bottom"><p style="font:10pt Times New Roman;margin:0;text-align:right"><span style="font-size:10pt"><span style="font-family:Times New Roman,Times,serif"><span><span><span>645,302 </span></span></span></span></span></p></td></tr></tbody></table> 742280 645302 -96978 <div><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:12pt;font-family:Times New Roman, serif"><strong><span style="font-size:10pt">NOTE 9- STOCKHOLDERS&#x2019; DEFICIT</span></strong></span></p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-size:12pt;font-family:Times New Roman, serif"><span style="text-decoration:underline"><span style="font-size:10pt">Series B Preferred Stock</span></span></span></p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p><p style="margin-top:0pt;margin-bottom:0pt;text-align:justify;font-size:10pt;font-family:Times New Roman, Times, serif"><span style="font-family:Times New Roman, serif;font-size:10pt">Pursuant to the Company&#x2019;s Certificate of Incorporation, the Company has authorized 2,000,000 shares of $0.001 par value Preferred Stock. 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style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:92px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:27px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:79px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td></tr><tr 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7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:94px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:26px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:78px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:26px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" 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style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:26px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:78px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">Average</span></p></td><td style="width:26px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:78px;padding:0cm 7px 0cm 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style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:75px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:27px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:64px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:27px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p 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7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:51px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:75px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:27px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:64px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" 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style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:79px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td></tr><tr><td style="width:181px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:51px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:75px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:27px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:64px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:center;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:center"><span style="font-family:Times New Roman, serif;font-size:10pt;color:black">Average</span></p></td><td style="width:27px;padding:0cm 7px 0cm 7px;height:17px;background-color:white;white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman, Times, serif">&#160;</p></td><td style="width:92px;padding:0cm 7px 0cm 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Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:92px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:27px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:79px;padding:0cm 7px;height:17px;background-color:rgb(255, 255, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td></tr><tr style="background-color:rgb(204, 238, 255)"><td style="width:181px;padding:0cm 7px;height:17px;background-color:rgb(204, 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style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:64px;padding:0cm 7px;height:17px;background-color:rgb(204, 238, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:27px;padding:0cm 7px;height:17px;background-color:rgb(204, 238, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:92px;padding:0cm 7px;height:17px;background-color:rgb(204, 238, 255);white-space:nowrap" valign="bottom"><p style="margin-top:0pt;margin-bottom:0pt;text-align:right;font-size:10pt;font-family:Times New Roman, Times, serif;text-align:right">&#160;</p></td><td style="width:27px;padding:0cm 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Investment
3 Months Ended
Mar. 31, 2020
Investments, All Other Investments [Abstract]  
INVESTMENT

NOTE 3 - INVESTMENT

 

On October 20, 2015, the Company paid $125,000 in cash and issued to Nikolaos Spanos, 1,377,398 of its common stock (valued at $68,870) and 1,993,911 warrants to purchase its common shares at the exercise price of $0.10 per common share exercisable for three years (valued at $90,400). The common shares and warrants are being issued for the purchase of 1,000,000 common shares of Blockchain Technologies Corporation (“BTC”). Said common shares represent ten percent (10%) of the outstanding equity in BTC. This investment is accounted for under the cost method. During the year ended December 31, 2019, the Company determined that this investment was impaired and took an impairment charge of $284,270.

XML 11 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Summary Of Significant Accounting Policies
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of GAHI and its wholly-owned and majority owned subsidiaries, GES, GAHI Acquisition Corp and Tidewater Energy Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

Noncontrolling Interest

 

The Company follows ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

The net income (loss) attributed to the NCI is separately designated in the accompanying condensed consolidated statements of operations and comprehensive loss.

 

Basic and Diluted Earnings (Loss) Per Share

 

Earnings per share is calculated in accordance with the ASC 260-10, Earnings Per Share. Basic earnings-per-share is based upon the weighted average number of common shares outstanding. Diluted earnings-per-share is based on the assumption that all dilutive convertible notes, stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

 

 

March 31,

 

2020

 

2019

Options

48,000,000

 

48,000,000

Warrants

466,276,590

 

466,276,590

Convertible notes

1,748,036,416

 

1,056,924,578

Total

2,262,313,006

 

1,571,201,168

 

Management Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates reflected in the consolidated financial statements include, but are not limited to, share-based compensation, and assumptions used in valuing derivative liabilities. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.

 

Convertible Debt

 

Convertible debt is accounted for under FASB ASC 470, Debt – Debt with Conversion and Other Options. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital.  The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.  

 

Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense. 

 

The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.

 

Derivative Financial Instruments

 

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. 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. The Company uses the Black-Scholes-Merton model to value the derivative instruments. 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.

 

Revenue Recognition

 

The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GES’s income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.

 

Share-Based Compensation

 

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

 

Fair Value of Financial Instruments

 

FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

 

Fair Value Measurements

 

The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:

 

 

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

 

 

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Cash, accounts payable and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.

 

Promissory notes payable and convertible promissory notes payable – Promissory notes payable and convertible promissory notes payable are recorded at amortized cost.  The carrying amount approximates their fair value.

 

The Company uses Level 2 inputs for its valuation methodology for the beneficial conversion feature and warrant derivative liabilities as their fair values were determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.

 

The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of March 31, 2020 and December 31, 2019

 

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

March 31, 2020

Description

 

March 31, 2020

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

Total

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

December 31, 2019

Description

 

December 31, 2019

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

742,280

$

$

742,280

$

 

 

 

 

 

 

 

 

 

Total

$

742,280

$

$

742,280

$

 

Income Taxes

 

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.

 

Recently Issued Accounting Pronouncements

 

In June 2018, the FASB issued Accounting Standards Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements

 

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement

 

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

XML 12 R7.htm IDEA: XBRL DOCUMENT v3.20.2
Organization
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION

NOTE 1 - ORGANIZATION

 

Organization and Business

 

On February 25, 2015, Global Election Services, Inc. (GES) formed on February 25, 2015, provides comprehensive technology-enabled paper absentee/mail ballot and internet election services to organizations such as craft and trade organizations, labor unions, political parties, co-operatives and housing organizations, associations and professional societies, universities, and political organizations. GES has developed proprietary election software for a data storage and retrieval registration system to determine voter eligibility and prevent duplicate votes with In-Person digital signature capture, as well as proprietary election software for scanning/tabulation utilizing advanced OMR/OCR/Barcode imaging software featuring de-skewing, de-speckling and image correction. This system provides three types of audit capabilities. The hardware includes high speed optical scanners that are hard lined to a computer with all Wi-Fi disabled so the entire tabulation process occurs offline, eliminating the opportunity for hacking.  GES is also working with multiple vendors and has made investments in company’s who are developing Blockchain Technology for a data storage and retrieval registration system; tabulation of paper Absentee/Mail Ballots; and internet voting.

 

The Company has also signed a letter of Intent to acquire the assets of Election Services Solutions including all clients, contracts and employment contracts. This asset purchase is currently pending to close in the third quarter 2020.

 

On May 20th, 2015 the Company incorporated a new wholly owned entity in the State of Delaware called “GAHI Acquisition Corp.” This entity was incorporated at the time to be the merger subsidiary for the acquisition of Blockchain Technologies Corp. (BTC) and other software system development.

 

On May 20, 2015 the Company entered into an agreement and plan of merger with BTC. Under this agreement, BTC would have merged with GAHI Acquisition, and GAHI Acquisition, would have been the surviving corporation. As consideration for the merger, the Company was to reserve a number of shares equal to 1/3 the total issued and outstanding of the Company to be issued to BTC shareholders at closing. On October 20, 2015, the parties agreed to extend the closing date of the merger to December 15, 2015. This agreement expired on December 15, 2015.

 

Concurrently, on October 20, 2015, the Company paid $125,000 in cash to BTC and issued to Nikolaos Spanos 1,377,398 of its common shares and 1,993,911 warrants to purchase its common shares at the exercise price of $.10 per common share with an exercise period of three years. The warrants have expired. The common shares and warrants were issued for the purchase of 1,000,000 common shares of BTC. Said common shares of BTC represented ten percent (10%) of the outstanding equity in BTC on October 20, 2015. The securities issued by the Company were issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933. There has been no further activity in GAHI Acquisition Corp.

 

On March 28, 2017 the United States Patent Office issued patents to BTC covering Election Intellectual Property, US Patent #9,608,829, Issued March 28, 2017.  As an equity shareholder in BTC only, GAHC and GES have not used the BTC US Patent. Any use of the patent would require a new negotiation, and new contract with BTC.

 

The Company has determined that the initial investment of Blockchain Technologies Corp. will be written off.  The Company’s Board of Directors cancelled all transactions previously proposed but never acted on concerning GAHI Acquisition. GAHI Acquisition will remain a subsidiary for the exclusive use of any future transactions involving Blockchain Technologies Corporation.

 

The Company, GAHI, and GES do not trade crypto currency, nor participate in Initial Coin Offerings.

 

On June 15, 2019, GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into True Vote thru a 24 Month Debenture and issue a three year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc.  On December 16, 2019 this Term Sheet was amended to provide for a December 17, 2019, payment by the Company for $ 40,000 to True Vote. As of the date of this filing the Company will pay an additional $ 10,000 and a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc representing Thirty percent (30%) as part of the joint venture between the companies. This transaction is expected to close in the third quarter of 2020.

 

On November 19, 2019 the Company incorporated a new wholly owned entity in the State of Delaware called “Tidewater Energy Group Inc”. The Board of Directors appointed John S. Matthews and Jason Old as Board members. The Company is being formed to explore opportunities in the oil, gas, mineral and energy business.

 

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission.  The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the financial condition of the Company and its operating results for the respective periods. The condensed consolidated balance sheet at December 31, 2019 has been derived from the Company's audited consolidated financial statements. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates the continuation of the Company as a going concern. The Company has generated recurring losses from operations and cash flow deficits from its operations since inception and has had to continually borrow to continue operating. In addition, certain of the Company’s debt is in default as of March 31, 2020. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The continued operations of the Company are dependent upon its ability to raise additional capital, obtain additional financing and/or acquire or develop a business that generates sufficient positive cash flows from operations.  The Company continues to raise funds from the issuance of additional convertible promissory note. Management is hopeful that with their ability to raise additional funds that the Company should be able to continue as a going concern.

 

The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue as a going concern.

 

XML 13 R6.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
OPERATING ACTIVITIES:    
Net income (loss) $ (475,349) $ (450,552)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Amortization of debt discount 101,686 178,175
Change in fair value of derivative liability (96,978) 28,692
Change in assets and liabilities:    
Deferred revenue 38,813 11,000
Accounts payable (5,827) 14,000
Accrued expenses 189,184 81,994
Net cash used in operating activities (248,471) (136,691)
FINANCING ACTIVITIES:    
Proceeds from convertible promissory notes payable 250,000 122,500
Repayment of convertible promissory notes payable (10,000) (22,500)
Net cash used in financing activities 240,000 100,000
NET DECREASE IN CASH AND CASH EQUIVALENTS (8,471) (36,691)
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE 17,502 43,574
CASH AND CASH EQUIVALENTS, ENDING BALANCE 9,031 6,883
CASH PAID FOR:    
Interest 10,100  
Income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Allocated value of warrants and beneficial conversion features related to debt 145,481 47,003
Debt converted to common stock $ 122,000 $ 6,144
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)
Series B Preferred Stock
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Total
Balance preferred stock, shares at Dec. 31, 2018 60,000        
Balance common stock, shares at Dec. 31, 2018   934,568,736      
Balance, value at Dec. 31, 2018 $ 60 $ 934,569 $ 18,028,413 $ (25,021,933) $ (6,058,891)
Allocated value of warrants and beneficial conversion feature related to issuance of convertible debt     43,220   43,220
Issuance of common stock for convertible promissory notes and accrued interest, shares   10,971,221      
Issuance of common stock for convertible promissory notes and accrued interest, value   $ 10,971 (4,827)   6,144
Net loss       (450,552) (450,552)
Balance preferred stock , shares at Mar. 31, 2019 60,000        
Balance common stock, shares at Mar. 31, 2019   945,539,957      
Balance, value at Mar. 31, 2019 $ 60 $ 945,540 18,066,806 (25,472,485) $ (6,460,079)
Balance preferred stock, shares at Dec. 31, 2019 60,000        
Balance common stock, shares at Dec. 31, 2019   985,359,957     985,539,957
Balance, value at Dec. 31, 2019 $ 60 $ 985,540 18,524,842 (26,961,606) $ (7,451,164)
Issuance of common stock for convertible debt and accrued interest, shares   103,447,553      
Issuance of common stock for convertible debt and accrued interest, value   $ 103,448 18,752   122,200
Allocated value of warrants and beneficial conversion feature related to issuance of convertible debt     145,481   145,481
Issuance of common stock for Series B Preferred Stock , shares (10,978) 36,519,609      
Issuance of common stock for Series B Preferred Stock, value $ (11) $ 36,519 (36,508)    
Net loss       (452,307) $ (452,307)
Balance preferred stock , shares at Mar. 31, 2020 49,202        
Balance common stock, shares at Mar. 31, 2020   1,125,327,119     1,125,507,119
Balance, value at Mar. 31, 2020 $ 49 $ 1,125,507 $ 18,652,567 $ (27,413,913) $ (7,635,790)
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenues:    
Services $ 108,429 $ 57,354
Operating expenses:    
Salaries and benefits 117,713 72,979
Marketing and advertising 1,058  
Software development 65,285  
Professional fees 47,492 66,213
General and administrative 157,158 74,785
Printing 48,836 3,055
Total operating expenses 437,542 217,032
Loss from operations (329,113) (159,678)
Other expenses:    
Interest expense and financing costs (243,214) (262,182)
Change in fair value of derivative liability 96,978 (28,692)
Total other expenses (146,236) (290,874)
Income (loss) before provision for taxes (475,349) (450,552)
Provision for income taxes 0 0
Net Loss (475,349) (450,552)
Net loss attributed to noncontrolling interest (23,042)  
Net loss attributed to Global Arena Holdings, Inc. $ (452,307) $ (450,552)
Weighted average shares outstanding - basic and diluted (in shares) 1,025,996,664 937,006,785
Earnings (loss) per share - basic $ (0.00) $ (0.00)
Earnings (loss) per share - diluted $ (0.00) $ (0.00)
XML 16 R44.htm IDEA: XBRL DOCUMENT v3.20.2
Subsequent Events (Narrative) (Details) - USD ($)
1 Months Ended 6 Months Ended
Aug. 31, 2020
Sep. 24, 2020
Mar. 31, 2020
Dec. 31, 2019
Subsequent Event [Line Items]        
Common stock, par value     $ 0.001 $ 0.001
Subsequent Event | Advisory agreement        
Subsequent Event [Line Items]        
Retainer payable within 150 days $ 50,000      
Percentage of cashless warrants purchase 4.00%      
Warrants to purchase number of common stock 50,000,000      
Common stock, par value $ 0.002      
Monthly compensation $ 10,000      
Percentage of net revenue from election services provided to municipal jurisdictions 1.00%      
Percentage of all revenue from election services provided to municipal jurisdictions 2.00%      
Subsequent Event | Software development agreement        
Subsequent Event [Line Items]        
Payment for software development agreement $ 43,000      
Subsequent Event | Officers and directors        
Subsequent Event [Line Items]        
Number of common stock issued for services rendered   163,365,384    
Subsequent Event | Convertible debt        
Subsequent Event [Line Items]        
Number of common stock issued for conversion of debt   226,526,001    
Convertible debt   $ 346,000    
XML 17 R43.htm IDEA: XBRL DOCUMENT v3.20.2
Agreements (Narrative) (Details)
1 Months Ended
May 13, 2019
$ / shares
shares
Jun. 27, 2019
CHF (SFr)
Jun. 19, 2019
CHF (SFr)
Mar. 31, 2020
$ / shares
Dec. 31, 2019
$ / shares
Nov. 28, 2019
USD ($)
Jun. 07, 2019
USD ($)
Agreements [Line Items]              
Common stock, par value | $ / shares       $ 0.001 $ 0.001    
Joint Venture Agreement with Voting Portals, LLC              
Agreements [Line Items]              
Number of common shares issuable for services rendered as part of agreement | shares 10,000,000            
Percentage of right to software owned 100.00%            
Master Services Agreement with HCAS Technologies              
Agreements [Line Items]              
Warrants to purchase number of common stock | shares 30,000,000            
Common stock, par value | $ / shares $ 0.005            
Engagement Letter with Blockchain Valley Ventures | Global Election Services, Inc              
Agreements [Line Items]              
Payment for advisor     SFr 50,000        
Payment for development and facilitation of extended workshop   SFr 25,000          
Payment upon completion of engagement   SFr 25,000          
Gahi Acquisition Corp              
Agreements [Line Items]              
Authorized to infuse initial deposit | $             $ 50,000
Termination of transaction previously authorized to infuse initial deposit | $           $ 50,000  
Gahi Acquisition Corp              
Agreements [Line Items]              
Ownership percentage by parent           100.00%  
XML 18 R42.htm IDEA: XBRL DOCUMENT v3.20.2
Commitments And Contingencies (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Feb. 05, 2018
Jan. 05, 2018
Dec. 26, 2017
Oct. 10, 2013
Mar. 31, 2020
Dec. 31, 2018
Noncompliance - Commodity Futures Trading Commission Regulations            
Loss Contingencies [Line Items]            
Damages sought value       $ 50,000    
Settlement agreement            
Loss Contingencies [Line Items]            
Damages paid $ 25,000 $ 25,000       $ 200,000
Settlement agreement terms     Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $ 25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. The $ 200,000 settlement is in default, and is carried in the accounts payable, however the Company is in the process of settling the outstanding balance.      
Owed legal fees         $ 10,000  
Settlement agreement | Accounts Payable            
Loss Contingencies [Line Items]            
Amount settlement in default and carried in accounts payable         $ 200,000  
XML 19 R41.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Warrant Activity) (Narrative) (Details) - Warrant
3 Months Ended
Mar. 31, 2020
shares
Fair value assumptions - Warrant:  
Warrants issued 91,923,000
Fair value assumption model used Black-Scholes option pricing model
Volatility rate 152.00%
Dividend yield 0.00%
Risk free interest rate, minimum 0.72%
Risk free interest rate, maximum 1.59%
Maximum  
Fair value assumptions - Warrant:  
Expected life 3 years 3 months
Minimum  
Fair value assumptions - Warrant:  
Expected life 3 years
XML 20 R40.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Common Stock) (Narrative) (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Oct. 11, 2019
Apr. 28, 2016
Apr. 27, 2016
Common stock, shares authorized 2,000,000,000   2,000,000,000      
Common Stock            
Common stock, shares authorized       2,000,000,000 1,000,000,000 100,000,000
Debt Conversion, Converted Instrument, Shares Issued 103,447,553          
Debt Conversion, Original Debt, Amount $ 107,000          
Accrued Interest Portion Of Debt Converted Into Common Stock $ 15,200 $ 6,144        
Shares issued   10,971        
Common Stock | Stock Awards Plan            
Shares authorized to be issued under stock award plan         7,460,000 3,000,000
XML 21 R3.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Preferred stock, shares authorized 2,000,000 2,000,000
Preferred stock, par value per share $ 0.001 $ 0.001
Common stock, shares authorized 2,000,000,000 2,000,000,000
Common Stock, Par or Stated Value Per Share $ 0.001 $ 0.001
Common stock, shares issued 1,125,507,119 985,539,957
Common stock, shares outstanding 1,125,507,119 985,539,957
Convertible promissory notes payable, net of debt discount $ 241,091 $ 197,296
Series B Preferred Stock [Member]    
Preferred stock, shares authorized 250,000 250,000
Preferred stock, par value per share $ 0.001 $ 0.001
Preferred stock, shares issued 49,202 60,000
Preferred stock, shares outstanding 49,202 60,000
XML 22 R39.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Series B Preferred Stock) (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Preferred stock, shares authorized 2,000,000     2,000,000  
Preferred stock, par value per share $ 0.001     $ 0.001  
Common Stock          
Stock Issued During Period, Shares, New Issues   10,971      
Shares issued upon conversion of preferred stock 36,519,609       30,743,885
Series B Preferred Stock          
Preferred stock, shares authorized 250,000     250,000  
Preferred stock, par value per share $ 0.001     $ 0.001  
Preferred stock dividend payment terms The Series B Preferred stockholders are entitled to a cumulative stock dividend, up to a maximum of 10% additional common stock upon the conversion after one year. The Series B Preferred Stock may be converted into common shares, at any time, at the option of the holder. The conversion price shall be the greater of $0.01 or 90% of the lowest closing price during the five most recent trading days prior to conversion. The number of common shares to be issued shall be the number of Series B Preferred shares times $10 per shares divided by the conversion price.        
Preferred stock dividend restrictions up to a maximum of 10%        
Preferred stock conversion terms The Series B Preferred Stock may be converted into common shares, at any time, at the option of the holder.        
Stock Issued During Period, Shares, New Issues     90,000    
Proceeds from sale of stock     $ 900,000    
Shares issued upon conversion of preferred stock 10,798       30,000
XML 23 R38.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Summary Of Warrant Activity) (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Weighted Average Remaining Contractual Life (in years)    
Exercisable 2 years 6 months 18 days  
Warrant    
Number of Warrants    
Outstanding 596,532,925  
Granted 91,923,000  
Exercised 0  
Forfeited/Canceled (195,833,333)  
Outstanding 492,622,592 596,532,925
Exercisable 492,622,592  
Weighted Average Exercise Price    
Outstanding $ 0.009  
Granted 0.002  
Forfeited/Canceled 0.002  
Outstanding 0.011 $ 0.009
Exercisable $ 0.011  
Weighted Average Remaining Contractual Life (in years)    
Outstanding 2 years 29 days 1 year 5 months 19 days
Exercisable 2 years 29 days  
Aggregate Intrinsic Value    
Outstanding, December 31, 2019 $ 79,800  
Outstanding, March 31, 2020 12,950 $ 79,800
Exercisable, March 31, 2020 $ 12,950  
XML 24 R37.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Summary Of Stock Option Activity) (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Number of Options    
Outstanding 48,000,000  
Granted 0  
Exercised 0  
Forfeited/Canceled 0  
Outstanding 48,000,000 48,000,000
Exercisable 48,000,000  
Weighted Average Exercise Price    
Outstanding $ 0.03  
Outstanding 0.03 $ 0.03
Excercisable $ 0.03  
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Remaining Contractual Life [Abstract]    
Outstanding 2 years 6 months 18 days 2 years 9 months 18 days
Exercisable 2 years 6 months 18 days  
Share Based Compensation Arrangement By Share Based Payment Award Options Aggregate Intrinsic Value [Abstract]    
Outstanding $ 0  
Outstanding 0 $ 0
Excercisable $ 0  
XML 25 R36.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Financial Instruments (Schedule Of Changes In Fair Value Of Financial Derivatives) (Details) - Derivative Financial Instruments, Liabilities [Member]
3 Months Ended
Mar. 31, 2020
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liabilities, December 31, 2019 $ 742,280
Change in fair value of derivative liabilities (96,978)
Derivative liabilities, March 31, 2020 $ 645,302
XML 26 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Financial Instruments (Valuation Techniques Used In Fair Value Of Derivative Liability) (Details) - Derivative liabilities
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Fair value assumptions - derivative liabilites:    
Fair value $ 645,302 $ 742,280
Risk-free interest rate    
Fair value assumptions - derivative liabilites:    
Derivative Liability, Measurement Input 0.14 1.59
Expected Term    
Fair value assumptions - derivative liabilites:    
Expected life of the options (Years) 3 days 3 days
Expected volatility    
Fair value assumptions - derivative liabilites:    
Derivative Liability, Measurement Input 135 152
Expected dividend yield    
Fair value assumptions - derivative liabilites:    
Derivative Liability, Measurement Input 0 0
XML 27 R34.htm IDEA: XBRL DOCUMENT v3.20.2
Convertible Promissory Notes Payable (Schedule Of Rollfoward Of Convertible Promissory Notes Payable) (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Debt Instrument [Line Items]    
Convertible promissory notes payable, December 31, 2019 $ 4,639,628  
Repayment for cash (10,000) $ (22,500)
Amortization of debt discount 101,686 $ 178,175
Convertible promissory notes payable, March 31, 2020 4,728,833  
Convertible Promissory Notes Payable    
Debt Instrument [Line Items]    
Convertible promissory notes payable, December 31, 2019 4,639,628  
Issued for cash 250,000  
Repayment for cash (10,000)  
Conversion to common stock (107,000)  
Debt discount related to new convertible promissory notes (145,481)  
Amortization of debt discount 101,686  
Convertible promissory notes payable, March 31, 2020 $ 4,728,833  
XML 28 R33.htm IDEA: XBRL DOCUMENT v3.20.2
Convertible Promissory Note Payable (Schedule Of Convertible Promissory Notes Payable) (Details) (Parenthetical) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Convertible Promissory Notes Maturity Date January 31, 2021    
Debt Instrument [Line Items]    
Convertible promissory notes maturity date Jan. 31, 2021 Jan. 31, 2021
Convertible promissory notes $ 2,019,000 $ 2,019,000
Convertible Promissory Notes Maturity Date January 31, 2021 | Minimum    
Debt Instrument [Line Items]    
Convertible promissory note interest rate 10.00% 10.00%
Convertible promissory notes into common shares at a fixed price $ 0.001 $ 0.001
Convertible Promissory Notes Maturity Date January 31, 2021 | Maximum    
Debt Instrument [Line Items]    
Convertible promissory note interest rate 12.00% 12.00%
Convertible promissory notes into common shares at a fixed price $ 0.25 $ 0.25
Convertible Promissory Notes Maturity Date December 31, 2020    
Debt Instrument [Line Items]    
Convertible promissory note interest rate 12.00% 12.00%
Conversion price of convertible promissory note into common shares, decrease $ 0.08 $ 0.14
Conversion price of convertible promissory note into common shares, increase $ 0.14 $ 0.08
Convertible promissory notes maturity date Dec. 31, 2020 Dec. 31, 2020
Convertible promissory notes $ 1,057,924 $ 1,057,924
Convertible Promissory Notes Maturity Date December 31, 2020 | Minimum    
Debt Instrument [Line Items]    
Convertible promissory notes discount rate 50.00%  
Convertible promissory notes fixed conversion price $ 0.0007  
Convertible Promissory Notes Maturity Date December 31, 2020 | Maximum    
Debt Instrument [Line Items]    
Convertible promissory notes discount rate 60.00%  
Convertible promissory notes fixed conversion price $ 0.0010  
Convertible Promissory Notes Maturity Date September 30, 2019    
Debt Instrument [Line Items]    
Convertible promissory note interest rate 8.00% 8.00%
Convertible promissory notes into common shares at a fixed price $ 0.02 $ 0.02
Convertible promissory notes maturity date Sep. 30, 2019 Sep. 30, 2019
Convertible promissory notes $ 161,000 $ 161,000
Convertible Promissory Notes Maturity Date November 25, 2020    
Debt Instrument [Line Items]    
Convertible promissory note interest rate 12.00% 12.00%
Convertible promissory notes maturity date Nov. 25, 2020 Nov. 25, 2020
Convertible promissory notes $ 807,000 $ 807,000
Convertible percentage of GES convertible into common shares of GES convertible into common shares of GES
XML 29 R32.htm IDEA: XBRL DOCUMENT v3.20.2
Convertible Promissory Note Payable (Schedule Of Convertible Promissory Notes Payable) (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]    
Unamortized debt discount $ (241,091) $ (197,296)
Less current portion (4,728,833) (4,639,628)
Convertible Promissory Notes Maturity Date January 31, 2021    
Debt Instrument [Line Items]    
Total convertible promissory notes payable 2,669,000 2,519,000
Convertible Promissory Notes Maturity Date December 31, 2020    
Debt Instrument [Line Items]    
Total convertible promissory notes payable 1,107,924 1,132,924
Convertible Promissory Notes Maturity Date September 30, 2019    
Debt Instrument [Line Items]    
Total convertible promissory notes payable 161,000 203,000
Convertible Promissory Notes Maturity Date November 25, 2020    
Debt Instrument [Line Items]    
Total convertible promissory notes payable 1,032,000 982,000
Convertible Promissory Notes Payable    
Debt Instrument [Line Items]    
Total convertible promissory notes payable 4,969,924 4,836,924
Unamortized debt discount (241,091) (197,296)
Convertible promissory notes payable, net discount 4,728,833 4,639,628
Less current portion (4,728,833) (4,639,628)
Long-term portion $ 0 $ 0
XML 30 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Promissory Notes Payable (Narrative) (Details) - USD ($)
1 Months Ended
Mar. 31, 2014
Mar. 31, 2020
Dec. 31, 2019
Short-term Debt [Line Items]      
Promissory notes payable   $ 230,000 $ 230,000
Two Promissory Notes Payable      
Short-term Debt [Line Items]      
Debt Instrument Face Amount $ 230,000    
Debt instrument, interest rate description The interest rate is the short-term applicable federal rate as determined by the Internal Revenue Service for the calendar month plus 10%.    
Debt instrument maturity date Sep. 30, 2019    
Promissory notes payable   $ 230,000 $ 230,000
XML 31 R30.htm IDEA: XBRL DOCUMENT v3.20.2
ACCRUED EXPENSES (Schedule of Accrued Liabilities) (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Payables and Accruals [Abstract]    
Accrued interest $ 1,788,244 $ 1,672,391
Accrued compensation 430,167 374,987
Other accrued expenses 36,740 33,789
Total accrued expenses $ 2,255,151 $ 2,081,167
XML 32 R2.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Current Assets:    
Cash and cash equivalents $ 9,031 $ 17,502
Total current assets 9,031 17,502
Deposits for proposed acquisitions 546,150 546,150
TOTAL ASSETS 555,181 563,652
Current Liabilities:    
Accounts payable 275,414 281,241
Accrued expenses 2,255,151 2,081,167
Convertible promissory notes payable, net of debt discount of $241,091 and $197,296 4,728,833 4,639,628
Promissory notes payable 230,000 230,000
Deferred revenue 79,313 40,500
Derivative liability 645,302 742,280
Total current liabilities 8,214,013 8,014,816
STOCKHOLDERS' DEFICIT    
Preferred stock, $0.001 par value; 2,000,000 shares authorized; Series B preferred stock; 250,000 shares authorized 49,202 and 60,000 issued and outstanding 49 60
Common stock, $0.001 par value; 2,000,000,000 shares authorized; 1,125,507,119 and 985,539,957 shares issued and outstanding 1,125,507 985,540
Additional paid-in capital 18,652,567 18,524,842
Accumulated deficit (27,413,913) (26,961,606)
Total Global Arena Holdings, Inc. stockholders' deficit (7,635,790) (7,451,164)
Noncontrolling interest (23,042)  
Total stockholders' deficit (7,658,832) (7,451,164)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 555,181 $ 563,652
XML 33 R29.htm IDEA: XBRL DOCUMENT v3.20.2
ACQUISITION DEPOSITS (Narrative) (Details) - USD ($)
1 Months Ended
Jun. 15, 2019
May 10, 2019
Dec. 17, 2019
Asset purchase agreement | Election Services Solutions, LLC      
Business Acquisition [Line Items]      
Ownership percentage by parent   100.00%  
Joint venture with TrueVote, Inc | Global Election Services, Inc      
Business Acquisition [Line Items]      
Payments made for investment $ 50,000   $ 40,000
Additional payment made for investment     $ 10,000
Exercise period of warrants issued 3 years   3 years
Exercise price of warrants issued $ 0.01   $ 0.01
Number of common shares and warrants issued to purchase common shares 4,500,000   4,500,000
Receive common shares of TrueVote 3,000,000   3,000,000
Common shares, ownership percentage 30.00%   30.00%
Election Services Solutions, LLC | Asset purchase agreement      
Business Acquisition [Line Items]      
Payment made by company   $ 550,000  
Payments for acquisition   $ 506,150  
Number of common shares issued for acquisition   20,000,000  
XML 34 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Investment (Narrative) (Details) - Blockchain Technologies Corp
1 Months Ended
Oct. 20, 2015
USD ($)
$ / shares
shares
Business Acquisition [Line Items]  
Payments for acquisition $ 125,000
Number of common shares issued for acquisition | shares 1,377,398
Value assigned for Business acquisition $ 68,870
Number of common shares called by warrants | shares 1,993,911
Exercise price of warrants issued | $ / shares $ 0.10
Value of warrants issued to purchase common shares $ 90,400
Exercise period of warrants issued 3 years
Number of common shares and warrants issued to purchase common shares | shares 1,000,000
Outstanding equity interest acquired 10.00%
Investment impairment charges $ 284,270
XML 35 R27.htm IDEA: XBRL DOCUMENT v3.20.2
Summary Of Significant Accounting Policies (Schedule Of Fair Value Of Assets And Liabilities) (Details) - USD ($)
Mar. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total $ 645,302 $ 742,280
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Beneficial conversion feature 645,302 742,280
Total 645,302 742,280
Fair Value Measurements At Using Fair Value Hierarchy (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Beneficial conversion feature 0 0
Total 0 0
Fair Value Measurements At Using Fair Value Hierarchy (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Beneficial conversion feature 645,302 742,280
Total 645,302 742,280
Fair Value Measurements At Using Fair Value Hierarchy (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Beneficial conversion feature 0 0
Total $ 0 $ 0
XML 36 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Summary Of Significant Accounting Policies (Schedule Of Antidilutive Securities Excluded From Earnings) (Details) - shares
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total 2,262,313,006 1,571,201,168
Options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total 48,000,000 48,000,000
Warrant    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total 466,276,590 466,276,590
Convertible notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total 1,748,036,416 1,056,924,578
XML 37 R25.htm IDEA: XBRL DOCUMENT v3.20.2
ORGANIZATION (Narrative) (Details) - USD ($)
1 Months Ended
Jun. 15, 2019
Dec. 17, 2019
Oct. 20, 2015
Joint venture with TrueVote, Inc | Global Election Services, Inc      
Business Acquisition [Line Items]      
Exercise price of warrants issued $ 0.01 $ 0.01  
Exercise period of warrants issued 3 years 3 years  
Number of common shares and warrants issued to purchase common shares 4,500,000 4,500,000  
Payments made for investment $ 50,000 $ 40,000  
Additional payment made for investment   $ 10,000  
Receive common shares of TrueVote 3,000,000 3,000,000  
Common shares, ownership percentage 30.00% 30.00%  
Blockchain Technologies Corp      
Business Acquisition [Line Items]      
Payments for acquisition     $ 125,000
Number of common shares issued for acquisition     1,377,398
Number of common shares called by warrants     1,993,911
Exercise price of warrants issued     $ 0.10
Exercise period of warrants issued     3 years
Number of common shares and warrants issued to purchase common shares     1,000,000
Outstanding equity interest acquired     10.00%
XML 38 R24.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit (Tables)
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
Schedule of summary of stock option activity

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Options

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

48,000,000

 

0.03

 

2.80

 

Granted

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited/Canceled

 

 

 

 

 

 

 

Outstanding, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

Exercisable, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

Schedule of summary of warrant activity

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Warrants

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

596,532,925

 

0.009

 

1.47

 

79,800

Granted

 

91,923,000

 

0.002

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited/Canceled

 

(195,833,333)

 

0.002

 

 

 

 

Outstanding, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

Exercisable, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

XML 39 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Valuation Techniques Used in Determining Fair Value of Derivative Liability

 

 

March 31,

 

December 31,

 

 

2020

 

2019

Risk-free interest rate

 

0.14%

 

1.59%

Expected life of the options (Years)

 

0.01

 

0.01

Expected volatility

 

135%

 

152%

Expected dividend yield

 

0%

 

0%

 

 

 

 

 

Fair Value

$

645,302

$

742,280

Schedule of Changes in Fair Value of Financial Derivatives

Derivative liabilities, December 31, 2019

$

742,280

Change in fair value of derivative liabilities

 

(96,978)

Derivative liabilities, March 31, 2020

$

645,302

XML 40 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Convertible Promissory Notes Payable (Tables)
3 Months Ended
Mar. 31, 2020
Convertible Debt [Abstract]  
Schedule of convertible promissory notes payable

 

  

March 31,

   

December 31,

 

 

  

2020

   

2019

 

Convertible promissory notes with interest at 10% to 12% per annum, convertible into common shares at a fixed price ranging from $0.001 to $0.25 per share. Maturity dates through January 31, 2021, as amended. ($2,019,000 in default)

 $

2,669,000

  $

2,519,000

 

Convertible promissory notes with interest at 12% per annum, convertible into common shares at a price ranging from $0.08 to $0.14 or a 50% to 60% discount from the lowest trade price in the 20-25 trading days prior to conversion (as of March 31, 2020 the conversion price would be $0.0007 to $0.0010 per share).  Maturity dates through December 31, 2020, as amended. ($1,057,924 in default)

  

1,107,924

   

1,132,924

 

Convertible promissory notes with interest at 8% per annum, convertible into common shares at a fixed price of $0.02 per share. The maturity date was September 30, 2019, as amended. ($161,000 in default)

  

161,000

   

203,000

 

Convertible promissory notes with interest at 12% per annum, convertible into common shares of GES. The maturity dates through November 25, 2020, as amended. ($807,000 in default)

  

1,032,000

   

982,000

 

Total convertible promissory notes payable

  

4,969,924

   

4,836,924

 

Unamortized debt discount

  (241,091)  (197,296)

Convertible promissory notes payable, net discount

  

4,728,833

   

4,639,628

 

Less current portion

  (4,728,833)  (4,639,628)

Long-term portion

 $

  $

 
Schedule of rollfoward of convertible promissory notes payable

Convertible promissory notes payable, December 31, 2019

$

4,639,628

Issued for cash

 

250,000

Repayment for cash

 

(10,000)

Conversion to common stock

 

(107,000)

Debt discount related to new convertible promissory notes

 

(145,481)

Amortization of debt discounts

 

101,686

Convertible promissory notes payable, March 31, 2020

$

4,728,833

XML 41 R21.htm IDEA: XBRL DOCUMENT v3.20.2
ACCRUED EXPENSES (Tables)
3 Months Ended
Mar. 31, 2020
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities

 

   

March 31,

   

December 31,

 
   

2020

   

2019

 

Accrued interest

 $1,788,244  $1,672,391 

Accrued compensation

  

430,167

   

374,987

 

Other accrued expenses

  

36,740

   

33,789

 
  $2,255,151  $2,081,167 
XML 42 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Summary Of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

 

March 31,

 

2020

 

2019

Options

48,000,000

 

48,000,000

Warrants

466,276,590

 

466,276,590

Convertible notes

1,748,036,416

 

1,056,924,578

Total

2,262,313,006

 

1,571,201,168

Schedule of Fair Value Hierarchy of Assets and Liabilities

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

March 31, 2020

Description

 

March 31, 2020

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

Total

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

December 31, 2019

Description

 

December 31, 2019

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

742,280

$

$

742,280

$

 

 

 

 

 

 

 

 

 

Total

$

742,280

$

$

742,280

$

XML 43 R1.htm IDEA: XBRL DOCUMENT v3.20.2
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2020
Sep. 24, 2020
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2020  
Current Fiscal Year End Date --12-31  
Entity File Number 000-49819  
Entity Registrant Name Global Arena Holding, Inc.  
Entity Central Index Key 0001138724  
Entity Tax Identification Number 33-0931599  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 208 East 51 Street  
Entity Address, Address Line Two Suite 112  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10022  
City Area Code 646  
Local Phone Number 801-6146  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,515,398,504
XML 44 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Summary Of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of GAHI and its wholly-owned and majority owned subsidiaries, GES, GAHI Acquisition Corp and Tidewater Energy Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.

Noncontrolling Interest

Noncontrolling Interest

 

The Company follows ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.

The net income (loss) attributed to the NCI is separately designated in the accompanying condensed consolidated statements of operations and comprehensive loss.

Basic and Diluted Earnings (Loss) Per Share

Basic and Diluted Earnings (Loss) Per Share

 

Earnings per share is calculated in accordance with the ASC 260-10, Earnings Per Share. Basic earnings-per-share is based upon the weighted average number of common shares outstanding. Diluted earnings-per-share is based on the assumption that all dilutive convertible notes, stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

 

 

March 31,

 

2020

 

2019

Options

48,000,000

 

48,000,000

Warrants

466,276,590

 

466,276,590

Convertible notes

1,748,036,416

 

1,056,924,578

Total

2,262,313,006

 

1,571,201,168

Management Estimates

Management Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates reflected in the consolidated financial statements include, but are not limited to, share-based compensation, and assumptions used in valuing derivative liabilities. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Convertible Debt

Convertible Debt

 

Convertible debt is accounted for under FASB ASC 470, Debt – Debt with Conversion and Other Options. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital.  The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.  

 

Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense. 

 

The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.

Derivative Financial Instruments

Derivative Financial Instruments

 

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. 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. The Company uses the Black-Scholes-Merton model to value the derivative instruments. 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.

Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GES’s income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.

Share-Based Compensation

Share-Based Compensation

 

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

Fair Value Measurements

Fair Value Measurements

 

The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:

 

 

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

 

 

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 

 

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Cash, accounts payable and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.

 

Promissory notes payable and convertible promissory notes payable – Promissory notes payable and convertible promissory notes payable are recorded at amortized cost.  The carrying amount approximates their fair value.

 

The Company uses Level 2 inputs for its valuation methodology for the beneficial conversion feature and warrant derivative liabilities as their fair values were determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.

 

The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of March 31, 2020 and December 31, 2019

 

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

March 31, 2020

Description

 

March 31, 2020

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

Total

$

645,302

$

$

645,302

$

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

Fair Value Measurements at

 

 

As of

 

December 31, 2019

Description

 

December 31, 2019

 

Using Fair Value Hierarchy

 

 

 

 

Level 1

 

Level 2

 

Level 3

Beneficial conversion feature

$

742,280

$

$

742,280

$

 

 

 

 

 

 

 

 

 

Total

$

742,280

$

$

742,280

$

Income Taxes

Income Taxes

 

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In June 2018, the FASB issued Accounting Standards Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements

 

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement

 

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

XML 45 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 12– SUBSEQUENT EVENTS

 

Subsequent to March 31, 2020, the Company issued:

 

 

226,526,001 shares of common stock for the conversion of $346,000 of convertible debt; and

 

163,365,384 shares of common stock to officers and directors for services rendered.

 

In August 2020, the Company entered into an advisory agreement for strategic business development, capital sourcing and market development management services.  The agreement is for 18 months but may be canceled within the first 90 days. Per the terms of the agreement the Company will pay the following compensation:

 

 

$50,000 retainer payable within 150 days of the date of the agreement;

 

Warrants to purchase 4% of GES (cashless warrants);

 

Warrants to purchase 50,000,000 shares of the Company’ common stock for $0.002 per shares;

 

Monthly compensation of $10,000 commencing October 1, 2020;

 

1% of net revenue from election services provided to municipal jurisdictions in the United States for 12 months; and

 

2% of all revenue generated from election services provided to municipal jurisdictions in the United States that were introduced by consultant.

 

Also, in August 2020, the Company entered into a software development agreement that provides for payments totaling $43,000 through September 30, 2020.

XML 46 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Agreements
3 Months Ended
Mar. 31, 2020
Agreements Disclosure [Abstract]  
AGREEMENTS

NOTE 11– AGREEMENTS

 

On May 13, 2019, the Company entered into a joint venture agreement with Voting Portals, LLC (VP), a Florida limited liability company. Pursuant to this agreement, the joint venture will be making use of the VP online e-voting web portal solutions and proprietary e-voting software programs to service and fulfill GES’s clients’ online elections and other e-voting events pursuant to the terms of the agreement, as well as any other ventures and relationships agreed to pursuant to the goals of the agreement. The Agreement was amended and as part of this agreement, the Company will be issuing 10,000,000 common shares to VP for services rendered, upon approval of the corporate actions at the 2019 annual meeting. VP will own 100% of the rights to the software, while GES will be responsible for all administrative and other election procedures. The Company is in the process of closing this transaction in the third quarter of 2020.

 

On May 13, 2019, the Company amended the master services agreement with HCAS Technologies (the “MSA”), Under the MSA, the Company will be acquiring information technology services and management from HCAS Technologies, as well as retaining Mr. Magdiel Rodriguez to act as Chief Information Officer. Pursuant to this Amended MSA, the Company will issue a total of 30,000,000 warrants to purchase the Company’s common shares at a price of $0.005 as consideration for the services of HCAS and Mr. Magdiel. The Company is in the process of closing this transaction in the third quarter of 2020.

 

On June 19, 2019, GES Inc. signed an engagement letter with Blockchain Valley Ventures (“BVV”) of Zug Switzerland. Under the terms of the agreement, GES will pay BVV 50,000 Swiss Francs (CHF) and BVV will serve as an advisor in connection with a Voter Registration, Voter Authentication, and Voter Eligibility using a Blockchain Platform primarily covering the following matters:

 

 Development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies such as Phoenix Systems AG, Securosys AG and others as well as any subject matter expert to be invited by Global Election Services Inc.
 Development of a high-level technology solution architecture and its requirements for the blockchain based voting registration platform with inputs from third party blockchain technology.
 Documentation of the results of a) and b) in order to provide the basis of the technical development of the platform.
 Development of an implementation recommendation with respect to Voting on the Blockchain Platform.
 Legal facilitation with respect to outside tax and legal advisors in connection with compliance with local and international regulation.
 Project Management during the engagement.

 

This will be delivered as a Working Paper discussing a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation;

 

BVV is a Crypto Valley, Switzerland based venture capital firm who consists of highly successful entrepreneurs, finance experts, blockchain technology experts and ICO experienced analysts and consultants. The documents created will be used by GES, to create a Minimal Viable Product. This Product, along with GES licensing rights on GES existing Registration and Tabulation Software will be owned by GES.

 

On June 27, 2019 BVV and GES signed and amended agreement calling for a $25,000 CHF Payment for the development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies, and a $ 25,000 CHF payment upon completion of the engagement. GES made payments of $25,000 CHF payment.

 

On September 12, 2019, representatives of GES attended a Blockchain workshop in Zurich Switzerland to discuss the specifics of using the Blockchain in the Elections Industry. GES representatives met with a Blockchain Technology Companies who have technology solution architecture and its requirements for the blockchain based on a voting registration platform. Currently this Blockchain Development is still being developed and GES and BVV are working on a Working Paper discussing a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation.

 

On June 7, 2019, the Company’s second subsidiary, GAHI Acquisition Corp. (GAHI) was authorized by the Company’s Board of Directors to infuse an initial deposit of $50,000 into the subsidiary for general capital and administrative expenses. GAHI Acquisition will be repurposed in order to explore potential new business ventures in an effort to increase shareholder value. The Company will cause GAHI Acquisition to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. The Company added Mr. Jason N. Old to the GAHI Acquisition Board as a Director.

 

On November 28, 2019 the Company’s Board of Directors authorized the termination of the transaction previously authorized to infuse an initial deposit of $50,000 into GAHI Acquisition for general capital and administrative expenses and have GAHI Acquisition repurposed in order to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. GAHI Acquisition will remain a 100% subsidiary of the Company and will focus on Blockchain related companies for investments and acquisition.

XML 47 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Commitments And Contingencies
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 10 - COMMITMENTS AND CONTINGENCIES

 

The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.

 

On October 10, 2013, GACOM settled a complaint with the National Futures Association for a fine of $50,000 for certain noncompliance with Commodity Futures Trading Commission regulations. The fine has not been paid and is included in accounts payable and accrued expenses at March 31, 2020 and December 31, 2019. The Company is currently attempting to adjudicate and settle this fine.

 

On December 26, 2017, the Company entered into a settlement agreement with a prior attorney with regards to outstanding legal fees owed. Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $ 25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. The $ 200,000 settlement is in default, and is carried in the accounts payable, however the Company is in the process of settling the outstanding balance. The Company made payments of $10,000 on the owed legal fees in 2020.

XML 48 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Stockholders' Deficit
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
STOCKHOLDERS' DEFICIT

NOTE 9- STOCKHOLDERS’ DEFICIT

 

Series B Preferred Stock

 

Pursuant to the Company’s Certificate of Incorporation, the Company has authorized 2,000,000 shares of $0.001 par value Preferred Stock. The Company has designated 250,000 of the 2,000,000 shares as Series B Preferred Stock. The Series B Preferred stockholders are entitled to a cumulative stock dividend, up to a maximum of 10% additional common stock upon the conversion after one year. The Series B Preferred Stock may be converted into common shares, at any time, at the option of the holder. The conversion price shall be the greater of $0.01 or 90% of the lowest closing price during the five most recent trading days prior to conversion. The number of common shares to be issued shall be the number of Series B Preferred shares times $10 per shares divided by the conversion price.

 

During the year ended December 31, 2017, the Company sold 90,000 shares of Series B Preferred Stock for cash proceeds of $900,000. During the year ended December 31, 2018, 30,000 of these preferred shares were converted into 30,743,885 shares of common stock During the three months ended March 31, 2020, 10,798 of these preferred shares were converted into 36,519,609 shares of common stock.

 

Common Stock

 

On April 28, 2016, the stockholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized common shares from 100,000,000 to 1,000,000,000. In addition, the stockholders also approved an amendment to the Company’s Stock Awards Plan, originally filed June 27, 2011, which will increase the number of shares authorized to be issued under the Plan from 3,000,000 shares to 7,460,000 shares.

 

On October 11, 2019, the Company’s shareholders approved an increase of the Company’s authorized shares to Two Billion (2,000,000,000) Common Shares.

 

During the three months ended March 31, 2020, the Company issued 103,447,553 shares of common stock for convertible notes of $107,000 and accrued interest of $15,200.

 

During the three months ended March 31, 2019, the Company issued 10,971 shares of common stock for accrued interest of $6,144.

 

Option Activity

 

 

A summary of the option activity is presented below:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Options

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

48,000,000

 

0.03

 

2.80

 

Granted

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited/Canceled

 

 

 

 

 

 

 

Outstanding, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

Exercisable, March 31, 2020

 

48,000,000

 

0.03

 

2.55

 

 

Warrant Activity

 

 

A summary of warrant activity is presented below:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

Average

 

 

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

 

Warrants

 

Price ($)

 

Life (in years)

 

Value ($)

Outstanding, December 31, 2019

 

596,532,925

 

0.009

 

1.47

 

79,800

Granted

 

91,923,000

 

0.002

 

 

 

 

Exercised

 

 

 

 

 

 

 

Forfeited/Canceled

 

(195,833,333)

 

0.002

 

 

 

 

Outstanding, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

Exercisable, March 31, 2020

 

492,622,592

 

0.011

 

2.08

 

12,950

 

During the three months ended March 31, 2020, the Company issued a total of 91,923,000 warrants in connection with a new convertible promissory note payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:

·    Expected life of 3.00—3.25 years

·    Volatility of 152%;

·    Dividend yield of 0%;

·    Risk free interest rate of 0.72% - 1.59%

XML 49 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 8 - DERIVATIVE FINANCIAL INSTRUMENTS

 

Certain of the Company’s convertible promissory notes payable are convertible into shares of the Company’s common stock at a percentage of the market price on the date of conversion.  The Company has determined that the variable conversion rate is an embedded derivative instrument. The Company uses the Black-Scholes valuation method to value the derivative instruments at inception and on subsequent valuation dates. Weighted average assumptions used to estimate fair values are as follows:

 

 

 

March 31,

 

December 31,

 

 

2020

 

2019

Risk-free interest rate

 

0.14%

 

1.59%

Expected life of the options (Years)

 

0.01

 

0.01

Expected volatility

 

135%

 

152%

Expected dividend yield

 

0%

 

0%

 

 

 

 

 

Fair Value

$

645,302

$

742,280

 

A rollfoward of the derivative liability from December 31, 2019 to March 31, 2020 is below:

 

Derivative liabilities, December 31, 2019

$

742,280

Change in fair value of derivative liabilities

 

(96,978)

Derivative liabilities, March 31, 2020

$

645,302

XML 50 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Convertible Promissory Notes Payable
3 Months Ended
Mar. 31, 2020
Convertible Debt [Abstract]  
CONVERTIBLE PROMISSORY NOTES PAYABLE

NOTE 7 - CONVERTIBLE PROMISSORY NOTES PAYABLE

 

Convertible promissory notes payable at March 31, 2020 and December 31, 2019 consist of the following:

 

 

  

March 31,

   

December 31,

 

 

  

2020

   

2019

 

Convertible promissory notes with interest at 10% to 12% per annum, convertible into common shares at a fixed price ranging from $0.001 to $0.25 per share. Maturity dates through January 31, 2021, as amended. ($2,019,000 in default)

 $

2,669,000

  $

2,519,000

 

Convertible promissory notes with interest at 12% per annum, convertible into common shares at a price ranging from $0.08 to $0.14 or a 50% to 60% discount from the lowest trade price in the 20-25 trading days prior to conversion (as of March 31, 2020 the conversion price would be $0.0007 to $0.0010 per share).  Maturity dates through December 31, 2020, as amended. ($1,057,924 in default)

  

1,107,924

   

1,132,924

 

Convertible promissory notes with interest at 8% per annum, convertible into common shares at a fixed price of $0.02 per share. The maturity date was September 30, 2019, as amended. ($161,000 in default)

  

161,000

   

203,000

 

Convertible promissory notes with interest at 12% per annum, convertible into common shares of GES. The maturity dates through November 25, 2020, as amended. ($807,000 in default)

  

1,032,000

   

982,000

 

Total convertible promissory notes payable

  

4,969,924

   

4,836,924

 

Unamortized debt discount

  (241,091)  (197,296)

Convertible promissory notes payable, net discount

  

4,728,833

   

4,639,628

 

Less current portion

  (4,728,833)  (4,639,628)

Long-term portion

 $

  $

 

 

A rollfoward of the convertible promissory notes payable from December 31, 2019 to March 31, 2020 is below:

 

Convertible promissory notes payable, December 31, 2019

$

4,639,628

Issued for cash

 

250,000

Repayment for cash

 

(10,000)

Conversion to common stock

 

(107,000)

Debt discount related to new convertible promissory notes

 

(145,481)

Amortization of debt discounts

 

101,686

Convertible promissory notes payable, March 31, 2020

$

4,728,833

XML 51 R12.htm IDEA: XBRL DOCUMENT v3.20.2
Promissory Notes Payable
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
PROMISSORY NOTES PAYABLE

NOTE 6 - PROMISSORY NOTES PAYABLE

 

In March 2014, the Company issued two promissory notes for a total of $230,000. The interest rate is the short-term applicable federal rate as determined by the Internal Revenue Service for the calendar month plus 10%. These two promissory notes are due on September 30, 2019, as amended.  The outstanding balance was $230,000 and $230,000 as of March 31, 2020 and December 31, 2019, respectively.

XML 52 R11.htm IDEA: XBRL DOCUMENT v3.20.2
ACCRUED EXPENSES
3 Months Ended
Mar. 31, 2020
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 5– ACCRUED EXPENSES

 

Accrued expenses at March 31, 2020 and December 31, 2019 consisted of the following:

 

   

March 31,

   

December 31,

 
   

2020

   

2019

 

Accrued interest

 $1,788,244  $1,672,391 

Accrued compensation

  

430,167

   

374,987

 

Other accrued expenses

  

36,740

   

33,789

 
  $2,255,151  $2,081,167 
XML 53 R10.htm IDEA: XBRL DOCUMENT v3.20.2
ACQUISITION DEPOSITS
3 Months Ended
Mar. 31, 2020
Business Combinations Abstract  
ACQUISITION DEPOSITS

NOTE 4– ACQUISITION DEPOSITS

 

On May 10, 2019, the Company entered into an asset purchase agreement with Election Services Solutions, LLC (the “APA”). Under the APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC. The Company will pay $550,000, of which $506,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this APA. The Company is in the process of closing this transaction in the third quarter of 2020.

 

On June 15, 2019 GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES will invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of Global Arena Holding Inc., (“GAHC”). GAHC will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc.

 

TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable.

 

Upon the closing of the agreement, GES will have invested $50,000 into a 24 Month Debenture and will have issued a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc. as part of the joint venture between the companies. The Company on December 17, 2019 paid $ 40,000 to True Vote. The Company will pay an additional $10,000 and a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, in the third quarter of 2020.

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