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 MARCH 31, 2020

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: 000-55721

TAUTACHROME, INC.

 (Exact name of registrant as specified in its charter)

Delaware	84-2340972
(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)

Securities registered pursuant to section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Exchange on Which Registered
Not applicable	Not applicable	Not applicable

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 has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes x No ☐

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

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	x
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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 May 6, 2020, was 3,512,446,311.

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	17
Item 3	Quantitive And Qualitative Disclosures About Market Risk	19
Item 4	Controls and Procedures	19
PART II – OTHER INFORMATION
Item 1	Legal Proceedings	20
Item 2	Unregistered Sale of Equity Securities	20
Item 3	Defaults Upon Senior Securities	20
Item 4	Mine Safety Disclosures	20
Item 5	Other Information	20
Item 6	Exhibits	21
Signatures		22

2

PART I – FINANCIAL INFORMATION

ITEM 1 – CONSOLIDATED FINANCIAL STATEMENTS

TAUTACHROME, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	3/31/2020			12/31/2019
ASSETS	(Unaudited)
Current assets:
Cash	$	40,509		$	31,366
Prepaid expenses		237			403
Total current assets		40,746			31,769
TOTAL ASSETS	$	40,746		$	31,769
LIABILITIES
Accounts payable and accrued expenses	$	388,788		$	411,236
Accounts payable - related party		312,329			257,282
Loans from related parties		102,880			103,032
Convertible notes payable - related party, net		109,365			111,999
Convertible notes payable in default, related-party		27,825			-
Short-term convertible notes payable, net		1,023,379			814,685
Convertible notes payable in default		32,000			32,000
Short-term notes payable		13,509			15,465
Derivative liability		1,152,642			2,365,367
Court judgment liability		-			250,000
Total current liabilities		3,162,717			4,361,066
Long-term convertible notes payable, net		-			158,156
Long-term convertible notes payable, related party, net		303,088			84,091
Total non-current liabilities		303,088			242,247
TOTAL LIABILITIES		3,465,805			4,603,313
STOCKHOLDERS' DEFICIT
Series D Convertible Preferred, par value $0.0001.  13,795,104 shares authorized, 13,795,104 shares issued and outstanding at March 31, 2020 and December 31, 2019		1,380			1,380
Series E Convertible Preferred Stock, par value $0.0001.  40,000,000 shares authorized, 40,000 and zero shares outstanding at March 31, 2020 and December 31, 2019, respectively		4			-
Common stock, $0.00001 par value.  4.5 billion shares authorized. 3,509,112,978 and 3,504,460,889 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively		35,092			35,045
Additional paid in capital		7,966,253			6,095,053
Common stock payable		396,996			2,066,584
Accumulated deficit		(12,026,068	)		(12,867,645	)
Effect of foreign currency exchange		201,284			98,039
TOTAL STOCKHOLDERS' DEFICIT		(3,425,059	)		(4,571,544	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	40,746		$	31,769

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

3

TAUTACHROME, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2020			2019
OPERATING EXPENSES
General and administrative	$	312,369		$	130,220
Total operating expenses		312,369			130,220
Operating loss		(312,369	)		(130,220	)
OTHER INCOME / (EXPENSE)
Gain on litigation		105,000			-
Gain on settlement of debt		-			1,330
Interest expense		(161,919	)		(85,825	)
Change in value of derivatives		1,238,313			58,360
Loss on conversion of debt		(27,448	)		(120,775	)
Total other		1,153,946			(146,910	)
Net income or (loss)	$	841,577		$	(277,130	)
OTHER COMPREHENSIVE INCOME (LOSS)
Effect of foreign currency exchange		103,245			(5,865	)
Net comprehensive income or (loss)	$	944,822		$	(282,995	)
Net (loss) or income per common share
Basic	$	0.00		$	0.00
Fully diluted		0.00			0.00
Weighted average shares outstanding
Basic		3,505,021,996			2,300,781,103
Fully diluted		4,345,209,628			2,300,781,103

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

4

TAUTACHROME, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

December 31, 2018 to March 31, 2020

	Common Stock				Preferred Stock Series D				Preferred Stock Series E				Additional Paid in		Stock			Other Comprehensive Income		Accumulated			Total Stockholders' Equity/
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Payable			(Loss)		Deficit			(Deficit)
Balance, 12/31/18		1,932,483,910	$	19,325		13,795,104	$	1,380		-	$	-	$	4,692,609	$	1,919,927		$	96,202	$	(9,476,829	)	$	(2,747,386	)
Shares issued for conversion of debt		1,551,562,038		15,516		-		-		-		-		686,054		-			-		-			701,570
Shares issued to settle claims		16,123,055		161		-		-		-		-		188,462		-			-		-			188,623
Shares issued for stock payable		4,291,886		43		-		-		-		-		26,238		(26,281	)		-		-			-
Shares earned by consultants		-		-		-		-		-		-		-		172,938			-		-			172,938
Proceeds from officer stock sale		-		-		-		-		-		-		13,750		-			-		-			13,750
Derivative associated with early debt retirement		-		-		-		-		-		-		471,233		-			-		-			471,233
Imputed interest		-		-		-		-		-		-		16,707		-			-		-			16,707
Effect of foreign currency exchange		-		-		-		-		-		-		-		-			1,837		-			1,837
Net loss		-		-		-		-		-		-		-		-			-		(3,390,816	)		(3,390,816	)
Balance, December 31, 2019		3,504,460,889	$	35,045		13,795,104	$	1,380		-		-	$	6,095,053	$	2,066,584		$	98,039	$	(12,867,645	)	$	(4,571,544	)
Shares issued for conversion of debt		4,652,089		47		-		-		-				30,192		-			-		-			30,239
Issue Series E preferred shares		-		-		-		-		40,000		4		1,836,996		(1,837,000	)		-		-			-
Derivative associated with early debt retirement		-		-		-		-		-		-		173		-			-		-			173
Shares earned by consultants		-		-		-		-		-		-		-		22,412			-		-			22,412
Legal settlement		-		-		-		-		-		-		-		145,000			-		-			145,000
Imputed interest		-		-		-		-		-		-		3,839		-			-		-			3,839
Effect of foreign currency exchange		-		-		-		-		-		-		-		-			103,245		-			103,245
Net income		-		-		-		-		-		-		-		-			-		841,577			841,577
Balance, March 31, 2020 (unaudited)		3,509,112,978	$	35,092		13,795,104	$	1,380		40,000	$	4	$	7,966,253	$	396,996		$	201,284	$	(12,026,068	)	$	(3,425,059	)

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

5

TAUTACHROME, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	841,577		$	(277,130	)
Stock-based compensation		22,412			-
Loss on conversions		27,448			120,775
Change in fair value of derivative		(1,238,313	)		(58,360	)
Gain on litigation		(105,000	)		-
Gain on debt settlements		-			(1,330	)
Amortization of discounts on notes payable		128,166			48,934
Imputed interest		3,839			4,008
Changes in operating assets and liabilities:
Prepaid expenses		166			-
Accounts payable and accrued expenses		(3,141	)		54,422
Accounts payable - related party		(184	)		-
Net cash used in operating activities		(323,030	)		(108,681	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable		285,000			105,475
Proceeds from related-party loans		2,115			18,000
Principal payments on related-party loans		(23,918	)		(11,188	)
Net cash provided by financing activities		263,197			112,287
Effect of exchange rate changes on cash and cash equivalents		68,976			(5,865	)
Net increase/(decrease) in cash		9,143			(2,259	)
Cash and equivalents - beginning of period		31,366			6,243
Cash and equivalents - end of period	$	40,509		$	3,984
SUPPLEMENTARY INFORMATION
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS
Discounts on convertible notes	$	25,761		$	31,312
Conversion of debt to common stock	$	2,791		$	234,422
Settlement of derivative liability	$	173		$	175,780
Shares issued for debt settlements	$	-		$	3,623
Shares issued for stock payable	$	1,837,000		$	-
Reclassification of fair value of shares granted for settlement	$	145,000		$	-

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

6

TAUTACHROME, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

MARCH 31, 2020

Note 1 – Organization and Nature of Business

History

Tautachrome, 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, uniquely exploiting the technologies of the Augmented Reality sector, the blockchain/cryptocurrency sector and the smartphone picture and video technology sector. We have high-speed blockchain concepts under development aiming to couple with the Company’s revolutionary patents and licensing in augmented reality, smartphone-image authentication and imagery-based social networking interaction.

Tautachrome is currently pursuing three main avenues of business activity based on our patented activated imaging technology, our blockchain cryptocurrency products, and our licensing of the patent pending ARk technology (together banded “KlickZie” technology):

1.	KlickZie ARk technology business: The Company has licensed and is developing a new KlickZie augmented reality (“AR”) platform branded ARknet. ARknet enables goods and services providers to establish geolocated augmented reality interfaces, called ARks, allowing consumers to purchase the provider’s products and take advantage of is specials and discounts, using the ARk. A provider’s ARk may be located anywhere in the world, from a store location to anyplace else the provider may desire. The ARknet is a fintech platform connecting consumers to providers in the global $48 trillion household goods market, using augmented reality as the medium of interaction.
2.	KlickZie’s blockchain cryptocurrency-based ecosystem: The Company has developed its own digital currency (“KLK”), smart contracts using KLKs, and high speed blockchain concepts aimed at supporting fast frictionless transactions within the ARknet as well as incentivizing user download and use of KlickZie products.
3.	KlickZie Activated Digital Imagery business: The Company is developing 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 create. Trusted imagery and user imagery-based interaction is expected to be widely used within the ARknet.

Since its public announcement on September 25, 2017 (via SEC form 8-K) that it would be using its Twitter site (@Tautachrome_Inc) (https://twitter.com/tautachrome_inc) to post important Company information, and finding this method of publicizing important Company information both fast and effective, the Company has continued to use this means of public communication almost exclusively, supplemented occasionally with Current Reports via SEC Form 8-Ks. Shareholders are advised to follow us on Twitter to be current on the Company’s disclosures in conformity with Regulation FD.

7

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 ended March 31, 2020. 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, 2019, as reported in Form 10-K filed with the SEC filed on March 30, 2020.

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.

Revenue Recognition

The Company sells credits in exchange for cash. These credits can be redeemed for ARks which are geo-location objects downloadable into various digital devices. We recognize revenues once the customer has redeemed previously-purchased credits in exchange for ARks. Until that point, any cash received in exchange for credits is accounted for as liabilities.

The company recognizes revenues in accordance with ASC 606 – Revenue From Contracts with Customers which proscribes a five-step process in evaluating the revenue recognition process:

Step 1: Identify the contract with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The company has determined that the performance obligations are satisfied once the purchased credits are exchanged for ARks. As of March 31, 2020, we have recorded $2,616 in liabilities.

8

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 three months ended March 31, 2020 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard was effective for us on January 1, 2019 and we have adopted and implemented it. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

Note 3 – Going Concern

In the third quarter 2019, we began operations with our ARknet platform, and in October we acquired assets to enter the business ARk vertical in our market. We will require additional capital to exploit this vertical and to commercialize others. There is no guarantee that we will be able acquire the capital to exploit and commercialize the ARknet markets we envision so as to generate positive cash flows from operations. For these reasons, 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.

Management intends to raise additional capital, partly through convertible debt, partly through the direct sale of equity and partly through partnerships with businesses with whom we will provide exclusive use of ARknet techniques in their arenas of operation. We will commit those funds to further refine and develop our ARknet platform. In addition, we intend to market our products through Google and Facebook.

9

Note 4 – Related Party Transactions

For the three months ended March 31, 2020, we accrued $1,198 of interest to the 22^nd Trust (the “Trust”), the trustee of whom is Sonny Nugent, the son of our major shareholder and former Chief Executive Officer, Micheal Nugent. The outstanding balances of unpaid principal and interest at March 31, 2020 were $95,765 and $26,205, respectively. The outstanding balances of unpaid principal and interest at December 31, 2019 were $98,032 and $25,361, 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%.

On July 11, 2019, our CEO and Board Chairman contributed $13,750 to the company which was accounted for as additional paid in capital.

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 Dr. Leonard as Dr. Leonard 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 $1,529 was recorded as additional paid-in capital for the three months ended March 31, 2020. The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed.

During the three months ended March 31, 2020, we repaid $23,918 to Dr. Leonard. At March 31, 2020, the balanced owed Dr. Leonard is $55,256.

We also owe $33,801 to a Board member for convertible notes payable for loans he made to the company of which $27,825 is in default at March 31, 2020. The notes bear interest at 5% (10% after maturity) and may convert at $0.0025 per share. We originally recorded a discount of $755 in 2019, amortizing $59 and $75 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $621 and $33,180, respectively.

On February 2, 2020, a related-party convertible note in the amount of $27,825 became due and was not paid. We are presenting this note on the balance sheet as “Related-party convertible note payable in default” and are currently renegotiating this note with the related party.

On October 10, 2019, we issued a convertible promissory note in the amount of $62,500 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.005 per share. We originally recorded a discount of $19,278 in 2019, amortizing $2,701 and $2,831 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $13,746 and $48,754, respectively.

10

On December 19, 2019, we issued a convertible promissory note in the amount of $60,000 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.004 per share. We originally recorded a discount of $24,123 in 2019, amortizing $2,010 and $4,038 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $18,075 and $41,925, respectively.

During the three months ended March 31, 2020, we issued four promissory notes to Arknet in the aggregate amount of $285,000. The notes mature between June 24, 2021 and August 10, 2021, bear interest at 5% (10% after maturity) and can convert to common stock between $0.0025 and $0.0040 per common share. We originally recorded discounts on these notes in the aggregate of $25,761, amortizing $1,924 during the three months ended March 31, 2020. The unamortized discount and net liabilities at March 31, 2020 for these four notes are $23,837 and $261,163, respectively.

Note 5 – Capital

During the year ended December 31, 2019 we issued 1,571,976,979 shares as follows:

· We issued 1,551,562,038 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $525,621 of principal, $44,418 of interest, and $4,500 of conversion fees and recorded a loss on conversion of $127,031. As part of these conversions, we retired $471,233 of associated derivative liabilities which we included in Additional Paid in Capital.

· We issued 3,623,055 shares to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair value of $3,623, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement.

· We issued 12,500,000 shares to a previous supplier to retire trade debts in the amount of $35,000. We valued the shares at the grant date fair value of $185,000 and recorded a reduction of accounts payable of $35,000 and a loss on settlement of $150,000.

· We issued 4,291,886 shares to a consultant to reduce our stock payable to them. We reduced the stock payable by $26,281 and recorded additional expense of $313. We recorded an additional stock payable to this consultant of $19,888 during the period.

During the three months ended March 31, 2020, we issued 4,652,089 shares to a creditor in Australia to convert an outstanding convertible note in the amount of US$2,331 of principal and US$460 of accrued interest. We recognized a loss on the conversion of this debt in the amount of $27,448 and retired $173 of derivative liabilities.

During the three months ended March 31, 2020, we recorded stocks payable to two suppliers in the amount of $22,412.

11

Preferred Stock

During the year ended December 31, 2018, we accrued $1,837,000 in costs related to the 40,000 Series E Preferred shares promised in our ARknet contract containing a par value of $0.0001. This series of preferred shares have the following rights, limitations, restrictions and privileges:

· They are not entitled to dividends,

· They are entitled to no liquidation rights,

· Each share has the voting rights of all other voting shares combined, multiplied by 0.00001, and

· They have no conversion or redemption rights.

These shares were recorded as issued on January 31, 2020.

Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increased Additional Paid in Capital. For the three months ended March 31, 2020, we imputed $3,839 of such interest.

Note 6 – Debt

Loans from related parties

At March 31, 2020 we owed $102,880 in related-party loans consisting of $95,765 respectively, to the 22^nd Trust and $7,115 owed to a related-party Board member .

We also owe $33,801 of convertible notes payable to a Board member for loans he made to the company. The additional $7,115 is treated as an advance. The notes bear interest at 5% and may convert at $0.0025 per share.

On October 10, 2019, we issued a convertible promissory note in the amount of $62,500 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.005 per share. We originally recorded a discount of $19,278 in 2019, amortizing $2,701 and $2,831 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $13,746 and $48,754, respectively.

On December 19, 2019, we issued a convertible promissory note in the amount of $60,000 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.004 per share. We originally recorded a discount of $24,123 in 2019, amortizing $2,010 and $4,038 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $18,075 and $41,925, respectively.

During the three months ended March 31, 2020, we issued four promissory notes to Arknet in the aggregate amount of $285,000. The notes mature between June 24, 2021 and August 10, 2021, bear interest at 5% (10% after maturity) and can convert to common stock between $0.0025 and $0.0040 per common share. We originally recorded discounts on these notes in the aggregate of $25,761, amortizing $1,924 during the three months ended March 31, 2020. The unamortized discount and net liabilities at March 31, 2020 for these four notes are $23,837 and $261,163, respectively.

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Convertible notes payable

On January 29, 2019, we issued 3,623,055 to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair values, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement.

During the three months ended March 31, 2020, we amortized $128,166 of debt discounts to interest expense, accrued $22,491 of interest on existing notes. Additionally during the three months ended March 31, 2020, we issued 4,652,089 common shares to extinguish a note payable in the amount of $2,331 and $460 of unpaid principal and interest, respectively, and recorded a loss on conversion of $27,448 in so doing.

At March 31, 2020, $32,000 of our third-party convertible notes payable and $27,825 of related-party convertible notes were in default.

Convertible notes payable (excluding related-party convertible notes which is discussed in Note 4) at March 31, 2020 and December 31, 2019 and their classification into long-term, short-term and in-default were as follows:

	03/31/20			12/31/19
All convertible promissory notes
Unpaid principal		1,510,155			1,578,917
Discounts		(454,776	)		(574,076	)
Convertible notes payable, net	$	1,055,379		$	1,004,841
Classified as short-term
Unpaid principal balance		1,478,155			1,183,685
Discounts		(454,776	)		(369,000	)
Convertible notes payable - short-term, net	$	1,023,379		$	814,685
Classified as long-term
Unpaid principal balance		-			363,232
Discounts		-			(205,076	)
Convertible notes payable - short-term, net	$	-		$	(158,156	)
Classified as in default
Unpaid principal balance		32,000			32,000
Discounts		-			-
Convertible notes payable - short-term, net	$	32,000		$	32,000

On May 2, 2019, the company entered into an amendment to one of the convertible promissory notes issued during 2018. The company allowed the creditor to own a larger percentage of the company’s total shares outstanding in exchange for a waiver of all default interest. As a result, we recorded a reduction of interest payable to this creditor and interest expense of $140,491. On July 19, 2019, we issued 30,414,329 shares to this creditor extinguishing all principal and interest owed to them.

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Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increased Additional Paid in Capital. For the three months ended March 31, 2020, we imputed $3,839 of such interest. Of this amount, $1,529 is imputed on amounts owed to Jon Leonard, our Chief Executive Officer, and $2,310 was imputed on twenty eight outstanding loans in Australia.

Derivative liabilities

The above-referenced convertible promissory notes issued during the three months ended March 31, 2020 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 certain fixed-rate convertible Subscription Notes from 2015 through March 31, 2020 in the United States and Australia 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 each quarterly period from March 31, 2018 through March 31, 2020. The following assumptions were used for the valuation of the derivative liability related to the Notes:

· The stock price of $0.0115 to $0.00290 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.

14

· 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 146.0% – 258.3% (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 the instruments issued during the year ended December 31, 2019 range from 11% to 564%. The effective interest rates for the instruments issued during the three months ended March 31, 2020 range from 7% to 14%.

At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At March 31, 2020, we determined the fair value of these derivatives were $1,152,642.

Changes in outstanding derivative liabilities are as follows:

Balance, December 31, 2019	$	2,365,367
Changes due to new issuances		25,761
Changes due to extinguishments		(173	)
Changes due to adjustment to fair value		(1,238,313	)
Balance, March 31, 2020	$	1,152,642

Note 7 – Litigation

McRae Lawsuit

On October 10, 2017, the Company received a letter from the lawyer of Eric L McRae (“McRae”) a person whose association with the Company was terminated by the Company on June 16, 2017. The letter demanded payment of 850,000,000 unrestricted Tautachrome common shares to forestall his filing a laundry list of complaints in a variety of government agencies including with the US District Court in Kansas with complaints of contract breaches and fraud by silence, with the EEOC with complaints of termination by racial discrimination, with the OSHA with complains of termination for reasons of his being a whistleblower under Sarbanes-Oxley provisions, and with various regulatory agencies with accusations of an unspecified nature.

This history of the legal proceedings in this case are described in Note 7 to the financial statements filed with Form 10-K on March 30, 2020 and are herewith included by reference.

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On May 5, 2020 the Company settled with the McRae estate in principle for 50 million shares. We valued the shares at the settlement date (May 5, 2020 on which date our closing price was $0.0029) and recorded a Gain on Litigation in the amount of $105,000, a reduction of the amount of the liability to $145,000 as a result of that revaluation and reclassified the remaining liability into Stock Payable. As of the date of this report, the shares have not been issued.

Note 8 – Income Taxes

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

	03/31/20			12/31/19
Net operating loss carry-forward		4,821,819			4,579,500
Deferred tax asset	$	1,012,582		$	961,695
Valuation allowance		(1,012,582	)		(961,695	)
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

The Company issued two convertible promissory notes to a related-party in the aggregate amount of $32,324.

The Company issued 3,333,333 shares to a consultant to retire a stock payable in the amount of $20,000.

The McRae lawsuit (See Note 7) was settled in principle for 50 million shares.

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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,” “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 minimal 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.

Results of Operations - Three months ended March 31, 2020 versus 2019

We had general and administrative expenses of $312,369 for the three months ended March 31, 2020 versus $130,220 for the same period in 2019. The increase is mainly due to increases in software development costs (a $117,000 increase), professional services (a $28,000 increase) and Arknet license fees (a $50,000 increase).

As is discussed in Note 7 to the financial statements, we had a gain of $105,000 on the McRae lawsuit settlement. We had no such gains in the previous year.

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We had an increase in interest expense from $85,825 during the three months ended March 31, 2019 to $161,919 in the current period. The vast majority of the change was due to discount amortizations.

We had gains on changes in the fair values of our derivatives of $1,238,313 and $58,360 for the three months ended March 31, 2020 and 2019, respectively. This increase is mostly due to changes in the Company stock price and volatility during the quarter as well as fluctuating exchange rates.

We had a decrease in the amount of losses associated with the conversion of convertible debt. During the three months ended March 31, 2020, we had $27,448 of such losses and $120,775 of such losses for the same period in the previous year. The decrease is associated with fewer conversions.

During the three months ended March 31, 2020, we had a foreign exchange gain of $103,245 versus a loss of $5,865 during the same period in 2019, all of which are currency translation effects resulting from exchange rate differences between the U.S. and Australian dollars. The US Dollar gained approximately 15% in value against the Australian Dollar during the first quarter of 2020.

Our net comprehensive gains losses of $944,822 (gain) and $282,995 (loss) during the three months ended March 31, 2020 and 2019 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 March 31, 2020, the Company had $40,509 in cash and liabilities totaling $3,465,805. 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 March 31, 2020. 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, 2019, filed with the Securities and Exchange Commission on March 30, 2020 and is herein incorporated by reference.

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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 March 31, 2020, 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 March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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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 Note 7, or our officers and directors in their capacity as such that could have a material impact on our operations or finances.

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

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ITEM 6 - EXHIBITS

Exhibit No.	Description of Exhibit
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.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

** Furnished herewith

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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: May 12, 2020	By:	/s/ Dr. Jon Leonard
		Dr. Jon Leonard
		Chief Executive Officer

22

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: May 12, 2020	/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 for the period ended March 31, 2020 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: May 12, 2020	/s/ Dr. Jon Leonard
	Dr. Jon Leonard,
	Chief Executive Officer

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Income Taxes

Summary of deferred income taxes

	03/31/20			12/31/19
Net operating loss carry-forward		4,821,819			4,579,500
Deferred tax asset	$	1,012,582		$	961,695
Valuation allowance		(1,012,582	)		(961,695	)
Net future income taxes	$	-		$	-

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	4,500,000,000	4,500,000,000
Common stock, shares issued	3,509,112,978	3,504,460,889
Common stock, shares outstanding	3,509,112,978	3,504,460,889
Series E Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	40,000,000	40,000,000
Convertible preferred stock, shares outstanding	40,000	0
Convertible preferred stock, shares issued	40,000	0
Series D Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	13,795,104	13,795,104
Convertible preferred stock, shares outstanding	13,795,104	13,795,104
Convertible preferred stock, shares issued	13,795,104	13,795,104

XML

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Taxes

Note 8 - Income Taxes

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

	03/31/20			12/31/19
Net operating loss carry-forward		4,821,819			4,579,500
Deferred tax asset	$	1,012,582		$	961,695
Valuation allowance		(1,012,582	)		(961,695	)
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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Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions

Note 4 - Related Party Transactions

For the three months ended March 31, 2020, we accrued $1,198 of interest to the 22^nd Trust (the “Trust”), the trustee of whom is Sonny Nugent, the son of our major shareholder and former Chief Executive Officer, Micheal Nugent. The outstanding balances of unpaid principal and interest at March 31, 2020 were $95,765 and $26,205, respectively. The outstanding balances of unpaid principal and interest at December 31, 2019 were $98,032 and $25,361, 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%.

On July 11, 2019, our CEO and Board Chairman contributed $13,750 to the company which was accounted for as additional paid in capital.

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 Dr. Leonard as Dr. Leonard 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 $1,529 was recorded as additional paid-in capital for the three months ended March 31, 2020. The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed.

During the three months ended March 31, 2020, we repaid $23,918 to Dr. Leonard. At March 31, 2020, the balanced owed Dr. Leonard is $55,256.

We also owe $33,801 to a Board member for convertible notes payable for loans he made to the company of which $27,825 is in default at March 31, 2020. The notes bear interest at 5% (10% after maturity) and may convert at $0.0025 per share. We originally recorded a discount of $755 in 2019, amortizing $59 and $75 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $621 and $33,180, respectively.

On February 2, 2020, a related-party convertible note in the amount of $27,825 became due and was not paid. We are presenting this note on the balance sheet as “Related-party convertible note payable in default” and are currently renegotiating this note with the related party.

On October 10, 2019, we issued a convertible promissory note in the amount of $62,500 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.005 per share. We originally recorded a discount of $19,278 in 2019, amortizing $2,701 and $2,831 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $13,746 and $48,754, respectively.

On December 19, 2019, we issued a convertible promissory note in the amount of $60,000 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.004 per share. We originally recorded a discount of $24,123 in 2019, amortizing $2,010 and $4,038 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $18,075 and $41,925, respectively.

During the three months ended March 31, 2020, we issued four promissory notes to Arknet in the aggregate amount of $285,000. The notes mature between June 24, 2021 and August 10, 2021, bear interest at 5% (10% after maturity) and can convert to common stock between $0.0025 and $0.0040 per common share. We originally recorded discounts on these notes in the aggregate of $25,761, amortizing $1,924 during the three months ended March 31, 2020. The unamortized discount and net liabilities at March 31, 2020 for these four notes are $23,837 and $261,163, respectively.

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Organization and Nature of Business

3 Months Ended

Mar. 31, 2020

Organization and Nature of Business

Note 1 - Organization and Nature of Business

History

Tautachrome, 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, uniquely exploiting the technologies of the Augmented Reality sector, the blockchain/cryptocurrency sector and the smartphone picture and video technology sector. We have high-speed blockchain concepts under development aiming to couple with the Company’s revolutionary patents and licensing in augmented reality, smartphone-image authentication and imagery-based social networking interaction.

Tautachrome is currently pursuing three main avenues of business activity based on our patented activated imaging technology, our blockchain cryptocurrency products, and our licensing of the patent pending ARk technology (together banded “KlickZie” technology):

1.	KlickZie ARk technology business: The Company has licensed and is developing a new KlickZie augmented reality (“AR”) platform branded ARknet. ARknet enables goods and services providers to establish geolocated augmented reality interfaces, called ARks, allowing consumers to purchase the provider’s products and take advantage of is specials and discounts, using the ARk. A provider’s ARk may be located anywhere in the world, from a store location to anyplace else the provider may desire. The ARknet is a fintech platform connecting consumers to providers in the global $48 trillion household goods market, using augmented reality as the medium of interaction.
2.	KlickZie’s blockchain cryptocurrency-based ecosystem: The Company has developed its own digital currency (“KLK”), smart contracts using KLKs, and high speed blockchain concepts aimed at supporting fast frictionless transactions within the ARknet as well as incentivizing user download and use of KlickZie products.
3.	KlickZie Activated Digital Imagery business: The Company is developing 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 create. Trusted imagery and user imagery-based interaction is expected to be widely used within the ARknet.

Since its public announcement on September 25, 2017 (via SEC form 8-K) that it would be using its Twitter site (@Tautachrome_Inc) (https://twitter.com/tautachrome_inc) to post important Company information, and finding this method of publicizing important Company information both fast and effective, the Company has continued to use this means of public communication almost exclusively, supplemented occasionally with Current Reports via SEC Form 8-Ks. Shareholders are advised to follow us on Twitter to be current on the Company’s disclosures in conformity with Regulation FD.

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Litigation (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	May 05, 2020	Mar. 31, 2020	Mar. 31, 2019	Oct. 10, 2017
Decrease in litigation liability	$ 145,000
Gain or (loss) on litigation		$ 105,000
McRae [Member]
Loss contingency damages sought by related party, restricted shares				850,000,000
Subsequent Event [Member] | McRae [Member]
Common stock shares offered for settlement	50,000,000
Gain or (loss) on litigation	$ 105,000
Closing price of shares	$ 0.0029

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Capital (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 29, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Imputed interest		$ 3,839	$ 4,008
Share issued during the period		4,652,089		1,571,976,979
Loss on conversion of debt			$ 1,330
Share issued fair value		$ 2,331
Shares issued
Series E Preferred Stock [Member]
Accrued expenses					$ 1,837,000
Preferred stock shares authorized		40,000,000		40,000,000
Preferred stock, par value		$ 0.0001		$ 0.0001
ArKnet [Member] | Series E Preferred Stock [Member]
Preferred stock shares authorized					40,000
Preferred stock, par value					$ 0.0001
Description for share exchange ratio and voting rights					Each share has the voting rights of all other voting shares combined, multiplied by 0.00001,
Convertible Notes Payable [Member] | Australian Individual [Member]
Share issued during the period	3,623,055			3,623,055
Debt conversion, converted instrument, principal	$ 4,258			$ 4,258
Reduction on debt conversion converted instrument, Accrued interest	695			695
Share issued fair value				3,623
Gain on this settlement of debt	$ 1,330			$ 1,330
Convertible promissory note [Member]
Debt conversion converted instrument shares issued				1,551,562,038
Debt conversion, converted instrument, principal				$ 525,621
Decrease in derivative liability				471,233
Reduction on debt conversion converted instrument, Accrued interest				44,418
Loss on conversion				127,031
Conversion fees				4,500
Retire Trade Debts [Member]
shares issued to related party, amount				35,000
Loss on conversion of debt				$ 150,000
Common stock shares issed for debt settlement, shares				12,500,000
Accounts payable				$ 35,000
Share issued fair value				$ 185,000
Two Suppliers [Member]
shares issued to related party, amount		$ 22,412
Australian creditor [Member] | Convertible Notes Payable [Member]
Debt conversion converted instrument shares issued		4,652,089
Debt conversion, converted instrument, principal		$ 2,331
Debt conversion, converted instrument, accrued interest		460
Loss on conversion of debt		27,448
Decrease in derivative liability		$ 173
Consultant Member [Member]
Shares issued				4,291,886
Stock payable				$ 26,281
Additional expense				313
Additional stock payable				$ 19,888

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Income Taxes (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Income Taxes (Details)
Net operating loss carry-forward	$ 4,821,819	$ 4,579,500
Deferred tax asset	1,012,582	961,695
Valuation allowance	(1,012,582)	(961,695)
Net future income taxes

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Debt (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Convertible notes payable, net	$ 109,365	$ 111,999
All convertible promissory notes [Member]
Unpaid principal	1,510,155	1,578,917
Discounts	(454,776)	(574,076)
Convertible notes payable, net	1,055,379	1,004,841
Classified as short-term [Member]
Unpaid principal	1,478,155	1,183,685
Discounts	(454,776)	(369,000)
Convertible notes payable, net	1,023,379	814,685
Classified as long-term [Member]
Unpaid principal		363,232
Discounts		(205,076)
Convertible notes payable, net		(158,156)
Classified as in default [Member]
Unpaid principal	32,000	32,000
Discounts
Convertible notes payable, net	$ 32,000	$ 32,000

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CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash	$ 40,509	$ 31,366
Prepaid expenses	237	403
Total current assets	40,746	31,769
TOTAL ASSETS	40,746	31,769
LIABILITIES
Accounts payable and accrued expenses	388,788	411,236
Accounts payable - related party	312,329	257,282
Loans from related parties	102,880	103,032
Convertible notes payable - related party, net	109,365	111,999
Convertible notes payable in default, related-party	27,825
Short-term convertible notes payable, net	1,023,379	814,685
Convertible notes payable in default	32,000	32,000
Short-term notes payable	13,509	15,465
Derivative liability	1,152,642	2,365,367
Court judgment liability		250,000
Total current liabilities	3,162,717	4,361,066
Long-term convertible notes payable, net		158,156
Long-term convertible notes payable, related party, net	303,088	84,091
Total non-current liabilities	303,088	242,247
TOTAL LIABILITIES	3,465,805	4,603,313
STOCKHOLDERS' DEFICIT
Common stock, $0.00001 par value. 4.5 billion shares authorized. 3,509,112,978 and 3,504,460,889 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	35,092	35,045
Additional paid in capital	7,966,253	6,095,053
Common stock payable	396,996	2,066,584
Accumulated deficit	(12,026,068)	(12,867,645)
Effect of foreign currency exchange	201,284	98,039
TOTAL STOCKHOLDERS' DEFICIT	(3,425,059)	(4,571,544)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	40,746	31,769
Series E Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock	4
Series D Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock	$ 1,380	$ 1,380

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Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events

Note 9 - Subsequent Events

The Company issued two convertible promissory notes to a related-party in the aggregate amount of $32,324.

The Company issued 3,333,333 shares to a consultant to retire a stock payable in the amount of $20,000.

The McRae lawsuit (See Note 7) was settled in principle for 50 million shares.

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Capital

3 Months Ended

Mar. 31, 2020

Capital

Note 5 - Capital

During the year ended December 31, 2019 we issued 1,571,976,979 shares as follows:

· We issued 1,551,562,038 shares in conversion of outstanding convertible promissory notes. We recorded a reduction of the balance of these notes of $525,621 of principal, $44,418 of interest, and $4,500 of conversion fees and recorded a loss on conversion of $127,031. As part of these conversions, we retired $471,233 of associated derivative liabilities which we included in Additional Paid in Capital.

· We issued 3,623,055 shares to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair value of $3,623, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement.

· We issued 12,500,000 shares to a previous supplier to retire trade debts in the amount of $35,000. We valued the shares at the grant date fair value of $185,000 and recorded a reduction of accounts payable of $35,000 and a loss on settlement of $150,000.

· We issued 4,291,886 shares to a consultant to reduce our stock payable to them. We reduced the stock payable by $26,281 and recorded additional expense of $313. We recorded an additional stock payable to this consultant of $19,888 during the period.

During the three months ended March 31, 2020, we issued 4,652,089 shares to a creditor in Australia to convert an outstanding convertible note in the amount of US$2,331 of principal and US$460 of accrued interest. We recognized a loss on the conversion of this debt in the amount of $27,448 and retired $173 of derivative liabilities.

During the three months ended March 31, 2020, we recorded stocks payable to two suppliers in the amount of $22,412.

Preferred Stock

During the year ended December 31, 2018, we accrued $1,837,000 in costs related to the 40,000 Series E Preferred shares promised in our ARknet contract containing a par value of $0.0001. This series of preferred shares have the following rights, limitations, restrictions and privileges:

· They are not entitled to dividends,

· They are entitled to no liquidation rights,

· Each share has the voting rights of all other voting shares combined, multiplied by 0.00001, and

· They have no conversion or redemption rights.

These shares were recorded as issued on January 31, 2020.

Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increased Additional Paid in Capital. For the three months ended March 31, 2020, we imputed $3,839 of such interest.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ 841,577	$ (277,130)
Stock-based compensation	22,412
Loss on conversions	27,448	120,775
Change in fair value of derivative	(1,238,313)	(58,360)
Gain on litigation	(105,000)
Gain on debt settlements		(1,330)
Amortization of discounts on notes payable	128,166	48,934
Imputed interest	3,839	4,008
Changes in operating assets and liabilities:
Prepaid expenses	166
Accounts payable and accrued expenses	(3,141)	54,422
Accounts payable - related party	(184)
Net cash used in operating activities	(323,030)	(108,681)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible notes payable	285,000	105,475
Proceeds from related-party loans	2,115	18,000
Principal payments on related-party loans	(23,918)	(11,188)
Net cash provided by financing activities	263,197	112,287
Effect of exchange rate changes on cash and cash equivalents	68,976	(5,865)
Net increase/(decrease) in cash	9,143	(2,259)
Cash and equivalents - beginning of period	31,366	6,243
Cash and equivalents - end of period	40,509	3,984
SUPPLEMENTARY INFORMATION
Cash paid for interest
Cash paid for income taxes
SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS
Discounts on convertible notes	25,761	31,312
Conversion of debt to common stock	2,791	234,422
Settlement of derivative liability	173	175,780
Shares issued for debt settlements		3,623
Shares issued for stock payable	$ 1,837,000
Reclassification of fair value of shares granted for settlement	145,000

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Organization and Nature of Business (Details Narrative)	3 Months Ended
	Mar. 31, 2020
State of incorporation	Delaware
Entity incorporation date	Jun. 05, 2006
ARKnet [Member]
Organization and nature of business description	The ArKnet is a fintech platform connecting consumers to providers in the global $48 trillion household goods market, using augmented reality as the medium of interaction.

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Subsequent Events (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	May 05, 2020
Convertible notes payable	$ 109,365	$ 111,999
Shares issued to related party for stock payable, shares	4,652,089	1,571,976,979
Subsequent Event [Member] | Consultant Member [Member]
Shares issued to related party for stock payable, shares	3,333,333
Shares issued to related party for stock payable, amount	$ 20,000
Subsequent Event [Member] | McRae [Member]
Common stock shares offered for settlement			50,000,000
Subsequent Event [Member] | Two Promissory Notes [Member] | Related party [Member]
Convertible notes payable	$ 32,324

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Debt (Details Narrative)	1 Months Ended					3 Months Ended		12 Months Ended
	Dec. 19, 2019 USD ($) $ / shares	Oct. 10, 2019 USD ($) $ / shares	Jul. 19, 2019 shares	May 02, 2019 USD ($)	Jan. 29, 2019 USD ($) shares	Mar. 31, 2020 USD ($) integer $ / shares shares	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) shares	Sep. 30, 2019
Shares issued during period notes payable, shares | shares						4,652,089		1,571,976,979
Loan from related party						$ 102,880		$ 103,032
Shares issued during period notes payable, principal						2,331
Shares issued during period notes payable, interest						460
Loss on extinguishment of debt							$ 1,330
Amortization of debt discount						128,166	48,934
Accrued interest						22,491
Imputed interest						3,839	4,008
Interest expense						(161,919)	$ (85,825)
Convertible notes payable, default						27,825
Convertible notes payable						109,365		111,999
Net liabilities						$ 3,465,805		4,603,313
Minimum [Member]
Conversion price | $ / shares						$ 0.0025
Maximum [Member]
Conversion price | $ / shares						$ 0.0040
Third Party [Member]
Convertible notes payable, default						$ 32,000
Related Party [Member]
Convertible notes payable, default						27,825
Loans in Australia [Member]
Imputed interest						2,310
Jon Leonard [Member]
Imputed interest						1,529
Creditor [Member]
Interest expense				$ 140,491
Shares issued for extinguishment of debt | shares			30,414,329
Twenty Second Trust [Member]
Loan from related party						95,765
Board Member [Member]
Loan from related party						7,115
Accrued interest						26,205		25,361
Convertible notes payable						$ 33,801
Interest rate						5.00%
Conversion price | $ / shares						$ 0.0025
Convertible Note Derivatives [Member]
Default interest rate, description						An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%.
Notes redemption, description						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%.
Fair value of derivatives						$ 1,152,642
Convertible Note Derivatives [Member] | Minimum [Member]
Debt instrument, After maturity interst rate						7.00%			11.00%
Assumption of stock price per shares | $ / shares						$ 0.0115
Notes conversion trading days | integer						20
Estimated effective discount rate						35.00%
Volatility rate						146.00%
Convertible Note Derivatives [Member] | Maximum [Member]
Debt instrument, After maturity interst rate						14.00%			564.00%
Assumption of stock price per shares | $ / shares						$ 0.00290
Notes conversion trading days | integer						25
Estimated effective discount rate						42.00%
Volatility rate						258.30%
Convertible promissory note one [Member] | ARKnet [Member]
Loan from related party						$ 48,754
Amortization of debt discount						2,831		2,701
Interest rate		5.00%
Conversion price | $ / shares		$ 0.005
Debt instrument, maturity date, description		Matures 18 months from the date of the note
Debt instrument, umamortized discount						13,746		19,278
Debt instrument, After maturity interst rate		10.00%
Debt instrument, principal amount		$ 62,500
Net liabilities						48,754
Convertible promissory note two [Member] | ARKnet [Member]
Loan from related party						41,925
Amortization of debt discount						4,038		2,010
Interest rate	5.00%
Conversion price | $ / shares	$ 0.004
Debt instrument, maturity date, description	Matures 18 months from the date of the note
Debt instrument, umamortized discount						18,075		$ 24,123
Debt instrument, After maturity interst rate	10.00%
Debt instrument, principal amount	$ 60,000
Four promissory Note One [Member] | ARKnet [Member]
Loan from related party						261,163
Amortization of debt discount						$ 1,924
Interest rate						5.00%
Debt instrument, maturity date, description						The notes mature between June 24, 2021 and August 10, 2021
Debt instrument, umamortized discount						$ 25,761
Debt instrument, After maturity interst rate						10.00%
Debt instrument, principal amount						$ 285,000
Net liabilities						261,163
Unamortized discount						23,837
Convertible Notes Payable [Member] | Australian Individual [Member]
Shares issued during period notes payable, shares | shares					3,623,055			3,623,055
Shares issued during period notes payable, principal								$ 3,623
Gain on this settlement of debt					$ 1,330			1,330
Reduction on debt conversion converted instrument, Accrued interest					695			695
Principal reduction on debt conversion original amount					$ 4,258			4,258
Convertible Notes Payable [Member] | Board Member [Member]
Loan from related party						33,180
Amortization of debt discount						75		59
Convertible notes payable, default						$ 27,825
Interest rate						5.00%
Conversion price | $ / shares						$ 0.0025
Debt instrument, umamortized discount						$ 621		$ 755
Debt instrument, After maturity interst rate						10.00%
Debt instrument, principal amount						$ 33,801

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Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended		12 Months Ended
	Dec. 19, 2019	Oct. 10, 2019	Jan. 29, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jul. 11, 2019
Related-party convertible note payable in default				$ 27,825
Due to related party				102,880		$ 103,032
Amortization of debt discount				128,166	$ 48,934
Net liabilities				3,465,805		4,603,313
Additional paid in capital				7,966,253		6,095,053
Accrued interest				22,491
Board Member [Member]
Due to related party				$ 7,115
Debt instrument, interest rate, percentage				5.00%
Debt instrument, conversion price				$ 0.0025
Accrued interest				$ 26,205		25,361
Outstanding principal amount				95,765		$ 98,032
Dr. Leonard [Member]
Due to related party				55,256
Adjustment to additional paid in capital, Imputed interest				$ 1,529
Fixed share price for repayment				$ 1.00
Repayment of related party debt				$ 23,918
Twenty Second Trust [Member]
Due to related party				$ 95,765
Interest payment default description				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%.
Sonny Nugent [Member]
Accrued Interest				$ 1,198
Minimum [Member]
Debt instrument, conversion price				$ 0.0025
Maximum [Member]
Debt instrument, conversion price				$ 0.0040
Convertible Notes Payable [Member] | Board Member [Member]
Related-party convertible note payable in default				$ 27,825
Debt instrument, After maturity interst rate				10.00%
Debt instrument, principal amount				$ 33,801
Due to related party				33,180
Amortization of debt discount				$ 75		$ 59
Debt instrument, interest rate, percentage				5.00%
Debt instrument, umamortized discount				$ 621		755
Debt instrument, conversion price				$ 0.0025
ARKnet [Member] | Four Promissory Note One [Member]
Debt instrument, maturity date, description				The notes mature between June 24, 2021 and August 10, 2021
Debt instrument, After maturity interst rate				10.00%
Debt instrument, principal amount				$ 285,000
Due to related party				261,163
Amortization of debt discount				$ 1,924
Debt instrument, interest rate, percentage				5.00%
Net liabilities				$ 261,163
Debt instrument, umamortized discount				25,761
Unamortized discount				23,837
ARKnet [Member] | Convertible Promissory Note Two [Member]
Debt instrument, maturity date, description	Matures 18 months from the date of the note
Debt instrument, After maturity interst rate	10.00%
Debt instrument, principal amount	$ 60,000
Due to related party				41,925
Amortization of debt discount				4,038		2,010
Debt instrument, interest rate, percentage	5.00%
Debt instrument, umamortized discount				18,075		24,123
Debt instrument, conversion price	$ 0.004
ARKnet [Member] | Convertible Promissory Note One [Member]
Debt instrument, maturity date, description		Matures 18 months from the date of the note
Debt instrument, After maturity interst rate		10.00%
Debt instrument, principal amount		$ 62,500
Due to related party				48,754
Amortization of debt discount				2,831		2,701
Debt instrument, interest rate, percentage		5.00%
Net liabilities				48,754
Debt instrument, umamortized discount				$ 13,746		$ 19,278
Debt instrument, conversion price		$ 0.005
CEO and Board Chairman [Member]
Additional paid in capital							$ 13,750

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Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt (Tables)

Schedule of Convertible notes payable

	03/31/20			12/31/19
All convertible promissory notes
Unpaid principal		1,510,155			1,578,917
Discounts		(454,776	)		(574,076	)
Convertible notes payable, net	$	1,055,379		$	1,004,841
Classified as short-term
Unpaid principal balance		1,478,155			1,183,685
Discounts		(454,776	)		(369,000	)
Convertible notes payable - short-term, net	$	1,023,379		$	814,685
Classified as long-term
Unpaid principal balance		-			363,232
Discounts		-			(205,076	)
Convertible notes payable - short-term, net	$	-		$	(158,156	)
Classified as in default
Unpaid principal balance		32,000			32,000
Discounts		-			-
Convertible notes payable - short-term, net	$	32,000		$	32,000

Changes in outstanding derivative liabilities

Balance, December 31, 2019	$	2,365,367
Changes due to new issuances		25,761
Changes due to extinguishments		(173	)
Changes due to adjustment to fair value		(1,238,313	)
Balance, March 31, 2020	$	1,152,642

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Litigation

3 Months Ended

Mar. 31, 2020

Litigation

Note 7 - Litigation

McRae Lawsuit

On October 10, 2017, the Company received a letter from the lawyer of Eric L McRae (“McRae”) a person whose association with the Company was terminated by the Company on June 16, 2017. The letter demanded payment of 850,000,000 unrestricted Tautachrome common shares to forestall his filing a laundry list of complaints in a variety of government agencies including with the US District Court in Kansas with complaints of contract breaches and fraud by silence, with the EEOC with complaints of termination by racial discrimination, with the OSHA with complains of termination for reasons of his being a whistleblower under Sarbanes-Oxley provisions, and with various regulatory agencies with accusations of an unspecified nature.

This history of the legal proceedings in this case are described in Note 7 to the financial statements filed with Form 10-K on March 30, 2020 and are herewith included by reference.

On May 5, 2020 the Company settled with the McRae estate in principle for 50 million shares. We valued the shares at the settlement date (May 5, 2020 on which date our closing price was $0.0029) and recorded a Gain on Litigation in the amount of $105,000, a reduction of the amount of the liability to $145,000 as a result of that revaluation and reclassified the remaining liability into Stock Payable. As of the date of this report, the shares have not been issued.

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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING EXPENSES
General and administrative	$ 312,369	$ 130,220
Total operating expenses	312,369	130,220
Operating loss	(312,369)	(130,220)
OTHER INCOME / (EXPENSE)
Gain on litigation	105,000
Gain on settlement of debt		1,330
Interest expense	(161,919)	(85,825)
Change in value of derivatives	1,238,313	58,360
Loss on conversion of debt	(27,448)	(120,775)
Total other	1,153,946	(146,910)
Net income or (loss)	841,577	(277,130)
OTHER COMPREHENSIVE INCOME (LOSS)
Effect of foreign currency exchange	103,245	(5,865)
Net comprehensive income or (loss)	$ 944,822	$ (282,995)
Net (loss) or income per common share
Basic	$ 0.00	$ 0.00
Fully diluted	$ 0.00	$ 0.00
Weighted average shares outstanding
Basic	3,505,021,996	2,300,781,103
Fully diluted	4,345,209,628	2,300,781,103

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Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Basis of Presentation and Summary of Significant Accounting Policies

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 ended March 31, 2020. 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, 2019, as reported in Form 10-K filed with the SEC filed on March 30, 2020.

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.

Revenue Recognition

The Company sells credits in exchange for cash. These credits can be redeemed for ARks which are geo-location objects downloadable into various digital devices. We recognize revenues once the customer has redeemed previously-purchased credits in exchange for ARks. Until that point, any cash received in exchange for credits is accounted for as liabilities.

The company recognizes revenues in accordance with ASC 606 – Revenue From Contracts with Customers which proscribes a five-step process in evaluating the revenue recognition process:

Step 1: Identify the contract with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The company has determined that the performance obligations are satisfied once the purchased credits are exchanged for ARks. As of March 31, 2020, we have recorded $2,616 in liabilities.

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 three months ended March 31, 2020 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard was effective for us on January 1, 2019 and we have adopted and implemented it. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

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Going Concern

3 Months Ended

Mar. 31, 2020

Going Concern

Note 3 - Going Concern

In the third quarter 2019, we began operations with our ARknet platform, and in October we acquired assets to enter the business ARk vertical in our market. We will require additional capital to exploit this vertical and to commercialize others. There is no guarantee that we will be able acquire the capital to exploit and commercialize the ARknet markets we envision so as to generate positive cash flows from operations. For these reasons, 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.

Management intends to raise additional capital, partly through convertible debt, partly through the direct sale of equity and partly through partnerships with businesses with whom we will provide exclusive use of ARknet techniques in their arenas of operation. We will commit those funds to further refine and develop our ARknet platform. In addition, we intend to market our products through Google and Facebook.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 06, 2020
Document And Entity Information
Entity Registrant Name	TAUTACHROME INC.
Entity Central Index Key	0001389067
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding		3,512,446,311
Entity Interactive Data Current	Yes

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

3 Months Ended

Mar. 31, 2020

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 ended March 31, 2020. 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, 2019, as reported in Form 10-K filed with the SEC filed on March 30, 2020.

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.

Revenue Recognition

The Company sells credits in exchange for cash. These credits can be redeemed for ARks which are geo-location objects downloadable into various digital devices. We recognize revenues once the customer has redeemed previously-purchased credits in exchange for ARks. Until that point, any cash received in exchange for credits is accounted for as liabilities.

The company recognizes revenues in accordance with ASC 606 – Revenue From Contracts with Customers which proscribes a five-step process in evaluating the revenue recognition process:

Step 1: Identify the contract with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The company has determined that the performance obligations are satisfied once the purchased credits are exchanged for ARks. As of March 31, 2020, we have recorded $2,616 in liabilities.

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 three months ended March 31, 2020 as the effect of our potential common stock equivalents would be anti-dilutive.

Recent Accounting Pronouncements

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard was effective for us on January 1, 2019 and we have adopted and implemented it. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

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Debt

3 Months Ended

Mar. 31, 2020

Debt

Note 6 - Debt

Loans from related parties

At March 31, 2020 we owed $102,880 in related-party loans consisting of $95,765 respectively, to the 22^nd Trust and $7,115 owed to a related-party Board member .

We also owe $33,801 of convertible notes payable to a Board member for loans he made to the company. The additional $7,115 is treated as an advance. The notes bear interest at 5% and may convert at $0.0025 per share.

On October 10, 2019, we issued a convertible promissory note in the amount of $62,500 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.005 per share. We originally recorded a discount of $19,278 in 2019, amortizing $2,701 and $2,831 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $13,746 and $48,754, respectively.

On December 19, 2019, we issued a convertible promissory note in the amount of $60,000 to Arknet in exchange for that amount of proceeds. The note bears interest at 5% (10% after maturity), matures 18 months from the date of the note and can covert to common stock at $0.004 per share. We originally recorded a discount of $24,123 in 2019, amortizing $2,010 and $4,038 during 2019 and 2020, respectively. The unamortized discount and net liabilities at March 31, 2020 are $18,075 and $41,925, respectively.

During the three months ended March 31, 2020, we issued four promissory notes to Arknet in the aggregate amount of $285,000. The notes mature between June 24, 2021 and August 10, 2021, bear interest at 5% (10% after maturity) and can convert to common stock between $0.0025 and $0.0040 per common share. We originally recorded discounts on these notes in the aggregate of $25,761, amortizing $1,924 during the three months ended March 31, 2020. The unamortized discount and net liabilities at March 31, 2020 for these four notes are $23,837 and $261,163, respectively.

Convertible notes payable

On January 29, 2019, we issued 3,623,055 to a certain Australian individual who made baseless claims against the Company other than two existing convertible promissory notes which the Company acknowledged. Rather than engage in a prolonged international legal matter, we issued these shares in complete satisfaction of any and all claims against the Company. We valued the shares at their grant date fair values, reduced unpaid principal and interest in the amount of $4,258 and $695, respectively, and recorded a $1,330 gain on this settlement.

During the three months ended March 31, 2020, we amortized $128,166 of debt discounts to interest expense, accrued $22,491 of interest on existing notes. Additionally during the three months ended March 31, 2020, we issued 4,652,089 common shares to extinguish a note payable in the amount of $2,331 and $460 of unpaid principal and interest, respectively, and recorded a loss on conversion of $27,448 in so doing.

At March 31, 2020, $32,000 of our third-party convertible notes payable and $27,825 of related-party convertible notes were in default.

Convertible notes payable (excluding related-party convertible notes which is discussed in Note 4) at March 31, 2020 and December 31, 2019 and their classification into long-term, short-term and in-default were as follows:

	03/31/20			12/31/19
All convertible promissory notes
Unpaid principal		1,510,155			1,578,917
Discounts		(454,776	)		(574,076	)
Convertible notes payable, net	$	1,055,379		$	1,004,841
Classified as short-term
Unpaid principal balance		1,478,155			1,183,685
Discounts		(454,776	)		(369,000	)
Convertible notes payable - short-term, net	$	1,023,379		$	814,685
Classified as long-term
Unpaid principal balance		-			363,232
Discounts		-			(205,076	)
Convertible notes payable - short-term, net	$	-		$	(158,156	)
Classified as in default
Unpaid principal balance		32,000			32,000
Discounts		-			-
Convertible notes payable - short-term, net	$	32,000		$	32,000

On May 2, 2019, the company entered into an amendment to one of the convertible promissory notes issued during 2018. The company allowed the creditor to own a larger percentage of the company’s total shares outstanding in exchange for a waiver of all default interest. As a result, we recorded a reduction of interest payable to this creditor and interest expense of $140,491. On July 19, 2019, we issued 30,414,329 shares to this creditor extinguishing all principal and interest owed to them.

Imputed Interest

Certain of our promissory notes bear no nominal interest. We therefore imputed interest expense and increased Additional Paid in Capital. For the three months ended March 31, 2020, we imputed $3,839 of such interest. Of this amount, $1,529 is imputed on amounts owed to Jon Leonard, our Chief Executive Officer, and $2,310 was imputed on twenty eight outstanding loans in Australia.

Derivative liabilities

The above-referenced convertible promissory notes issued during the three months ended March 31, 2020 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 certain fixed-rate convertible Subscription Notes from 2015 through March 31, 2020 in the United States and Australia 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 each quarterly period from March 31, 2018 through March 31, 2020. The following assumptions were used for the valuation of the derivative liability related to the Notes:

· The stock price of $0.0115 to $0.00290 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 146.0% – 258.3% (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 the instruments issued during the year ended December 31, 2019 range from 11% to 564%. The effective interest rates for the instruments issued during the three months ended March 31, 2020 range from 7% to 14%.

At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At March 31, 2020, we determined the fair value of these derivatives were $1,152,642.

Changes in outstanding derivative liabilities are as follows:

Balance, December 31, 2019	$	2,365,367
Changes due to new issuances		25,761
Changes due to extinguishments		(173	)
Changes due to adjustment to fair value		(1,238,313	)
Balance, March 31, 2020	$	1,152,642

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT - USD ($)	Total	Common Stock [Member]	Preferred Stock Series D [Member]	Preferred Stock Series E [Member]	Additional Paid-in Capital [Member]	Stock Payable [Member]	Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance, shares at Dec. 31, 2018		1,932,483,910	13,795,104
Balance, amount at Dec. 31, 2018	$ (2,747,386)	$ 19,325	$ 1,380		$ 4,692,609	$ 1,919,927	$ 96,202	$ (9,476,829)
Shares issued for conversion of debt, shares		1,551,562,038
Shares issued for conversion of debt, amount	701,570	$ 15,516			686,054
Shares issued to settle claims, shares		16,123,055
Shares issued to settle claims, amount	188,623	$ 161			188,462
Shares issued for stock payable, shares		4,291,886
Shares issued for stock payable, amount		$ 43			26,238	(26,281)
Shares earned by consultants	172,938					172,938
Proceeds from officer stock sale	13,750				13,750
Derivative associated with early debt retirement	471,233				471,233
Imputed interest	16,707				16,707
Effect of foreign currency exchange	1,837						1,837
Net loss	$ (3,390,816)							$ (3,390,816)
Balance, shares at Dec. 31, 2019		3,504,460,889	13,795,104
Balance, amount at Dec. 31, 2019	$ (4,571,544)	$ 35,045	$ 1,380		$ 6,095,053	$ 2,066,584	$ 98,039	$ (12,867,645)
Shares issued for conversion of debt, shares		4,652,089
Shares issued for conversion of debt, amount	30,239	$ 47			30,192
Shares earned by consultants	22,412					22,412
Derivative associated with early debt retirement	173				173
Imputed interest	3,839				3,839
Effect of foreign currency exchange	103,245						103,245
Net loss	841,577							$ 841,577
Issue Series E preferred shares, shares				40,000
Issue Series E preferred shares, amount				$ 4	$ 1,836,996	(1,837,000)
Legal settlement, amount	$ 145,000					$ 145,000
Balance, shares at Mar. 31, 2020		3,509,112,978	13,795,104	40,000
Balance, amount at Mar. 31, 2020	$ (3,425,059)	$ 35,092	$ 1,380	$ 4	$ 7,966,253	$ 396,996	$ 201,284	$ (12,026,068)

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Debt (Details 1)	3 Months Ended
	Mar. 31, 2020 USD ($)
Debt
Outstanding balance, beginning	$ 2,365,367
Changes due to new issuances	25,761
Changes due to extinguishments	(173)
Changes due to adjustment to fair value	(1,238,313)
Outstanding balance, ending	$ 1,152,642

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Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended
	Mar. 31, 2020 USD ($)
Organization and Nature of Business (Details Narrative)
Revenue Recognition	$ 2,616

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Income Taxes (Details Narrative)	3 Months Ended
	Mar. 31, 2020
Income Taxes
Operating loss carry-forwards expiration year	begin to expire in 2030