10-Q

UNITED STATES

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

OR

[  ] 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: 000-52942

BLUE LINE PROTECTION GROUP, INC.

(Exact name of registrant as specified in its charter)

Nevada	20-5543728
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5765 Logan St. Denver, CO	80216
(Address of principal executive offices)	(Zip Code)

(800) 844-5576

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

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 [  ] No [ X]

Indicate by a checkmark whether the registrant has submitted electronically, every Interactive Data File required to be submitted and posted 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 and post such files). Yes [  ] No [X]

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 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	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
		Emerging growth company	[  ]

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

As of November 25, 2020, the registrant had 822,357,428 outstanding shares of common stock.

 TABLE OF CONTENTS

		Page No.
	PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS.
	Consolidated Balance Sheets – As of March 31, 2020 (unaudited) and December 31, 2019	3
	Consolidated Statements of Operations – Three months months March 31, 2020 and 2019 (unaudited)	4
	Consolidated Statements of Cash Flows – Three  months ended March 31, 2020 and 2019 (unaudited)	5
	Consolidated Statements of Stockholders’ Deficit– Three  months ended March 31, 2020 and 2019 (unaudited)	6
	Notes to Financial Statements (Unaudited)	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	27
ITEM 4.	CONTROLS AND PROCEDURES.	29
	PART II. OTHER INFORMATION
ITEM 6.	EXHIBITS.	30

1

FORWARD-LOOKING STATEMENTS

The information in this report contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (“the Exchange Act”), which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this Form 10-Q are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in this Form 10-Q. You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

2

BLUE LINE PROTECTION GROUP, INC.

CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,
	2020			2019
	(unaudited)			(audited)
Assets
Current assets:
Cash and equivalents	$	97,213		$	45,113
Accounts receivable,		346,104			336,840
Prepaid expenses and deposits		11,980			11,980
Total current assets		455,297			393,933
Fixed assets:
Right to use assets		831,115			859,426
Machinery and equipment,  net of accumulated depreciation of $353,465 and $325,285, respectively		355,234			383,414
Security Deposit		31,840			32,158
Fixed assets of discontinued operations		2,782			2,782
Total fixed assets		1,220,971			1,277,780
Total assets		1,676,268			1,671,713
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued liabilities	$	960,330		$	1,052,275
Financed lease liabilities		77,013			88,712
Notes payable		185,000			185,000
Notes payable - related parties		799,512			726,847
Convertible notes payable		172,198			172,198
Convertible notes payable - related parties, net of unamortized discount of $0 and $8,710, respectively		1,830,217			1,821,507
Current portion of operating lease obligation		119,135			114,653
Derivative liabilities		1,455,411			1,170,060
Total current liabilities		5,598,816			5,331,252
Long-term liabilities:
Operating lease liability-long term		754,288			785,802
Total current liabilities		754,288			785,802
Total liabilities		6,353,104			6,117,054
Stockholders’ deficit:
Preferred Stock, $0.001 par value, 100,000,000 shares authorized, 20,000,000 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		20,000			20,000
Common Stock, $0.001 par value, 1,400,000,000 shares authorized, 793,357,428 and 793,357,428 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		793,360			793,360
Common Stock, owed but not issued, 12,923 shares and 12,923 shares as of March 31, 2020 and December 31, 2019, respectively		13			13
Additional paid-in capital		7,228,528			7,228,528
Accumulated deficit		(12,718,737	)		(12,487,242	)
Total stockholders’ deficit		(4,676,836	)		(4,445,341	)
Total liabilities and stockholders’ deficit	$	1,676,268		$	1,671,713

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

3

BLUE LINE PROTECTION GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended
	March 31,
	2020			2019
Revenue	$	991,462		$	928,609
Cost of revenue		(270,058	)		(530,117	)
Gross profit		721,404			398,492
Operating expenses:
General and administrative expenses		573,864			594,284
Total expenses		573,864			594,284
Operating Income (Loss)		147,540			(195,792	)
Other income (expenses):
Interest expense		(98,184	)		(518,950	)
Gain on settlement of accounts payable		4,500			-
Income / (Loss) on derivative		(285,351	)		145,906
Total other expenses		(379,035	)		(373,044	)
Net income / (loss)	$	(231,495	)	$	(568,836	)
Net loss per common share: Basic and Diluted	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding- Basic and Diluted		793,357,428			415,378,581

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

4

BLUE LINE PROTECTION GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the three months ended
	March 31,
	2020			2019
Operating activities
Net income / (loss)	$	(231,495	)	$	(568,836	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		28,180			31,082
Amortization of discounts on notes payable		8,710			437,913
Amortization of right to use		28,311			13,723
Loan fees		10,665			-
Noncash operating lease expense
Gain on settlement of accounts payable		(4,500	)		-
Loss on derivative liability		-			(145,906	)
Change in fair value of derivative liabilities		285,351			-
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(9,264	)		(15,425	)
(Increase) / decrease in deposits and prepaid expenses		318			494
Increase (decrease) in accounts payable and accrued liabilities		(25,445	)		28,236
Increase (decrease) in lease obligations		(27,032	)		(11,475	)
Net cash provided by (used in) operating activities		63,799			(230,194	)
Cash flows from investing activities
Purchase of fixed assets		-			(56,602	)
Net cash provided by/(used in) investing activities		-			(56,602	)
Financing activities
Proceeds from notes payable - related party		-			15,000
Proceeds from notes payable		24,000			75,000
Repayments from notes payable - related party		(24,000	)		(30,000	)
Proceeds from convertible notes payable - related party		-			300,000
Payments on auto loan		-			(1,027	)
Payments on capital leases		-			(39,720	)
Payments on convertible debt		(11,699	)		-
Net cash provided by financing activities		(11,699	)		319,253
Net increase in cash		52,100			32,457
Cash - beginning		45,113			15,862
Cash - ending	$	97,213		$	48,319
Supplemental disclosures of cash flow information:
Interest paid	$	-		$	-
Income taxes paid	$	-		$	-
Debt discount due to derivative liability	$	-		$	-
Non-cash investing and financing activities:
Debt discount due to derivative liability	$	-		$	371,172
Common stock issued for conversion of debt and interest	$	-		$	78,376
Derivative resolution	$	-		$	138,610
Accounts payable converted to notes payable - related party	$	62,000		$	-
Right of use assets and operating lease obligations recognized	$	-		$	650,152
Financed lease assets	$	-		$	64,354

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

5

BLUE LINE PROTECTION GROUP, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(unaudited)

									Additional
	Preferred Stock				Common Stock				Paid-in			Stock		Accumulated			Stockholders’
	Shares		Amount		Shares		Amount		Capital			Payable		Deficit			Deficit
Balance, December 31, 2018		20,000,000	$	20,000		368,468,701	$	368,469	$	7,107,400		$	13	$	(10,878,959	)	$	(3,383,077	)
Derivative resolution		-		-		-		-		138,610			-		-			138,610
Common stock issued for conversion of debt and accrued interest		-		-		98,898,873		98,899		(20,523	)		-		-			78,376
Net loss for the three months ended March 21, 2019		-		-		-		-		-			-		(568,836	)		(568,836	)
Balance, March 31, 2019		20,000,000	$	20,000		467,367,574	$	467,368	$	7,225,487		$	13	$	(11,447,795	)	$	(3,734,927	)
Balance, December 31, 2019		20,000,000	$	20,000		793,357,428	$	793,360	$	7,228,528		$	13	$	(12,487,242	)	$	(4,445,341	)
Net loss for the three months ended March 31, 2020		-		-		-		-		-			-		(231,495	)		(231,495	)
Balance, March 31, 2020		20,000,000	$	20,000		793,357,428	$	793,360	$	7,228,528		$	13	$	(12,718,737	)	$	(4,676,836	)

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

6

Blue Line Protection Group, Inc.

Notes to Unaudited Consolidated Financial Statements

Note 1 – History and organization of the company

The Company was originally organized on September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc. The Company was authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share.

On March 14, 2014, the Company acquired Blue Line Protection Group, Inc., a Colorado corporation formed in February 2014 (“Blue Line Colorado”), as a wholly-owned subsidiary of the Company. Blue Line Colorado provides protection, compliance, and financial services to the lawful cannabis industry.

On May 2, 2014, the Company changed its name from The Engraving Masters, Inc. to Blue Line Protection Group, Inc. (“BLPG”)

On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the authorized capital of the Company concurrently increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split.

The Company provides armed protection, logistics, and compliance services for businesses engaged in the legal cannabis industry. The Company offers asset logistic services, such as armored transportation service; security services, including shipment protection, money escorts, security monitoring, asset vaulting, VIP and dignitary protection, financial services, such as handling transportation and storage of currency; training; and compliance services.

Note 2 – Accounting policies and procedures

Interim financial statements

The unaudited interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, these statements reflect all adjustments, all of which are of a normal recurring nature, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2019 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Principles of consolidation

For the three months ended March 31, 2020 and 2019, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (formerly The Engraving Masters, Inc.), Blue Line Advisory Services, Inc. (a Nevada corporation; “BLAS”), Blue Line Capital, Inc. (a Colorado corporation; “Blue Line Capital”), Blue Line Protection Group (California), Inc. (a California corporation; “Blue Line California”), Blue Line Colorado, Blue Line Protection Group Illinois, Inc. (an Illinois corporation; “Blue Line Illinois”), BLPG, Inc. (a Nevada corporation; “Blue Line Nevada”), Blue Line Protection Group (Washington), Inc. (a Washington corporation; “Blue Line Washington”). All significant intercompany balances and transactions have been eliminated. BLPG and its subsidiaries are collectively referred herein to as the “Company.”

7

Basis of presentation

The financial statements present the balance sheets, statements of operations, stockholder’s equity (deficit) and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

The Company has adopted December 31 as its fiscal year end.

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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

The Company maintains a cash balance in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of March 31, 2020 and December 31, 2019.

Accounts receivable

Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote.

Allowance for uncollectible accounts

The Company estimates losses on receivables based on known troubled accounts, if any, and historical experience of losses incurred. There was no allowance for doubtful customer receivables at March 31, 2020 and December 31, 2019.

Property and equipment

Property and equipment is recorded at cost and capitalized from the initial date of service. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows:

Automotive Vehicles	5 years
Furniture and Equipment	7 years
Buildings and Improvements	15 years

8

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as March 31, 2020 and December 31, 2019. Depreciation expense for the three months ended March 31, 2020 and March 31, 2019, is $28,180 and $31,082, respectively.

Impairment of long-lived assets

The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost or carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and its fair value or disposable value. As of March 31, 2020 and December 31, 2019, the Company determined that none of its long-term assets were impaired.

Concentration of business and credit risk

The Company has no significant off-balance sheet risks such as foreign exchange contracts, option contracts or other hedging arrangements. The Company’s financial instruments that are exposed to concentration of credit risks consist primarily of cash. The Company maintains its cash in bank accounts, which may at times, exceed federally insured limits.

The Company had three major customers which generated 19%, 14% and 10%, respectively, for a total of approximately 43% of total revenue in the three months ended March 31, 2020.

The Company had one major customer which generated approximately 18% of total revenue in the three months ended March 31, 2019.

Related party transactions

FASB ASC 850, “Related Party Disclosures” requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. Related parties are defined to include any principal owner, director or executive officer of the Company and any immediate family members of a principal owner, director or executive officer.

Fair value of financial instruments

The carrying amounts reflected in the balance sheets for cash, accounts payable and related party payables approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

9

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table presents the derivative financial instruments, the Company’s only financial liabilities, measured and recorded at fair value on the Company’s consolidated balance sheet on a recurring basis, and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

March 31, 2020

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,455,129	$	-	$	-	$	1,455,129
Warrant derivative liabilities	$	282	$	-	$	-	$	282
Total	$	1,455,411	$	-	$	-	$	1,455,411

December 31, 2019

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,169,515	$	-	$	-	$	1,695,515
Warrant derivative liabilities	$	545	$	-	$	-	$	545
Total	$	1,170,060	$	-	$	-	$	1,170,060

The embedded conversion feature in the convertible debt instruments that the Company issued, that became convertible qualified them as derivative instruments since the number of shares issuable under the notes are indeterminate based on guidance in FASB ASC 815, Derivatives and Hedging. These convertible notes tainted all other equity linked instruments including outstanding warrants and fixed rate convertible debt on the date that the instrument became convertible. The valuation of the derivative liability of the warrants was determined through the use of Black Scholes option-pricing model (See Note 8).

Revenue Recognition

The Company recognizes revenue when delivery of the promised goods or services is transferred to its customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services. We determine revenue recognition through the following five steps:

● Identify the contract with the customer;

● Identify the performance obligations in the contract;

10

● Determine the transaction price;

● Allocate the transaction price to the performance obligations in the contract; and

● Recognize revenue when, or as, the performance obligations are satisfied.

We generate substantially all our revenue from providing services to customers. The Company records revenue with the 5 steps above have been completed.

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company adopted these standards at the beginning of the first quarter of fiscal 2018 using the modified retrospective method. The adoption of these standards did not have an impact on the Company’s Statements of Operations in for the year ended December 31, 2018.

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics. Revenue is characterized by several lines of services and typically the pricing is fixed.

Three months ended March 31,
Revenue Breakdown by Streams	2020		2019
Service: Guards	$	-	$	267,734
Service: Transportation		518,728		22,865
Service: Currency Processing		458,667		355,237
Service: Compliance		14,067		12,248
Other		-		525
Total	$	991,462	$	928,609

As of December 31, 2019 the Company discontinued its Service-Guards segment.

Advertising costs

The Company expenses all costs of advertising as incurred. There were $3,075 and $3,770 in advertising costs for the three months ended March 31, 2020 and 2019, respectively.

General and administrative expenses

The significant components of general and administrative expenses consist mainly of rent and compensation.

Share-Based Compensation

Share-based compensation expense is recorded as a result of stock options granted in return for services rendered. Previously, the share-based payment arrangements with employees were accounted for under ASC 718, while nonemployee share-based payments issued for goods and services are accounted for under ASC 505-50. ASC 505-50 differs significantly from ASC 718. On June 20, 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company has adopted the new standard and has made some adjustment with regard to the share-based compensation costs. Under the ASU 2018-07, the measurement of equity-classified nonemployee share-based payments is generally fixed on the grant date and the options are no longer revalued on each reporting date. The expenses related to the share-based compensation are recognized on each reporting date. The amount is calculated as the difference between total expenses incurred and the total expenses already recognized.

(Redundant. See next page)

11

Cost of Revenue

The Company’s cost of revenue primarily consists of labor, fuel costs and items purchased by the Company specifically purposed for the benefit of the Company’s client.

Basic and Diluted Earnings per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the periods presented all common stock equivalents were excluded from the calculation of diluted loss per share as their effect would be anti-dilutive.

Dividends

The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception.

Income Taxes

The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

Recent Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which will amend current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. This standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019 but without retrospective application. Therefore, there was no impact recorded to beginning retained earnings or the statement of operations

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The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

Note 3 – Going concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has a net loss, accumulated deficit and had a working capital deficit as of March 31, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These financial statements do not include any adjustments that might arise from this uncertainty.

Note 4 – Commitments and contingencies

Contingencies

On November 6, 2015, Daniel Sullivan sent a wage claim demand. Mr. Sullivan purports to have had an Independent Contractor Agreement with the Company which provides he is entitled to certain compensation and to be reimbursed for Company expenses. The demand claims unpaid compensation in the amount of $8,055 and unreimbursed expenses in the amount of $154,409. The Company denies the agreement was ever signed. As of March 31, 2020 and December 31, 2019 the Company accrued a total of $34,346 and $34,346, respectively of contingent liabilities. If litigation is commenced the Company will defend any claims by Mr. Sullivan.

Mile High Real Estate Group, an entity owned by Mr. Sullivan, sent correspondence stating the Mr. Sullivan and/or Mile High Real Estate loaned the Company either directly or directly to contractors, material suppliers or utilities for operating and building remodeling in the amount of $98,150. Counsel for Mr. Sullivan stated that he was still compiling information. The Company is investigating whether Mr. Sullivan and/or Mile High Real Estate Group ever made the alleged loans. The Company will defend any claims of Mile High Real Estate Group. As of March 31, 2020 and December 31, 2019 the Company accrued a total of $98,150.

On April 14, 2016, the Company entered into an agreement with an unrelated third party to provide the Company with investor relations services. Upon signing the agreement, the Company paid the investor relations consultant $75,000 and agreed to issue the consultant 1,500,000 shares of its restricted common stock. The agreement requires the Company to pay the consultant an additional $75,000 prior to June 14, 2016. The Company cancelled the agreement and is of the opinion that the shares are not owed to the consultant. As of March 31, 2020 and December 31, 2019 there was no payable recorded.

During the three months ended March 31, 2020 the Company recorded a gain of $4,500 for settlement of a vendor payable.

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Finance leases

On April 25, 2018, the Company recorded finance lease obligation for a leased a vehicle for $38,388. The Company made a down payment of $7,500 and agreed to make 36 monthly payment of $1,015.78 including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On August 16, 2018, the Company recorded finance lease obligation for a leased a vehicle for $58,476. The Company made a down payment of $20,000 and an additional $10,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,265.30, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On August 16, 2018, the Company recorded finance lease obligation for a leased a vehicle for $58,476. The Company made a down payment of $20,000 and an additional $10,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,265.30, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On March 1, 2019, the Company recorded finance lease obligation for a leased a vehicle for $64,354. The Company made a down payment of $30,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,129.76, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

Future minimum lease payments as of March 31, 2020:
2020	$	44,415
2021		30,338
2022 and thereafter		2,260
Total minimum lease payments	$	77,013

Operating Leases

On October 27, 2016 the Company sold its building located at 5765 Logan Street Denver, Colorado to an unrelated third party for $1,400,000. The Company repaid the mortgage on the building in the amount of $677,681. After the sale, the Company leased the building from the purchaser of the property. The lease is for an initial term of ten years, with the Company having the option to extend the term of the lease for two additional five-year periods. The lease requires rental payments of $10,000 per month and will increase 2% annually. The Company paid a $30,000 deposit at the inception of the lease

On May 29, 2018 the Company leased a building located at 4328 E. Magnolia Street, Phoenix, Arizona. The lease is for an initial term of one years, with the Company having the option to extend the term of the lease for additional four year periods. The lease requires rental payments of $3,880 per month and will increase 2% annually. The Company paid a $4,369 deposit at the inception of the lease.

On January 22, 2019 the Company leased a building located at 7490 Bridgewater Road, Huber Heights, Ohio the lease is for an initial term of 63 months. The lease requires rental payments of $3,200 per month and will increase to $3,400 between months 28 through 63. The Company paid a $3,200 deposit at the inception of the lease

The Company adopted ASC 842 and recorded right of use asset and operating lease liability of $1,082,241. The company used 12% as incremental borrowing rate as is the average interest rate of the company’s outstanding third party note. The lease agreement gives the Company the option to renew it for two additional 5 year terms but the Company did not consider it likely to exercise that option. Therefore, the company did not include such amounts in its computations of the present value of remaining lease payment on adoption date.

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Supplemental balance sheet information related to leases is as follows:

Operating Leases	Classification	March 31, 2020
Right-of-use assets	Operating right of use assets	$	831,115
Current lease liabilities	Current operating lease liabilities		119,135
Non-current lease liabilities	Long-term operating lease liabilities		754,288
Total lease liabilities		$	873,423

Lease term and discount rate were as follows:

	March 31, 2020
Weighted average remaining lease term (years)		5.00
Weighted average discount rate		12	%

The following summarizes lease expenses for the year ended March 31, 2020:

Finance lease expenses:

Depreciation/amortization expense	$	28,311
Interest on lease liabilities		26,745
Finance lease expense	$	55,056

Supplemental disclosures of cash flow information related to leases were as follows:

	March 31, 2020
Cash paid for operating lease liabilities	$	28,311
Operating right of use assets obtained in exchange for operating lease liabilities	$	-

Maturities of lease liabilities were as follows as of March 31, 2020:

	Operating Leases
2020	$	161,531
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,214,340
Less: Imputed interest		(340,917	)
Present value of lease liabilities	$	873,423

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December 31, 2019

Operating Leases	Classification	December 31, 2019
Right-of-use assets	Operating right of use assets	$	859,426
Current lease liabilities	Current operating lease liabilities		114,653
Non-current lease liabilities	Long-term operating lease liabilities		785,802
Total lease liabilities		$	900,455

Lease term and discount rate were as follows:

	December 31, 2019
Weighted average remaining lease term (years)		5.26
Weighted average discount rate		12	%

The following summarizes lease expenses for the year ended December 31, 2019:

Finance lease expenses:

Depreciation/amortization expense	$	189,290
Interest on lease liabilities		6,009
Finance lease expense	$	195,299

Supplemental disclosures of cash flow information related to leases were as follows:

	December 31, 2019
Cash paid for operating lease liabilities	$	155,549
Operating right of use assets obtained in exchange for operating lease liabilities	$	1,082,241

Maturities of lease liabilities were as follows as of December 31, 2019:

	Operating Leases
2020	$	216,587
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,269,396
Less: Imputed interest		(368,941	)
Present value of lease liabilities	$	900,455

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Note 5 – Fixed assets

Machinery and equipment consisted of the following at:

	March 31, 2020			December 31, 2019
Automotive vehicles	$	381,844		$	381,844
Furniture and equipment		85,435			85,435
Machinery and Equipment		135,706			135,706
Leasehold improvements		105,714			105,714
Fixed assets, total		708,699			708,699
Total : accumulated depreciation		(353,465	)		(325,285	)
Fixed assets, net	$	355,234		$	383,414

Total depreciation expenses for the three months ended March 31, 2020 and March 31, 2019 were $28,120 and $31,082, respectively.

Note 6 – Notes payable

Notes payable to non-related parties

During February 2015, the Company borrowed $50,000 from a non-affiliated person. The loan is due and payable on April 6, 2015 and is now payable on demand with interest at 10% per annum. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $50,000 and $50,000, respectively. The note is currently past due.

During April 2015, the Company borrowed $25,000 from a non-affiliated person. The loan is due and payable May 1, 2015 with interest at 6% per year and has a 5% per month penalty upon default. As of March 31, 2920 and December 31, 2019, the principal balance owed on this loan was $25,000 and $25,000, respectively. The note is currently past due.

On January 5, 2016, the Company borrowed $10,000 from a non-affiliated person. The loan was due and payable on January 5, 2017 and bore interest at 5% per annum and has a 5% per month penalty upon default. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $10,000 and $10,000, respectively. The note is currently past due.

On May 15, 2019 the Company entered in a 12% promissory loan with Helix Funding, LLC for the Principle amount of $100,000. The note matures on November 1, 2019. The note is currently past due.

Convertible notes payable to non-related party

On October 18, 2017, the Company borrowed $150,000 from an unrelated third party. The Company paid $15,250 of fees associated with the loan, which was recorded as discount and to be amortized over the term of the debt and was fully amortized as of December 31, 2018. The loan bears interest at a rate of 10% (default interest 24%) and has a maturity date of July 16, 2018. The Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The conversion price is the lesser of (1) lowest trading price during the previous 25 days prior to the note agreement or (2) 50% lowest trading price during the 25 days prior to conversion. Covenants: The Borrower shall not, without the Holder’s consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business. During the year ended December 31, 2018 the Company paid $150,000 to extend the maturity date until May 11, 2019. During the year months ended December 31, 2019 the Company paid an $75,000 of extension fees. The note was discounted for a derivative (see note 8 for details) and the discount of $134,750 is being amortized over the life of the note using the effective interest method which was fully amortized as of December 31, 2018. During the year ended December 31, 2019 the holder converted $39,478 of accrued interest into 217,882,455 shares of common stock resulting in a loss of $61,624. As of March 31, 2020 and December 31, 2019 the balance outstanding on the loan is $150,000.

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On January 2, 2018 the Company borrowed $30,000 from an unrelated third party. The Company paid $2,000 of fees associated with the loan and the Company amortized $1,989 as of December 31, 2018. The loan has a maturity date of January 2, 2019 and bears interest at the rate of 12% (default interest lesser of 15% or maximum permitted by law). The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion. The note was discounted for a derivative (see note 8 for details) and the discount of $28,000 is being amortized over the life of the note using the effective interest method resulting in $27,847 of interest expense for the year ended December 31, 2018. On February 24, 2019, the remaining balance of the note payable in the amount of $9,373, fees of $500 and accrued interest of $2,625 were converted into 18,380,000 shares of common stock. During the year ended December 31, 2019 the Company recorded amortization expense of $164 and a loss on conversion of $10,527.

On January 25, 2018 the Company borrowed $150,000 from an unrelated third party. The Company paid $7,500 of fees associated with the loan, which was recorded as discount and to be amortized over the term of the debt the Company amortized $6,986 as of December 31, 2018. The loan has a maturity date of January 25, 2019 and bears interest at the rate of 12% per year. If the loan is not paid when due, any unpaid amount will bear interest at 18% per year. The Lender is entitled, at its option, at any time after July 24, 2018 to convert all or any part of the outstanding and unpaid principal and accrued interest into shares of the Company’s common stock at a price per share equal to 55% of the average of the lowest trading price for the 20 trading days immediately preceding the conversion date. On July 24, 2018, the Company recorded a discount of $142,500 and recorded day one loss due to derivative of $74,900 As during the year ended December 31, 2018 the principal of $85,149 converted into a total of 33,375,972 shares of common stock. During the year ended December 31, 2019 the remaining balance of $64,881 and accrued interest was converted into a total of 104,466,022 shares of common stock. The Company also recorded amortization of debt discount (from derivative) of $132,740 during the year ended December 31, 2018. During the year ended December 31, 2019 the Company recorded amortization expense of $9,863. The conversion resulted in a loss of $2,532.

On March 21, 2018, the Company borrowed $45,000 from an unrelated third party. The Company paid $4,500 of fees associated with the loan and had amortized $3,514 of the costs as of December 31, 2018. The note bears an interest rate: 12% (default interest lesser of 15% or maximum permitted by law) and matures on March 21, 2019. The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion. Covenants: The Borrower shall not, without the Holder’s consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business. The note was discounted for a derivative (see note 8 for details) and the discount of $40,500 is being amortized over the life of the note using the effective interest method resulting in $31,623 of interest expense for the year ended December 31, 2018. During the year ended December 31, 2019 $23,223 of principle and interest were converted into 84,160,250 shares of common stock resulting in a loss of $32,858. During the year ended December 31, 2019 the Company recorded amortization expense of $9,863. As of March 31, 2020 and December 31, 2019 there was a balance remaining on the loan of $22,198.

During the three months ended March 31, 2020, the Company recognized amortization expense of $8,710 of discount from derivative liabilities.

During the three months ended March 31, 2019, the Company recognized amortization expense of $1,511 from deferred financing cost and amortization expense of $18,790 of discount from derivative liabilities.

Note 7 – Notes payable – related parties

On July 31, 2014, the Company borrowed $98,150 from an entity controlled by an officer and shareholder of the Company. The loan is due and payable on demand and bears no interest. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan is $98,150 and $98,150, respectively.

As of December 31, 2014, a related party loaned the Company $10,000, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. During the year ended December 31, 2015 the Company borrowed an additional $20,000. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $30,000 and $30,000, respectively.

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As of December 31, 2014, a related party loaned the Company $180,121, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. The Company repaid $125,500 towards this note during 2015 and as of March 31, 2020 and December 31, 2019; the principal balance owed on this loan was $54,621 and $54,621, respectively.

During October 2015, the Company borrowed $30,000 from an entity controlled by an officer of the Company. The loan is due and payable on demand and is non-interest bearing. During the year ended December 31, 2017, the Company repaid $251,363 and borrowed an additional $265,363 from the same related party. On March 10, 2020 the Company entered into an additional note payable in the amount of $102,665 for severance As of March 31, 2020 and December 31, 2019 the principal balance outstanding is $102,665 and $20,000, respectively.

During the year ended December 31, 2018 the Company repaid $121,500 and borrowed an additional $184,500 from the same related party. During year ended December 31, 2019 the Company borrowed an additional $22,500 and repaid a total of $49,500. During the three months ended March 31, 2020 the Company repaid $24,000 and borrowed an additional $24,000 from the same related party and reclassed $65,000 from accounts payable to a note payable. The Company recorded a loan of $10,665 on the transaction. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $102,665 and $30,000, respectively.

On July 7, 2016, the Company borrowed $73,000 from a related party. The loan was due and payable on July 7, 2017 and bore interest at 5% per annum. The holder of the note has agreed to extend the default date of the note to September 30, 2018. As of and March 31, 2020 and December 31, 2019 the note is currently in default.

On August 8, 2016, the Company entered into a promissory note with Hypur Inc., a Nevada Corporation, a related party, pursuant to which the Company borrowed $52,000. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower The loan was due and payable on August 10, 2017 and bore interest at 18% per annum. The principal balance owed on this loan at March 31, 20120 and December 31, 2019 was $52,000 and $52,000, respectively. The Note is currently in default at bears a default rate of interest of 24% per annum as part of the default terms of this note. Upon default, if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. The notes are in default as of March 31, 2020 and December 31, 2019, but the holder has agreed to waive the 150% redemption price default term.

On September 20, 2016, the Company borrowed $47,500 from Hypur Inc., which is a related party. The loan is due and payable on December 20, 2016 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $47,500 and $47,500, respectively. The loan is currently past due and in default. The Note is currently in default at bears a default rate of interest of 24% per annum as part of the default terms of this note. Upon default, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. The notes are in default as of March 31, 2020 and December 31, 2019, but the holder has agreed to waive the 150% redemption price default term.

On October 29, 2018, the Company borrowed $100,000 from Hypur Inc., which is a related party. The loan is due and payable on January 28, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $89,350 is being amortized over the life of the note using the effective interest method resulting in $89,350 of interest expense for the year ended December 31, 2019. As of March 31, 2020 December 31, 2019 the note is currently in default.

On November 21, 2018, the Company borrowed $70,000 from Hypur Inc., which is a related party. The loan is due and payable on February 19, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $70,000 and $70,000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $55,830 is being amortized over the life of the note using the effective interest method resulting in $55,830 of interest expense for the year ended December 31, 2019. As of March 31, 2020 December 31, 2019 the note is currently in default.

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On November 26, 2018, the Company borrowed $75,000 from Hypur Inc., which is a related party. The loan is due and payable on February 24, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000 and $75.000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $58,913 is being amortized over the life of the note using the effective interest method resulting in $58,913 of interest expense for the year ended December 31, 2019. As of March 31, 2020 and December 31, 2019 the Note is currently in default.

On May 10, 2019, the Company borrowed $75,000 from Hypur Inc., which is a related party. The loan is due and payable on May 12, 2020 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000.

On September 3, 2019, the Company borrowed $21,000 from Hypur Inc., which is a related party. The loan is due and payable on December 3, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $21,000.

Convertible notes payable to related party

In November 2015, the Company entered into an arrangement with a related party, whereby the Company borrowed $25,000 in Convertible Notes. The Convertible Note bears interest at a rate of 5% per annum and payable quarterly in arrears and matures twelve months from the date of issuance, and is convertible into shares of the Company’s common stock at a per share conversion price equal to $0.025. The note was due on November 4, 2016. In December 2015 the lender loaned the Company an additional $20,000 with same terms except that it is payable upon demand. As of March 31, 2020 and December 31, 2019, the Company owed a total of $45,000 and $45,000, respectively. The holder of the note has agreed to extend the default date of the note to September 30, 2018. As of March 31, 202 and December 31, 2019 the note is currently in default.

In July 2015, the Company entered into an arrangement with a related party, whereby the Company could borrow up to $500,000 in Convertible Notes. The Convertible Note bears interest at a rate of 5% per annum and payable quarterly in arrears and matures twelve months from the date of issuance, and is convertible into shares of the Company’s common stock at a per share conversion price equal to $0.025. Upon the occurrence and during the continuation of an event of default, the holder may require the Company to redeem all or any portion of this Note in cash at a price equal to 150% of the principal amount. During the year ended December 31, 2017, the Company borrowed an additional $110,000. As of March 31, 2020 and December 31, 2019, the Company owed a total of $500,000 and $500,000, respectively. Since the debt holder has not elect the right to require the Company to redeem the note at a price equal to 150% of the principal amount, the terms stated prior to maturity are still in effect. The holder has waived the default term and the note is not considered to be in default as of March 31, 2020 and December 31, 2019.

On September 1, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $75,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000 and $75,000, respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

20

On October 14, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) and a related party, pursuant to which the Company borrowed $100,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

On March 7, 2017, the Company borrowed $100,000 from Hypur Ventures, L.P., a related party. The loan is due 180 days from March 7, 2017 and bears interest at 10% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.50 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000 respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

On May 26, 2017, the Company borrowed $100,000 from CGDK, a related party. The loan is due 360 days from May 26, 2017 and bears interest at 5% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.025 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. As of March 31, 2020 and December 31, 2019 the note was currently in default.

On July 13, 2017, the Company borrowed $150,000 from CGDK, a related party. The loan is due 360 days from July 13, 2017, and bears interest at 5% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $150,000. The conversion feature has been waved through October 15, 2019. As of March 31, 2020 and December 31, 2019, the note is currently in default.

On April 13, 2018, the Company borrowed $130,000 from CGDK, a related party. The loan is due 360 days from April 13, 2018, bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The Company recorded a discount of $101,272 due to derivative. The Company amortized $72,694 in debt discounts during the year ended December 31, 2018. The Company amortized $27,560 in debt discounts during the nine months ended September 30, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $130,000 and $130,000, respectively. On November 5, 2019 CGDK waived the default provision until April 13, 2020.

On June 14, 2018, the Company issued a $30,217 to CGDK, a related party, for previous expenses paid on behalf of the Company. The loan is due 360 days from June 18, 2018, bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The Company recorded a debt discount of $10,292 due to derivative. During the year ended December 31, 2018 the Company amortized $5,639 of the discount. The Company amortized $3,697 in debt discounts during the nine months ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $30,217 and $30,217, respectively. On November 5, 2019 CGDK waived the default provision until June 14, 2020.

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On July 2, 2018, the Company borrowed $150,000 from CGDK, a related party. The loan is due July 2, 2019 and bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.10 per share during any ten-day period or the trading volume of the Company’s common stock during these ten trading days was at least 2,500,000 shares. The Company recorded a debt discount of $19,779 due to derivative. During the year ended December 31, 2018 the Company amortized $9,862 of the discount. The Company amortized $7,390 in debt discounts during the year ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $150,000 and $150,000, respectively. On November 5, 2019 CGDK waived the default provision until July 2, 2020.

On August 6, 2018, the Company borrowed $150,000 from CGDK, a related party. The loan is due July 2, 2019 and bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.10 per share during any ten-day period or the trading volume of the Company’s common stock during these ten trading days was at least 2,500,000 shares. The Company recorded a debt discount of $20,095 due to derivative. During the year ended December 31, 2018 the Company amortized $8,093 of the discount. The Company amortized $7,793 in debt discounts during the year ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $150,000 and $150,000, respectively. On November 5, 2019 CGDK waived the default provision until August 6, 2020.

On January 18, 2019, the Company entered into, a convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $250,000. The loan was due 10 days from the date of issuance and bears interest at 18% per annum. The note is convertible into common stock at a price at the lower of $.0002 per share or 60% of the closing price of the common stock prior to conversion. Upon default, the note bears a default rate of interest of 24% per annum. The note was discounted for a derivative (see note 8 for details) and the discount of $167,079 is being amortized over the life of the note using the effective interest method resulting in $167,079 of interest expense for the year ended December 31, 2019. As of March 31, 2020 and December 31, 2019 the note is currently in default.

On March 5, 2019, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $50,000. The loan was due 10 days from the date of issuance and bears interest at 18% per annum. The note is convertible into common stock at a price at the lower of $.0002 per share or 60% of the closing price of the common stock prior to conversion. Upon default, the note bears a default rate of interest of 24% per annum. As of March 31, 2020 and December 31, 2019 the note is currently in default.

The carrying amount of the convertible note, net of the unamortized debt discount, at March 31, 2020 and December 31, 2019 is $1,830,217 and $1,821,507, respectively. Total unamortized debt discount at March 31, 2020 and December 31, 2019 was $0 and $8,710, respectively.

On October 1, 2017, these notes were tainted by the variable conversion price notes and remained tainted as of December 31, 2019. The Company re-measured the fair value of derivative liabilities on March 31, 2020 and December 31, 2019. See Note 8.

NOTE 8 – Derivative Liability

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

The derivative liability in connection with the conversion feature of the convertible debt is measured using, level 3 inputs.

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The change in the fair value of derivative liabilities is as follows:

Balance - December 31, 2018	$	727,332
Addition of new derivative as a derivative loss
Settlement of derivatives upon conversion		(292,611	)
Debt discount from derivative liability		383,265
Loss on change in fair value of the derivative		352,074
Balance - December 31, 2019	$	1,170,060
Loss on change in fair value of the derivative		285,351
Balance – March 31, 2020	$	1,455,411

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date:

	Three Months ended March 31, 2020		Year ended December 31, 2019
Expected term	0.01 – 1.42 years		0.01 – 1.67 years
Expected average volatility	142% – 361.46	%	24.93% – 270.08	%
Expected dividend yield	-		-
Risk-free interest rate	0.09% – 0.15	%	1.55% – 1.60	%

Note 9 – Stockholders’ equity

The Company was originally authorized to issue 100,000,000 shares of common stock and 100,000,000 shares of preferred stock. On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the number of authorized shares increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and these notes thereto have been retroactively restated to reflect the forward stock split.

Common stock

During the year ended December 31, 2019 the Company issued a total of 424,888,727 shares of common stock for the conversion of $157,960 of convertibles loans, accrued interest, and fees. The Company recorded on a loss on conversion of $107,541.

Preferred stock

On May 3, 2016, the Company entered into, an agreement with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company sold to Hypur Ventures, in a private placement, 10,000,000 shares of the Company’s preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for gross proceeds of $500,000. The shares of preferred stock are convertible into shares of the Company’s common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Nevada Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $114,229. The beneficial conversion feature was fully amortized and recorded as a deemed dividend.

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Between July and August of 2016 Hypur Ventures purchased an additional 10,000,000 shares of the Company’s preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for net proceeds of $445,000, net of legal fees of $55,000. The shares of preferred stock are convertible into shares of the Company’s common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Nevada Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it does not contain a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $0. The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company’s common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights.

The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company’s common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights.

The Company has reserved thirty million shares of common stock that may be issued upon the conversion and/or exercise of the preferred stock and the warrants. The preferred stock sold to Hypur Ventures will be subject to the terms and conditions of the Certificate of Designation, as well as further documentation to be drafted in accordance with the terms and conditions agreed upon between the Company and Hypur Ventures.

Note 10 – Options and warrants

Options

All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award is estimated using a Black-Scholes-Merton option valuation model. The Company has not paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes-Merton option valuation model. Volatility is an estimate based on the calculated historical volatility of similar entities in industry, in size and in financial leverage, whose share prices are publicly available. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company has no historical experience with which to establish a basis for determining an expected life of these awards. Therefore, the Company only gave consideration to the contractual terms and did not consider the vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures significant to the expected life of the option award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term equal to the expected life of the award.

On December 28, 2016, the Company issued stock options to various offices and employees of the Company to purchase 7,950,000 shares of the Company’s common stock at an exercise price of $0.05 per share. The options vest immediately. The options carry a life of three years and have since expired.

During the year ended December 31, 2018 a total of 466,667 stock options were forfeited by various employees of the Company.

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The following is a summary of the Company’s stock option activity for the three months ended March 31, 2020 and year ended December, 31 2019:

	Number Of Shares			Weighted-Average Exercise Price
Outstanding at December 31, 2018		24,011,738		$	0.11
Granted		-		$	-
Expired		-		$	-
Cancelled		-		$	-
Outstanding at December 31, 2019		24,011,738		$	0.11
Granted		-		$	-
Expired (1)		(7,950,000	)	$	0.05
Cancelled		-		$	-
Outstanding at March 31. 2020		16,061,738		$	0.14
Options exercisable at December 31, 2019		24,011,738		$	0.11
Options exercisable at March 31, 2020		16,061,738		$	0.14

The following tables summarize information about stock options outstanding and exercisable at March 31, 2020 and December 31, 2019:

OPTIONS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		16,061,738		.30	$	0.11		10,061,738	$	0.11

OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		24,011,738		.30	$	0.11		24,011,738	$	0.11

Total stock-based compensation expense in connection with options and modified awards recognized in the consolidated statement of operations for three months ended March 31, 2020 and 2019 was $0 and $0 respectively.

Warrants

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2020:

	Number Of Shares		Weighted-Average Exercise Price
Outstanding at December 31, 2019		10,000,000	$	0.10
Granted		-	$	-
Exercised		-	$	-
Cancelled		-	$	-
Outstanding at March 31, 2020		10,000,000	$	0.10
Warrants exercisable at December 31, 2019		10,000,000	$	0.10
Warrants exercisable at March 31, 2020		10,000,000	$	0.10

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The following tables summarize information about warrants outstanding and exercisable at March 31, 2020 and December 31, 2019:

WARRANTS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.32	$	0.10		10,000,000	$	0.10

WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.52	$	0.10		10,000,000	$	0.10

Note 12 – Subsequent events

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined there are no additional events required to be disclosed.

Os September 18, 2020 Crown Bridge Partners, LLC, converted notes payable in the amount of $2,980 principal and $500 of fees into 29,000,000 shares of common stock

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PART I

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

You should read the following discussion and analysis of financial condition and results of operations in conjunction with the consolidated financial statements and related notes appearing elsewhere in this Report.

We were originally incorporated in Nevada on September 11, 2006, under the name The Engraving Masters, Inc. (the “Company”).

On May 2, 2014, we changed our name to Blue Line Protection Group, Inc.

We provide armed protection and transportation, banking, compliance and training services for businesses engaged in the legal cannabis industry. During the three months ended March 31, 2020, substantially all of our revenue was derived from transportation and currency processing services.

It is estimated that the total market for marijuana, legal or otherwise, will exceed the economic value of corn and wheat combined. Marijuana is widely considered the largest cash crop in the United States. Businesses have been positioning themselves for years, each trying to establish a leadership position in the legal marijuana industry.

Cultivation facilities are the producers of legal cannabis that eventually make its way to consumers. Growers’ operations typically span a large geographic footprint, making them susceptible to theft, as are shipments from the growers to testing laboratories or to retail dispensaries. Additionally, due to current federal marijuana legislation and banking environment, growers are finding it increasingly difficult to secure their cash, purchase equipment and obtain financing for expansion.

Dispensaries are the retail face of the legal cannabis industry. All legal sales of cannabis products are transacted through dispensaries that are state-licensed. To maintain their licenses, dispensaries must comply with a variety of state-mandated reporting requirements, including reporting every gram of cannabis passing in and out of the store. Dispensaries also face financing and banking challenges similar to those that growers encounter.

We do not grow, test, transport or sell marijuana.

Armed Protection and Transportation

Fundamental to the legal cannabis industry is the protection of product and cash throughout the distribution channel. Growers ship product from their cultivation facilities to independent laboratories where it is tested for compliance with state-mandated parameters. From the labs, the product is then delivered to the retail dispensaries, where it is sold to the public.

Due to the current banking and regulatory environments, payments between each step in the distribution network are made in cash: from the customer back to the grower. Therefore, these businesses are forced into having to transport bags of money between growers and dispensaries and their own vaults or storage facilities.

The risk of theft of cash and product is present at every stage, even when they are not in transit. Accordingly, all cannabis businesses require security measures to prevent theft, mitigate risk to employees and maintain regulatory compliance.

We began our security and protection operations in Colorado in February 2014. Since then, we have become the largest legal cannabis protection services company in the state. We offer a fully integrated approach to managing the movement of cannabis and cash from growers through dispensaries via armed and armored transport, money processing, vaulting and related credit. Money processing services generally include counting, sorting and wrapping currency.

As of December 31, 2019 we discontinued our Service-Guards segment.

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We also offer security monitoring, asset vaulting, and VIP and dignitary protection.

Results of Operations

Material changes in line items in our Statement of Operations for the three months ended March 31, 2020 as compared to the same period last year, are discussed below:

	Increase (I) or
Item	Decrease (D)	Reason
Revenue	I	Increase in customer
Gross profit, as a % of revenue	I	Elimination of guards
Operating expenses	D	Reduction of staff and overhead
Gain on settlement of accounts payable Interest expense	I D	Settlement with a vendor on amounts owed Reduction of debt
Loss on change in fair value of derivative securities	I	Less volatility in the price of our common stock

Capital Resources and Liquidity

Our material sources and <uses> of cash during the three months ended March 31, 2020 and 2019 were:

	2020			2019
Cash provided by < used in > operations	$	63,799			$	<230,194	>
Purchase of fixed assets		-				<56,602	>
Cash overdraft
Loan proceeds		24,000				390,000
Loan payments		<35,699	>			<70,747	>

As of November 25, 2020 we did not have any material capital commitments other than loan payments.

Other than as disclosed above, we do not anticipate any material capital requirements for the twelve months ending December 31, 2021.

Other than as disclosed above, we do not know of any:

● trends, demands, commitments, events or uncertainties that will result in, or that are reasonable likely to result in, our liquidity increasing or decreasing in any material way; or

● any significant changes in our expected sources and uses of cash.

We do not have any commitments or arrangements from any person to provide us with any equity capital.

During the next twelve months, we anticipate that we will incur approximately $1,800,000 of general and administrative expenses in order to execute our current business plan. We also plan to incur significant sales, marketing, research and development expenses during the next 12 months. We must obtain additional financing to continue our operations. We may not be able to obtain additional funding on terms that are favorable to us or at all. We may not be able to obtain sufficient funding to continue our operations, or if we do receive funding, to generate adequate revenues in the future or to operate profitably in the future. These conditions raise substantial doubt about our ability to continue as a going concern.

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Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements.

Critical Accounting Policies

Management considers the following policies critical because they are both important to the portrayal of our financial condition and operating results, and they require management to make judgments and estimates about inherently uncertain matters.

Accounts receivable. Accounts receivable are stated at the amount we expect to collect from outstanding balances and do not bear interest. We provide for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates our accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote.

Revenue recognition. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in Accounting Standards Codification 605, “Revenue Recognition.” This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASC 606-10-50-5 requires that entities disclose disaggregated revenue information in categories (such as type of good or service, geography, market, type of contract, etc.) that depict how the nature, amount, timing, and uncertainty of revenue and cash flow are affected by economic factors. ASC 606-10-55-89 explains that the extent to which an entity’s revenue is disaggregated depends on the facts and circumstances that pertain to the entity’s contracts with customers and that some entities may need to use more than one type of category to meet the objective for disaggregating revenue. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date of the new revenue standard by one year, and allowed entities the option to early adopt the new revenue standard as of the original effective date. There have been multiple standards updates amending this guidance or providing corrections or improvements on issues in the guidance. The requirements for these standards relating to Topic 606 are effective for interim and annual periods beginning after December 15, 2017. This standard permitted adoption using one of two transition methods, either the retrospective or modified retrospective transition method.

We adopted these standards at the beginning of the first quarter of fiscal 2018 using the modified retrospective method. The adoption of these standards did not have an impact on our Statements of Operations for the three months ended March 31, 2020.

We account for equity instruments issued in exchange for the receipt of goods or services from non-employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measureable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of our management, including our Principal Financial Officer and Principal Executive Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report on Form 10-Q. Disclosure controls and procedures are procedures designed with the objective of ensuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and is communicated to our management, including our Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our management concluded that, as of March 31, 2020 our disclosure controls and procedures were not effective due to the material weaknesses identified during the audit of our financial statements for the year ended December 31, 2019.

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Change in Internal Control over Financial Reporting

Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report that materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

ITEM 6. EXHIBITS

Exhibit No.	Description of Exhibit
31.1	Rule 13a-14(a) Certifications
31.2	Rule 13a-14(a) Certifications
32	Section 1350 Certifications

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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, thereto duly authorized.

	BLUE LINE PROTECTION GROUP, INC.
November 25, 2020	By:	/s/ Evan DeVoe
		Evan DeVoe, Principal Executive, Financial and
		Accounting Officer

31

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Evan DeVoe, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blue Line Protection Group, Inc.;

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

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

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

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

b) designed such internal control over financial reporting, or cause 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; and

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

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

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

November 25, 2020	By:	/s/ Evan DeVoe
		Evan DeVoe, Principal Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Evan DeVoe, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blue Line Protection Group, Inc.

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

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

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

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

b) designed such internal control over financial reporting, or cause 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; and

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

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

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

November 25, 2020	By:	/s/ Evan DeVoe
		Evan DeVoe, Principal Financial Officer

EX-32

EXHIBIT 32

In connection with the Quarterly Report of Blue Line Protection Group, Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2020 as filed with the Securities and Exchange Commission (the “Report”), Evan DeVoe, the Company’s Chief Executive and Financial Officer, certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(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 the Company.

November 25, 2020	By:	/s/ Evan DeVoe
		Evan DeVoe, Principal Executive and Financial Officer

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Nov. 25, 2020
Cover [Abstract]
Entity Registrant Name	Blue Line Protection Group, Inc.
Entity Central Index Key	0001416697
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	No
Entity Interactive Data Current	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		822,357,428
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

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Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and equivalents	$ 97,213	$ 45,113
Accounts receivable,	346,104	336,840
Prepaid expenses and deposits	11,980	11,980
Total current assets	455,297	393,933
Fixed assets:
Right to use assets	831,115	859,426
Machinery and equipment, net of accumulated depreciation of $353,465 and $325,285, respectively	355,234	383,414
Security Deposit	31,840	32,158
Fixed assets of discontinued operations	2,782	2,782
Total fixed assets	1,220,971	1,277,780
Total assets	1,676,268	1,671,713
Current liabilities:
Accounts payable and accrued liabilities	960,330	1,052,275
Financed lease liabilities	77,013	88,712
Notes payable	185,000	185,000
Notes payable - related parties	799,512	726,847
Convertible notes payable	172,198	172,198
Convertible notes payable - related parties, net of unamortized discount of $0 and $8,710, respectively	1,830,217	1,821,507
Current portion of operating lease obligation	119,135	114,653
Derivative liabilities	1,455,411	1,170,060
Total current liabilities	5,598,816	5,331,252
Long-term liabilities:
Operating lease liability-long term	754,288	785,802
Total current liabilities	754,288	785,802
Total liabilities	6,353,104	6,117,054
Stockholders' deficit:
Preferred Stock, $0.001 par value, 100,000,000 shares authorized, 20,000,000 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	20,000	20,000
Common Stock, $0.001 par value, 1,400,000,000 shares authorized, 793,357,428 and 793,357,428 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	793,360	793,360
Common Stock, owed but not issued, 12,923 shares and 12,923 shares as of March 31, 2020 and December 31, 2019, respectively	13	13
Additional paid-in capital	7,228,528	7,228,528
Accumulated deficit	(12,718,737)	(12,487,242)
Total stockholders' deficit	(4,676,836)	(4,445,341)
Total liabilities and stockholders' deficit	$ 1,676,268	$ 1,671,713

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Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accumulated depreciation	$ 353,465	$ 325,285
Unamortized discount	$ 0	$ 8,710
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	20,000,000	20,000,000
Preferred stock, shares outstanding	20,000,000	20,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,400,000,000	1,400,000,000
Common stock, shares issued	793,357,428	793,357,428
Common stock, shares outstanding	793,357,428	793,357,428
Common owed but not issued	12,923	12,923

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 991,462	$ 928,609
Cost of revenue	(270,058)	(530,117)
Gross profit	721,404	398,492
Operating expenses:
General and administrative expenses	573,864	594,284
Total expenses	573,864	594,284
Operating Income (Loss)	147,540	(195,792)
Other income (expenses):
Interest expense	(98,184)	(518,950)
Gain on settlement of accounts payable	4,500
Income / (Loss) on derivative	(285,351)	145,906
Total other expenses	(379,035)	(373,044)
Net income / (loss)	$ (231,495)	$ (568,836)
Net loss per common share: Basic and Diluted	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding- Basic and Diluted	793,357,428	415,378,581

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Operating activities
Net income / (loss)	$ (231,495)	$ (568,836)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	28,180	31,082
Amortization of discounts on notes payable	8,710	437,913
Amortization of right to use	28,311	13,723
Loan fees	10,665
Noncash operating lease expense
Gain on settlement of accounts payable	(4,500)
Loss on derivative liability		(145,906)
Change in fair value of derivative liabilities	285,351
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(9,264)	(15,425)
(Increase) / decrease in deposits and prepaid expenses	318	494
Increase (decrease) in accounts payable and accrued liabilities	(25,445)	28,236
Increase (decrease) in lease obligations	(27,032)	(11,475)
Net cash provided by (used in) operating activities	63,799	(230,194)
Cash flows from investing activities
Purchase of fixed assets		(56,602)
Net cash provided by/(used in) investing activities		(56,602)
Financing activities
Proceeds from notes payable - related party		15,000
Proceeds from notes payable	24,000	75,000
Repayments from notes payable - related party	(24,000)	(30,000)
Proceeds from convertible notes payable - related party		300,000
Payments on auto loan		(1,027)
Payments on capital leases		(39,720)
Payments on convertible debt	(11,699)
Net cash provided by financing activities	(11,699)	319,253
Net increase in cash	52,100	32,457
Cash - beginning	45,113	15,862	$ 15,862
Cash - ending	97,213	48,319	$ 45,113
Supplemental disclosures of cash flow information:
Interest paid
Income taxes paid
Debt discount due to derivative liability
Non-cash investing and financing activities:
Debt discount due to derivative liability		371,172
Common stock issued for conversion of debt and interest		78,376
Derivative resolution		138,610
Accounts payable converted to notes payable - related party	62,000
Right of use assets and operating lease obligations recognized		650,152
Financed lease assets		$ 64,354

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Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Stock Payable [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2018	$ 20,000	$ 368,469	$ 7,107,400	$ 13	$ (10,878,959)	$ (3,383,077)
Beginning balance, shares at Dec. 31, 2018	20,000,000	368,468,701
Derivative resolution			138,610			138,610
Common stock issued for conversion of debt and accrued interest		$ 98,899	(20,523)			78,376
Common stock issued for conversion of debt and accrued interest, shares		98,898,873
Net loss					(568,836)	(568,836)
Ending balance at Mar. 31, 2019	$ 20,000	$ 467,368	7,225,487	13	(11,447,795)	(3,734,927)
Ending balance, shares at Mar. 31, 2019	20,000,000	467,367,574
Beginning balance at Dec. 31, 2018	$ 20,000	$ 368,469	7,107,400	13	(10,878,959)	(3,383,077)
Beginning balance, shares at Dec. 31, 2018	20,000,000	368,468,701
Common stock issued for conversion of debt and accrued interest, shares		424,888,727
Ending balance at Dec. 31, 2019	$ 20,000	$ 793,360	7,228,528	13	(12,487,242)	(4,445,341)
Ending balance, shares at Dec. 31, 2019	20,000,000	793,357,428
Net loss					(231,495)	(231,495)
Ending balance at Mar. 31, 2020	$ 20,000	$ 793,360	$ 7,228,528	$ 13	$ (12,718,737)	$ (4,676,836)
Ending balance, shares at Mar. 31, 2020	20,000,000	793,357,428

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History and Organization of the Company

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

History and Organization of the Company

Note 1 – History and organization of the company

The Company was originally organized on September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc. The Company was authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share.

On March 14, 2014, the Company acquired Blue Line Protection Group, Inc., a Colorado corporation formed in February 2014 (“Blue Line Colorado”), as a wholly-owned subsidiary of the Company. Blue Line Colorado provides protection, compliance, and financial services to the lawful cannabis industry.

On May 2, 2014, the Company changed its name from The Engraving Masters, Inc. to Blue Line Protection Group, Inc. (“BLPG”)

On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the authorized capital of the Company concurrently increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split.

The Company provides armed protection, logistics, and compliance services for businesses engaged in the legal cannabis industry. The Company offers asset logistic services, such as armored transportation service; security services, including shipment protection, money escorts, security monitoring, asset vaulting, VIP and dignitary protection, financial services, such as handling transportation and storage of currency; training; and compliance services.

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Accounting Policies and Procedures

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Accounting Policies and Procedures

Note 2 – Accounting policies and procedures

Interim financial statements

The unaudited interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, these statements reflect all adjustments, all of which are of a normal recurring nature, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2019 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Principles of consolidation

For the three months ended March 31, 2020 and 2019, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (formerly The Engraving Masters, Inc.), Blue Line Advisory Services, Inc. (a Nevada corporation; “BLAS”), Blue Line Capital, Inc. (a Colorado corporation; “Blue Line Capital”), Blue Line Protection Group (California), Inc. (a California corporation; “Blue Line California”), Blue Line Colorado, Blue Line Protection Group Illinois, Inc. (an Illinois corporation; “Blue Line Illinois”), BLPG, Inc. (a Nevada corporation; “Blue Line Nevada”), Blue Line Protection Group (Washington), Inc. (a Washington corporation; “Blue Line Washington”). All significant intercompany balances and transactions have been eliminated. BLPG and its subsidiaries are collectively referred herein to as the “Company.”

Basis of presentation

The financial statements present the balance sheets, statements of operations, stockholder’s equity (deficit) and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

The Company has adopted December 31 as its fiscal year end.

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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

The Company maintains a cash balance in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of March 31, 2020 and December 31, 2019.

Accounts receivable

Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote.

Allowance for uncollectible accounts

The Company estimates losses on receivables based on known troubled accounts, if any, and historical experience of losses incurred. There was no allowance for doubtful customer receivables at March 31, 2020 and December 31, 2019.

Property and equipment

Property and equipment is recorded at cost and capitalized from the initial date of service. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows:

Automotive Vehicles	5 years
Furniture and Equipment	7 years
Buildings and Improvements	15 years

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as March 31, 2020 and December 31, 2019. Depreciation expense for the three months ended March 31, 2020 and March 31, 2019, is $28,180 and $31,082, respectively.

Impairment of long-lived assets

The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost or carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and its fair value or disposable value. As of March 31, 2020 and December 31, 2019, the Company determined that none of its long-term assets were impaired.

Concentration of business and credit risk

The Company has no significant off-balance sheet risks such as foreign exchange contracts, option contracts or other hedging arrangements. The Company’s financial instruments that are exposed to concentration of credit risks consist primarily of cash. The Company maintains its cash in bank accounts, which may at times, exceed federally insured limits.

The Company had three major customers which generated 19%, 14% and 10%, respectively, for a total of approximately 43% of total revenue in the three months ended March 31, 2020.

The Company had one major customer which generated approximately 18% of total revenue in the three months ended March 31, 2019.

Related party transactions

FASB ASC 850, “Related Party Disclosures” requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. Related parties are defined to include any principal owner, director or executive officer of the Company and any immediate family members of a principal owner, director or executive officer.

Fair value of financial instruments

The carrying amounts reflected in the balance sheets for cash, accounts payable and related party payables approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table presents the derivative financial instruments, the Company’s only financial liabilities, measured and recorded at fair value on the Company’s consolidated balance sheet on a recurring basis, and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

March 31, 2020

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,455,129	$	-	$	-	$	1,455,129
Warrant derivative liabilities	$	282	$	-	$	-	$	282
Total	$	1,455,411	$	-	$	-	$	1,455,411

December 31, 2019

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,169,515	$	-	$	-	$	1,695,515
Warrant derivative liabilities	$	545	$	-	$	-	$	545
Total	$	1,170,060	$	-	$	-	$	1,170,060

The embedded conversion feature in the convertible debt instruments that the Company issued, that became convertible qualified them as derivative instruments since the number of shares issuable under the notes are indeterminate based on guidance in FASB ASC 815, Derivatives and Hedging. These convertible notes tainted all other equity linked instruments including outstanding warrants and fixed rate convertible debt on the date that the instrument became convertible. The valuation of the derivative liability of the warrants was determined through the use of Black Scholes option-pricing model (See Note 8).

Revenue Recognition

The Company recognizes revenue when delivery of the promised goods or services is transferred to its customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services. We determine revenue recognition through the following five steps:

● Identify the contract with the customer;

● Identify the performance obligations in the contract;

● Determine the transaction price;

● Allocate the transaction price to the performance obligations in the contract; and

● Recognize revenue when, or as, the performance obligations are satisfied.

We generate substantially all our revenue from providing services to customers. The Company records revenue with the 5 steps above have been completed.

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company adopted these standards at the beginning of the first quarter of fiscal 2018 using the modified retrospective method. The adoption of these standards did not have an impact on the Company’s Statements of Operations in for the year ended December 31, 2018.

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics. Revenue is characterized by several lines of services and typically the pricing is fixed.

Three months ended March 31,
Revenue Breakdown by Streams	2020		2019
Service: Guards	$	-	$	267,734
Service: Transportation		518,728		22,865
Service: Currency Processing		458,667		355,237
Service: Compliance		14,067		12,248
Other		-		525
Total	$	991,462	$	928,609

As of December 31, 2019 the Company discontinued its Service-Guards segment.

Advertising costs

The Company expenses all costs of advertising as incurred. There were $3,075 and $3,770 in advertising costs for the three months ended March 31, 2020 and 2019, respectively.

General and administrative expenses

The significant components of general and administrative expenses consist mainly of rent and compensation.

Share-Based Compensation

Share-based compensation expense is recorded as a result of stock options granted in return for services rendered. Previously, the share-based payment arrangements with employees were accounted for under ASC 718, while nonemployee share-based payments issued for goods and services are accounted for under ASC 505-50. ASC 505-50 differs significantly from ASC 718. On June 20, 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company has adopted the new standard and has made some adjustment with regard to the share-based compensation costs. Under the ASU 2018-07, the measurement of equity-classified nonemployee share-based payments is generally fixed on the grant date and the options are no longer revalued on each reporting date. The expenses related to the share-based compensation are recognized on each reporting date. The amount is calculated as the difference between total expenses incurred and the total expenses already recognized.

(Redundant. See next page)

Cost of Revenue

The Company’s cost of revenue primarily consists of labor, fuel costs and items purchased by the Company specifically purposed for the benefit of the Company’s client.

Basic and Diluted Earnings per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the periods presented all common stock equivalents were excluded from the calculation of diluted loss per share as their effect would be anti-dilutive.

Dividends

The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception.

Income Taxes

The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

Recent Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which will amend current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. This standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019 but without retrospective application. Therefore, there was no impact recorded to beginning retained earnings or the statement of operations

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

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Going Concern

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

Note 3 – Going concern

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has a net loss, accumulated deficit and had a working capital deficit as of March 31, 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These financial statements do not include any adjustments that might arise from this uncertainty.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 4 – Commitments and contingencies

Contingencies

On November 6, 2015, Daniel Sullivan sent a wage claim demand. Mr. Sullivan purports to have had an Independent Contractor Agreement with the Company which provides he is entitled to certain compensation and to be reimbursed for Company expenses. The demand claims unpaid compensation in the amount of $8,055 and unreimbursed expenses in the amount of $154,409. The Company denies the agreement was ever signed. As of March 31, 2020 and December 31, 2019 the Company accrued a total of $34,346 and $34,346, respectively of contingent liabilities. If litigation is commenced the Company will defend any claims by Mr. Sullivan.

Mile High Real Estate Group, an entity owned by Mr. Sullivan, sent correspondence stating the Mr. Sullivan and/or Mile High Real Estate loaned the Company either directly or directly to contractors, material suppliers or utilities for operating and building remodeling in the amount of $98,150. Counsel for Mr. Sullivan stated that he was still compiling information. The Company is investigating whether Mr. Sullivan and/or Mile High Real Estate Group ever made the alleged loans. The Company will defend any claims of Mile High Real Estate Group. As of March 31, 2020 and December 31, 2019 the Company accrued a total of $98,150.

On April 14, 2016, the Company entered into an agreement with an unrelated third party to provide the Company with investor relations services. Upon signing the agreement, the Company paid the investor relations consultant $75,000 and agreed to issue the consultant 1,500,000 shares of its restricted common stock. The agreement requires the Company to pay the consultant an additional $75,000 prior to June 14, 2016. The Company cancelled the agreement and is of the opinion that the shares are not owed to the consultant. As of March 31, 2020 and December 31, 2019 there was no payable recorded.

During the three months ended March 31, 2020 the Company recorded a gain of $4,500 for settlement of a vendor payable.

Finance leases

On April 25, 2018, the Company recorded finance lease obligation for a leased a vehicle for $38,388. The Company made a down payment of $7,500 and agreed to make 36 monthly payment of $1,015.78 including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On August 16, 2018, the Company recorded finance lease obligation for a leased a vehicle for $58,476. The Company made a down payment of $20,000 and an additional $10,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,265.30, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On August 16, 2018, the Company recorded finance lease obligation for a leased a vehicle for $58,476. The Company made a down payment of $20,000 and an additional $10,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,265.30, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

On March 1, 2019, the Company recorded finance lease obligation for a leased a vehicle for $64,354. The Company made a down payment of $30,000 for delivery fees, taxes and its first month payment and agreed to make 36 monthly payments of $1,129.76, including sales tax. The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

Future minimum lease payments as of March 31, 2020:
2020	$	44,415
2021		30,338
2022 and thereafter		2,260
Total minimum lease payments	$	77,013

Operating Leases

On October 27, 2016 the Company sold its building located at 5765 Logan Street Denver, Colorado to an unrelated third party for $1,400,000. The Company repaid the mortgage on the building in the amount of $677,681. After the sale, the Company leased the building from the purchaser of the property. The lease is for an initial term of ten years, with the Company having the option to extend the term of the lease for two additional five-year periods. The lease requires rental payments of $10,000 per month and will increase 2% annually. The Company paid a $30,000 deposit at the inception of the lease

On May 29, 2018 the Company leased a building located at 4328 E. Magnolia Street, Phoenix, Arizona. The lease is for an initial term of one years, with the Company having the option to extend the term of the lease for additional four year periods. The lease requires rental payments of $3,880 per month and will increase 2% annually. The Company paid a $4,369 deposit at the inception of the lease.

On January 22, 2019 the Company leased a building located at 7490 Bridgewater Road, Huber Heights, Ohio the lease is for an initial term of 63 months. The lease requires rental payments of $3,200 per month and will increase to $3,400 between months 28 through 63. The Company paid a $3,200 deposit at the inception of the lease

The Company adopted ASC 842 and recorded right of use asset and operating lease liability of $1,082,241. The company used 12% as incremental borrowing rate as is the average interest rate of the company’s outstanding third party note. The lease agreement gives the Company the option to renew it for two additional 5 year terms but the Company did not consider it likely to exercise that option. Therefore, the company did not include such amounts in its computations of the present value of remaining lease payment on adoption date.

Supplemental balance sheet information related to leases is as follows:

Operating Leases	Classification	March 31, 2020
Right-of-use assets	Operating right of use assets	$	831,115
Current lease liabilities	Current operating lease liabilities		119,135
Non-current lease liabilities	Long-term operating lease liabilities		754,288
Total lease liabilities		$	873,423

Lease term and discount rate were as follows:

	March 31, 2020
Weighted average remaining lease term (years)		5.00
Weighted average discount rate		12	%

The following summarizes lease expenses for the year ended March 31, 2020:

Finance lease expenses:

Depreciation/amortization expense	$	28,311
Interest on lease liabilities		26,745
Finance lease expense	$	55,056

Supplemental disclosures of cash flow information related to leases were as follows:

	March 31, 2020
Cash paid for operating lease liabilities	$	28,311
Operating right of use assets obtained in exchange for operating lease liabilities	$	-

Maturities of lease liabilities were as follows as of March 31, 2020:

	Operating Leases
2020	$	161,531
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,214,340
Less: Imputed interest		(340,917	)
Present value of lease liabilities	$	873,423

December 31, 2019

Operating Leases	Classification	December 31, 2019
Right-of-use assets	Operating right of use assets	$	859,426
Current lease liabilities	Current operating lease liabilities		114,653
Non-current lease liabilities	Long-term operating lease liabilities		785,802
Total lease liabilities		$	900,455

Lease term and discount rate were as follows:

	December 31, 2019
Weighted average remaining lease term (years)		5.26
Weighted average discount rate		12	%

The following summarizes lease expenses for the year ended December 31, 2019:

Finance lease expenses:

Depreciation/amortization expense	$	189,290
Interest on lease liabilities		6,009
Finance lease expense	$	195,299

Supplemental disclosures of cash flow information related to leases were as follows:

	December 31, 2019
Cash paid for operating lease liabilities	$	155,549
Operating right of use assets obtained in exchange for operating lease liabilities	$	1,082,241

Maturities of lease liabilities were as follows as of December 31, 2019:

	Operating Leases
2020	$	216,587
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,269,396
Less: Imputed interest		(368,941	)
Present value of lease liabilities	$	900,455

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Fixed Assets

3 Months Ended

Mar. 31, 2020

Fixed assets:

Fixed Assets

Note 5 – Fixed assets

Machinery and equipment consisted of the following at:

	March 31, 2020			December 31, 2019
Automotive vehicles	$	381,844		$	381,844
Furniture and equipment		85,435			85,435
Machinery and Equipment		135,706			135,706
Leasehold improvements		105,714			105,714
Fixed assets, total		708,699			708,699
Total : accumulated depreciation		(353,465	)		(325,285	)
Fixed assets, net	$	355,234		$	383,414

Total depreciation expenses for the three months ended March 31, 2020 and March 31, 2019 were $28,120 and $31,082, respectively.

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Notes Payable

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Notes Payable

Note 6 – Notes payable

Notes payable to non-related parties

During February 2015, the Company borrowed $50,000 from a non-affiliated person. The loan is due and payable on April 6, 2015 and is now payable on demand with interest at 10% per annum. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $50,000 and $50,000, respectively. The note is currently past due.

During April 2015, the Company borrowed $25,000 from a non-affiliated person. The loan is due and payable May 1, 2015 with interest at 6% per year and has a 5% per month penalty upon default. As of March 31, 2920 and December 31, 2019, the principal balance owed on this loan was $25,000 and $25,000, respectively. The note is currently past due.

On January 5, 2016, the Company borrowed $10,000 from a non-affiliated person. The loan was due and payable on January 5, 2017 and bore interest at 5% per annum and has a 5% per month penalty upon default. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $10,000 and $10,000, respectively. The note is currently past due.

On May 15, 2019 the Company entered in a 12% promissory loan with Helix Funding, LLC for the Principle amount of $100,000. The note matures on November 1, 2019. The note is currently past due.

Convertible notes payable to non-related party

On October 18, 2017, the Company borrowed $150,000 from an unrelated third party. The Company paid $15,250 of fees associated with the loan, which was recorded as discount and to be amortized over the term of the debt and was fully amortized as of December 31, 2018. The loan bears interest at a rate of 10% (default interest 24%) and has a maturity date of July 16, 2018. The Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The conversion price is the lesser of (1) lowest trading price during the previous 25 days prior to the note agreement or (2) 50% lowest trading price during the 25 days prior to conversion. Covenants: The Borrower shall not, without the Holder’s consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business. During the year ended December 31, 2018 the Company paid $150,000 to extend the maturity date until May 11, 2019. During the year months ended December 31, 2019 the Company paid an $75,000 of extension fees. The note was discounted for a derivative (see note 8 for details) and the discount of $134,750 is being amortized over the life of the note using the effective interest method which was fully amortized as of December 31, 2018. During the year ended December 31, 2019 the holder converted $39,478 of accrued interest into 217,882,455 shares of common stock resulting in a loss of $61,624. As of March 31, 2020 and December 31, 2019 the balance outstanding on the loan is $150,000.

On January 2, 2018 the Company borrowed $30,000 from an unrelated third party. The Company paid $2,000 of fees associated with the loan and the Company amortized $1,989 as of December 31, 2018. The loan has a maturity date of January 2, 2019 and bears interest at the rate of 12% (default interest lesser of 15% or maximum permitted by law). The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion. The note was discounted for a derivative (see note 8 for details) and the discount of $28,000 is being amortized over the life of the note using the effective interest method resulting in $27,847 of interest expense for the year ended December 31, 2018. On February 24, 2019, the remaining balance of the note payable in the amount of $9,373, fees of $500 and accrued interest of $2,625 were converted into 18,380,000 shares of common stock. During the year ended December 31, 2019 the Company recorded amortization expense of $164 and a loss on conversion of $10,527.

On January 25, 2018 the Company borrowed $150,000 from an unrelated third party. The Company paid $7,500 of fees associated with the loan, which was recorded as discount and to be amortized over the term of the debt the Company amortized $6,986 as of December 31, 2018. The loan has a maturity date of January 25, 2019 and bears interest at the rate of 12% per year. If the loan is not paid when due, any unpaid amount will bear interest at 18% per year. The Lender is entitled, at its option, at any time after July 24, 2018 to convert all or any part of the outstanding and unpaid principal and accrued interest into shares of the Company’s common stock at a price per share equal to 55% of the average of the lowest trading price for the 20 trading days immediately preceding the conversion date. On July 24, 2018, the Company recorded a discount of $142,500 and recorded day one loss due to derivative of $74,900 As during the year ended December 31, 2018 the principal of $85,149 converted into a total of 33,375,972 shares of common stock. During the year ended December 31, 2019 the remaining balance of $64,881 and accrued interest was converted into a total of 104,466,022 shares of common stock. The Company also recorded amortization of debt discount (from derivative) of $132,740 during the year ended December 31, 2018. During the year ended December 31, 2019 the Company recorded amortization expense of $9,863. The conversion resulted in a loss of $2,532.

On March 21, 2018, the Company borrowed $45,000 from an unrelated third party. The Company paid $4,500 of fees associated with the loan and had amortized $3,514 of the costs as of December 31, 2018. The note bears an interest rate: 12% (default interest lesser of 15% or maximum permitted by law) and matures on March 21, 2019. The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion. Covenants: The Borrower shall not, without the Holder’s consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business. The note was discounted for a derivative (see note 8 for details) and the discount of $40,500 is being amortized over the life of the note using the effective interest method resulting in $31,623 of interest expense for the year ended December 31, 2018. During the year ended December 31, 2019 $23,223 of principle and interest were converted into 84,160,250 shares of common stock resulting in a loss of $32,858. During the year ended December 31, 2019 the Company recorded amortization expense of $9,863. As of March 31, 2020 and December 31, 2019 there was a balance remaining on the loan of $22,198.

During the three months ended March 31, 2020, the Company recognized amortization expense of $8,710 of discount from derivative liabilities.

During the three months ended March 31, 2019, the Company recognized amortization expense of $1,511 from deferred financing cost and amortization expense of $18,790 of discount from derivative liabilities.

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Notes Payable - Related Parties

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Notes Payable - Related Parties

Note 7 – Notes payable – related parties

On July 31, 2014, the Company borrowed $98,150 from an entity controlled by an officer and shareholder of the Company. The loan is due and payable on demand and bears no interest. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan is $98,150 and $98,150, respectively.

As of December 31, 2014, a related party loaned the Company $10,000, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. During the year ended December 31, 2015 the Company borrowed an additional $20,000. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $30,000 and $30,000, respectively.

As of December 31, 2014, a related party loaned the Company $180,121, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. The Company repaid $125,500 towards this note during 2015 and as of March 31, 2020 and December 31, 2019; the principal balance owed on this loan was $54,621 and $54,621, respectively.

During October 2015, the Company borrowed $30,000 from an entity controlled by an officer of the Company. The loan is due and payable on demand and is non-interest bearing. During the year ended December 31, 2017, the Company repaid $251,363 and borrowed an additional $265,363 from the same related party. On March 10, 2020 the Company entered into an additional note payable in the amount of $102,665 for severance As of March 31, 2020 and December 31, 2019 the principal balance outstanding is $102,665 and $20,000, respectively.

During the year ended December 31, 2018 the Company repaid $121,500 and borrowed an additional $184,500 from the same related party. During year ended December 31, 2019 the Company borrowed an additional $22,500 and repaid a total of $49,500. During the three months ended March 31, 2020 the Company repaid $24,000 and borrowed an additional $24,000 from the same related party and reclassed $65,000 from accounts payable to a note payable. The Company recorded a loan of $10,665 on the transaction. As of March 31, 2020 and December 31, 2019, the principal balance owed on this loan was $102,665 and $30,000, respectively.

On July 7, 2016, the Company borrowed $73,000 from a related party. The loan was due and payable on July 7, 2017 and bore interest at 5% per annum. The holder of the note has agreed to extend the default date of the note to September 30, 2018. As of and March 31, 2020 and December 31, 2019 the note is currently in default.

On August 8, 2016, the Company entered into a promissory note with Hypur Inc., a Nevada Corporation, a related party, pursuant to which the Company borrowed $52,000. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower The loan was due and payable on August 10, 2017 and bore interest at 18% per annum. The principal balance owed on this loan at March 31, 20120 and December 31, 2019 was $52,000 and $52,000, respectively. The Note is currently in default at bears a default rate of interest of 24% per annum as part of the default terms of this note. Upon default, if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. The notes are in default as of March 31, 2020 and December 31, 2019, but the holder has agreed to waive the 150% redemption price default term.

On September 20, 2016, the Company borrowed $47,500 from Hypur Inc., which is a related party. The loan is due and payable on December 20, 2016 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $47,500 and $47,500, respectively. The loan is currently past due and in default. The Note is currently in default at bears a default rate of interest of 24% per annum as part of the default terms of this note. Upon default, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. The notes are in default as of March 31, 2020 and December 31, 2019, but the holder has agreed to waive the 150% redemption price default term.

On October 29, 2018, the Company borrowed $100,000 from Hypur Inc., which is a related party. The loan is due and payable on January 28, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $89,350 is being amortized over the life of the note using the effective interest method resulting in $89,350 of interest expense for the year ended December 31, 2019. As of March 31, 2020 December 31, 2019 the note is currently in default.

On November 21, 2018, the Company borrowed $70,000 from Hypur Inc., which is a related party. The loan is due and payable on February 19, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $70,000 and $70,000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $55,830 is being amortized over the life of the note using the effective interest method resulting in $55,830 of interest expense for the year ended December 31, 2019. As of March 31, 2020 December 31, 2019 the note is currently in default.

On November 26, 2018, the Company borrowed $75,000 from Hypur Inc., which is a related party. The loan is due and payable on February 24, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000 and $75.000, respectively. The note was discounted for a derivative (see note 8 for details) and the discount of $58,913 is being amortized over the life of the note using the effective interest method resulting in $58,913 of interest expense for the year ended December 31, 2019. As of March 31, 2020 and December 31, 2019 the Note is currently in default.

On May 10, 2019, the Company borrowed $75,000 from Hypur Inc., which is a related party. The loan is due and payable on May 12, 2020 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000.

On September 3, 2019, the Company borrowed $21,000 from Hypur Inc., which is a related party. The loan is due and payable on December 3, 2019 and bears interest at 18% per annum. If an Event of Default remains uncured after 30 days Holder has the option to convert the outstanding principal balance and any accrued but unpaid interest, into unrestricted $0.001 par value common stock of the Borrower. Upon default the note bears a default rate of interest of 24% per annum as part of the default terms of this note. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $21,000.

Convertible notes payable to related party

In November 2015, the Company entered into an arrangement with a related party, whereby the Company borrowed $25,000 in Convertible Notes. The Convertible Note bears interest at a rate of 5% per annum and payable quarterly in arrears and matures twelve months from the date of issuance, and is convertible into shares of the Company’s common stock at a per share conversion price equal to $0.025. The note was due on November 4, 2016. In December 2015 the lender loaned the Company an additional $20,000 with same terms except that it is payable upon demand. As of March 31, 2020 and December 31, 2019, the Company owed a total of $45,000 and $45,000, respectively. The holder of the note has agreed to extend the default date of the note to September 30, 2018. As of March 31, 202 and December 31, 2019 the note is currently in default.

In July 2015, the Company entered into an arrangement with a related party, whereby the Company could borrow up to $500,000 in Convertible Notes. The Convertible Note bears interest at a rate of 5% per annum and payable quarterly in arrears and matures twelve months from the date of issuance, and is convertible into shares of the Company’s common stock at a per share conversion price equal to $0.025. Upon the occurrence and during the continuation of an event of default, the holder may require the Company to redeem all or any portion of this Note in cash at a price equal to 150% of the principal amount. During the year ended December 31, 2017, the Company borrowed an additional $110,000. As of March 31, 2020 and December 31, 2019, the Company owed a total of $500,000 and $500,000, respectively. Since the debt holder has not elect the right to require the Company to redeem the note at a price equal to 150% of the principal amount, the terms stated prior to maturity are still in effect. The holder has waived the default term and the note is not considered to be in default as of March 31, 2020 and December 31, 2019.

On September 1, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $75,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $75,000 and $75,000, respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

On October 14, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) and a related party, pursuant to which the Company borrowed $100,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

On March 7, 2017, the Company borrowed $100,000 from Hypur Ventures, L.P., a related party. The loan is due 180 days from March 7, 2017 and bears interest at 10% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.50 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000 respectively. Upon default, the note bears a default rate of interest of 15% per annum, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount. As of March 31, 2020, Hyper has waived the default provision.

On May 26, 2017, the Company borrowed $100,000 from CGDK, a related party. The loan is due 360 days from May 26, 2017 and bears interest at 5% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.025 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $100,000 and $100,000, respectively. As of March 31, 2020 and December 31, 2019 the note was currently in default.

On July 13, 2017, the Company borrowed $150,000 from CGDK, a related party. The loan is due 360 days from July 13, 2017, and bears interest at 5% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 was $150,000. The conversion feature has been waved through October 15, 2019. As of March 31, 2020 and December 31, 2019, the note is currently in default.

On April 13, 2018, the Company borrowed $130,000 from CGDK, a related party. The loan is due 360 days from April 13, 2018, bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The Company recorded a discount of $101,272 due to derivative. The Company amortized $72,694 in debt discounts during the year ended December 31, 2018. The Company amortized $27,560 in debt discounts during the nine months ended September 30, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $130,000 and $130,000, respectively. On November 5, 2019 CGDK waived the default provision until April 13, 2020.

On June 14, 2018, the Company issued a $30,217 to CGDK, a related party, for previous expenses paid on behalf of the Company. The loan is due 360 days from June 18, 2018, bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.25 per share during any ten-day period. The Company recorded a debt discount of $10,292 due to derivative. During the year ended December 31, 2018 the Company amortized $5,639 of the discount. The Company amortized $3,697 in debt discounts during the nine months ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $30,217 and $30,217, respectively. On November 5, 2019 CGDK waived the default provision until June 14, 2020.

On July 2, 2018, the Company borrowed $150,000 from CGDK, a related party. The loan is due July 2, 2019 and bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.10 per share during any ten-day period or the trading volume of the Company’s common stock during these ten trading days was at least 2,500,000 shares. The Company recorded a debt discount of $19,779 due to derivative. During the year ended December 31, 2018 the Company amortized $9,862 of the discount. The Company amortized $7,390 in debt discounts during the year ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $150,000 and $150,000, respectively. On November 5, 2019 CGDK waived the default provision until July 2, 2020.

On August 6, 2018, the Company borrowed $150,000 from CGDK, a related party. The loan is due July 2, 2019 and bears interest at 12% per annum. The loan is convertible into shares of the Company’s common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company’s common stock if the price of the Company’s common stock is over $.10 per share during any ten-day period or the trading volume of the Company’s common stock during these ten trading days was at least 2,500,000 shares. The Company recorded a debt discount of $20,095 due to derivative. During the year ended December 31, 2018 the Company amortized $8,093 of the discount. The Company amortized $7,793 in debt discounts during the year ended December 31, 2019. The principal balance owed on this loan at March 31, 2020 and December 31, 2019 is $150,000 and $150,000, respectively. On November 5, 2019 CGDK waived the default provision until August 6, 2020.

On January 18, 2019, the Company entered into, a convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $250,000. The loan was due 10 days from the date of issuance and bears interest at 18% per annum. The note is convertible into common stock at a price at the lower of $.0002 per share or 60% of the closing price of the common stock prior to conversion. Upon default, the note bears a default rate of interest of 24% per annum. The note was discounted for a derivative (see note 8 for details) and the discount of $167,079 is being amortized over the life of the note using the effective interest method resulting in $167,079 of interest expense for the year ended December 31, 2019. As of March 31, 2020 and December 31, 2019 the note is currently in default.

On March 5, 2019, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company to borrow $50,000. The loan was due 10 days from the date of issuance and bears interest at 18% per annum. The note is convertible into common stock at a price at the lower of $.0002 per share or 60% of the closing price of the common stock prior to conversion. Upon default, the note bears a default rate of interest of 24% per annum. As of March 31, 2020 and December 31, 2019 the note is currently in default.

The carrying amount of the convertible note, net of the unamortized debt discount, at March 31, 2020 and December 31, 2019 is $1,830,217 and $1,821,507, respectively. Total unamortized debt discount at March 31, 2020 and December 31, 2019 was $0 and $8,710, respectively.

On October 1, 2017, these notes were tainted by the variable conversion price notes and remained tainted as of December 31, 2019. The Company re-measured the fair value of derivative liabilities on March 31, 2020 and December 31, 2019. See Note 8.

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Derivative Liability

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liability

NOTE 8 – Derivative Liability

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

The derivative liability in connection with the conversion feature of the convertible debt is measured using, level 3 inputs.

The change in the fair value of derivative liabilities is as follows:

Balance - December 31, 2018	$	727,332
Addition of new derivative as a derivative loss
Settlement of derivatives upon conversion		(292,611	)
Debt discount from derivative liability		383,265
Loss on change in fair value of the derivative		352,074
Balance - December 31, 2019	$	1,170,060
Loss on change in fair value of the derivative		285,351
Balance – March 31, 2020	$	1,455,411

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date:

	Three Months ended March 31, 2020		Year ended December 31, 2019
Expected term	0.01 – 1.42 years		0.01 – 1.67 years
Expected average volatility	142% – 361.46	%	24.93% – 270.08	%
Expected dividend yield	-		-
Risk-free interest rate	0.09% – 0.15	%	1.55% – 1.60	%

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Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Stockholders' Equity

Note 9 – Stockholders’ equity

The Company was originally authorized to issue 100,000,000 shares of common stock and 100,000,000 shares of preferred stock. On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the number of authorized shares increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and these notes thereto have been retroactively restated to reflect the forward stock split.

Common stock

During the year ended December 31, 2019 the Company issued a total of 424,888,727 shares of common stock for the conversion of $157,960 of convertibles loans, accrued interest, and fees. The Company recorded on a loss on conversion of $107,541.

Preferred stock

On May 3, 2016, the Company entered into, an agreement with Hypur Ventures, L.P., a Delaware limited partnership (the “Hypur Ventures”) which is a related party pursuant to which the Company sold to Hypur Ventures, in a private placement, 10,000,000 shares of the Company’s preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for gross proceeds of $500,000. The shares of preferred stock are convertible into shares of the Company’s common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Nevada Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $114,229. The beneficial conversion feature was fully amortized and recorded as a deemed dividend.

Between July and August of 2016 Hypur Ventures purchased an additional 10,000,000 shares of the Company’s preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for net proceeds of $445,000, net of legal fees of $55,000. The shares of preferred stock are convertible into shares of the Company’s common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Nevada Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it does not contain a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $0. The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company’s common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights.

The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company’s common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights.

The Company has reserved thirty million shares of common stock that may be issued upon the conversion and/or exercise of the preferred stock and the warrants. The preferred stock sold to Hypur Ventures will be subject to the terms and conditions of the Certificate of Designation, as well as further documentation to be drafted in accordance with the terms and conditions agreed upon between the Company and Hypur Ventures.

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Options and Warrants

3 Months Ended

Mar. 31, 2020

Options And Warrants

Options and Warrants

Note 10 – Options and warrants

Options

All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award is estimated using a Black-Scholes-Merton option valuation model. The Company has not paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes-Merton option valuation model. Volatility is an estimate based on the calculated historical volatility of similar entities in industry, in size and in financial leverage, whose share prices are publicly available. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company has no historical experience with which to establish a basis for determining an expected life of these awards. Therefore, the Company only gave consideration to the contractual terms and did not consider the vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures significant to the expected life of the option award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term equal to the expected life of the award.

On December 28, 2016, the Company issued stock options to various offices and employees of the Company to purchase 7,950,000 shares of the Company’s common stock at an exercise price of $0.05 per share. The options vest immediately. The options carry a life of three years and have since expired.

During the year ended December 31, 2018 a total of 466,667 stock options were forfeited by various employees of the Company.

The following is a summary of the Company’s stock option activity for the three months ended March 31, 2020 and year ended December, 31 2019:

	Number Of Shares			Weighted-Average Exercise Price
Outstanding at December 31, 2018		24,011,738		$	0.11
Granted		-		$	-
Expired		-		$	-
Cancelled		-		$	-
Outstanding at December 31, 2019		24,011,738		$	0.11
Granted		-		$	-
Expired (1)		(7,950,000	)	$	0.05
Cancelled		-		$	-
Outstanding at March 31. 2020		16,061,738		$	0.14
Options exercisable at December 31, 2019		24,011,738		$	0.11
Options exercisable at March 31, 2020		16,061,738		$	0.14

The following tables summarize information about stock options outstanding and exercisable at March 31, 2020 and December 31, 2019:

OPTIONS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		16,061,738		.30	$	0.11		10,061,738	$	0.11

OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		24,011,738		.30	$	0.11		24,011,738	$	0.11

Total stock-based compensation expense in connection with options and modified awards recognized in the consolidated statement of operations for three months ended March 31, 2020 and 2019 was $0 and $0 respectively.

Warrants

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2020:

	Number Of Shares		Weighted-Average Exercise Price
Outstanding at December 31, 2019		10,000,000	$	0.10
Granted		-	$	-
Exercised		-	$	-
Cancelled		-	$	-
Outstanding at March 31, 2020		10,000,000	$	0.10
Warrants exercisable at December 31, 2019		10,000,000	$	0.10
Warrants exercisable at March 31, 2020		10,000,000	$	0.10

The following tables summarize information about warrants outstanding and exercisable at March 31, 2020 and December 31, 2019:

WARRANTS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.32	$	0.10		10,000,000	$	0.10

WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.52	$	0.10		10,000,000	$	0.10

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Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 11 – Subsequent events

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined there are no additional events required to be disclosed.

Os September 18, 2020 Crown Bridge Partners, LLC, converted notes payable in the amount of $2,980 principal and $500 of fees into 29,000,000 shares of common stock

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Accounting Policies and Procedures (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Interim Financial Statements

Interim financial statements

The unaudited interim consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of management, these statements reflect all adjustments, all of which are of a normal recurring nature, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2019 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual results.

Principles of Consolidation

Principles of consolidation

For the three months ended March 31, 2020 and 2019, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (formerly The Engraving Masters, Inc.), Blue Line Advisory Services, Inc. (a Nevada corporation; “BLAS”), Blue Line Capital, Inc. (a Colorado corporation; “Blue Line Capital”), Blue Line Protection Group (California), Inc. (a California corporation; “Blue Line California”), Blue Line Colorado, Blue Line Protection Group Illinois, Inc. (an Illinois corporation; “Blue Line Illinois”), BLPG, Inc. (a Nevada corporation; “Blue Line Nevada”), Blue Line Protection Group (Washington), Inc. (a Washington corporation; “Blue Line Washington”). All significant intercompany balances and transactions have been eliminated. BLPG and its subsidiaries are collectively referred herein to as the “Company.”

Basis of Presentation

Basis of presentation

The financial statements present the balance sheets, statements of operations, stockholder’s equity (deficit) and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

The Company has adopted December 31 as its fiscal year end.

Use of Estimates

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 revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents

The Company maintains a cash balance in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of March 31, 2020 and December 31, 2019.

Accounts Receivable

Accounts receivable

Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote.

Allowance for Uncollectible Accounts

Allowance for uncollectible accounts

The Company estimates losses on receivables based on known troubled accounts, if any, and historical experience of losses incurred. There was no allowance for doubtful customer receivables at March 31, 2020 and December 31, 2019.

Property and Equipment

Property and equipment

Property and equipment is recorded at cost and capitalized from the initial date of service. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows:

Automotive Vehicles	5 years
Furniture and Equipment	7 years
Buildings and Improvements	15 years

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as March 31, 2020 and December 31, 2019. Depreciation expense for the three months ended March 31, 2020 and March 31, 2019, is $28,180 and $31,082, respectively.

Impairment of Long-Lived Assets

Impairment of long-lived assets

The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost or carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and its fair value or disposable value. As of March 31, 2020 and December 31, 2019, the Company determined that none of its long-term assets were impaired.

Concentration of Business and Credit Risk

Concentration of business and credit risk

The Company has no significant off-balance sheet risks such as foreign exchange contracts, option contracts or other hedging arrangements. The Company’s financial instruments that are exposed to concentration of credit risks consist primarily of cash. The Company maintains its cash in bank accounts, which may at times, exceed federally insured limits.

The Company had three major customers which generated 19%, 14% and 10%, respectively, for a total of approximately 43% of total revenue in the three months ended March 31, 2020.

The Company had one major customer which generated approximately 18% of total revenue in the three months ended March 31, 2019.

Related Party Transactions

Related party transactions

FASB ASC 850, “Related Party Disclosures” requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. Related parties are defined to include any principal owner, director or executive officer of the Company and any immediate family members of a principal owner, director or executive officer.

Fair Value of Financial Instruments

Fair value of financial instruments

The carrying amounts reflected in the balance sheets for cash, accounts payable and related party payables approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following table presents the derivative financial instruments, the Company’s only financial liabilities, measured and recorded at fair value on the Company’s consolidated balance sheet on a recurring basis, and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

March 31, 2020

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,455,129	$	-	$	-	$	1,455,129
Warrant derivative liabilities	$	282	$	-	$	-	$	282
Total	$	1,455,411	$	-	$	-	$	1,455,411

December 31, 2019

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,169,515	$	-	$	-	$	1,695,515
Warrant derivative liabilities	$	545	$	-	$	-	$	545
Total	$	1,170,060	$	-	$	-	$	1,170,060

The embedded conversion feature in the convertible debt instruments that the Company issued, that became convertible qualified them as derivative instruments since the number of shares issuable under the notes are indeterminate based on guidance in FASB ASC 815, Derivatives and Hedging. These convertible notes tainted all other equity linked instruments including outstanding warrants and fixed rate convertible debt on the date that the instrument became convertible. The valuation of the derivative liability of the warrants was determined through the use of Black Scholes option-pricing model (See Note 8).

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when delivery of the promised goods or services is transferred to its customers, in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services. We determine revenue recognition through the following five steps:

● Identify the contract with the customer;

● Identify the performance obligations in the contract;

● Determine the transaction price;

● Allocate the transaction price to the performance obligations in the contract; and

● Recognize revenue when, or as, the performance obligations are satisfied.

We generate substantially all our revenue from providing services to customers. The Company records revenue with the 5 steps above have been completed.

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the Industry Topics of the Accounting Standards Codification. The updated guidance states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also provides for additional disclosures with respect to revenues and cash flows arising from contracts with customers. The Company adopted the standard using the modified retrospective approach effective January 1, 2018.

The Company adopted these standards at the beginning of the first quarter of fiscal 2018 using the modified retrospective method. The adoption of these standards did not have an impact on the Company’s Statements of Operations in for the year ended December 31, 2018.

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics. Revenue is characterized by several lines of services and typically the pricing is fixed.

Three months ended March 31,
Revenue Breakdown by Streams	2020		2019
Service: Guards	$	-	$	267,734
Service: Transportation		518,728		22,865
Service: Currency Processing		458,667		355,237
Service: Compliance		14,067		12,248
Other		-		525
Total	$	991,462	$	928,609

As of December 31, 2019 the Company discontinued its Service-Guards segment.

Advertising Costs

Advertising costs

The Company expenses all costs of advertising as incurred. There were $3,075 and $3,770 in advertising costs for the three months ended March 31, 2020 and 2019, respectively.

General and Administrative Expenses

General and administrative expenses

The significant components of general and administrative expenses consist mainly of rent and compensation.

Share-Based Compensation

Share-Based Compensation

Share-based compensation expense is recorded as a result of stock options granted in return for services rendered. Previously, the share-based payment arrangements with employees were accounted for under ASC 718, while nonemployee share-based payments issued for goods and services are accounted for under ASC 505-50. ASC 505-50 differs significantly from ASC 718. On June 20, 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company has adopted the new standard and has made some adjustment with regard to the share-based compensation costs. Under the ASU 2018-07, the measurement of equity-classified nonemployee share-based payments is generally fixed on the grant date and the options are no longer revalued on each reporting date. The expenses related to the share-based compensation are recognized on each reporting date. The amount is calculated as the difference between total expenses incurred and the total expenses already recognized.

Cost of Revenue

Cost of Revenue

The Company’s cost of revenue primarily consists of labor, fuel costs and items purchased by the Company specifically purposed for the benefit of the Company’s client.

Basic and Diluted Earnings Per Share

Basic and Diluted Earnings per share

Net loss per share is provided in accordance with FASB ASC 260-10, “Earnings per Share”. Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For the periods presented all common stock equivalents were excluded from the calculation of diluted loss per share as their effect would be anti-dilutive.

Dividends

Dividends

The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception.

Income Taxes

Income Taxes

The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

Recent Pronouncements

Recent Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which will amend current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. This standard was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019 but without retrospective application. Therefore, there was no impact recorded to beginning retained earnings or the statement of operations

The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

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Accounting Policies and Procedures (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

The estimated useful lives for significant property and equipment categories are as follows:

Automotive Vehicles	5 years
Furniture and Equipment	7 years
Buildings and Improvements	15 years

Schedule of Fair Value of Liabilities Measured on Recurring Basis

The following table presents the derivative financial instruments, the Company’s only financial liabilities, measured and recorded at fair value on the Company’s consolidated balance sheet on a recurring basis, and their level within the fair value hierarchy as of March 31, 2020 and December 31, 2019:

March 31, 2020

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,455,129	$	-	$	-	$	1,455,129
Warrant derivative liabilities	$	282	$	-	$	-	$	282
Total	$	1,455,411	$	-	$	-	$	1,455,411

December 31, 2019

	Amount		Level 1		Level 2		Level 3
Embedded conversion derivative liability	$	1,169,515	$	-	$	-	$	1,695,515
Warrant derivative liabilities	$	545	$	-	$	-	$	545
Total	$	1,170,060	$	-	$	-	$	1,170,060

Schedule of Revenue by Major Customers by Reporting Segments

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics. Revenue is characterized by several lines of services and typically the pricing is fixed.

Three months ended March 31,
Revenue Breakdown by Streams	2020		2019
Service: Guards	$	-	$	267,734
Service: Transportation		518,728		22,865
Service: Currency Processing		458,667		355,237
Service: Compliance		14,067		12,248
Other		-		525
Total	$	991,462	$	928,609

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Leases Payments

The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets

Future minimum lease payments as of March 31, 2020:
2020	$	44,415
2021		30,338
2022 and thereafter		2,260
Total minimum lease payments	$	77,013

Schedule of Operating Leases

The lease agreement gives the Company the option to renew it for two additional 5 year terms but the Company did not consider it likely to exercise that option. Therefore, the company did not include such amounts in its computations of the present value of remaining lease payment on adoption date.

Supplemental balance sheet information related to leases is as follows:

Operating Leases	Classification	March 31, 2020
Right-of-use assets	Operating right of use assets	$	831,115
Current lease liabilities	Current operating lease liabilities		119,135
Non-current lease liabilities	Long-term operating lease liabilities		754,288
Total lease liabilities		$	873,423

Operating Leases	Classification	December 31, 2019
Right-of-use assets	Operating right of use assets	$	859,426
Current lease liabilities	Current operating lease liabilities		114,653
Non-current lease liabilities	Long-term operating lease liabilities		785,802
Total lease liabilities		$	900,455

Summary of Operating Lease Liabilities

Lease term and discount rate were as follows:

	March 31, 2020
Weighted average remaining lease term (years)		5.00
Weighted average discount rate		12	%

	December 31, 2019
Weighted average remaining lease term (years)		5.26
Weighted average discount rate		12	%

Summary of Lease Expenses

The following summarizes lease expenses for the year ended March 31, 2020:

Finance lease expenses:

Depreciation/amortization expense	$	28,311
Interest on lease liabilities		26,745
Finance lease expense	$	55,056

The following summarizes lease expenses for the year ended December 31, 2019:

Finance lease expenses:

Depreciation/amortization expense	$	189,290
Interest on lease liabilities		6,009
Finance lease expense	$	195,299

Schedule of Cash Flow Information Related to Lease

Supplemental disclosures of cash flow information related to leases were as follows:

	March 31, 2020
Cash paid for operating lease liabilities	$	28,311
Operating right of use assets obtained in exchange for operating lease liabilities	$	-

	December 31, 2019
Cash paid for operating lease liabilities	$	155,549
Operating right of use assets obtained in exchange for operating lease liabilities	$	1,082,241

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows as of March 31, 2020:

	Operating Leases
2020	$	161,531
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,214,340
Less: Imputed interest		(340,917	)
Present value of lease liabilities	$	873,423

Maturities of lease liabilities were as follows as of December 31, 2019:

	Operating Leases
2020	$	216,587
2021		222,067
2022		227,253
2023		199,098
2024		155,531
2025		141,302
2026		107,558
Total		1,269,396
Less: Imputed interest		(368,941	)
Present value of lease liabilities	$	900,455

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Fixed Assets (Tables)

3 Months Ended

Mar. 31, 2020

Fixed assets:

Schedule of Machinery and Equipment

Machinery and equipment consisted of the following at:

	March 31, 2020			December 31, 2019
Automotive vehicles	$	381,844		$	381,844
Furniture and equipment		85,435			85,435
Machinery and Equipment		135,706			135,706
Leasehold improvements		105,714			105,714
Fixed assets, total		708,699			708,699
Total : accumulated depreciation		(353,465	)		(325,285	)
Fixed assets, net	$	355,234		$	383,414

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Derivative Liability (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liabilities at Fair Value

The change in the fair value of derivative liabilities is as follows:

Balance - December 31, 2018	$	727,332
Addition of new derivative as a derivative loss
Settlement of derivatives upon conversion		(292,611	)
Debt discount from derivative liability		383,265
Loss on change in fair value of the derivative		352,074
Balance - December 31, 2019	$	1,170,060
Loss on change in fair value of the derivative		285,351
Balance – March 31, 2020	$	1,455,411

Schedule of Derivative Instruments, Black-Scholes Option-pricing Model Inputs Used

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date:

	Three Months ended March 31, 2020		Year ended December 31, 2019
Expected term	0.01 – 1.42 years		0.01 – 1.67 years
Expected average volatility	142% – 361.46	%	24.93% – 270.08	%
Expected dividend yield	-		-
Risk-free interest rate	0.09% – 0.15	%	1.55% – 1.60	%

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Options and Warrants (Tables)

3 Months Ended

Mar. 31, 2020

Options And Warrants

Summary of Stock Option Activity

The following is a summary of the Company’s stock option activity for the three months ended March 31, 2020 and year ended December, 31 2019:

	Number Of Shares			Weighted-Average Exercise Price
Outstanding at December 31, 2018		24,011,738		$	0.11
Granted		-		$	-
Expired		-		$	-
Cancelled		-		$	-
Outstanding at December 31, 2019		24,011,738		$	0.11
Granted		-		$	-
Expired (1)		(7,950,000	)	$	0.05
Cancelled		-		$	-
Outstanding at March 31. 2020		16,061,738		$	0.14
Options exercisable at December 31, 2019		24,011,738		$	0.11
Options exercisable at March 31, 2020		16,061,738		$	0.14

Schedule of Stock Options Outstanding and Exercisable Exercise Price Range

The following tables summarize information about stock options outstanding and exercisable at March 31, 2020 and December 31, 2019:

OPTIONS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		16,061,738		.30	$	0.11		10,061,738	$	0.11

OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Options Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.034 – 1.00		24,011,738		.30	$	0.11		24,011,738	$	0.11

Summary of Warrants Activity

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2020:

	Number Of Shares		Weighted-Average Exercise Price
Outstanding at December 31, 2019		10,000,000	$	0.10
Granted		-	$	-
Exercised		-	$	-
Cancelled		-	$	-
Outstanding at March 31, 2020		10,000,000	$	0.10
Warrants exercisable at December 31, 2019		10,000,000	$	0.10
Warrants exercisable at March 31, 2020		10,000,000	$	0.10

Schedule of Warrants Outstanding and Exercisable Exercise Price Range

The following tables summarize information about warrants outstanding and exercisable at March 31, 2020 and December 31, 2019:

WARRANTS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2020
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.32	$	0.10		10,000,000	$	0.10

WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2019
Range of Exercise Prices		Number of Warrants Outstanding		Weighted- Average Remaining Contractual Life in Years		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$	0.10		10,000,000		1.52	$	0.10		10,000,000	$	0.10

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History and Organization of the Company (Details Narrative) - $ / shares	May 06, 2014	Mar. 31, 2020	Dec. 31, 2019	Sep. 11, 2006
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common stock, shares authorized	1,400,000,000	1,400,000,000	1,400,000,000	100,000,000
Common stock, par value		$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized		100,000,000	100,000,000	100,000,000
Preferred stock, par value		$ 0.001	$ 0.001	$ 0.001
Equity stock split forward	The Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held.

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Accounting Policies and Procedures (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Cash equivalents
Allowance for doubtful receivables
Impairment charges
Depreciation expense	28,180	$ 31,082
Advertising costs	$ 3,075	$ 3,770
Revenue [Member] | Customer One [Member]
Concentration credit risk, percentage	19.00%
Revenue [Member] | Customer Two [Member]
Concentration credit risk, percentage	14.00%
Revenue [Member] | Customer Three [Member]
Concentration credit risk, percentage	10.00%
Revenue [Member] | Three Major Customers [Member]
Concentration credit risk, percentage	43.00%
Revenue [Member] | One Major Customers [Member]
Concentration credit risk, percentage		18.00%

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Accounting Policies and Procedures - Schedule of Estimated Useful Lives of Property and Equipment (Details)	3 Months Ended
	Mar. 31, 2020
Automotive Vehicles [Member]
Property and equipment, useful lives	5 years
Furniture and Equipment [Member]
Property and equipment, useful lives	7 years
Buildings and Improvements [Member]
Property and equipment, useful lives	15 years

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Accounting Policies and Procedures - Schedule of Fair Value of Liabilities Measured on Recurring Basis (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Embedded conversion derivative liability	$ 1,455,129	$ 1,169,515
Warrant derivative liabilities	282	545
Total	1,455,411	1,170,060	$ 727,332
Level 1 [Member]
Embedded conversion derivative liability
Warrant derivative liabilities
Total
Level 2 [Member]
Embedded conversion derivative liability
Warrant derivative liabilities
Total
Level 3 [Member]
Embedded conversion derivative liability	1,455,129	1,695,515
Warrant derivative liabilities	282	545
Total	$ 1,455,411	$ 1,170,060

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Accounting Policies and Procedures - Schedule of Revenue by Major Customers by Reporting Segments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total	$ 991,462	$ 928,609
Service: Guards [Member]
Total		267,734
Service: Transportation [Member]
Total	518,728	22,865
Service: Currency Processing [Member]
Total	458,667	355,237
Service: Compliance [Member]
Total	14,067	12,248
Other [Member]
Total		$ 525

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Commitments and Contingencies (Details Narrative) - USD ($)									1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 22, 2019	Aug. 16, 2018	May 29, 2018	Apr. 25, 2018	Oct. 27, 2016	Jun. 14, 2016	Apr. 14, 2016	Nov. 06, 2015	Mar. 01, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accounts payable
Gain on settlement of a vendor payable										4,500
Operating lease										28,311		155,549
Repayment of mortgage											$ 1,027
Right-of-use assets										831,115		859,426
Operating lease liability										873,423		900,455
ASC 842 [Member]
Operating lease term	5 years
Right-of-use assets	$ 1,082,241
Operating lease liability	1,082,241
Vehicle [Member]
Operating lease		$ 58,476		$ 38,388					$ 64,354
Operating lease down payment		$ 20,000		$ 7,500					$ 30,000
Number of monthly payment		36 months		36 months					36 months
Lease payment including sales tax		$ 1,265		$ 1,016					$ 1,130
Lease description		The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets		The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets					The Company recognized this arrangement as a finance lease based on the determination that the lease exceeded 75% of the economic life of the underlying assets
Delivery fees, taxes and first payment		$ 10,000
Building [Member]
Repayment of mortgage					$ 677,681
Operating lease, option to extend			The Company having the option to extend the term of the lease for additional four year periods.		The Company having the option to extend the term of the lease for two additional five-year periods.
Operating leases, rent expense, net	$ 3,200		$ 3,880		$ 10,000
Operating lease term	63 months		1 year		10 years
Rent increase annually, percentage			2.00%		2.00%
Lease requires rental paid as deposit	$ 3,200		$ 4,369		$ 30,000
Incremental borrowing rate	12.00%
Building [Member] | Maximum [Member] | 28 Through 63 Months [Member]
Operating leases, rent expense, net	$ 3,400
Daniel Sullivan [Member] | Mile High Real Estate Group [Member]
Contingent liabilities										98,150		98,150
Utilities for operating and building remodeling amount								$ 98,150
Unrelated Third Party [Member]
Consultant fee						$ 75,000	$ 75,000
Number of restricted common stock issue							1,500,000
Unrelated Third Party [Member] | Building [Member]
Sale of building, amount					$ 1,400,000
Independent Contractor Agreement [Member] | Daniel Sullivan [Member]
Claim for unpaid wages								8,055
Unreimbursed compensation								$ 154,409
Contingent liabilities										$ 34,346		$ 34,346

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Commitments and Contingencies - Schedule of Future Minimum Leases Payments (Details)	Mar. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 44,415
2021	30,338
2022 and thereafter	2,260
Total minimum lease payments	$ 77,013

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Commitments and Contingencies - Schedule of Operating Leases (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Right-of-use assets	$ 831,115	$ 859,426
Current lease liabilities	119,135	114,653
Non-current lease liabilities	754,288	785,802
Total lease liabilities	873,423	900,455
Operating Right of Use Assets [Member]
Right-of-use assets	831,115	859,426
Current Operating Lease Liabilities [Member]
Current lease liabilities	119,135	114,653
Long-term Operating Lease Liabilities [Member]
Non-current lease liabilities	$ 754,288	$ 785,802

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Commitments and Contingencies - Summary of Operating Lease Liabilities (Details)	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Weighted average remaining lease term (years)	5 years	5 years 3 months 4 days
Weighted average discount rate	12.00%	12.00%

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Commitments and Contingencies - Summary of Lease Expenses (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Depreciation/amortization expense	$ 28,311	$ 189,290
Interest on lease liabilities	26,745	6,009
Finance lease expense	$ 55,056	$ 195,299

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Commitments and Contingencies - Schedule of Cash Flow Information Related to Lease (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Cash paid for operating lease liabilities	$ 28,311	$ 155,549
Operating right of use assets obtained in exchange for operating lease liabilities		$ 1,082,241

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Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020	$ 161,531	$ 216,587
2021	222,067	222,067
2022	227,253	227,253
2023	199,098	199,098
2024	155,531	155,531
2025	141,302	141,302
2026	107,558	107,558
Total	1,214,340	1,269,396
Less: Imputed interest	(340,917)	(368,941)
Present value of lease liabilities	$ 873,423	$ 900,455

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Fixed Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Fixed assets:
Depreciation expenses	$ 28,180	$ 31,082

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Fixed Assets - Schedule of Machinery and Equipment (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fixed assets, total	$ 708,699	$ 708,699
Total : accumulated depreciation	(353,465)	(325,285)
Fixed assets, net	355,234	383,414
Automotive Vehicles [Member]
Fixed assets, total	381,844	381,844
Furniture and Equipment [Member]
Fixed assets, total	85,435	85,435
Machinery and Equipment [Member]
Fixed assets, total	135,706	135,706
Leasehold Improvements [Member]
Fixed assets, total	$ 105,714	$ 105,714

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Notes Payable (Details Narrative) - USD ($)									1 Months Ended		3 Months Ended		12 Months Ended
	May 15, 2019	Feb. 24, 2019	Jul. 24, 2018	Mar. 21, 2018	Jan. 25, 2018	Jan. 02, 2018	Oct. 18, 2017	Jan. 05, 2016	Apr. 30, 2015	Feb. 28, 2015	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Debt discount											$ 0		$ 8,710
Amortization of debt discount											8,710	$ 18,790
Change in fair value of derivative liabilities											(285,351)	145,906
Amortization expenses from deferred financing cost												$ 1,511
Helix Funding, LLC [Member]
Debt principal amount	$ 100,000
Debt due date	Nov. 01, 2019
Interest rate	12.00%
Non-Affiliated Person [Member] | Notes Payable [Member]
Debt principal amount										$ 50,000
Debt due date										Apr. 06, 2015
Interest rate										10.00%
Notes payable											50,000		50,000
Non-Affiliated Person [Member] | Notes Payable One [Member]
Debt principal amount									$ 25,000
Debt due date									May 01, 2015
Interest rate									6.00%
Notes payable											25,000		25,000
Debt default penalty percentage									5.00%
Non-Affiliated Person [Member] | Notes Payable Two [Member]
Debt principal amount								$ 10,000
Debt due date								Jan. 05, 2017
Interest rate								5.00%
Notes payable											10,000		10,000
Debt default penalty percentage								5.00%
Unrelated Third Party [Member] | Convertible Notes Payable [Member]
Debt principal amount							$ 150,000
Debt due date							Jul. 16, 2018
Interest rate							10.00%
Notes payable											150,000		150,000	$ 150,000
Debt discount							$ 15,250
Debt default interest							24.00%
Debt convertible, terms							The conversion price is the lesser of (1) lowest trading price during the previous 25 days prior to the note agreement or (2) 50% lowest trading price during the 25 days prior to conversion. Covenants: The Borrower shall not, without the Holder's consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business.
Amortization of debt discount							$ 134,750
Accrued interest													$ 39,478
Unrelated Third Party [Member] | Convertible Notes Payable Two [Member]
Debt due date													May 11, 2019
Extension fees													$ 75,000
Debt converted into shares of common stock													217,882,455
Loss on debt instrument													$ 61,624
Unrelated Third Party [Member] | Convertible Notes Payable Six [Member]
Debt principal amount						$ 30,000
Debt due date						Jan. 02, 2019
Interest rate						12.00%
Notes payable		$ 9,373
Debt default interest						15.00%
Debt convertible, terms						The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion.
Amortization of debt discount														28,000
Accrued interest		$ 2,625
Debt converted into shares of common stock		18,380,000
Debt fee		$ 500				$ 2,000
Amortization expense													164	1,989
Interest expense														27,847
Loss on conversion of debt securities													10,527
Unrelated Third Party [Member] | Convertible Notes Payable Seven [Member]
Debt principal amount					$ 150,000									85,149
Debt due date					Jan. 25, 2019
Interest rate					12.00%
Debt discount			$ 142,500
Debt convertible, terms					The Lender is entitled, at its option, at any time after July 24, 2018 to convert all or any part of the outstanding and unpaid principal and accrued interest into shares of the Company's common stock at a price per share equal to 55% of the average of the lowest trading price for the 20 trading days immediately preceding the conversion date.
Amortization of debt discount														$ 132,740
Accrued interest													$ 64,881
Debt converted into shares of common stock													104,466,022	33,375,972
Loss on debt instrument													$ 2,532
Debt fee					$ 7,500
Amortization expense													9,863	$ 6,986
Debt interest rate description					If the loan is not paid when due, any unpaid amount will bear interest at 18% per year.
Change in fair value of derivative liabilities			$ 74,900
Unrelated Third Party [Member] | Convertible Notes Payable Nine [Member]
Debt principal amount				$ 45,000									23,223
Debt due date				Mar. 21, 2019
Interest rate				12.00%
Notes payable											$ 22,198		$ 22,198
Debt default interest				15.00%
Debt convertible, terms				The conversion Feature Convertible immediately after the issuance, the Holder has the option to convert the outstanding principal and accrued interest into common stock of the Company. The Conversion price is 55% of the lowest trading price during the 25 Trading Day periods prior to the Conversion. Covenants: The Borrower shall not, without the Holder's consent, sell, lease or dispose of any significant portion of its assets outside the ordinary course of business.
Amortization of debt discount														40,500
Debt converted into shares of common stock													84,160,250
Loss on debt instrument													$ 32,858
Debt fee				$ 4,500
Amortization expense													$ 9,863	3,514
Interest expense														$ 31,623

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Notes Payable - Related Parties (Details Narrative) - USD ($)																							1 Months Ended				3 Months Ended		9 Months Ended	12 Months Ended
	Mar. 10, 2020	Sep. 03, 2019	May 10, 2019	Mar. 05, 2019	Jan. 18, 2019	Nov. 26, 2018	Nov. 21, 2018	Oct. 29, 2018	Aug. 06, 2018	Jul. 02, 2018	Jun. 14, 2018	Apr. 13, 2018	Jul. 13, 2017	May 26, 2017	Mar. 07, 2017	Oct. 14, 2016	Sep. 20, 2016	Sep. 01, 2016	Aug. 08, 2016	Jul. 07, 2016	Oct. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Nov. 30, 2015	Jul. 31, 2015	Jul. 31, 2014	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015	Sep. 11, 2006
Proceeds from related party debt																												$ 15,000
Repayment of debt																												1,027
Accounts payable converted to notes payable																											62,000
Loan fees																											$ 10,665
Common stock, par value																											$ 0.001			$ 0.001				$ 0.001
Amortization of debt discount																											$ 8,710	$ 18,790
Debt discount																											0			$ 8,710
Hypur Inc. [Member]
Proceeds from related party debt				$ 50,000	$ 250,000
Debt interest rate				18.00%	18.00%
Amortization of debt discount					$ 167,079
Interest expenses					$ 167,079
Conversion price per share				$ 0.0002	$ 0.0002
Debt instrument due, description				The loan was due 10 days from the date of issuance and bears interest at 18% per annum.	The loan was due 10 days from the date of issuance and bears interest at 18% per annum.
Lowest trading price percentage				60.00%	60.00%
Debt default interest				24.00%	24.00%
Promissory Note [Member] | Hypur Inc. [Member]
Proceeds from related party debt																			$ 52,000
Principal balance																											$ 52,000			$ 52,000
Debt due date																			Aug. 10, 2017
Debt interest rate																			18.00%
Common stock, par value																			$ 0.001
Debt default interest rate																			24.00%
Redemption price, description																			Upon default, if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount.
Redemption price, percentage																			150.00%								150.00%			150.00%
Promissory Note One [Member] | Hypur Inc. [Member]
Proceeds from related party debt																	$ 47,500
Principal balance																											$ 47,500			$ 47,500
Debt due date																	Dec. 20, 2016
Debt interest rate																	18.00%
Common stock, par value																	$ 0.001
Debt default interest rate																	24.00%
Redemption price, description																	Upon default, and if the default has not been remedied within 30 days, the redemption price would be 150% of the principal amount.
Redemption price, percentage																	150.00%										150.00%			150.00%
Promissory Note Two [Member] | Hypur Inc. [Member]
Proceeds from related party debt								$ 100,000
Principal balance																											$ 100,000			$ 100,000
Debt due date								Jan. 28, 2019
Debt interest rate								18.00%
Common stock, par value								$ 0.001
Debt default interest rate								24.00%
Amortization of debt discount																														89,350
Interest expenses																														89,350
Promissory Note Three [Member] | Hypur Inc. [Member]
Proceeds from related party debt							$ 70,000
Principal balance																											70,000			70,000
Debt due date							Feb. 19, 2019
Debt interest rate							18.00%
Common stock, par value							$ 0.001
Debt default interest rate							24.00%
Amortization of debt discount																														55,830
Interest expenses																														55,830
Promissory Note Four [Member] | Hypur Inc. [Member]
Proceeds from related party debt						$ 75,000
Principal balance																											75,000			75,000
Debt due date						Feb. 24, 2019
Debt interest rate						18.00%
Common stock, par value						$ 0.001
Debt default interest rate						24.00%
Amortization of debt discount																														58,913
Interest expenses																														58,913
Promissory Note Five [Member] | Hypur Inc. [Member]
Proceeds from related party debt			$ 75,000
Principal balance																											75,000			75,000
Debt due date			May 12, 2020
Debt interest rate			18.00%
Common stock, par value			$ 0.001
Debt default interest rate			24.00%
Promissory Note Six [Member] | Hypur Inc. [Member]
Proceeds from related party debt		$ 21,000
Principal balance																											21,000			21,000
Debt due date		Dec. 03, 2019
Debt interest rate		18.00%
Common stock, par value		$ 0.001
Debt default interest rate		24.00%
Convertible Notes [Member]
Proceeds from related party debt																							$ 20,000	$ 25,000
Debt due date																								Nov. 04, 2016
Debt interest rate																								5.00%
Conversion price per share																								$ 0.025
Convertible notes payable																											45,000			45,000
Convertible Notes One [Member]
Proceeds from related party debt																																$ 110,000
Debt interest rate																									5.00%
Conversion price per share																									$ 0.025
Convertible notes payable																											500,000			500,000
Debt instrument redeem price, percentage																									150.00%
Convertible Notes One [Member] | Maximum [Member]
Proceeds from related party debt																									$ 500,000
Convertible Promissory Note [Member] | Hypur Ventures, L.P [Member]
Proceeds from related party debt																		$ 75,000
Principal balance																											75,000			75,000
Debt interest rate																		10.00%
Debt default interest rate																		15.00%
Conversion price per share																		$ 0.05
Debt instrument redeem price, percentage																		150.00%
Debt instrument due, description																		The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period.
Convertible Promissory Note [Member] | Hypur Ventures, L.P [Member] | Ten-Day Period [Member]
Conversion price per share																		$ 0.50
Convertible Promissory Note One [Member] | Hypur Ventures, L.P [Member]
Proceeds from related party debt																$ 100,000
Principal balance																											100,000			100,000
Debt interest rate																10.00%
Debt default interest rate																15.00%
Conversion price per share																$ 0.05
Debt instrument redeem price, percentage																150.00%
Debt instrument due, description																The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period.
Convertible Promissory Note One [Member] | Hypur Ventures, L.P [Member] | Ten-Day Period [Member]
Conversion price per share																$ 0.50
Convertible Note [Member]
Debt discount																											1,830,217			1,821,507
Related Party Loan One [Member]
Proceeds from related party debt																																	$ 20,000
Principal balance																											30,000			30,000
Cash and expenses, related party																						$ 10,000
Related Party Loan One [Member] | Hypur Ventures, L.P [Member]
Proceeds from related party debt															$ 100,000
Principal balance																											100,000			100,000
Debt interest rate															10.00%
Debt default interest rate															15.00%
Conversion price per share															$ 0.05
Debt instrument redeem price, percentage															150.00%
Debt instrument due, description															The loan is due 180 days from March 7, 2017 and bears interest at 10% per annum. The loan is convertible into shares of the Company's common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company's common stock if the price of the Company's common stock is over $.50 per share during any ten-day period.
Related Party Loan One [Member] | Hypur Ventures, L.P [Member] | Ten-Day Period [Member]
Conversion price per share															$ 0.50
Related Party Loan Two [Member]
Principal balance																											54,621			54,621
Cash and expenses, related party																						$ 180,121
Repayment of debt																																	$ 125,500
Related Party Loan Two [Member] | CGDK, LLC [Member]
Proceeds from related party debt														$ 100,000
Principal balance																											100,000			100,000
Debt interest rate														5.00%
Conversion price per share														$ 0.025
Debt instrument due, description														The loan is due 360 days from May 26, 2017 and bears interest at 5% per annum.
Related Party Loan Two [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share														$ 0.25
Related Party Loan Three [Member] | CGDK, LLC [Member]
Proceeds from related party debt													$ 150,000
Principal balance																											150,000			150,000
Debt interest rate													5.00%
Conversion price per share													$ 0.05
Debt instrument due, description													The loan is due 360 days from July 13, 2017, and bears interest at 5% per annum.
Related Party Loan Three [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share													$ 0.25
Related Party Loan Four [Member] | CGDK, LLC [Member]
Proceeds from related party debt												$ 130,000
Principal balance																											130,000			130,000
Debt interest rate												12.00%
Amortization of debt discount																													$ 27,560		$ 72,694
Conversion price per share												$ 0.05
Debt instrument due, description												The loan is due 360 days from April 13, 2018, bears interest at 12% per annum.
Debt discount																															101,272
Related Party Loan Four [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share												$ 0.25
Related Party Loan Five [Member] | CGDK, LLC [Member]
Proceeds from related party debt											$ 30,217
Principal balance																											30,217			30,217
Debt interest rate											12.00%
Amortization of debt discount																														3,697	5,639
Conversion price per share											$ 0.05
Debt instrument due, description											The loan is due 360 days from June 18, 2018, bears interest at 12% per annum.
Debt discount																															10,292
Related Party Loan Five [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share											$ 0.25
Related Party Loan Six [Member] | CGDK, LLC [Member]
Proceeds from related party debt										$ 150,000
Principal balance																											150,000			150,000
Debt interest rate										12.00%
Amortization of debt discount																														7,390	9,862
Conversion price per share										$ 0.05
Debt instrument due, description										The loan is due July 2, 2019 and bears interest at 12% per annum
Debt discount										$ 19,779
Number of common stock shares during period										2,500,000
Related Party Loan Six [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share										$ 0.10
Related Party Loan Seven [Member] | CGDK, LLC [Member]
Proceeds from related party debt									$ 150,000
Principal balance																											150,000			150,000
Debt interest rate									12.00%
Amortization of debt discount																														7,793	8,093
Conversion price per share									$ 0.05
Debt instrument due, description									The loan is due July 2, 2019 and bears interest at 12% per annum.
Debt discount									$ 20,095
Number of common stock shares during period									2,500,000
Related Party Loan Seven [Member] | CGDK, LLC [Member] | Ten-Day Period [Member]
Conversion price per share									$ 0.10
Officer and Shareholder [Member]
Proceeds from related party debt																										$ 98,150
Principal balance																											98,150			98,150
Officer [Member]
Proceeds from related party debt	$ 102,665																				$ 30,000											265,363
Principal balance																											102,665			20,000
Repayment of debt																																$ 251,363
Same Related Party [Member]
Proceeds from related party debt																														22,500	184,500
Principal balance																											102,665			30,000
Repayment of debt																														$ 49,500	$ 121,500
Related Party [Member]
Proceeds from related party debt																				$ 73,000							24,000
Repayment of debt																											24,000
Accounts payable converted to notes payable																											65,000
Loan fees																											$ 10,665
Debt due date																				Jul. 07, 2017
Debt interest rate																				5.00%

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Derivative Liability - Schedule of Derivative Liabilities at Fair Value (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Beginning balance	$ 1,170,060	$ 727,332
Settlement of derivatives upon conversion		(292,611)
Debt discount from derivative liability		383,265
Loss on change in fair value of the derivative	285,351	352,074
Ending balance	$ 1,455,411	$ 1,170,060

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Derivative Liability - Schedule of Derivative Instruments, Black-Scholes Option-pricing Model Inputs Used (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Expected Term [Member] | Minimum [Member]
Fair value assumptions, measurement input, term	4 days	4 days
Expected Term [Member] | Maximum [Member]
Fair value assumptions, measurement input, term	1 year 5 months 1 day	1 year 8 months 2 days
Expected Average Volatility [Member] | Minimum [Member]
Fair value assumptions, measurement input, percentages	142	24.93
Expected Average Volatility [Member] | Maximum [Member]
Fair value assumptions, measurement input, percentages	361.46	270.08
Expected Dividend Yield [Member]
Fair value assumptions, measurement input, percentages	0.00	0.00
Risk-Free Interest Rate [Member] | Minimum [Member]
Fair value assumptions, measurement input, percentages	0.09	1.55
Risk-Free Interest Rate [Member] | Maximum [Member]
Fair value assumptions, measurement input, percentages	0.15	1.60

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Stockholders' Equity (Details Narrative) - USD ($)			2 Months Ended	3 Months Ended		12 Months Ended
	May 03, 2016	May 06, 2014	Aug. 31, 2016	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Sep. 11, 2006
Common stock, shares authorized		1,400,000,000		1,400,000,000		1,400,000,000	100,000,000
Preferred stock, shares authorized				100,000,000		100,000,000	100,000,000
Equity stock splint forward		The Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held.
Warrants exercise price per shares				$ 0.10		$ 0.10
Common Stock [Member]
Common stock for the conversion of convertibles loans, accrued interest, and fees, shares					98,898,873	424,888,727
Common stock for the conversion of convertibles loans, accrued interest, and fees, amount						$ 157,960
Loss on conversion of debt securities						$ 107,541
Hypur Ventures, L.P [Member] | Preferred Stock [Member]
Issuance of common stock, shares	10,000,000		10,000,000
Issuance of common stock warrants	5,000,000		5,000,000
Warrant term	5 years		5 years
Warrants exercise price per shares	$ 0.10		$ 0.10
Purchase price per share	$ 0.05		$ 0.05
Proceeds from issuance of warrants	$ 500,000		$ 445,000
Conversion of beneficial features, intrinsic value	$ 114,229		0
Legal fees			$ 55,000
Debt conversion trading conversion price per shares			$ 0.50	$ 0.50

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Options and Warrants (Details Narrative) - USD ($)		3 Months Ended		12 Months Ended
	Dec. 28, 2016	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Share-based compensation issued stock option to purchase	7,950,000
Stock option exercise price per shares	$ 0.05
Share-based payment award, award vesting period	3 years
Share-based compensation options, forfeitures in period
Stock-based compensation expense		$ 0	$ 0
Stock Options [Member]
Share-based compensation options, forfeitures in period					466,667

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Options and Warrants - Summary of Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Options And Warrants
Number of Shares, Outstanding, Beginning	24,011,738	24,011,738
Number of Shares, Granted
Number of Shares, Expired	(7,950,000)
Number of Shares, Cancelled
Number of Shares, Outstanding, Ending	16,061,738	24,011,738
Number of Shares, Exercisable, Ending	16,061,738	24,011,738
Weighted-Average Exercise Price, Outstanding, Beginning	$ 0.11	$ 0.11
Weighted-Average Exercise Price, Granted
Weighted-Average Exercise Price, Expired	0.05
Weighted-Average Exercise Price, Cancelled
Weighted-Average Exercise Price, Outstanding, Ending	0.14	0.11
Weighted-Average Exercise Price, Exercisable, Ending	$ 0.14	$ 0.11

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Options and Warrants - Schedule of Stock Options Outstanding and Exercisable Exercise Price Range (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Options And Warrants
Range of Exercise Prices, lower range limit	$ 0.034	$ 0.034
Range of Exercise Prices, upper range limit	$ 1.00	$ 1.00
Number of Options Outstanding	16,061,738	24,011,738	24,011,738
Weighted-Average Remaining Contractual Life in Years	3 months 19 days	3 months 19 days
Weighted- Average Exercise Price	$ 0.14	$ 0.11	$ 0.11
Number Exercisable	16,061,738	24,011,738
Weighted- Average Exercise Price	$ 0.14	$ 0.11

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Options and Warrants - Summary of Warrants Activity (Details)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Options And Warrants
Number of Shares, Outstanding, Beginning | shares	10,000,000
Number of Shares, Exercisable, Beginning | shares	10,000,000
Number of Shares, Granted | shares
Number of Shares, Expired | shares
Number of Shares, Cancelled | shares
Number of Shares, Outstanding, Ending | shares	10,000,000
Number of Shares, Exercisable, Ending | shares	10,000,000
Weighted-Average Exercise Price, Outstanding, Beginning | $ / shares	$ 0.10
Weighted-Average Exercise Price, Exercisable, Beginning | $ / shares	0.10
Weighted-Average Exercise Price, Granted | $ / shares
Weighted-Average Exercise Price, Expired | $ / shares
Weighted-Average Exercise Price, Cancelled | $ / shares
Weighted-Average Exercise Price, Outstanding, Ending | $ / shares	0.10
Weighted-Average Exercise Price, Exercisable, Ending | $ / shares	$ 0.10

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Options and Warrants - Schedule of Warrants Outstanding and Exercisable Exercise Price Range (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Options And Warrants
Range of Exercise Prices	$ 0.10	$ 0.10
Number of Warrants Outstanding	10,000,000	10,000,000
Weighted-Average Remaining Contractual Life in Years	1 year 3 months 26 days	1 year 6 months 7 days
Weighted - Average Exercise Price	$ 0.10	$ 0.10
Number Exercisable	10,000,000	10,000,000
Weighted - Average Exercise Price	$ 0.10	$ 0.10

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Subsequent Events (Details Narrative) - Subsequent Event [Member] - Crown Bridge Partners, LLC [Member]	Sep. 18, 2020 USD ($) shares
Principal amount	$ 2,980
Converted fees	$ 500
Number of shares of common stock | shares	29,000,000