10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d ) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM ___________ TO _____________.

Commission file number: 333-141907

TAUTACHROME, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-5034780
(State or other Jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1846 e. Innovation Park Drive, Oro Valley, AZ 85755

(Address of principal executive offices)

(520) 318-5578

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has 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 o

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
(do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of November 9, 2018, was 1,827,358,546.

TAUTACHROME, INC.

FORM 10-Q

INDEX

PART I – FINANCIAL INFORMATION
Item 1 –	Consolidated Financial Statements	3
Item 2 –	Management’s Discussion And Analysis Of Financial Condition And Results Of Operations	18
Item 3 –	Quantitive And Qualitative Disclosures About Market Risk	21
Item 4 –	Controls and Procedures	21
PART II – OTHER INFORMATION
Item 1 –	Legal Proceedings	22
Item 1A –	Risk Factors	22
Item 2 –	Unregistered Sale of Equity Securities	22
Item 3 –	Defaults Upon Senior Securities	22
Item 4 –	Mine Safety Disclosures	22
Item 5 –	Other Information	22
Item 6 –	Exhibits	23
Signatures		24

2

PART I – FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements

TAUTACHROME, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	9/30/2018			12/31/2017
ASSETS
Current assets:
Cash	$	33,837		$	9,726
Total current assets		33,837			9,726
TOTAL ASSETS	$	33,837		$	9,726
LIABILITIES
Accounts payable and accrued expenses	$	427,707		$	356,213
Accounts payable - related party		14,392			15,515
Loans from related parties		98,529			100,033
Convertible notes payable - related party		87,790			101,160
Short-term convertible notes payable, net		1,002,735			705,303
Notes payable in default		43,500			103,298
Short-term notes payable		15,893			17,191
Derivative liability		779,424			-
Court judgment liability		49,000			54,000
Total current liabilities		2,518,970			1,452,713
Long-term convertible notes payable, net		27,825			5,413
Crypto-currency notes payable		100,000			-
Total non-current liabilities		127,825			5,413
TOTAL LIABILITIES		2,646,795			1,458,126
STOCKHOLDERS’ EQUITY (DEFICIT)
Series D Convertible Preferred, par value $0.0001. 13,795,104 shares authorized, 13,795,104 shares issued and outstanding at September 30, 2018 and December 31, 2017		1,380			1,380
Common stock, $0.00001 par value. Four billion shares authorized. 1,763,596,480 and 1,685,941,636 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively		17,637			16,860
Additional paid in capital		4,295,209			3,787,675
Common stock payable		75,115			23,186
Accumulated deficit		(7,078,026	)		(5,293,041	)
Effect of foreign currency exchange		75,727			15,540
TOTAL STOCKHOLDERS’ EQUITY		(2,612,958	)		(1,448,400	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	33,837		$	9,726

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

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TAUTACHROME, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Nine Months Ended September 30,						Three Months Ended September 30,
	2018			2017			2018			2017
OPERATING EXPENSES
General and administrative	$	576,230			236,111		$	149,307			31,596
Total operating expenses		576,230			236,111			149,307			31,596
Operating loss		(576,230	)		(236,111	)		(149,307	)		(31,596	)
OTHER INCOME / (EXPENSE)
Gain or (loss) on litigation		(55,000	)		2,372,668			(55,000	)		2,372,668
Interest expense		(1,003,299	)		(177,187	)		(264,730	)		(46,712	)
Change in value of derivatives		(150,456	)		-			539,589			-
Total other		(1,208,755	)		2,195,481			219,859			2,325,956
Net income or (loss)	$	(1,784,985	)	$	1,959,370		$	70,552		$	2,294,360
OTHER COMPREHENSIVE INCOME (LOSS)
Effect of foreign currency exchange		60,187			(69,309	)		14,791			(16,914	)
Net comprehensive income or (loss)	$	(1,724,798	)	$	1,890,061		$	85,343		$	2,277,446
Net (loss) or income per common share
Basic	$	0.00		$	0.00		$	0.00		$	0.00
Diluted	$	0.00		$	0.00		$	0.00		$	0.00
Weighted average shares outstanding
Basic		1,712,011,307			1,684,825,134			1,736,404,988			1,687,982,960
Diluted		1,712,011,307			1,828,761,881			1,952,782,242			1,866,629,731

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

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TAUTACHROME, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY / (DEFICIT)

(Unaudited)

	Common Stock						Preferred Stock Series D				Additional Paid in		Stock		Other Comprehensive Income			Accumulated			Total Stockholders’ Equity /
	Shares			Amount			Shares		Amount		Capital		Payable		(Loss)			Deficit			(Deficit)
Balance, 12/31/16		1,672,789,717		$	16,728			13,795,104		1,380	$	3,421,595	$	10,586	$	82,748		$	(7,081,154	)	$	(3,548,117	)
Shares issued for conversion of debt		8,493,243			85							54,080										54,165
Shares issued for services		6,700,000			67							84,262										84,329
Shares retired from consultant		(2,041,324	)		(20	)						20										-
Shares earned by consultant														12,600								12,600
Beneficial conversion feature of convertible notes												209,040										209,040
Imputed interest												18,678										18,678
Effect of foreign currency exchange																(67,208	)					(67,208	)
Net income																			1,788,113			1,788,113
Balance, 12/31/17		1,685,941,636		$	16,860			13,795,104	$	1,380	$	3,787,675	$	23,186	$	15,540		$	(5,293,041	)	$	(1,448,400	)
Shares issued with convertible note payable		15,000,000			150							127,350										127,500
Shares issued for conversion of debt		52,654,844			527							146,804										147,331
Shares issued to settle lawsuit		10,000,000			100							59,900										60,000
Derivative associated with early debt retirement												159,711										159,711
Shares earned by consultants														51,929								51,929
Imputed interest												13,769										13,769
Effect of foreign currency exchange																60,187						60,187
Net loss																			(1,784,985	)		(1,784,985	)
Balance, 9/30/18		1,763,596,480		$	17,637			13,795,104	$	1,380	$	4,295,209	$	75,115	$	75,727		$	(7,078,026	)	$	(2,612,958	)

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

5

TAUTACHROME, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
	2018				2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(1,784,985	)	$	1,959,370
Stock-based compensation		51,929			84,329
(Gain) or loss on litigation		55,000			(2,372,668	)
Change in fair value of derivative		150,456			-
Amortization of discounts on notes payable		898,104			71,743
Imputed interest		13,769			11,457
Changes in operating assets and liabilities:
Accounts payable and accrued expenses		49,319			128,858
Accounts payable - related party		-			494
Net cash used in operating activities		(566,408	)		(116,417	)
CASH FLOWS FROM INVESTING ACTIVITIES		-			-
Net cash used in investing activities		-			-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable		603,000			208,040
Proceeds from crypto-currency notes payable		100,000			-
Principal payments on notes payable		(159,298	)		(30,693	)
Proceeds from related-party loan		1,930			11,153
Principal payments on related-party loans		(15,300	)		(1,000	)
Net cash provided by financing activities		530,332			187,500
Effect of exchange rate changes on cash and cash equivalents		60,187			(69,309	)
Net increase/(decrease) in cash		24,111			1,774
Cash and equivalents - beginning of period		9,726			1,850
Cash and equivalents - end of period	$	33,837		$	3,624
SUPPLEMENTARY INFORMATION
Cash paid for interest	$	7,505		$	627
Cash paid for income taxes	$	-		$	-
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS
Discounts on convertible notes	$	664,688		$	204,040
Conversion of debt to common stock	$	147,358		$	54,167
Settlement of derivative liability	$	159,711		$	-
Shares issued for settlement of lawsuit	$	5,000		$	-

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

6

TAUTACHROME, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

Note 1 – Organization and Nature of Business

History

Tautachrome, Inc. (formerly Roadships Holdings, Inc.) was formed in Delaware on June 5, 2006 as Caddystats, Inc. and hereinafter collectively referred to as “Tautachrome”, the “Company”, “we’ or “us”).

The Company adopted the accounting acquirer’s year end, December 31.

Our Business

Tautachrome operates in the internet applications space, a large space we believe to be uniquely able to make possible fast growing and novel business. The iPhone, Google, Facebook, Amazon, Twitter, Android, Uber and numerous other examples are reminders of the ability of the internet applications space to surprise us with new business universes out of nowhere. A recent surprise was the arrival in the internet applications space of blockchain technology, which is empowering enterprises of all sizes to create ecosystems of trade based on self-introduced and globally useable cryptocurrencies. The arrival of blockchain technology has added a significant new and leading element to Tautachrome’s business plans and activities.

Tautachrome is currently pursuing two main avenues of business activity based on our patented imaging technology (branded “KlickZie” technology):

1.	KlickZie’s blockchain cryptocurrency based ecosystem: our recently added activity to create our own KlickZie blockchain and cryptocurrency to incentivize user download of KlickZie products and to provide a crypto based monetary stream to the Company, and
2.	KlickZie technology-based business: our longstanding flagship activity to develop and monetize downloadable apps based on our patented KlickZie trusted imaging technology and based on our patented trusted image-based social interactions using the pictures and videos that smartphone users generate on the web using their KlickZie imaging app.

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Consolidated Financial Statements

In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending September 30, 2018. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2017, as reported in Form 10-K filed with the Securities and Exchange Commission.

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Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Principles of Consolidation

Our consolidated financial statements include the accounts of Tautachrome, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation.

Long-Lived Assets, Intangible Assets and Impairment

In accordance with U.S. GAAP, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Loss Per Share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the nine months ended September 30, 2018 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU 201701, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements.

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In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 201711, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 47020, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

The adoption of these standards is not expected to have a material impact on our financial position or results of operations.

Note 3 – Going Concern

We have not begun our core operations in the technology industry and have not yet acquired the assets to enter this markets and we will require additional capital to do so. There is no guarantee that we will acquire the capital to procure the assets to enter this market or, upon doing so, that we will generate positive cash flows from operations. Substantial doubt exists as to Tautachrome’s ability to continue as a going concern. No adjustment has been made to these financial statements for the outcome of this uncertainty.

Note 4 – Related Party Transactions

For the year ended December 31, 2017, we had the following transactions with the Twenty Second Trust (the “Trust”), the trustee of whom is Sonny Nugent, the son of our major shareholder and former Chief Executive Officer, Micheal Nugent:

· We accrued $4,924 in interest payable to the Trust and paid $0 of interest for both years.

· The outstanding balance at December 31, 2017 to the 22^nd Trust was $100,033 and $16,012 for principal and interest, respectively, after adjustments for foreign exchange effect.

For the nine months ended September 30, 2018, we accrued $3,679 to the 22^nd Trust. At September 30, 2018, we owed $98,529 and $19,563 in principal and interest to the Trust, respectively.

According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%.

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Convertible note payable, related party

On May 5, 2013 (and on August 8, 2013 with an enlargement amendment) the Company entered into a no interest demand-loan agreement with our current Chairman, Jon N. Leonard under which the Company may borrow such money from Jon as Jon in his sole discretion is willing to loan.

The terms of the note provide that at the Company’s option, the Company may make repayments in stock, at a fixed share price of $1.00 per share. Also, because this loan is a no-interest loan, an imputed interest expense of $5,834 was recorded as additional paid-in capital for the nine months ended September 30, 2018. The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed.

During the nine months ended September 30, 2018, Dr. Leonard paid $1,930 of company expenses and this amount is included in our loan to him. Also during the nine months ended September 30, 2018, we repaid Dr. Leonard $15,300 of principal on his loan. At September 30, 2018, we owed Dr. Leonard $87,790.

In addition, at September 30, 2018, we owed $14,392 of related-party accounts payable, mostly arising from Company expenses paid by related parties.

Note 5 – Capital

During the year ended December 31, 2017, we issued 8,493,243 common shares to convert $49,249 of convertible notes payable, and $4,916 in accrued interest, to common stock.

Also during the year ended December 31, 2017, we issued 6,700,000 common shares to four consultants for services. We valued the shares at their grant date fair values, charging general and administrative expenses with $84,329.

On October 5, 2017, we received 2,041,324 shares back into the treasury from a consultant. These shares were gifted to the consultant by a major shareholder. We recorded the receipt of these shares at par value.

On October 16, 2017, we signed a consulting agreement to aide us in developing our blockchain-based cryptotokens in five stages, with 700,000 shares accruing at the completion of each stage. Phase 1 was completed on December 12, 2017. We therefore accrued those 700,000 shares at the date they were earned, charging general and administrative expense $12,600. Additionally, Phases 2,3,4 and 5 were completed on January 16, 2018, February 26, 2018, March 8, 2018 and June 6, 2018, respectively. During the nine months ended September 30, 2018, we accrued an additional 2,800,000 shares, charging general and administrative expenses with $33,460.

During the nine months ended September 30, 2018, we issued 52,654,844 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $137,000 and $10,328 of principal and interest, respectively. As part of these conversions, we retired $147,328 of associated derivative liabilities which we included in Additional Paid in Capital.

On August 14, 2018, we settled our lawsuit with Richard Morgan (see Note 7) in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation.

Also during the nine months ended September 30, 2018, we issued 15,000,000 shares as an equity incentive to a creditor (see Note 6) . We valued the shares at their grant-date fair values and recorded a discount on that debt of $127,500.

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Preferred Stock

On September 29, 2016, the Company’s principal shareholders (“Principals”), Dr. Jon N. Leonard, Micheal P. Nugent, and Matthew W. Staker, offered to retire 1,379,510,380 of their common shares in exchange for a new series of non-trading preferred shares.

On October 5, 2016, the Board of Directors voted to accept the share retirement offer, and on October 20, 2016, the Company filed a Certificate of Designations with the State of Delaware creating 13,795,104 shares of Series D Preferred Stock (the “Preferred Shares”) to effect the exchange.

Share Exchange ratio and Preservation of Voting Rights

In the share exchange, each principal received 1 Preferred Share for each 100 common shares retired. Each share of Preferred Shares entitles the holder to 100 votes (and each 1/100^th of a Preferred Share entitles the holder to one vote).

Conversion Rights

A holder may convert Preferred Shares to common under the following conditions:

Automatic conversion – each Preferred Share automatically converts to 100 common shares upon the earlier of

· The end of 5 years (5:00 PM EST, October 5, 2021), or

· A change of control

Optional conversion - After October 5, 2017, each holder may convert each share into 100 shares of common stock immediately following a period of ten consecutive trading days during which the average closing or last sale price exceeds $3.00 per share. Also, each holder may convert into 110 shares of common stock at any time that the shares are listed on a National exchange (for example, the NYSE or NASDAQ).

Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increase Additional Paid in Capital. For the nine months ended September 30, 2018, we imputed $13,769 of such interest.

Note 6 – Debt

Loans from related parties

As is discussed in Note 4, at September 30, 2018 we owed $205,882 in related-party debts consisting of $98,529 and $19,563 in unpaid principal and interest, respectively, to the 22^nd Trust and $87,790 owed to our CEO, Dr. Jon Leonard.

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Convertible notes payable

During the year ended December 31, 2017 we issued seven convertible promissory notes in the aggregate amount of $213,040, receiving proceeds therefrom of the same amount. These convertible notes can convert to common stock at various prices. We evaluated these convertible notes for beneficial conversion features and calculated a collective value of $209,040 which we are accounting for as debt discounts.

During the year ended December 31, 2017, we amortized $138,668 of debt discounts to interest expense.

Also during the year ended December 31, 2017, we converted two outstanding convertible notes payable to common stock, reducing principal owed by $49,249.

At December 31, 2017, $95,798 of our convertible notes payable were in default.

On December 27, 2017, we issued a convertible promissory note which was not funded until January 2, 2018. The note nominal amount was $78,000 and we received proceeds of $75,000, recording an original issue discount in the amount of $3,000. The note matures on September 30, 2018 and bears interest at 12% with any unpaid interest and principal at maturity bearing interest at 22%. The note could be converted at 58% of the lowest two trading prices during the twenty days prior to conversion. We initially recorded a discount on this note in the amount of $95,816 which included the $3,000 original issue discount and an initial derivative of $92,816 (see Derivative section below), but immediately amortized $17,816 to interest expense.

This note allowed the debtor certain prepayment rights, but incurring an interest penalty upon doing so. On February 14, 2018, we paid $94,923 to the creditor to pay this note in its entirety. During the period from issuance to retirement, we accrued $1,118 in interest and, upon paying the note, incurred additional interest expense of $15,805.

On February 1, 2018, we issued a promissory note in the amount of $60,000 and received $58,000 in proceeds, recording an original issue discount in the amount of $2,000. The note matures on February 1, 2019 and bears interest at 12%, with any unpaid principal and interest at maturity bearing interest at 18%. At any time 180 days after the issuance (or June 30, 2018) the lender may convert at a 40% discount of the three lowest trading prices during the previous twenty trading days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $68,286 including the $2,000 original issue discount and an initial derivative of $66,286 (see Derivative section below), but immediately amortized $8,286 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $31,197 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $4,634 of nominal interest. On August 6, 2018, we issued 4,566,210 shares converting $20,000 of the original principal to equity.

The Company has certain prepayment rights and may prepay any outstanding interest or principal at the following rates: 0-90 days, 135%; 91-180 days:150%.

On February 12, 2018, we issued a promissory note in the amount of $55,125 and received proceeds of $50,000, recording an original issue discount in the amount of $5,125. The note matures on February 5, 2019 and bears interest at 8%, with any unpaid principal and interest at maturity bearing interest at 16%. The lender may convert any outstanding principal and interest at 60% of the lowest trading price for twenty days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $72,868 including the $5,125 original issue discount and an initial derivative of $67,743 (see Derivative section below), but immediately amortized $17,743 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $36,874 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $2,850 of nominal interest.

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The Company has prepayment rights as follows:

Days	%
1-30		115	%
31-60		120	%
61-90		125	%
91-120		130	%
121-150		135	%
151-180		140	%

On August 28, 2018, we issued 1,515,152 shares to convert $5,000 of the original principal to equity.

On February 7,2018, we issued a convertible promissory note in the amount of $465,000. The first tranche of proceeds in the amount of $220,000 was received on February 12, 2018. The agreement calls for proceeds, original issue discounts and nominal liabilities as follows:

	Proceeds		Original Issue Discount		Total Nominal Liability
Tranche 1		220,000		41,563		261,563
Future tranche(s)		180,000		23,438		203,438
Total		400,000		65,000		465,000

The note matures nine months from the date of payment of each tranche (thus, the maturity date for the first tranche is November 9, 2018). The note bears interest at 6%, with any unpaid principal and interest at maturity bearing interest at 18%.

After 180 days, the lender has the right to convert any and all principal and interest to common stock at 65% of the lowest trading price over the twenty trading days prior to the notice of conversion. At any time during default, the lender may apply an additional market discount of 15%.

We originally recorded a discount on this note of $446,400 consisting of the original issue discount of $41,563, the initial derivative (see Derivative section below) of $277,337, and an equity incentive of $127,500 in the form of 15,000,000 shares which we valued on the fair value grant date. Of the $446,400 recorded as a discount, we immediately amortized $184,837 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $177,812 to interest expense and accrued $9,843 of nominal interest.

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On February 26, 2018, we issued a convertible promissory note in the amount of $100,000. We received the proceeds of $90,000 on the same date, recording an original issue discount of $10,000. The note matures on October 30, 2018 and bears interest at 12%, with any unpaid principal and interest at maturity bearing interest at 18%. The lender may convert any outstanding principal and interest at 60% of the average of the four lowest trading price for twenty five days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $173,273 consisting of the $10,000 original issue discount and an initial derivative of $163,273 (see Derivative section below), but immediately amortized $73,273 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $67,229 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $7,066 of nominal interest.

The Company has the option to prepay the outstanding interest at principal at any time prior to 180 days after issue, incurring the following additional interest expense: 0-90 days: 135%; 91-180 days 150%. After 180 days after issuance, no prepayment is allowed.

On March 9, 2018, we issued a convertible promissory note in the amount of $110,000. We received the proceeds of $100,000 on March 13, 2018, recording an original issue discount of $10,000. The note matures on March 5, 2019 and bears interest at 8%, with any unpaid principal and interest at maturity bearing interest at 16%. The lender may convert any outstanding principal and interest at 63% of lowest closing price for twenty trading days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $131,224 consisting of the $10,000 original issue discount and an initial derivative of $121,224 (see Derivative section below), but immediately amortized $21,224 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $38,430 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $5,567 of nominal interest.

The Company has the option to prepay the outstanding interest at principal at any time prior to 180 days after issue, incurring the following additional interest expense: 0-90 days: 115%; 91-180 days 125%.

During the nine months ended September 30, 2018, we made principal and interest payments on existing convertible notes of $78,798 and $6,109, respectively, to Eric McRae with whom we are engaged in a lawsuit (see Note 7).

Convertible notes payable (excluding related-party convertible notes which is discussed in Note 4) at September 30, 2018 and December 31, 2017 and their classification into long-term, short-term and in-default were as follows:

	09/30/18			12/31/17
All convertible promissory notes
Unpaid principal		1,310,581			960,311
Discounts		(236,522	)		(146,297	)
Convertible notes payable, net	$	1,074,060		$	814,014
Classified as short-term
Unpaid principal balance		1,239,257			825,013
Discounts		(236,522	)		(119,710	)
Convertible notes payable - short-term, net	$	1,002,735		$	705,303
Classified as long-term
Unpaid principal balance		27,825			32,000
Discounts		-			(26,587	)
Convertible notes payable - short-term, net	$	27,825		$	5,413
Classified as in default
Unpaid principal balance		43,500			103,298
Discounts		-			-
Convertible notes payable - short-term, net	$	43,500		$	103,298

14

Crypto-currency notes payable

On August 7, 2018, we issued a Crypto Exchange Promissory Note (“the Crypto Note”) in exchange for $100,000 in cash. The Crypto Note accrues interest at 4% until maturity which is 18 months from issue and 10% after maturity. The holder can convert unpaid principal and accrued interest into KLK20 tokens at any time at the rate of $0.25 per token. The holder may, for up to nine months after issuance, participate in a price guarantee: if the Company offers the tokens at less than $0.25 per token at any point for up to nine months after issuance, then the holder has the option of participating in the offer at the lower price.

Derivative liabilities

The above-referenced convertible promissory notes issued during the nine months ended September 30, 2018 were analyzed in accordance with EITF 07–05 and ASC 815. EITF 07–5, which is effective for fiscal years beginning after December 15, 2009, and interim periods within those fiscal years. The objective of EITF 07–5 is to provide guidance for determining whether an equity–linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception under Paragraph 11(a) of ASC 815 which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non–derivative instrument that falls within the scope of EITF 00–19 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non–derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. The EITF reached a consensus that would establish a two–step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument’s contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument’s settlement provisions.

Derivative financial instruments should be recorded as liabilities in the consolidated balance sheet and measured at fair value. For purposes of this engagement and report, we utilized fair value as the basis for formulating our opinion which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59–60.

The Company issued Subscription Notes from 2015 through 2017 in the United States and Australia which are convertible at discounted market rates and market prices based on the average of 5 trading day closing bids. The notes are convertible after 1 year from issuance; mature in 18 months from issuance; accrued at 5% interest; and a 10% default rate. These convertible notes have become tainted (“The Tainted Notes) as a result of the issuance of convertible promissory notes issued in the United States since there is a possibility (however remote) that the Company would not have enough shares in the Treasury to satisfy all possible conversions.

The Convertible Note derivatives were valued as of issuance; conversion; redemption/settlement; and the quarterly periods ended 3/31/18 and 9/30/18. The following assumptions were used for the valuation of the derivative liability related to the Notes:

· The stock price of $0.084 to $0.0048 in this period would fluctuate with the Company projected volatility.

· The notes convert with variable conversion prices based on the percentages of the low or average trades or bids over 20 to 25 trading days.

· The effective discounts rates estimated throughout the periods range from 35% to 42% with potentially an additional discount.

· The Holder would automatically convert the note before maturity if the registration was effective and the company was not in default.

· The projected annual volatility for each valuation period was based on the historic volatility of the company are 96.1% – 270.6% (annualized over the term remaining for each valuation).

· An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%.

· The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%.

· The Holder would automatically convert the note at the maximum of 2 times the conversion price or the stock price on the date of valuation.

· The Holder would automatically convert the note based on ownership or trading volume limitations.

We recorded the initial derivative as both a derivative liability and a debt discount (or initial reduction in carrying value of the debt). We then amortized the debt discounts using the Effective Interest Method which recognizes the cost of borrowing at a constant interest rate throughout the contractual term of the obligation. The effective interest rates on six instruments issued during the nine months ended September 30, 2018 range from 243% to 289%.

At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At September 30, 2018, we determined the fair value of these derivatives were $779,424.

Changes in outstanding derivative liabilities are as follows:

Balance, December 31, 2017	$	-
Changes due to new issuances		788,679
Changes due to extinguishments		(159,711	)
Changes due to adjustment to fair value		150,456
Balance, September 30, 2018	$	779,424

15

Note 7 – Litigation

Morgan Lawsuit

Background

The May 21, 2015 merger of the Company with Click Evidence, Inc. (“Click”) resulted in the transfer of Click’s assets and interests from Click to the Company and in Click becoming an asset-less entity inside the Company and then being disposed of on November 25, 2015. In the November 25, 2015 conveyance of the Click to the new owner, its name was changed to BH Trucking, Inc. (“BH”).

Filing and service

A first lawsuit was filed in the Superior Court of the State of Arizona, Pima County, by a former consultant to Click, Richard Morgan (“Morgan”). This lawsuit was served on December 2, 2015, against Click/BH, with the Company also named in the lawsuit, but not served by it or effectively made aware of it until 2017.

Allegation

The lawsuit claimed that the consultant’s agreement with Click/BH permitted him to recover a finder’s fee for the cashless stock swap that achieved the merger on May 21, 2015. The new owner of Click/BH, the only party served, declined to defend the lawsuit allowing it to go to default.

Default judgment

On December 16, 2016, the Court issued a default judgment for the plaintiff and against the defendants in the amount of $2,377,915. The Company believes that having not been served or made aware of the lawsuit, it is not a target of the judgment.

Second Lawsuit

On January 23, 2017, the Company and its CEO were served in a second lawsuit by Morgan alleging that the Company’s intellectual property assets that were transferred to it by Click under the May 21, 2015 merger of the Company with Click, were fraudulently removed from Click/BH, and seeks to have them returned to Click/BH.

Effect on the Financial Statements

During the three months ended September 30, 2017 we included in liabilities the default amount of $2,377,915 plus $4,459 interest at 4.5% from December 16, 2016, the date of the judgment, to December 31, 2016.

On August 29, 2017, the Court set aside the judgment in the First Lawsuit resulting in the removal of the liability of $2,377,915 and accrued interest of $4,459 at December 31, 2016, as well as the additional accrued interest recorded during 2017 of $44,294, for a total gain of $2,426,668.

On August 14, 2018, we settled this lawsuit in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation.

16

McRae Lawsuit

On October 7, 2017, Eric L. McRae of Sedgwick County, Kansas (“McRae”) filed a complaint against the Company in the United States District Court for the District of Kansas asserting a claim that Tautachrome breached a written agreement for the employment of McRae and seeking an award of damages in excess of $75,000.

Although Tautachrome refutes each and every allegation made by McRae in the complaint and intends to vigorously defend against it, we have accrued $49,000 to expense against this contingency.

Note 8 – Income Taxes

Deferred income taxes reflect the tax consequences on future years of differences between the tax bases:

	9/30/18			12/31/17
Net operating loss carry-forward		2,773,928			2,103,201
Deferred tax asset at 21% and 39%, respectively	$	582,525		$	820,248
Valuation allowance		(582,525	)		(820,248	)
Net future income taxes	$	-		$	-

In assessing the realizability of future tax assets, management considers whether it is more likely than not that some portion or all of the future tax assets will not be realized. The ultimate realization of future tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of future tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management has provided for a valuation allowance on all of its losses as there is no assurance that future tax benefits will be realized.

Our tax loss carry-forwards will begin to expire in 2030.

Note 9 – Subsequent Events

We issued 63,762,066 shares in conversion of debt.

Subsequent events were evaluated through the date of this report.

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Item 2 - Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

This report contains “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including: any projections of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. “Forward-looking statements” may include the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “plan” or “anticipate” and other similar words.

Although we believe that the expectations reflected in our “forward-looking statements” are reasonable, actual results could differ materially from those projected or assumed. Our future financial condition and results of operations, as well as any “forward-looking statements”, are subject to change and to inherent risks and uncertainties, such as those disclosed in this report. In light of the significant uncertainties inherent in the “forward-looking statements” included in this report, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. Except for its ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any “forward-looking statement”. Accordingly, the reader should not rely on “forward-looking statements”, because they are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those contemplated by the “forward-looking statements”.

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited financial statements, including the notes to those financial statements, included elsewhere in this report.

Overview

We are an early stage internet applications company, engaged in advanced technology and business development in the internet applications space. We have incurred general and administrative costs, marketing expenses and research and development costs since we commenced our current operations in May 2015, against no revenue.

The continuing operations of the Company are dependent upon our ability to raise adequate financing and to commence profitable operations in the future. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through loans from related parties. We believe that actions presently being taken to obtain additional funding may provide the opportunity for the Company to continue as a going concern. There is no guarantee, however, that the Company will be successful in achieving these objectives.

The Company intends to offer its cryptotokens, branded KLK, to the public in an offering to be registered under the Securities Act of 1933, for the purpose of raising up to $100 million in proceeds to further develop our KlickZie trusted imaging technology and our KlickZie high speed blockchain, branded the zChain, in support of a KLK-based crypto transaction ecosystem. The Company currently plans to effect the proposed offering through a KLK token website managed by the Company, in which purchases on the KLK token website will be paid for in Ethereum’s “ether” cryptocoins.

18

The proposed offering will take place as soon as practicable upon effectiveness of a registration statement to be filed with the SEC. We can give no assurance that the registration statement will ever be effective or that the proposed offering will take place as anticipated or at all.

Results of Operations - Nine months ended September 30, 2018 versus 2017

We had general and administrative expenses of $576,230 for the nine months ended September 30, 2018 versus $236,111 for the same period in 2017. The increase is mainly due to increases in legal fees in defending ourselves in the two lawsuits discussed in Note 7 to the financial statements, increases in development costs of our blockchain technology and iOA/Android application and integration, and certain fees associated with fund-raising.

As is more fully explained in Note 7 to the financial statements, for the nine months ended September 30, 2018, we had a loss on litigation on the Morgan lawsuit of $55,000 versus a gain of $2,372,668 during the same period in 2017.

Interest expense increased from $177,187 during the nine months ended September 30, 2017 to $1,003,299 during the same period in 2018. The increase is mostly due to debt discount amortization owing from the issuance of certain debt instruments (see Note 6 to the financial statements).

During the nine months ended September 30, 2018, we had a loss of $150,456 associated with the change in value of derivatives (see Note 6 to the financial statements). We had no such loss in the previous year.

During the nine months ended September 30, 2018, we had a foreign exchange gain of $60,187 versus a loss of $69,309 during the same period in 2017, all of which are currency translation effects resulting from exchange rate differences between the U.S. and Australian dollars.

Our net comprehensive loss of $1,724,798 and comprehensive income of $1,890,061 during the nine months ended September 30, 2018 and 2017 are a result of the above items.

Results of Operations - Three months ended September 30, 2018 versus 2017

We had general and administrative expenses of $149,307 for the three months ended September 30, 2018 versus $31,596 for the same period in 2017. The increase is mainly due to increases in legal fees in defending ourselves in the two lawsuits discussed in Note 7 to the financial statements, increases in development costs of our blockchain technology and iOA/Android application and integration, and certain fees associated with fund-raising.

As is more fully explained in Note 7 to the financial statements, for the three months ended September 30, 2018, we had a loss on litigation on the Morgan lawsuit of $55,000 versus a gain of $2,372,668 during the same period in 2017.

Interest expense increased from $46,712 during the three months ended September 30, 2017 to $264,730 during the same period in 2018. The increase is mostly due to debt discount amortization owing from the issuance of certain debt instruments (see Note 6 to the financial statements).

19

During the three months ended September 30, 2018, we had a gain of $539,589 associated with the change in value of derivatives (see Note 6 to the financial statements). We had no such gain in the previous year.

During the three months ended September 30, 2018, we had a foreign exchange gain of $14,791 versus a loss of $16,914 during the same period in 2017, all of which are currency translation effects resulting from exchange rate differences between the U.S. and Australian dollars.

Our net comprehensive income of $85,343 and $2,277,446 during the three months ended September 30, 2018 and 2017 are a result of the above items.

Liquidity and Capital Resources

Our financial statements have been prepared on a going concern basis that contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

At September 30, 2018, the Company had $33,837 in cash and liabilities totaling $2,646,795. We are currently seeking financing to attain our business goals, but there is no guarantee that we will obtain such financing or, upon obtaining it, that we will be able to invest in productive assets that will result in positive cash flows from operations.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, we had negative cash flows from operations, recurring losses, and negative working capital at September 30, 2018 and December 31, 2017. These conditions raise substantial doubt as to our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. Management intends to finance these deficits by making additional shareholder notes and seeking additional outside financing through either debt or sales of its common stock.

Plan of Operation

Our immediate term plans for operations is discussed extensively in Item 7 – Management’s Discussion and Analysis or Plan of Operation included in our Form 10-K as of December 31, 2017, filed with the Commission on April 2, 2018 and is herein incorporated by reference.

20

Item 3 - Quantitive And Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this item.

Item 4 - Controls and Procedures

Evaluation of Disclosure Controls and Procedures.

We maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based upon the evaluation of our officers and directors of our disclosure controls and procedures as of September 30, 2018, the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”), our Chief Executive Officer has concluded that as of the Evaluation Date that our disclosure controls and procedures were not effective such that the information relating to our company, required to be disclosed in our Securities and Exchange Commission reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to our management, including our Chief Executive Officer, to allow timely decisions regarding required disclosure. Our management concluded that our disclosure controls and procedures were not effective as a result of material weaknesses in our internal control over financial reporting. We are a small organization with only a few employees. Under these circumstances it is impossible to completely segregate duties. We do not expect our internal controls to be effective until such time as we are able to begin full operations and even then there are no assurances that our disclosure controls will be adequate in future periods.

Change In Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended September 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

21

PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

We may be involved from time to time in ordinary litigation, negotiation and settlement matters that will not have a material effect on our operations or finances. We are not aware of any pending or threatened litigation against us, other than that described in Notes 7 and 9, or our officers and directors in their capacity as such that could have a material impact on our operations or finances.

Item 1A – Risk Factors

We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

Item 2 – Unregistered Sale of Equity Securities

None

Item 3 – Defaults Upon Senior Securities

None

Item 4 – Mine Safety Disclosures

Not applicable.

Item 5 – Other Information

None

22

Item 6 - Exhibits

Exhibit No.	Description of Exhibit
3.1	Articles of Incorporation, as filed June 5, 2007 (included as Exhibit 3.1 to the Form SB-2 filed April 5, 2007, and incorporated herein by reference).
3.2	Bylaws (included as Exhibit 3.2 to the Form SB-2 filed April 5, 2007, and incorporated herein by reference).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101	Interactive data files pursuant to Rule 405 of Regulation S-T.

23

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Tautachrome, Inc
Date: November 14, 2018	By:	/s/ Dr. Jon Leonard
		Dr. Jon Leonard
		Chief Executive Officer

24

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Dr. Jon Leonard, Chief Executive Officer of TAUTACHROME, INC. (the “Registrant”) certify that:

1.	I have reviewed the report being filed on Form 10-Q.
2.	Based on my knowledge, the 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 the report;
3.	Based on my knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition, results of operations and cash flows of TAUTACHROME, INC. as of, and for, the periods presented in the report;
4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-a5(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-a5(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 the 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 our 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.

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

5. I have disclosed, based on our most recent evaluation, to the Tautachrome auditors and the audit committee of the board of directors (or persons fulfilling the equivalent function):

i.	All significant deficiencies in the design or operation of internal controls which could adversely affect Tautachrome’s ability to record, process, summarize and report financial data and have identified Tautachrome auditors any material weaknesses in internal controls; and
ii.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal controls; and

6. I have indicated in the report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: November 14, 2018	/s/ Dr. Jon Leonard
	Dr. Jon Leonard Chief Executive Officer

EX-32.1

EXHIBIT 32.1

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 TAUTACHROME, INC. (the "Company") on Form 10-Q as filed with the Securities and Exchange Commission on the date hereof (the "Report'), I, Dr. Jon Leonard, Chief Executive Officer of the Company, certify, pursuant to 18 USC section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(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 results of operations of the Company.

Date: November 14, 2018	/s/ Dr. Jon Leonard
	Dr. Jon Leonard Chief Executive Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 09, 2018
Document And Entity Information
Entity Registrant Name	TAUTACHROME INC.
Entity Central Index Key	0001389067
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Emerging Growth Company	false
Entity Small Business	true
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		18,273,585,46.
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2018

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 33,837	$ 9,726
Total current assets	33,837	9,726
TOTAL ASSETS	33,837	9,726
LIABILITIES
Accounts payable and accrued expenses	427,707	356,213
Accounts payable - related party	14,392	15,515
Loans from related parties	98,529	100,033
Convertible notes payable - related party	87,790	101,160
Short-term convertible notes payable, net	1,002,735	705,303
Notes payable in default	43,500	103,298
Short-term notes payable	15,893	17,191
Derivative liability	779,424
Court judgment liability	49,000	54,000
Total current liabilities	2,518,970	1,452,713
Long-term convertible notes payable, net	27,825	5,413
Crypto-currency notes payable	100,000
Total non-current liabilities	127,825	5,413
TOTAL LIABILITIES	2,646,795	1,458,126
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.00001 par value. Four billion shares authorized. 1,763,596,480 and 1,685,941,636 shares issued and outstanding at September 30, 2018 and December 31,	17,637	16,860
Additional paid in capital	4,295,209	3,787,675
Common stock payable	75,115	23,186
Accumulated deficit	(7,078,026)	(5,293,041)
Effect of foreign currency exchange	75,727	15,540
TOTAL STOCKHOLDERS' EQUITY	(2,612,958)	(1,448,400)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	33,837	9,726
Preferred Stock Series D
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock value	$ 1,380	$ 1,380

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	4,000,000,000	4,000,000,000
Common stock, shares issued	1,763,596,480	1,685,941,636
Common stock, shares outstanding	1,763,596,480	1,685,941,636
Preferred Stock Series D
STOCKHOLDERS' DEFICIT
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	13,795,104	13,795,104
Preferred stock, shares issued	13,795,104	13,795,104
Preferred stock, shares outstanding	13,795,104	13,795,104

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
OPERATING EXPENSES
General and administrative	$ 149,307	$ 31,596	$ 576,230	$ 236,111
Total operating expenses	149,307	31,596	576,230	236,111
Operating loss	(149,307)	(31,596)	(576,230)	(236,111)
OTHER INCOME / (EXPENSE)
Gain or (loss) on litigation	(55,000)	2,372,668	(55,000)	2,372,668
Interest expense	(264,730)	(46,712)	(1,003,299)	(177,187)
Change in value of derivatives	539,589		(150,456)
Total other	219,859	2,325,956	(1,208,755)	2,195,481
Net income or (loss)	70,552	2,294,360	(1,784,985)	1,959,370
OTHER COMPREHENSIVE INCOME (LOSS)
Effect of foreign currency exchange	14,791	(16,914)	60,187	(69,309)
Net comprehensive income or (loss)	$ 85,343	$ 2,277,446	$ (1,724,798)	$ 1,890,061
Net (loss) or income per common share
Basic	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average shares outstanding
Basic	1,736,404,988	1,687,982,960	1,712,011,307	1,684,825,134
Diluted	1,952,782,242	1,866,629,731	1,712,011,307	1,828,761,881

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CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY / (DEFICIT) (Unaudited) - USD ($)	Common Stock	Preferred Stock Series D	Additional Paid-In Capital	Stock Payable Member	Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2016	1,672,789,717	13,795,104
Beginning Balance, Amount at Dec. 31, 2016	$ 16,728	$ 1,380	$ 3,421,595	$ 10,586	$ 82,748	$ (7,081,154)	$ (3,548,117)
Shares issued for conversion of debt, Shares	8,493,243
Shares issued for conversion of debt, Amount	$ 85		54,080				54,165
Shares issued for services, Shares	6,700,000
Shares issued for services, Amount	$ 67		84,262				84,329
Shares retired from consultant, Shares	(2,041,324)
Shares retired from consultant, Amount	$ (20)		20
Shares earned by consultant				12,600			12,600
Beneficial conversion feature of convertible notes			209,040				209,040
Imputed interest			18,678				18,678
Effect of foreign currency exchange					(67,208)		(67,208)
Net Income/Loss						1,788,113	1,788,113
Ending Balance, Shares at Dec. 31, 2017	1,685,941,636	13,795,104
Ending Balance, Amount at Dec. 31, 2017	$ 16,860	$ 1,380	3,787,675	23,186	15,540	(5,293,041)	(1,448,400)
Shares issued with convertible note payable, Shares	15,000,000
Shares issued with convertible note payable, Amount	$ 150		127,350				127,350
Shares issued for conversion of debt, Shares	52,654,844
Shares issued for conversion of debt, Amount	$ 527		146,804				147,331
Shares issued to settle lawsuit, Shares	10,000,000
Shares issued to settle lawsuit, Amount	$ 100		59,900				60,000
Derivative associated with early debt retirement			159,711				159,711
Shares earned by consultant				51,929			51,929
Imputed interest			13,769				13,769
Effect of foreign currency exchange					60,187		60,187
Net Income/Loss						(1,784,985)	(1,784,985)
Ending Balance, Shares at Sep. 30, 2018	1,763,596,480	13,795,104
Ending Balance, Amount at Sep. 30, 2018	$ 17,637	$ 1,380	$ 4,295,209	$ 75,115	$ 75,727	$ (7,078,026)	$ (2,612,958)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,784,985)	$ 1,959,370
Stock-based compensation	51,929	84,329
(Gain) or loss on litigation	55,000	(2,372,668)
Change in fair value of derivative	150,456
Amortization of discounts on notes payable	898,104	71,743
Imputed interest	13,769	11,457
Changes in operating assets and liabilities:
Accounts payable and accrued expenses	49,319	128,858
Accounts payable - related party		494
Net cash used in operating activities	(566,408)	(116,417)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable	603,000	208,040
Proceeds from crypto-currency notes payable	100,000
Principal payments on notes payable	(159,298)	(30,693)
Proceeds from related-party loan	1,930	11,153
Principal payments on related-party loans	(15,300)	(1,000)
Net cash provided by financing activities	530,332	187,500
Effect of exchange rate changes on cash and cash equivalents	60,187	(69,309)
Net increase/(decrease) in cash	24,111	1,774
Cash and equivalents - beginning of period	9,726	1,850
Cash and equivalents - end of period	33,837	3,624
SUPPLEMENTARY INFORMATION
Cash paid for interest	7,505	627
Cash paid for income taxes
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS
Discounts on convertible notes	664,688	204,040
Conversion of debt to common stock	147,358	54,167
Settlement of derivative liability	159,711
Shares issued for settlement of lawsuit	$ 5,000

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Organization and Nature of Business

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 1 - Organization and Nature of Business

History

Tautachrome, Inc. (formerly Roadships Holdings, Inc.) was formed in Delaware on June 5, 2006 as Caddystats, Inc. and hereinafter collectively referred to as “Tautachrome”, the “Company”, “we’ or “us”).

The Company adopted the accounting acquirer’s year end, December 31.

Our Business

Tautachrome operates in the internet applications space, a large space we believe to be uniquely able to make possible fast growing and novel business. The iPhone, Google, Facebook, Amazon, Twitter, Android, Uber and numerous other examples are reminders of the ability of the internet applications space to surprise us with new business universes out of nowhere. A recent surprise was the arrival in the internet applications space of blockchain technology, which is empowering enterprises of all sizes to create ecosystems of trade based on self-introduced and globally useable cryptocurrencies. The arrival of blockchain technology has added a significant new and leading element to Tautachrome’s business plans and activities.

Tautachrome is currently pursuing two main avenues of business activity based on our patented imaging technology (branded “KlickZie” technology):

1.	KlickZie’s blockchain cryptocurrency based ecosystem: our recently added activity to create our own KlickZie blockchain and cryptocurrency to incentivize user download of KlickZie products and to provide a crypto based monetary stream to the Company, and
2.	KlickZie technology-based business: our longstanding flagship activity to develop and monetize downloadable apps based on our patented KlickZie trusted imaging technology and based on our patented trusted image-based social interactions using the pictures and videos that smartphone users generate on the web using their KlickZie imaging app.

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 2 - Basis of Presentation and Summary of Significant Accounting Policies

Consolidated Financial Statements

In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending September 30, 2018. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2017, as reported in Form 10-K filed with the Securities and Exchange Commission.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Principles of Consolidation

Our consolidated financial statements include the accounts of Tautachrome, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation.

Long-Lived Assets, Intangible Assets and Impairment

In accordance with U.S. GAAP, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Loss Per Share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the nine months ended September 30, 2018 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU 201701, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements.

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 201711, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 47020, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

The adoption of these standards is not expected to have a material impact on our financial position or results of operations.

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Going Concern

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 3 - Going Concern

We have not begun our core operations in the technology industry and have not yet acquired the assets to enter this markets and we will require additional capital to do so. There is no guarantee that we will acquire the capital to procure the assets to enter this market or, upon doing so, that we will generate positive cash flows from operations. Substantial doubt exists as to Tautachrome’s ability to continue as a going concern. No adjustment has been made to these financial statements for the outcome of this uncertainty.

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Related Party Transactions

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 4 - Related Party Transactions

For the year ended December 31, 2017, we had the following transactions with the Twenty Second Trust (the “Trust”), the trustee of whom is Sonny Nugent, the son of our major shareholder and former Chief Executive Officer, Micheal Nugent:

· We accrued $4,924 in interest payable to the Trust and paid $0 of interest for both years.

· The outstanding balance at December 31, 2017 to the 22^nd Trust was $100,033 and $16,012 for principal and interest, respectively, after adjustments for foreign exchange effect.

For the nine months ended September 30, 2018, we accrued $3,679 to the 22^nd Trust. At September 30, 2018, we owed $98,529 and $19,563 in principal and interest to the Trust, respectively.

According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%.

Convertible note payable, related party

On May 5, 2013 (and on August 8, 2013 with an enlargement amendment) the Company entered into a no interest demand-loan agreement with our current Chairman, Jon N. Leonard under which the Company may borrow such money from Jon as Jon in his sole discretion is willing to loan.

The terms of the note provide that at the Company’s option, the Company may make repayments in stock, at a fixed share price of $1.00 per share. Also, because this loan is a no-interest loan, an imputed interest expense of $5,834 was recorded as additional paid-in capital for the nine months ended September 30, 2018. The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed.

During the nine months ended September 30, 2018, Dr. Leonard paid $1,930 of company expenses and this amount is included in our loan to him. Also during the nine months ended September 30, 2018, we repaid Dr. Leonard $15,300 of principal on his loan. At September 30, 2018, we owed Dr. Leonard $87,790.

In addition, at September 30, 2018, we owed $14,392 of related-party accounts payable, mostly arising from Company expenses paid by related parties.

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Capital

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 5 - Capital

During the year ended December 31, 2017, we issued 8,493,243 common shares to convert $49,249 of convertible notes payable, and $4,916 in accrued interest, to common stock.

Also during the year ended December 31, 2017, we issued 6,700,000 common shares to four consultants for services. We valued the shares at their grant date fair values, charging general and administrative expenses with $84,329.

On October 5, 2017, we received 2,041,324 shares back into the treasury from a consultant. These shares were gifted to the consultant by a major shareholder. We recorded the receipt of these shares at par value.

On October 16, 2017, we signed a consulting agreement to aide us in developing our blockchain-based cryptotokens in five stages, with 700,000 shares accruing at the completion of each stage. Phase 1 was completed on December 12, 2017. We therefore accrued those 700,000 shares at the date they were earned, charging general and administrative expense $12,600. Additionally, Phases 2,3,4 and 5 were completed on January 16, 2018, February 26, 2018, March 8, 2018 and June 6, 2018, respectively. During the nine months ended September 30, 2018, we accrued an additional 2,800,000 shares, charging general and administrative expenses with $33,460.

During the nine months ended September 30, 2018, we issued 52,654,844 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $137,000 and $10,328 of principal and interest, respectively. As part of these conversions, we retired $147,328 of associated derivative liabilities which we included in Additional Paid in Capital.

On August 14, 2018, we settled our lawsuit with Richard Morgan (see Note 7) in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation.

Also during the nine months ended September 30, 2018, we issued 15,000,000 shares as an equity incentive to a creditor (see Note 6) . We valued the shares at their grant-date fair values and recorded a discount on that debt of $127,500.

Preferred Stock

On September 29, 2016, the Company’s principal shareholders (“Principals”), Dr. Jon N. Leonard, Micheal P. Nugent, and Matthew W. Staker, offered to retire 1,379,510,380 of their common shares in exchange for a new series of non-trading preferred shares.

On October 5, 2016, the Board of Directors voted to accept the share retirement offer, and on October 20, 2016, the Company filed a Certificate of Designations with the State of Delaware creating 13,795,104 shares of Series D Preferred Stock (the “Preferred Shares”) to effect the exchange.

Share Exchange ratio and Preservation of Voting Rights

In the share exchange, each principal received 1 Preferred Share for each 100 common shares retired. Each share of Preferred Shares entitles the holder to 100 votes (and each 1/100^th of a Preferred Share entitles the holder to one vote).

Conversion Rights

A holder may convert Preferred Shares to common under the following conditions:

Automatic conversion – each Preferred Share automatically converts to 100 common shares upon the earlier of

· The end of 5 years (5:00 PM EST, October 5, 2021), or

· A change of control

Optional conversion - After October 5, 2017, each holder may convert each share into 100 shares of common stock immediately following a period of ten consecutive trading days during which the average closing or last sale price exceeds $3.00 per share. Also, each holder may convert into 110 shares of common stock at any time that the shares are listed on a National exchange (for example, the NYSE or NASDAQ).

Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increase Additional Paid in Capital. For the nine months ended September 30, 2018, we imputed $13,769 of such interest.

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Debt

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 6 - Debt

Loans from related parties

As is discussed in Note 4, at September 30, 2018 we owed $205,882 in related-party debts consisting of $98,529 and $19,563 in unpaid principal and interest, respectively, to the 22^nd Trust and $87,790 owed to our CEO, Dr. Jon Leonard.

Convertible notes payable

During the year ended December 31, 2017 we issued seven convertible promissory notes in the aggregate amount of $213,040, receiving proceeds therefrom of the same amount. These convertible notes can convert to common stock at various prices. We evaluated these convertible notes for beneficial conversion features and calculated a collective value of $209,040 which we are accounting for as debt discounts.

During the year ended December 31, 2017, we amortized $138,668 of debt discounts to interest expense.

Also during the year ended December 31, 2017, we converted two outstanding convertible notes payable to common stock, reducing principal owed by $49,249.

At December 31, 2017, $95,798 of our convertible notes payable were in default.

On December 27, 2017, we issued a convertible promissory note which was not funded until January 2, 2018. The note nominal amount was $78,000 and we received proceeds of $75,000, recording an original issue discount in the amount of $3,000. The note matures on September 30, 2018 and bears interest at 12% with any unpaid interest and principal at maturity bearing interest at 22%. The note could be converted at 58% of the lowest two trading prices during the twenty days prior to conversion. We initially recorded a discount on this note in the amount of $95,816 which included the $3,000 original issue discount and an initial derivative of $92,816 (see Derivative section below), but immediately amortized $17,816 to interest expense.

This note allowed the debtor certain prepayment rights, but incurring an interest penalty upon doing so. On February 14, 2018, we paid $94,923 to the creditor to pay this note in its entirety. During the period from issuance to retirement, we accrued $1,118 in interest and, upon paying the note, incurred additional interest expense of $15,805.

On February 1, 2018, we issued a promissory note in the amount of $60,000 and received $58,000 in proceeds, recording an original issue discount in the amount of $2,000. The note matures on February 1, 2019 and bears interest at 12%, with any unpaid principal and interest at maturity bearing interest at 18%. At any time 180 days after the issuance (or June 30, 2018) the lender may convert at a 40% discount of the three lowest trading prices during the previous twenty trading days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $68,286 including the $2,000 original issue discount and an initial derivative of $66,286 (see Derivative section below), but immediately amortized $8,286 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $31,197 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $4,634 of nominal interest. On August 6, 2018, we issued 4,566,210 shares converting $20,000 of the original principal to equity.

The Company has certain prepayment rights and may prepay any outstanding interest or principal at the following rates: 0-90 days, 135%; 91-180 days:150%.

On February 12, 2018, we issued a promissory note in the amount of $55,125 and received proceeds of $50,000, recording an original issue discount in the amount of $5,125. The note matures on February 5, 2019 and bears interest at 8%, with any unpaid principal and interest at maturity bearing interest at 16%. The lender may convert any outstanding principal and interest at 60% of the lowest trading price for twenty days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $72,868 including the $5,125 original issue discount and an initial derivative of $67,743 (see Derivative section below), but immediately amortized $17,743 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $36,874 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $2,850 of nominal interest.

The Company has prepayment rights as follows:

Days	%
1-30		115	%
31-60		120	%
61-90		125	%
91-120		130	%
121-150		135	%
151-180		140	%

On August 28, 2018, we issued 1,515,152 shares to convert $5,000 of the original principal to equity.

On February 7,2018, we issued a convertible promissory note in the amount of $465,000. The first tranche of proceeds in the amount of $220,000 was received on February 12, 2018. The agreement calls for proceeds, original issue discounts and nominal liabilities as follows:

	Proceeds		Original Issue Discount		Total Nominal Liability
Tranche 1		220,000		41,563		261,563
Future tranche(s)		180,000		23,438		203,438
Total		400,000		65,000		465,000

The note matures nine months from the date of payment of each tranche (thus, the maturity date for the first tranche is November 9, 2018). The note bears interest at 6%, with any unpaid principal and interest at maturity bearing interest at 18%.

After 180 days, the lender has the right to convert any and all principal and interest to common stock at 65% of the lowest trading price over the twenty trading days prior to the notice of conversion. At any time during default, the lender may apply an additional market discount of 15%.

We originally recorded a discount on this note of $446,400 consisting of the original issue discount of $41,563, the initial derivative (see Derivative section below) of $277,337, and an equity incentive of $127,500 in the form of 15,000,000 shares which we valued on the fair value grant date. Of the $446,400 recorded as a discount, we immediately amortized $184,837 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $177,812 to interest expense and accrued $9,843 of nominal interest.

On February 26, 2018, we issued a convertible promissory note in the amount of $100,000. We received the proceeds of $90,000 on the same date, recording an original issue discount of $10,000. The note matures on October 30, 2018 and bears interest at 12%, with any unpaid principal and interest at maturity bearing interest at 18%. The lender may convert any outstanding principal and interest at 60% of the average of the four lowest trading price for twenty five days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $173,273 consisting of the $10,000 original issue discount and an initial derivative of $163,273 (see Derivative section below), but immediately amortized $73,273 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $67,229 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $7,066 of nominal interest.

The Company has the option to prepay the outstanding interest at principal at any time prior to 180 days after issue, incurring the following additional interest expense: 0-90 days: 135%; 91-180 days 150%. After 180 days after issuance, no prepayment is allowed.

On March 9, 2018, we issued a convertible promissory note in the amount of $110,000. We received the proceeds of $100,000 on March 13, 2018, recording an original issue discount of $10,000. The note matures on March 5, 2019 and bears interest at 8%, with any unpaid principal and interest at maturity bearing interest at 16%. The lender may convert any outstanding principal and interest at 63% of lowest closing price for twenty trading days prior to the notice of conversion. We initially recorded a discount on this note in the amount of $131,224 consisting of the $10,000 original issue discount and an initial derivative of $121,224 (see Derivative section below), but immediately amortized $21,224 to interest expense. During the nine months ended September 30, 2018, we amortized an additional $38,430 of this discount to interest expense. Additionally, during the nine months ended September 30, 2018, we accrued $5,567 of nominal interest.

The Company has the option to prepay the outstanding interest at principal at any time prior to 180 days after issue, incurring the following additional interest expense: 0-90 days: 115%; 91-180 days 125%.

During the nine months ended September 30, 2018, we made principal and interest payments on existing convertible notes of $78,798 and $6,109, respectively, to Eric McRae with whom we are engaged in a lawsuit (see Note 7).

Convertible notes payable (excluding related-party convertible notes which is discussed in Note 4) at September 30, 2018 and December 31, 2017 and their classification into long-term, short-term and in-default were as follows:

	09/30/18			12/31/17
All convertible promissory notes
Unpaid principal		1,310,581			960,311
Discounts		(236,522	)		(146,297	)
Convertible notes payable, net	$	1,074,060		$	814,014
Classified as short-term
Unpaid principal balance		1,239,257			825,013
Discounts		(236,522	)		(119,710	)
Convertible notes payable - short-term, net	$	1,002,735		$	705,303
Classified as long-term
Unpaid principal balance		27,825			32,000
Discounts		-			(26,587	)
Convertible notes payable - short-term, net	$	27,825		$	5,413
Classified as in default
Unpaid principal balance		43,500			103,298
Discounts		-			-
Convertible notes payable - short-term, net	$	43,500		$	103,298

Crypto-currency notes payable

On August 7, 2018, we issued a Crypto Exchange Promissory Note (“the Crypto Note”) in exchange for $100,000 in cash. The Crypto Note accrues interest at 4% until maturity which is 18 months from issue and 10% after maturity. The holder can convert unpaid principal and accrued interest into KLK20 tokens at any time at the rate of $0.25 per token. The holder may, for up to nine months after issuance, participate in a price guarantee: if the Company offers the tokens at less than $0.25 per token at any point for up to nine months after issuance, then the holder has the option of participating in the offer at the lower price.

Derivative liabilities

The above-referenced convertible promissory notes issued during the nine months ended September 30, 2018 were analyzed in accordance with EITF 07–05 and ASC 815. EITF 07–5, which is effective for fiscal years beginning after December 15, 2009, and interim periods within those fiscal years. The objective of EITF 07–5 is to provide guidance for determining whether an equity–linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception under Paragraph 11(a) of ASC 815 which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non–derivative instrument that falls within the scope of EITF 00–19 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non–derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. The EITF reached a consensus that would establish a two–step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument’s contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument’s settlement provisions.

Derivative financial instruments should be recorded as liabilities in the consolidated balance sheet and measured at fair value. For purposes of this engagement and report, we utilized fair value as the basis for formulating our opinion which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59–60.

The Company issued Subscription Notes from 2015 through 2017 in the United States and Australia which are convertible at discounted market rates and market prices based on the average of 5 trading day closing bids. The notes are convertible after 1 year from issuance; mature in 18 months from issuance; accrued at 5% interest; and a 10% default rate. These convertible notes have become tainted (“The Tainted Notes) as a result of the issuance of convertible promissory notes issued in the United States since there is a possibility (however remote) that the Company would not have enough shares in the Treasury to satisfy all possible conversions.

The Convertible Note derivatives were valued as of issuance; conversion; redemption/settlement; and the quarterly periods ended 3/31/18 and 9/30/18. The following assumptions were used for the valuation of the derivative liability related to the Notes:

· The stock price of $0.084 to $0.0048 in this period would fluctuate with the Company projected volatility.

· The notes convert with variable conversion prices based on the percentages of the low or average trades or bids over 20 to 25 trading days.

· The effective discounts rates estimated throughout the periods range from 35% to 42% with potentially an additional discount.

· The Holder would automatically convert the note before maturity if the registration was effective and the company was not in default.

· The projected annual volatility for each valuation period was based on the historic volatility of the company are 96.1% – 270.6% (annualized over the term remaining for each valuation).

· An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%.

· The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%.

· The Holder would automatically convert the note at the maximum of 2 times the conversion price or the stock price on the date of valuation.

· The Holder would automatically convert the note based on ownership or trading volume limitations.

We recorded the initial derivative as both a derivative liability and a debt discount (or initial reduction in carrying value of the debt). We then amortized the debt discounts using the Effective Interest Method which recognizes the cost of borrowing at a constant interest rate throughout the contractual term of the obligation. The effective interest rates on six instruments issued during the nine months ended September 30, 2018 range from 243% to 289%.

At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At September 30, 2018, we determined the fair value of these derivatives were $779,424.

Changes in outstanding derivative liabilities are as follows:

Balance, December 31, 2017	$	-
Changes due to new issuances		788,679
Changes due to extinguishments		(159,711	)
Changes due to adjustment to fair value		150,456
Balance, September 30, 2018	$	779,424

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Litigation

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 7 - Litigation

Morgan Lawsuit

Background

The May 21, 2015 merger of the Company with Click Evidence, Inc. (“Click”) resulted in the transfer of Click’s assets and interests from Click to the Company and in Click becoming an asset-less entity inside the Company and then being disposed of on November 25, 2015. In the November 25, 2015 conveyance of the Click to the new owner, its name was changed to BH Trucking, Inc. (“BH”).

Filing and service

A first lawsuit was filed in the Superior Court of the State of Arizona, Pima County, by a former consultant to Click, Richard Morgan (“Morgan”). This lawsuit was served on December 2, 2015, against Click/BH, with the Company also named in the lawsuit, but not served by it or effectively made aware of it until 2017.

Allegation

The lawsuit claimed that the consultant’s agreement with Click/BH permitted him to recover a finder’s fee for the cashless stock swap that achieved the merger on May 21, 2015. The new owner of Click/BH, the only party served, declined to defend the lawsuit allowing it to go to default.

Default judgment

On December 16, 2016, the Court issued a default judgment for the plaintiff and against the defendants in the amount of $2,377,915. The Company believes that having not been served or made aware of the lawsuit, it is not a target of the judgment.

Second Lawsuit

On January 23, 2017, the Company and its CEO were served in a second lawsuit by Morgan alleging that the Company’s intellectual property assets that were transferred to it by Click under the May 21, 2015 merger of the Company with Click, were fraudulently removed from Click/BH, and seeks to have them returned to Click/BH.

Effect on the Financial Statements

During the three months ended September 30, 2017 we included in liabilities the default amount of $2,377,915 plus $4,459 interest at 4.5% from December 16, 2016, the date of the judgment, to December 31, 2016.

On August 29, 2017, the Court set aside the judgment in the First Lawsuit resulting in the removal of the liability of $2,377,915 and accrued interest of $4,459 at December 31, 2016, as well as the additional accrued interest recorded during 2017 of $44,294, for a total gain of $2,426,668.

On August 14, 2018, we settled this lawsuit in full by issuing 10 million shares. We valued the shares at their grant date fair values, removing the judgment liability of $5,000 and recording a $55,000 loss on litigation.

McRae Lawsuit

On October 7, 2017, Eric L. McRae of Sedgwick County, Kansas (“McRae”) filed a complaint against the Company in the United States District Court for the District of Kansas asserting a claim that Tautachrome breached a written agreement for the employment of McRae and seeking an award of damages in excess of $75,000.

Although Tautachrome refutes each and every allegation made by McRae in the complaint and intends to vigorously defend against it, we have accrued $49,000 to expense against this contingency.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 8 - Income Taxes

Deferred income taxes reflect the tax consequences on future years of differences between the tax bases:

	9/30/18			12/31/17
Net operating loss carry-forward		2,773,928			2,103,201
Deferred tax asset at 21% and 39%, respectively	$	582,525		$	820,248
Valuation allowance		(582,525	)		(820,248	)
Net future income taxes	$	-		$	-

In assessing the realizability of future tax assets, management considers whether it is more likely than not that some portion or all of the future tax assets will not be realized. The ultimate realization of future tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of future tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Management has provided for a valuation allowance on all of its losses as there is no assurance that future tax benefits will be realized.

Our tax loss carry-forwards will begin to expire in 2030.

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Subsequent Events

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 9 - Subsequent Events

We issued 63,762,066 shares in conversion of debt.

Subsequent events were evaluated through the date of this report.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Basis Of Presentation And Summary Of Significant Accounting Policies

Consolidated Financial Statements

In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending September 30, 2018. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended December 31, 2017, as reported in Form 10-K filed with the Securities and Exchange Commission.

Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.

Principles of Consolidation

Our consolidated financial statements include the accounts of Tautachrome, Inc. and all majority-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation.

Long-Lived Assets, Intangible Assets and Impairment

In accordance with U.S. GAAP, the Company’s long-lived assets and amortizable intangible assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company assesses the recoverability of such assets by determining whether their carrying value can be recovered through undiscounted future operating cash flows, including its estimates of revenue driven by assumed market segment share and estimated costs. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Net Loss Per Share

Basic and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share is the same for the nine months ended September 30, 2018 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU 201701, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements.

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 201711, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 47020, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

The adoption of these standards is not expected to have a material impact on our financial position or results of operations.

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Tables

Schedule of prepayment rights

Days	%
1-30		115	%
31-60		120	%
61-90		125	%
91-120		130	%
121-150		135	%
151-180		140	%

Summary of proceeds, original issue discounts and nominal liabilities

	Proceeds		Original Issue Discount		Total Nominal Liability
Tranche 1		220,000		41,563		261,563
Future tranche(s)		180,000		23,438		203,438
Total		400,000		65,000		465,000

Summary of convertible notes payable

	09/30/18			12/31/17
All convertible promissory notes
Unpaid principal		1,310,581			960,311
Discounts		(236,522	)		(146,297	)
Convertible notes payable, net	$	1,074,060		$	814,014
Classified as short-term
Unpaid principal balance		1,239,257			825,013
Discounts		(236,522	)		(119,710	)
Convertible notes payable - short-term, net	$	1,002,735		$	705,303
Classified as long-term
Unpaid principal balance		27,825			32,000
Discounts		-			(26,587	)
Convertible notes payable - short-term, net	$	27,825		$	5,413
Classified as in default
Unpaid principal balance		43,500			103,298
Discounts		-			-
Convertible notes payable - short-term, net	$	43,500		$	103,298

Changes in outstanding derivative liabilities

Balance, December 31, 2017	$	-
Changes due to new issuances		788,679
Changes due to extinguishments		(159,711	)
Changes due to adjustment to fair value		150,456
Balance, September 30, 2018	$	779,424

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Taxes

Summary of deferred income taxes

	9/30/18			12/31/17
Net operating loss carry-forward		2,773,928			2,103,201
Deferred tax asset at 21% and 39%, respectively	$	582,525		$	820,248
Valuation allowance		(582,525	)		(820,248	)
Net future income taxes	$	-		$	-

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Organization and Nature of Business (Details Narrative)	9 Months Ended
	Sep. 30, 2018
Organization And Nature Of Business
State of incorporation	Delaware
Date of incorporation	Jun. 05, 2006

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Related Party Transactions (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Exercise price	$ 1.00
Adjustment to additional paid in capital, Imputed interest	$ 5,834
Proceeds from related-party loan	1,930	$ 11,153
Convertible notes payable - related party	87,790		$ 101,160
Principal payments on related-party loans	(15,300)	$ (1,000)
Accounts payable - related party	14,392		15,515
Twenty Second Trust [Member]
Accrued interest	19,563		4,924
Accrued expenses	3,679
Interest paid	0		0
Outstanding principal amount	98,529		100,033
Loans from related parties	205,882
Outstanding interest			$ 16,012
Interest payment default description			<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%.</font></p>
Dr. Leonard [Member]
Proceeds from related-party loan	1,930
Convertible notes payable - related party	87,790
Principal payments on related-party loans	$ (15,300)

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Capital (Details Narrative)						1 Months Ended				3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 14, 2018 USD ($) shares	Aug. 06, 2018 shares	Feb. 07, 2018 USD ($) shares	Dec. 12, 2017 USD ($) shares	Oct. 05, 2017 shares	Aug. 28, 2018 shares	Aug. 29, 2017 USD ($)	Oct. 20, 2016 shares	Sep. 29, 2016	Sep. 30, 2018 USD ($) shares	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) shares	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) Integer shares	Mar. 09, 2018 USD ($)	Feb. 26, 2018 USD ($)	Dec. 27, 2017 USD ($)
Imputed interest												$ 13,769	$ 11,457	$ 18,678
Common stock shares issued for incentive to creditor | shares												15,000,000
Debt discount										$ 127,500		$ 127,500
Description for retirement of Preferred stock									<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company’s principal shareholders (“Principals”), Dr. Jon N. Leonard, Micheal P. Nugent, and Matthew W. Staker, offered to retire 1,379,510,380 of their common shares in exchange for a new series of non-trading preferred shares</font></p>
Description for share exchange ratio and voting rights								In the share exchange, each principal received 1 Preferred Share for each 100 common shares retired Each share of Preferred Shares entitles the holder to 100 votes (and each 1/100th of a Preferred Share entitles the holder to one vote)
Convertible preferred stock maturity period								5 years
Terms of optional conversion of preferred stock								Optional conversion - After October 5, 2017, each holder may convert each share into 100 shares of common stock immediately following a period of ten consecutive trading days during which the average closing or last sale price exceeds $3.00 per share. Also, each holder may convert into 110 shares of common stock at any time that the shares are listed on a National exchange (for example, the NYSE or NASDAQ)
General and administrative expense										149,307	$ 31,596	576,230	236,111
Shares issued for settlement of lawsuit	$ 5,000											5,000
Gain or (loss) on litigation	$ (55,000)						$ 2,426,668			$ (55,000)	$ 2,372,668	$ (55,000)	$ 2,372,668
Shares issued for settlement | shares	10,000,000											10,000,000
Preferred Stock Series D
Preferred stock shares authorized, designated shares | shares								13,795,104		13,795,104		13,795,104		13,795,104
Preferred stock coversion ratio | shares								100
Convertible promissory note [Member]
Common stock shares issued for incentive to creditor | shares			15,000,000
Debt discount			$ 446,400												$ 131,224	$ 173,273	$ 95,816
Debt conversion converted instrument shares issued | shares		4,566,210				1,515,152						52,654,844		8,493,243
Principal reduction on debt conversion original amount												$ 137,000		$ 49,249
Reduction on debt conversion converted instrument, Accrued interest												1,155		$ 4,916
Decrease in derivative liabilities												$ 147,328
Consultant [Member]
Common stock shares issued for services | shares														6,700,000
Common stock value issued for services charged to general and administrative expenses														$ 84,329
Number of consultants | Integer														4
Treasury stock, shares acquired | shares					2,041,324
Consulting Agreement [Member]
Earned Shares, accrued | shares				700,000								2,800,000
General and administrative expense				$ 12,600								$ 33,460

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Debt (Details)	9 Months Ended
	Sep. 30, 2018
1-30 Days [Member]
Prepayment interest rate	115.00%
31-60 Days [Member]
Prepayment interest rate	120.00%
61-90 Days [Member]
Prepayment interest rate	125.00%
91-120 Days [Member]
Prepayment interest rate	130.00%
121-150 Days [Member]
Prepayment interest rate	135.00%
151-180 Days [Member]
Prepayment interest rate	140.00%

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Debt (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Proceeds	$ 603,000	$ 208,040
Tranche 1 [Member]
Proceeds	220,000
Original Issue Discount	41,563
Total Nominal Liability	261,563
Future Tranche [Member]
Proceeds	180,000
Original Issue Discount	23,438
Total Nominal Liability	203,438
Total [Member]
Proceeds	400,000
Original Issue Discount	65,000
Total Nominal Liability	$ 465,000

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Debt (Details 2) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Classified as short-term [Member]
Unpaid principal	$ 1,239,257	$ 825,013
Discounts	(236,522)	(119,710)
Convertible notes payable	1,002,735	705,303
Classified as long-term [Member]
Unpaid principal	27,825	32,000
Discounts		(26,587)
Convertible notes payable	27,825	5,413
Classified as in default [Member]
Unpaid principal	43,500	103,298
Discounts
Convertible notes payable	43,500	103,298
All convertible promissory notes [Member]
Unpaid principal	1,310,581	960,311
Discounts	(236,522)	(146,297)
Convertible notes payable	$ 1,074,060	$ 814,014

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Debt (Details 3)	9 Months Ended
	Sep. 30, 2018 USD ($)
Debt Details 3
Beginning balance
Changes due to new issuances	788,679
Changes due to extinguishments	(159,711)
Changes due to adjustment to fair value	150,456
Ending balance	$ 779,424

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Debt (Details Narrative)							1 Months Ended				9 Months Ended		12 Months Ended
	Aug. 07, 2018 USD ($)	Aug. 06, 2018 USD ($) shares	Mar. 13, 2018 USD ($)	Mar. 09, 2018 USD ($)	Feb. 12, 2018 USD ($)	Feb. 07, 2018 USD ($) shares	Aug. 28, 2018 USD ($) shares	Feb. 26, 2018 USD ($)	Feb. 12, 2018 USD ($)	Dec. 27, 2017 USD ($)	Sep. 30, 2018 USD ($) Integer $ / shares shares	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) shares
Proceeds from convertible notes payable											$ 603,000	$ 208,040
Debt discount, amortized to interest expenses											898,104	71,743	$ 138,668
Debt discount, additional amortized to interest expenses											36,874
Convertible notes payable, default													95,798
Debt discount											$ 127,500
Common stock shares issued for incentive | shares											15,000,000
Fair value of derivatives											$ 779,424
Convertible notes payable - related party											87,790		101,160
Convertible notes payable, interest											7,505	$ 627
Convertible notes payable, principal											1,002,735		705,303
Debt instrument converted amount													49,249
Twenty Second Trust [Member]
Outstanding principal amount											98,529		100,033
Loans from related parties											205,882
Accrued interest											19,563		$ 4,924
Dr. Leonard [Member]
Convertible notes payable - related party											87,790
McRae [Member]
Convertible notes payable, interest											6,109
Convertible notes payable, principal											$ 78,798
0-90 Days [Member]
Prepayment interest rate											135.00%
91-180 Days [Member]
Prepayment interest rate											150.00%
Promissory note [Member]
Debt discount, amortized to interest expenses					$ 17,743
Derivative liability					67,743				$ 67,743
Original issue discount					5,125
Debt discount					$ 72,868				$ 72,868
Maturity date					Feb. 05, 2019
Promissory notes, amount					$ 55,125
Proceeds from notes payable					$ 50,000
Promissory note [Member] | Interest [Member]
Bearing interest rate									16.00%
Promissory note [Member] | Unpaid principal [Member]
Bearing interest rate									8.00%
Promissory note [Member] | February 1, 2018 [Member]
Accrued nominal interest											$ 4,634
Promissory note [Member] | February 12, 2018 [Member]
Accrued nominal interest											2,850
Promissory note [Member] | On February 1, 2018 [Member]
Debt discount, amortized to interest expenses											8,286
Debt discount, additional amortized to interest expenses											31,197
Derivative liability											66,286
Original issue discount											2,000
Debt discount											$ 68,286
Maturity date											Feb. 01, 2019
Promissory notes, amount											$ 60,000
Proceeds from notes payable											$ 58,000
Promissory note [Member] | On February 1, 2018 [Member] | Interest [Member]
Bearing interest rate											18.00%
Promissory note [Member] | On February 1, 2018 [Member] | Unpaid principal [Member]
Bearing interest rate											12.00%
Crypto Exchange Promissory Note [Member]
Convertible promissory notes, issued	$ 100,000
Interest rate description	<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Crypto Note accrues interest at 4% until maturity which is 18 months from issue and 10% after maturity.</p>
Debt conversion, description	<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The holder can convert unpaid principal and accrued interest into KLK20 tokens at any time at the rate of $0.25 per token.</font></p>
Convertible promissory note [Member]
Number of convertible promissory notes | Integer											7
Convertible promissory notes, issued				$ 110,000		$ 465,000		$ 100,000
Proceeds from convertible notes payable			$ 100,000					90,000		$ 75,000	$ 213,040
Beneficial conversion feature of convertible notes											209,040
Debt discount, amortized to interest expenses				21,224		184,837		73,273		17,816
Debt discount, additional amortized to interest expenses											177,812
Nominal amount of convertible notes										78,000
Derivative liability				121,224		277,337		163,273		92,816
Original issue discount				10,000		41,563		10,000		3,000
Debt discount				$ 131,224		446,400		$ 173,273		$ 95,816
Maturity date				Mar. 05, 2019				Oct. 30, 2018		Sep. 30, 2018
Notes amount paid to creditor										$ 94,923
Accrued interest										1,118
Accrued nominal interest											$ 9,843
Additional interest expense										$ 15,805
Equity incentive						$ 127,500
Common stock shares issued for incentive | shares						15,000,000
Debt instrument converted amount		$ 20,000					$ 5,000
Debt instrument converted amount shares issued | shares		4,566,210					1,515,152				52,654,844		8,493,243
Convertible promissory note [Member] | First Tranche [Member]
Proceeds from convertible notes payable						$ 220,000
Maturity date						Nov. 09, 2018
Convertible promissory note [Member] | Unpaid interest[Member]
Bearing interest rate										12.00%
Convertible promissory note [Member] | Principal [Member]
Bearing interest rate										22.00%
Convertible promissory note [Member] | Interest [Member]
Bearing interest rate				16.00%		18.00%		18.00%
Convertible promissory note [Member] | Unpaid principal [Member]
Bearing interest rate				8.00%		6.00%		12.00%
Convertible promissory note [Member] | 0-90 Days [Member]
Additional interest expenses, percentage											135.00%
Convertible promissory note [Member] | 91-180 Days [Member]
Additional interest expenses, percentage											150.00%
Convertible promissory note Two [Member]
Debt discount, additional amortized to interest expenses											$ 38,430
Accrued nominal interest											5,567
Convertible promissory note One [Member]
Debt discount, additional amortized to interest expenses											67,229
Accrued nominal interest											$ 7,066
Convertible promissory note One [Member] | 0-90 Days [Member]
Additional interest expenses, percentage											115.00%
Convertible promissory note One [Member] | 91-180 Days [Member]
Additional interest expenses, percentage											125.00%
Convertible Note Derivatives [Member]
Default interest rate, description											<p style="margin: 0pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%.</font></p>
Notes redemption, description											<p style="margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%.</font></p>
Convertible Note Derivatives [Member] | Minimum [Member]
Assumption of stock price per shares | $ / shares											$ 0.084
Notes conversion trading days | Integer											20
Estimated effective discount rate											35.00%
Volatility rate											96.10%
Effective interest rate											243.00%
Convertible Note Derivatives [Member] | Maximum [Member]
Assumption of stock price per shares | $ / shares											$ 0.0048
Notes conversion trading days | Integer											25
Estimated effective discount rate											42.00%
Volatility rate											270.60%
Effective interest rate											289.00%

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Litigation (Details Narrative) - USD ($)			1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 14, 2018	Oct. 07, 2017	Aug. 29, 2017	Dec. 16, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Amount of damages sought				$ 2,377,915
Loss contingency damages sought interest amount				$ 4,459
Interest rate				4.50%
Litigation amount damages sought included in liabilities removed			$ 2,377,915
Litigation amount damages sought accrued interest included in liabilities removed			4,459						$ 44,294
Shares issued for settlement of lawsuit	$ 5,000						$ 5,000
Gain or (loss) on litigation	$ (55,000)		$ 2,426,668		$ (55,000)	$ 2,372,668	$ (55,000)	$ 2,372,668
Shares issued for settlement	10,000,000						10,000,000
McRae [Member]
Amount of damages sought		$ 75,000
Loss contingency damages sought accrued expenses		$ 49,000

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Income Taxes (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Income Taxes Details
Net operating loss carry-forward	$ 2,773,928	$ 2,103,201
Deferred tax asset at 21% and 39%, respectively	582,525	820,248
Valuation allowance	(582,525)	(820,248)
Net future income taxes

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Income Taxes (Details Narrative)	9 Months Ended
	Sep. 30, 2018
Income Taxes Details
Operating loss carry-forwards expiration period	2030

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Subsequent Events (Details Narrative)	9 Months Ended
	Sep. 30, 2018 shares
Subsequent Event [Member]
Debt instrument converted amount shares issued	63,762,066