10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2019

or

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from __________ to __________.

Commission file number 000-54464

THUNDER ENERGIES CORPORATION

(Exact Name of Registrant as specified in its charter)

Florida	45-1967797
(State or jurisdiction of Incorporation or organization	(I.R.S Employer Identification No.)
1444 Rainville Road, Tarpon Springs, Florida	34689
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 727-940-3944

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	None	None

  

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§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). x Yes   ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definition of "accelerated filer,” “large 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	¨	Smaller Reporting Company	x
Emerging growth company	x

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.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of July 31, 2019 was 7,041,288.

TABLE OF CONTENTS

		Page
Part I. Financial Information
Item 1.	Condensed Financial Statements.	3
	Condensed Balance Sheets as of June 30, 2019 (unaudited) and December 31, 2018 (audited).	3
	Condensed Statements of Operations for the three and six months ended June 30, 2019 and June 30, 2018 (unaudited).	4
	Condensed Statements of Changes in Stockholders’ Deficit as of June 30, 2019 (unaudited)	5
	Condensed Statements of Cash Flows for the six months ended June 30, 2019 and 2018 (unaudited)	6
	Notes to Condensed Financial Statements (unaudited).	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures.	25
Part II. Other Information.
Item 1.	Legal Proceedings.	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	26
Item 3.	Defaults Upon Senior Securities.	27
Item 4.	Mine Safety Disclosures.	27
Item 5.	Other Information.	27
Item 6.	Exhibits.	27
Signatures		29

2

Part I. Financial Information

Item 1. Financial Statements.

THUNDER ENERGIES CORPORATION

Condensed Balance Sheets

	June 30,			December 31,
	2019			2018
ASSETS
Current Assets
Cash	$	3,248		$	7,920
Total Current Assets		3,248			7,920
TOTAL ASSETS	$	3,248		$	7,920
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accrued interest	$	1,841		$	124
Accrued interest, related parties		46,356			43,349
Note payable		60,000			60,000
Note payable, related parties		285,380			281,380
Accrued compensation, related parties		315,000			189,000
Derivative liability		63,107			---
Convertible note payable, net of discount Of ($35,150) and $0, respectively		21,850			---
Total Current Liabilities		793,534			573,853
TOTAL LIABILITIES		793,534			573,853
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficit
Preferred stock: $0.001 par value, 750,000,000 authorized; 50,000,000 and 50,000,000 shares issued and outstanding, respectively		50,000			50,000
Common stock: $0.001 par value 900,000,000 authorized; 6,841,264 and 5,207,330 shares issued and outstanding, respectively *		6,841			5,207
Additional paid in capital		4,023,151			3,159,847
Accumulated deficit		(4,870,278	)		(3,781,938	)
Total Stockholders' Deficit		(790,286	)		(565,933	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	3,248		$	7,920

________

* Reflects the 1-for-20 reverse stock split that became effective on June 7, 2019. Refer to Note 3 – Summary of Significant Accounting Policies for further information.

 

The accompanying notes are an integral part of these Condensed Financial Statements.

3

THUNDER ENERGIES CORPORATION

Condensed Statements of Operations

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
REVENUE	$	---		$	---		$	---		$	---
OPERATING EXPENSES
Research and development		27,053			12,106			41,310			37,593
Stock in exchange for services		738,050			---			817,075			---
Professional fees		38,718			119,865			83,166			288,602
Selling, general and administrative expenses		53,025			55,604			113,897			119,342
Total operating expenses		856,846			187,575			1,055,448			445,537
Net loss from operations		(856,846	)		(187,575	)		(1,055,448	)		(445,537	)
Other income (expense)
Interest expense		(9,908	)		(5,733	)		(11,724	)		(10,591	)
Interest expense related to derivative liability		(21,850	)		2,249			(21,850	)		(50,740	)
Change in derivative		681			(16,219	)		681			(15,407	)
Net loss before income taxes		(887,923	)		(207,278	)		(1,088,341	)		(522,275	)
Income taxes		---			---			---			---
Net loss	$	(887,923	)	$	(207,278	)	$	(1,088,341	)	$	(522,275	)
Basic and diluted loss per share *	$	(0.13	)	$	(0.22	)	$	(0.18	)	$	(0.44	)
Weighted average number of shares outstanding *		6,618,317			952,164			6,157,465			1,189,553

____________ 

* Reflects the 1-for-20 reverse stock split that became effective on June 7, 2019. Refer to Note 3 – Summary of Significant Accounting Policies for further information.

 

The accompanying notes are an integral part of these Condensed Financial Statements.

4

THUNDER ENERGIES CORPORATION

Condensed Statements of Changes in Stockholders’ Deficit

									Additional
	Preferred Stock				Common Stock *				Paid in			Accumulated
2019	Shares		Amount		Shares		Amount		Capital *			Deficit			Total
Balance, December 31, 2018		50,000,000	$	50,000		5,207,330	$	5,207	$	3,159,848		$	(3,781,938	)	$	(565,933	)
Issued common stock for services		---		---		469,167		469		78,556			---			79,025
Sold shares of common stock for cash		---		---		577,258		577		53,123			---			53,700
Net loss		---		---		---		---		---			(200,418	)		(200,418	)
Balance, March 31, 2019		50,000,000	$	50,000		6,253,755	$	6,254	$	3,291,527		$	(3,982,356	)	$	(633,625	)
Issued common stock for services		---		---		587,500		588		737,462			---			738,050
Adjustment for fractional shares due to 1 for 20 reverse split. *		---		---		9		---		950			---			---
Paid-in capital – Derivative liability		---		---		---		---		(6,788	)		---			(6,788	)
Net loss		---		---		---		---		---			(887,923	)		(887,923	)
Balance, June 30, 2019		50,000,000	$	50,000		6,841,264	$	6,841	$	4,023,151		$	(4,870,279	)	$	(790,286	)
2018
Balance, December 31, 2017		50,000,000	$	50,000		2,245,235	$	2,245	$	2,278,150		$	(2,991,576	)	$	(660,230	)
Issued common stock for services		---		---		38,250		38		89,796			---			89,834
Issued common stock to related parties for conversion of accrued compensation at fair market value.		---		---		33,193		33		62,967			---			63,000
Paid-in capital – Derivative liability		---		---		---		---		(52,461	)		---			(52,461	)
Net loss		---		---		---		---		---			(314,997	)		(314,997	)
Balance, March 31, 2018		50,000,000	$	50,000		2,316,678	$	2,316	$	2,378,452		$	(3,306,573	)	$	(874,856	)
Issued common stock for services		---		---		95,000		95		81,304			---			81,399
Issued common stock for reduction of convertible note payable		---		---		430,397		430		68,211			---			68,641
Paid-in capital – Derivative liability		---		---		---		---		25,363			---			25,363
Net loss		---		---		---		---		---			(207,278	)		(207,278	)
Balance, June 30, 2018		50,000,000	$	50,000		2,842,075	$	2,842	$	2,553,330		$	(3,513,851	)	$	(906,730	)

___________ 

* Reflects the 1-for-20 reverse stock split that became effective on June 7, 2019. Refer to Note 3 – Summary of Significant Accounting Policies for further information.

 

The accompanying notes are an integral part of these Condensed Financial Statements.

5

THUNDER ENERGIES CORPORATION

Condensed Statements of Cash Flows

	For the Six Months Ended
	June 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,088,341	)	$	(522,275	)
Adjustment to reconcile net loss to net cash used in in operations:
Amortization		---			100
Change in fair market value of derivatives		(681	)		15,407
Amortization of debt discount		21,850			50,740
Stock issued for services		817,075			234,233
Changes in assets and liabilities:
Increase (decrease) in operating liabilities:
Accounts receivable		---			24,469
Accounts payable		---			25,780
Accrued expenses – related party		129,008			63,000
Accrued interest		1,717			10,591
Net Cash used in operating activities		(119,372	)		(97,955	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shareholder loans		4,000			27,000
Principal payments on shareholder loans		----			(25,500	)
Proceeds from convertible notes payable		57,000			96,000
Proceeds from the sale of stock		53,700			---
Net Cash provided by financing activates		114,700			97,500
Net increase in cash		(4,672	)		(455	)
Cash
Beginning of period		7,920			1,883
End of period	$	3,248		$	1,428
Supplemental cash flow information
Cash paid for interest	$	---		$	---
Cash paid for taxes	$	---		$	---
Non-cash transactions:
Original discount recorded on the recognition of notes with derivative Liability	$	57,000		$	96,000
Extinguishment of derivative liability related to debt conversions	$	---		$	117,115
Debt/accrued interest converted into common stock	$	---		$	68,641

The accompanying notes are an integral part of these Condensed Financial Statements.

 

6

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

NOTE 1 – NATURE OF BUSINESS

Thunder Energies Corporation (“we”, “us”, “our”, “TEC” or the “Company”) was incorporated in the State of Florida on April 21, 2011. On May 1, 2014, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the “Amendment”) which changed the name of the Company from Thunder Fusion Corporation to Thunder Energies Corporation. The Amendment also changed the principal office address of the Company to 1444 Rainville Road, Tarpon Springs, Florida 34689.

The business of Thunder Energies Corporation ("TEC") is focused, depending on funding, on the manufacturing, sale and service of three new cutting-edge technologies (patents and trademarks pending): the new Santilli telescopes with concave lenses; the new hadronic reactors for the synthesis of the neutron from the hydrogen gas, and the new HyperFurnaces for the full combustion of fossil fuels. 

NOTE 2 – GOING CONCERN

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating cost and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company include, obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

UNAUDITED INTERIM FINANICAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The interim financial statements should be read in conjunction with the annual financial statements included in the Form 10K as of December 31, 2018 and filed with the Securities and Exchange Commission on March 14, 2019.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

BASIS OF PRESENTATION AND USE OF ESTIMATES

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which require 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

7

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

REVERSE STOCK SPLIT

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Company’s Articles of Incorporation that provided for a 1 for 20 reverse stock split of the Company’s Common Stock. The Company’s Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. The effective date of the reverse stock split was subject to approval by FINRA, and the reverse stock split was published to the market and effective on June 24, 2019. At the effective time of the reverse stock split, every 20 issued and outstanding shares of the Company’s Common Stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or number of authorized shares of Common Stock. All share and per share amounts contained in this Quarterly Report on Form 10-Q and the accompanying Condensed Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents totaled $3,248 at June 30, 2019 and $7,920 at December 31, 2018.

CASH FLOWS REPORTING

The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period.

RELATED PARTIES

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

FINANCIAL INSTRUMENTS

The Company’s balance sheet includes financial instruments, including cash, accounts payable, accrued expenses and notes payable. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). 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	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3	Inputs that are both significant to the fair value measurement and unobservable.

8

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

EXPENSES

Operating expenses encompass research and development, stock in exchange for services, professional fees and selling general and administrative expenses. Total operating expenses were $856,846 and $187,575 for the three months ended June 30, 2019 and 2018, respectively and $1,055,448 and $445,537 for the six months ended June 30, 2019 and 2018 respectively. Total operating expenses consisted of the following.

RESEARCH AND DEVELOPMENT

The Company expenses research and development costs when incurred. Research and development costs include engineering and testing of product and outputs. Indirect costs related to research and developments are allocated based on percentage usage to the research and development. We spent $27,053 and $12,106 for the three months ended June 30, 2019 and 2018, respectively and $41,310 and $37,593 for the six months ended June 30, 2019 and 2018 respectively.

STOCK IN EXCHANGE FOR SERVICES

Stock in exchange for services are the result of consulting services and certain management related services rendered in exchange of stock. All stock is issued at the fair market value on the date of services. Total stock in exchange of services were $738,050 and $0 for the three months ended June 30, 2019 and 2018, respectively and $817,075 and $0 for the six months ended June 30, 2019 and 2018 respectively.

PROFESSIONAL FEES

Professional services are principally comprised of outside legal, audit and consulting services as well as the costs related to a publicly traded company. Total professional fees were $38,718 and $119,865 for the three months ended June 30, 2019 and 2018, respectively and $83,166 and $288,602 for the six months ended June 30, 2019 and 2018 respectively.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses consist primarily of management fees, technology services, public relations and travel expenses. Total selling, general and administrative expenses were $53,025 and $55,604 for the three months ended June 30, 2019 and 2018, respectively and $113,897 and $119,342 for the six months ended June 30, 2019 and 2018 respectively.

DEFERRED INCOME TAXES AND VALUATION ALLOWANCE

The Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of June 30, 2019 or December 31, 2018.

9

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

NET LOSS PER COMMON SHARE

Net loss per share is calculated in accordance with ASC 260, “Earnings Per Share.” The weighted-average number of common shares outstanding during each period is used to compute basic earning or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.

Basic net loss per common share is based on the weighted average number of shares of common stock outstanding at June 30, 2019. As of June 30, 2019, the common stock equivalents have not been included as they are anti-dilutive. 

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

	June 30,		December 31,
	2019		2018
Options to purchase shares of common stock		29,887		29,887
Series A convertible preferred stock		50,000,000		50,000,000
Total potentially dilutive shares		50,029,265		50,029,265

__________ 

*	Options to purchase shares are calculated in accordance with employment agreements.
**	Total potentially dilutive shares reflect a 10 for 1 conversion into common shares per its designation.

SHARE-BASED EXPENSE

ASC 718, Compensation – Stock Compensation, prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity – Based Payments to Non-Employees. Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable:(a) the goods or services received; or (b) the equity instruments issued.

Share-based expense for the three and six months ended June 30, 2019 and 2018 was $738,050 and $0 and $817,075 and $0, respectively.

COMMITMENTS AND CONTINGENCIES

The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of June 30, 2019 and December 31, 2018.

RECENT ACCOUNTING PRONOUNCEMENTS

From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard is effective January 1, 2019. The standard will be effective for the Company on September 1, 2019 due to the Emerging Growth Company exemptions. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

10

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

NOTE 4 – NOTE PAYABLE

	June 30, 2019		December 31, 2018
Pubrelco Inc., a non-related party executed the purchase of $60,000 note from our CEO, Dr. Ruggero Santilli on November 26, 2018. The demand note carries a 2.15% annual percentage rate and has no maturity date.	$	60,000	$	60,000
Total notes payable	$	60,000	$	60,000
Accrued interest		763		124
Current portion of note payable and accrued interest	$	60,763	$	60,124

NOTE 5 – CONVERTIBLE NOTE PAYABLE

GHS INVESTMENTS, LLC

On April 22, 2019; The Company executed a convertible promissory note with GHS Investments, LLC. The note carries a principal balance of $57,000 together with an interest rate of eight (10%) per annum and a maturity date of February 21, 2020. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share in accordance with the terms of the note agreement shall be made in lawful money of the United States of America. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (20%) per annum from the due date thereof until the same is paid. As of June 30, 2018, the principal balance outstanding is $57,000.

The holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this note, to convert all or any part of the outstanding and unpaid principal amount into Common Stock. The conversion shall equal sixty-five percent (65%) of the lowest trading prices for the Common Stock during the twenty (20) day trading period ending on the latest complete trading day prior to the conversion date, representing a discount rate of thirty-five percent (35%).

The Company accounts for this embedded conversion feature as a derivative under ASC 815-10-15-83 and valued separately from the note at fair value. The embedded conversion feature of the note is revalued at each subsequent reporting date at fair value and any changes in fair value will result in a gain or loss in those periods. At June 30, 2019 and December 31, 2018, the derivative liability associated with GHS Investments LLC was $63,107 and $0, respectively.

Convertible Notes payable consisted of the following:

	June 30, 2019			December 31, 2018
Convertible notes payable:	$	57,000		$	---
Debt discount		(35,150	)		---
Convertible notes payable net of debt discount	$	21,850		$	---
Accrued interest		1,078			---
Current portion of convertible note payable and interest	$	22,928		$	---

11

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

NOTE 6 – ACCRUED INTEREST

The Company’s accrued interest consisted of the following:

	June 30, 2019		December 31, 2018
Accrued Interest
Pubrelco Inc.	$	763	$	124
Note payable related party		46,356		43,349
Convertible notes payable		1,078		---
Total Accrued Interest	$	48,197	$	43,473

NOTE 7– SHAREHOLDERS’ EQUITY

COMMON STOCK

The Company has been authorized to issue 900,000,000 shares of common stock, $0.001 par value. Each share of issued and outstanding common stock shall entitle the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the corporation upon liquidation or dissolution.

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Company’s Articles of Incorporation that provided for a 1 for 20 reverse stock split of the Company’s Common Stock. The Company’s Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. All share and per share amounts contained in this Quarterly Report on Form 10-Q and the accompanying Condensed Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

During the periods covered by this report, the Company issued 4,596,029 shares to related and non-related parties in the amount of $1,755,435. Shares of our common stock were issued at fair market value of the share price as set forth in the table below unless otherwise stated.

Date	Shares		Issuance Description	Relationship	Share Price		Amount
1/12/18		10,000	Services	Non-related parties		3.000		30,000
1/16/18		7,500	Services	Non-related party		3.000		22,500
2/12/18		2,000	Services	Non-related party		1.608		3,216
2/15/18		5,000	Services	Non-related party		2.000		10,000
2/23/18		5,000	Services	Non-related party		1.700		8,500
3/15/18		5,000	Services	Non-related party		1.700		8,500
3/29/18		33,193	Conversion of accrued salaries	Related parties		1.898		63,000
3/29/18		3,750	Services	Non-related party		1.898		7,117
4/5/18		12,500	Services	Non-related parties		1.580		19,750
4/9/18		12,500	Services	Non-related parties		1.400		17,500
4/27/18		15,000	Services	Non-related party		0.670		10,050
5/2/18		42,017	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.238		10,000
5/7/18		34,100	Services	Non-related parties		0.620		34,100
5/14/18		47,170	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.212		10,000
5/24/18		52,083	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.192		10,000

12

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

Date	Shares		Issuance Description	Relationship	Share Price		Amount
6/4/18		117,059	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		15,920
6/6/18		86,912	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		11,820
6/12/18		85,156	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.128		10,900
7/19/18		100,503	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.119		12,000
7/25/18		290,000	Services	Non-related parties		0.200		58,000
8/6/18		109,091	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.110		12,000
8/28/18		220,588	Services	Non-related party		0.136		30,000
10/5/18		50,000	Services	Non-related party		0.148		7,400
10/8/19		117,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		8,220
10/11/18		171,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		12,000
10/17/18		191,857	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,430
10/19/18		192,000	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,440
10/23/18		213,611	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.072		15,380
10/26/18		180,676	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.074		13,370
11/12/18		50,000	Services	Non-related party		0.230		11,500
11/30/18		260,417	Services	Non-related party		0.142		36,979
12/14/18		217,656	Cash	Non-related party		0.094		20,547
1/7/19		90,000	Services	Non-related party		0.100		9,000
1/25/19		100,000	Services	Non-related party		0.088		8,800
2/6/19		226,715	Cash	Non-related party		0.061		13,784
2/14/19		12,500	Services	Non-related party		0.306		3,825
2/19/19		166,667	Services	Non-related party		0.240		40,000
3/5/19		289,500	Cash	Non-related party		0.120		34,740
3/7/19		50,000	Services	Non-related party		0.192		9,600
3/13/19		50,000	Services	Non-related party		0.156		7,800
3/19/19		61,043	Cash	Non-related party		0.085		5,176
4/1/19		12,500	Services	Non-related party		0.100		1,250
4/22/19		100,000	Execution of new convertible note payable	Non-related party		3.160		316,000
4/24/19		50,000	Services	Non-related party		3.160		158,000
4/30/19		50,000	Services	Non-related party		2.960		148,000
5/11/19		25,000	Services	Non-related party		2.800		70,000
5/15/19		250,000	Services	Non-related party		0.116		29,000
5/12/19		100,000	Services	Non-related party		0.158		15,800

13

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

PREFERRED STOCK

The Company has been authorized to issue 750,000,000 shares of $0.001 par value Preferred Stock. The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, within certain guidelines established in the Articles of Incorporation.

Series A: The certificate of designation for the Preferred A Stock provides that as a class it possesses a number of votes equal to fifteen (15) votes per share and may be converted into ten (10) $0.001 par value common shares.

On October 10, 2013, the Company issued fifty million (50,000,000) shares of our Series “A” Convertible Preferred Stock (the “Preferred Stock”) to Hadronic Technologies Press, Inc. (“Hadronic”), a Florida corporation maintaining its principal place of business at 35246 US Highway 19 North, Suite #215, Palm Harbor, Florida 34684. Our Directors, Dr. Ruggero M. Santilli and Mrs. Carla Santilli each own fifty percent of the equity in Hadronic. The Series “A” Convertible Preferred Stock has 15 votes per share and is convertible into 10 shares of our common stock at the election of the shareholder. Shares were valued at the par value of the common stock equivalents, $500,000.

At June 30, 2019 and December 31, 2018, there were Fifty million (50,000,000) shares of Series A Convertible Preferred Stock issued and outstanding, respectively.

OPTIONS AND WARRANTS

In accordance with employment agreements, common stock options are issued annually to the officers of the Company. The number of shares is determined by the number of shares outstanding at the end of the year at a percentage per the employment agreements, as described below. The strike price is the fair value trading price as of the anniversary date of the employment agreements. The options are based on the number of shares outstanding of the Company at the year end, at an exercise price at market price at the employment agreements annual anniversary, July 25^th. As of June 30, 2019, the officers are entitled to 29,887 options, at an average exercise price of $0.2818. There is no expiration date to these options and only vest upon a change in control. The options were valued at $4,695, however no expense has been recognized with the associated options, as no options have vested or are considered by management to probable vest. The options were valued using the Black Scholes Method, using the following assumptions:

Weighted Average:	June 30, 2019			December 31, 2018
Risk-free interest rate		2.42	%		2.42	%
Expected lives (years)		10.0			10.0
Expected price volatility		161.40	%		161.40	%
Dividend rate		0.0	%		0.0	%
Forfeiture Rate		0.0	%		0.0	%

There are no other warrants or options outstanding to acquire any additional shares of common stock of the Company as of June 30, 2019.

14

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

 

NOTE 8– RELATED PARTY TRANSACTIONS

ADVANCES, PAYABLES AND ACCRUALS

Amounts included in accruals represent amounts due to the officers and directors for corporate obligations under the employment agreements. Payments on behalf of the Company and accruals made under contractual obligation are accrued (see below). As of June 30, 2019, and December 31, 2018 accrued expenses were $315,000 and $189,000, respectively.

NOTE PAYABLE

In support of the Company’s efforts and cash requirements, it has relied on advances from the majority shareholders until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. All advances made in support of the Company are formalized by demand notes, at a 2.15% interest rate.

For the six months ended June 30, 2019 and 2018 our Chief Executive Officer, Dr. Ruggero M. Santilli and immediate family members have loaned the company $4,000 and $27,000, respectively for operations. For the six months ended June 30, 2019 and 2018 the Company repaid the principal amounts by $0 and $25,500, respectively.

At June 30, 2019 and December 31, 2018, the demand notes accumulative balances were $285,380 and $281,380, respectively. Accrued interest at June 30, 2019 and December 31, 2018 was $46,356 and $43,349, respectively.

EQUITY TRANSACTIONS

On March 29, 2018 the Company issued 33,193 shares to related parties for conversion of accrued compensation of $63,000, recorded at the fair market value of the share price.

On December 31, 2018, our Chief Executive Officer, Dr. Ruggero M. Santilli requested the extinguishment of $250,000 of notes payable due. The Company extinguished $250,000 of notes payable due Dr. Ruggero M. Santilli on December 31, 2018 and booked the offsetting entry to Additional paid-in Capital due to it being a related party transaction.

15

THUNDER ENERGIES CORPORATION

Notes to Condensed Financial Statements

For the period ending June 30, 2019

(Unaudited)

EMPLOYMENT CONTRACTS

The Company has employment contracts with its key employees, the controlling shareholders, who are its officers and directors of the Company.

· Dr. Santilli, 5 year contract, annual salary of $180,000 and annual common stock options for .01% of the outstanding stock per calendar year at the average trading price of the anniversary date, July 25^th

· Carla Santilli, 5 year consulting contract, annual salary of $72,000 and annual common stock options for .005% of the outstanding stock per calendar year at the average trading price of the anniversary date, July 25^th.

 

OTHER

The Company does not own or lease property or lease office space. At the current time, the office space used by the Company was arranged by the majority shareholders of the Company to use at no charge. It is anticipated that the Company will enter into formal lease arrangements in the near future.

The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent

third parties.

NOTE 9 – COMMITMENTS AND CONTINGENCIES

From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

NOTE 10– SUBSEQUENT EVENTS

Subsequent to the period covered by this report, the Company issued 200,000 shares to non-related parties in the amount of $9,000. Shares of our common stock were issued at fair market value of the share price as set forth in the table below unless otherwise stated.

Date	Shares		Issuance Description	Relationship	Share Price		Amount
7/11/19		200,000	Services	Non-related parties		0.045		9,000

Management has evaluated subsequent events through the date the financial statements were available to be issued, considered to be the date of filing with the Securities and Exchange Commission. Based on our evaluation no events have occurred requiring adjustment to or disclosure in the financial statements.

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

Special Note Regarding Forward Looking Statements.

This quarterly report on Form 10-Q of Thunder Energies Corporation for the period ended June 30, 2019 contains certain forward-looking statements 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, which are intended to be covered by the safe harbors created thereby. To the extent that such statements are not recitations of historical fact, such statements constitute forward looking statements which, by definition, involve risks and uncertainties. In particular, statements under the Sections; Description of Business, Management’s Discussion and Analysis of Financial Condition and Results of Operations contain forward looking statements. Where in any forward-looking statements, the Company expresses an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will result or be achieved or accomplished.

The following are factors that could cause actual results or events to differ materially from those anticipated and include but are not limited to: general economic, financial and business conditions; changes in and compliance with governmental regulations; changes in tax laws; and the cost and effects of legal proceedings.

You should not rely on forward looking statements in this quarterly report. This quarterly report contains forward looking statements that involve risks and uncertainties. We use words such as “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” and similar expressions to identify these forward-looking statements. Prospective investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this quarterly report. Our actual results could differ materially from those anticipated in these forward-looking statements.

Our Business Overview.

 Thunder Energies Corporation f/k/a Thunder Fusion Corporation and CCJ Acquisition Corp. (“we”, “us”, “our”, (“TEC” or the “Company”) was incorporated in the State of Florida on April 21, 2011. The Company selected December 31 as its fiscal year end.

On July 25, 2013, Dr. Ruggero M. Santilli acquired from Company’s existing shareholders, a control block of stock in the Company consisting of two million nine hundred forty thousand (2,940,000) shares of restricted common stock of the Company, in a private equity transaction. As a result of this acquisition, Dr. Ruggero M. Santilli owned 98% of the issued and outstanding shares of common stock of the Company.

On August 10, 2013, the Company entered into an Asset Assignment Agreement (the “IBR Assignment Agreement”) with Institute For Basic Research, Inc., a Florida corporation (“IBR”) that also is beneficially controlled by our Chief Executive Officer, Dr. Ruggero M. Santilli. Pursuant to the IBR Assignment Agreement, IBR irrevocably assigned to the Company all rights, title, ownership and interests in all of IBR’s internet website domain name assets, owned and hereinafter acquired by IBR including, but not limited to, all physical and intangible assets and intellectual property related to the assets.

On August 11, 2013, Thunder Energies Corporation (the “Company”) entered into an Asset Assignment Agreement (the “Assignment Agreement”) with HyFuels, Inc., a Florida corporation (“HyFuels”) beneficially controlled by our Chief Executive Officer, Dr. Ruggero M. Santilli. Pursuant to the Assignment Agreement, HyFuels irrevocably assigned to the Company all physical assets, intangible assets, accounts receivable, intellectual property, accounting software, billing software, client lists, client prospects, trade secrets, proprietary property, the intellectual and physical property known as intermediate nuclear fusion without radiation, the physical property consisting of seven (7) Hadronic reactors, all copyrights, patents, patent applications, patent assignments, trademarks and anything having commercial or exchange value and the like.

17

Consideration for the assignment agreements consisted of one million (1,000,000) shares of our common stock that were issued to Dr. Ruggero M. Santilli, as designee for IBR and HyFuels. Company management determined the amount of consideration based upon ASC 845-10-S99 pertaining to transfer of non-monetary assets. According to ASC 845-10-S99, transfers of non-monetary assets to a company by its promoters or shareholders in exchange for stock prior to or at the time of the entity’s initial public offering should be recorded at the transferors’ historical cost basis determined under Generally Accepted Accounting Principles. As such, the cost basis carried on the books and records of HyFuels and IBR was minimal or essentially zero. Therefore, the accounting principles in ASC 845-10-S99 were followed and the Company recorded the intellectual and physical properties at its historical cost basis, which was at the historical cost basis of a nominal amount. In connection with the aforementioned assignment agreements, 1,000,000 shares of our common stock were transferred in exchange for the assets. The transfer was valued at one thousand dollars ($1,000.00), the value of the shares issued at par ($0.001) in exchange for the assets. This amount was determined by the Company to be de-minimus to the value received in the exchange and approximates the basis of those assets.

The Company has recorded the property and intangibles (7 reactors, intellectual property rights to develop the technology, and website) as an intangible asset. The valuation of the properties will be the par value of the stock received in exchange for the rights and assets. The Company’s filings will include a disclosure in the MD&A section and notes to the financial statement under the heading “Non-Monetary Transaction”. Management believes that the $1,000.00 valuation is reflective of the salvage value of the physical property, at a minimum. Our Company purchased internet website domain name assets owned by IBR and the intellectual and physical property known as intermediate nuclear fusion without radiation, the physical property consisting of seven (7) Hadronic reactors, all copyrights, patents, patent applications, patent assignments, trademarks and anything having commercial or exchange value owned by HyFuels as related to the reactors. None of the assets purchased had ever generated revenue for IBR or HyFuels. Although the Asset Assignment Agreements were more comprehensive in their description of “assets”, the aforementioned items were the only assets assigned to the Company.

Our Company purchased internet website domain name assets owned by IBR and the intellectual and physical property known as intermediate nuclear fusion without radiation, the physical property consisting of seven (7) Hadronic reactors, all copyrights, patents, patent applications, patent assignments, trademarks and anything having commercial or exchange value owned by HyFuels as related to the reactors. None of the assets purchased had ever generated revenue for IBR or HyFuels. Although the Asset Assignment Agreements were more comprehensive in their description of “assets”, the aforementioned items were the only assets assigned to the Company.

A further description of the assignors, IBR and HyFuels, follows. IBR is a Florida Corporation, whose only business operations are the publication of an internet blog relating to scientific and academic matters. IBR does not generate revenue and has no expenses. Furthermore, IBR has never maintained a checking account. This status has been consistent over the last several years. Our Chief Executive Officer and Director, Dr. Ruggero M. Santilli is president and a director for IBR. IBR does not have any ownership interest in any of our securities.

HyFuels is a Florida corporation that utilized research and development funds to create the seven Hadronic reactors, but otherwise has no business operations since its inception. Its sole purpose is to serve as a patent holding company. Our Chief Executive Officer and Director, Dr. Ruggero M. Santilli is president and a director for HyFuels. HyFuels also does not have any ownership interest in any of our securities.

Neither IBR nor HyFuels has made any effort to commercialize the assets for purposes of generating revenue. Both IBR and HyFuels continue to exist as Florida corporations separate and distinct from the Company. Though they are deemed “related” entities through a common officer and director with our Company, they remain otherwise “unaffiliated” with our Company.

IBR maintains its principal place of business at 90 East Winds Court, Palm Harbor, Florida 34689. HyFuels maintains its principal place of business at 35246 US Highway 19 North, #215, Palm Harbor, Florida 34684. There is no continuity of facilities with the Company.

Neither IBR nor HyFuels had an employee base, a distribution system, a sales force, a customer base, production techniques or trade names associated with the assets. Their ownership rights may arguably be referred to as operating rights but there were essentially no operations associated with the assets.

The only activities of the assignors involved the creation of the Internet website domain names and the creation of the seven Hadronic reactors and associated patents pending. These assets did not generate revenue prior to the assignment, so there is essentially no financial data to report regarding “revenue producing activity previously associated with the acquired assets”. Furthermore, there is no “sufficient continuity of operations with our Company so that disclosure of prior financial information regarding IBR or HyFuels is material to an understanding of future operations regarding our Company.

18

Description of Business, Principal Products, Services

Thunder Energies Corp. is a developer of new technologies that are being brought to market by three divisions: 1) Division of Nuclear Instruments (TEC-DNI) 2) Division of Optical Instruments (TEC-DOI); and 3) Division of Fuel Combustion (TEC--DFC). Each Division is protected by patent applications on which no royalties are due. Out of the three divisions, the Division of Nuclear Instruments and the Division of Optical Instruments have initiated sale of their products.

The Division of Nuclear Instruments is producing, selling and servicing new equipment producing on demand a flux of low energy neutrons synthesized from a hydrogen gas called Directional Neutron Source (DNS). This equipment is particularly suited to scan suitcases in airports for the detection of concealed nuclear materials such as Uranium 235. The equipment is also particularly suited to identify the existence and the concentration of precious metals in mining operations, for the test of large naval welds and other applications. One Directional neutron Source has been sold to a European customer and the company is now organizing its production and sale. The Company has filed research grant applications to the Defense Threat reduction Agency and DARPA for the completion of the available Directional neutron Source into a Nuclear Weapon detection Station. Funds expected from this filing are primarily intended to continue the development of this new neutron technology for the advancement of our national security. The Division of Optical Equipment is producing, selling and servicing a basically new telescope with concave lenses, known as the Santilli telescope, for the detection of images produced by antimatter light known as isodual light. In particular, TEC-DOE is producing, selling and servicing pairs of 70 mm, 100 mm, 150 mm and 200 mm Galileo and Santilli telescopes where the Galileo telescope is needed to focus images in the Santilli telescope. Besides new astrophysical detections, TEC pairs of Galileo and Santilli telescopes are useful for a comprehensive surveillance of civilian, industrial and military installations since they can identify images produced by all possible forms of light, the conventional light and the new isodual light. Three TEC Surveillance Stations are now operational, one in the USA and two in Europe.

Additionally, the business of Thunder Energies Corporation ("TEC") is focused on the development of a new clean combustion of fossil fuels (oil, diesel, coal, etc.) with controlled minimal contaminants in the exhaust. Our business objective is achieved via new forms of processing fossil fuels, new additives to the combustion and the assistance of a high voltage electric discharges (patents pending) that burn combustible contaminants in fossil fuel exhaust while providing added on clean energy. The expected principal product, depending on funding, is a new type of furnace for the clean combustion of fossil fuel that will be available in various type and sizes and various type of energy application, from home heating to large plants for the clean production of electricity. The expected services are to be rendered by providing technical assistance to the market consisting of existing fossil fuel electric power plants for their decrease of pollutants in the exhaust and their verification of EPA regulations on the release of contaminants in the atmosphere. A prototype new furnace is expected to be available within one year following the availability of the necessary funds. As we are a development stage company, we have not yet generated any revenue from the assets that were recently assigned to and acquired by the Company, including the Hadronic reactors. The Hadronic reactors have been utilized to test and confirm the technology for ultimate inclusion in the new furnaces.

Distribution Methods Of The Products and Services

For this first division TEC-DOE we have initiated advertisement via direct e-mail and public news releases. Initially, we anticipate marketing via large advertisements on the internet, such as via PRWeb and PRNewswire Releases. For the other two divisions we expect to market through contacts that we are able to generate, and via direct contacts of potential buyers of TEC new fossil fuel furnaces or TEC services for the improvement of existing fossil fuel burning plants.

19

Status of Any Publicly Announced New Product Or Service

 

Regarding the sale of telescopes, we have made several news releases and radio interviews. In addition, we have presented all TEC technologies to investors’ conferences. For the other two divisions TEC-DNE and TEC-DFC the company contemplates no advertisement until the availability of production equipment. We have, however, published scientific papers on the new sciences underlying the Combustion and Nuclear Divisions. One Directional Neutron Source of the DNE has been manufactured, sold and serviced to a buyer from Europe. Pairs of the Galileo and Santilli telescopes have been manufactured, sold and serviced to customers in the U.S.A. and Europe.

 

Competitive Business Conditions And The Smaller Reporting Company’s Competitive Position In The Industry And Methods Of Competition

There are no known competitors for the new telescopes with concave lenses produced and sold by TEC-DOE. TEC new telescopes for the detection of isodual light are the only one in existence and no competition is known. There exist many types of furnaces for the combustion of fossil fuels, but they are all based on conventional combustion of fossil fuels and then the removal of contaminants in the exhaust. By contrast, the main function of TEC furnaces is that of improving the combustion with consequential reduction of contaminants in the exhaust while increasing the energy output for the same fossil fuel. There is no known competition for the detection of fissionable material via a thermal neutron source under development by TEC-DNE. TEC Directional Neutron Source has no competition because it is the only available equipment producing on demand “low energy” neutrons in the needed direction and energy. Other commercially available sources produce neutrons at high energy, thus not being usable in civilian facilities as well as in all directions.

Sources And Availability Of Raw Materials And The Names Of Principal Suppliers

The Company has selected qualified manufacturers for the telescopes of TEC-DOE. All components for the new telescope are readily available on the open market. Suppliers are available for the other two technologies and will be selected following completion of their development. The raw material needed by the TEC furnaces is given by conventional fossil fuels all available in the U.S.A. by a large number of suppliers. All needed material have been purchased from the U. S. companies McMaster and/or Granger.

Dependence On One Or A Few Customers

There are many potential customers for the pair of telescopes produced by the TEC-DOE division. Our marketing analysis has identified the potential customers in all individuals and associations interested in sky watching. For the other two technologies, we have not yet performed market analysis. TEC has no need for such a dependence.

Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements Or Labor Contracts, Including Duration

Each of the above indicated three divisions has been the subject of a patent application as follows:

Title: “Method and Apparatus for Intermediate Controlled Fusion Processes”

U.S. serial no. 13/197836

Atty Docket no. TEC-0101

Inventor: Dr. Ruggero Maria Santilli

20

Title:  “Novel Optical Instruments with Concave Lenses”

U.S. serial no. 62/144,268 (conf. no. 8850)

Atty Docket no. TEC-0102

Inventor: Dr. Ruggero Maria Santilli

Title:  “Directional Production of Composite Particles”

U.S. serial no. 62/518,047

Atty Docket no. TEC-0103

Inventor: Dr. Ruggero Maria Santilli

Trademarks are expected to be applied for depending on funding. No franchisee or license is expected during the first three years of operation. Labor contracts for employees are planned for implementation following legal assistance and decisions by our Board of Directors.

Need For Any Government Approval Of Principal Products Or Services

No governmental approval or permits are necessary for the telescopes. No governmental approval or permits is expected for the development of the new furnaces for the clean combustion of fossil fuels. Following their availability, the TEC furnaces will be subject to and must comply with applicable EPA requirements for permitted levels of contaminants in the exhaust. Regarding the neutron source, we need to further analyze the requirements

Effect Of Existing Or Probable Governmental Regulations On The Business

There are no governmental regulations affecting the sale of the telescope technology. Due to its novel conception, a principal objective of TEC furnaces is that of surpassing current EPA requirements for the contaminants in the combustion exhaust released in the atmosphere. We expect that the neutron source technology will be government regulated and we are in the process of analyzing and assessing the impact of such regulations on the business. TEC has filed research grant applications to DARPA, the Defense Threat Reduction Agency and the U. S. AIR FORCE for the completion of the available Directional Mention Source into a Nuclear Weapon Detection Station (NWDT,) under full Governmental control. No outcome of these grant applications is known at this time.

Estimate Of The Amount Of Money Spent During Each Of The Last Two Fiscal Years On Research And Development

Related entities have spent $126K and $57K in 2017 and 2018, respectively, for the development of the Directional Neutron Source and of the Santilli telescope. All funding for the development of our products to date has been derived from related entities, IBR and HyFuels, which are beneficially controlled by our Chief Executive Officer, Dr. Ruggero M. Santilli.

Costs and Effects Of Compliance With Environmental Laws

There are no environmental laws affecting the sale of pairs of telescopes as we simply assemble telescopes, cameras and proprietary concave lenses. We are unable to estimate the costs and effects of compliance with environmental laws prior to completion of a TEC prototype furnace.

21

Number Of Total Employees And Number Of Full-Time Employees

At this time, the Company has two full time employees and five persons working part time in various functions.

Implications of Being an Emerging Growth Company

We qualify as an emerging growth company as that term is used in the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

· A requirement to have only two years of audited financial statements and only two years of related MD&A;

· Exemption from the auditor attestation requirement in the assessment of the emerging growth company’s internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002;

· Reduced disclosure about the emerging growth company’s executive compensation arrangements; and

· No non-binding advisory votes on executive compensation or golden parachute arrangements.

We have already taken advantage of these reduced reporting burdens in this amendment to our Current Report on Form 8-K, which are also available to us as a smaller reporting company as defined under Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”) for complying with new or revised accounting standards. We are choosing to utilize the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBS Act. This election allows our Company to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

We could remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

We are a reporting company and file all reports required under sections 13 and 15d of the Exchange Act.

Results of Operations and Critical Accounting Policies and Estimates.

The results of operations are based on preparation of financial statements in conformity with accounting principles generally accepted in the United States. The preparation of financial statements requires management to select accounting policies for critical accounting areas as well as estimates and assumptions that affect the amounts reported in the financial statements. The Company’s accounting policies are more fully described in Note 3 to the Notes of Financial Statements.

Results of Operations for the three months ended June 30, 2019 and 2018.

Revenues.

Total Revenue. Total revenues for the three months ended June 30, 2019 and 2018 were $0 and $0 respectively.

22

Expenses.

Total Operating Expenses. Total operating expenses for the three months ended June 30, 2019 and June 30, 2018 were $856,846 and $187,575, respectively. Total operating expenses consisted of research and development of $27,053 and $12,106, respectively; stock in exchange for services of $738,050 and $0, respectively; professional fees of $38,718 and $119,865, respectively and selling, general and administrative expenses of $53,025 and $55,604, respectively. Research and development expense increased by approximately 123% primarily due to a increase in funding. Stock in exchange for services increased by approximately 100% due to shares of common stock being issued in exchange for certain expenses. Professional fees decreased by approximately 68% due to a decrease in consulting services.

Other Income Expense: Total other income expense for the three months ended June 30, 2019 and 2018 was $31,077 and $19,703, respectively. Other income expense consisted of interest expense of $9,908 and $5,733, respectively; interest expense related to derivative liability of $21,850 and ($2,249), respectively and change in derivatives of ($681) and $16,219, respectively. Interest expense decreased by approximately 73% due to the reduction of notes payable, related party during the year ended December 31, 2018. Interest expense related to derivative liability increased by approximately 1,071% due to the execution of a new convertible note payable. Change in derivative increased by approximately 104% due to the execution of a new convertible note payable.

Results of Operations for the six months ended June 30, 2019 and 2018.

Revenues.

Total Revenue. Total revenues for the three months ended June 30, 2019 and 2018 were $0 and $0 respectively.

Expenses.

Total Operating Expenses. Total operating expenses for the six months ended June 30, 2019 and June 30, 2018 were $1,055,448 and $445,537, respectively. Total operating expenses consisted of research and development of $41,310 and $37,593, respectively; stock in exchange for services of $817,075 and $0, respectively; professional fees of $83,166 and $288,602, respectively and selling, general and administrative expenses of $113,897 and $119,342, respectively. Stock in exchange for services increased by approximately 100% due to shares of common stock being issued in exchange for certain expenses. Professional fees decreased by approximately 71% due to a decrease in consulting services.

Other Income Expense: Total other income expense for the six months ended June 30, 2019 and 2018 was $32,893 and $76,738, respectively. Other income expense consisted of interest expense of $11,724 and $10,591, respectively; interest expense related to derivative liability of $21,850 and $50,740, respectively and change in derivatives of ($681) and $15,407, respectively. Interest expense decreased by approximately 10% due to the reduction of notes payable, related party during the year ended December 31, 2018. Interest expense related to derivative liability increased by approximately 57% due to the execution of a new convertible note payable. Change in derivative increased by approximately 104% due to the execution of a new convertible note payable.

Financial Condition.

Total Assets. Total assets at June 30, 2019 and December 31, 2018 were $3,248 and $7,920, respectively. Total assets consist of cash of $3,248 and $7,920, respectively. Total assets decreased by approximately 59%. The primary reason for the decrease was a reduction in cash and cash equivalents at period end.

Total Liabilities. Total liabilities at June 30, 2019 and December 31, 2018 were $793,534 and $573,853, respectively. Total liabilities consist of accrued interest of $1,841 and $124, respectively; accrued interest, related party of $46,356 and $43,349, respectively; derivative liability of $63,107 and $0, respectively; note payable of $60,000 and $60,000, respectively and note payable to related parties of $285,380 and $281,380, respectively; convertible note payable net discount of $21,850 and $0; respectively and accrued compensation, related parties of $315,000 and $189,000, respectively. Total liabilities increased by approximately 38%. Accrued interest increased by approximately 1,384% due to increase borrowings for operations. Derivative liability increased by approximately 100% due to the execution of a new convertible note payable. Convertible note payable, net discount increased by approximately 100% due to the execution of a new convertible note payable. Accrued compensation-related party increased by approximately 67%.

23

Liquidity and Capital Resources.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.

The Company sustained a loss of $1,088,341 for the six months ended June 30, 2019 and $522,275 for the six months ended June 30, 2018. The Company has accumulated losses totaling $4,807,278 at June 30, 2019. Because of the absence of positive cash flows from operations, the Company will require additional funding for continuing the development and marketing of products. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

We are presently able to meet our obligations as they come due through the support of our shareholders. At June 30, 2019 we had a working capital deficit of $790,286. Our working capital deficit is due to the results of operations.

Net cash used in operating activities for the six months ended June 30, 2019 and 2018 were $119,372 and $97,955, respectively. Net cash used in operating activities includes our net loss, change in fair market value of derivatives, Amortization of debt discount, stock issued in exchange for services, accounts payable, accrued salaries and accrued interest.

Net cash provided by financing activities for the six months ended June 30, 2019 and 2018 were $114,700 and $97,500, respectively. Net cash provided by financing activities includes proceeds from shareholder loans of $4,000 and 27,000, respectively; proceeds from the sale of stock of $57,000 and $96,000, respectively and proceeds from sale of stock of $53,700 and $0, respectively.

We anticipate that our future liquidity requirements will arise from the need to fund our growth from operations, pay current obligations and future capital expenditures. The primary sources of funding for such requirements are expected to be cash generated from operations and raising additional funds from the private sources and/or debt financing. However, we can provide no assurances that we will be able to generate sufficient cash flow from operations and/or obtain additional financing on terms satisfactory to us, if at all, to remain a going concern. Our continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis and ultimately to attain profitability. Our Plan of Operation for the next twelve months is to raise capital to implement our strategy. We do not have the necessary cash and revenue to satisfy our cash requirements for the next twelve months. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, then we may not be able to expand our operations. If adequate funds are not available, we believe that our officers and directors will contribute funds to pay for some of our expenses. However, we have not made any arrangements or agreements with our officers and directors regarding such advancement of funds. We do not know whether we will issue stock for the loans or whether we will merely prepare and sign promissory notes. If we are forced to seek funds from our officers or directors, we will negotiate the specific terms and conditions of such loan when made, if ever. Although we are not presently engaged in any capital raising activities, we anticipate that we may engage in one or more private offering of our company’s securities after the completion of this offering. We would most likely rely upon the transaction exemptions from registration provided by Regulation D, Rule 506 or conduct another private offering under Section 4(2) of the Securities Act of 1933. See “Note 2 – Going Concern” in our financial statements for additional information as to the possibility that we may not be able to continue as a “going concern.”

We are not aware of any trends or known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in material increases or decreases in liquidity.

24

Capital Resources.

We had no material commitments for capital expenditures as of June 30, 2019.

Off-Balance Sheet Arrangements

We have made no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The registrant qualifies as a smaller reporting company, as defined by SEC Rule 229.10(f)(1) and is not required to provide the information required by this Item.

Item 4. Controls and Procedures.

(a) Management’s Conclusions Regarding Effectiveness of Disclosure Controls and Procedures.

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

With respect to the period ending June 30, 2019, under the supervision and with the participation of our management, we conducted an evaluation of the effectiveness of the design and operations of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934.

Based upon our evaluation regarding the period ending June 30, 2019, the Company’s management, including its Principal Executive Officer and Principal Financial Officer, has concluded that its disclosure controls and procedures were not effective due to the Company’s limited internal resources and lack of ability to have multiple levels of transaction review. Material weaknesses noted are lack of an audit committee, lack of a majority of outside directors on the board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; and management is dominated by two individuals, without adequate compensating controls. Through the use of external consultants and the review process, management believes that the financial statements and other information presented herewith are materially correct.

The Company’s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. However, the Company’s management, including its Principal Executive Officer and Principal Financial Officer, does not expect that its disclosure controls and procedures will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

(b) Changes in Internal Controls.

There have been no changes in the Company’s internal control over financial reporting during the period ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

For a full discussion of controls and procedures refer to Item 9A, Controls and Procedures, in our 2018 Annual Report on Form 10-K.

25

Part II. Other Information

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors

We are a Smaller Reporting Company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

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

During the period ending June 30, 2019, the Company engaged in the sale of its unregistered securities as described below. The shares of our common stock were issued pursuant to an exemption from registration in Section 4(a)(2) of the Securities Act of 1933. These shares of our common stock qualified for exemption under Section 4(a)(2) of the Securities Act of 1933 since the issuance of shares by us did not involve a public offering. The offering was not a “public offering” as defined in Section 4(a)(2) due to the insubstantial number of persons involved in the deal, size of the offering, manner of the offering and number of shares offered. We did not undertake an offering in which we sold a high number of shares to a high number of investors. In addition, these shareholders had necessary investment intent as required by Section 4(a)(2) since they agreed to receive shares certificates bearing a legend stating that such shares are restricted pursuant to Rule 144 of the 1933 Act. This restriction ensures that these shares would not be immediately redistributed into the market and therefore not be part of a “public offering.” All shareholders are “sophisticated investors” and are family members, friends or business acquaintances of our officers and directors. Based on an analysis of the above factors, we believe we have met the requirements to qualify for exemption under section 4(a)(2) of the Securities Act of 1933 for this transaction.

During the six months ended June 30, 2019, the Company issued 1,056,667 shares to non-related parties for services, recorded at the fair market value of the share price, in the amount of $817,075. Additional shares of our common stock were issued at fair market value of the share price as set forth in the table below.

Date	Name	Shares		Fair Market Value		Amount
01/07/2019	Timothy Scott Wainwright		50,000		0.1000		5,000
01/07/2019	Jeffrey S Jenkins		15,000		0.1000		1,500
01/07/2019	Sherri Stone		25,000		0.1000		2,500
01/25/2019	Timothy Scott Wainwright		50,000		0.0088		4,400
01/25/2019	Simone Beghella Bartoli		50,000		0.0088		4,400
02/14/2019	Gregory Richard Tarczynski		12,500		0.3060		3,825
02/19/2019	Brian Buckley		166,667		0.2400		40,000
03/07/2019	Timothy Scott Wainwright		50,000		0.1920		9,600
03/13/2019	Jeffrey S Jenkins		50,000		0.1560		7,800
04/01/2019	Gregory Richard Tarczynski		12,500		0.1000		1,250
04/22/2019	GHS Investments, LLC		100,000		3.1600		316,000
04/24/2019	Robert DeVries		50,000		3.1600		158,000
04/30/2019	Geraldo Deippa Jr.		25,000		2.9600		148,000
05/11/2019	Gregory Richard Tarczynski		25,000		2.8000		70,000
05/15/2019	Emerging Markets Consulting		250,000		0.1160		29,000
05/12/2019	Timothy Scott Wainwright		100,000		0.1580		15,800

26

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits

Exhibit Number and Description				Location Reference
(a)	Financial Statements			Filed herewith
(b)	Exhibits required by Item 601, Regulation S-K;
	(3.0)	Articles of Incorporation
		(3.1)	Initial Articles of Incorporation filed with Form 10 Registration Statement on July 21, 2011	See Exhibit Key
		(3.2)	Amendment to Articles of Incorporation dated July 29, 2013	See Exhibit Key
		(3.3)	Amendment to Articles of Incorporation dated October 7, 2013	See Exhibit Key
		(3.4)	Amendment to Articles of Incorporation dated April 25, 2014	See Exhibit Key
		(3.5)	Amendment to Articles of Incorporation Dated May 17, 2019	See Exhibit Key
		(3.6)	Bylaws filed with Form 10 Registration Statement on July 21, 2011.	See Exhibit Key
	(10.0	Stock Purchase Agreement with Northbridge Financial, Inc.		See Exhibit Key
	(11.0)	Statement re: computation of per share Earnings.		Note 3 to Financial Stmts.
	(14.0)	Code of Ethics		See Exhibit Key
	(31.1)	Certificate of Chief Executive Officer And Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002		Filed herewith
	(32.1)	Certification of Chief Executive Officer And Principal Financial and Accounting Officer Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		Filed herewith
(101.INS)		XBRL Instance Document		Filed herewith
(101.SCH)		XBRL Taxonomy Ext. Schema Document		Filed herewith
(101.CAL)		XBRL Taxonomy Ext. Calculation Linkbase Document		Filed herewith
(101.DEF)		XBRL Taxonomy Ext. Definition Linkbase Document		Filed herewith
(101.LAB)		XBRL Taxonomy Ext. Label Linkbase Document		Filed herewith
(101.PRE)		XBRL Taxonomy Ext. Presentation Linkbase Document		Filed herewith

27

Exhibit Key

3.1	Incorporated by reference herein to the Company’s Form 10 Registration Statement filed with the Securities and Exchange Commission on July 21, 2011.
3.2	Incorporated by reference herein to the Company’s Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on November 15, 2013.
3.3	Incorporated by reference herein to the Company’s Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on November 15, 2013.
3.4	Incorporated by reference herein to the Company’s Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on August 13, 2018.
3.5	Incorporated by reference herein to the Company’s Form 8-K Current Report filed with the Securities and Exchange Commission on May 21, 2019.
3.6	Incorporated by reference herein to the Company’s Form 10 Registration Statement filed with the Securities and Exchange Commission on July 21, 2011.
10.0	Incorporated by reference herein to the Company’s Form S-1 Registration Statement filed with the Securities and Exchange Commission on March 2, 2018.
14.0	Incorporated by reference herein to the Company’s Form 10-Q Quarterly Report filed with the Securities and Exchange Commission on January 17, 2012.

28

Signatures

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

THUNDER ENERGIES CORPORATION

NAME	TITLE	DATE
/s/ Dr. Ruggero M. Santilli	Principal Executive Officer,	August 14, 2019
Dr. Ruggero M. Santilli	Principal Accounting Officer, Chief Financial Officer, Chairman of the Board of Directors

29

EX-31.1

  EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

Certification of Principal Executive Officer, Principal Financial Officer and

Principal Accounting Officer

I, Dr. Ruggero M. Santilli, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Thunder Energies Corporation;
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(e) 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 caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; 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 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 a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2019

Thunder Energies Corporation

/s/: Dr. Ruggero M. Santilli                                     

Dr. Ruggero M. Santilli

Principal Executive Officer

Principal Financial Officer

Principal Accounting Officer

EX-32.1

  EXHIBIT 32.1

Certification of Principal Executive Officer,

Principal Financial Officer and Principal Accounting Officer

Pursuant to 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of Thunder Energies Corporation, (the “Company”) on Form 10-Q for the period ending June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dr. Ruggero M. Santilli, Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer of the Company, certify, to my knowledge that:

(i)	the accompanying Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (the “Act”); and
(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

THUNDER ENERGIES CORPORATION

/s/: Dr. Ruggero M. Santilli                                                      

Dr. Ruggero M. Santilli

Principal Executive Officer

Principal Financial Officer

Principal Accounting Officer

August 14, 2019

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document And Entity Information
Entity Registrant Name	Thunder Energies Corp
Entity Central Index Key	0001524872
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2019
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		7,041,288

XML

Condensed Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 3,248	$ 7,920
Total Current Assets	3,248	7,920
TOTAL ASSETS	3,248	7,920
Current Liabilities
Accrued interest	1,841	124
Accrued interest, related parties	46,356	43,349
Note payable	60,000	60,000
Note payable, related parties	285,380	281,380
Accrued compensation, related parties	315,000	189,000
Derivative liability	63,107
Convertible note payable, net of discount Of ($35,150) and $0, respectively	21,850
Total Current Liabilities	793,534	573,853
TOTAL LIABILITIES	793,534	573,853
COMMITMENTS AND CONTINGENCIES
Stockholders' Deficit
Preferred stock: $0.001 par value, 750,000,000 authorized; 50,000,000 and 50,000,000 shares issued and outstanding, respectively	50,000	50,000
Common stock: $0.001 par value 900,000,000 authorized; 6,841,264 and 5,207,330 shares issued and outstanding, respectively *	6,841	5,207
Additional paid in capital	4,023,151	3,159,847
Accumulated deficit	(4,870,278)	(3,781,938)
Total Stockholders' Deficit	(790,286)	(565,933)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 3,248	$ 7,920

XML

Condensed Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Liabilities
Convertible note payable, net of discount	$ (22,928)	$ 0
Stockholders' Deficit
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	750,000,000	750,000,000
Preferred stock, shares issued	50,000,000	50,000,000
Preferred stock, shares outstanding	50,000,000	50,000,000
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	6,841,264	5,207,330
Common stock, shares outstanding	6,841,264	5,207,330

XML

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Statements of Operations (Unaudited)
REVENUE
OPERATING EXPENSES
Research and development	27,053	12,106	41,310	37,593
Stock in exchange for services	738,050		817,075
Professional fees	38,718	119,865	83,166	288,602
Selling, general and administrative expenses	53,025	55,604	113,897	119,342
Total operating expenses	856,846	187,575	1,055,448	445,537
Net loss from operations	(856,846)	(187,575)	(1,055,448)	(445,537)
Other income (expense)
Interest expense	(9,908)	(5,733)	(11,724)	(10,591)
Interest expense related to derivative liability	(21,850)	2,249	(21,850)	(50,740)
Change in derivative	681	(16,219)	681	(15,407)
Net loss before income taxes	(887,923)	(207,278)	(1,088,341)	(522,275)
Income taxes
Net loss	$ (887,923)	$ (207,278)	$ (1,088,341)	$ (522,275)
Basic and diluted loss per share *	$ (0.13)	$ (0.22)	$ (0.18)	$ (0.44)
Weighted average number of shares outstanding *	6,618,317	952,164	6,157,465	1,189,553

XML

Condensed Statements of Changes in Stockholders Deficit - USD ($)	Total	Preferred Stock Shares	Common Stock Shares	Additional Paid in Capital	Accumulated Deficit
Beginning Balance, Shares at Dec. 31, 2017		50,000,000	2,245,235
Beginning Balance, Amount at Dec. 31, 2017	$ (660,230)	$ 50,000	$ 2,245	$ 2,278,150	$ (2,991,576)
Issued common stock for services, Shares			38,250
Issued common stock for services, Amount	89,834		$ 38	89,796
Issued common stock to related parties for conversion of accrued compensation at fair market value.			33,193
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount	63,000		$ 33	62,967
Net loss	(314,997)				(314,997)
Paid-in capital - Derivative liability	(52,461)			(52,461)
Ending Balance, Shares at Mar. 31, 2018		50,000,000	2,316,678
Ending Balance, Amount at Mar. 31, 2018	(874,856)	$ 50,000	$ 2,316	2,378,452	(3,306,573)
Beginning Balance, Shares at Dec. 31, 2017		50,000,000	2,245,235
Beginning Balance, Amount at Dec. 31, 2017	(660,230)	$ 50,000	$ 2,245	2,278,150	(2,991,576)
Net loss	(522,275)
Ending Balance, Shares at Jun. 30, 2018		50,000,000	2,842,075
Ending Balance, Amount at Jun. 30, 2018	(906,730)	$ 50,000	$ 2,842	2,553,330	(3,513,851)
Beginning Balance, Shares at Dec. 31, 2017		50,000,000	2,245,235
Beginning Balance, Amount at Dec. 31, 2017	(660,230)	$ 50,000	$ 2,245	2,278,150	(2,991,576)
Issued common stock for services, Amount	315,113
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount	63,000
Ending Balance, Shares at Dec. 31, 2018		50,000,000	5,207,330
Ending Balance, Amount at Dec. 31, 2018	(565,933)	$ 50,000	$ 5,207	3,159,848	(3,781,938)
Beginning Balance, Shares at Mar. 31, 2018		50,000,000	2,316,678
Beginning Balance, Amount at Mar. 31, 2018	(874,856)	$ 50,000	$ 2,316	2,378,452	(3,306,573)
Issued common stock for services, Shares			95,000
Issued common stock for services, Amount	81,399		$ 95	81,304
Issued common stock for reduction of convertible note payable, Shares			430,397
Issued common stock for reduction of convertible note payable, Amount	68,641		$ 430	68,211
Net loss	(207,278)				(207,278)
Paid-in capital - Derivative liability	25,363			25,363
Ending Balance, Shares at Jun. 30, 2018		50,000,000	2,842,075
Ending Balance, Amount at Jun. 30, 2018	(906,730)	$ 50,000	$ 2,842	2,553,330	(3,513,851)
Beginning Balance, Shares at Dec. 31, 2018		50,000,000	5,207,330
Beginning Balance, Amount at Dec. 31, 2018	(565,933)	$ 50,000	$ 5,207	3,159,848	(3,781,938)
Issued common stock for services, Shares			469,167
Issued common stock for services, Amount			$ 469	78,556
Sold shares of common stock for cash, Shares			577,258
Sold shares of common stock for cash, Amount	53,700		$ 577	53,123
Net loss	(200,418)				(200,418)
Ending Balance, Shares at Mar. 31, 2019		50,000,000	6,253,755
Ending Balance, Amount at Mar. 31, 2019	(633,625)	$ 50,000	$ 6,254	3,291,527	(3,982,356)
Beginning Balance, Shares at Dec. 31, 2018		50,000,000	5,207,330
Beginning Balance, Amount at Dec. 31, 2018	(565,933)	$ 50,000	$ 5,207	3,159,848	(3,781,938)
Net loss	(1,088,341)
Ending Balance, Shares at Jun. 30, 2019		50,000,000	6,841,264
Ending Balance, Amount at Jun. 30, 2019	(790,286)	$ 50,000	$ 6,841	4,023,151	(4,870,279)
Beginning Balance, Shares at Mar. 31, 2019		50,000,000	6,253,755
Beginning Balance, Amount at Mar. 31, 2019	(633,625)	$ 50,000	$ 6,254	3,291,527	(3,982,356)
Issued common stock for services, Shares			587,500
Issued common stock for services, Amount	738,050		$ 588	737,462
Adjustment for fractional shares due to 1 for 20 reverse split, Shares			9
Adjustment for fractional shares due to 1 for 20 reverse split, Amount				950
Net loss	(887,923)				(887,923)
Paid-in capital - Derivative liability	(6,788)			(6,788)
Ending Balance, Shares at Jun. 30, 2019		50,000,000	6,841,264
Ending Balance, Amount at Jun. 30, 2019	$ (790,286)	$ 50,000	$ 6,841	$ 4,023,151	$ (4,870,279)

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Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,088,341)	$ (522,275)
Adjustment to reconcile net loss to net cash used in in operations:
Amortization		100
Change in fair market value of derivatives	(681)	15,407
Amortization of debt discount	21,850	50,740
Stock issued for services	817,075	234,233
Increase (decrease) in operating liabilities:
Accounts receivable		24,469
Accounts payable		25,780
Accrued expenses - related party	129,008	63,000
Accrued interest	1,717	10,591
Net Cash used in operating activities	(119,372)	(97,955)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shareholder loans	4,000	27,000
Principal payments on shareholder loans		(25,500)
Proceeds from convertible notes payable	57,000	96,000
Proceeds from the sale of stock	53,700
Net Cash provided by financing activates	114,700	97,500
Net increase in cash	(4,672)	(455)
Cash
Beginning of period	7,920	1,883
End of period	3,248	1,428
Supplemental cash flow information
Cash paid for interest
Cash paid for taxes
Non-cash transactions:
Original discount recorded on the recognition of notes with derivative Liability	57,000	96,000
Extinguishment of derivative liability related to debt conversions		117,115
Debt/accrued interest converted into common stock		$ 68,641

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NATURE OF BUSINESS

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 1 - NATURE OF BUSINESS

Thunder Energies Corporation (we, us, our, TEC or the Company) was incorporated in the State of Florida on April 21, 2011. On May 1, 2014, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the Amendment) which changed the name of the Company from Thunder Fusion Corporation to Thunder Energies Corporation. The Amendment also changed the principal office address of the Company to 1444 Rainville Road, Tarpon Springs, Florida 34689.

The business of Thunder Energies Corporation ("TEC") is focused, depending on funding, on the manufacturing, sale and service of three new cutting-edge technologies (patents and trademarks pending): the new Santilli telescopes with concave lenses; the new hadronic reactors for the synthesis of the neutron from the hydrogen gas, and the new HyperFurnaces for the full combustion of fossil fuels. 

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GOING CONCERN

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 2 - GOING CONCERN

The Companys financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating cost and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Managements plan to obtain such resources for the Company include, obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

UNAUDITED INTERIM FINANICAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The interim financial statements should be read in conjunction with the annual financial statements included in the Form 10K as of December 31, 2018 and filed with the Securities and Exchange Commission on March 14, 2019.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

BASIS OF PRESENTATION AND USE OF ESTIMATES

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which require 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

REVERSE STOCK SPLIT

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Companys Articles of Incorporation that provided for a 1 for 20 reverse stock split of the Companys Common Stock. The Companys Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. The effective date of the reverse stock split was subject to approval by FINRA, and the reverse stock split was published to the market and effective on June 24, 2019. At the effective time of the reverse stock split, every 20 issued and outstanding shares of the Companys Common Stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or number of authorized shares of Common Stock. All share and per share amounts contained in this Quarterly Report on Form 10-Q and the accompanying Condensed Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents totaled $3,248 at June 30, 2019 and $7,920 at December 31, 2018.

CASH FLOWS REPORTING

The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period.

RELATED PARTIES

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

FINANCIAL INSTRUMENTS

The Companys balance sheet includes financial instruments, including cash, accounts payable, accrued expenses and notes payable. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entitys own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). 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	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3	Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

EXPENSES

Operating expenses encompass research and development, stock in exchange for services, professional fees and selling general and administrative expenses. Total operating expenses were $856,846 and $187,575 for the three months ended June 30, 2019 and 2018, respectively and $1,055,448 and $445,537 for the six months ended June 30, 2019 and 2018 respectively. Total operating expenses consisted of the following.

RESEARCH AND DEVELOPMENT

The Company expenses research and development costs when incurred. Research and development costs include engineering and testing of product and outputs. Indirect costs related to research and developments are allocated based on percentage usage to the research and development. We spent $27,053 and $12,106 for the three months ended June 30, 2019 and 2018, respectively and $41,310 and $37,593 for the six months ended June 30, 2019 and 2018 respectively.

STOCK IN EXCHANGE FOR SERVICES

Stock in exchange for services are the result of consulting services and certain management related services rendered in exchange of stock. All stock is issued at the fair market value on the date of services. Total stock in exchange of services were $738,050 and $0 for the three months ended June 30, 2019 and 2018, respectively and $817,075 and $0 for the six months ended June 30, 2019 and 2018 respectively.

PROFESSIONAL FEES

Professional services are principally comprised of outside legal, audit and consulting services as well as the costs related to a publicly traded company. Total professional fees were $38,718 and $119,865 for the three months ended June 30, 2019 and 2018, respectively and $83,166 and $288,602 for the six months ended June 30, 2019 and 2018 respectively.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses consist primarily of management fees, technology services, public relations and travel expenses. Total selling, general and administrative expenses were $53,025 and $55,604 for the three months ended June 30, 2019 and 2018, respectively and $113,897 and $119,342 for the six months ended June 30, 2019 and 2018 respectively.

DEFERRED INCOME TAXES AND VALUATION ALLOWANCE

The Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of June 30, 2019 or December 31, 2018.

NET LOSS PER COMMON SHARE

Net loss per share is calculated in accordance with ASC 260, Earnings Per Share. The weighted-average number of common shares outstanding during each period is used to compute basic earning or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.

Basic net loss per common share is based on the weighted average number of shares of common stock outstanding at June 30, 2019. As of June 30, 2019, the common stock equivalents have not been included as they are anti-dilutive. 

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

	June 30,		December 31,
	2019		2018
Options to purchase shares of common stock		29,887		29,887
Series A convertible preferred stock		50,000,000		50,000,000
Total potentially dilutive shares		50,029,265		50,029,265

__________ 

*	Options to purchase shares are calculated in accordance with employment agreements.
**	Total potentially dilutive shares reflect a 10 for 1 conversion into common shares per its designation.

SHARE-BASED EXPENSE

ASC 718, Compensation Stock Compensation, prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity Based Payments to Non-Employees. Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable:(a) the goods or services received; or (b) the equity instruments issued.

Share-based expense for the three and six months ended June 30, 2019 and 2018 was $738,050 and $0 and $817,075 and $0, respectively.

COMMITMENTS AND CONTINGENCIES

The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of June 30, 2019 and December 31, 2018.

RECENT ACCOUNTING PRONOUNCEMENTS

From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard is effective January 1, 2019. The standard will be effective for the Company on September 1, 2019 due to the Emerging Growth Company exemptions. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

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NOTE PAYABLE

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 4 - NOTE PAYABLE

	June 30, 2019		December 31, 2018
Pubrelco Inc., a non-related party executed the purchase of $60,000 note from our CEO, Dr. Ruggero Santilli on November 26, 2018. The demand note carries a 2.15% annual percentage rate and has no maturity date.	$	60,000	$	60,000
Total notes payable	$	60,000	$	60,000
Accrued interest		763		124
Current portion of note payable and accrued interest	$	60,763	$	60,124

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CONVERTIBLE NOTE PAYABLE

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 5 - CONVERTIBLE NOTE PAYABLE

GHS INVESTMENTS, LLC

On April 22, 2019; The Company executed a convertible promissory note with GHS Investments, LLC. The note carries a principal balance of $57,000 together with an interest rate of eight (10%) per annum and a maturity date of February 21, 2020. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share in accordance with the terms of the note agreement shall be made in lawful money of the United States of America. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (20%) per annum from the due date thereof until the same is paid. As of June 30, 2018, the principal balance outstanding is $57,000.

The holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this note, to convert all or any part of the outstanding and unpaid principal amount into Common Stock. The conversion shall equal sixty-five percent (65%) of the lowest trading prices for the Common Stock during the twenty (20) day trading period ending on the latest complete trading day prior to the conversion date, representing a discount rate of thirty-five percent (35%).

The Company accounts for this embedded conversion feature as a derivative under ASC 815-10-15-83 and valued separately from the note at fair value. The embedded conversion feature of the note is revalued at each subsequent reporting date at fair value and any changes in fair value will result in a gain or loss in those periods. At June 30, 2019 and December 31, 2018, the derivative liability associated with GHS Investments LLC was $63,107 and $0, respectively.

Convertible Notes payable consisted of the following:

	June 30, 2019			December 31, 2018
Convertible notes payable:	$	57,000		$	---
Debt discount		(35,150	)		---
Convertible notes payable net of debt discount	$	21,850		$	---
Accrued interest		1,078			---
Current portion of convertible note payable and interest	$	22,928		$	---

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ACCRUED INTEREST

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 6 - ACCRUED INTEREST

The Companys accrued interest consisted of the following:

	June 30, 2019		December 31, 2018
Accrued Interest
Pubrelco Inc.	$	763	$	124
Note payable related party		46,356		43,349
Convertible notes payable		1,078		---
Total Accrued Interest	$	48,197	$	43,473

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SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 7 - SHAREHOLDERS' EQUITY

COMMON STOCK

The Company has been authorized to issue 900,000,000 shares of common stock, $0.001 par value. Each share of issued and outstanding common stock shall entitle the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the corporation upon liquidation or dissolution.

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Companys Articles of Incorporation that provided for a 1 for 20 reverse stock split of the Companys Common Stock. The Companys Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. All share and per share amounts contained in this Quarterly Report on Form 10-Q and the accompanying Condensed Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

During the periods covered by this report, the Company issued 4,596,029 shares to related and non-related parties in the amount of $1,755,435. Shares of our common stock were issued at fair market value of the share price as set forth in the table below unless otherwise stated.

Date	Shares		Issuance Description	Relationship	Share Price		Amount
1/12/18		10,000	Services	Non-related parties		3.000		30,000
1/16/18		7,500	Services	Non-related party		3.000		22,500
2/12/18		2,000	Services	Non-related party		1.608		3,216
2/15/18		5,000	Services	Non-related party		2.000		10,000
2/23/18		5,000	Services	Non-related party		1.700		8,500
3/15/18		5,000	Services	Non-related party		1.700		8,500
3/29/18		33,193	Conversion of accrued salaries	Related parties		1.898		63,000
3/29/18		3,750	Services	Non-related party		1.898		7,117
4/5/18		12,500	Services	Non-related parties		1.580		19,750
4/9/18		12,500	Services	Non-related parties		1.400		17,500
4/27/18		15,000	Services	Non-related party		0.670		10,050
5/2/18		42,017	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.238		10,000
5/7/18		34,100	Services	Non-related parties		0.620		34,100
5/14/18		47,170	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.212		10,000
5/24/18		52,083	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.192		10,000

Date	Shares		Issuance Description	Relationship	Share Price		Amount
6/4/18		117,059	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		15,920
6/6/18		86,912	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		11,820
6/12/18		85,156	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.128		10,900
7/19/18		100,503	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.119		12,000
7/25/18		290,000	Services	Non-related parties		0.200		58,000
8/6/18		109,091	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.110		12,000
8/28/18		220,588	Services	Non-related party		0.136		30,000
10/5/18		50,000	Services	Non-related party		0.148		7,400
10/8/19		117,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		8,220
10/11/18		171,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		12,000
10/17/18		191,857	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,430
10/19/18		192,000	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,440
10/23/18		213,611	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.072		15,380
10/26/18		180,676	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.074		13,370
11/12/18		50,000	Services	Non-related party		0.230		11,500
11/30/18		260,417	Services	Non-related party		0.142		36,979
12/14/18		217,656	Cash	Non-related party		0.094		20,547
1/7/19		90,000	Services	Non-related party		0.100		9,000
1/25/19		100,000	Services	Non-related party		0.088		8,800
2/6/19		226,715	Cash	Non-related party		0.061		13,784
2/14/19		12,500	Services	Non-related party		0.306		3,825
2/19/19		166,667	Services	Non-related party		0.240		40,000
3/5/19		289,500	Cash	Non-related party		0.120		34,740
3/7/19		50,000	Services	Non-related party		0.192		9,600
3/13/19		50,000	Services	Non-related party		0.156		7,800
3/19/19		61,043	Cash	Non-related party		0.085		5,176
4/1/19		12,500	Services	Non-related party		0.100		1,250
4/22/19		100,000	Execution of new convertible note payable	Non-related party		3.160		316,000
4/24/19		50,000	Services	Non-related party		3.160		158,000
4/30/19		50,000	Services	Non-related party		2.960		148,000
5/11/19		25,000	Services	Non-related party		2.800		70,000
5/15/19		250,000	Services	Non-related party		0.116		29,000
5/12/19		100,000	Services	Non-related party		0.158		15,800

PREFERRED STOCK

The Company has been authorized to issue 750,000,000 shares of $0.001 par value Preferred Stock. The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, within certain guidelines established in the Articles of Incorporation.

Series A: The certificate of designation for the Preferred A Stock provides that as a class it possesses a number of votes equal to fifteen (15) votes per share and may be converted into ten (10) $0.001 par value common shares.

On October 10, 2013, the Company issued fifty million (50,000,000) shares of our Series A Convertible Preferred Stock (the Preferred Stock) to Hadronic Technologies Press, Inc. (Hadronic), a Florida corporation maintaining its principal place of business at 35246 US Highway 19 North, Suite #215, Palm Harbor, Florida 34684. Our Directors, Dr. Ruggero M. Santilli and Mrs. Carla Santilli each own fifty percent of the equity in Hadronic. The Series A Convertible Preferred Stock has 15 votes per share and is convertible into 10 shares of our common stock at the election of the shareholder. Shares were valued at the par value of the common stock equivalents, $500,000.

At June 30, 2019 and December 31, 2018, there were Fifty million (50,000,000) shares of Series A Convertible Preferred Stock issued and outstanding, respectively.

OPTIONS AND WARRANTS

In accordance with employment agreements, common stock options are issued annually to the officers of the Company. The number of shares is determined by the number of shares outstanding at the end of the year at a percentage per the employment agreements, as described below. The strike price is the fair value trading price as of the anniversary date of the employment agreements. The options are based on the number of shares outstanding of the Company at the year end, at an exercise price at market price at the employment agreements annual anniversary, July 25^th. As of June 30, 2019, the officers are entitled to 29,887 options, at an average exercise price of $0.2818. There is no expiration date to these options and only vest upon a change in control. The options were valued at $4,695, however no expense has been recognized with the associated options, as no options have vested or are considered by management to probable vest. The options were valued using the Black Scholes Method, using the following assumptions:

Weighted Average:	June 30, 2019			December 31, 2018
Risk-free interest rate		2.42	%		2.42	%
Expected lives (years)		10.0			10.0
Expected price volatility		161.40	%		161.40	%
Dividend rate		0.0	%		0.0	%
Forfeiture Rate		0.0	%		0.0	%

There are no other warrants or options outstanding to acquire any additional shares of common stock of the Company as of June 30, 2019.

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 8 - RELATED PARTY TRANSACTIONS

ADVANCES, PAYABLES AND ACCRUALS

Amounts included in accruals represent amounts due to the officers and directors for corporate obligations under the employment agreements. Payments on behalf of the Company and accruals made under contractual obligation are accrued (see below). As of June 30, 2019, and December 31, 2018 accrued expenses were $315,000 and $189,000, respectively.

NOTE PAYABLE

In support of the Companys efforts and cash requirements, it has relied on advances from the majority shareholders until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by shareholders. All advances made in support of the Company are formalized by demand notes, at a 2.15% interest rate.

For the six months ended June 30, 2019 and 2018 our Chief Executive Officer, Dr. Ruggero M. Santilli and immediate family members have loaned the company $4,000 and $27,000, respectively for operations. For the six months ended June 30, 2019 and 2018 the Company repaid the principal amounts by $0 and $25,500, respectively.

At June 30, 2019 and December 31, 2018, the demand notes accumulative balances were $285,380 and $281,380, respectively. Accrued interest at June 30, 2019 and December 31, 2018 was $46,356 and $43,349, respectively.

EQUITY TRANSACTIONS

On March 29, 2018 the Company issued 33,193 shares to related parties for conversion of accrued compensation of $63,000, recorded at the fair market value of the share price.

On December 31, 2018, our Chief Executive Officer, Dr. Ruggero M. Santilli requested the extinguishment of $250,000 of notes payable due. The Company extinguished $250,000 of notes payable due Dr. Ruggero M. Santilli on December 31, 2018 and booked the offsetting entry to Additional paid-in Capital due to it being a related party transaction.

EMPLOYMENT CONTRACTS

The Company has employment contracts with its key employees, the controlling shareholders, who are its officers and directors of the Company.

· Dr. Santilli, 5 year contract, annual salary of $180,000 and annual common stock options for .01% of the outstanding stock per calendar year at the average trading price of the anniversary date, July 25^th

· Carla Santilli, 5 year consulting contract, annual salary of $72,000 and annual common stock options for .005% of the outstanding stock per calendar year at the average trading price of the anniversary date, July 25^th.

OTHER

The Company does not own or lease property or lease office space. At the current time, the office space used by the Company was arranged by the majority shareholders of the Company to use at no charge. It is anticipated that the Company will enter into formal lease arrangements in the near future.

The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent

third parties.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 9 - COMMITMENTS AND CONTINGENCIES

From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company's financial position or results of operations.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2019

NATURE OF BUSINESS

Note 10 - SUBSEQUENT EVENTS

Subsequent to the period covered by this report, the Company issued 200,000 shares to non-related parties in the amount of $9,000. Shares of our common stock were issued at fair market value of the share price as set forth in the table below unless otherwise stated.

Date	Shares		Issuance Description	Relationship	Share Price		Amount
7/11/19		200,000	Services	Non-related parties		0.045		9,000

Management has evaluated subsequent events through the date the financial statements were available to be issued, considered to be the date of filing with the Securities and Exchange Commission. Based on our evaluation no events have occurred requiring adjustment to or disclosure in the financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

UNAUDITED INTERIM FINANICAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The interim financial statements should be read in conjunction with the annual financial statements included in the Form 10K as of December 31, 2018 and filed with the Securities and Exchange Commission on March 14, 2019.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

BASIS OF PRESENTATION AND USE OF ESTIMATES

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which require 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

REVERSE STOCK SPLIT

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Companys Articles of Incorporation that provided for a 1 for 20 reverse stock split of the Companys Common Stock. The Companys Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. The effective date of the reverse stock split was subject to approval by FINRA, and the reverse stock split was published to the market and effective on June 24, 2019. At the effective time of the reverse stock split, every 20 issued and outstanding shares of the Companys Common Stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or number of authorized shares of Common Stock. All share and per share amounts contained in this Quarterly Report on Form 10-Q and the accompanying Condensed Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents totaled $3,248 at June 30, 2019 and $7,920 at December 31, 2018.

CASH FLOWS REPORTING

The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period.

RELATED PARTIES

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

FINANCIAL INSTRUMENTS

The Company’s balance sheet includes financial instruments, including cash, accounts payable, accrued expenses and notes payable. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entitys own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). 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	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3	Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

EXPENSES

Operating expenses encompass research and development, stock in exchange for services, professional fees and selling general and administrative expenses. Total operating expenses were $856,846 and $187,575 for the three months ended June 30, 2019 and 2018, respectively and $1,055,448 and $445,537 for the six months ended June 30, 2019 and 2018 respectively. Total operating expenses consisted of the following.

RESEARCH AND DEVELOPMENT

The Company expenses research and development costs when incurred. Research and development costs include engineering and testing of product and outputs. Indirect costs related to research and developments are allocated based on percentage usage to the research and development. We spent $27,053 and $12,106 for the three months ended June 30, 2019 and 2018, respectively and $41,310 and $37,593 for the six months ended June 30, 2019 and 2018 respectively.

STOCK IN EXCHANGE FOR SERVICES

Stock in exchange for services are the result of consulting services and certain management related services rendered in exchange of stock. All stock is issued at the fair market value on the date of services. Total stock in exchange of services were $738,050 and $0 for the three months ended June 30, 2019 and 2018, respectively and $817,075 and $0 for the six months ended June 30, 2019 and 2018 respectively.

PROFESSIONAL FEES

Professional services are principally comprised of outside legal, audit and consulting services as well as the costs related to a publicly traded company. Total professional fees were $38,718 and $119,865 for the three months ended June 30, 2019 and 2018, respectively and $83,166 and $288,602 for the six months ended June 30, 2019 and 2018 respectively.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses consist primarily of management fees, technology services, public relations and travel expenses. Total selling, general and administrative expenses were $53,025 and $55,604 for the three months ended June 30, 2019 and 2018, respectively and $113,897 and $119,342 for the six months ended June 30, 2019 and 2018 respectively.

v

DEFERRED INCOME TAXES AND VALUATION ALLOWANCE

The Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. No deferred tax assets or liabilities were recognized as of June 30, 2019 or December 31, 2018.

NET LOSS PER COMMON SHARE

Net loss per share is calculated in accordance with ASC 260, Earnings Per Share. The weighted-average number of common shares outstanding during each period is used to compute basic earning or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.

Basic net loss per common share is based on the weighted average number of shares of common stock outstanding at June 30, 2019. As of June 30, 2019, the common stock equivalents have not been included as they are anti-dilutive. 

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

	June 30,		December 31,
	2019		2018
Options to purchase shares of common stock		29,887		29,887
Series A convertible preferred stock		50,000,000		50,000,000
Total potentially dilutive shares		50,029,265		50,029,265

__________ 

*	Options to purchase shares are calculated in accordance with employment agreements.
**	Total potentially dilutive shares reflect a 10 for 1 conversion into common shares per its designation.

SHARE-BASED EXPENSE

ASC 718, Compensation Stock Compensation, prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, Equity Based Payments to Non-Employees. Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable:(a) the goods or services received; or (b) the equity instruments issued.

Share-based expense for the three and six months ended June 30, 2019 and 2018 was $738,050 and $0 and $817,075 and $0, respectively.

COMMITMENTS AND CONTINGENCIES

The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of June 30, 2019 and December 31, 2018.

RECENT ACCOUNTING PRONOUNCEMENTS

From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which is intended to improve financial reporting on leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by lease terms of more than 12 months. This standard is effective January 1, 2019. The standard will be effective for the Company on September 1, 2019 due to the Emerging Growth Company exemptions. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

Calculation of diluted net loss per share

	June 30,		December 31,
	2019		2018
Options to purchase shares of common stock		29,887		29,887
Series A convertible preferred stock		50,000,000		50,000,000
Total potentially dilutive shares		50,029,265		50,029,265

__________ 

*	Options to purchase shares are calculated in accordance with employment agreements.
**	Total potentially dilutive shares reflect a 10 for 1 conversion into common shares per its designation.

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NOTE PAYABLE (Tables)

6 Months Ended

Jun. 30, 2019

NOTE PAYABLE (Tables)

Schedule of notes payable

	June 30, 2019		December 31, 2018
Pubrelco Inc., a non-related party executed the purchase of $60,000 note from our CEO, Dr. Ruggero Santilli on November 26, 2018. The demand note carries a 2.15% annual percentage rate and has no maturity date.	$	60,000	$	60,000
Total notes payable	$	60,000	$	60,000
Accrued interest		763		124
Current portion of note payable and accrued interest	$	60,763	$	60,124

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CONVERTIBLE NOTE PAYABLE (Tables)

6 Months Ended

Jun. 30, 2019

NOTE PAYABLE (Tables)

Schedule of convertible Notes payable

	June 30, 2019			December 31, 2018
Convertible notes payable:	$	57,000		$	---
Debt discount		(35,150	)		---
Convertible notes payable net of debt discount	$	21,850		$	---
Accrued interest		1,078			---
Current portion of convertible note payable and interest	$	22,928		$	---

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ACCRUED INTEREST (Tables)

6 Months Ended

Jun. 30, 2019

ACCRUED INTEREST (Tables)

Schedule of accrued interest

	June 30, 2019		December 31, 2018
Accrued Interest
Pubrelco Inc.	$	763	$	124
Note payable related party		46,356		43,349
Convertible notes payable		1,078		---
Total Accrued Interest	$	48,197	$	43,473

XML

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2019

SHAREHOLDERS' EQUITY (Tables)

Summary of Options and Warrants

Weighted Average:	June 30, 2019			December 31, 2018
Risk-free interest rate		2.42	%		2.42	%
Expected lives (years)		10.0			10.0
Expected price volatility		161.40	%		161.40	%
Dividend rate		0.0	%		0.0	%
Forfeiture Rate		0.0	%		0.0	%

Schedule of fair market value of the share price

Date	Shares		Issuance Description	Relationship	Share Price		Amount
1/12/18		10,000	Services	Non-related parties		3.000		30,000
1/16/18		7,500	Services	Non-related party		3.000		22,500
2/12/18		2,000	Services	Non-related party		1.608		3,216
2/15/18		5,000	Services	Non-related party		2.000		10,000
2/23/18		5,000	Services	Non-related party		1.700		8,500
3/15/18		5,000	Services	Non-related party		1.700		8,500
3/29/18		33,193	Conversion of accrued salaries	Related parties		1.898		63,000
3/29/18		3,750	Services	Non-related party		1.898		7,117
4/5/18		12,500	Services	Non-related parties		1.580		19,750
4/9/18		12,500	Services	Non-related parties		1.400		17,500
4/27/18		15,000	Services	Non-related party		0.670		10,050
5/2/18		42,017	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.238		10,000
5/7/18		34,100	Services	Non-related parties		0.620		34,100
5/14/18		47,170	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.212		10,000
5/24/18		52,083	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.192		10,000

Date	Shares		Issuance Description	Relationship	Share Price		Amount
6/4/18		117,059	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		15,920
6/6/18		86,912	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.136		11,820
6/12/18		85,156	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.128		10,900
7/19/18		100,503	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.119		12,000
7/25/18		290,000	Services	Non-related parties		0.200		58,000
8/6/18		109,091	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.110		12,000
8/28/18		220,588	Services	Non-related party		0.136		30,000
10/5/18		50,000	Services	Non-related party		0.148		7,400
10/8/19		117,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		8,220
10/11/18		171,429	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		12,000
10/17/18		191,857	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,430
10/19/18		192,000	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.070		13,440
10/23/18		213,611	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.072		15,380
10/26/18		180,676	Principal reduction to convertible note payable. Issued at a discount to the FMV	Non-related party		0.074		13,370
11/12/18		50,000	Services	Non-related party		0.230		11,500
11/30/18		260,417	Services	Non-related party		0.142		36,979
12/14/18		217,656	Cash	Non-related party		0.094		20,547
1/7/19		90,000	Services	Non-related party		0.100		9,000
1/25/19		100,000	Services	Non-related party		0.088		8,800
2/6/19		226,715	Cash	Non-related party		0.061		13,784
2/14/19		12,500	Services	Non-related party		0.306		3,825
2/19/19		166,667	Services	Non-related party		0.240		40,000
3/5/19		289,500	Cash	Non-related party		0.120		34,740
3/7/19		50,000	Services	Non-related party		0.192		9,600
3/13/19		50,000	Services	Non-related party		0.156		7,800
3/19/19		61,043	Cash	Non-related party		0.085		5,176
4/1/19		12,500	Services	Non-related party		0.100		1,250
4/22/19		100,000	Execution of new convertible note payable	Non-related party		3.160		316,000
4/24/19		50,000	Services	Non-related party		3.160		158,000
4/30/19		50,000	Services	Non-related party		2.960		148,000
5/11/19		25,000	Services	Non-related party		2.800		70,000
5/15/19		250,000	Services	Non-related party		0.116		29,000
5/12/19		100,000	Services	Non-related party		0.158		15,800

XML

NATURE OF BUSINESS (Details Narrative)	6 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS (Details Narrative)
State of incorporation	Florida
Date of incorporation	Apr. 21, 2011

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)
Options to purchase shares of common stock	$ 29,887	$ 29,887
Series A convertible preferred stock	50,000,000	50,000,000
Total potentially dilutive shares	50,029,265	50,029,265

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
NATURE OF BUSINESS
Cash and cash equivalents	$ 3,248	$ 1,428	$ 3,248	$ 1,428	$ 7,920	$ 1,883
Operating expenses	856,846	187,575	1,055,448	445,337
Research and development	27,053	12,106	41,310	37,593
Stock in exchange for services	738,050	0	817,075	0
Professional fees	38,718	119,865	83,166	288,602
Share-based expense	738,050		817,075
Selling, general and administrative expenses	$ 53,025	$ 55,604	$ 113,897	$ 119,342

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NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Total notes payable	$ 60,000	$ 60,000
Accrued interest	763	124
Current portion of note payable and accrued interest	60,763	60,124
Pubrelco Inc [Member] | Non-Related Party [Member]
Total notes payable	$ 60,000	$ 60,000

XML

CONVERTIBLE NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
CONVERTIBLE NOTE PAYABLE (Details)
Convertible notes payable:	$ 57,000
Debt discount	(35,150)
Convertible notes payable net of debt discount	21,850
Accrued interest	1,078
Current portion of convertible note payable and interest	$ (22,928)	$ 0

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CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Apr. 22, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018
Terms of conversion feature
A non-related party convertible promissory note		$ (22,928)		$ 0
Interest rate		2.15%
Common stock par value		$ 0.001	$ 0.001	$ 0.001
GHS Investments LLC [Member]
A non-related party convertible promissory note	$ 57,000
Interest rate	10.00%
Maturity date	Feb. 21, 2020
Interest rate after due date	20.00%
Derivative Liability		$ 63,107		$ 0
Outstanding balance					$ 57,000
Common stock par value	$ 0.001

XML

ACCRUED INTEREST (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Total Accrued Interest	$ 48,197	$ 43,473
Convertible Note Payable [Member]
Total Accrued Interest	1,078
Pubrelco Inc [Member]
Total Accrued Interest	763	124
Note payable related party [Member]
Total Accrued Interest	$ 46,356	$ 43,349

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SHAREHOLDERS' EQUITY (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Weighted Average:
Risk-free interest rate	2.42%	2.42%
Expected lives (years)	10 years	10 years
Expected price volatility	161.40%	161.40%
Dividend rate	0.00%	0.00%
Forfeiture Rate	0.00%	0.00%

XML

SHAREHOLDERS' EQUITY (Details 1)	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Date 1 [Member]
Date	1/12/18
Amount | $	$ 30,000
Share Price | $ / shares	$ 3.000
Relationship	Non-related parties
Issuance description	Services
Shares | shares	10,000
Date 2 [Member]
Date	1/16/18
Amount | $	$ 22,500
Share Price | $ / shares	$ 3.000
Relationship	Non-related parties
Issuance description	Services
Shares | shares	7,500
Date 3 [Member]
Date	2/12/18
Amount | $	$ 3,216
Share Price | $ / shares	$ 1.608
Relationship	Non-related party
Issuance description	Services
Shares | shares	2,000
Date 4 [Member]
Date	2/15/18
Amount | $	$ 10,000
Share Price | $ / shares	$ 2.000
Relationship	Non-related party
Issuance description	Services
Shares | shares	5,000
Date 5 [Member]
Date	2/23/18
Amount | $	$ 8,500
Share Price | $ / shares	$ 1.700
Relationship	Non-related party
Issuance description	Services
Shares | shares	5,000
Date 6 [Member]
Date	3/15/18
Amount | $	$ 8,500
Share Price | $ / shares	$ 1.700
Relationship	Non-related party
Issuance description	Services
Shares | shares	5,000
Date 7 [Member]
Date	3/29/18
Amount | $	$ 63,000
Share Price | $ / shares	$ 1.898
Relationship	Related parties
Issuance description	Conversion of accrued salaries
Shares | shares	33,193
Date 8 [Member]
Date	3/29/18
Amount | $	$ 7,117
Share Price | $ / shares	$ 1.898
Relationship	Non-related party
Issuance description	Services
Shares | shares	3,750
Date 9 [Member]
Date	4/5/18
Amount | $	$ 7,117
Share Price | $ / shares	$ 1.580
Relationship	Non-related parties
Issuance description	Services
Shares | shares	12,500
Date 10 [Member]
Date	4/9/18
Amount | $	$ 17,500
Share Price | $ / shares	$ 1.400
Relationship	Non-related parties
Issuance description	Services
Shares | shares	12,500
Date 11 [Member]
Date	4/27/18
Amount | $	$ 10,050
Share Price | $ / shares	$ 0.670
Relationship	Non-related party
Issuance description	Services
Shares | shares	15,000
Date 12 [Member]
Date	5/2/18
Amount | $	$ 10,000
Share Price | $ / shares	$ 0.238
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	42,017
Date 13 [Member]
Date	5/7/18
Amount | $	$ 34,100
Share Price | $ / shares	$ 0.620
Relationship	Non-related parties
Issuance description	Services
Shares | shares	34,100
Date 14 [Member]
Date	5/14/18
Amount | $	$ 10,000
Share Price | $ / shares	$ 0.212
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	47,170
Date 15 [Member]
Date	5/24/18
Amount | $	$ 10,000
Share Price | $ / shares	$ 0.192
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	52,083
Date 16 [Member]
Date	6/4/18
Amount | $	$ 15,920
Share Price | $ / shares	$ 0.136
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	117,059
Date 17 [Member]
Date	6/6/18
Amount | $	$ 11,820
Share Price | $ / shares	$ 0.136
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	86,912
Date 39 [Member]
Date	3/7/19
Amount | $	$ 9,600
Share Price | $ / shares	$ 0.192
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 40 [Member]
Date	3/13/19
Amount | $	$ 7,800
Share Price | $ / shares	$ 0.156
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 41 [Member]
Date	3/19/19
Amount | $	$ 5,176
Share Price | $ / shares	$ 0.085
Relationship	Non-related party
Issuance description	Cash
Shares | shares	61,043
Date 42 [Member]
Date	4/1/19
Amount | $	$ 1,250
Share Price | $ / shares	$ 0.100
Relationship	Non-related party
Issuance description	Services
Shares | shares	12,500
Date 43 [Member]
Date	4/22/19
Amount | $	$ 316,000
Share Price | $ / shares	$ 3.160
Relationship	Non-related party
Issuance description	Execution of new convertible note payable
Shares | shares	100,000
Date 44 [Member]
Date	4/24/19
Amount | $	$ 158,000
Share Price | $ / shares	$ 3.160
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 45 [Member]
Date	4/30/19
Amount | $	$ 148,000
Share Price | $ / shares	$ 2.960
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 46 [Member]
Date	5/11/19
Amount | $	$ 70,000
Share Price | $ / shares	$ 2.800
Relationship	Non-related party
Issuance description	Services
Shares | shares	25,000
Date 47 [Member]
Date	5/15/19
Amount | $	$ 29,000
Share Price | $ / shares	$ 0.116
Relationship	Non-related party
Issuance description	Services
Shares | shares	250,000
Date 48 [Member]
Date	5/12/19
Amount | $	$ 15,800
Share Price | $ / shares	$ 0.158
Relationship	Non-related party
Issuance description	Services
Shares | shares	100,000
Date 18 [Member]
Date	6/12/18
Amount | $	$ 10,900
Share Price | $ / shares	$ 0.128
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	85,156
Date 19 [Member]
Date	7/19/18
Amount | $	$ 12,000
Share Price | $ / shares	$ 0.119
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	100,503
Date 20 [Member]
Amount | $	$ 58,000
Share Price | $ / shares	$ 0.200
Relationship	Non-related parties
Issuance description	Services
Shares | shares	290,000
Date	Jul. 25, 2018
Date 21 [Member]
Date	8/6/18
Amount | $	$ 12,000
Share Price | $ / shares	$ 0.110
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	109,091
Date 22 [Member]
Date	8/28/18
Amount | $	$ 30,000
Share Price | $ / shares	$ 0.136
Relationship	Non-related party
Issuance description	Services
Shares | shares	220,588
Date 23 [Member]
Date	10/5/18
Amount | $	$ 7,400
Share Price | $ / shares	$ 0.148
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 24 [Member]
Date	10/8/19
Amount | $	$ 8,220
Share Price | $ / shares	$ 0.070
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	117,429
Date 25 [Member]
Date	10/11/18
Amount | $	$ 12,000
Share Price | $ / shares	$ 0.070
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	171,429
Date 26 [Member]
Date	10/17/18
Amount | $	$ 13,430
Share Price | $ / shares	$ 0.070
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	191,857
Date 27 [Member]
Date	10/19/18
Amount | $	$ 13,440
Share Price | $ / shares	$ 0.070
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	192,000
Date 28 [Member]
Date	10/23/18
Amount | $	$ 15,380
Share Price | $ / shares	$ 0.072
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	213,611
Date 29 [Member]
Date	10/26/18
Amount | $	$ 13,370
Share Price | $ / shares	$ 0.074
Relationship	Non-related party
Issuance description	Principal reduction to convertible note payable. Issued at a discount to the FMV
Shares | shares	180,676
Date 30 [Member]
Date	11/12/18
Amount | $	$ 11,500
Share Price | $ / shares	$ 0.230
Relationship	Non-related party
Issuance description	Services
Shares | shares	50,000
Date 31 [Member]
Date	11/30/18
Amount | $	$ 36,979
Share Price | $ / shares	$ 0.142
Relationship	Non-related party
Issuance description	Services
Shares | shares	260,417
Date 32 [Member]
Date	12/14/18
Amount | $	$ 20,547
Share Price | $ / shares	$ 0.094
Relationship	Non-related party
Issuance description	Cash
Shares | shares	217,656
Date 33 [Member]
Date	1/7/19
Amount | $	$ 9,000
Share Price | $ / shares	$ 0.100
Relationship	Non-related party
Issuance description	Services
Shares | shares	90,000
Date 34 [Member]
Date	1/25/19
Amount | $	$ 8,800
Share Price | $ / shares	$ 0.088
Relationship	Non-related party
Issuance description	Services
Shares | shares	100,000
Date 35 [Member]
Date	2/6/19
Amount | $	$ 13,784
Share Price | $ / shares	$ 0.061
Relationship	Non-related party
Issuance description	Cash
Shares | shares	226,715
Date 36 [Member]
Date	2/14/19
Amount | $	$ 3,825
Share Price | $ / shares	$ 0.306
Relationship	Non-related party
Issuance description	Services
Shares | shares	12,500
Date 37 [Member]
Date	2/19/19
Amount | $	$ 40,000
Share Price | $ / shares	$ 0.240
Relationship	Non-related party
Issuance description	Services
Shares | shares	166,667
Date 38 [Member]
Date	3/5/19
Amount | $	$ 34,740
Share Price | $ / shares	$ 0.120
Relationship	Non-related party
Issuance description	Cash
Shares | shares	289,500

XML

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($)																					1 Months Ended																	3 Months Ended				6 Months Ended		12 Months Ended
	Mar. 13, 2019	Mar. 07, 2019	Jan. 07, 2019	Nov. 12, 2018	Oct. 11, 2018	Oct. 08, 2018	Oct. 05, 2018	Aug. 06, 2018	Jun. 12, 2018	Jun. 06, 2018	Jun. 04, 2018	May 14, 2018	May 07, 2018	May 02, 2018	Apr. 09, 2018	Apr. 05, 2018	Mar. 15, 2018	Feb. 12, 2018	Jan. 12, 2018	Oct. 10, 2013	Feb. 19, 2019	Feb. 14, 2019	Jan. 25, 2019	Nov. 30, 2018	Oct. 26, 2018	Oct. 23, 2018	Oct. 19, 2018	Oct. 17, 2018	Sep. 18, 2018	Jul. 25, 2018	Jul. 19, 2018	May 24, 2018	Apr. 27, 2018	Mar. 29, 2018	Feb. 23, 2018	Feb. 15, 2018	Jan. 16, 2018	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Apr. 22, 2019
Common stock, authorized shares																																						900,000,000	900,000,000			900,000,000		900,000,000
Common stock par value																																						$ 0.001	$ 0.001			$ 0.001		$ 0.001
Preferred stock, authorized shares																																						750,000,000	750,000,000			750,000,000		750,000,000
Preferred stock, par value																																						$ 0.001	$ 0.001			$ 0.001		$ 0.001
Preferred stock, issued shares																				50,000,000																		50,000,000	50,000,000			50,000,000		50,000,000
Preferred stock, outstanding shares																																						50,000,000	50,000,000			50,000,000		50,000,000
Common Stock, Value																																							$ 125,075					$ 104,147
Common stock, shares issued for services, value																																						$ 738,050		$ 81,399	$ 89,834			315,113
Cash proceeds from common stock																																							53,700			$ 53,700
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount																																									$ 63,000			63,000
Common Stock, Value																																						$ 6,841				6,841		5,207
GHS Investments LLC [Member]
Common stock par value																																													$ 0.001
Common stock, shares issued					3,428,571	2,348,571		2,181,818	1,703,125	1,738,235	2,341,176	943,396		840,336											3,613,514	4,272,222	3,840,000	3,837,143			2,010,050	1,041,667
Common stock price per share					$ 0.0035	$ 0.0035		$ 0.0055	$ 0.0064	$ 0.0068	$ 0.0068	$ 0.0106		$ 0.0119											$ 0.0037	$ 0.0036	$ 0.0035	$ 0.0035			$ 0.00597	$ 0.0096
Convertible note payable, reduction in principal					$ 12,000	$ 7,100		$ 12,000	$ 9,580	$ 11,820	$ 14,600	$ 10,000		$ 10,000											$ 12,050	$ 15,380	$ 12,040	$ 13,430			$ 12,000	$ 10,000
Convertible note payable, reduction in accrued interest						$ 1,120			$ 1,320		$ 1,320														$ 1,320		$ 1,400
Common stock, fair market value per share					$ 0.012	$ 0.0084		$ 0.0124	$ 0.0113	$ 0.0127	$ 0.03	$ 0.028		$ 0.035											$ 0.0089	$ 0.0071	$ 0.0075	$ 0.0083			$ 0.013	$ 0.0161
Non-related parties [Member]
Common stock, shares issued for services, value	$ 7,800	$ 9,600	$ 9,000	$ 11,500			$ 7,400						$ 34,100		$ 17,500	$ 19,750	$ 8,500	$ 3,216			$ 40,000	$ 3,825	$ 8,800	$ 36,979					$ 30,000	$ 58,000			$ 10,050	$ 7,117	$ 8,810	$ 10,000	$ 22,500
Common stock, shares issued for services, shares	1,000,000	1,000,000	1,800,000	1,000,000			1,000,000						11,000,000		250,000	250,000	100,000	40,000			3,333,333	250,000	2,000,000	5,208,333					4,411,765	5,800,000			300,000	75,000	100,000	100,000	150,000
Related parties [Member]
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount																																		$ 63,000
Issued common stock to related parties for conversion of accrued compensation at fair market value, Shares																																		33,193
Chief Executive Officer [Member]
Extinguishment of notes payable																																							$ 250,000			$ 250,000		$ 250,000
Officers [Member]
Number of options, shares																																							29,887
Option exercise price																																							$ 0.2818
Option, value																																							$ 4,695
Series A Convertible Preferred Stock [Member]
Preferred stock, issued shares																																							50,000,000					50,000,000
Preferred stock, outstanding shares																																							50,000,000					50,000,000
Series A Convertible Preferred Stock [Member] | Hadronic Technologies Press, Inc [Member]
Preferred stock, issued shares																				50,000,000
Common Stock, Value																				$ 500,000
Description of convertible preferred stock																				The Series "A" Convertible Preferred Stock has 15 votes per share and is convertible into 10 shares of our common stock at the election of the shareholder.
Related and non-related parties [Member]
Preferred stock, issued shares																				50,000,000																			4,596,029					50,000,000
Common Stock, Value																																							$ 1,755,435					$ 104,147

XML

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 29, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount			$ 63,000			$ 63,000
Accrued compensation, related parties				$ 315,000		189,000
Accrued interest, related party				46,356		43,349
Notes payable, related parties				$ 285,380		281,380
Interest rate				2.15%
Proceeds from shareholder loans				$ 4,000	$ 27,000
Principal payments on shareholder loans					(25,500)
Chief Executive Officer [Member]
Proceeds from shareholder loans				4,000	27,000
Principal payments on shareholder loans				0	$ 25,500
Extinguishment of notes payable		$ 250,000		250,000		$ 250,000
Related parties [Member]
Issued common stock to related parties for conversion of accrued compensation at fair market value, Amount	$ 63,000
Issued common stock to related parties for conversion of accrued compensation at fair market value, Shares	33,193
Dr. Santilli [Member]
Annual salary				$ 180,000
Common stock option, percentage				0.01%
Contract period				5 years
Carla Santilli [Member]
Annual salary				$ 72,000
Common stock option, percentage				0.005%
Contract period				5 years

XML

SUBSEQUENT EVENTS (Details) - Date 1 [Member]	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares
Date	1/12/18
Shares | shares	10,000
Issuance description	Services
Relationship	Non-related parties
Share Price | $ / shares	$ 3.000
Amount | $	$ 30,000
Subsequent Event [Member]
Date	7/11/19
Shares | shares	200,000
Issuance description	Services
Relationship	Non-related parties
Share Price | $ / shares	$ 0.045
Amount | $	$ 9,000

XML

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Dec. 31, 2018
Common stock, shares issued for services, amount	$ 738,050		$ 81,399	$ 89,834		$ 315,113
Subsequent Event [Member] | Date 1 [Member]
Common stock, shares issued for services, shares					200,000
Common stock, shares issued for services, amount					$ 9,000