0001641751-20-000031.txt : 20201113 0001641751-20-000031.hdr.sgml : 20201113 20201113140552 ACCESSION NUMBER: 0001641751-20-000031 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 65 CONFORMED PERIOD OF REPORT: 20200930 FILED AS OF DATE: 20201113 DATE AS OF CHANGE: 20201113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BrewBilt Manufacturing Inc. CENTRAL INDEX KEY: 0001641751 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SUPPLIES [5047] IRS NUMBER: 470990750 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55787 FILM NUMBER: 201310696 BUSINESS ADDRESS: STREET 1: 110 SPRING HILL ROAD #10 CITY: GRASS VALLEY STATE: CA ZIP: 95945 BUSINESS PHONE: 530-802-5023 MAIL ADDRESS: STREET 1: 110 SPRING HILL ROAD #10 CITY: GRASS VALLEY STATE: CA ZIP: 95945 FORMER COMPANY: FORMER CONFORMED NAME: Vet Online Supply Inc DATE OF NAME CHANGE: 20150507 10-Q 1 form-10q.htm FORM 10Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Mark One

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

For the quarterly period ended September 30, 2020

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

For the transition period from ______ to _______

Commission file number 000-55787

BrewBilt Manufacturing Inc.

(Exact name of registrant as specified in its charter)

(BREWBILT LOGO)

Florida				47-0990750
(State or other jurisdiction of incorporation)				(I.R.S. Employer Identification No.)

110 Spring Hill Road #10
Grass Valley, CA 95945
(Address of principal executive offices)

(530) 802-5023
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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

Yes x No o

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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	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 7(a)(2)(B) of the Securities Act. o

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

Yes o No x

As of November 11, 2020, there were 2,462,792,070 shares of the registrant’s $0.001 par value common stock issued and outstanding.

CONTENTS

		Page
	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosure about Market Risk	24

Item 4.	Controls and Procedures	24

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

Item 3.	Defaults Upon Senior Securities	25

Item 4.	Mine Safety Disclosures	25

Item 5.	Other Information	25

Item 6.	Exhibits	26

	SIGNATURES	27

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements.”. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 210 8-03 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature. Operating results for the nine months ended September 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the financial statements and footnotes thereto included in our company’s Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission on April 14, 2020.

REPORTED IN UNITED STATES DOLLARS

		Page
Balance Sheets (Unaudited)		4
Statements of Operations and Comprehensive Loss (Unaudited)		5
Statements of Shareholders’ Deficit (Unaudited)		6
Statements of Cash Flows (Unaudited)		7
Notes to Financial Statements		8-20

BREWBILT MANUFACTURING INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2020			2019
ASSETS		(unaudited)			(audited)
Current Assets
Cash	$	80,058		$	1,444
Accounts receivable		54,940			323,779
Earnings in excess of billings		191,162			53,038
Inventory		47,151			47,280
Prepaid expenses		883			9,467
Other current assets		—			156
Total current assets		374,194			435,164

Property, plant and equipment, net		85,363			116,202
Right-of-use asset		368,248			392,664
Security deposit		16,980			4,980

TOTAL ASSETS	$	844,785		$	949,010

LIABILITIES
Current Liabilities:
Accounts payable	$	809,192		$	947,655
Accrued interest		79,040			250,592
Accrued liabilities		286,649			62,539
Billings in excess of revenue		478,845			1,511,096
Convertible notes payable, net of discount		75,904			829,384
Derivative liabilities		1,285,625			2,273,269
Liability for unissued shares		175,825			151,325
Promissory notes payable, net of discount		97,298			—
Related party liabilities		142,152			84,072
Total Current Liabilities		3,430,530			6,109,932

Long term debt		279,531			307,887
Operating lease liabilities		368,248			392,664

Total liabilities		4,078,309			6,810,483

Commitments and contingencies		—			—

SHAREHOLDERS’ EQUITY
Preferred stock, Series A: $0.001 par value; 30,000,000 shares authorized		851			400
851,000 shares issued and outstanding at September 30, 2020
400,000 shares issued and outstanding at December 31, 2019
Preferred stock, Series B: $0.001 par value; 1,000 shares authorized		1			1
1,000 shares issued and outstanding at June 30, 2020
1,000 shares issued and outstanding at December 31, 2019
Common stock, $0.001 par value; 10,000,000,000 authorized		1,874,269			10,343
1,874,269,389 shares issued and outstanding at September 30, 2020
10,343,330 shares issued and outstanding at December 31, 2019
Additional paid in capital		(5,641,396	)		(15,240,774	)
Accumulated deficit		532,751			9,368,557
Total Shareholders’ Equity (Deficit)		(3,233,524	)		(5,861,473	)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)	$	844,785		$	949,010

The accompanying notes are an integral part of these financial statements

BREWBILT MANUFACTURING INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
	2020			2019			2020			2019
Sales	$	927,012		$	558,656		$	1,022,499		$	1,409,153
Cost of sales		163,525			453,610			220,795			1,104,451
Gross profit		763,487			105,046			801,704			304,702

Operating expenses:
Consulting fees		17,163			15,000			4,054,413			45,000
G&A expenses		46,293			100,971			221,059			305,153
Professional fees		78,850			—			195,570			7,451
Salaries and wages		70,628			124,248			286,916			404,067
Total operating expenses		212,934			240,219			4,757,958			761,671

Loss from operations		550,553			(135,173	)		(3,956,254	)		(456,969	)

Other income (expense):
Gain (loss) on derivative liability valuation		305,406			—			(2,997,742	)		—
Loss on conversion		(616,357	)		—			(987,447	)		—
Interest expense		(444,846	)		(7,066	)		(887,563	)		(34,029	)
Total other expenses		(755,797	)		(7,066	)		(4,872,752	)		(34,029	)

Net loss before income taxes		(205,244	)		(142,239	)		(8,829,006	)		(490,998	)
Income tax expense		(6,800	)		—			(6,800	)		—
Net loss	$	(212,044	)	$	(142,239	)	$	(8,835,806	)	$	(490,998	)

Per share information
Weighted number of common shares outstanding, basic and diluted		1,359,512,034			—			529,606,195			—
Net loss per common share	$	(0.00016	)	$	—		$	(0.01668	)	$	—

The accompanying notes are an integral part of these financial statements

BREWBILT MANUFACTURING INC.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY (DEFICIT)

For the Three, Six and Nine Months Ended September 30, 2020 and 2019

(Unaudited)

	Preferred Stock						Preferred Stock										Additional						Total
	Series A						Series B				Common Stock						Paid-In			Accumulated			Shareholders’
	Shares			Amount			Shares		Amount		Shares			Amount			Capital			Deficit			Equity
Balance as of December 31, 2019		400,000		$	400			1,000	$	1		10,343,330		$	10,343		$	(15,240,774	)	$	9,368,557		$	(5,861,473	)
Conversion of promissory notes to stock		—			—			—		—		32,260,676			32,261			366,617			—			398,878
Derivative settlements		—			—			—		—		—			—			(50,586	)		—			(50,586	)
Cancellation of stock issued for services		—			—			—		—		(8,008,334	)		(8,008	)		(42,257	)		—			(50,265	)
Preferred stock issued per agreement		500,000			500			—		—		—			—			—			—			500
Net loss		—			—			—		—		—			—			—			(2,136,389	)		(2,136,389	)
Balance as of March 31, 2020		900,000		$	900			1,000	$	1		34,595,672		$	34,596		$	(14,967,000	)	$	7,232,168		$	(7,699,335	)

Conversion of promissory notes to stock		—			—			—		—		259,074,233			259,074			4,421,942			—			4,681,016
Derivative settlements		—			—			—		—		—			—			(1,026,700	)		—			(1,026,700	)
Preferred stock issued for services		400,000			400			—		—		—			—			3,999,600			—			4,000,000
Preferred stock converted to common stock		(185,177	)		(185	)		—		—		232,920,612			232,921			138,355			—			371,091
Net loss		—			—			—		—		—			—			—			(6,487,373	)		(6,487,373	)
Balance as of June 30, 2020		1,114,823		$	1,115			1,000	$	1		526,590,517		$	526,591		$	(7,433,803	)	$	744,795		$	(6,161,301	)

Conversion of promissory notes to stock		—			—			—		—		554,136,908			554,137			2,147,327			—			2,701,464
Derivative settlements		—			—			—		—		—			—			(177,999	)		—			(177,999	)
Preferred stock converted to common stock		(263,823	)		(264	)		—		—		632,339,244			632,339			(15,719	)		—			616,356
Warrant exercise		—			—			—		—		161,202,720			161,202			(161,202	)		—			—
Net loss		—			—			—		—		—			—			—			(212,044	)		(212,044	)
Balance as of September 30, 2020		851,000		$	851			1,000	$	1		1,874,269,389		$	1,874,269		$	(5,641,396	)	$	532,751		$	(3,233,524	)


Balance as of December 31, 2018		—		$	—			—	$	—		—		$	—		$	(303,375	)	$	(722,748	)	$	(1,026,123	)
Capital distributions		—			—			—		—		—			—			(22,296	)		—			(22,296	)
Net loss		—			—			—		—		—			—			—			(262,897	)		(262,897	)
Balance as of March 31, 2019		—		$	—			—	$	—		—		$	—		$	(325,671	)	$	(985,645	)	$	(1,311,316	)

Capital distributions		—			—			—		—		—			—			(26,879	)		—			(26,879	)
Net loss		—			—			—		—		—			—			—			(85,862	)		(85,862	)
Balance as of June 30, 2019		—		$	—			—	$	—		—		$	—		$	(352,550	)	$	(1,071,507	)	$	(1,424,057	)

Capital distributions		—			—			—		—		—			—			(25,268	)		—			(25,268	)
Net loss		—			—			—		—		—			—			—			(142,239	)		(142,239	)
Balance as of September 30, 2019		—		$	—			—	$	—		—		$	—		$	(377,818	)	$	(1,213,746	)	$	(1,591,564	)

The accompanying notes are an integral part of these financial statements

BREWBILT MANUFACTURING INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine months ended
	September 30,
	2020			2019
Cash flows from operating activities:
Net loss	$	(8,835,806	)	$	(490,998	)
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of convertible debt discount		473,587			—
Change in derivative liability		2,997,742			—
Loss on conversion		987,447			—
Common stock issued for services		(25,000	)		—
Preferred stock issued for services		4,000,000			—
Liability for unissued shares due to agreements		25,000			—
Decrease (increase) in operating assets
Accounts receivable		268,839			533,023
Deposits		(12,000	)		—
Earnings in excess of billings		(138,124	)		301,841
Inventory		129			—
Prepaid expenses		8,584			(2,863	)
Other assets		156			2,082
Increase (decrease) in operating liabilities
Accounts payable		(119,728	)		(895	)
Accrued interest		403,736			5,982
Accrued liabilities		224,110			(5,049	)
Earnings in excess of revenues		(1,032,251	)		(228,490	)
Long term debt		(28,356	)		(100,133	)
Net cash (used in) provided by operating activities		(801,935	)		14,500

Cash flows from investing activities
Property, plant and equipment, reductions		30,839			36,363
Net cash (used in) provided by investing activities		30,839			36,363

Cash flows from financing activities:
Contributed capital		—			(74,443	)
Proceeds from convertible debt		698,540			—
Proceeds from promissory notes		93,090			—
Related party liabilities		58,080			—
Net cash (used in) provided for financing activities		849,710			(74,443	)

Net increase (decrease) in cash		78,614			(23,580	)

Cash, beginning of period		1,444			43,285
Cash, end of period	$	80,058		$	19,705

Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	—		$	—
Cash paid for interest	$	—		$	34,029

Schedule of non-cash investing & financing activities
Lease adoption recognition	$	—		$	423,360

The accompanying notes are an integral part of these financial statements

BREWBILT MANUFACTURING INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

September 30, 2020

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Description of Business

Located in Grass Valley, CA, BrewBilt is one of the only California companies that custom designs, hand crafts, and integrates processing, fermentation and distillation processing systems for the craft beer, cannabis and hemp industries using “Best in Class” American made components integrated with stainless steel processing vessels using only American made steel. Founded in 2014, the company began in a backyard shop by Jeff Lewis with a vision of creating a profitable company in “Rural America” by hiring excellent personnel, designing and fabricating products to exceed customer’s expectations and compensating craftsmen with living wages and profit sharing to financially sustain their families within the community. Mr. Lewis has 15+ years of experience as a craft beer brewer, a custom tank/vessel designer, fabrication and integration expert and business owner who initially founded Portland Kettle Works, a nationally recognized manufacturer of craft beer brewing equipment located in the Northwest.

BrewBilt has been built by having strong relationships with local suppliers of raw materials, equipment and services in California, an aggressive referral network of satisfied customers nationwide, and an Advisory Board consisting of successful business leaders that provide valuable product feedback and business expertise to management. The craft brewing & spirits industries continue to grow worldwide. California is where craft brewing began and now has over 900 operating breweries – being centrally located in this booming market was a large draw for BrewBilt to locate its manufacturing facility in the Sierra foothills.

All BrewBilt products are designed and fabricated as “food grade” quality which enables the company to build vessels for food & beverage processing , the company is now building systems that are pharmaceutical grade for clients involved in distillation for the cannabis and hemp industries, thus making the revenue potential much greater. BrewBilt buys materials and components mostly from California suppliers which enables them to closely monitor quality, while the company’s revenues are generated from sales to customers throughout the country. The company is aggressively pursuing international orders and has held meetings with the Center for International Trade Development and U.S. Commercial Service to develop international opportunities. Presently, a great deal of sales interest in coming from Mexico, Japan, Europe, and Australia.

BrewBilt competes against a number of companies, most of which are selling mass produced equipment from China made from less costly inferior quality Chinese steel which often is neither food nor pharmaceutical grade quality. While this broader market is very competitive, there continues to be little competition and strong market demand for higher quality, custom designed, hand crafted and integrated systems that BrewBilt produces.

In July of 2016, BrewBilt moved from the small facility in Nevada City, CA to lease an eight thousand (8,000) square foot manufacturing facility in Grass Valley, CA. This facility was purchased by BrewBilt in January 2018 and upgraded with substantial tenant improvements. BrewBilt is prepared to expand again by leasing an additional seventy-six hundred (7,600) square feet in the same facility. BrewBilt obtains the majority of its leads through customer referrals and from online marketplaces. The company’s website is being expanded for online sales to include online educational/marketing videos that feature the company and its expanded integrated product line for the cannabis and hemp industries. BrewBilt has also created distribution sales agreements with individuals and companies to represent BrewBilt in both the domestic and international markets.

The former company, Vet Online Supply Inc, a Florida corporation, was incorporated on May 31, 2014. Vet Online Supply Inc. manufactured and distributed wholistic CBD based pet products. On November 22, 2019, Vet Online Supply and Brewbilt Manufacturing (“BrewBilt”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) and completed a merger, whereby Brewbilt merged with and into Vet Online Supply, with BrewBilt remaining as the surviving entity (the “Merger”). Under U.S. generally accepted accounting principles, the merger is treated as a “reverse merger” under the purchase method of accounting, with BrewBilt as the accounting acquirer.

On January 21, 2020, the Company filed Articles of Amendment to change its name to “BrewBilt Manufacturing Inc.

The Company’s common stock will continue to trade on the OTCQB Market under the new Symbol “BBRW,” and the CUSIP number for the Company’s common stock is now 10756L108. Outstanding stock certificates for shares of the Company are not affected by the name change, and they continue to be valid and need not be exchanged.

Financial Statement Presentation

The audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Fiscal year end

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

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates.

Cash Equivalents

The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents.

Revenue Recognition and Related Allowances

The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue and related cost of sales until all conditions are met. As of September 30, 2020 and December 31, 2019, the Company has deferred $478,845 and $1,511,096, respectively, in revenue, and $191,162 and $53,038 in cost of sales, respectively, related to customer orders in progress. These amounts are recorded as billings in excess of revenues and earnings in excess of billings in the accompanying balance sheets.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Bad debts and allowances are provided based on historical experience and management’s evaluation of outstanding accounts receivable. Management evaluates past due or delinquency of accounts receivable based on the open invoices aged on due date basis. The allowance for doubtful accounts at September 30, 2020 and December 31, 2019 is $0.

Inventories

Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of raw stainless steel, raw stainless tubing, motors, pumps, and fittings, are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value.

In addition, the Company is a manufacturer of premium CBD infused holistic pet products and as such will maintain inventory on site. The company directly drop ships to customers when ordered. The Company has wholesale distributors that purchase products in bulk inventory.

Goodwill

The excess of the cost over the fair value of net assets of acquired in the Merger is recorded as goodwill. Goodwill is not subject to amortization, but is reviewed for impairment annually, or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. An impairment charge would be recorded to the extent the carrying value of goodwill exceeds its estimated fair value. The testing of goodwill under established guidelines for impairment requires significant use of judgment and assumptions. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. At December 31, 2019, the Company reviewed the goodwill recorded in the Merger and determined that an impairment expense of $2,289,884 was required.

Warranty

The Company is a manufacturer of products which are shipped to our customers directly from the Company. For products that are made from raw materials, the Company offers a 6-year limited warranty. The parts provided by outside vendors as finished goods that are added to a system produced by the Company as components, have a manufacturers’ warranty that is passed on to the end user of the complete system. To date, BrewBilt has spent less than $5,000 over the past 5 years for repairs (under warranty) on products they have built, with most of the costs going to cover travel and lodging expenses. As of September 30, 2020 and December 31, 2019, the Company has recorded a liability of $5,000 and $5,000, respectively, for warranties, which is included in accrued liabilities in the accompanying balance sheet.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses are carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the fiscal year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.

In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs is expanded. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels and which is determined by the lowest level input that is significant to the fair value measurement in its entirety.

These levels are:

Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

Financial assets and liabilities measured at fair value on a recurring basis:

	Input	September 30, 2020		December 31, 2019
	Level	Fair Value		Fair Value
Derivative Liability	3	$	1,285,625	$	2,273,269
Total Financial Liabilities		$	1,285,625	$	2,273,269

In management’s opinion, the fair value of convertible notes payable and advances payable is approximate to carrying value as the interest rates and other features of these instruments approximate those obtainable for similar instruments in the current market. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments. As September 30, 2020 and December 31, 2019, the balances reported for cash, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, approximate the fair value because of their short maturities.

Income Taxes

The Company records deferred taxes in accordance with FASB ASC No. 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and loss carryforwards 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 of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.

As of the date of this filing, the Company is current in filing their tax returns. The last return filed by the Company was December 31, 2019, and the Company has not accrued any potential penalties or interest from that period forward.

Basic and Diluted Loss Per Share

In accordance with ASC Topic 280 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaces existing revenue recognition guidance. The updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard on January 1, 2018, using a modified retrospective approach, with the cumulative effect of initially applying the standard recognized in retained earnings at the date of adoption.

In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted the new lease guidance effective January 1, 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted the standard in the first quarter of fiscal 2020 and there was no material impact.

NOTE 2 – GOING CONCERN

The Company has experienced net losses to date, and it has not generated sufficient revenue from operations to meet our operational overhead. We will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about our ability to continue as a going concern. Management of the Company is preparing a strategy to meet operational shortfalls which may include equity funding, short term or long-term financing or debt financing, to enable the Company to reach profitable operations. Historically, the Company’s sole officer and director has provided short term loans to meet working capital shortfalls. We have recently entered into financing agreements with various third parties to meet our capital needs in fiscal 2020.

The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

NOTE 3 – MERGER TRANSACTION

On November 22, 2019, Vet Online Supply and Brewbilt Manufacturing (“BrewBilt”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) and completed a merger, whereby Brewbilt merged with and into Vet Online Supply, with BrewBilt remaining as the surviving entity (the “Merger”). Under U.S. generally accepted accounting principles, the merger is treated as a “reverse merger” under the purchase method of accounting, with BrewBilt as the accounting acquirer.

Pursuant with the Merger Asset Purchase Agreement, the Board of Directors has authorized that BrewBilt shall sell, assign and transfer all of its right, title and interest to its IP, fixed assets and “know how” to the Company (collectively, the “Seller’s Assets”). Vet Online Supply and BrewBilt mutually agree that BrewBilt will assign certain assets and provide the “Know-How” regarding the designing and building of the finest craft brewing equipment in the industry today. As consideration for the IP, fixed assets and the “Know -How”, the Company shall issue, or cause to be issued, $5,000,000 worth of Preferred Series A Stock (PAR $.001) within thirty (30) days from the date of the agreement. The number of Preferred Series A shares to be issued is 500,000 shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for VTNL. BrewBilt has designated that the said stock be issued in the name of its President, Jeffrey Lewis.

The Board of Directors dismissed Daniel Rushford as an officer and director, specifically as the Chief Executive Officer, Chairman of the Board, and Corporate (President) of the Company effective November 22, 2019. Effective November 22, 2019, Daniel Rushford will have a new revised Employment Agreement which appoints him as Manager of the CBD Pet Supply Division, a non-director/officer position which includes returning to Treasury 1,000 Preferred Series B Control Shares, and an annual salary of $36,000. Unpaid wages will accrue interest at 6% per annum and may be converted to restricted common stock at fair market value at the time of conversion.

NOTE 4 – PREPAID EXPENSES

Prepaid fees represent amounts paid in advance for future contractual benefits to be received. Contracting expenses paid in advance are recorded as a prepaid asset and then amortized to the statements of operations when services are rendered, or over the life of the contract using the straight-line method.

As of September 30, 2020, the Company accrued prepaid insurance expenses of $883 and as of December 31, 2019, the Company accrued prepaid insurance expenses and employee wages of $9,467.

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at September 30, 2020 and December 31, 2019:

	September 30,			December 31,
	2020			2019
Computer Equipment	$	18,313		$	18,313
Leasehold Improvements		48,549			48,549
Machinery		250,762			250,762
Vehicles		6,717			6,717
Total		324,341			324,341
Less accumulated depreciation		(238,978	)		(208,139	)

Net	$	85,363		$	116,202

NOTE 6 – LEASES

The Company adopted the new lease guidance effective January 1, 2019 using the modified retrospective transition approach, applying the new standard to all of its leases existing at the date of initial application which is the effective date of adoption. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. We elected the package of practical expedients which permits us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. We did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. The adoption of the lease standard did not change our previously reported consolidated statements of operations and did not result in a cumulative catch-up adjustment to opening equity. The adoption of the new guidance resulted in the recognition of ROU assets of $423,360 and lease liabilities of $423,360.

The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In calculating the present value of the lease payments, the Company elected to utilize its incremental borrowing rate based on the remaining lease terms as of the January 1, 2019 adoption date.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred, if any. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our lease has a remaining lease term of nine years.

The Company has elected the practical expedient to combine lease and non-lease components as a single component. The lease expense is recognized over the expected term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, current operating lease liabilities and non-current operating lease liabilities.

The new standard also provides practical expedients and certain exemptions for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases where the initial lease term is one year or less or for which the ROU asset at inception is deemed immaterial, we will not recognize ROU assets or lease liabilities. Those leases are expensed on a straight-line basis over the term of the lease.

Operating Leases

On January 1, 2018, the Company entered into a standard office lease for approximately 8,000 square feet of space, located in the Wolf Creek Industrial Building at 110 Spring Hill Dr. #10 Grass Valley, CA 95945. The lease has a term of 10 years, from January 1, 2018 through January 1, 2028, with a monthly rent of $4,861.

ROU assets and lease liabilities related to our operating lease is as follows:

	September 30,		December 31,
	2020		2019
Right-of-use assets	$	368,248	$	392,664
Current lease liabilities		—		—
Non-current lease liabilities	$	368,248	$	392,664

NOTE 7 – ACCURED LIABILITIES

As of September 30, 2020 and December 31, 2019, accrued liabilities were comprised of the following:

	September 30,			December 31,
	2020			2019
Accrued liabilities
Accrued wages	$	125,569		$	5,784
Credit card		19,893			16,659
Customer deposits		103,550			—
Payroll liabilities		(103	)		(644	)
Sales tax payable		32,740			35,740
Warranty		5,000			5,000
Total accrued expenses	$	286,649		$	62,539

NOTE 8 – BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS

Billings in excess of revenue is related to contracted amounts that have been invoiced to customers for which remaining performance obligations must be completed before the Company can recognize the revenue. Earnings in excess of billings is related to the cost of sales associated with the customer products that are incomplete.

Changes in unearned revenue for the periods ended September 30, 2020 and December 31, 2019 were as follows:

	September 30,			December 31,
	2020			2019
Unearned revenue, beginning of the period	$	1,511,096		$	1,905,346
Billings in excess of revenue during the period		316,347			536,420
Recognition of unearned revenue in prior periods		(1,348,598	)		(930,670	)
Unearned revenue, end of the period	$	478,845		$	1,511,096

As of September 30, 2020 and December 31, 2019, the Company has recorded $191,162 and $53,038, respectively in earnings in excess of billings for the cost of sales related to customer orders in progress.

NOTE 9 – CONVERTIBLE NOTES PAYABLE

As of September 30, 2020 and December 31, 2019, notes payable were comprised of the following:

	Original		Original	Due	Interest	Conversion	September 30,			December 31,
	Note Amount		Note Date	Date	Rate	Rate	2020			2019
APG Capital #2		31,500	6/25/2018	6/25/2019	12%	Variable		—			31,500
Auctus Fund #2		84,000	1/10/2018	10/10/2018	24%	Variable		—			31,285
Auctus Fund #3		175,000	2/6/2018	11/6/2018	24%	Variable		—			175,000
Auctus Fund #4		90,000	3/6/2018	12/6/2018	24%	Variable		—			90,000
Auctus Fund #5		100,000	6/14/2018	3/14/2019	24%	Variable		—			100,000
Auctus Fund #6		75,000	8/13/2018	5/13/2019	12%	Variable		—			75,000
Auctus Fund #7		25,000	10/11/2018	7/11/2019	12%	Variable		—			25,000
Auctus Fund #8		25,750	12/20/2018	9/20/2019	12%	Variable		—			25,750
Auctus Fund #9		57,000	4/12/2019	1/12/2020	12%	Variable		—			57,000
Auctus Fund #10		31,000	7/22/2020	7/22/2020	12%	Variable		—			31,000
Auctus Fund #11		113,000	8/19/2020	8/19/2021	12%	Variable		113,000			—
CBP #3		30,000	5/1/2020	5/1/2021	10%	Variable		30,000			—
CBP #4		30,000	7/23/2020	7/23/2021	10%	Variable		30,000			—
EMA Financial #2		50,000	12/15/2017	12/15/2018	12%	Variable		—			8,474
EMA Financial #3		100,000	3/5/2018	3/5/2019	24%	Variable		—			73,305
EMA Financial #4		25,000	10/10/2018	7/10/2019	24%	Variable		—			25,000
EMA Financial #6		80,500	8/17/2020	5/17/2021	12%	Variable		80,500			—
Emerging Corp Cap #1		83,333	2/12/2018	2/11/2019	22%	Variable		34,857			74,933
Emerging Corp Cap #2		110,000	10/31/2018	10/31/2019	12%	Variable		110,000			110,000
Optempus #1		25,000	7/2/2020	7/2/2021	10%	Variable		25,000			—
Optempus #2		25,000	7/7/2020	7/2/2021	10%	Variable		25,000			—
Power Up Lending #11		73,000	4/6/2020	4/6/321	10%	Variable		73,000			—
Power Up Lending #12		53,000	5/4/2020	5/4/2021	10%	Variable		53,000			—
Power Up Lending #13		63,000	6/3/2020	6/3/2021	10%	Variable		63,000			—
Power Up Lending #14		43,000	7/30/2020	7/30/2021	10%	Variable		43,000			—
Power Up Lending #15		53,000	9/21/2020	9/21/2021	10%	Variable		53,000			—
Tri-Bridge #1		15,000	5/26/2020	5/26/2021	10%	Variable		15,000			—
Tri-Bridge #2		25,000	7/24/2020	7/24/2021	10%	Variable		25,000			—
							$	773,357		$	933,247
Debt discount								(642,097	)		(100,137	)
Financing costs/Original issue discount								(55,356	)		(3,726	)
Notes payable, net of discount							$	75,904		$	829,384

During the nine months ending September 30, 2020, the Company received proceeds from new convertible notes of $698,540, and reclassified accounts payable of $44,000 into convertible notes payable. The Company recorded no payments on their convertible notes, default penalties of $194,920, and conversions of $1,184,909 of convertible note principal. The Company recorded loan fees on new convertible notes of $87,460, which increased the debt discounts recorded on the convertible notes during the nine months ending September 30, 2020. All of the Company’s convertible notes have a conversion rate that is variable, and therefore, the Company has accounted for their conversion features as derivative instruments (see Note 10). The Company also recorded amortization of $473,587 on their convertible note debt discounts and loan fees. As of September 30, 2020, the convertible notes payable are convertible into 384,712,480 Convert to stock split shares of the Company’s common stock.

During the nine months ended September 30, 2020, the Company recorded interest expense of $155,252 on its convertible notes payable. During the nine months ended September 30, 2020, the Company recorded conversions of $341,092 of convertible note interest and $39,275 in conversion fees. As of September 30, 2020, the accrued interest balance was $54,868.

As of September 30, 2020, we have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities.

NOTE 10 – DERIVATIVE LIABILITIES

The following table represents the Company’s derivative liability activity for the embedded conversion features for convertible notes and warrants for the period ending September 30, 2020 and December 31, 2019:

	September 30,			December 31,
	2020			2019
Balance, beginning of period	$	2,273,269		$	15,347,154
Initial recognition of derivative liability		3,675,034			—
Conversion of derivative instruments to Common Stock		(4,960,896	)		(5,077	)
Mark-to-Market adjustment to fair value		298,218			(13,068,808	)
Balance, end of period	$	1,285,625		$	2,273,269

During the period ended September 30, 2020 and December 31, 2019, the Company recorded derivative liabilities for embedded conversion features related to convertible notes payable and warrants of $3,675,034 and $0, respectively.

During the period ended September 30, 2020 and December 31, 2019, in conjunction with convertible notes payable principal and accrued interest being converted into common stock of the Company and cashless exercise of warrants, derivative liabilities were reduced by $4,960,896 and $5,077, respectively.

For the period ended September 30, 2020 and December 31, 2019, the Company performed a final mark-to-market adjustment for the derivative liability related to the convertible notes and warrants, and the carrying amount of the derivative liability related to the conversion feature, and recognized a loss of $298,218 and a gain on the derivative liability valuation of $13,068,808, respectively.

The Company uses the Black-Scholes option pricing model to estimate fair value for those instruments convertible into common shares at inception, at conversion or extinguishment date, and at each reporting date. During the nine months ended September 30, 2020, the company used the following assumptions in their Black-Scholes model: (1) risk free interest rate .08% - .37%, (2) term of 0.12 years – 4.89 years, (3) expected stock volatility of 169.67% - 1,563.40%, (4) expected dividend rate of 0%, (5) common stock price of $0.001 - $0.03, and (6) exercise price of $0.0008 - $0.03.

These instruments were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability, or any net investment in a foreign operation. The instruments do not qualify for hedge accounting, and as such, all future changes in the fair value will be recognized in earnings until such time as the instruments are exercised, converted, or expire.

NOTE 11 – RELATED PARTY TRANSACTIONS

Mr. Jef Lewis, Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer

On November 22, 2019, the Company appointed Jeffrey Lewis as the new Chief Executive Officer, Chairman of the Board, Corporate President, Secretary, and Treasurer of the Company. The Company and Mr. Lewis entered into an Employee Agreement that included the issuance of 1,000 Preferred Series B Control Shares, and an annual salary of $200,000. Unpaid wages will accrue interest at 6% per annum and may be converted to restricted common stock at fair market value at the time of conversion. During the nine months ended September 30, 2020, the Company accrued wages of $150,000, interest of $3,126 and made payments of $55,509.

Pursuant to the Merger Agreement, Mr. Lewis is to receive 500,000 shares of Preferred Series A shares, valued at $5,000,000. The shares are convertible pursuant the conversion rights as specified in the Articles of Incorporation and Certificate of Designation for the Company. As of December 31, 2019, the shares had not been issued, and the Company recorded a liability for unissued shares in the amount of $500, goodwill of $2,289,884 and $2,289,334 to additional paid in capital. During the nine months ended September 30, 2020, the Company issued 500,000 shares of Preferred Series A to Mr. Lewis and $500 was reclassed from liabilities for unissued shares to equity.

The Company is periodically advanced noninterest bearing operating funds from related parties. The advances are due on demand and unsecured. During the nine months ended September 30, 2020, the Company made payments of $27,500 to amounts due to Mr. Lewis and $22,838 was advanced to the Company by Mr. Lewis. As of September 30, 2019 and December 31, 2018, the Company owed Mr. Lewis $1,143 and $5,805, respectively for advances to the Company.

Mr. Samuel Berry, Director

On November 22, 2019, the Company entered into a Consulting Agreement with Mr. Samuel Berry. Mr. Berry will receive an annual salary of $50,000, payable in quarterly installments at $12,500 per quarter. During the nine months ended September 30, 2020, the Company accrued $37,500 in consulting fees in connection to his agreement.

Mr. Daniel Rushford, former President

During the nine months ended September 30, 2020, the Company’s former President cancelled 8,008,334 shares of common stock issued to settle debt of $25,265 and $25,000 in stock based compensation pursuant to an employee agreement. The cancellation resulted in a liability of unissued shares of $25,000 and an increase in related party liabilities of $25,265.

NOTE 12 – LONG TERM DEBT

As of September 30, 2020 and December 31, 2019, long term debt was comprised of the following:

	September 30,		December 31,
	2020		2019
Long term debt
Equipment lease	$	—	$	1,952
Equipment loan		115,614		115,614
Line of credit		102,329		96,664
Other loans		61,588		93,657
Total long term debt	$	279,531	$	307,887

Paycheck Protection Program Loan

On May 11, 2020, the Company was granted a loan (the “Loan”) from BSD Capital, LLC dba Lendistry, in the amount of $61,558, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

The Loan, which was in the form of a Note dated May 11, 2020, issued by the Borrower, matures on May 11, 2022, and bears interest at a rate of 1% per annum, payable monthly commencing on November 11, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations. The Company intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act.

NOTE 13 – PREFERRED STOCK

On March 28, 2017, the Company filed an amendment to its articles of incorporation designating 20,000 shares of its authorized preferred stock, par value $0.001 as Series B Voting Preferred Stock. The Series B Voting Preferred Stock shall have the right to vote the shares on any matter requiring shareholder approval on the basis of 4 times the votes of all the issued and outstanding shares of common stock, as well as any issued and outstanding preferred stock.

On July 1, 2019, the Company filed a Certificate of Amendment to increase the number of authorized Series A Preferred Stock to 30,000,000, with a par value of $0.001. Each share of Preferred Series A Stock shall have a value of $10 per share and will convert into common stock at the closing price of the common stock on the date of conversion. The Series A stock shall have no voting rights on corporate matters, unless and until the Series A shares are converted into Common Shares, at which time they will have the same voting rights as all Common Shareholders have; their consent shall not be required for taking any corporate action.

Pursuant to the Merger Agreement dated November 22, 2019, the Company will issue $5,000,000 worth of Preferred Series A Stock to Mr. Lewis. The number of Preferred Series A shares to be issued is 500,000 shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and Certificate of Designation for the Company. As of December 31, 2019, the shares had not been issued, and the Company recorded a liability for unissued shares in the amount of $500, goodwill of $2,289,884 and $2,289,334 to additional paid in capital.

On April 6, 2020, the Company executed an addendum to the Distribution & Licensing Agreement dated November 19, 2019, with Bgreen Partners, Inc. The Company issued 400,000 Preferred Series A shares at a price of $10.00 per share convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for the Company.

During the nine months ended September 30, 2020, 449,000 shares of Series A Preferred stock were converted to 865,259,856 common shares in accordance with the conversion terms. The issuances resulted in a loss on conversion of $987,447 which was recorded to the statement of operations.

During the nine months ended September 30, 2020, 500,000 shares of Preferred Series A Shares were issued pursuant to the Merger Agreement, and a $500 liability for unissued shares was reclassed to equity.

As of September 30, 2020, 30,000,000 Series A Preferred shares and 1,000 Series B Preferred shares were authorized, of which 851,000 Series A shares were issued and outstanding, and 1,000 Series B shares were issued and outstanding.

NOTE 14 – COMMON STOCK

On April 22, 2019, the Company approved the authorization of a 1 for 3,000 reverse stock split of the Company’s outstanding shares of common stock. The Company’s financial statements have been retroactively adjusted for this stock split for all periods presented.

During the year ended December 31, 2019, the holder of a convertible note converted $1,148 of accrued interest and $500 in conversion fees into 400,000 shares of common stock. The common stock was valued at $5,077 based on the market price of the Company’s stock on the date of conversion.

On March 25, 2020, the Company filed a Certificate of Amendment to increase the number of authorized common shares from 5,000,000,000 to 10,000,000,000 with a par value of $0.001.

During the nine months ended September 30, 2020, the holders of a convertible notes converted $1,184,809 of principal, $341,092 of accrued interest and $39,275 in conversion fees into 897,520,532 shares of common stock. The common stock was valued at $4,823,926 based on the market price of the Company’s stock on the date of conversion.

As of September 30, 2020, 10,000,000,000 were authorized, of which 1,874,269,389 shares are issued and outstanding.

Warrants

We account for common stock purchase warrants as derivative liabilities and debt issuance costs on the balance sheet at fair value, and changes in fair value during the periods presented in the statement of operations, which is revalued at each balance sheet date subsequent to the initial issuance of the warrant.

During the nine months ended September 30, 2020, warrant holders exercised the warrants and the Company issued 161,202,720 shares of common stock through a cashless exercise of the warrants in accordance with the conversion terms.

NOTE 15 – INCOME TAX

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

The deferred tax asset and the valuation allowance consist of the following at September 30, 2020:

	September 30,
	2020
Net operating loss	$	3,509,865
Statutory rate		21	%
Expected tax recovery		737,072
Change in valuation allowance		(737,072	)
Income tax provision	$	—

Components of deferred tax asset:
Non-capital tax loss carry-forwards		737,072
Less: valuation allowance		(737,072	)
Net deferred tax asset	$	—

NOTE 16 – COMMITMENTS AND CONTINGENCIES

Distribution & Licensing Agreement

On November 19, 2019, the Company entered into a Distribution & Licensing Agreement with Bgreen Partners, Inc., a California Corporation. The Agreement provides exclusive rights to various cannabis and agricultural products inclusive of grow-containers and CBD Extraction Systems to be used for mobile processing. The IP and rights are valued at $4,000,000, based upon a five-year term. As consideration for the IP and rights, the Company issued 400,000 Preferred Series A shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for the Company.

Employee Agreement

On November 22, 2019, the Company entered into an Employment Agreement with Mr. Daniel Rushford. Mr. Rushford will receive an annual salary of $36,000 to be paid in equal monthly installments. Unpaid amounts will accrue annual interest of 6%. The term of the Agreement is for one year and is renewable upon mutual consent.

Lease

Service Agreement

On June 12, 2018, the Company entered into a preventative maintenance service agreement with Atlas Copco Compressions LLC. The agreement is for a period of 5 years, at a cost of $145.13 per month.

NOTE 17 – SUBSEQUENT EVENTS

Convertible Notes

On October 14, 2020, the Company entered in a Convertible Promissory Note in the amount of $43,000. The note is unsecured, bears interest at 10% per annum, and matures on October 14, 2021.

On October 21, 2020, the Company entered in a Convertible Promissory Note in the amount of $50,000. The note is unsecured, bears interest at 12% per annum, and matures on July 21, 2021.

Subsequent Issuances

On October 1, 2020, 40,000 shares of Preferred Series A stock was converted in to 105,263,158 shares of common stock.

On October 6, 2020, 17,640 shares of Preferred Series A stock was converted in to 88,200,000 shares of common stock.

On October 13, 2020, the holder of a convertible note converted a total of $30,000 of principal into 14,285,714 shares of our common stock.

On October 13, 2020, the holder of a convertible note converted a total of $32,000 of principal into 15,238,095 shares of our common stock.

On October 14, 2020, the holder of a convertible note converted a total of $14,650 of principal and interest into 6,976,190 shares of our common stock.

On October 27, 2020, 9,000 shares of Preferred Series A stock was converted in to 40,000,000 shares of common stock.

On October 27, 2020, 21,600 shares of Preferred Series A stock was converted in to 90,000,000 shares of common stock.

On October 27, 2020, 25,000 shares of Preferred Series A stock was converted in to 100,000,000 shares of common stock.

On October 28, 2020, 13,500 shares of Preferred Series A stock was converted in to 90,000,000 shares of common stock.

On November 5, 2020, the holder of a convertible note converted a total of $25,000 of principal into 16,666,667 shares of our common stock.

On November 6, 2020, the holder of a convertible note converted a total of $30,650 of principal and interest into 21,892,857 shares of our common stock.

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

The following discussion and analysis summarizes the significant factors affecting our consolidated results of operations, financial condition and liquidity position for the nine months ended September 30, 2020. This discussion and analysis should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for our year-ended December 31, 2019 and the consolidated unaudited financial statements and related notes included elsewhere in this filing. The following discussion and analysis contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements relating to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “intends”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our or our industry’s actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results, later events, or circumstances or to reflect the occurrence of unanticipated events.

In this report unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares of our capital stock.

The management’s discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

As used in this quarterly report, the terms “we”, “us”, “our”, and “our company” means BrewBilt Manufacturing, Inc., unless otherwise indicated.

RESULTS OF OPERATIONS

Results for the Three Months Ended September 30, 2020 Compared to the Three Months Ended September 30, 2019

Revenues:

The Company’s revenues were $927,012 for the three months ended September 30, 2020 compared to $558,656 for the three months ended September 30, 2019. The increase is due to a back-up on projects while the office was short staffed due to COVID-19. The Company saw an increase in customer orders completed and delivered during the third quarter.

Cost of Sales:

The Company’s cost of materials was $163,525 for the three months ended September 30, 2020, compared to $453,610 for the three months ended September 30, 2019. The decrease was due to the company implementing a reformatted costing structure, thereby decreasing expenses, and increasing profitability.

Operating Expenses:

Operating expenses consisted primarily of consulting fees, professional fees, salaries and wages, office expenses and fees associated with preparing reports and SEC filings relating to being a public company. Operating expenses for the three months ended September 30, 2020, and September 30, 2019, were $212,934 and $240,219, respectively. The decrease was primarily attributable to a decrease in wages and office expenses.

Other Income (Expense):

Other income (expense) for the three months ended September 30, 2020 and 2019 was $(765,265) and $(7,066), respectively. Other income (expense) consisted of losses on derivative valuation, and interest expense. The loss on derivative valuation is directly attributable to the change in fair value of the derivative liability. Interest expense is primarily attributable the initial interest expense associated with the valuation of derivative instruments at issuance and the accretion of the convertible debentures over their respective terms. The variance primarily resulted from the fluctuation of the Company’s stock price which impacted the valuation of the derivative liabilities on the convertible debt and a loss on conversion of Preferred Series A stock to common stock.

Net Loss:

Net loss for the three months ended September 30, 2020 was $221,512 compared with $142,239 for the three months ended September 30, 2019. The increased loss can be explained by and increase in interest expenses and a loss on conversion of Preferred Series A stock to common stock.

Results for the Nine months Ended September 30, 2020 Compared to the Nine months Ended September 30, 2019

Revenues:

The Company’s revenues were $1,022,499 for the nine months ended September 30, 2020 compared to $1,409,153 for the nine months ended September 30, 2019. The decrease is due to the office closing due to COVID-19 and fewer projects were completed.

Cost of Sales:

The Company’s cost of materials was $220,795 for the nine months ended September 30, 2020, compared to $1,104,451 for the nine months ended September 30, 2019. The decrease was due to the company implementing a reformatted costing structure, thereby decreasing expenses, and increasing profitability.

Operating Expenses:

Operating expenses consisted primarily of consulting fees, professional fees, salaries and wages, office expenses and fees associated with preparing reports and SEC filings relating to being a public company. Operating expenses for the nine months ended September 30, 2020, and September 30, 2019, were $4,757,958 and $761,671, respectively. The increase was primarily attributable to an increase in share-based compensation of $4,000,000.

Other Income (Expense):

Other income (expense) for the nine months ended September 30, 2020 and 2019 was $(4,882,220) and $(34,029), respectively. Other income (expense) consisted of losses on derivative valuation, and interest expense. The loss on derivative valuation is directly attributable to the change in fair value of the derivative liability. Interest expense is primarily attributable the initial interest expense associated with the valuation of derivative instruments at issuance and the accretion of the convertible debentures over their respective terms. The variance primarily resulted from the fluctuation of the Company’s stock price which impacted the valuation of the derivative liabilities on the convertible debt and a loss on conversion of Preferred Series A stock to common stock.

Net Loss:

Net loss for the nine months ended September 30, 2020 was $8,845,274 compared with $490,998 for the nine months ended September 30, 2019. The increased loss can be explained by the loss in fair value of the derivative instruments, a loss on conversion of Preferred Series A stock to common stock, and in increase in interest expenses during the nine months ended September 30, 2020.

Impact of Inflation

We believe that the rate of inflation has had a negligible effect on our operations.

Liquidity and Capital Resources

	September 30, 2020			December 31, 2019
	$			$
Current Assets		374,194			435,164
Current Liabilities		3,430,530			6,109,932
Working Capital (Deficit)		(3,056,336	)		(5,674,768	)

As of September 30, 2020, the Company had $80,058 and $844,785 in cash and total assets, as well as $4,087,309 in total liabilities as compared to $1,444 and $949,010 in cash and total assets, and $6,810,483 in total liabilities as of December 31, 2019. The increase in working capital is due to an increase in revenue recognized and a decrease in convertible notes payable, due to principal and interest converted during the nine months ended September 30, 2020.

The Company requires additional capital to fully execute its marketing program and increase revenues. There can be no assurance that continued funding will be available on satisfactory terms. We intend to raise additional capital through the sale of equity, loans, or other short-term financing options.

	September 30, 2020 $			September 30, 2019 $
Cash Flows from (used in) Operating Activities		(801,835	)		14,500
Cash Flows from (used in) Investing Activities		30,839			36,363
Cash Flows from (used in) Financing Activities		849,710			(74,443	)
Net Increase (decrease) in Cash During Period		78,614			(23,580	)

During the nine months ended September 30, 2020, cash from (used in) operating activities was $(801,835) compared to $14,500 for the nine months ended September 30, 2019. The variance is primarily resulted from the derivative liability fair value fluctuation and share based compensation.

During the nine months ended September 30, 2020 cash from investing activities was $30,839 compared to $36,363 for the nine months ended September 30, 2019. The decrease in cash from investing activity is due to the depreciation of fixed assets.

During the nine months ended September 30, 2020 cash from (used in) financing activities was $78,614 compared to $(23,580) for the nine months ended September 30, 2019. The increase in cash from financing activity primarily resulted from an increase in the proceeds from convertible debt during the nine months ended September 30, 2020.

Contractual Obligations

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.

Off-Balance Sheet Arrangements

We have 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 are material to stockholders.

Critical Accounting Policies and Estimates

The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments which are based on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of their evaluation form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions and circumstances. Our significant accounting policies are more fully discussed in the Notes to our Financial Statements, included herein.

Recent Accounting Pronouncements

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our president and chief financial officer (our principal executive officer, principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

As of the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president and chief financial officer (our principal executive officer, principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president and chief financial officer (our principal executive officer, principal financial officer, and principal accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report. Our company is in the process of adopting specific internal control mechanisms to ensure effectiveness as we grow, and we will work to retain additional qualified individuals to ensure a proper segregation of duties. We have engaged an outside consultant to assist in adopting new measures to improve upon our internal controls. Future controls, among other things, will include more checks and balances and communication strategies between the management and the board, once we are able to secure additional board members, to ensure efficient and effective oversight over company activities as well as more stringent accounting policies to track and update our financial reporting.

Changes in Internal Control over Financial Reporting

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

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers, or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our company.

ITEM 1A. RISK FACTORS

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

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Quarterly Issuances

In respect of the aforementioned convertible loan agreement(s) and the underlying shares, as well as shares issued to a director and consultant, the Company will claim an exemption from the registration requirements of the Securities Act of 1933, as amended, for the issuance of the shares pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated thereunder since, among other things, the transaction does not involve a public offering, the purchasers are “accredited investors” and/or qualified institutional buyers, the purchasers have access to information about the Company and its purchase, the purchasers will take the securities for investment and not resale.

Other than as disclosed above, there were no unregistered securities to report which were sold or issued by the Company without the registration of these securities under the Securities Act of 1933 in reliance on exemptions from such registration requirements, within the period covered by this report, which have not been previously included in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit Number
Exhibit Number		Description
31.1		Certification of the Chief Executive Officer required under Rule 13a-14(a)/15d-14(a) of the Exchange Act*
31.2		Certification of the Chief Financial Officer required under Rule 13a-14(a)/15d-14(a) of the Exchange Act*
32.1		Certification of the Chief Executive Officer and Chief Financial Officer required under Section 1350 of the Exchange Act*
101.INS		XBRL Instance Document*
101.SCH		XBRL Taxonomy Extension Schema*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase*
101.DEF		XBRL Taxonomy Extension Definition Linkbase*
101.LAB		XBRL Taxonomy Extension Label Linkbase*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase*

Filed herewith

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.

	BrewBilt Manufacturing Inc.

Date: November 13, 2020	By: /s/ Jef Lewis

	Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

EX-31 2 ex31-1.htm CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER REQUIRED UNDER RULE 13A-14(A)/15D-14(A) OF THE EXCHANGE ACT

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14

I, Jef Lewis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BrewBilt Manufacturing Inc.;

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

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

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(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 my 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: November 13, 2020
	/s/ Jef Lewis
	By: Jef Lewis
	Its: Principal Executive Officer

EX-31 3 ex31-2.htm CERTIFICATION OF THE CHIEF FINANCIAL OFFICER REQUIRED UNDER RULE 13A-14(A)/15D-14(A) OF THE EXCHANGE ACT

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14

I, Jef Lewis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of BrewBilt Manufacturing Inc.;

(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: November 13, 2020
	/s/ Jef Lewis
	By: Jef Lewis
	Its: Principal Financial Officer

EX-32 4 ex32-1.htm CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER REQUIRED UNDER SECTION 1350 OF THE EXCHANGE ACT

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of BrewBilt Manufacturing Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jef Lewis, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

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

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

/s/ Jef Lewis
By: Jef Lewis
Principal Executive Officer and Principal Financial Officer
Dated: November 13, 2020

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

GRAPHIC 5 bb001_v1.jpg GRAPHIC begin 644 bb001_v1.jpg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end EX-101.INS 6 bbrw-20200930.xml XBRL INSTANCE FILE 0001641751 2020-01-01 2020-09-30 0001641751 2020-09-30 0001641751 2019-12-31 0001641751 us-gaap:RetainedEarningsMember 2019-12-31 0001641751 us-gaap:RetainedEarningsMember 2020-09-30 0001641751 us-gaap:CommonStockMember 2019-12-31 0001641751 us-gaap:CommonStockMember 2020-09-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001641751 us-gaap:SeriesAPreferredStockMember 2020-09-30 0001641751 us-gaap:SeriesAPreferredStockMember 2019-12-31 0001641751 us-gaap:SeriesBPreferredStockMember 2020-09-30 0001641751 us-gaap:SeriesBPreferredStockMember 2019-12-31 0001641751 us-gaap:LiabilitiesTotalMember srt:MinimumMember 2020-01-01 2020-09-30 0001641751 us-gaap:LiabilitiesTotalMember srt:MaximumMember 2020-01-01 2020-09-30 0001641751 2019-01-01 2019-09-30 0001641751 us-gaap:LiabilitiesTotalMember srt:MinimumMember 2020-09-30 0001641751 us-gaap:LiabilitiesTotalMember srt:MaximumMember 2020-09-30 0001641751 us-gaap:LiabilitiesTotalMember 2020-01-01 2020-09-30 0001641751 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2020-09-30 0001641751 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001641751 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2019-12-31 0001641751 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2020-09-30 0001641751 bbrw:APGCapital2Member 2019-12-31 0001641751 bbrw:AuctusFund2Member 2019-12-31 0001641751 bbrw:AuctusFund3Member 2019-12-31 0001641751 bbrw:AuctusFund4Member 2019-12-31 0001641751 bbrw:AuctusFund5Member 2019-12-31 0001641751 bbrw:AuctusFund6Member 2019-12-31 0001641751 bbrw:EMAFinancial2Member 2019-12-31 0001641751 bbrw:EMAFinancial3Member 2019-12-31 0001641751 bbrw:EmergingCorpCapitalMember 2019-12-31 0001641751 bbrw:AuctusFund7Member 2019-12-31 0001641751 bbrw:AuctusFund8Member 2019-12-31 0001641751 bbrw:EMAFinancial4Member 2019-12-31 0001641751 bbrw:EmergingCorpCapital2Member 2019-12-31 0001641751 bbrw:APGCapital2Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund2Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund3Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund4Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund5Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund6Member 2020-01-01 2020-09-30 0001641751 bbrw:EMAFinancial2Member 2020-01-01 2020-09-30 0001641751 bbrw:EMAFinancial3Member 2020-01-01 2020-09-30 0001641751 bbrw:EmergingCorpCapitalMember 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund7Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund8Member 2020-01-01 2020-09-30 0001641751 bbrw:EMAFinancial4Member 2020-01-01 2020-09-30 0001641751 bbrw:EmergingCorpCapital2Member 2020-01-01 2020-09-30 0001641751 2020-11-11 0001641751 bbrw:AuctusFund9Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund9Member 2019-12-31 0001641751 bbrw:AuctusFund9Member 2020-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2019-12-31 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-09-30 0001641751 2019-04-21 2019-04-22 0001641751 bbrw:AuctusFund10Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund10Member 2019-12-31 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2019-12-31 0001641751 us-gaap:ComputerEquipmentMember 2019-12-31 0001641751 us-gaap:ComputerEquipmentMember 2020-09-30 0001641751 us-gaap:LeaseholdImprovementsMember 2019-12-31 0001641751 us-gaap:LeaseholdImprovementsMember 2020-09-30 0001641751 us-gaap:MachineryAndEquipmentMember 2019-12-31 0001641751 us-gaap:MachineryAndEquipmentMember 2020-09-30 0001641751 us-gaap:VehiclesMember 2019-12-31 0001641751 us-gaap:VehiclesMember 2020-09-30 0001641751 2018-01-02 0001641751 2017-12-30 2018-01-02 0001641751 us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember 2019-11-19 2019-11-22 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2019-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2019-09-30 0001641751 us-gaap:CommonStockMember 2018-12-31 0001641751 us-gaap:CommonStockMember 2019-09-30 0001641751 us-gaap:RetainedEarningsMember 2018-12-31 0001641751 us-gaap:RetainedEarningsMember 2019-09-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001641751 2018-12-31 0001641751 2019-09-30 0001641751 2019-01-01 2019-12-31 0001641751 bbrw:APGCapital2Member 2020-09-30 0001641751 bbrw:AuctusFund2Member 2020-09-30 0001641751 bbrw:AuctusFund3Member 2020-09-30 0001641751 bbrw:AuctusFund4Member 2020-09-30 0001641751 bbrw:AuctusFund5Member 2020-09-30 0001641751 bbrw:AuctusFund6Member 2020-09-30 0001641751 bbrw:AuctusFund7Member 2020-09-30 0001641751 bbrw:AuctusFund8Member 2020-09-30 0001641751 bbrw:AuctusFund10Member 2020-09-30 0001641751 bbrw:EMAFinancial2Member 2020-09-30 0001641751 bbrw:EMAFinancial3Member 2020-09-30 0001641751 bbrw:EMAFinancial4Member 2020-09-30 0001641751 bbrw:EMAFinancial5Member 2020-01-01 2020-09-30 0001641751 bbrw:EMAFinancial5Member 2020-09-30 0001641751 bbrw:EMAFinancial5Member 2019-12-31 0001641751 bbrw:EmergingCorpCapitalMember 2020-09-30 0001641751 bbrw:EmergingCorpCapital2Member 2020-09-30 0001641751 2020-07-01 2020-09-30 0001641751 2019-07-01 2019-09-30 0001641751 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001641751 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001641751 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001641751 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001641751 us-gaap:CommonStockMember 2020-06-30 0001641751 us-gaap:CommonStockMember 2019-06-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001641751 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001641751 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001641751 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001641751 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001641751 us-gaap:RetainedEarningsMember 2020-06-30 0001641751 us-gaap:RetainedEarningsMember 2019-06-30 0001641751 2020-01-01 2020-03-31 0001641751 2019-01-01 2019-03-31 0001641751 2020-06-30 0001641751 2019-06-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-01-01 2020-03-31 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-07-01 2020-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-06-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-01-01 2020-03-31 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-07-01 2020-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-06-30 0001641751 bbrw:CBP3Member 2020-09-30 0001641751 bbrw:CBP3Member 2020-01-01 2020-09-30 0001641751 bbrw:PowerUpLending11Member 2020-09-30 0001641751 bbrw:PowerUpLending11Member 2020-01-01 2020-09-30 0001641751 bbrw:PowerUpLending12Member 2020-09-30 0001641751 bbrw:PowerUpLending12Member 2020-01-01 2020-09-30 0001641751 bbrw:PowerUpLending13Member 2020-09-30 0001641751 bbrw:PowerUpLending13Member 2020-01-01 2020-09-30 0001641751 bbrw:TriBridgeMember 2020-09-30 0001641751 bbrw:TriBridgeMember 2020-01-01 2020-09-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-04-01 2020-06-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesAPreferredStockMember 2020-03-31 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-04-01 2020-06-30 0001641751 us-gaap:PreferredStockMember us-gaap:SeriesBPreferredStockMember 2020-03-31 0001641751 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001641751 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001641751 us-gaap:CommonStockMember 2020-03-31 0001641751 us-gaap:CommonStockMember 2019-03-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001641751 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001641751 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001641751 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001641751 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001641751 us-gaap:RetainedEarningsMember 2020-03-31 0001641751 us-gaap:RetainedEarningsMember 2019-03-31 0001641751 2020-04-01 2020-06-30 0001641751 2019-04-01 2019-06-30 0001641751 2020-03-31 0001641751 2019-03-31 0001641751 bbrw:AuctusFund11Member 2020-01-01 2020-09-30 0001641751 bbrw:AuctusFund11Member 2020-09-30 0001641751 bbrw:CBP4Member 2020-01-01 2020-09-30 0001641751 bbrw:CBP4Member 2020-09-30 0001641751 bbrw:Optempus1Member 2020-01-01 2020-09-30 0001641751 bbrw:Optempus1Member 2020-09-30 0001641751 bbrw:Optempus2Member 2020-01-01 2020-09-30 0001641751 bbrw:Optempus2Member 2020-09-30 0001641751 bbrw:PowerUpLending14Member 2020-01-01 2020-09-30 0001641751 bbrw:PowerUpLending14Member 2020-09-30 0001641751 bbrw:PowerUpLending15Member 2020-01-01 2020-09-30 0001641751 bbrw:PowerUpLending15Member 2020-09-30 0001641751 bbrw:TriBridge2Member 2020-09-30 0001641751 bbrw:TriBridge2Member 2020-01-01 2020-09-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure utr:sqft

80058

1444

19705

374194

435164

844785

949010

809192

947655

142152

84072

75904

829384

1285625

2273269

15347154

175825 151325

3430530

6109932

4078309

6810483

1874269

10343

-5641396

-15240774

532751

9368557

-3233524

-5861473

9368557

532751

10343

1874269

-15240774

-5641396

851

400

-722748

-1213746

-303375

-377818

-1026123

-1591564

526591

-7433803

-352550

744795

-1071507

-6161301

-1424057

1115

900

34596

-14967000

-325671

7232168

-985645

-7699335

-1311316

844785

949010

851000

400000

1000

0.001

10000000000

5000000000

1874269389

10343330

1874269389

10343330

1874269389

1000

851000

400000

526590517

1114823

1000

900000

1000

34595672

801704

304702

763487

105046

221059

305153

46293

100971

195570

7451

78850

4054413 45000 17163 15000

4757958

761671

212934

240219

-3956254

-456969

550553

-135173

887563

34029

444846

7066

-2997742

305406

-4872752

-34029

-755797

-7066

-8835806

-490998

-212044

-142239

-2136389

-212044

-142239

-262897

-2136389

-262897

-6487373

-85862

-6487373

-85862

473587

-119728

-895

-801935

14500

849710

-74443

78614

-23580

1444

43285

1.6967

15.6340

P29D

P4Y10M20D

0.0008

0.0037

0.21

30839

36363

-8829006

-490998

-205244

-142239

6800

3675034 -4960896 -5077 298218 -13068808 0.0008 0.03

286916

404067

70628

124248

-403736

-5982

P90D

-642097

-100137

.0000

3509865

2997742

47151

47280

1022499

1409153

927012

558656

220795

1104451

163525

453610

1285625

2273269

1285625

2701464

32261

554137

366617

2147327

398878

259074

4421942

4681016

773357

933247

31500

31285

175000

90000

100000

75000

8474

73305

74933

25000

25750

25000

110000

57000

31000

100000

75000

25000

25750

31000

80500

34857

110000

30000

73000

53000

63000

15000

113000

30000

25000

43000

53000

25000

0.12

0.24

0.12

0.24

0.10

0.22

0.12

0.10

.10

0.10

0.12

0.10

.10

0.10

2019-06-25

2018-10-10

2018-11-06

2018-12-06

2019-03-14

2019-05-13

2018-12-15

2019-03-05

2019-02-11

2019-07-11

2019-09-20

2019-07-10

2019-10-31

2020-01-12

2020-07-22

2020-10-31

2021-05-01

2021-04-06

2021-05-04

2021-06-03

2021-05-26

2021-08-19

2021-07-23

2021-07-02

2021-07-30

2021-09-21

2021-07-24

2018-06-25

2018-01-10

2018-02-06

2018-03-06

2018-06-14

2018-08-13

2017-12-15

2018-03-05

2018-02-12

2018-10-11

2018-12-20

2018-10-10

2018-10-31

2019-04-12

2020-07-22

2020-01-30

2020-05-01

2020-04-06

2020-05-04

2020-06-03

2020-05-26

2020-08-19

2020-07-23

2020-07-02

2020-07-07

2020-07-30

2020-09-21

2020-07-24

57000

31500

84000

175000

90000

100000

75000

25000

25750

31000

50000

100000

25000

80500

83333

110000

30000

73000

53000

63000

15000

113000

30000

25000

43000

53000

25000

-55356 -3726

883

9467

851

400

0.001

30000000

1000

851000

400000

1000

8584

-2863

156

2082

2020-09-30 --12-31 BrewBilt Manufacturing Inc. 0001641751 Yes Accelerated Filer true true false 2462792070 10-Q false 2020 Q3 000-55787 47-0990750 FL 110 Spring Hill Road CA 95945 530 802-5023 Yes 25000

16980

4980

368248

392664

85363

116202

54940

323779

368248

392664

286649

62539

478845

1511096

1905346

191162

53038

79040

250592

false

25268

22296

26879

30839

36363

-1032251

-228490

224110

-5049

-138124

301841

268839

533023

-74443

28356

100133

58080

324341

18313

48549

250762

6717

238978

208139

8000

Wolf Creek Industrial Building at 110 Spring Hill Dr. #10 Grass Valley, CA 95945

P10Y

4861

.001

.03

279531

307887

102329

96664

61588

93657

1952 115614 115614

125569

5784

19893

16659

103

644

32740

35740

18936

16659

316347 536420 -1348598 -930670

737072

-737072

#10 Grass Valley true

529606195

1359512034

-0.01668

-0.00016

32260676

554136908

259074233

500

400

3999600

4000000

-8008

-42257

-50265

-8008334

25000

698540

-12000

NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Organization and Description of Business   Located in Grass Valley, CA, BrewBilt is one of the only California companies that custom designs, hand crafts, and integrates processing, fermentation and distillation processing systems for the craft beer, cannabis and hemp industries using “Best in Class” American made components integrated with stainless steel processing vessels using only American made steel. Founded in 2014, the company began in a backyard shop by Jeff Lewis with a vision of creating a profitable company in “Rural America” by hiring excellent personnel, designing and fabricating products to exceed customer’s expectations and compensating craftsmen with living wages and profit sharing to financially sustain their families within the community. Mr. Lewis has 15+ years of experience as a craft beer brewer, a custom tank/vessel designer, fabrication and integration expert and business owner who initially founded Portland Kettle Works, a nationally recognized manufacturer of craft beer brewing equipment located in the Northwest.   BrewBilt has been built by having strong relationships with local suppliers of raw materials, equipment and services in California, an aggressive referral network of satisfied customers nationwide, and an Advisory Board consisting of successful business leaders that provide valuable product feedback and business expertise to management. The craft brewing & spirits industries continue to grow worldwide. California is where craft brewing began and now has over 900 operating breweries – being centrally located in this booming market was a large draw for BrewBilt to locate its manufacturing facility in the Sierra foothills.   All BrewBilt products are designed and fabricated as “food grade” quality which enables the company to build vessels for food & beverage processing , the company is now building systems that are pharmaceutical grade for clients involved in distillation for the cannabis and hemp industries, thus making the revenue potential much greater. BrewBilt buys materials and components mostly from California suppliers which enables them to closely monitor quality, while the company’s revenues are generated from sales to customers throughout the country. The company is aggressively pursuing international orders and has held meetings with the Center for International Trade Development and U.S. Commercial Service to develop international opportunities. Presently, a great deal of sales interest in coming from Mexico, Japan, Europe, and Australia.   BrewBilt competes against a number of companies, most of which are selling mass produced equipment from China made from less costly inferior quality Chinese steel which often is neither food nor pharmaceutical grade quality. While this broader market is very competitive, there continues to be little competition and strong market demand for higher quality, custom designed, hand crafted and integrated systems that BrewBilt produces.   In July of 2016, BrewBilt moved from the small facility in Nevada City, CA to lease an eight thousand (8,000) square foot manufacturing facility in Grass Valley, CA. This facility was purchased by BrewBilt in January 2018 and upgraded with substantial tenant improvements. BrewBilt is prepared to expand again by leasing an additional seventy-six hundred (7,600) square feet in the same facility. BrewBilt obtains the majority of its leads through customer referrals and from online marketplaces. The company’s website is being expanded for online sales to include online educational/marketing videos that feature the company and its expanded integrated product line for the cannabis and hemp industries. BrewBilt has also created distribution sales agreements with individuals and companies to represent BrewBilt in both the domestic and international markets.   The former company, Vet Online Supply Inc, a Florida corporation, was incorporated on May 31, 2014. Vet Online Supply Inc. manufactured and distributed wholistic CBD based pet products. On November 22, 2019, Vet Online Supply and Brewbilt Manufacturing (“BrewBilt”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) and completed a merger, whereby Brewbilt merged with and into Vet Online Supply, with BrewBilt remaining as the surviving entity (the “Merger”). Under U.S. generally accepted accounting principles, the merger is treated as a “reverse merger” under the purchase method of accounting, with BrewBilt as the accounting acquirer.   On January 21, 2020, the Company filed Articles of Amendment to change its name to “BrewBilt Manufacturing Inc.   The Company’s common stock will continue to trade on the OTCQB Market under the new Symbol “BBRW,” and the CUSIP number for the Company’s common stock is now 10756L108. Outstanding stock certificates for shares of the Company are not affected by the name change, and they continue to be valid and need not be exchanged.   Financial Statement Presentation   The audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).   Fiscal year end   The Company has selected December 31 as its fiscal year end.   Use of Estimates   The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates.   Cash Equivalents   The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents.    Revenue Recognition and Related Allowances   The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue and related cost of sales until all conditions are met. As of September 30, 2020 and December 31, 2019, the Company has deferred $478,845 and $1,511,096, respectively, in revenue, and $191,162 and $53,038 in cost of sales, respectively, related to customer orders in progress. These amounts are recorded as billings in excess of revenues and earnings in excess of billings in the accompanying balance sheets.   Accounts Receivable and Allowance for Doubtful Accounts   Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Bad debts and allowances are provided based on historical experience and management’s evaluation of outstanding accounts receivable. Management evaluates past due or delinquency of accounts receivable based on the open invoices aged on due date basis. The allowance for doubtful accounts at September 30, 2020 and December 31, 2019 is $0.   Inventories   Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of raw stainless steel, raw stainless tubing, motors, pumps, and fittings, are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value.   In addition, the Company is a manufacturer of premium CBD infused holistic pet products and as such will maintain inventory on site. The company directly drop ships to customers when ordered. The Company has wholesale distributors that purchase products in bulk inventory.   Goodwill   The excess of the cost over the fair value of net assets of acquired in the Merger is recorded as goodwill. Goodwill is not subject to amortization, but is reviewed for impairment annually, or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. An impairment charge would be recorded to the extent the carrying value of goodwill exceeds its estimated fair value. The testing of goodwill under established guidelines for impairment requires significant use of judgment and assumptions. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. At December 31, 2019, the Company reviewed the goodwill recorded in the Merger and determined that an impairment expense of $2,289,884 was required.   Warranty   The Company is a manufacturer of products which are shipped to our customers directly from the Company. For products that are made from raw materials, the Company offers a 6-year limited warranty. The parts provided by outside vendors as finished goods that are added to a system produced by the Company as components, have a manufacturers’ warranty that is passed on to the end user of the complete system. To date, BrewBilt has spent less than $5,000 over the past 5 years for repairs (under warranty) on products they have built, with most of the costs going to cover travel and lodging expenses. As of September 30, 2020 and December 31, 2019, the Company has recorded a liability of $5,000 and $5,000, respectively, for warranties, which is included in accrued liabilities in the accompanying balance sheet.   Accounts Payable and Accrued Expenses   Accounts payable and accrued expenses are carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the fiscal year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services.   Fair Value of Financial Instruments   Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.   In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs is expanded. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels and which is determined by the lowest level input that is significant to the fair value measurement in its entirety.   These levels are:   Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.   Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.   Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.   Financial assets and liabilities measured at fair value on a recurring basis:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td style="text-align: center; white-space: nowrap">Input</td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30, 2020</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31, 2019</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Level</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 51%; text-align: justify; padding-bottom: 1pt">Derivative Liability</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="width: 14%; text-align: center; padding-bottom: 1pt">3</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">1,285,625</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">2,273,269</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; padding-bottom: 2.5pt">Total Financial Liabilities</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,285,625</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">2,273,269</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td></tr> </table>   In management’s opinion, the fair value of convertible notes payable and advances payable is approximate to carrying value as the interest rates and other features of these instruments approximate those obtainable for similar instruments in the current market. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments. As September 30, 2020 and December 31, 2019, the balances reported for cash, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, approximate the fair value because of their short maturities.   Income Taxes   The Company records deferred taxes in accordance with FASB ASC No. 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and loss carryforwards 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 of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.   As of the date of this filing, the Company is current in filing their tax returns. The last return filed by the Company was December 31, 2019, and the Company has not accrued any potential penalties or interest from that period forward.   Basic and Diluted Loss Per Share   In accordance with ASC Topic 280 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.   Recent Accounting Pronouncements   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaces existing revenue recognition guidance. The updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard on January 1, 2018, using a modified retrospective approach, with the cumulative effect of initially applying the standard recognized in retained earnings at the date of adoption.   In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted the new lease guidance effective January 1, 2019.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted the standard in the first quarter of fiscal 2020 and there was no material impact.

NOTE 2 – GOING CONCERN   The Company has experienced net losses to date, and it has not generated sufficient revenue from operations to meet our operational overhead. We will need additional working capital to service debt and for ongoing operations, which raises substantial doubt about our ability to continue as a going concern. Management of the Company is preparing a strategy to meet operational shortfalls which may include equity funding, short term or long-term financing or debt financing, to enable the Company to reach profitable operations. Historically, the Company’s sole officer and director has provided short term loans to meet working capital shortfalls. We have recently entered into financing agreements with various third parties to meet our capital needs in fiscal 2020.   The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

NOTE 3 – MERGER TRANSACTION   On November 22, 2019, Vet Online Supply and Brewbilt Manufacturing (“BrewBilt”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) and completed a merger, whereby Brewbilt merged with and into Vet Online Supply, with BrewBilt remaining as the surviving entity (the “Merger”). Under U.S. generally accepted accounting principles, the merger is treated as a “reverse merger” under the purchase method of accounting, with BrewBilt as the accounting acquirer.   Pursuant with the Merger Asset Purchase Agreement, the Board of Directors has authorized that BrewBilt shall sell, assign and transfer all of its right, title and interest to its IP, fixed assets and “know how” to the Company (collectively, the “Seller’s Assets”). Vet Online Supply and BrewBilt mutually agree that BrewBilt will assign certain assets and provide the “Know-How” regarding the designing and building of the finest craft brewing equipment in the industry today. As consideration for the IP, fixed assets and the “Know -How”, the Company shall issue, or cause to be issued, $5,000,000 worth of Preferred Series A Stock (PAR $.001) within thirty (30) days from the date of the agreement. The number of Preferred Series A shares to be issued is 500,000 shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for VTNL. BrewBilt has designated that the said stock be issued in the name of its President, Jeffrey Lewis.   The Board of Directors dismissed Daniel Rushford as an officer and director, specifically as the Chief Executive Officer, Chairman of the Board, and Corporate (President) of the Company effective November 22, 2019. Effective November 22, 2019, Daniel Rushford will have a new revised Employment Agreement which appoints him as Manager of the CBD Pet Supply Division, a non-director/officer position which includes returning to Treasury 1,000 Preferred Series B Control Shares, and an annual salary of $36,000. Unpaid wages will accrue interest at 6% per annum and may be converted to restricted common stock at fair market value at the time of conversion.

NOTE 4 – PREPAID EXPENSES   Prepaid fees represent amounts paid in advance for future contractual benefits to be received. Contracting expenses paid in advance are recorded as a prepaid asset and then amortized to the statements of operations when services are rendered, or over the life of the contract using the straight-line method.   As of September 30, 2020, the Company accrued prepaid insurance expenses of $883 and as of December 31, 2019, the Company accrued prepaid insurance expenses and employee wages of $9,467.

NOTE 5 – PROPERTY AND EQUIPMENT   Property and equipment consisted of the following at September 30, 2020 and December 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 72%; text-align: left">Computer Equipment</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">18,313</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">18,313</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Leasehold Improvements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,549</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,549</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td>Machinery</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">250,762</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">250,762</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Vehicles</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,717</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,717</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td>Total</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">324,341</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">324,341</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(238,978</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(208,139</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt">Net</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">85,363</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">116,202</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td></tr> </table>

NOTE 6 – LEASES   The Company adopted the new lease guidance effective January 1, 2019 using the modified retrospective transition approach, applying the new standard to all of its leases existing at the date of initial application which is the effective date of adoption. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. We elected the package of practical expedients which permits us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. We did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. The adoption of the lease standard did not change our previously reported consolidated statements of operations and did not result in a cumulative catch-up adjustment to opening equity. The adoption of the new guidance resulted in the recognition of ROU assets of $423,360 and lease liabilities of $423,360.   The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In calculating the present value of the lease payments, the Company elected to utilize its incremental borrowing rate based on the remaining lease terms as of the January 1, 2019 adoption date.   Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred, if any. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our lease has a remaining lease term of nine years.   The Company has elected the practical expedient to combine lease and non-lease components as a single component. The lease expense is recognized over the expected term on a straight-line basis. Operating leases are recognized on the balance sheet as right-of-use assets, current operating lease liabilities and non-current operating lease liabilities.   The new standard also provides practical expedients and certain exemptions for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases where the initial lease term is one year or less or for which the ROU asset at inception is deemed immaterial, we will not recognize ROU assets or lease liabilities. Those leases are expensed on a straight-line basis over the term of the lease.   Operating Leases   On January 1, 2018, the Company entered into a standard office lease for approximately 8,000 square feet of space, located in the Wolf Creek Industrial Building at 110 Spring Hill Dr. #10 Grass Valley, CA 95945. The lease has a term of 10 years, from January 1, 2018 through January 1, 2028, with a monthly rent of $4,861.   ROU assets and lease liabilities related to our operating lease is as follows:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 66%; text-align: justify">Right-of-use assets</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">368,248</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">392,664</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Current lease liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Non-current lease liabilities</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">368,248</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">392,664</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>

NOTE 7 – ACCURED LIABILITIES   As of September 30, 2020 and December 31, 2019, accrued liabilities were comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Accrued liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 66%; text-align: left">    Accrued wages</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">125,569</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,784</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Credit card</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,893</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">16,659</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">    Customer deposits</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">103,550</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Payroll liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(103</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(644</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">    Sales tax payable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">32,740</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">35,740</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="padding-bottom: 1pt">    Warranty</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Total accrued expenses</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">286,649</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">62,539</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table> NOTE 8 – BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS   Billings in excess of revenue is related to contracted amounts that have been invoiced to customers for which remaining performance obligations must be completed before the Company can recognize the revenue. Earnings in excess of billings is related to the cost of sales associated with the customer products that are incomplete.   Changes in unearned revenue for the periods ended September 30, 2020 and December 31, 2019 were as follows:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 66%; text-align: left">Unearned revenue, beginning of the period</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,511,096</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,905,346</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">   Billings in excess of revenue during the period</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">316,347</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">536,420</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; padding-bottom: 1pt">   Recognition of unearned revenue in prior periods</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,348,598</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(930,670</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Unearned revenue, end of the period</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">478,845</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1,511,096</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>   As of September 30, 2020 and December 31, 2019, the Company has recorded $191,162 and $53,038, respectively in earnings in excess of billings for the cost of sales related to customer orders in progress. NOTE 9 – CONVERTIBLE NOTES PAYABLE   As of September 30, 2020 and December 31, 2019, notes payable were comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">Original</td> <td> </td> <td> </td> <td style="text-align: center; white-space: nowrap">Original</td> <td> </td> <td style="text-align: center; white-space: nowrap">Due</td> <td> </td> <td style="text-align: center; white-space: nowrap">Interest</td> <td> </td> <td style="text-align: center; white-space: nowrap">Conversion</td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Note Amount</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Note Date</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Date</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Rate</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Rate</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 17%; text-align: left; white-space: nowrap">APG Capital #2</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">31,500</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">6/25/2018</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">6/25/2019</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">12%</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">Variable</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">—</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">31,500</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">84,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">1/10/2018</td> <td> </td> <td style="text-align: center">10/10/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,285</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">175,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">2/6/2018</td> <td> </td> <td style="text-align: center">11/6/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">175,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">90,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">3/6/2018</td> <td> </td> <td style="text-align: center">12/6/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">90,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #5</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">6/14/2018</td> <td> </td> <td style="text-align: center">3/14/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #6</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">75,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/13/2018</td> <td> </td> <td style="text-align: center">5/13/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">75,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #7</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/11/2018</td> <td> </td> <td style="text-align: center">7/11/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #8</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,750</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">12/20/2018</td> <td> </td> <td style="text-align: center">9/20/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,750</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #9</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">57,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">4/12/2019</td> <td> </td> <td style="text-align: center">1/12/2020</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">57,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #10</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/22/2020</td> <td> </td> <td style="text-align: center">7/22/2020</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #11</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/19/2020</td> <td> </td> <td style="text-align: center">8/19/2021</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">CBP #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/1/2020</td> <td> </td> <td style="text-align: center">5/1/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">CBP #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/23/2020</td> <td> </td> <td style="text-align: center">7/23/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">EMA Financial #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">50,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">12/15/2017</td> <td> </td> <td style="text-align: center">12/15/2018</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">8,474</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">EMA Financial #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">3/5/2018</td> <td> </td> <td style="text-align: center">3/5/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,305</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">EMA Financial #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/10/2018</td> <td> </td> <td style="text-align: center">7/10/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">EMA Financial #6</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">80,500</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/17/2020</td> <td> </td> <td style="text-align: center">5/17/2021</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">80,500</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Emerging Corp Cap #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">83,333</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">2/12/2018</td> <td> </td> <td style="text-align: center">2/11/2019</td> <td> </td> <td style="text-align: center">22%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">34,857</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">74,933</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Emerging Corp Cap #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/31/2018</td> <td> </td> <td style="text-align: center">10/31/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Optempus #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/2/2020</td> <td> </td> <td style="text-align: center">7/2/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Optempus #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/7/2020</td> <td> </td> <td style="text-align: center">7/2/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #11</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">4/6/2020</td> <td> </td> <td style="text-align: center">4/6/321</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Power Up Lending #12</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/4/2020</td> <td> </td> <td style="text-align: center">5/4/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #13</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">63,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">6/3/2020</td> <td> </td> <td style="text-align: center">6/3/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">63,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Power Up Lending #14</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">43,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/30/2020</td> <td> </td> <td style="text-align: center">7/30/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">43,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #15</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">9/21/2020</td> <td> </td> <td style="text-align: center">9/21/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Tri-Bridge #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/26/2020</td> <td> </td> <td style="text-align: center">5/26/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; white-space: nowrap">Tri-Bridge #2</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt">25,000</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7/24/2020</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7/24/2021</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">10%</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">Variable</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">25,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: right; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">773,357</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">933,247</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td colspan="13" style="text-align: left; padding-left: 17.3pt; white-space: nowrap">Debt discount</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(642,097</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(100,137</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td colspan="12" style="text-align: left; padding-bottom: 1pt; padding-left: 17.3pt; white-space: nowrap">Financing costs/Original issue discount</td> <td style="text-align: right; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(55,356</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(3,726</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td colspan="13" style="text-align: left; padding-bottom: 2.5pt; padding-left: 17.3pt; font-weight: bold; white-space: nowrap">Notes payable, net of discount</td> <td style="padding-bottom: 2.5pt; font-weight: bold"> </td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-weight: bold">75,904</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double; font-weight: bold"> </td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-weight: bold">829,384</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold; white-space: nowrap"> </td></tr> </table>   During the nine months ending September 30, 2020, the Company received proceeds from new convertible notes of $698,540, and reclassified accounts payable of $44,000 into convertible notes payable. The Company recorded no payments on their convertible notes, default penalties of $194,920, and conversions of $1,184,909 of convertible note principal. The Company recorded loan fees on new convertible notes of $87,460, which increased the debt discounts recorded on the convertible notes during the nine months ending September 30, 2020. All of the Company’s convertible notes have a conversion rate that is variable, and therefore, the Company has accounted for their conversion features as derivative instruments (see Note 10). The Company also recorded amortization of $473,587 on their convertible note debt discounts and loan fees. As of September 30, 2020, the convertible notes payable are convertible into 384,712,480  shares of the Company’s common stock.   During the nine months ended September 30, 2020, the Company recorded interest expense of $155,252 on its convertible notes payable. During the nine months ended September 30, 2020, the Company recorded conversions of $341,092 of convertible note interest and $39,275 in conversion fees. As of September 30, 2020, the accrued interest balance was $54,868.   As of September 30, 2020, we have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. NOTE 10 – DERIVATIVE LIABILITIES   The following table represents the Company’s derivative liability activity for the embedded conversion features for convertible notes and warrants for the period ending September 30, 2020 and December 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 66%">Balance, beginning of period</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,273,269</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">15,347,154</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Initial recognition of derivative liability</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,675,034</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Conversion of derivative instruments to Common Stock</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(4,960,896</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(5,077</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 1pt">Mark-to-Market adjustment to fair value</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">298,218</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(13,068,808</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="padding-bottom: 2.5pt">Balance, end of period</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,285,625</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">2,273,269</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td></tr> </table>   During the period ended September 30, 2020 and December 31, 2019, the Company recorded derivative liabilities for embedded conversion features related to convertible notes payable and warrants of $3,675,034 and $0, respectively.   During the period ended September 30, 2020 and December 31, 2019, in conjunction with convertible notes payable principal and accrued interest being converted into common stock of the Company and cashless exercise of warrants, derivative liabilities were reduced by $4,960,896 and $5,077, respectively.   For the period ended September 30, 2020 and December 31, 2019, the Company performed a final mark-to-market adjustment for the derivative liability related to the convertible notes and warrants, and the carrying amount of the derivative liability related to the conversion feature, and recognized a loss of $298,218 and a gain on the derivative liability valuation of $13,068,808, respectively.   The Company uses the Black-Scholes option pricing model to estimate fair value for those instruments convertible into common shares at inception, at conversion or extinguishment date, and at each reporting date. During the nine months ended September 30, 2020, the company used the following assumptions in their Black-Scholes model: (1) risk free interest rate .08% - .37%, (2) term of 0.12 years – 4.89 years, (3) expected stock volatility of 169.67% - 1,563.40%, (4) expected dividend rate of 0%, (5) common stock price of $0.001 - $0.03, and (6) exercise price of $0.0008 - $0.03.   These instruments were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability, or any net investment in a foreign operation. The instruments do not qualify for hedge accounting, and as such, all future changes in the fair value will be recognized in earnings until such time as the instruments are exercised, converted, or expire.

NOTE 11 – RELATED PARTY TRANSACTIONS   Mr. Jef Lewis, Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer   On November 22, 2019, the Company appointed Jeffrey Lewis as the new Chief Executive Officer, Chairman of the Board, Corporate President, Secretary, and Treasurer of the Company. The Company and Mr. Lewis entered into an Employee Agreement that included the issuance of 1,000 Preferred Series B Control Shares, and an annual salary of $200,000. Unpaid wages will accrue interest at 6% per annum and may be converted to restricted common stock at fair market value at the time of conversion. During the nine months ended September 30, 2020, the Company accrued wages of $150,000, interest of $3,126 and made payments of $55,509.   Pursuant to the Merger Agreement, Mr. Lewis is to receive 500,000 shares of Preferred Series A shares, valued at $5,000,000. The shares are convertible pursuant the conversion rights as specified in the Articles of Incorporation and Certificate of Designation for the Company. As of December 31, 2019, the shares had not been issued, and the Company recorded a liability for unissued shares in the amount of $500, goodwill of $2,289,884 and $2,289,334 to additional paid in capital. During the nine months ended September 30, 2020, the Company issued 500,000 shares of Preferred Series A to Mr. Lewis and $500 was reclassed from liabilities for unissued shares to equity.   The Company is periodically advanced noninterest bearing operating funds from related parties. The advances are due on demand and unsecured. During the nine months ended September 30, 2020, the Company made payments of $27,500 to amounts due to Mr. Lewis and $22,838 was advanced to the Company by Mr. Lewis. As of September 30, 2019 and December 31, 2018, the Company owed Mr. Lewis $1,143 and $5,805, respectively for advances to the Company.   Mr. Samuel Berry, Director   On November 22, 2019, the Company entered into a Consulting Agreement with Mr. Samuel Berry.  Mr. Berry will receive an annual salary of $50,000, payable in quarterly installments at $12,500 per quarter. During the nine months ended September 30, 2020, the Company accrued $37,500 in consulting fees in connection to his agreement.   Mr. Daniel Rushford, former President   During the nine months ended September 30, 2020, the Company’s former President cancelled 8,008,334 shares of common stock issued to settle debt of $25,265 and $25,000 in stock based compensation pursuant to an employee agreement. The cancellation resulted in a liability of unissued shares of $25,000 and an increase in related party liabilities of $25,265.

NOTE 12 – LONG TERM DEBT   As of September 30, 2020 and December 31, 2019, long term debt was comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Long term debt</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 66%; text-align: left">    Equipment lease</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">—</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,952</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Equipment loan</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">115,614</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">115,614</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>    Line of credit</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">102,329</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">96,664</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; padding-bottom: 1pt">    Other loans</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">61,588</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">93,657</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Total long term debt</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">279,531</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">307,887</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>   Paycheck Protection Program Loan   On May 11, 2020, the Company was granted a loan (the “Loan”) from BSD Capital, LLC dba Lendistry, in the amount of $61,558, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020.   The Loan, which was in the form of a Note dated May 11, 2020, issued by the Borrower, matures on May 11, 2022, and bears interest at a rate of 1% per annum, payable monthly commencing on November 11, 2020. The Note may be prepaid by the Borrower at any time prior to maturity with no prepayment penalties. Funds from the Loan may only be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations. The Company intends to use the entire Loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act.

NOTE 13 – PREFERRED STOCK   On March 28, 2017, the Company filed an amendment to its articles of incorporation designating 20,000 shares of its authorized preferred stock, par value $0.001 as Series B Voting Preferred Stock.  The Series B Voting Preferred Stock shall have the right to vote the shares on any matter requiring shareholder approval on the basis of 4 times the votes of all the issued and outstanding shares of common stock, as well as any issued and outstanding preferred stock.   On July 1, 2019, the Company filed a Certificate of Amendment to increase the number of authorized Series A Preferred Stock to 30,000,000, with a par value of $0.001.  Each share of Preferred Series A Stock shall have a value of $10 per share and will convert into common stock at the closing price of the common stock on the date of conversion.  The Series A stock shall have no voting rights on corporate matters, unless and until the Series A shares are converted into Common Shares, at which time they will have the same voting rights as all Common Shareholders have; their consent shall not be required for taking any corporate action.   Pursuant to the Merger Agreement dated November 22, 2019, the Company will issue $5,000,000 worth of Preferred Series A Stock to Mr. Lewis. The number of Preferred Series A shares to be issued is 500,000 shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and Certificate of Designation for the Company. As of December 31, 2019, the shares had not been issued, and the Company recorded a liability for unissued shares in the amount of $500, goodwill of $2,289,884 and $2,289,334 to additional paid in capital.   On April 6, 2020, the Company executed an addendum to the Distribution & Licensing Agreement dated November 19, 2019, with Bgreen Partners, Inc. The Company issued 400,000 Preferred Series A shares at a price of $10.00 per share convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for the Company.   During the nine months ended September 30, 2020, 449,000 shares of Series A Preferred stock were converted to 865,259,856 common shares in accordance with the conversion terms. The issuances resulted in a loss on conversion of $987,447 which was recorded to the statement of operations.   During the nine months ended September 30, 2020, 500,000 shares of Preferred Series A Shares were issued pursuant to the Merger Agreement, and a $500 liability for unissued shares was reclassed to equity.   As of September 30, 2020, 30,000,000 Series A Preferred shares and 1,000 Series B Preferred shares were authorized, of which 851,000 Series A shares were issued and outstanding, and 1,000 Series B shares were issued and outstanding.

NOTE 14 – COMMON STOCK   On April 22, 2019, the Company approved the authorization of a 1 for 3,000 reverse stock split of the Company’s outstanding shares of common stock. The Company’s financial statements have been retroactively adjusted for this stock split for all periods presented.   During the year ended December 31, 2019, the holder of a convertible note converted $1,148 of accrued interest and $500 in conversion fees into 400,000 shares of common stock. The common stock was valued at $5,077 based on the market price of the Company’s stock on the date of conversion.   On March 25, 2020, the Company filed a Certificate of Amendment to increase the number of authorized common shares from 5,000,000,000 to 10,000,000,000 with a par value of $0.001.   During the nine months ended September 30, 2020, the Company’s former President cancelled 8,008,334 shares of common stock issued to settle debt of $25,265 and $25,000 in stock based compensation pursuant to an employee agreement. The cancellation resulted in a liability of unissued shares of $25,000 and an increase in related party liabilities of $25,265.   During the nine months ended September 30, 2020, 449,000 shares of Series A Preferred stock were converted to 865,259,856 common shares in accordance with the conversion terms. The issuances resulted in a loss on conversion of $987,447 which was recorded to the statement of operations.   During the nine months ended September 30, 2020, the holders of a convertible notes converted $1,184,809 of principal, $341,092 of accrued interest and $39,275 in conversion fees into 897,520,532 shares of common stock. The common stock was valued at $4,823,926 based on the market price of the Company’s stock on the date of conversion.   As of September 30, 2020, 10,000,000,000 were authorized, of which 1,874,269,389 shares are issued and outstanding.   Warrants   We account for common stock purchase warrants as derivative liabilities and debt issuance costs on the balance sheet at fair value, and changes in fair value during the periods presented in the statement of operations, which is revalued at each balance sheet date subsequent to the initial issuance of the warrant.   During the nine months ended September 30, 2020, warrant holders exercised the warrants and the Company issued 161,202,720 shares of common stock through a cashless exercise of the warrants in accordance with the conversion terms.

NOTE 15 – INCOME TAX   Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.   The deferred tax asset and the valuation allowance consist of the following at September 30, 2020:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 86%; text-align: justify">Net operating loss</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">3,509,865</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Statutory rate</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">21</td> <td style="text-align: left; white-space: nowrap">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Expected tax recovery</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">737,072</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; padding-bottom: 1pt">Change in valuation allowance</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(737,072</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Income tax provision</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Components of deferred tax asset:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Non-capital tax loss carry-forwards</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">737,072</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: valuation allowance</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(737,072</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">—</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td></tr> </table>   As of the date of this filing, the Company is current in filing their tax returns. The last return filed by the Company was December 31, 2019, and the Company has not accrued any potential penalties or interest from that period forward.

NOTE 16 – COMMITMENTS AND CONTINGENCIES   Distribution& Licensing Agreement   On November 19, 2019, the Company entered into a Distribution & Licensing Agreement with Bgreen Partners, Inc., a California Corporation. The Agreement provides exclusive rights to various cannabis and agricultural products inclusive of grow-containers and CBD Extraction Systems to be used for mobile processing. The IP and rights are valued at $4,000,000, based upon a five-year term. As consideration for the IP and rights, the Company issued 400,000 Preferred Series A shares at a price of $10.00 per share and convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for the Company.   On April 6, 2020, the Company executed an addendum to the Distribution & Licensing Agreement dated November 19, 2019, with Bgreen Partners, Inc. The Company issued 400,000 Preferred Series A shares at a price of $10.00 per share convertible pursuant the conversion rights as specified in the Articles of Incorporation and certificate of designation for the Company.   Employee Agreement   On November 22, 2019, the Company entered into an Employment Agreement with Mr. Daniel Rushford. Mr. Rushford will receive an annual salary of $36,000 to be paid in equal monthly installments. Unpaid amounts will accrue annual interest of 6%. The term of the Agreement is for one year and is renewable upon mutual consent.    Lease   On January 1, 2018, the Company entered into a standard office lease for approximately 8,000 square feet of space, located in the Wolf Creek Industrial Building at 110 Spring Hill Dr. #10 Grass Valley, CA 95945. The lease has a term of 10 years, from January 1, 2018 through January 1, 2028, with a monthly rent of $4,861.   Service Agreement   On June 12, 2018, the Company entered into a preventative maintenance service agreement with Atlas Copco Compressions LLC. The agreement is for a period of 5 years, at a cost of $145.13 per month.

NOTE 17 – SUBSEQUENT EVENTS   Convertible Notes   On October 14, 2020, the Company entered in a Convertible Promissory Note in the amount of $43,000. The note is unsecured, bears interest at 10% per annum, and matures on October 14, 2021.   On October 21, 2020, the Company entered in a Convertible Promissory Note in the amount of $50,000. The note is unsecured, bears interest at 12% per annum, and matures on July 21, 2021.   Subsequent Issuances   On October 1, 2020, 40,000 shares of Preferred Series A stock was converted in to 105,263,158 shares of common stock.   On October 6, 2020, 17,640 shares of Preferred Series A stock was converted in to 88,200,000 shares of common stock.   On October 13, 2020, the holder of a convertible note converted a total of $30,000 of principal into 14,285,714 shares of our common stock.   On October 13, 2020, the holder of a convertible note converted a total of $32,000 of principal into 15,238,095 shares of our common stock.   On October 14, 2020, the holder of a convertible note converted a total of $14,650 of principal and interest into 6,976,190 shares of our common stock.   On October 27, 2020, 9,000 shares of Preferred Series A stock was converted in to 40,000,000 shares of common stock.   On October 27, 2020, 21,600 shares of Preferred Series A stock was converted in to 90,000,000 shares of common stock.   On October 27, 2020, 25,000 shares of Preferred Series A stock was converted in to 100,000,000 shares of common stock.   On October 28, 2020, 13,500 shares of Preferred Series A stock was converted in to 90,000,000 shares of common stock.   On November 5, 2020, the holder of a convertible note converted a total of $25,000 of principal into 16,666,667 shares of our common stock.   On November 6, 2020, the holder of a convertible note converted a total of $30,650 of principal and interest into 21,892,857 shares of our common stock.

Financial Statement Presentation   The audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Fiscal year end   The Company has selected December 31 as its fiscal year end.

Use of Estimates   The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from these estimates.

Cash Equivalents   The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents.

Revenue Recognition and Related Allowances   The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue and related cost of sales until all conditions are met. As of September 30, 2020 and December 31, 2019, the Company has deferred $478,845 and $1,511,096, respectively, in revenue, and $191,162 and $53,038 in cost of sales, respectively, related to customer orders in progress. These amounts are recorded as billings in excess of revenues and earnings in excess of billings in the accompanying balance sheets.

Accounts Receivable and Allowance for Doubtful Accounts   Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Bad debts and allowances are provided based on historical experience and management’s evaluation of outstanding accounts receivable. Management evaluates past due or delinquency of accounts receivable based on the open invoices aged on due date basis. The allowance for doubtful accounts at September 30, 2020 and December 31, 2019 is $0.

Inventories   Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of raw stainless steel, raw stainless tubing, motors, pumps, and fittings, are stated at the lower of cost, determined on the first-in, first-out basis, or net realizable value.   In addition, the Company is a manufacturer of premium CBD infused holistic pet products and as such will maintain inventory on site. The company directly drop ships to customers when ordered. The Company has wholesale distributors that purchase products in bulk inventory.

Goodwill   The excess of the cost over the fair value of net assets of acquired in the Merger is recorded as goodwill. Goodwill is not subject to amortization, but is reviewed for impairment annually, or more frequently whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. An impairment charge would be recorded to the extent the carrying value of goodwill exceeds its estimated fair value. The testing of goodwill under established guidelines for impairment requires significant use of judgment and assumptions. Changes in forecasted operations and other assumptions could materially affect the estimated fair values. Changes in business conditions could potentially require adjustments to these asset valuations. At December 31, 2019, the Company reviewed the goodwill recorded in the Merger and determined that an impairment expense of $2,289,884 was required.

Warranty   The Company is a manufacturer of products which are shipped to our customers directly from the Company. For products that are made from raw materials, the Company offers a 6-year limited warranty. The parts provided by outside vendors as finished goods that are added to a system produced by the Company as components, have a manufacturers’ warranty that is passed on to the end user of the complete system. To date, BrewBilt has spent less than $5,000 over the past 5 years for repairs (under warranty) on products they have built, with most of the costs going to cover travel and lodging expenses. As of September 30, 2020 and December 31, 2019, the Company has recorded a liability of $5,000 and $5,000, respectively, for warranties, which is included in accrued liabilities in the accompanying balance sheet.

Accounts Payable and Accrued Expenses   Accounts payable and accrued expenses are carried at amortized cost and represent liabilities for goods and services provided to the Company prior to the end of the fiscal year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services.

Fair Value of Financial Instruments   Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.   In addition to defining fair value, the standard expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs is expanded. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels and which is determined by the lowest level input that is significant to the fair value measurement in its entirety.   These levels are:   Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.   Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.   Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.   Financial assets and liabilities measured at fair value on a recurring basis:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td style="text-align: center; white-space: nowrap">Input</td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30, 2020</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31, 2019</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Level</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 51%; text-align: justify; padding-bottom: 1pt">Derivative Liability</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="width: 14%; text-align: center; padding-bottom: 1pt">3</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">1,285,625</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">2,273,269</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; padding-bottom: 2.5pt">Total Financial Liabilities</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,285,625</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">2,273,269</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td></tr> </table>   In management’s opinion, the fair value of convertible notes payable and advances payable is approximate to carrying value as the interest rates and other features of these instruments approximate those obtainable for similar instruments in the current market. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, exchange or credit risks arising from these financial instruments. As September 30, 2020 and December 31, 2019, the balances reported for cash, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, approximate the fair value because of their short maturities.

Income Taxes   The Company records deferred taxes in accordance with FASB ASC No. 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and loss carryforwards 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 of a change in tax rules on deferred tax assets and liabilities is recognized in operations in the year of change. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized.   As of the date of this filing, the Company is current in filing their tax returns. The last return filed by the Company was December 31, 2019, and the Company has not accrued any potential penalties or interest from that period forward.

Basic and Diluted Loss Per Share   In accordance with ASC Topic 280 – “Earnings Per Share”, the basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

Recent Accounting Pronouncements   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaces existing revenue recognition guidance. The updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard on January 1, 2018, using a modified retrospective approach, with the cumulative effect of initially applying the standard recognized in retained earnings at the date of adoption.   In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted the new lease guidance effective January 1, 2019.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted the standard in the first quarter of fiscal 2020 and there was no material impact.

Financial assets and liabilities measured at fair value on a recurring basis:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td style="text-align: center; white-space: nowrap">Input</td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30, 2020</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31, 2019</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Level</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Fair Value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 51%; text-align: justify; padding-bottom: 1pt">Derivative Liability</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="width: 14%; text-align: center; padding-bottom: 1pt">3</td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">1,285,625</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="width: 3%; padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; width: 1%; text-align: left">$</td> <td style="border-bottom: black 1pt solid; width: 11%; text-align: right">2,273,269</td> <td style="width: 1%; text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify; padding-bottom: 2.5pt">Total Financial Liabilities</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,285,625</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">2,273,269</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td></tr> </table>

Property and equipment consisted of the following at September 30, 2020 and December 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 72%; text-align: left">Computer Equipment</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">18,313</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">18,313</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Leasehold Improvements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,549</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,549</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td>Machinery</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">250,762</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">250,762</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Vehicles</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,717</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,717</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td>Total</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">324,341</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">324,341</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(238,978</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(208,139</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt">Net</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">85,363</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">116,202</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td></tr> </table>

As of September 30, 2020 and December 31, 2019, long term debt was comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Long term debt</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 66%; text-align: left">    Equipment lease</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">—</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,952</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Equipment loan</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">115,614</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">115,614</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>    Line of credit</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">102,329</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">96,664</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; padding-bottom: 1pt">    Other loans</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">61,588</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">93,657</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Total long term debt</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">279,531</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">307,887</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>

As of September 30, 2020 and December 31, 2019, accrued liabilities were comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Accrued liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="width: 66%; text-align: left">    Accrued wages</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">125,569</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,784</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Credit card</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,893</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">16,659</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">    Customer deposits</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">103,550</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">    Payroll liabilities</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(103</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(644</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">    Sales tax payable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">32,740</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">35,740</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="padding-bottom: 1pt">    Warranty</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Total accrued expenses</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">286,649</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">62,539</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>

Changes in unearned revenue for the periods ended September 30, 2020 and December 31, 2019 were as follows:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 66%; text-align: left">Unearned revenue, beginning of the period</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,511,096</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,905,346</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">   Billings in excess of revenue during the period</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">316,347</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">536,420</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; padding-bottom: 1pt">   Recognition of unearned revenue in prior periods</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,348,598</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(930,670</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Unearned revenue, end of the period</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">478,845</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1,511,096</td> <td style="text-align: left; white-space: nowrap"> </td></tr> </table>

As of September 30, 2020 and December 31, 2019, notes payable were comprised of the following:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">Original</td> <td> </td> <td> </td> <td style="text-align: center; white-space: nowrap">Original</td> <td> </td> <td style="text-align: center; white-space: nowrap">Due</td> <td> </td> <td style="text-align: center; white-space: nowrap">Interest</td> <td> </td> <td style="text-align: center; white-space: nowrap">Conversion</td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Note Amount</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Note Date</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Date</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Rate</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">Rate</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 17%; text-align: left; white-space: nowrap">APG Capital #2</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">31,500</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">6/25/2018</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">6/25/2019</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">12%</td> <td style="width: 2%"> </td> <td style="width: 9%; text-align: center">Variable</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">—</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 9%; text-align: right">31,500</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">84,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">1/10/2018</td> <td> </td> <td style="text-align: center">10/10/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,285</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">175,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">2/6/2018</td> <td> </td> <td style="text-align: center">11/6/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">175,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">90,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">3/6/2018</td> <td> </td> <td style="text-align: center">12/6/2018</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">90,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #5</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">6/14/2018</td> <td> </td> <td style="text-align: center">3/14/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #6</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">75,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/13/2018</td> <td> </td> <td style="text-align: center">5/13/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">75,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #7</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/11/2018</td> <td> </td> <td style="text-align: center">7/11/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #8</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,750</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">12/20/2018</td> <td> </td> <td style="text-align: center">9/20/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,750</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #9</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">57,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">4/12/2019</td> <td> </td> <td style="text-align: center">1/12/2020</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">57,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Auctus Fund #10</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/22/2020</td> <td> </td> <td style="text-align: center">7/22/2020</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Auctus Fund #11</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/19/2020</td> <td> </td> <td style="text-align: center">8/19/2021</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">CBP #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/1/2020</td> <td> </td> <td style="text-align: center">5/1/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">CBP #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/23/2020</td> <td> </td> <td style="text-align: center">7/23/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">30,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">EMA Financial #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">50,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">12/15/2017</td> <td> </td> <td style="text-align: center">12/15/2018</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">8,474</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">EMA Financial #3</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">3/5/2018</td> <td> </td> <td style="text-align: center">3/5/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,305</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">EMA Financial #4</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/10/2018</td> <td> </td> <td style="text-align: center">7/10/2019</td> <td> </td> <td style="text-align: center">24%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">EMA Financial #6</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">80,500</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">8/17/2020</td> <td> </td> <td style="text-align: center">5/17/2021</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">80,500</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Emerging Corp Cap #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">83,333</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">2/12/2018</td> <td> </td> <td style="text-align: center">2/11/2019</td> <td> </td> <td style="text-align: center">22%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">34,857</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">74,933</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Emerging Corp Cap #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">10/31/2018</td> <td> </td> <td style="text-align: center">10/31/2019</td> <td> </td> <td style="text-align: center">12%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">110,000</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="white-space: nowrap">Optempus #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/2/2020</td> <td> </td> <td style="text-align: center">7/2/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Optempus #2</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/7/2020</td> <td> </td> <td style="text-align: center">7/2/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">25,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #11</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">4/6/2020</td> <td> </td> <td style="text-align: center">4/6/321</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">73,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Power Up Lending #12</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/4/2020</td> <td> </td> <td style="text-align: center">5/4/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #13</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">63,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">6/3/2020</td> <td> </td> <td style="text-align: center">6/3/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">63,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left; white-space: nowrap">Power Up Lending #14</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">43,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">7/30/2020</td> <td> </td> <td style="text-align: center">7/30/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">43,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; white-space: nowrap">Power Up Lending #15</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">9/21/2020</td> <td> </td> <td style="text-align: center">9/21/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">53,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="white-space: nowrap">Tri-Bridge #1</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: center">5/26/2020</td> <td> </td> <td style="text-align: center">5/26/2021</td> <td> </td> <td style="text-align: center">10%</td> <td> </td> <td style="text-align: center">Variable</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,000</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; white-space: nowrap">Tri-Bridge #2</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt">25,000</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7/24/2020</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">7/24/2021</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">10%</td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt">Variable</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">25,000</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: right; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">773,357</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">933,247</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td colspan="13" style="text-align: left; padding-left: 17.3pt; white-space: nowrap">Debt discount</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(642,097</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(100,137</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td colspan="12" style="text-align: left; padding-bottom: 1pt; padding-left: 17.3pt; white-space: nowrap">Financing costs/Original issue discount</td> <td style="text-align: right; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(55,356</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(3,726</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td colspan="13" style="text-align: left; padding-bottom: 2.5pt; padding-left: 17.3pt; font-weight: bold; white-space: nowrap">Notes payable, net of discount</td> <td style="padding-bottom: 2.5pt; font-weight: bold"> </td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-weight: bold">75,904</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double; font-weight: bold"> </td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold">$</td> <td style="border-bottom: black 2.5pt double; text-align: right; font-weight: bold">829,384</td> <td style="border-bottom: black 2.5pt double; text-align: left; font-weight: bold; white-space: nowrap"> </td></tr> </table>

The following table represents the Company’s derivative liability activity for the embedded conversion features for convertible notes and warrants for the period ending September 30, 2020 and December 31, 2019:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2019</td> <td style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 66%">Balance, beginning of period</td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,273,269</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td> <td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">15,347,154</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Initial recognition of derivative liability</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,675,034</td> <td style="text-align: left; white-space: nowrap"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: left">Conversion of derivative instruments to Common Stock</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(4,960,896</td> <td style="text-align: left; white-space: nowrap">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(5,077</td> <td style="text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 1pt">Mark-to-Market adjustment to fair value</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">298,218</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(13,068,808</td> <td style="border-bottom: black 1pt solid; text-align: left; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="padding-bottom: 2.5pt">Balance, end of period</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,285,625</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td> <td style="border-bottom: black 2.5pt double"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">2,273,269</td> <td style="border-bottom: black 2.5pt double; text-align: left; white-space: nowrap"> </td></tr> </table>

The deferred tax asset and the valuation allowance consist of the following at September 30, 2020:   <table cellspacing="0" cellpadding="0" style="font: 10pt/normal Times New Roman, Times, Serif; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td> </td> <td colspan="2" style="text-align: center; white-space: nowrap">September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; white-space: nowrap"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; white-space: nowrap">2020</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="width: 86%; text-align: justify">Net operating loss</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">3,509,865</td> <td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Statutory rate</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">21</td> <td style="text-align: left; white-space: nowrap">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Expected tax recovery</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">737,072</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; padding-bottom: 1pt">Change in valuation allowance</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(737,072</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Income tax provision</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify">Components of deferred tax asset:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify">Non-capital tax loss carry-forwards</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">737,072</td> <td style="text-align: left; white-space: nowrap"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: valuation allowance</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(737,072</td> <td style="text-align: left; padding-bottom: 1pt; white-space: nowrap">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">—</td> <td style="text-align: left; padding-bottom: 2.5pt; white-space: nowrap"> </td></tr> </table>

-177999 -50586 -177999 -50586 -1026700 -1026700

97298

-987447

-616357

616356 632339 -15719 -264 -185 232921 138355 371091 632339244 -263823 -185177 232920612 4000000

129

93090

500000

400000

161202720

161202

-161202

423360

Organization and Description of Business   Located in Grass Valley, CA, BrewBilt is one of the only California companies that custom designs, hand crafts, and integrates processing, fermentation and distillation processing systems for the craft beer, cannabis and hemp industries using “Best in Class” American made components integrated with stainless steel processing vessels using only American made steel. Founded in 2014, the company began in a backyard shop by Jeff Lewis with a vision of creating a profitable company in “Rural America” by hiring excellent personnel, designing and fabricating products to exceed customer’s expectations and compensating craftsmen with living wages and profit sharing to financially sustain their families within the community. Mr. Lewis has 15+ years of experience as a craft beer brewer, a custom tank/vessel designer, fabrication and integration expert and business owner who initially founded Portland Kettle Works, a nationally recognized manufacturer of craft beer brewing equipment located in the Northwest.   BrewBilt has been built by having strong relationships with local suppliers of raw materials, equipment and services in California, an aggressive referral network of satisfied customers nationwide, and an Advisory Board consisting of successful business leaders that provide valuable product feedback and business expertise to management. The craft brewing & spirits industries continue to grow worldwide. California is where craft brewing began and now has over 900 operating breweries – being centrally located in this booming market was a large draw for BrewBilt to locate its manufacturing facility in the Sierra foothills.   All BrewBilt products are designed and fabricated as “food grade” quality which enables the company to build vessels for food & beverage processing , the company is now building systems that are pharmaceutical grade for clients involved in distillation for the cannabis and hemp industries, thus making the revenue potential much greater. BrewBilt buys materials and components mostly from California suppliers which enables them to closely monitor quality, while the company’s revenues are generated from sales to customers throughout the country. The company is aggressively pursuing international orders and has held meetings with the Center for International Trade Development and U.S. Commercial Service to develop international opportunities. Presently, a great deal of sales interest in coming from Mexico, Japan, Europe, and Australia.   BrewBilt competes against a number of companies, most of which are selling mass produced equipment from China made from less costly inferior quality Chinese steel which often is neither food nor pharmaceutical grade quality. While this broader market is very competitive, there continues to be little competition and strong market demand for higher quality, custom designed, hand crafted and integrated systems that BrewBilt produces.   In July of 2016, BrewBilt moved from the small facility in Nevada City, CA to lease an eight thousand (8,000) square foot manufacturing facility in Grass Valley, CA. This facility was purchased by BrewBilt in January 2018 and upgraded with substantial tenant improvements. BrewBilt is prepared to expand again by leasing an additional seventy-six hundred (7,600) square feet in the same facility. BrewBilt obtains the majority of its leads through customer referrals and from online marketplaces. The company’s website is being expanded for online sales to include online educational/marketing videos that feature the company and its expanded integrated product line for the cannabis and hemp industries. BrewBilt has also created distribution sales agreements with individuals and companies to represent BrewBilt in both the domestic and international markets.   The former company, Vet Online Supply Inc, a Florida corporation, was incorporated on May 31, 2014. Vet Online Supply Inc. manufactured and distributed wholistic CBD based pet products. On November 22, 2019, Vet Online Supply and Brewbilt Manufacturing (“BrewBilt”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) and completed a merger, whereby Brewbilt merged with and into Vet Online Supply, with BrewBilt remaining as the surviving entity (the “Merger”). Under U.S. generally accepted accounting principles, the merger is treated as a “reverse merger” under the purchase method of accounting, with BrewBilt as the accounting acquirer.   On January 21, 2020, the Company filed Articles of Amendment to change its name to “BrewBilt Manufacturing Inc.   The Company’s common stock will continue to trade on the OTCQB Market under the new Symbol “BBRW,” and the CUSIP number for the Company’s common stock is now 10756L108. Outstanding stock certificates for shares of the Company are not affected by the name change, and they continue to be valid and need not be exchanged.

103550

34029

EX-101.SCH 7 bbrw-20200930.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - GOING CONCERN link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - MERGER TRANSACTION link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - PREPAID EXPENSES link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - PROPERTY AND EQUIPMENT link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - LEASES link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - ACCURED LIABILITIES link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - CONVERTIBLE NOTES PAYABLE link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - DERIVATIVE LIABILITIES link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - RELATED PARTY TRANSACTIONS link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - LONG TERM DEBT link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - PREFERRED STOCK link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - COMMON STOCK link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - INCOME TAXES link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - COMMITMENTS link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - PROPERTY AND EQUIPMENT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - LEASES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - ACCURED LIABILITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - CONVERTIBLE NOTES PAYABLE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - DERIVATIVE LIABIITIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - LONG TERM DEBT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - INCOME TAXES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - MERGER TRANSACTION (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - PREPAID EXPENSES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - PROPERTY AND EQUIPMENT (Details) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - LEASES (Details) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - LEASES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - ACCURED LIABILITIES (Details) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS (Details) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - CONVERTIBLE NOTES PAYABLE (Details) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - DERIVATIVE LIABIITIES (Details) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - DERIVATIVE LIABIITIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - LONG TERM DEBT (Details) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - COMMON STOCK (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - INCOME TAXES (Details) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - COMMITMENTS AND CONTINGENCIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 bbrw-20200930_cal.xml XBRL CALCULATION FILE EX-101.DEF 9 bbrw-20200930_def.xml XBRL DEFINITION FILE EX-101.LAB 10 bbrw-20200930_lab.xml XBRL LABEL FILE Equity Components [Axis] Accumulated Deficit Common Stock Additional Paid-In Capital Class of Stock [Axis] Series A Preferred Stock [Member] Series B Preferred Stock [Member] Concentration Risk Benchmark [Axis] Liabilities, Total [Member] Range [Axis] Minimum [Member] Maximum [Member] Measurement Frequency [Axis] Fair Value, Measurements, Recurring [Member] Financial Instrument [Axis] Derivative [Member] Fair Value Hierarchy and NAV [Axis] Fair Value, Inputs, Level 3 [Member] Short-term Debt, Type [Axis] APG Capital #2 Auctus Fund #2 Auctus Fund #3 Auctus Fund #4 Auctus Fund #5 Auctus Fund #6 EMA Financial #2 EMA Financial #3 Emerging Corp Capital #1 Auctus Fund #7 Auctus Fund #8 EMA Financial #4 Emerging Corp Capital #2 Auctus Fund #9 Preferred Stock Auctus Fund #10 Long-Lived Tangible Asset [Axis] Computer Equipment Leasehold Improvements Machinery Vehicles Business Acquisition [Axis] Merger Agreement EMA Financial #5 CBP #3 Power Up Lending #11 Power Up Lending #12 Power Up Lending #13 Tri-Bridge Auctus Fund #11 CBP #4 Optempus #1 Optempus #2 Power Up Lending #14 Power Up Lending #15 Tri-Bridge #2 Document and Entity Information [Abstract] Document Type Amendment Flag Amendment Description Document Registration Statement Document Annual Report Document Quarterly Report Document Transition Report Document Shell Company Report Document Shell Company Event Date Document Period Start Date Document Period End Date Current Fiscal Year End Date Entity File Number Entity Registrant Name Entity Central Index Key Entity Primary SIC Number Entity Tax Identification Number Entity Incorporation, State or Country Code Entity Address, Address Line One Entity Address, Address Line Two Entity Address, Address Line Three Entity Address, City or Town Entity Address, State or Province Entity Address, Country Entity Address, Postal Zip Code Country Region City Area Code Local Phone Number Extension Written Communications Soliciting Material Pre-commencement Tender Offer Pre-commencement Issuer Tender Offer Title of 12(b) Security No Trading Symbol Flag Trading Symbol Security Exchange Name Title of 12(g) Security Security Reporting Obligation Annual Information Form Audited Annual Financial Statements Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Interactive Data Current Entity Filer Category Entity Small Business Entity Emerging Growth Company Elected Not To Use the Extended Transition Period Document Accounting Standard Other Reporting Standard Item Number Entity Shell Company Entity Public Float Entity Bankruptcy Proceedings, Reporting Current Entity Common Stock, Shares Outstanding Documents Incorporated by Reference [Text Block] Document Fiscal Period Focus Document Fiscal Year Focus Statement [Table] Statement [Line Items] ASSETS Current assets Cash Accounts receivable Earnings in excess of billings Inventory Prepaid expenses Other current assets Total current assets Property, plant and equipment, net Right-of-use asset Deposits TOTAL ASSETS LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES Current liabilities Accounts payable Accrued interest Accrued liabilities Billings in excess of revenue Convertible notes payable, net of discount Derivative liabilities Liability for unissued shares Promissory notes payable, net of discount Related party liabilities Total current liabilities Long term debt Operating lease liabilities Total liabilities Commitments and Contingencies SHAREHOLDERS' EQUITY (DEFICIT) Preferred stock, Series A: $0.001 par value; 30,000,000 shares authorized; 851,000 shares issued and outstanding at September 30, 2020; 400,000 shares issued and outstanding at December 31, 2019; Preferred stock, Series B: $0.001 par value; 1,000 shares authorized; 1,000 shares issued and outstanding at June 30, 2020; 1,000 shares issued and outstanding at December 31, 2019 Common stock, $0.001 par value; 10,000,000,000 authorized; 1,874,269,389 shares issued and outstanding at September 30, 2020; 10,343,330 shares issued and outstanding at December 31, 2019 Additional paid in capital Accumulated deficit Total stockholder's deficit TOTAL LIABILITIES & EQUITY Preferred stock, par value Preferred stock, authorized Preferred stock, issued Preferred stock, outstanding Common stock, par value Common stock, authorized Common stock, issued Common stock, outstanding Income Statement [Abstract] Net sales Cost of goods sold Gross profit (loss) Operating expenses: Consulting fees G&A expenses Professional fees Salaries and wages Total operating expense Loss from operations Other income (expenses) Gain (loss) on derivative liability valuation Loss on conversion Interest expenses Total other income/expenses Net loss before income taxes Income tax expense Net (loss) Per share information Weighted number of common shares outstanding, basic and diluted Net loss per common share Beginning balance, amount Beginning balance, in shares Capital distributions Conversion of promissory notes to stock Conversion of promissory notes to stock, in shares Derivative settlements Cancellation of shares issued for services Cancellation of shares issued for services Preferred shares issued per agreement EX-101.PRE 11 bbrw-20200930_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 11, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Current Fiscal Year End Date	--12-31
Entity File Number	000-55787
Entity Registrant Name	BrewBilt Manufacturing Inc.
Entity Central Index Key	0001641751
Entity Tax Identification Number	47-0990750
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	110 Spring Hill Road
Entity Address, Address Line Two	#10 Grass Valley
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95945
City Area Code	530
Local Phone Number	802-5023
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,462,792,070
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

XML 13 R2.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash	$ 80,058	$ 1,444
Accounts receivable	54,940	323,779
Earnings in excess of billings	191,162	53,038
Inventory	47,151	47,280
Prepaid expenses	883	9,467
Other current assets		156
Total current assets	374,194	435,164
Property, plant and equipment, net	85,363	116,202
Right-of-use asset	368,248	392,664
Deposits	16,980	4,980
TOTAL ASSETS	844,785	949,010
Current liabilities
Accounts payable	809,192	947,655
Accrued interest	79,040	250,592
Accrued liabilities	286,649	62,539
Billings in excess of revenue	478,845	1,511,096
Convertible notes payable, net of discount	75,904	829,384
Derivative liabilities	1,285,625	2,273,269
Liability for unissued shares	175,825	151,325
Promissory notes payable, net of discount	97,298
Related party liabilities	142,152	84,072
Total current liabilities	3,430,530	6,109,932
Long term debt	279,531	307,887
Operating lease liabilities	368,248	392,664
Total liabilities	4,078,309	6,810,483
Commitments and Contingencies
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value; 10,000,000,000 authorized; 1,874,269,389 shares issued and outstanding at September 30, 2020; 10,343,330 shares issued and outstanding at December 31, 2019	1,874,269	10,343
Additional paid in capital	(5,641,396)	(15,240,774)
Accumulated deficit	532,751	9,368,557
Total stockholder's deficit	(3,233,524)	(5,861,473)
TOTAL LIABILITIES & EQUITY	844,785	949,010
Series A Preferred Stock [Member]
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred stock, Series A: $0.001 par value; 30,000,000 shares authorized; 851,000 shares issued and outstanding at September 30, 2020; 400,000 shares issued and outstanding at December 31, 2019; Preferred stock, Series B: $0.001 par value; 1,000 shares authorized; 1,000 shares issued and outstanding at June 30, 2020; 1,000 shares issued and outstanding at December 31, 2019	851	400
Series B Preferred Stock [Member]
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred stock, Series A: $0.001 par value; 30,000,000 shares authorized; 851,000 shares issued and outstanding at September 30, 2020; 400,000 shares issued and outstanding at December 31, 2019; Preferred stock, Series B: $0.001 par value; 1,000 shares authorized; 1,000 shares issued and outstanding at June 30, 2020; 1,000 shares issued and outstanding at December 31, 2019	$ 1	$ 1

XML 14 R3.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	10,000,000,000	5,000,000,000
Common stock, issued	1,874,269,389	10,343,330
Common stock, outstanding	1,874,269,389	10,343,330
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	30,000,000	30,000,000
Preferred stock, issued	851,000	400,000
Preferred stock, outstanding	851,000	400,000
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	1,000	1,000
Preferred stock, issued	1,000	1,000
Preferred stock, outstanding	1,000	1,000

XML 15 R4.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 927,012	$ 558,656	$ 1,022,499	$ 1,409,153
Cost of goods sold	163,525	453,610	220,795	1,104,451
Gross profit (loss)	763,487	105,046	801,704	304,702
Operating expenses:
Consulting fees	17,163	15,000	4,054,413	45,000
G&A expenses	46,293	100,971	221,059	305,153
Professional fees	78,850		195,570	7,451
Salaries and wages	70,628	124,248	286,916	404,067
Total operating expense	212,934	240,219	4,757,958	761,671
Loss from operations	550,553	(135,173)	(3,956,254)	(456,969)
Other income (expenses)
Gain (loss) on derivative liability valuation	305,406		(2,997,742)
Loss on conversion	(616,357)		(987,447)
Interest expenses	(444,846)	(7,066)	(887,563)	(34,029)
Total other income/expenses	(755,797)	(7,066)	(4,872,752)	(34,029)
Net loss before income taxes	(205,244)	(142,239)	(8,829,006)	(490,998)
Income tax expense	(6,800)		(6,800)
Net (loss)	$ (212,044)	$ (142,239)	$ (8,835,806)	$ (490,998)
Per share information
Weighted number of common shares outstanding, basic and diluted	1,359,512,034		529,606,195
Net loss per common share	$ (0.00016)		$ (0.01668)

XML 16 R5.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($)	Preferred Stock Series A Preferred Stock [Member]	Preferred Stock Series B Preferred Stock [Member]	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, amount at Dec. 31, 2018				$ (303,375)	$ (722,748)	$ (1,026,123)
Capital distributions				(22,296)		(22,296)
Net loss					(262,897)	(262,897)
Ending balance, amount at Mar. 31, 2019				(325,671)	(985,645)	(1,311,316)
Beginning balance, amount at Dec. 31, 2018				(303,375)	(722,748)	(1,026,123)
Net loss						(490,998)
Ending balance, amount at Sep. 30, 2019				(377,818)	(1,213,746)	(1,591,564)
Ending balance, in shares at Sep. 30, 2019
Beginning balance, amount at Mar. 31, 2019				(325,671)	(985,645)	(1,311,316)
Capital distributions				(26,879)		(26,879)
Net loss					(85,862)	(85,862)
Ending balance, amount at Jun. 30, 2019				(352,550)	(1,071,507)	(1,424,057)
Capital distributions				(25,268)		(25,268)
Net loss					(142,239)	(142,239)
Ending balance, amount at Sep. 30, 2019				(377,818)	(1,213,746)	(1,591,564)
Ending balance, in shares at Sep. 30, 2019
Beginning balance, amount at Dec. 31, 2019	$ 400	$ 1	$ 10,343	(15,240,774)	9,368,557	$ (5,861,473)
Beginning balance, in shares at Dec. 31, 2019	400,000	1,000	10,343,330			10,343,330
Conversion of promissory notes to stock			$ 32,261	366,617		$ 398,878
Conversion of promissory notes to stock, in shares			32,260,676
Derivative settlements				(50,586)		(50,586)
Cancellation of shares issued for services			$ (8,008)	(42,257)		(50,265)
Cancellation of shares issued for services			(8,008,334)
Preferred shares issued per agreement	$ 500					500
Preferred shares issued per agreement	500,000
Net loss					(2,136,389)	(2,136,389)
Ending balance, amount at Mar. 31, 2020	$ 900	$ 1	$ 34,596	(14,967,000)	7,232,168	(7,699,335)
Ending balance, in shares at Mar. 31, 2020	900,000	1,000	34,595,672
Beginning balance, amount at Dec. 31, 2019	$ 400	$ 1	$ 10,343	(15,240,774)	9,368,557	$ (5,861,473)
Beginning balance, in shares at Dec. 31, 2019	400,000	1,000	10,343,330			10,343,330
Net loss						$ (8,835,806)
Ending balance, amount at Sep. 30, 2020	$ 851	$ 1	$ 1,874,269	(5,641,396)	532,751	$ (3,233,524)
Ending balance, in shares at Sep. 30, 2020	851,000	1,000	1,874,269,389			1,874,269,389
Beginning balance, amount at Mar. 31, 2020	$ 900	$ 1	$ 34,596	(14,967,000)	7,232,168	$ (7,699,335)
Beginning balance, in shares at Mar. 31, 2020	900,000	1,000	34,595,672
Conversion of promissory notes to stock			$ 259,074	4,421,942		4,681,016
Conversion of promissory notes to stock, in shares			259,074,233
Derivative settlements				(1,026,700)		(1,026,700)
Preferred shares issued per agreement	$ 400			3,999,600		4,000,000
Preferred shares issued per agreement	400,000
Preferred stock converted to common stock	$ (185)		$ 232,921	138,355		371,091
Preferred stock converted to common stock (in shares)	(185,177)		232,920,612
Net loss					(6,487,373)	(6,487,373)
Ending balance, amount at Jun. 30, 2020	$ 1,115	$ 1	$ 526,591	(7,433,803)	744,795	(6,161,301)
Ending balance, in shares at Jun. 30, 2020	1,114,823	1,000	526,590,517
Conversion of promissory notes to stock			$ 554,137	2,147,327		2,701,464
Conversion of promissory notes to stock, in shares			554,136,908
Derivative settlements				(177,999)		(177,999)
Preferred stock converted to common stock	$ (264)		$ 632,339	(15,719)		616,356
Preferred stock converted to common stock (in shares)	(263,823)		632,339,244
Warrant exercise			$ 161,202	(161,202)
Warrant exercise, in shares			161,202,720
Net loss					(212,044)	(212,044)
Ending balance, amount at Sep. 30, 2020	$ 851	$ 1	$ 1,874,269	$ (5,641,396)	$ 532,751	$ (3,233,524)
Ending balance, in shares at Sep. 30, 2020	851,000	1,000	1,874,269,389			1,874,269,389

XML 17 R6.htm IDEA: XBRL DOCUMENT

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities
Net profit (loss)	$ (8,835,806)	$ (490,998)
Adjustments to reconcile net income to net cash provided from operating activities:
Amortization of convertible debt discount	473,587
Change in derivative liability	2,997,742
Loss on conversion	987,447
Common stock issued for services	(25,000)
Preferred stock issued for services	4,000,000
Liability for unissued shares due to agreements	25,000
Decrease (increase) in operating assets
Accounts receivable	268,839	533,023
Deposits	(12,000)
Earnings in excess of billings	(138,124)	301,841
Inventory	129
Prepaid expenses	8,584	(2,863)
Other assets	156	2,082
Accounts payable	(119,728)	(895)
Accrued interest	403,736	5,982
Accrued liabilities	224,110	(5,049)
Earnings in excess of revenues	(1,032,251)	(228,490)
Long term debt	(28,356)	(100,133)
Net cash provided( used by) operating activities	(801,935)	14,500
Cash Flows From Investing Activities
Property, plant and equipment, reductions	30,839	36,363
Net cash used from investing activities	30,839	36,363
Cash Flows From Financing Activities
Contributed capital		(74,443)
Proceeds from convertible debt	698,540
Proceeds from promissory notes	93,090
Related party liabilities	58,080
Net cash provided from financing activities	849,710	(74,443)
Net increase (decrease) in cash	78,614	(23,580)
Cash, beginning of year	1,444	43,285
Cash, end of year	80,058	19,705
Supplemental Disclosures of Cash Flow Information:
Cash paid for income taxes
Cash paid for interest		34,029
Schedule of non-cash investing & financing activities
Lease adoption recognition		$ 423,360

XML 18 R7.htm IDEA: XBRL DOCUMENT

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Description of Business

On January 21, 2020, the Company filed Articles of Amendment to change its name to “BrewBilt Manufacturing Inc.

Financial Statement Presentation

The audited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Fiscal year end

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

Use of Estimates

Cash Equivalents

The Company considers all highly liquid investments with maturities of 90 days or less from the date of purchase to be cash equivalents.

Revenue Recognition and Related Allowances

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Goodwill

Warranty

Accounts Payable and Accrued Expenses

Fair Value of Financial Instruments

These levels are:

Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Financial assets and liabilities measured at fair value on a recurring basis:

	Input	September 30, 2020		December 31, 2019
	Level	Fair Value		Fair Value
Derivative Liability	3	$	1,285,625	$	2,273,269
Total Financial Liabilities		$	1,285,625	$	2,273,269

Income Taxes

Basic and Diluted Loss Per Share

Recent Accounting Pronouncements

XML 19 R8.htm IDEA: XBRL DOCUMENT

GOING CONCERN

9 Months Ended

Sep. 30, 2020

Going Concern [Abstract]

GOING CONCERN

NOTE 2 – GOING CONCERN

XML 20 R9.htm IDEA: XBRL DOCUMENT

MERGER TRANSACTION

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

MERGER TRANSACTION

NOTE 3 – MERGER TRANSACTION

XML 21 R10.htm IDEA: XBRL DOCUMENT

PREPAID EXPENSES

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

PREPAID EXPENSES

NOTE 4 – PREPAID EXPENSES

As of September 30, 2020, the Company accrued prepaid insurance expenses of $883 and as of December 31, 2019, the Company accrued prepaid insurance expenses and employee wages of $9,467.

XML 22 R11.htm IDEA: XBRL DOCUMENT

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at September 30, 2020 and December 31, 2019:

	September 30,			December 31,
	2020			2019
Computer Equipment	$	18,313		$	18,313
Leasehold Improvements		48,549			48,549
Machinery		250,762			250,762
Vehicles		6,717			6,717
Total		324,341			324,341
Less accumulated depreciation		(238,978	)		(208,139	)

Net	$	85,363		$	116,202

XML 23 R12.htm IDEA: XBRL DOCUMENT

LEASES

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

LEASES

NOTE 6 – LEASES

Operating Leases

ROU assets and lease liabilities related to our operating lease is as follows:

	September 30,		December 31,
	2020		2019
Right-of-use assets	$	368,248	$	392,664
Current lease liabilities		—		—
Non-current lease liabilities	$	368,248	$	392,664

XML 24 R13.htm IDEA: XBRL DOCUMENT

ACCURED LIABILITIES

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

ACCURED LIABILITIES

NOTE 7 – ACCURED LIABILITIES

As of September 30, 2020 and December 31, 2019, accrued liabilities were comprised of the following:

	September 30,			December 31,
	2020			2019
Accrued liabilities
Accrued wages	$	125,569		$	5,784
Credit card		19,893			16,659
Customer deposits		103,550			—
Payroll liabilities		(103	)		(644	)
Sales tax payable		32,740			35,740
Warranty		5,000			5,000
Total accrued expenses	$	286,649		$	62,539

XML 25 R14.htm IDEA: XBRL DOCUMENT

BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS

NOTE 8 – BILLINGS IN EXCESS OF REVENUE AND EARNINGS IN EXCESS OF BILLINGS

Changes in unearned revenue for the periods ended September 30, 2020 and December 31, 2019 were as follows:

	September 30,			December 31,
	2020			2019
Unearned revenue, beginning of the period	$	1,511,096		$	1,905,346
Billings in excess of revenue during the period		316,347			536,420
Recognition of unearned revenue in prior periods		(1,348,598	)		(930,670	)
Unearned revenue, end of the period	$	478,845		$	1,511,096

XML 26 R15.htm IDEA: XBRL DOCUMENT

CONVERTIBLE NOTES PAYABLE

9 Months Ended

Sep. 30, 2020

Convertible Notes Payable

CONVERTIBLE NOTE PAYABLE

NOTE 9 – CONVERTIBLE NOTES PAYABLE

As of September 30, 2020 and December 31, 2019, notes payable were comprised of the following:

	Original		Original	Due	Interest	Conversion	September 30,			December 31,
	Note Amount		Note Date	Date	Rate	Rate	2020			2019
APG Capital #2		31,500	6/25/2018	6/25/2019	12%	Variable		—			31,500
Auctus Fund #2		84,000	1/10/2018	10/10/2018	24%	Variable		—			31,285
Auctus Fund #3		175,000	2/6/2018	11/6/2018	24%	Variable		—			175,000
Auctus Fund #4		90,000	3/6/2018	12/6/2018	24%	Variable		—			90,000
Auctus Fund #5		100,000	6/14/2018	3/14/2019	24%	Variable		—			100,000
Auctus Fund #6		75,000	8/13/2018	5/13/2019	12%	Variable		—			75,000
Auctus Fund #7		25,000	10/11/2018	7/11/2019	12%	Variable		—			25,000
Auctus Fund #8		25,750	12/20/2018	9/20/2019	12%	Variable		—			25,750
Auctus Fund #9		57,000	4/12/2019	1/12/2020	12%	Variable		—			57,000
Auctus Fund #10		31,000	7/22/2020	7/22/2020	12%	Variable		—			31,000
Auctus Fund #11		113,000	8/19/2020	8/19/2021	12%	Variable		113,000			—
CBP #3		30,000	5/1/2020	5/1/2021	10%	Variable		30,000			—
CBP #4		30,000	7/23/2020	7/23/2021	10%	Variable		30,000			—
EMA Financial #2		50,000	12/15/2017	12/15/2018	12%	Variable		—			8,474
EMA Financial #3		100,000	3/5/2018	3/5/2019	24%	Variable		—			73,305
EMA Financial #4		25,000	10/10/2018	7/10/2019	24%	Variable		—			25,000
EMA Financial #6		80,500	8/17/2020	5/17/2021	12%	Variable		80,500			—
Emerging Corp Cap #1		83,333	2/12/2018	2/11/2019	22%	Variable		34,857			74,933
Emerging Corp Cap #2		110,000	10/31/2018	10/31/2019	12%	Variable		110,000			110,000
Optempus #1		25,000	7/2/2020	7/2/2021	10%	Variable		25,000			—
Optempus #2		25,000	7/7/2020	7/2/2021	10%	Variable		25,000			—
Power Up Lending #11		73,000	4/6/2020	4/6/321	10%	Variable		73,000			—
Power Up Lending #12		53,000	5/4/2020	5/4/2021	10%	Variable		53,000			—
Power Up Lending #13		63,000	6/3/2020	6/3/2021	10%	Variable		63,000			—
Power Up Lending #14		43,000	7/30/2020	7/30/2021	10%	Variable		43,000			—
Power Up Lending #15		53,000	9/21/2020	9/21/2021	10%	Variable		53,000			—
Tri-Bridge #1		15,000	5/26/2020	5/26/2021	10%	Variable		15,000			—
Tri-Bridge #2		25,000	7/24/2020	7/24/2021	10%	Variable		25,000			—
							$	773,357		$	933,247
Debt discount								(642,097	)		(100,137	)
Financing costs/Original issue discount								(55,356	)		(3,726	)
Notes payable, net of discount							$	75,904		$	829,384

As of September 30, 2020, we have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities.

XML 27 R16.htm IDEA: XBRL DOCUMENT

DERIVATIVE LIABILITIES

9 Months Ended

Sep. 30, 2020

Derivative Liabilities

DERIVATIVE LIABILITIES

NOTE 10 – DERIVATIVE LIABILITIES

	September 30,			December 31,
	2020			2019
Balance, beginning of period	$	2,273,269		$	15,347,154
Initial recognition of derivative liability		3,675,034			—
Conversion of derivative instruments to Common Stock		(4,960,896	)		(5,077	)
Mark-to-Market adjustment to fair value		298,218			(13,068,808	)
Balance, end of period	$	1,285,625		$	2,273,269

XML 28 R17.htm IDEA: XBRL DOCUMENT

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2020

RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

Mr. Jef Lewis, Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer

Mr. Samuel Berry, Director

Mr. Daniel Rushford, former President

XML 29 R18.htm IDEA: XBRL DOCUMENT

LONG TERM DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

LONG TERM DEBT

NOTE 12 – LONG TERM DEBT

As of September 30, 2020 and December 31, 2019, long term debt was comprised of the following:

	September 30,		December 31,
	2020		2019
Long term debt
Equipment lease	$	—	$	1,952
Equipment loan		115,614		115,614
Line of credit		102,329		96,664
Other loans		61,588		93,657
Total long term debt	$	279,531	$	307,887

Paycheck Protection Program Loan

XML 30 R19.htm IDEA: XBRL DOCUMENT

PREFERRED STOCK

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

PREFERRED STOCK

NOTE 13 – PREFERRED STOCK

XML 31 R20.htm IDEA: XBRL DOCUMENT

COMMON STOCK

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

COMMON STOCK

NOTE 14 – COMMON STOCK

On March 25, 2020, the Company filed a Certificate of Amendment to increase the number of authorized common shares from 5,000,000,000 to 10,000,000,000 with a par value of $0.001.

As of September 30, 2020, 10,000,000,000 were authorized, of which 1,874,269,389 shares are issued and outstanding.

Warrants

XML 32 R21.htm IDEA: XBRL DOCUMENT

INCOME TAXES

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 15 – INCOME TAX

The deferred tax asset and the valuation allowance consist of the following at September 30, 2020:

	September 30,
	2020
Net operating loss	$	3,509,865
Statutory rate		21	%
Expected tax recovery		737,072
Change in valuation allowance		(737,072	)
Income tax provision	$	—

Components of deferred tax asset:
Non-capital tax loss carry-forwards		737,072
Less: valuation allowance		(737,072	)
Net deferred tax asset	$	—

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

XML 33 R22.htm IDEA: XBRL DOCUMENT

COMMITMENTS

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

NOTE 16 – COMMITMENTS AND CONTINGENCIES

Distribution& Licensing Agreement

Employee Agreement

Lease

Service Agreement

On June 12, 2018, the Company entered into a preventative maintenance service agreement with Atlas Copco Compressions LLC. The agreement is for a period of 5 years, at a cost of $145.13 per month.

XML 34 R23.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS