10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended: September 30, 2020

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ___________ to____________

Commission File Number: 000-55976

OZOP ENERGY SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Nevada	35-2540672
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7 Katelyn Ct

Warwick, NY 10990

(Address of principal executive offices) (zip code)

(845) 544-5112

(Registrant’s telephone number, including area code)

Ozop Surgical Corp.

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

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 shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [  ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [  ] No

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

Large accelerated filer	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[  ]	Smaller reporting company	[X]
(Do not check if a smaller reporting company)		Emerging growth company	[X]

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

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

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

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

As of November 20, 2020, there were 3,263,811,170 shares outstanding of the registrant’s common stock, $0.001 par value per share.

Ozop Energy Solution, Inc.

INDEX
PART I. FINANCIAL INFORMATION
	ITEM 1	Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (Unaudited)	1
		Condensed Consolidated Statement of Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019 (Unaudited)	2
		Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2020 and 2019 (Unaudited)	3
		Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2020 and 2019 (Unaudited)	4
		Notes to Interim Unaudited Condensed Consolidated Financial Statements	5
	ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	31
	ITEM 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
	ITEM 1.	Legal Proceedings	33
	ITEM 1A.	Risk Factors	33
	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
	ITEM 3.	Defaults Upon Senior Securities	33
	ITEM 4.	Mine Safety Disclosures	33
	ITEM 5.	Other Information	33
	ITEM 6.	Exhibits	33
	SIGNATURES		36

OZOP ENERGY SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

	September 30,			December 31,
	2020			2019
ASSETS
Current Assets
Cash	$	1,706,257		$	27,382
Prepaid assets		15,826			12,715
Accounts receivable		60,699			19,774
Inventory		172,180			971,813
Total Current Assets		1,954,962			1,031,684
Operating lease right-of-use asset, net		167,500			-
Property and equipment, net		35,560			15,199
Goodwill		11,396,096			-
License Rights, net of accumulated amortization		140,624			-
TOTAL ASSETS	$	13,694,742		$	1,046,883
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Liabilities
Current Liabilities
Accounts payable and accrued expenses	$	1,513,704		$	1,043,179
Related party liabilities		10,308			27,909
Convertible notes payable, net of discounts		861,507			-
Current portion of notes payable, net of discounts		1,025,962			524,406
Customer deposits		104,460			684,822
Deferred liability		750,000			-
Derivative liabilities		2,250,953			-
Operating lease liability, current portion		73,945			-
Total Current Liabilities		6,590,839			2,280,316
Long Term Liabilities
Note payable, net of discount, net of current portion		290,140			-
Operating lease liability, net of current portion		93,555			-
TOTAL LIABILITIES		6,974,534			2,280,316
Stockholders’ Equity (Deficit)
Preferred stock (10,000,000 shares authorized, par value $0.001)
Series C Preferred Stock (50,000 shares authorized and 50,000 (2020) and 47,500 (2019) issued and outstanding, par value $0.001)		50			48
Series D Preferred Stock (20,000 shares authorized and 20,000 (2020) and 18,667 (2019) issued and outstanding, par value $0.001)		20			19
Series E Preferred Stock (2,500 shares authorized and 1,000 (2020) and 500 (2019) issued and outstanding, par value $0.001)		1			1
Common stock (4,990,000,000 shares authorized par value $0.001; 3,140,453,186 (2020) and -0- (2019) shares issued and outstanding)		3,140,453			-
Additional paid in capital		11,752,789			76,922
Accumulated Deficit		(8,173,908	)		(1,310,422	)
Accumulated comprehensive gain		(7	)		-
Total Stockholders’ Equity (Deficit)		6,720,208			(1,233,433	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	13,694,742		$	1,046,883

See notes to condensed consolidated financial statements.

1

OZOP ENERGY SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(Unaudited)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Revenue	$	246,951		$	176,582		$	1,493,592		$	416,778
Cost of goods sold		271,510			133,267			1,366,672			432,664
Gross profit (loss)		(24,559	)		43,315			126,920			(15,886	)
Operating expenses:
General and administrative, related parties		4,415,919			-			4,415,919			-
General and administrative, other		414,722			101,820			735,564			314,433
Total operating expenses		4,830,641			101,820			5,151,483			314,433
Loss from operations		(4,855,200	)		(58,505	)		(5,024,563	)		(330,319	)
Other (income) expenses:
Interest expense		1,531,256			12,203			1,661,308			41,656
Loss on change in fair value of derivatives		189,612			-			189,612			-
Gain on extinguishment of debt		(12,807	)		-			(12,807	)		-
Total Other Expenses		1,708,061			12,203			1,838,113			41,656
Loss before income taxes		(6,563,262	)		(70,708	)		(6,862,676	)		(371,975	)
Income tax provision		-			-			-			-
Net loss	$	(6,563,262	)	$	(70,708	)	$	(6,862,676	)	$	(371,975	)
Other comprehensive loss:
Foreign currency translation adjustment		(7	)		-			(7	)		-
Comprehensive loss	$	(6,563,269	)	$	(70,708	)	$	(6,862,683	)	$	(371,975	)
Loss per share basic and fully diluted	$	(0.00	)	$	N/A		$	(0.01	)		N/A
Weighted average shares outstanding
Basic and diluted		2,667,510,771			N/A			1,045,384,629			N/A

See notes to condensed consolidated financial statements.

2

OZOP ENERGY SOLUTIONS, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020

(Unaudited)

	Common stock				Series C Preferred Stock				Series D Preferred Stock				Series E Preferred Stock				Accumulated comprehensive			Additional Paid-in			Accumulated			Total Stockholders’ Equity
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		income			Capital			Deficit			(Deficit)
Balances January 1, 2020		-	$	-		47,500	$	48		18,667	$	19		500	$	1	$	-		$	76,922		$	(1,310,422	)		(1,233,434	)
Net income		-		-		-		-										-			-			87,549			87,549
Balances March 31, 2020		-		-		47,500		48		18,667		19		500		1		0			76,922			(1,222,873	)		(1,145,886	)
Net loss		-		-		-		-										-			-			(1,014	)		(1,014	)
Balances June 30, 2020		-		-		47,500		48		18,667		19		500		1		0			76,922			(1,223,887	)		(1,146,898	)
Reverse merger transaction		1,851,930,729		1,851,931		-		-		-		-		-		-		-			(1,033,489	)		-			818,442
Shares issued for conversions of note and interest payable		1,181,993,984		1,181,994		-		-		-		-		-		-		-			7,997,730			-			9,179,724
Shares issued upon cashless exercise of warrants		106,528,473		106,528		-		-		-		-		-		-		-			(106,528	)		-			-
Warrants issued in connection with issuance of debt		-		-		-		-		-		-		-		-		-			531,507			-			531,507
Shares issued pursuant to CEO contract		-		-		2,500		3		1,333		1		500		1		-			4,286,648			-			4,286,652
Foreign currency translation adjustment		-		-		-		-		-		-		-		-		(7	)		-			-			(7	)
Net loss		-		-		-		-		-		-		-		-		-			-			(6,949,211	)		(6,949,211	)
Balances September 30, 2020		3,140,453,186	$	3,140,453		50,000	$	50		20,000	$	20		1,000	$	1	$	(7	)	$	11,752,789		$	(8,173,098	)	$	6,720,208

OZOP ENERGY SOLUTIONS, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019

(Unaudited)

	Common stock				Series C Preferred Stock				Series D Preferred Stock				Series E Preferred Stock				Accumulated comprehensive		Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		income		Capital		Deficit			Equity (Deficit)
Balances January 1, 2019		-	$	-		47,500	$	48		18,667	$	19		500	$	1	$	-	$	76,922	$	(738,827	)	$	(661,839	)
Net loss		-		-								-				-		-		-		(176,122	)		(176,122	)
Balances March 31, 2019		-		-		47,500		48		18,667		19		500		1		-		76,922		(914,949	)		(837,961	)
Net loss for the three months ended June 30, 2019		-		-														-		-		(125,145	)		(125,145	)
Balances June 30, 2019		-		-		47,500		48		18,667		19		500		1		-		76,922		(1,040,094	)		(963,106	)
Net loss for the three months ended September 30, 2019																						(70,708	)		(70,708	)
Balances September 30, 2019		-	$	-		47,500	$	48	$	18,667	$	19	$	500	$	1	$	-	$	76,922	$	(1,110,802	)	$	(1,033,814	)

See notes to condensed consolidated financial statements.

3

OZOP ENERGY SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended September 30,
	2020			2019
Cash flows from operating activities:
Net loss from continuing operations	$	(6,862,676	)	$	(371,975	)
Adjustments to reconcile net loss to net cash used in operations
Non-cash interest expense		1,413,096			-
Amortization and depreciation		34,839			5,445
Loss on fair value change of derivatives		189,612			-
Gain on extinguishment of debt		(12,807	)		-
Stock compensation expense		4,286,648			-
Changes in operating assets and liabilities:
Accounts receivable		(40,925	)		(54,886	)
Inventory		799,633			(471,857	)
Prepaid expenses		(945	)		(13,501	)
Accounts payable and accrued expenses		(96,260	)		380,849
Related party liabilities		9,458			-
Operating lease liabilities		(17,638	)		-
Customer deposits		(580,362	)		489,663
Net cash used in operating activities		(878,327	)		(36,262	)
Cash flows from investing activities:
Cash acquired in acquisition		470,849			-
Advance from affiliate		400,000			-
Purchase of office and computer equipment		(16,233	)		(3,142	)
Proceeds received on deferred liability		750,000			-
Proceeds from shareholders		42,420			110,000
Payments to shareholders		(69,470	)		(99,891	)
Net cash provided by investing activities		1,577,566			6,967
Cash flows from financing activities:
Proceeds from issuances of convertible notes payable		289,000			-
Proceeds from issuances of notes payable		663,000			-
Proceeds from Payroll Protection Program		100,400			-
Proceeds from Economic Disaster Loan		10,000			-
Payments of principal of convertible note payable and notes payable		(82,757	)		(10,193	)
Net cash provided by (used in) financing activities		979,643			(10,193	)
Effects of exchange rate on cash	$	(7	)	$	-
Net increase (decrease) in cash		1,678,875			(39,488	)
Cash, Beginning of period		27,382			47,554
Cash, End of period	$	1,706,257		$	8,066
Supplemental disclosure of cash flow information:
Cash paid for interest	$	120,857		$	41,656
Cash paid for income taxes	$	-		$	-
Schedule of non-cash Investing or Financing Activity:
Original issue discount included in convertible notes payable	$	433,583		$	-
Issuance of common stock upon convertible note and accrued interest conversion	$	1,845,357		$	-
Operating lease right-of-use assets and liabilities	$	185,139		$	-
Acquisition of Ozop Surgical Corp
Fair value of equity consideration in acquisition	$	818,444		$	-
Liabilities assumed		11,612,618			-
Assets acquired		(759,068	)		-
Goodwill		(11,201,145	)		-
Cash acquired	$	470,849		$	-

See notes to condensed consolidated financial statements.

4

OZOP ENERGY SOLUTIONS, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2020

NOTE 1 - ORGANIZATION

Business

Ozop Energy Solutions, Inc. (the” Company,” “we,” “us” or “our”) was originally incorporated as Newmarkt Corp. on July 17, 2015, under the laws of the State of Nevada.

On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation (“Merger Sub”). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company’s name to “Ozop Energy Solutions, Inc.” That same day the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Merger Sub and filed Articles of Merger (the “Articles of Merger”) with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company to “Ozop Energy Solutions, Inc.”

Stock Purchase Agreement

On July 10, 2020, the Company entered into a Stock Purchase Agreement (the “SPA”) with Power Conversion Technologies, Inc., a Pennsylvania corporation (“PCTI”), and Catherine Chis (“Chis”), PCTI’s Chief Executive Officer (“CEO”) and its sole shareholder. Under the terms of the SPA, the Company acquired one thousand (1,000) shares of PCTI, which represents all of the outstanding shares of PCTI, from Chis in exchange for the issuance of 47,500 shares of the Company’s Series C Preferred Stock, 18,667 shares of the Company’s Series D Preferred Stock, and 500 shares of the Company’s Series E Preferred Stock to Chis. The Acquisition is being accounted for as a business combination and was treated as a reverse acquisition for accounting purposes with PCTI as the accounting acquirer in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). In accordance with the accounting treatment for a reverse acquisition, the Company’s historical financial statements prior to the reverse merger were and will be replaced with the historical financial statements of PCTI prior to the reverse merger, in all future filings with the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements after completion of the reverse merger have and will include the assets, liabilities and results of operations of the combined company from and after the closing date of the reverse merger.

PCTI designs, develops, manufactures and distributes standard and custom power electronic solutions. PCTI serves clients in several industries including energy storage, shore power, DEWs, microgrid, telecommunications, military, transportation, renewable energy, aerospace and mission critical defense systems. Customers include the United States military, other global military organizations and many of the world’s largest industrial manufacturers. All of its products are manufactured in the United States. Because of the Company’s product scope and the high-power niche that their products occupy, the Company is aggressively targeting the rapidly growing renewable and energy storage markets. The Company’s mission is to be a global leader for high power electronics with a standard of continued innovation.

5

The Company utilized the Option Pricing Method (the “OPM”) to value the transaction. The OPM method treats all equity linked instruments as call options on the enterprise value, with exercise prices and liquidation preferences based on the terms of the various common, preferred, options, warrants, and convertible debt. Under this method, the common stock only has value if the funds available for distribution to the shareholders exceed the liquidation preferences of the preferred stock and face value of the convertible debt. The timing of a liquidity event is required to utilize this method. The OPM considers the various terms of the stockholder agreements—including the level of seniority among the securities, dividend policy, conversion ratios, and cash allocations—upon liquidation of the enterprise. In addition, the method implicitly considers the effect of the liquidation preference as of the future liquidation date, not as of the valuation date. A feature of the OPM is that it explicitly recognizes the option-like payoffs of the various share classes utilizing information in the underlying asset (that is, estimated volatility) and the risk-free rate to adjust for risk by adjusting the probabilities of future payoffs. The following table summarizes the preliminary value of the consideration issued and the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the transaction . The company preliminarily recorded the excess as goodwill and will analyze within the measurement period if there should be an allocation to identifiable intangible assets:

	Purchase Price Allocation
Fair value of OZOP equity consideration issued	$	818,444
Assets acquired	$	1,229,917
Goodwill		11,201,145
Liabilities assumed		(11,612,618	)
	$	818,444

Included in the Unaudited Condensed Consolidated Statements of Comprehensive Loss for the nine months ended September 30, 2020, are the results of Ozop, the accounting acquiree, of revenues of $-0- and a loss before income taxes of $6,228,022.The following table provides unaudited pro forma results of operations for the nine months ended September 30, 2020, and 2019, as if the acquisition had been consummated as of the beginning of that period presented. The pro forma results include the effect of certain purchase accounting adjustments, such as the estimated changes in depreciation and amortization expense on the acquired intangible assets. However, pro forma results do not include any anticipated cost savings (if any) of the combined companies. Accordingly, such amounts are not necessarily indicative of the results if the acquisition has occurred on the date indicated, or which may occur in the future.

	Unaudited pro forma results nine months ended September 30, 2020			Unaudited pro forma results nine months ended September 30, 2019
Revenues	$	1,493,592		$	501,931
Loss before income taxes		(40,027,669	)		(4,809,301	)
Basic and fully diluted loss per share	$	(0.02	)	$	(0.14	)

Corporate History

OZOP was originally incorporated in Switzerland on November 28, 1998 under the name Perma Consultants Holding AG (“Perma”). On July 19, 2016, Mr. Eric Siu (“Siu”), a former director purchased 100% of the outstanding capital stock of Perma and changed the name from Perma to Ozop Surgical AG (“Ozop AG”). On February 1, 2018, Ozop AG was re-domiciled as a Delaware corporation and changed its name to Ozop Surgical, Inc. On July 28, 2016, Ozop formed as the sole member, Ozop Surgical, LLC (“Ozop LLC”), a Wyoming limited liability company. On October 28, 2016, Ozop acquired 100% of Ozop Surgical Limited (“Ozop HK”), from Siu, the sole shareholder of Ozop HK. Ozop HK, is a private limited company incorporated in Hong Kong.

NOTE 2 – GOING CONCERN AND MANAGEMENT’S PLANS

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of September 30, 2020, the Company had an accumulated deficit of $8,173,098 and a working capital deficit of $4,635,877. In addition, the Company has generated losses since inception. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern.

In December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to most other countries and infections have been reported globally. Because COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but it may have a material adverse impact on our business, financial condition and results of operations. Management expects that its business will be impacted to some degree, but the significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which it may have an impact cannot be determined at this time.

6

Management’s Plans

As a public company, management believes it will be able to access the public equities market for fund raising for product development and regulatory approvals, sales and marketing and as we expand our distribution in the US market, we will need to meet increasing inventory requirements.

On July 10, 2020, the Company entered into the SPA with PCTI, and Chis, PCTI’s CEO and its sole shareholder (see Note 1). This transaction takes PCTI public, and allows us to drive future investments into the energy storage market, which Forbes estimates will grow from $59 billion in 2019 to $546 billion by 2035, PCTI’s products, technologies and expertise are a linchpin of this emerging industry.

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Current Report on Form 8-K/A filed on September 25, 2020, which includes the historical financial information of PCTI.

The unaudited condensed consolidated financial statements include the accounts of the Company and PCTI and the Company’s other wholly owned subsidiaries Ozop LLC, Ozop HK and Spinus, LLC (“Spinus”). All intercompany accounts and transactions have been eliminated in consolidation.

Emerging Growth Companies

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period.

Use of Estimates

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

7

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Cash and cash equivalent balances may, at certain times, exceed federally insured limits

Sales Concentration and credit risk

Following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the three and nine months ended September 30, 2020, and 2019, and their accounts receivable balance as of September 30, 2020:

	Sales % Three Months Ended September 30, 2020			Sales % Three Months Ended September 30, 2019			Sales % Nine Months Ended September 30, 2020			Sales % Nine Months Ended September 30, 2019			Accounts receivable balance September 30, 2020
Customer A		29	%		-	%		60	%		-	%	$	-
Customer B		19	%		-	%		14	%		-	%		-
Customer C		23	%		-	%		-	%		-	%		34,011
Customer D		12	%		-	%		-	%		-	%		-
Customer E		-	%		29	%		-	%		12	%		-
Customer F		-	%		16	%		-	%		-	%		-
Customer G		-	%		12	%		-	%		-	%		-
Customer H		-	%		-	%		-	%		31	%		-
Customer I		-	%		14	%		-	%		-	%		-

As disclosed in the above table, PCTI, historically does not have year to year many recurring clients as the Company produces capital equipment for its’ customers.

Accounts Receivable

The Company records accounts receivable at the time products and services are delivered. An allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance (if any) is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience.

Inventory

Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues.

The components of inventories at September 30, 2020, and December 31, 2019, are as follows:

	2020		2019
Raw materials	$	116,953	$	116,329
Work in process		45,585		845,218
Finished goods		9,643		10,266
	$	172,181	$	971,813

8

Purchase concentration

The principal purchases by the Company is comprised of parts and raw materials that the Company assembles and manufactures and sells to its customers. Following is a summary of suppliers who accounted for more than ten percent (10%) of the Company’s purchases for the three and nine months ended September 30, 2020, and 2019:

	Purchase % Three Months Ended September 30, 2020			Purchase % Three Months Ended September 30, 2019			Purchase % Nine Months Ended September 30, 2020			Purchase % Nine Months Ended September 30, 2019
Supplier A		11	%		-	%		-	%		-	%
Supplier B		15	%		-	%		10	%		-	%
Supplier C		18	%		-	%		-	%		-	%
Supplier D		-	%		17	%		-	%		-	%
Supplier E		-	%		14	%		-	%		-	%
Supplier F		-	%		-	%		15	%		-	%
Supplier G		-	%		-	%		26	%		-	%

Suppliers to the Company vary from period to period dependent upon our customer’s order specifications. In any specific reporting period, we may be relying on certain vendors, however these vendors will vary dependent on the parts and materials needed. The Company believes its relationships with all of the above vendors is good, and we are not reliant on any particular vendor for future needs.

Property, plant and equipment

Property and equipment are stated at cost, and depreciation is provided by use of a straight-line method over the estimated useful lives of the assets.

The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. The estimated useful lives of property and equipment is as follows:

	September 30, 2020			December 31, 2019
Office equipment	$	113,025		$	78,851
Less: Accumulated Depreciation		(77,465	)		(63,642	)
Property and Equipment, Net	$	35,560		$	15,199

Depreciation expense was $3,562 and $6,784 for the three and nine months ended September 30, 2020, respectively, and $1,815 and $5,445 for the three and nine months ended September 30, 2019, respectively.

Intangible Assets

Intangible assets primarily represent purchased patent and license rights. The Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the three and nine months ended September 30, 2020, the Company recorded amortization expense of $10,417. In accordance with ASC 350, “Intangibles—Goodwill and Other,” goodwill and other intangible assets with indefinite lives are no longer subject to amortization but are tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired.

9

Goodwill

Goodwill is measured as the excess of consideration transferred and the net of the acquisition date fair value of assets acquired, and liabilities assumed in a business acquisition. The Company reviews the goodwill allocated to each of our reporting units for possible impairment annually and whenever events or changes in circumstances indicate carrying amount may not be recoverable. When assessing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its’ carrying amount.

Goodwill is tested annually for impairment on January 1, and at any time upon occurrence of certain events or changes in circumstances. In assessing the qualitative factors, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances, and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry, and market considerations, cost factors, overall financial performance and share price trends, and making the assessment as to whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

The carrying amount of each reporting unit is determined based upon the assignment of our assets and liabilities, including existing goodwill and other intangible assets, to the identified reporting units. Where an acquisition benefits only one reporting unit, the Company allocates, as of the acquisition date, all goodwill for that acquisition to the reporting unit that will benefit. Where the Company has had an acquisition that benefited more than one reporting unit, The Company has assigned the goodwill to our reporting units as of the acquisition date such that the goodwill assigned to a reporting unit is the excess of the fair value of the acquired business, or portion thereof, to be included in that reporting unit over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit.

The transaction with PCTI resulted in recognizing goodwill of $11,201,145 (see Note 1).

Revenue Recognition

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. Under ASC 606, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. Other than The Company has no outstanding contracts with any of its’ customers. The Company recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms.

For contracts with customers, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product to the customer or receipt of the product by the customer and without significant judgments. Advance payments are typically required for commercial customers and are recorded as current liability until revenue is recognized. Advance payments are not required for government customers. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer.

10

For the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges.

There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three and nine months ended September 30, 2020, and 2019.

Advertising and Marketing Expenses

The Company expenses advertising and marketing costs as incurred. For the nine months ended September 30, 2020, and 2019, the Company recorded $47,325 and $232, respectively, of advertising and marketing expenses.

Research and Development

Costs and expenses that can be clearly identified as research and development are charged to expense as incurred. For the three and nine months ended September 30, 2020, and 2019, the Company did not record any research and development expenses.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities.

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of this note transaction and the effective conversion price embedded in this note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

11

Fair Value of Financial Instruments

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

The following are the hierarchical levels of inputs to measure fair value:

● Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

● Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

● Level 3 - Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.

The following table represents the Company’s derivative instruments that are measured at fair value on a recurring basis as of September 30, 2020, for each fair value hierarchy level:

September 30, 2020	Derivative Liabilities		Total
Level I	$	-	$	-
Level II	$	-	$	-
Level III	$	2,250,953	$	2,250,953

Leases

Effective July 10, 2020, the Company began accounting for leases under ASU 2016-02 (see Note 14), applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the inception of a contract the Company assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. We allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments.

Operating lease ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate of 7.5%, based on the information available at the adoption date in determining the present value of future payments. Operating lease expense is recognized pursuant to on a straight-line basis over the lease term and is included in rent in the condensed consolidated statements of operations.

12

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented.

Foreign Currency Translation

The accounts of the Company’s Hong Kong subsidiary are maintained in Hong Kong dollars and the accounts of the U.S. companies are maintained in USD. The accounts of the Hong Kong subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of comprehensive income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. Gains and losses resulting from the foreign currency transactions are reflected in the statements of comprehensive income.

Relevant exchange rates used in the preparation of the consolidated financial statements are as follows for the period ended September 30, 2020, (Hong Kong dollar per one U.S. dollar):

	September 30, 2020
Balance sheet date		.1290
Average rate for statements of operations and comprehensive loss		.1289

Earnings (Loss) Per Share

The Company reports earnings (loss) per share in accordance with ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. As of September 30, 2020, and 2019, the Company’s dilutive securities are convertible into approximately 9,744,058,757 shares of common stock. There were no dilutive securities as of September 30, 2019. This amount is not included in the computation of dilutive loss per share because their impact is antidilutive. The following table represents the classes of dilutive securities as of September 30, 2020:

	September 30, 2020
Common stock to be issued		1,350
Convertible preferred stock		9,421,359,558
Convertible notes payable		322,697,849
		9,744,058,75

13

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018.

In January 2017, the FASB issued ASU No. 217-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments simplify the subsequent measurement of goodwill and eliminate the two-step goodwill impairment test. The Company will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate any material impact on the condensed consolidated financial statements.

Other than the above there have no recent accounting pronouncements or changes in accounting pronouncements during the period ended September 30, 2020, that are of significance or potential significance to the Company.

NOTE 4 – INTANGIBLE ASSETS

Patents as of September 30, 2020, consist of the following:

	September 30, 2020
Patents and license rights	$	151,041
Accumulated amortization		(10,417	)
Net carrying amount	$	140,624

Amortization expense for the three and nine months ended September 30, 2020, was $10,417.

NOTE 5 - CONVERTIBLE NOTES PAYABLE

Since the transaction with PCTI is being accounted for as a business combination and was treated as a reverse acquisition for accounting purposes with PCTI as the accounting acquirer in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). In accordance with the accounting treatment for a reverse acquisition, the Company’s historical financial statements prior to the reverse merger were and will be replaced with the historical financial statements of PCTI prior to the reverse merger. The consolidated financial statements after completion of the reverse merger have and will include the assets, liabilities and results of operations of the combined company from and after the closing date of the reverse merger. Accordingly, as of July 10, 2020, PCTI assumed the liabilities of the Company, including the convertible note balances.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 15% convertible note issued by the Company on August 18, 2017, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, dated February 18, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for the thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $2,086.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 15% convertible note issued by the Company on September 13, 2017. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of this note was $25,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on February 26, 2020, pursuant to a Securities Purchase Agreement. The SPA includes customary representations, warranties and covenants by the Company and customary closing conditions. In conjunction with this note, the Company issued a warrant to purchase 2,212,500 shares of common stock at an exercise price of $0.03, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. As of July 10, 2020, the outstanding principal balance of this note was $132,750 with a carrying value of $66,176, net of unamortized discounts of $66,574. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $66,574 was charged to interest expense. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $132,750 of the face value and $7,943 of accrued interest into 83,214,457 shares of common stock at an average conversion price of $0.0017. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

14

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on February 26, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, dated March 3, 2020 with a maturity date of February 26, 2021. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $798,750. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $798,750 of the face value and $147,549 of accrued interest into 496,756,528 shares of common stock at an average conversion price of $0.0019. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on August 21, 2019, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, with a maturity date of August 21, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $155,632. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $155,632 of the face value and $48,306 of accrued interest into 219,963,737 shares of common stock at an average conversion price of $0.0009. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on March 9, 2020, (the “Issuance Date”) to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $.25 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.25 or 50% of the lowest trading price for the thirty trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $80,000 with a carrying value of $53,333, net of unamortized discounts of $26,667. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $26,667 was charged to interest expense. As of September 30, 2020, the outstanding principal balance and carrying value of this note was $80,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 22% convertible note issued by the Company on December 5, 2018, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 17, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $352,695. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $352,695 of the face value and $89,295 of accrued interest into 273,028,909 shares of common stock at an average conversion price of $0.0016. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 22% convertible note issued by the Company on October 19, 2018, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 24, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $67.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on April 27, 2020, (the “Issuance Date”) to an investor. This note matures on April 27, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $60,000 with a carrying value of $11,500, net of unamortized discounts of $48,500. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $13,500 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $60,000 with a carrying value of $25,000, net of unamortized discounts of $35,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on August 23, 2019, with a maturity date of May 23, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 28, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $14,831.

15

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on April 28, 2020, (the “Issuance Date”) to an investor. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. As of July 10, 2020, the outstanding principal balance of this note was $53,000 with a carrying value of $10,158, net of unamortized discounts of $42,842. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $11,925 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $53,000 with a carrying value of $22,083, net of unamortized discounts of $30,917.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 4, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to the lower of $0.50 or 58% multiplied by the average of the two lowest closing trading price or bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. In conjunction with this note, the Company issued a warrant to purchase 3,666,666 shares of common stock at an exercise price of $0.015, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. As of July 10, 2020, the outstanding principal balance of this note was $110,000 with a carrying value of $18,860, net of unamortized discounts of $91,140. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $25,369 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $110,000 with a carrying value of $44,229, net of unamortized discounts of $65,771.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 5, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $03 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.03 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $162,000 with a carrying value of $62,100, net of unamortized discounts of $99,900. In conjunction with this note, the Company issued a warrant to purchase 4,325,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $72,900 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $162,000 with a carrying value of $135,000, net of unamortized discounts of $27,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 7, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures on May 7, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $5,000, net of unamortized discounts of $25,000. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $6,875 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $30,000 with a carrying value of $11,875, net of unamortized discounts of $18,125.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on January 8, 2020, with a maturity date of January 8, 2021, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 15, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $115,500, with a carrying value of $56,306, net of unamortized discounts of $59,194. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $59,194 was charged to interest expense. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $115,067 of the face value and $2,408 of accrued interest and fees into 88,500,000 shares of common stock at an average conversion price of $0.00133. As of September 30, 2020, the outstanding principal balance of this note is $433.

16

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on November 27, 2019, with a maturity date of November 27, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 15, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $296.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on May 28, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures on May 28, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $3,250, net of unamortized discounts of $26,750. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $6,750 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $30,000 with a carrying value of $10,000, net of unamortized discounts of $20,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due convertible note issued by the Company on May 29, 2019, with a maturity date of May 29, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 28, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $31,043. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $31,043 of the face value and $53,337 of accrued interest and fees into 86,262,262 shares of common stock at an average conversion price of $0.001. As of September 30, 2020, the note balance is $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on June 1, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $27,625, net of unamortized discounts of $99,875. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $57,375 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $127,500 with a carrying value of $85,000, net of unamortized discounts of $42,500. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on June 11, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the twenty- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. As of July 10, 2020, the outstanding principal balance of this note was $53,000 with a carrying value of $4,417, net of unamortized discounts of $48,583. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $11,792 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $53,000 with a carrying value of $16,209, net of unamortized discounts of $36,791.

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On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on June 30, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $129,500 with a carrying value of $8,375, net of unamortized discounts of $121,125. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $ was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $129,500 with a carrying value of $65,750, net of unamortized discounts of $63,750. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on July 8, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $250,000 with a carrying value of $-0-, net of unamortized discounts of $250,000. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $114,583 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $250,000 with a carrying value of $114,583, net of unamortized discounts of $135,417. In conjunction with this note, the Company issued a warrant to purchase 12,500,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On February 26, 2020, (the “Issuance Date”) PCTI issued a 12% Convertible Promissory Note (the “Note”), in the principal amount of $106,950, to an investor. This note matures 12 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at 55% of the lowest trading price for the twenty-five trading days prior to the conversion. If the trading price cannot be calculated for such security on such date, the trading price shall be the fair market value as mutually determined by the Company and the investor for which the calculation of the trading price is required in order to determine the conversion price. PCTI received proceeds of $85,000 on February 26, 2020, and the Note included an original issue discount of $13,950 and lender costs of $8,000. This note proceeds will be used by the Company for general working capital purposes. The Note also requires a daily payment via ACH of $400. On June 25, 2020, the Note was amended to add $111,225 of additional principal to the outstanding balance. Pursuant to the PCTI transaction with Ozop, on July 10, 2020, the conversion price is equal to 45% multiplied by the lowest closing bid price during the twenty-five-trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. Accordingly, the Company determined the conversion feature of the Notes represented an embedded derivative since the note is convertible into a variable number of shares upon conversion, as the note was not considered to be conventional debt under ASC 815 and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. The embedded feature included in the note resulted in an initial debt discount of $85,000, interest expense of $135,786 and initial derivative liability of $220,786. For the nine months ended September 30, 2020, amortization of the debt discounts of $54,793 was charged to interest expense. For the nine months ended September 30, 2020, principal payments of $56,400 were paid. As of September 30, 2020, the outstanding principal balance of this note was $161,775 with a carrying value of $116,935, net of unamortized discounts of $44,840.

On July 15, 2020, (the “Issuance Date”) the Company issued a 15% convertible promissory note, in the principal amount of $127,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $102,000 on July 22, 2020, and this note included an original issue discount of $25,500. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. The Company allocated the proceeds to the debt of $82,068 and to the warrant $19,932 based on the relative fair value. The embedded conversion feature included in this note resulted in an initial derivative liability of $207,699, a debt discount of $82,068 with the excess of $125,541 charged to interest expense of $125,541. For the nine months ended September 30, 2020, amortization of the debt discounts of $53,125 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $53,125, net of unamortized discounts of $74,375.

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On July 29, 2020, (the “Issuance Date”) the Company issued a 15% convertible promissory note, in the principal amount of $127,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $100,000 on August 3, 2020, and this note included an original issue discount of $25,500. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 12,750,000 shares of common stock at an exercise price of $0.01, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. The Company allocated the proceeds to the debt $61,733 and warrant $40,267 based on the relative fair value. The embedded conversion feature included in this note resulted in an initial derivative liability of $198,239, a debt discount of $61,733 with the excess of $136,506 charged to interest expense. For the nine months ended September 30, 2020, amortization of the debt discounts of $42,500 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $42,500, net of unamortized discounts of $85,000.

A summary of the convertible note balance as of September 30, 2020, is as follows:

	September 30, 2020
Principal balance	$	1,544,489
Unamortized discount		(682,982	)
Ending balance, net	$	861,507

NOTE 6 – DERIVATIVE LIABILITIES

The Company determined the conversion feature of the convertible notes, which all contain variable conversion rates, represented an embedded derivative since the notes were convertible into a variable number of shares upon conversion. Accordingly, the notes are not considered to be conventional debt under ASC 815 and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability.

The Company valued the derivative liabilities at September 30, 2020, at $2,250,953. The Company used the Monte Carlo simulation valuation model with the following assumptions as of September 30, 2020, risk free interest rates at 0.11%, and volatility of 85% to 94%. The initial derivative liabilities for convertible notes issued from July 11, 2020 to September 30, 2020, used the following assumptions; risk-free interest rates from 0.12% to 0.17% and volatility of 96% to 106%.

A summary of the activity related to derivative liabilities for the period from July 10, 2020 to September 30, 2020, is as follows:

Balance- July 10, 2020, assumed pursuant to PCTI transaction	$	8,743,231
Issued during period		626,534
Converted or paid		(7,308,426	)
Change in fair value recognized in operations		189,614
Balance- September 30, 2020	$	2,250,953

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NOTE 7 – NOTES PAYABLE

The Company has the following note payables outstanding:

	September 30, 2020		December 31, 2019
Note payable bank, interest at 7.75%, matures December 26,2020	$	156,648	$	174,444
Note payable bank, interest at 6.5%, matures December 26, 2020		341,400		349,962
Economic Injury Disaster Loan		10,000		-
Paycheck Protection Program loan		100,400		-
Notes payable, interest at 8%, matured January 5, 2020, currently in default		45,000		-
Other, due on demand, interest at 6%		50,000		-
Note payable $210,000 face value, interest at 18%, matures June 23, 2022, net of discount of $30,260		179,740		-
Note payable $203,000 face value, interest at 12%, matures June 25, 2021, net of discount of $19,935		183,065		-
Note payable $750,000 face value, interest at 12%, matures August 24, 2021, net of discount of $500,151		249,839		-
Sub- total notes payable		1,316,102		542,406
Less long-term portion, net of discount		290,140		-
Current portion of notes payable, net of discount	$	1,015,962	$	542,406

On October 26, 2016, PCTI entered into a $210,000 note payable with a bank. On July 24, 2020, due to defaults with the terms of the note, the note was amended with the outstanding balance due December 26, 2020 and the interest rate changed to 7.75%. Borrowings are collateralized by substantially all of the assets of PCTI and the personal guarantee of PCTI’s President. At September 30, 2020 and December 31, 2019, $150,646 and $174,444, respectively, was outstanding on the note payable.

On September 25, 2019, PCTI renewed their $350,000 promissory note with a bank that provides for borrowings of up to $350,000. Interest is due monthly and the principal was due on April 12, 2020, however, on July 24, 2020, due to PCTI being in default with agreement was amended with a change in the maturity date to December 26, 2020, and the interest rate changed to the prime rate plus 3.25% (6.5% at September 30, 2020). Borrowings are collateralized by substantially all of the assets of PCTI and the personal guarantee of PCTI’s President. At September 30, 2020 and December 31, 2019, $347,588 and $349,962, respectively, was outstanding on the promissory note.

On August 24, 2020 (the “Issue Date”), the Company entered into a 12%, $750,000 face value promissory note with a third-party (the “Holder”) due August 24, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $125,000 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date. The Company received proceeds of $663,000 on August 25, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $87,000. For the nine months ended September 30, 2020, amortization of the costs of $9,063 was charged to interest expense. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 122,950,819 shares of common stock at an exercise price of $0.0061, subject to adjustments and expires on the five-year anniversary of the Issue Date. The warrants issued resulted in a debt discount of $471,307, with the offset to additional paid in capital. For the nine months ended September 30, 2020, amortization of the debt discount of $49,094 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $750,000 with a carrying value of $249,839, net of unamortized discounts of $500,151.

On April 20, 2020, PCTI was granted a loan from a bank in the amount of $100,400, pursuant to the Paycheck Protection Program (“PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan matures on April 20, 2022 and bears interest at a rate of 1.0% per annum, payable monthly beginning on November 20, 2020. The loan may be prepaid at any time prior to maturity with no prepayment penalties. Under the terms of the loan, a portion or all of the loan is forgivable to the extent the loan proceeds are used to fund qualifying payroll, rent and utilities during a designated twenty-four-week period. Payments are deferred until the SBA determines the amount to be forgiven. The Company intends to utilize the proceeds of the PPP loan in a manner which will enable qualification as a forgivable loan. However, no assurance can be provided that all or any portion of the PPP loan will be forgiven. The balance on this PPP loan was $10,400 as of September 30, 2020 and has been classified as a long-term liability in notes payable.

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On July 14, 2020, PCTI received $10,000 grant under the Economic Injury Disaster Loan (“EIDL”) program. Up to $10,000 of the EIDL can be forgiven as long as such funds were utilized to provide working capital. The first payment due is deferred one year. The entirety of the loan as of September 30, 2020 and has been classified as a long-term liability in notes payable.

The following notes were assumed on July 10, 2020, pursuant to the PCTI transaction:

On June 23, 2020 (the “Execution Date”), the Company entered into a Loan and Securities Purchase Agreement with a third- party (the “Lender”). Pursuant to the agreement in exchange for a $210,000 Promissory Note, inclusive of an original issue discount of $35,000 the Company received proceeds of $175,000 from the Lender. The note carries an interest rate of 18% and matures and is due in one lump sum on the 24- month anniversary (the “Maturity Date”) of the Execution Date. For the first nine months interest may accrue on a monthly basis, and the Company has the option to pay the monthly interest or add such interest to the principal balance of the note. Commencing on the tenth month of the note, all accrued interest, if any, shall be added to the principal amount of the note, and interest on the new principal amount shall become due and payable on a monthly basis. Should the Company default on making any interest payments following the initial nine-months, or paying the note by the Maturity Date, the note shall automatically be converted into an 18% convertible debenture.

On June 25, 2020 (the “Issue Date”), the Company entered into a 12%, $203,000 face value promissory note with a third-party (the “Holder”) due June 25, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $33,333 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date. The Company received proceeds of $176,000 on June 26, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $27,000. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 10,000,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expires on the five-year anniversary of the Issue Date.

NOTE 8 – DEFERRED LIABILITY

On September 2, 2020, PCTI entered into an Agreement (the “Agreement”) with a third- party. Pursuant to the terms of the Agreement, in exchange for $750,000, PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement. Payments are due ninety (90) days after each calendar quarter, with the first payment due on or before March 31, 2021, for revenues for the quarter ending December 31, 2020. The Company has recorded the $750,000 as deferred liability on the September 30, 2020, consolidated condensed balance sheet.

NOTE 9 – RELATED PARTY TRANSACTIONS

Employment Agreement

On July 10, 2020, pursuant to the PCTI transaction, the Company assumed an employment contract entered into on February 28, 2020, between the Company and Mr. Conway (the “Employment Agreement”). Pursuant to the terms of the Employment Agreement, Mr. Conway is to receive an annual salary of $120,000, for his position of CEO of the Company, payable monthly. Mr. Conway was issued 2,500 shares of Series C Preferred Stock. The Company valued the shares at $5,000. On August 28, 2020, Mr. Conway was issued 1,333 shares of Series D Preferred stock and 500 shares of series E Preferred Stock. The Series D Preferred Stock is convertible in the aggregate into three times the number of shares of common stock outstanding at the time of conversion. Mr. Conway owns 6.67% of the issued and outstanding Series D Preferred Stock, and based on the 3,107,037,634 shares outstanding on August 28, 2020, Mr. Conway’s Preferred Stock is convertible into 621,253,401 shares of common stock. Based on the share price of the common stock on that date of $0.0065, the shares were valued at $4,286,648 and recognized as compensation on the accompanying unaudited condensed consolidated Statement of Comprehensive Loss.

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Management Fees and related party payables

For the three and nine months ended September 30, 2020, and 2019, the Company recorded expenses to its officers in the following amounts:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
CEO, parent	$	96,771	$	-	$	96,771	$	-
President, subsidiary		32,500		-		32,500		-
Total	$	129,271	$	-	$	129,271	$	-

As of September 30, 2020, and December 31, 2019, included in related party payable is $10,308 and $27,909, respectively, for the amounts owed the CEO of PCTI.

NOTE 10 – COMMITMENTS AND CONTINGENCIES

Leases

On October 25, 2019 PCTI executed a non-cancellable lease of office and industrial space totaling 11,800 square feet in Zelienople, PA., which began December 1, 2019 and expires on November 30, 2022. The lease terms include a monthly rent of $7,000 (see Note 12). The Company also pays $3,400 on a month to month basis for its corporate office in Warwick, New York.

Licenses

On February 1, 2018, Spinus entered into an Intellectual Property Licensing Agreement (the “Licensing Agreement”). The Company assumed the obligations under the Licensing Agreement and pledged the assets of Spinus as security. Pursuant to the terms of the Licensing Agreement, in consideration of $250,000 Spinus has the exclusive rights to certain patents and the non-exclusive rights to other patents. The patents surround mechanical or inflatable expandable interbody implant products. The Company paid the $250,000 on November 20, 2018. The Company also will pay a royalty of 7% of net sales on any product sold utilizing any of the patents. There have not been any sales of the licensed products and accordingly, no royalties have been incurred.

Agreements

On March 4, 2019, the Company entered into a Separation Agreement (the “Separation Agreement”) with Salman J. Chaudhry, pursuant to which the Company agreed to pay Mr. Chaudry $227,200 (the “Outstanding Fees”) in certain increments as set forth in the Separation Agreement. As of September 30, 2020, and December 31, 2019, the balance owed Mr. Chaudhry is $162,085.

On July 10, 2020, PCTI assumed a contract entered into by the Company on June 5, 2020, for media relations services with a third-party. Pursuant to the Agreement, the Company will pay the consultants $10,000 per month for the development and execution of a comprehensive media relations plan.

On July 24, 2020, PCTI, the Company’s wholly owned subsidiary, entered into a three- month consulting agreement with a third-party. Pursuant to the agreement, the Company will pay the consultant $10,000 per month and the consultant will provide services, including, but not limited to, identifying PCTI’s best path forward into the renewable energy and energy storage industries as well as advance their presence in the maritime/transportation industry.

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On July 29, 2020, PCTI entered into a three-month Performance Solutions Agreement (the “PSA”), with automatic monthly renewals, until terminated either arty on a thirty (30) day written notice to the other party. Pursuant to the PSA, the Company will pay a monthly fee of $5,000 for services including social media and search engine optimization.

On September 2, 2020, PCTI entered into an Agreement (the “Agreement”) with a third- party. Pursuant to the terms of the Agreement, in exchange for $750,000, PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement (see Note 7).

NOTE 11 – STOCKHOLDERS’ EQUITY

Common stock

During the period from July 11, 2020 to September 30, 2020, holders of an aggregate of $1,585,937 in principal and $259,418 of accrued interest and fees of convertible notes issued by the Company and assumed by PCTI on July 10, 2020, converted their debt into 1,181,993,984 shares of our common stock at an average conversion price of $0.0016 per share. The Company also issued 106,528,473 shares of common stock upon the cashless exercise of common stock purchase warrants.

As of September 30, 2020, the Company has 4,990,000,000 shares of $0.001 par value common stock authorized and there are 3,140,453,186 shares of common stock issued and outstanding.

Preferred stock

As of September 30, 2020, 10,000,000 shares have been authorized as preferred stock, par value $0.001 (the “Preferred Stock”), which such Preferred Stock shall be issuable in such series, and with such designations, rights and preferences as the Board of Directors may determine from time to time.

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On July 7, 2020, the Company filed an Amended and Restated Certificate of Designation with the State of Nevada of the Company’s Series C Preferred Stock. Under the terms of the Amendment to Certificate of Designation of Series C Preferred Stock, 50,000 shares of the Company’s preferred remain designated as Series C Preferred Stock. The holders of Series C Preferred Stock have no conversion rights and no dividend rights. For so long as any shares of the Series C Preferred Stock remain issued and outstanding, the Holder thereof, voting separately as a class, shall have the right to vote on all shareholder matters equal to sixty-seven (67%) percent of the total vote. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 47,500 shares of Series C preferred Stock to Chis. As of September 30, 2020, there were 50,000 shares of Series D Preferred Stock issued and outstanding, of which 2,500 are issued to Mr. Conway.

On July 7, 2020, the Company filed a Certificate of Designation with the State of Nevada of the Company’s Series D Preferred Stock. Under the terms of the Certificate of Designation of Series D Preferred Stock, 20,000 shares of the Company’s preferred stock have been designated as Series D Convertible Preferred Stock. The holders of the Series D Convertible Preferred Stock shall not be entitled to receive dividends. The holders as a group may, at any time convert all of the shares of Series D Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion, by 3. Except as provided in the Certificate of Designation or as otherwise required by law, no holder of the Series D Convertible Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Company for their vote, waiver, release or other action. The Series D Convertible Preferred Stock shall not bear any liquidation rights. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 18,667 shares of Series D preferred Stock to Chis, and on August 28, 2020. Pursuant to Mr. Conway’s employment agreement, the Company issued 1,333 shares of Series D Preferred Stock to Mr. Conway. As of September 30, 2020, there were 20,000 shares of Series D Preferred Stock issued and outstanding.

On July 7, 2020, the Company filed a Certificate of Designation with the State of Nevada of the Company’s Series E Preferred Stock. Under the terms of the Certificate of Designation of Series E Preferred Stock, 3,000 shares of the Company’s preferred stock have been designated as Series E Preferred Stock. The holders of the Series E Convertible Preferred Stock shall not be entitled to receive dividends. No holder of the Series E Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Corporation for their vote, waiver, release or other action, except as may be otherwise expressly required by law. At any time, the Corporation may redeem for cash out of funds legally available therefor, any or all of the outstanding Preferred Stock (“Optional Redemption”) at $1,000 (one thousand dollars) per share. The shares of Series E Preferred Stock have not been registered under the Securities Act of 1933 or the laws of any state of the United States and may not be transferred without such registration or an exemption from registration. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 500 shares of Series E preferred Stock to Chis, and on August 28, 2020. Pursuant to Mr. Conway’s employment agreement, the Company issued 500 shares of Series E Preferred Stock to Mr. Conway. As of September 30, 2020, there were 1,000 shares of Series E Preferred Stock issued and outstanding.

NOTE 12 - OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

On October 25, 2019 PCTI executed a non-cancellable lease for office and industrial space which began December 1, 2019 and expires on November 30, 2022. Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 7.5%, as the interest rate implicit in most of our leases is not readily determinable. Prior to July 10, 2020, PCTI recorded monthly lease expense pursuant to the lease agreement and effective July 10, 2020, pursuant to the PCTI transaction, operating lease expense is recognized pursuant to ASC Topic 842. Leases (Topic 842) over the lease term. During the three and nine months ended September 30, 2020, the Company recorded $21,278 and $63,278, respectively, and $21,125 and $63,375 for the three and nine months ended September 30, 2019, respectively, for this lease.

In adopting Topic 842, the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. During the nine months ended September 30, 2019, upon adoption of ASC Topic 842, the Company recorded right-of-use assets and lease liabilities of $185,139.

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Right-of- use assets are summarized below:

	September 30, 2020
Office and warehouse lease	$	185,139
Less accumulated amortization		(17,639	)
Right-of-us assets, net	$	167,500

Operating lease liabilities are summarized as follows:

	September 30, 2020
Lease liability	$	167,500
Less current portion		(73,945	)
Long term portion	$	93,555

Maturity of lease liabilities are as follows:

	Amount
For the three months ending December 31, 2020	$	21,000
For the year ending December 31, 2021		84,000
For the eleven months ending November 30, 2022		77,000
Total	$	182,000
Less: present value discount		(14,500	)
Lease liability	$	167,500

NOTE 13 – SUBSEQUENT EVENTS

From October 1, 2020, through November 20, 2020, the Company has issued 123,357,984 shares of common stock upon the conversion of $293,449 of principal, accrued interest and fees of convertible notes.

On October 8, 2020, the Company, through its wholly owned subsidiary, PCTI entered into a Consortium Agreement (the “Consortium Agreement”) with Sterling PBES Energy Solution Ltd. (“SPBES”). Under the terms of the Consortium Agreement, PCTI shall offer proposal, execution and service of contracts to supply agreed upon product solutions on behalf of SPBES in the following markets: Marine Industrial Charging Sub-Stations, North America, Europe, the Middle East and North Africa, Southeast Asia, South East Asia, South America and Australasia. SPBES shall be responsible for the project management of the product solutions.

On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation (“Merger Sub”). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company’s name to “Ozop Energy Solutions, Inc.” That same day the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Merger Sub and filed Articles of Merger (the “Articles of Merger”) with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company to “Ozop Energy Solutions, Inc.”

On November 13, 2020 (the “Issue Date”), the Company entered into a 12%, $1,000,000 face value promissory note with a third-party (the “Holder”) due November 13, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $166,667 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Company received proceeds of $890,000 on November 20, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $110,000. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 125,000,000 shares of common stock at an exercise price of $0.008, subject to adjustments and expires on the five-year anniversary of the Issue Date.

On November 16, 2020, (the “Issuance Date”) the Company issued a promissory note, in the principal amount of $250,000, to an investor. The note carries a guaranteed interest payment of 15%, which is added to the principal on the Issuance Date. Principal payments shall be made in six instalments of $57,500 commencing May 21, 2021, and continuing each 30 days thereafter for 4 months. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.01 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.01 or the volume weighted average price of the common stock during the five (5) Trading Day period ending on the day prior to conversion. The Company received proceeds of $200,000 on November 19, 2020, and this note included an original issue discount of $50,000. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 35,000,000 shares of common stock at an exercise price of $0.25, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as stated herein.

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

This quarterly report and other reports filed by Ozop Surgical Corp. (“we,” “us,” “our,” or the “Company”), from time to time contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments, and assumptions are made. These estimates, judgments, and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates.

The following discussion should be read in conjunction with our unaudited financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q.

THE COMPANY

Ozop Energy Solutions, Inc. (the “Company,” “we,” “us” or “our”) was originally incorporated as Newmarkt Corp. on July 17, 2015, under the laws of the State of Nevada. On May 8, 2018, following the acquisition of Ozop Surgical, Inc., we amended our Articles of Incorporation (the “Amendment”) to change our name from Newmarkt Corp. to Ozop Surgical Corp. in order to reflect more accurately, at that time, the name of our core service offering and operations.

On July 10, 2020, the Company entered into a Stock Purchase Agreement (the “SPA”) with Power Conversion Technologies, Inc., a Pennsylvania corporation (“PCTI”), and Catherine Chis (“Chis”), PCTI’s Chief Executive Officer (“CEO”) and its sole shareholder. Under the terms of the SPA, the Company acquired one thousand (1,000) shares of PCTI, which represents all of the outstanding shares of PCTI, from Chis in exchange for the issuance of 47,500 shares of the Company’s Series C Preferred Stock, 18,667 shares of the Company’s Series D Preferred Stock, and 500 shares of the Company’s Series E Preferred Stock to Chis. The Acquisition is being accounted for as a business combination and was treated as a reverse acquisition for accounting purposes with PCTI as the accounting acquirer in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). In accordance with the accounting treatment for a reverse acquisition, the Company’s historical financial statements prior to the reverse merger were and will be replaced with the historical financial statements of PCTI prior to the reverse merger, in all future filings with the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements after completion of the reverse merger have and will include the assets, liabilities and results of operations of the combined company from and after the closing date of the reverse merger.

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PCTI designs, develops, manufactures and distributes standard and custom power electronic solutions. PCTI serves clients in several industries including energy storage, shore power, DEWs, microgrid, telecommunications, military, transportation, renewable energy, aerospace and mission critical defense systems. Customers include the United States military, other global military organizations and many of the world’s largest industrial manufacturers. All of its products are manufactured in the United States. Because of the Company’s product scope and the high-power niche that their products occupy, the Company is aggressively targeting the rapidly growing renewable and energy storage markets. The Company’s mission is to be a global leader for high power electronics with a standard of continued innovation.

On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation (“Merger Sub”). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company’s name to “Ozop Energy Solutions, Inc.” That same day the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Merger Sub and filed Articles of Merger (the “Articles of Merger”) with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company to “Ozop Energy Solutions, Inc.”

Results of Operations for the three and nine months ended September 30, 2020 and 2019:

Revenue

For the three and nine months ended September 30, 2020, the Company’s revenues were $246,951 and $1,493,592, respectively, compared to $176,582 and $416,778 for the three and nine months ended September 30, 2019.The increase in revenues is a result of a delay in 2019, by a customer in making a substantial change to the specification and issuing a modification after the purchase order was released for production. The project subsequently shipped in 2020.

Operating expenses

Total operating expenses for the three and nine months ended September 30, 2020, were $4,830,641 and $5,151,483, respectively, compared to $101,820 and $314,433 for the three and nine months ended September 30, 2019, respectively. The operating expenses were comprised of:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Wages and management fees- related parties	$	129,271	$	-	$	129,271	$	-
Stock-based compensation		4,286,648		-		4,286,648		-
Wages, taxes and benefits		125,554		72,877		287,917		234,436
Professional and consulting fees		162,622		8,599		187,259		15,355
Advertising and marketing		44,428		100		47,325		232
Rent, office expense and supplies		48,498		4,517		72,400		24,659
Insurance		19,133		6,443		44,246		21,647
General and administrative, other		14,487		9,284		96,917		17,664
Total	$	4,830,641	$	101,820	$	5,151,483	$	314,433

All of the above amounts include expenses incurred by PCTI for the entire three- and nine-month periods ended September 30, 2020, and 2019, respectively, and expenses incurred by Ozop for the period July 11, 2020 through September 30, 2020.

Wages and management fees- related parties, includes compensation paid to our CEO and to the President of PCTI, our wholly-owned subsidiary. Currently, the President is compensated $13,000 per month and the Company’s CEO monthly base compensation is $10,000. Both the CEO and President are eligible for additional bonuses as approved by the Board of Directors of the Company. For the three and nine months ended September 30, 2020, the Company’s CEO’s total compensation was $96,771 and PCTI’s President was compensated $32,500.

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Stock based compensation for the three and nine months ended September 30, 2020, of $4,286,648, is related to 1,333 shares of Series D Preferred Stock issued to Mr. Conwy on August 28, 2020, pursuant to his employment agreement. The Series D Preferred Stock is convertible in the aggregate into three times the number of shares of common stock outstanding at the time of conversion. Mr. Conway’s owns 6.67% of the issued and outstanding Series D Preferred Stock, and based on the 3,107,037,634 shares outstanding on August 28, 2020, Mr. Conway’s Preferred Stock is convertible into 621,253,401 shares of common stock. Based on the share price of the common stock on that date of $0.0065, the shares were valued at $4,286,648.

Wages, taxes and benefits increased for the three and nine months ended September 30, 2020, compared to the same periods in 2019. The increase was a result of increased sales and administrative personnel at PCTI, in support of the increased revenues as well as personnel hired for additional customer recruitment.

Professional and consulting increased in the three and nine months ended September 30, 2020, compared to the same periods in 2019. The increase was due to accounting and auditing expenses of PCTI, necessary in preparation of the transaction with Ozop, as well as expenses incurred by Ozop for their public company filing requirements

Advertising and marketing expenses increased in the three and nine months ended September 30, 2020, compared to the same periods in 2019. The increase was related to marketing programs during the three months ended September 30, 2020, including brand awareness programs for both PCTI and Ozop.

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Rent, office expense and supplies include utilities as well. The expenses for the three and nine months ended September 30, 2010 increased compared to the same periods in 2019. The increase was the result of including in the current three-and nine-month periods, rent expense of $9,200 for Ozop beginning in July 2020.

Other Income (Expenses)

Other expenses, net, for the three and nine months ended September 30, 2020, was $1,708,061 and $1,838,113, respectively, compared to other expenses, net of $12,203 and $41,656 for the three and nine months ended September 30, 2019, respectively, and were as follows.

	Three months ended September 30,					Nine months ended September 30,
	2020			2019		2020			2019
Interest expense	$	667,185		$	12,203	$	797,237		$	41,656
Amortization of debt discount		864,071			-		864,071			-
Loss on change in fair value of derivatives		189,612			-		189,612			-
Gain on extinguishment of debt		(12,807	)		-		(12,807	)		-
Total other expense, net	$	1,708,061		$	12,203	$	1,838,113		$	41,656

The increase in other expense is primarily a result of amortization of debt discounts and losses on changes in fair values of derivatives and interest expense on the convertible notes assumed by PCTI on July 10, 2020.

Net loss

The net loss for the three and nine months ended September 30, 2020, was $6,563,262 and $6,862,676 respectively, compared to $70,708 and $371,975 for the three and nine months ended September 30, 2019, respectively. The increases are a result of the changes discussed above.

Liquidity and Capital Resources

Currently, we have limited operating capital. Our current capital and our other existing resources will be sufficient to provide the working capital needed for our current business, however, additional capital will be required to meet our debt obligations, and to further expand our business. We may be unable to obtain the additional capital required. Our inability to generate capital or raise additional funds when required will have a negative impact on our business development and financial results.

For the nine months ended September 30, 2020, we primarily funded our business operations with $750,000 of proceeds received pursuant to an agreement to provide future perpetual payments of 3% of revenues, $673,000 from the issuances of promissory notes, $289,000 of proceeds from the issuances of convertible note financings as well as $400,000 advance from affiliate and $42,420 received from shareholders. Of the proceeds, $82,757 was used for repayment of convertible notes and notes payable and $69,470 was paid back to shareholders.

As of September 30, 2020, we had cash of $1,706,257 as compared to $27,382 at December 31, 2019. As of September 30, 2020, we had current liabilities of $6,590,839 (including $2,250,953 of non-cash derivative liabilities), compared to current assets of $1,954,962, which resulted in a working capital deficit of $4,635,877. The current liabilities are comprised of accounts payable, accrued expenses, convertible debt, derivative liabilities and notes payable.

In December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to most other countries and infections have been reported globally. Because COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but it may have a material adverse impact on our business, financial condition and results of operations. Management expects that its business will be impacted to some degree, but the significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which it may have an impact cannot be determined at this time.

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Operating Activities

For the nine months ended September 30, 2020, net cash used in operating activities from continuing operations was $878,327 compared to $36,262 for the nine months ended September 30, 2019. For the nine months ended September 30, 2020, our net cash used in operating activities was primarily attributable to the net loss of $6,862,676, adjusted by stock-based compensation of $4,286,648, the non-cash expenses of interest and amortization and depreciation of $1,447,935 and losses on the fair value changes in derivatives of $189,612. Net changes of $72,960 in operating assets and liabilities reduced the cash used in operating activities.

For the nine months ended September 30, 2019, net cash used in operating activities of $36,262 was primarily attributable to the net loss of $371,975, adjusted non-cash expenses of depreciation of $5,445, and net changes of $330,268 in operating assets and liabilities reduced the cash used in operating activities.

Investing Activities

For the nine months ended September 30, 2020, the net cash provided by investing activities was $1,577,566, compared to $6,967 for the nine months ended September 30, 2019. For the nine months ended September 30, 2020, the Company received proceeds of $750,000 pursuant to an obligation to pay a perpetual 3% fee of revenues, acquired $470,849 cash, $400,0 advance from affiliate and $42,240 from shareholders. During the nine months ended September 30, 2020, the Company purchased $16,233 of office furniture and equipment and repaid $69,470 to shareholders.

For the nine months ended September 30, 2019, the principal investing activity included receiving $110,000 from shareholders and the repayment of $99,891 to shareholders and the purchase of $3,142 of fixed assets.

Financing Activities

For the nine months ended September 30, 2020, the net cash provided by financing activities was $979,643, compared to cash used in financing activities of $10,193 for the nine months ended September 30, 2019. During the nine months ended September 30, 2020, we received $289,000 of proceeds from the issuances of convertible note financings, $673,000 from the issuances of promissory notes and $100,400 from the Payroll Protection Program. During the nine months ended September 30, 2020, the Company repaid $82,757 of principal of convertible notes and notes payable.

For the nine months ended September 30, 2019, the Company made payments on notes payable of $10,193.

OFF BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

Critical Accounting Policies

Our significant accounting policies are described in more details in the notes to our financial statements appearing elsewhere in this Quarterly Report on Form 10-Q. We believe the following accounting policies to be most critical to the judgement and estimates used in the preparation of our unaudited financial statements:

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Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Form 8-K/A filed on September 25, 2020.

Use of Estimates

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

Revenue Recognition

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. For the comparative periods, revenue has not been adjusted and continues to be reported under ASC 605 — Revenue Recognition. Under ASC 605, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. The Company has no outstanding contracts with any of is’ customers.

Earnings (Loss) Per Share

The Company computes net loss per share in accordance with FASB ASC 260, “Earnings per Share.” ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the statement of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury stock method, and convertible notes and stock warrants, using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and conversion of convertible notes. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not Applicable.

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Item 4. Controls and Procedures.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act 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 Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of September 30, 2020. Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective for the reasons discussed below.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of September 30, 2020, the Company determined that there were control deficiencies that constituted material weaknesses, as described below.

1.

We do not have an Audit Committee – While not being legally obligated to have an audit committee, it is the management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial statement. Currently the Board of Directors acts in the capacity of the Audit Committee, and does not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.

2.

We did not maintain appropriate cash controls – As of June 30, 2020, the Company has not maintained sufficient internal controls over financial reporting for cash, including failure to segregate cash handling and accounting functions, and did not require dual signatures on the Company’s bank accounts.

Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.

Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.

Changes in Internal Controls over Financial Reporting

There has been no change in our internal control over financial reporting occurred during the three months ended September 30, 2020, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

We know of no material, existing or pending legal proceedings against our Company, 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 interest.

Item 1A. RISK FACTORS

Not applicable for smaller reporting companies.

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

During the three months ended September 30, 2020, holders of an aggregate of $1,443,821 in principal and $239,428 of accrued interest and fees of convertible notes issued by the Company, converted their debt into 1,181,993,894 shares of our common stock at an average conversion price of $0.0014 per share. The Company also issued 106,528,473 shares of common stock upon the cashless exercises of warrants.

The shares described above were issued pursuant to the exemption from registration requirements relying on Section 4(a)(2) of the Securities Act.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURE

Not applicable.

Item 5. OTHER INFORMATION

(a)	None.
(b)	During the quarter ended September 30, 2020, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

Item 6. EXHIBITS

The following documents are filed as part of this report:

Exhibit No.	Description
2.1	Share Exchange Agreement dated April 5, 2018 by and among Newmarkt Corp., the shareholders of Ozop Surgical, Inc., Ozop Surgical, Inc. and Denis Razvodovskij (Incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K filed on April 19, 2018).
2.2	Stock Purchase Agreement dated June 26, 2020, by and among Ozop Surgical Corp., Power Conversion Technologies, Inc. and Catherine Chis (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on June 29, 2020).
2.3	Merger Agreement and Plan of Merger between Ozop Surgical Corp. and Ozop Surgical Name Change Subsidiary, Inc. (Incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K filed on November 13, 2020).
3.1	Articles of Incorporation (Incorporated by reference to our General Form for Registration of Securities on Form S-1 filed on August 1, 2016)

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3.2	Bylaws (Incorporated by reference to our General Form for Registration of Securities on Form S-1 filed on August 1, 2016)
3.3	Certificate of Amendment of Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on May 8, 2018 (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on May 14, 2018).
3.4	Certificate of Designations for Series B Preferred Stock. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on April 2, 2019).
3.5	Amended and Restated Bylaws of Ozop Surgical Corp. adopted on May 22, 2019. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on May 22, 2019).
3.6	Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on July 25, 2019. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on July 30, 2019).
3.7	Certificate of Designation of Series C Preferred Stock. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on September 24, 2019).
3.8	Certificate of Withdrawal of Series B Preferred Stock. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on September 24, 2019).
3.9	Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on October 29, 2019. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on October 31, 2019).
3.10	Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on December 30, 2020, (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on December 31, 2019).
3.11	Amended and Restated Articles of Incorporation as filed with the Nevada Secretary of State on January 21, 2020. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on February 7, 2020).
3.12	Amended and Restated Certificate of Designation of Series C Preferred Stock. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on February 5, 2020).
3.13	Amendment to Certificate of Designation of Series C Preferred Stock dated July 7, 2020 (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on July 10, 2020).
3.14	Certificate of Designation of Series D Preferred Stock dated July 7, 2020 (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on July 10, 2020).
3.15	Certificate of Designation of Series E Preferred Stock dated July 7, 2020 (Incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K filed on July 10, 2020).
3.16	Articles of Incorporation of Ozop Surgical Name Change Subsidiary, Inc. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed on November 13, 2020).
3.17	Articles of Merger between Ozop Surgical Corp. and Ozop Surgical Name Change Subsidiary, Inc. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed on November 13, 2020).
10.1	Share Redemption Agreement dated April 13, 2018, by and between Newmarkt Corp. and Denis Razvodovskij (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on April 19, 2018).
10.2	Equity Transfer Agreement entered into among Zhao Zhen Rong, Sun Gui Ying and OZOP (Guangdong) Medical Technology Co., Ltd. dated July 23, 2018 (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on July 25, 2018).

34

10.3	Intellectual Property Portfolio License Agreement dated February 1, 2018 by and between Loubert S. Suddaby, MD and Spinus, LLC. (Incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q filed on August 20, 2018).
10.4	Amended and Restated Equity Transfer Agreement entered into among Zhao Zhen Rong, Sun Gui Ying and OZOP (Guangdong) Medical Technology Co., Ltd. dated September 27, 2018. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on September 28, 2018).
10.5+	Consulting Agreement entered into between Ozop Surgical Corp and Thomas J. McLeer dated October 1, 2018. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on October 3, 2018).
10.6	Consulting Agreement entered into between Ozop Surgical Corp. and Draper Inc. dated October 19, 2018. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on October 24, 2018).
10.7	October 24, 2018, consulting agreement with Jeffrey Patchen. (Incorporated by reference to Exhibit 10.12 of the Quarterly Report on Form 10-Q for the period ended September 30, 2018, filed on November 14, 2018).
10.8	Agreement of Understanding between Ozop Surgical Corp. and Eric Sui dated February 27, 2019. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on March 6, 2019).
10.9	Separation Agreement between Ozop Surgical Corp. and Salman J. Chaudhry dated March 4, 2019. (Incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed on March 6, 2019).
10.10	Investment Banking Engagement Agreement between Ozop Surgical Corp. and Newbridge Securities Corporation dated March 24, 2019. (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on March 28, 2019).
10.11	Binding Letter of Intent dated February 28, 2020, by and between Ozop Surgical Corp. and Power Conversion Technologies, Inc, and Catherine Chis, (Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed on February 28, 2020).
10.12	Redemption Agreement dated February 28, 2020, by and between Ozop Surgical Corp. and Michael Chermak, (Incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed on February 28, 2020).
10.13+	Employment Agreement dated February 28, 2020, by and between Ozop Surgical Corp. and Brian Conway, (Incorporated by reference to Exhibit 10.3 of the Current Report on Form 8-K filed on February 28, 2020).
31.1*	Certification of Chief Executive Officer required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer required by Rule 13a-14(1) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer and the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18 U.S.C. 63
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

+ Management contract or compensatory plan or arrangement.

35

SIGNATURES

Pursuant to the requirements 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.

Dated: November 23, 2020

/s/ Brian P Conway

Brian P. Conway

Chief Executive Officer

(principal executive officer)

(principal financial and accounting officer)

36

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

I, Brian P Conway, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 of OZOP ENERGY SOLUTIONS, INC. (the “registrant”);

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

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

(b) Designed such internal control over financing 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 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 23, 2020	/s/ Brian P. Conway
	Brian P. Conway, Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

I, Brian P. Conway, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 of OZOP ENERGY SOLUTIONS, INC. (the “registrant”);

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

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

(b) Designed such internal control over financing 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 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 23, 2020	/s/ Brian P. Conway
	Brian P. Conway
	Interim Chief Financial Officer (principal financial and accounting officer)

EX-32.1

EXHIBIT 32.1

Certification of Periodic Financial Report by the Chief Executive Officer and

Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned hereby certifies, in his capacity as an officer of OZOP ENERGY SOLUTIONS, INC. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Dated: November 23, 2020

/s/ Brian P Conway

Brian P. Conway

Chief Executive Officer

(principal executive officer)

(principal financial and accounting officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 20, 2020
Cover [Abstract]
Entity Registrant Name	OZOP ENERGY SOLUTIONS, INC.
Entity Central Index Key	0001679817
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,263,811,170
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

XML

Condensed Consolidated Balance Sheet (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current Assets
Cash	$ 1,706,257	$ 27,382
Prepaid assets	15,826	12,715
Accounts receivable	60,699	19,774
Inventory	172,180	971,813
Total Current Assets	1,954,962	1,031,684
Operating lease right-of-use asset, net	167,500
Property and equipment, net	35,560	15,199
Goodwill	11,396,096
License Rights, net of accumulated amortization	140,624
TOTAL ASSETS	13,694,742	1,046,883
Current Liabilities
Accounts payable and accrued expenses	1,513,704	1,043,179
Related party liabilities	10,308	27,909
Convertible notes payable, net of discounts	861,507
Current portion of notes payable, net of discounts	1,025,962	524,406
Customer deposits	104,460	684,822
Deferred liability	750,000
Derivative liabilities	2,250,953
Operating lease liability, current portion	73,945
Total Current Liabilities	6,590,839	2,280,316
Long Term Liabilities
Note payable, net of discount net of current portion	290,140
Operating lease liability, net of current portion	93,555
TOTAL LIABILITIES	6,974,534	2,280,316
Stockholders' Equity (Deficit)
Preferred stock (10,000,000 shares authorized, par value $0.001)
Common stock (4,990,000,000 shares authorized par value $0.001; 3,140,453,186 (2020) and -0- (2019) shares issued and outstanding)	3,140,453
Additional paid in capital	11,752,789	76,922
Accumulated Deficit	(8,173,908)	(1,310,422)
Accumulated comprehensive gain	(7)
Total Stockholders' Equity (Deficit)	6,720,208	(1,233,433)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	13,694,742	1,046,883
Series C Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock (10,000,000 shares authorized, par value $0.001)	50	48
Series D Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock (10,000,000 shares authorized, par value $0.001)	20	19
Series E Preferred Stock [Member]
Stockholders' Equity (Deficit)
Preferred stock (10,000,000 shares authorized, par value $0.001)	$ 1	$ 1

XML

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	4,990,000,000	4,990,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	3,140,453,186	0
Common stock, shares outstanding	3,140,453,186	0
Series C Preferred Stock [Member]
Preferred stock, shares authorized	50,000	50,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	50,000	47,500
Preferred stock, shares outstanding	50,000	47,500
Series D Preferred Stock [Member]
Preferred stock, shares authorized	20,000	20,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	20,000	18,667
Preferred stock, shares outstanding	20,000	18,667
Series E Preferred Stock [Member]
Preferred stock, shares authorized	2,500	2,500
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	1,000	500
Preferred stock, shares outstanding	1,000	500

XML

Condensed Consolidated Statement of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenue	$ 246,951	$ 176,582	$ 0	$ 416,778
Cost of goods sold	271,510	133,267	1,366,672	432,664
Gross profit (loss)	(24,559)	43,315	126,920	(15,886)
Operating expenses:
General and administrative, related parties	4,415,919		4,415,919
General and administrative, other	414,722	101,820	735,564	314,433
Total operating expenses	4,830,641	101,820	5,151,483	314,433
Loss from operations	(4,855,200)	(58,505)	(5,024,563)	(330,319)
Other (income) expenses:
Interest expense	1,531,256	12,203	1,661,308	41,656
Loss on change in fair value of derivatives	189,612		189,612
Gain on extinguishment of debt	(12,807)		(12,807)
Total Other Expenses	1,708,061	12,203	1,838,113	41,656
Loss before income taxes	(6,563,262)	(70,708)	(6,862,676)	(371,975)
Income tax provision
Net loss	(6,563,262)	(70,708)	(6,862,676)	(371,975)
Other comprehensive loss:
Foreign currency translation adjustment	(7)		(7)
Comprehensive loss	$ (6,563,269)	$ (70,708)	$ (6,862,683)	$ (371,975)
Loss per share basic and fully diluted	$ 0		$ (0.01)
Weighted average shares outstanding Basic and diluted	2,667,510,771		1,045,384,629

XML

Consolidated Statement of Changes In Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member]	Series E Preferred Stock [Member]	Accumulated Comprehensive Income [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2018		$ 48	$ 19	$ 1		$ 76,922	$ (738,827)	$ (661,839)
Beginning balance, shares at Dec. 31, 2018		47,500	18,667	500
Net Loss							(176,122)	(176,122)
Beginning balance at Mar. 31, 2019		$ 48	$ 19	$ 1		76,922	(914,949)	(837,961)
Beginning balance, shares at Mar. 31, 2019		47,500	18,667	500
Beginning balance at Dec. 31, 2018		$ 48	$ 19	$ 1		76,922	(738,827)	(661,839)
Beginning balance, shares at Dec. 31, 2018		47,500	18,667	500
Net Loss								(371,975)
Beginning balance at Sep. 30, 2019		$ 48	$ 19	$ 1		76,922	(1,110,802)	(1,033,814)
Beginning balance, shares at Sep. 30, 2019		47,500	18,667	500
Beginning balance at Mar. 31, 2019		$ 48	$ 19	$ 1		76,922	(914,949)	(837,961)
Beginning balance, shares at Mar. 31, 2019		47,500	18,667	500
Net Loss							(125,145)	(125,145)
Beginning balance at Jun. 30, 2019		$ 48	$ 19	$ 1		76,922	(1,040,094)	(963,106)
Beginning balance, shares at Jun. 30, 2019		47,500	18,667	500
Net Loss							(70,708)	(70,708)
Beginning balance at Sep. 30, 2019		$ 48	$ 19	$ 1		76,922	(1,110,802)	(1,033,814)
Beginning balance, shares at Sep. 30, 2019		47,500	18,667	500
Beginning balance at Dec. 31, 2019		$ 48	$ 19	$ 1		76,922	(1,310,422)	(1,233,433)
Beginning balance, shares at Dec. 31, 2019		47,500	18,667	500
Net Loss							87,549	87,549
Beginning balance at Mar. 31, 2020		$ 48	$ 19	$ 1		76,922	(1,222,873)	(1,145,886)
Beginning balance, shares at Mar. 31, 2020		47,500	18,667	500
Beginning balance at Dec. 31, 2019		$ 48	$ 19	$ 1		76,922	(1,310,422)	(1,233,433)
Beginning balance, shares at Dec. 31, 2019		47,500	18,667	500
Net Loss								(6,862,676)
Beginning balance at Sep. 30, 2020	$ 3,140,453	$ 50	$ 20	$ 1	(7)	11,752,789	(8,173,098)	6,720,208
Beginning balance, shares at Sep. 30, 2020	3,140,453,186	50,000	20,000	1,000
Beginning balance at Mar. 31, 2020		$ 48	$ 19	$ 1		76,922	(1,222,873)	(1,145,886)
Beginning balance, shares at Mar. 31, 2020		47,500	18,667	500
Net Loss							(1,014)	(1,014)
Beginning balance at Jun. 30, 2020		$ 48	$ 19	$ 1		76,922	(1,223,887)	(1,146,898)
Beginning balance, shares at Jun. 30, 2020		47,500	18,667	500
Reverse merger transaction	$ 1,851,931					(1,033,489)		818,442
Reverse merger transaction, shares	1,851,930,729
Shares issued for conversions of note and interest payable	$ 1,181,994					7,997,730		9,179,724
Shares issued for conversions of note and interest payable, shares	1,181,993,984
Shares issued upon cashless exercise of warrants	$ 106,528					(106,528)
Shares issued upon cashless exercise of warrants, shares	106,528,473
Warrants issued in connection with issuance of debt						531,507		531,507
Shares issued pursuant to CEO contract		$ 3	$ 1	$ 1		4,286,648		4,286,652
Shares issued pursuant to CEO contract, shares		2,500	1,333	500
Foreign currency translation adjustment					(7)			(7)
Net Loss							(6,949,211)	(6,563,262)
Beginning balance at Sep. 30, 2020	$ 3,140,453	$ 50	$ 20	$ 1	$ (7)	$ 11,752,789	$ (8,173,098)	$ 6,720,208
Beginning balance, shares at Sep. 30, 2020	3,140,453,186	50,000	20,000	1,000

XML

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss from continuing operations	$ (6,862,676)	$ (371,975)
Adjustments to reconcile net loss to net cash used in operations
Non-cash interest expense	1,413,096
Amortization and depreciation	34,839	5,445
Loss on fair value change of derivatives	(189,612)
Gain on extinguishment of debt	12,807
Stock compensation expense	4,286,648
Changes in operating assets and liabilities:
Accounts receivable	(40,925)	(54,886)
Inventory	799,633	(471,857)
Prepaid expenses	(945)	(13,501)
Accounts payable and accrued expenses	(96,260)	380,849
Related party liabilities	9,458
Operating lease liabilities	(17,638)
Customer deposits	(580,362)	489,663
Net cash used in operating activities	(878,327)	(36,262)
Cash flows from investing activities:
Cash acquired in acquisition	470,849
Advance from affiliate	400,000
Purchase of office and computer equipment	(16,233)	(3,142)
Proceeds received on deferred liability	750,000
Proceeds from shareholders	42,420	110,000
Payments to shareholders	(69,470)	(99,891)
Net cash provided by investing activities	1,577,566	6,967
Cash flows from financing activities:
Proceeds from issuances of convertible notes payable	289,000
Proceeds from issuances of notes payable	663,000
Proceeds from Payroll Protection Program	100,400
Proceeds from Economic Disaster Loan	10,000
Payments of principal of convertible note payable and notes payable	(82,757)	(10,193)
Net cash provided by (used in) financing activities	979,643	(10,193)
Effects of exchange rate on cash	(7)
Net increase (decrease) in cash	1,678,875	(39,488)
Cash, Beginning of period	27,382	47,554
Cash, End of period	1,706,257	8,066
Supplemental disclosure of cash flow information:
Cash paid for interest	120,857	41,656
Cash paid for income taxes
Schedule of non-cash Investing or Financing Activity:
Original issue discount included in convertible notes payable	433,583
Issuance of common stock upon convertible note and accrued interest conversion	1,845,357
Operating lease right-of-use assets and liabilities	185,139
Acquisition of Ozop Surgical Corp
Fair value of equity consideration in acquisition	818,444
Liabilities assumed	11,612,618
Assets acquired	(759,068)
Goodwill	(11,201,145)
Cash acquired	$ 470,849

XML

Organization

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

NOTE 1 - ORGANIZATION

Business

Ozop Energy Solutions, Inc. (the” Company,” “we,” “us” or “our”) was originally incorporated as Newmarkt Corp. on July 17, 2015, under the laws of the State of Nevada.

On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation (“Merger Sub”). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company’s name to “Ozop Energy Solutions, Inc.” That same day the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Merger Sub and filed Articles of Merger (the “Articles of Merger”) with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company to “Ozop Energy Solutions, Inc.”

Stock Purchase Agreement

On July 10, 2020, the Company entered into a Stock Purchase Agreement (the “SPA”) with Power Conversion Technologies, Inc., a Pennsylvania corporation (“PCTI”), and Catherine Chis (“Chis”), PCTI’s Chief Executive Officer (“CEO”) and its sole shareholder. Under the terms of the SPA, the Company acquired one thousand (1,000) shares of PCTI, which represents all of the outstanding shares of PCTI, from Chis in exchange for the issuance of 47,500 shares of the Company’s Series C Preferred Stock, 18,667 shares of the Company’s Series D Preferred Stock, and 500 shares of the Company’s Series E Preferred Stock to Chis. The Acquisition is being accounted for as a business combination and was treated as a reverse acquisition for accounting purposes with PCTI as the accounting acquirer in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). In accordance with the accounting treatment for a reverse acquisition, the Company’s historical financial statements prior to the reverse merger were and will be replaced with the historical financial statements of PCTI prior to the reverse merger, in all future filings with the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements after completion of the reverse merger have and will include the assets, liabilities and results of operations of the combined company from and after the closing date of the reverse merger.

PCTI designs, develops, manufactures and distributes standard and custom power electronic solutions. PCTI serves clients in several industries including energy storage, shore power, DEWs, microgrid, telecommunications, military, transportation, renewable energy, aerospace and mission critical defense systems. Customers include the United States military, other global military organizations and many of the world’s largest industrial manufacturers. All of its products are manufactured in the United States. Because of the Company’s product scope and the high-power niche that their products occupy, the Company is aggressively targeting the rapidly growing renewable and energy storage markets. The Company’s mission is to be a global leader for high power electronics with a standard of continued innovation.

The Company utilized the Option Pricing Method (the “OPM”) to value the transaction. The OPM method treats all equity linked instruments as call options on the enterprise value, with exercise prices and liquidation preferences based on the terms of the various common, preferred, options, warrants, and convertible debt. Under this method, the common stock only has value if the funds available for distribution to the shareholders exceed the liquidation preferences of the preferred stock and face value of the convertible debt. The timing of a liquidity event is required to utilize this method. The OPM considers the various terms of the stockholder agreements—including the level of seniority among the securities, dividend policy, conversion ratios, and cash allocations—upon liquidation of the enterprise. In addition, the method implicitly considers the effect of the liquidation preference as of the future liquidation date, not as of the valuation date. A feature of the OPM is that it explicitly recognizes the option-like payoffs of the various share classes utilizing information in the underlying asset (that is, estimated volatility) and the risk-free rate to adjust for risk by adjusting the probabilities of future payoffs. The following table summarizes the preliminary value of the consideration issued and the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the transaction . The company preliminarily recorded the excess as goodwill and will analyze within the measurement period if there should be an allocation to identifiable intangible assets:

	Purchase Price Allocation
Fair value of OZOP equity consideration issued	$	818,444
Assets acquired	$	1,229,917
Goodwill		11,201,145
Liabilities assumed		(11,612,618	)
	$	818,444

Included in the Unaudited Condensed Consolidated Statements of Comprehensive Loss for the nine months ended September 30, 2020, are the results of Ozop, the accounting acquiree, of revenues of $-0- and a loss before income taxes of $6,228,022.The following table provides unaudited pro forma results of operations for the nine months ended September 30, 2020, and 2019, as if the acquisition had been consummated as of the beginning of that period presented. The pro forma results include the effect of certain purchase accounting adjustments, such as the estimated changes in depreciation and amortization expense on the acquired intangible assets. However, pro forma results do not include any anticipated cost savings (if any) of the combined companies. Accordingly, such amounts are not necessarily indicative of the results if the acquisition has occurred on the date indicated, or which may occur in the future.

	Unaudited pro forma results nine months ended September 30, 2020			Unaudited pro forma results nine months ended September 30, 2019
Revenues	$	1,493,592		$	501,931
Loss before income taxes		(40,027,669	)		(4,809,301	)
Basic and fully diluted loss per share	$	(0.02	)	$	(0.14	)

Corporate History

OZOP was originally incorporated in Switzerland on November 28, 1998 under the name Perma Consultants Holding AG (“Perma”). On July 19, 2016, Mr. Eric Siu (“Siu”), a former director purchased 100% of the outstanding capital stock of Perma and changed the name from Perma to Ozop Surgical AG (“Ozop AG”). On February 1, 2018, Ozop AG was re-domiciled as a Delaware corporation and changed its name to Ozop Surgical, Inc. On July 28, 2016, Ozop formed as the sole member, Ozop Surgical, LLC (“Ozop LLC”), a Wyoming limited liability company. On October 28, 2016, Ozop acquired 100% of Ozop Surgical Limited (“Ozop HK”), from Siu, the sole shareholder of Ozop HK. Ozop HK, is a private limited company incorporated in Hong Kong.

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Going Concern and Management's Plans

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern and Management's Plans

NOTE 2 – GOING CONCERN AND MANAGEMENT’S PLANS

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of September 30, 2020, the Company had an accumulated deficit of $8,173,098 and a working capital deficit of $4,635,877. In addition, the Company has generated losses since inception. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern.

In December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to most other countries and infections have been reported globally. Because COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time but it may have a material adverse impact on our business, financial condition and results of operations. Management expects that its business will be impacted to some degree, but the significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which it may have an impact cannot be determined at this time.

Management’s Plans

As a public company, management believes it will be able to access the public equities market for fund raising for product development and regulatory approvals, sales and marketing and as we expand our distribution in the US market, we will need to meet increasing inventory requirements.

On July 10, 2020, the Company entered into the SPA with PCTI, and Chis, PCTI’s CEO and its sole shareholder (see Note 1). This transaction takes PCTI public, and allows us to drive future investments into the energy storage market, which Forbes estimates will grow from $59 billion in 2019 to $546 billion by 2035, PCTI’s products, technologies and expertise are a linchpin of this emerging industry.

The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

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Summary of Significant Accounting Pronouncements

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Pronouncements

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Current Report on Form 8-K/A filed on September 25, 2020, which includes the historical financial information of PCTI.

The unaudited condensed consolidated financial statements include the accounts of the Company and PCTI and the Company’s other wholly owned subsidiaries Ozop LLC, Ozop HK and Spinus, LLC (“Spinus”). All intercompany accounts and transactions have been eliminated in consolidation.

Emerging Growth Companies

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period.

Use of Estimates

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

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Cash and cash equivalent balances may, at certain times, exceed federally insured limits

Sales Concentration and credit risk

Following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the three and nine months ended September 30, 2020, and 2019, and their accounts receivable balance as of September 30, 2020:

	Sales % Three Months Ended September 30, 2020			Sales % Three Months Ended September 30, 2019			Sales % Nine Months Ended September 30, 2020			Sales % Nine Months Ended September 30, 2019			Accounts receivable balance September 30, 2020
Customer A		29	%		-	%		60	%		-	%	$	-
Customer B		19	%		-	%		14	%		-	%		-
Customer C		23	%		-	%		-	%		-	%		34,011
Customer D		12	%		-	%		-	%		-	%		-
Customer E		-	%		29	%		-	%		12	%		-
Customer F		-	%		16	%		-	%		-	%		-
Customer G		-	%		12	%		-	%		-	%		-
Customer H		-	%		-	%		-	%		31	%		-
Customer I		-	%		14	%		-	%		-	%		-

As disclosed in the above table, PCTI, historically does not have year to year many recurring clients as the Company produces capital equipment for its’ customers.

Accounts Receivable

The Company records accounts receivable at the time products and services are delivered. An allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance (if any) is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience.

Inventory

Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues.

The components of inventories at September 30, 2020, and December 31, 2019, are as follows:

	2020		2019
Raw materials	$	116,953	$	116,329
Work in process		45,585		845,218
Finished goods		9,643		10,266
	$	172,181	$	971,813

Purchase concentration

The principal purchases by the Company is comprised of parts and raw materials that the Company assembles and manufactures and sells to its customers. Following is a summary of suppliers who accounted for more than ten percent (10%) of the Company’s purchases for the three and nine months ended September 30, 2020, and 2019:

	Purchase % Three Months Ended September 30, 2020			Purchase % Three Months Ended September 30, 2019			Purchase % Nine Months Ended September 30, 2020			Purchase % Nine Months Ended September 30, 2019
Supplier A		11	%		-	%		-	%		-	%
Supplier B		15	%		-	%		10	%		-	%
Supplier C		18	%		-	%		-	%		-	%
Supplier D		-	%		17	%		-	%		-	%
Supplier E		-	%		14	%		-	%		-	%
Supplier F		-	%		-	%		15	%		-	%
Supplier G		-	%		-	%		26	%		-	%

Suppliers to the Company vary from period to period dependent upon our customer’s order specifications. In any specific reporting period, we may be relying on certain vendors, however these vendors will vary dependent on the parts and materials needed. The Company believes its relationships with all of the above vendors is good, and we are not reliant on any particular vendor for future needs.

Property, plant and equipment

Property and equipment are stated at cost, and depreciation is provided by use of a straight-line method over the estimated useful lives of the assets.

The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. The estimated useful lives of property and equipment is as follows:

	September 30, 2020			December 31, 2019
Office equipment	$	113,025		$	78,851
Less: Accumulated Depreciation		(77,465	)		(63,642	)
Property and Equipment, Net	$	35,560		$	15,199

Depreciation expense was $3,562 and $6,784 for the three and nine months ended September 30, 2020, respectively, and $1,815 and $5,445 for the three and nine months ended September 30, 2019, respectively.

Intangible Assets

Intangible assets primarily represent purchased patent and license rights. The Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the three and nine months ended September 30, 2020, the Company recorded amortization expense of $10,417. In accordance with ASC 350, “Intangibles—Goodwill and Other,” goodwill and other intangible assets with indefinite lives are no longer subject to amortization but are tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired.

Goodwill

Goodwill is measured as the excess of consideration transferred and the net of the acquisition date fair value of assets acquired, and liabilities assumed in a business acquisition. The Company reviews the goodwill allocated to each of our reporting units for possible impairment annually and whenever events or changes in circumstances indicate carrying amount may not be recoverable. When assessing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its’ carrying amount.

Goodwill is tested annually for impairment on January 1, and at any time upon occurrence of certain events or changes in circumstances. In assessing the qualitative factors, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances, and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry, and market considerations, cost factors, overall financial performance and share price trends, and making the assessment as to whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

The carrying amount of each reporting unit is determined based upon the assignment of our assets and liabilities, including existing goodwill and other intangible assets, to the identified reporting units. Where an acquisition benefits only one reporting unit, the Company allocates, as of the acquisition date, all goodwill for that acquisition to the reporting unit that will benefit. Where the Company has had an acquisition that benefited more than one reporting unit, The Company has assigned the goodwill to our reporting units as of the acquisition date such that the goodwill assigned to a reporting unit is the excess of the fair value of the acquired business, or portion thereof, to be included in that reporting unit over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit.

The transaction with PCTI resulted in recognizing goodwill of $11,201,145 (see Note 1).

Revenue Recognition

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. Under ASC 606, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. Other than The Company has no outstanding contracts with any of its’ customers. The Company recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms.

For contracts with customers, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product to the customer or receipt of the product by the customer and without significant judgments. Advance payments are typically required for commercial customers and are recorded as current liability until revenue is recognized. Advance payments are not required for government customers. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer.

For the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges.

There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three and nine months ended September 30, 2020, and 2019.

Advertising and Marketing Expenses

The Company expenses advertising and marketing costs as incurred. For the nine months ended September 30, 2020, and 2019, the Company recorded $47,325 and $232, respectively, of advertising and marketing expenses.

Research and Development

Costs and expenses that can be clearly identified as research and development are charged to expense as incurred. For the three and nine months ended September 30, 2020, and 2019, the Company did not record any research and development expenses.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities.

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of this note transaction and the effective conversion price embedded in this note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

Fair Value of Financial Instruments

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

The following are the hierarchical levels of inputs to measure fair value:

● Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

● Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

● Level 3 - Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.

The following table represents the Company’s derivative instruments that are measured at fair value on a recurring basis as of September 30, 2020, for each fair value hierarchy level:

September 30, 2020	Derivative Liabilities		Total
Level I	$	-	$	-
Level II	$	-	$	-
Level III	$	2,250,953	$	2,250,953

Leases

Effective July 10, 2020, the Company began accounting for leases under ASU 2016-02 (see Note 14), applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the inception of a contract the Company assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. We allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments.

Operating lease ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate of 7.5%, based on the information available at the adoption date in determining the present value of future payments. Operating lease expense is recognized pursuant to on a straight-line basis over the lease term and is included in rent in the condensed consolidated statements of operations.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented.

Foreign Currency Translation

The accounts of the Company’s Hong Kong subsidiary are maintained in Hong Kong dollars and the accounts of the U.S. companies are maintained in USD. The accounts of the Hong Kong subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of comprehensive income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. Gains and losses resulting from the foreign currency transactions are reflected in the statements of comprehensive income.

Relevant exchange rates used in the preparation of the consolidated financial statements are as follows for the period ended September 30, 2020, (Hong Kong dollar per one U.S. dollar):

	September 30, 2020
Balance sheet date		.1290
Average rate for statements of operations and comprehensive loss		.1289

Earnings (Loss) Per Share

The Company reports earnings (loss) per share in accordance with ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. As of September 30, 2020, and 2019, the Company’s dilutive securities are convertible into approximately 9,744,058,757 shares of common stock. There were no dilutive securities as of September 30, 2019. This amount is not included in the computation of dilutive loss per share because their impact is antidilutive. The following table represents the classes of dilutive securities as of September 30, 2020:

	September 30, 2020
Common stock to be issued		1,350
Convertible preferred stock		9,421,359,558
Convertible notes payable		322,697,849
		9,744,058,75

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018.

In January 2017, the FASB issued ASU No. 217-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments simplify the subsequent measurement of goodwill and eliminate the two-step goodwill impairment test. The Company will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate any material impact on the condensed consolidated financial statements.

Other than the above there have no recent accounting pronouncements or changes in accounting pronouncements during the period ended September 30, 2020, that are of significance or potential significance to the Company.

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Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 4 – INTANGIBLE ASSETS

Patents as of September 30, 2020, consist of the following:

	September 30, 2020
Patents and license rights	$	151,041
Accumulated amortization		(10,417	)
Net carrying amount	$	140,624

Amortization expense for the three and nine months ended September 30, 2020, was $10,417.

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Convertible Notes Payable

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Convertible Notes Payable

NOTE 5 - CONVERTIBLE NOTES PAYABLE

Since the transaction with PCTI is being accounted for as a business combination and was treated as a reverse acquisition for accounting purposes with PCTI as the accounting acquirer in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). In accordance with the accounting treatment for a reverse acquisition, the Company’s historical financial statements prior to the reverse merger were and will be replaced with the historical financial statements of PCTI prior to the reverse merger. The consolidated financial statements after completion of the reverse merger have and will include the assets, liabilities and results of operations of the combined company from and after the closing date of the reverse merger. Accordingly, as of July 10, 2020, PCTI assumed the liabilities of the Company, including the convertible note balances.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 15% convertible note issued by the Company on August 18, 2017, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, dated February 18, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for the thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $2,086.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 15% convertible note issued by the Company on September 13, 2017. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of this note was $25,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on February 26, 2020, pursuant to a Securities Purchase Agreement. The SPA includes customary representations, warranties and covenants by the Company and customary closing conditions. In conjunction with this note, the Company issued a warrant to purchase 2,212,500 shares of common stock at an exercise price of $0.03, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. As of July 10, 2020, the outstanding principal balance of this note was $132,750 with a carrying value of $66,176, net of unamortized discounts of $66,574. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $66,574 was charged to interest expense. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $132,750 of the face value and $7,943 of accrued interest into 83,214,457 shares of common stock at an average conversion price of $0.0017. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on February 26, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, dated March 3, 2020 with a maturity date of February 26, 2021. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $798,750. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $798,750 of the face value and $147,549 of accrued interest into 496,756,528 shares of common stock at an average conversion price of $0.0019. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible note issued by the Company on August 21, 2019, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, with a maturity date of August 21, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $155,632. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $155,632 of the face value and $48,306 of accrued interest into 219,963,737 shares of common stock at an average conversion price of $0.0009. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on March 9, 2020, (the “Issuance Date”) to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $.25 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.25 or 50% of the lowest trading price for the thirty trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $80,000 with a carrying value of $53,333, net of unamortized discounts of $26,667. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $26,667 was charged to interest expense. As of September 30, 2020, the outstanding principal balance and carrying value of this note was $80,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 22% convertible note issued by the Company on December 5, 2018, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 17, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $352,695. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $352,695 of the face value and $89,295 of accrued interest into 273,028,909 shares of common stock at an average conversion price of $0.0016. As of September 30, 2020, the outstanding principal balance of this note was $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due 22% convertible note issued by the Company on October 19, 2018, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 24, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $67.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on April 27, 2020, (the “Issuance Date”) to an investor. This note matures on April 27, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $60,000 with a carrying value of $11,500, net of unamortized discounts of $48,500. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $13,500 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $60,000 with a carrying value of $25,000, net of unamortized discounts of $35,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on August 23, 2019, with a maturity date of May 23, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on April 28, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $14,831.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on April 28, 2020, (the “Issuance Date”) to an investor. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. As of July 10, 2020, the outstanding principal balance of this note was $53,000 with a carrying value of $10,158, net of unamortized discounts of $42,842. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $11,925 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $53,000 with a carrying value of $22,083, net of unamortized discounts of $30,917.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 4, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to the lower of $0.50 or 58% multiplied by the average of the two lowest closing trading price or bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. In conjunction with this note, the Company issued a warrant to purchase 3,666,666 shares of common stock at an exercise price of $0.015, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. As of July 10, 2020, the outstanding principal balance of this note was $110,000 with a carrying value of $18,860, net of unamortized discounts of $91,140. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $25,369 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $110,000 with a carrying value of $44,229, net of unamortized discounts of $65,771.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 5, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $03 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.03 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $162,000 with a carrying value of $62,100, net of unamortized discounts of $99,900. In conjunction with this note, the Company issued a warrant to purchase 4,325,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $72,900 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $162,000 with a carrying value of $135,000, net of unamortized discounts of $27,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on May 7, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures on May 7, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $5,000, net of unamortized discounts of $25,000. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $6,875 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $30,000 with a carrying value of $11,875, net of unamortized discounts of $18,125.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on January 8, 2020, with a maturity date of January 8, 2021, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 15, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $115,500, with a carrying value of $56,306, net of unamortized discounts of $59,194. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $59,194 was charged to interest expense. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $115,067 of the face value and $2,408 of accrued interest and fees into 88,500,000 shares of common stock at an average conversion price of $0.00133. As of September 30, 2020, the outstanding principal balance of this note is $433.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a convertible note issued by the Company on November 27, 2019, with a maturity date of November 27, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 15, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of September 30, 2020, and July 10, 2020, the outstanding principal balance of assigned note was $296.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on May 28, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures on May 28, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. As of July 10, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $3,250, net of unamortized discounts of $26,750. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $6,750 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $30,000 with a carrying value of $10,000, net of unamortized discounts of $20,000.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a past-due convertible note issued by the Company on May 29, 2019, with a maturity date of May 29, 2020, and purchased by an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement on May 28, 2020. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. As of July 10, 2020, the outstanding principal balance of assigned note was $31,043. For the period from July 11, 2020 to September 30, 2020, the investor converted a total of $31,043 of the face value and $53,337 of accrued interest and fees into 86,262,262 shares of common stock at an average conversion price of $0.001. As of September 30, 2020, the note balance is $-0-.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on June 1, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $27,625, net of unamortized discounts of $99,875. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $57,375 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $127,500 with a carrying value of $85,000, net of unamortized discounts of $42,500. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 12% convertible promissory note issued by the Company on June 11, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the twenty- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. As of July 10, 2020, the outstanding principal balance of this note was $53,000 with a carrying value of $4,417, net of unamortized discounts of $48,583. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $11,792 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $53,000 with a carrying value of $16,209, net of unamortized discounts of $36,791.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on June 30, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $129,500 with a carrying value of $8,375, net of unamortized discounts of $121,125. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $ was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $129,500 with a carrying value of $65,750, net of unamortized discounts of $63,750. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On July 10, 2020, PCTI (the accounting acquirer) assumed the balance of a 15% convertible promissory note issued by the Company on July 8, 2020, (the “Issuance Date”) to an investor, pursuant to a Securities Purchase Agreement. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. As of July 10, 2020, the outstanding principal balance of this note was $250,000 with a carrying value of $-0-, net of unamortized discounts of $250,000. For the period from July 11, 2020 to September 30, 2020, amortization of the debt discounts of $114,583 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note is $250,000 with a carrying value of $114,583, net of unamortized discounts of $135,417. In conjunction with this note, the Company issued a warrant to purchase 12,500,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

On February 26, 2020, (the “Issuance Date”) PCTI issued a 12% Convertible Promissory Note (the “Note”), in the principal amount of $106,950, to an investor. This note matures 12 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at 55% of the lowest trading price for the twenty-five trading days prior to the conversion. If the trading price cannot be calculated for such security on such date, the trading price shall be the fair market value as mutually determined by the Company and the investor for which the calculation of the trading price is required in order to determine the conversion price. PCTI received proceeds of $85,000 on February 26, 2020, and the Note included an original issue discount of $13,950 and lender costs of $8,000. This note proceeds will be used by the Company for general working capital purposes. The Note also requires a daily payment via ACH of $400. On June 25, 2020, the Note was amended to add $111,225 of additional principal to the outstanding balance. Pursuant to the PCTI transaction with Ozop, on July 10, 2020, the conversion price is equal to 45% multiplied by the lowest closing bid price during the twenty-five-trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. Accordingly, the Company determined the conversion feature of the Notes represented an embedded derivative since the note is convertible into a variable number of shares upon conversion, as the note was not considered to be conventional debt under ASC 815 and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability. The embedded feature included in the note resulted in an initial debt discount of $85,000, interest expense of $135,786 and initial derivative liability of $220,786. For the nine months ended September 30, 2020, amortization of the debt discounts of $54,793 was charged to interest expense. For the nine months ended September 30, 2020, principal payments of $56,400 were paid. As of September 30, 2020, the outstanding principal balance of this note was $161,775 with a carrying value of $116,935, net of unamortized discounts of $44,840.

On July 15, 2020, (the “Issuance Date”) the Company issued a 15% convertible promissory note, in the principal amount of $127,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $102,000 on July 22, 2020, and this note included an original issue discount of $25,500. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. The Company allocated the proceeds to the debt of $82,068 and to the warrant $19,932 based on the relative fair value. The embedded conversion feature included in this note resulted in an initial derivative liability of $207,699, a debt discount of $82,068 with the excess of $125,541 charged to interest expense of $125,541. For the nine months ended September 30, 2020, amortization of the debt discounts of $53,125 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $53,125, net of unamortized discounts of $74,375.

On July 29, 2020, (the “Issuance Date”) the Company issued a 15% convertible promissory note, in the principal amount of $127,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $100,000 on August 3, 2020, and this note included an original issue discount of $25,500. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 12,750,000 shares of common stock at an exercise price of $0.01, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. The Company allocated the proceeds to the debt $61,733 and warrant $40,267 based on the relative fair value. The embedded conversion feature included in this note resulted in an initial derivative liability of $198,239, a debt discount of $61,733 with the excess of $136,506 charged to interest expense. For the nine months ended September 30, 2020, amortization of the debt discounts of $42,500 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $42,500, net of unamortized discounts of $85,000.

A summary of the convertible note balance as of September 30, 2020, is as follows:

	September 30, 2020
Principal balance	$	1,544,489
Unamortized discount		(682,982	)
Ending balance, net	$	861,507

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Derivative Liabilities

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Derivative Liabilities

NOTE 6 – DERIVATIVE LIABILITIES

The Company determined the conversion feature of the convertible notes, which all contain variable conversion rates, represented an embedded derivative since the notes were convertible into a variable number of shares upon conversion. Accordingly, the notes are not considered to be conventional debt under ASC 815 and the embedded conversion feature was bifurcated from the debt host and accounted for as a derivative liability.

The Company valued the derivative liabilities at September 30, 2020, at $2,250,953. The Company used the Monte Carlo simulation valuation model with the following assumptions as of September 30, 2020, risk free interest rates at 0.11%, and volatility of 85% to 94%. The initial derivative liabilities for convertible notes issued from July 11, 2020 to September 30, 2020, used the following assumptions; risk-free interest rates from 0.12% to 0.17% and volatility of 96% to 106%.

A summary of the activity related to derivative liabilities for the period from July 10, 2020 to September 30, 2020, is as follows:

Balance- July 10, 2020, assumed pursuant to PCTI transaction	$	8,743,231
Issued during period		626,534
Converted or paid		(7,308,426	)
Change in fair value recognized in operations		189,614
Balance- September 30, 2020	$	2,250,953

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Notes Payable

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Notes Payable

NOTE 7 – NOTES PAYABLE

The Company has the following note payables outstanding:

	September 30, 2020		December 31, 2019
Note payable bank, interest at 7.75%, matures December 26,2020	$	156,648	$	174,444
Note payable bank, interest at 6.5%, matures December 26, 2020		341,400		349,962
Economic Injury Disaster Loan		10,000		-
Paycheck Protection Program loan		100,400		-
Notes payable, interest at 8%, matured January 5, 2020, currently in default		45,000		-
Other, due on demand, interest at 6%		50,000		-
Note payable $210,000 face value, interest at 18%, matures June 23, 2022, net of discount of $30,260		179,740		-
Note payable $203,000 face value, interest at 12%, matures June 25, 2021, net of discount of $19,935		183,065		-
Note payable $750,000 face value, interest at 12%, matures August 24, 2021, net of discount of $500,151		249,839		-
Sub- total notes payable		1,316,102		542,406
Less long-term portion, net of discount		290,140		-
Current portion of notes payable, net of discount	$	1,015,962	$	542,406

On October 26, 2016, PCTI entered into a $210,000 note payable with a bank. On July 24, 2020, due to defaults with the terms of the note, the note was amended with the outstanding balance due December 26, 2020 and the interest rate changed to 7.75%. Borrowings are collateralized by substantially all of the assets of PCTI and the personal guarantee of PCTI’s President. At September 30, 2020 and December 31, 2019, $150,646 and $174,444, respectively, was outstanding on the note payable.

On September 25, 2019, PCTI renewed their $350,000 promissory note with a bank that provides for borrowings of up to $350,000. Interest is due monthly and the principal was due on April 12, 2020, however, on July 24, 2020, due to PCTI being in default with agreement was amended with a change in the maturity date to December 26, 2020, and the interest rate changed to the prime rate plus 3.25% (6.5% at September 30, 2020). Borrowings are collateralized by substantially all of the assets of PCTI and the personal guarantee of PCTI’s President. At September 30, 2020 and December 31, 2019, $347,588 and $349,962, respectively, was outstanding on the promissory note.

On August 24, 2020 (the “Issue Date”), the Company entered into a 12%, $750,000 face value promissory note with a third-party (the “Holder”) due August 24, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $125,000 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date. The Company received proceeds of $663,000 on August 25, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $87,000. For the nine months ended September 30, 2020, amortization of the costs of $9,063 was charged to interest expense. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 122,950,819 shares of common stock at an exercise price of $0.0061, subject to adjustments and expires on the five-year anniversary of the Issue Date. The warrants issued resulted in a debt discount of $471,307, with the offset to additional paid in capital. For the nine months ended September 30, 2020, amortization of the debt discount of $49,094 was charged to interest expense. As of September 30, 2020, the outstanding principal balance of this note was $750,000 with a carrying value of $249,839, net of unamortized discounts of $500,151.

On April 20, 2020, PCTI was granted a loan from a bank in the amount of $100,400, pursuant to the Paycheck Protection Program (“PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan matures on April 20, 2022 and bears interest at a rate of 1.0% per annum, payable monthly beginning on November 20, 2020. The loan may be prepaid at any time prior to maturity with no prepayment penalties. Under the terms of the loan, a portion or all of the loan is forgivable to the extent the loan proceeds are used to fund qualifying payroll, rent and utilities during a designated twenty-four-week period. Payments are deferred until the SBA determines the amount to be forgiven. The Company intends to utilize the proceeds of the PPP loan in a manner which will enable qualification as a forgivable loan. However, no assurance can be provided that all or any portion of the PPP loan will be forgiven. The balance on this PPP loan was $10,400 as of September 30, 2020 and has been classified as a long-term liability in notes payable.

On July 14, 2020, PCTI received $10,000 grant under the Economic Injury Disaster Loan (“EIDL”) program. Up to $10,000 of the EIDL can be forgiven as long as such funds were utilized to provide working capital. The first payment due is deferred one year. The entirety of the loan as of September 30, 2020 and has been classified as a long-term liability in notes payable.

The following notes were assumed on July 10, 2020, pursuant to the PCTI transaction:

On June 23, 2020 (the “Execution Date”), the Company entered into a Loan and Securities Purchase Agreement with a third- party (the “Lender”). Pursuant to the agreement in exchange for a $210,000 Promissory Note, inclusive of an original issue discount of $35,000 the Company received proceeds of $175,000 from the Lender. The note carries an interest rate of 18% and matures and is due in one lump sum on the 24- month anniversary (the “Maturity Date”) of the Execution Date. For the first nine months interest may accrue on a monthly basis, and the Company has the option to pay the monthly interest or add such interest to the principal balance of the note. Commencing on the tenth month of the note, all accrued interest, if any, shall be added to the principal amount of the note, and interest on the new principal amount shall become due and payable on a monthly basis. Should the Company default on making any interest payments following the initial nine-months, or paying the note by the Maturity Date, the note shall automatically be converted into an 18% convertible debenture.

On June 25, 2020 (the “Issue Date”), the Company entered into a 12%, $203,000 face value promissory note with a third-party (the “Holder”) due June 25, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $33,333 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date. The Company received proceeds of $176,000 on June 26, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $27,000. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 10,000,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expires on the five-year anniversary of the Issue Date.

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Deferred Liability

9 Months Ended

Sep. 30, 2020

Deferred Liability

Deferred Liability

NOTE 8 – DEFERRED LIABILITY

On September 2, 2020, PCTI entered into an Agreement (the “Agreement”) with a third- party. Pursuant to the terms of the Agreement, in exchange for $750,000, PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement. Payments are due ninety (90) days after each calendar quarter, with the first payment due on or before March 31, 2021, for revenues for the quarter ending December 31, 2020. The Company has recorded the $750,000 as deferred liability on the September 30, 2020, consolidated condensed balance sheet.

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Related Party Transactions

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 9 – RELATED PARTY TRANSACTIONS

Employment Agreement

On July 10, 2020, pursuant to the PCTI transaction, the Company assumed an employment contract entered into on February 28, 2020, between the Company and Mr. Conway (the “Employment Agreement”). Pursuant to the terms of the Employment Agreement, Mr. Conway is to receive an annual salary of $120,000, for his position of CEO of the Company, payable monthly. Mr. Conway was issued 2,500 shares of Series C Preferred Stock. The Company valued the shares at $5,000. On August 28, 2020, Mr. Conway was issued 1,333 shares of Series D Preferred stock and 500 shares of series E Preferred Stock. The Series D Preferred Stock is convertible in the aggregate into three times the number of shares of common stock outstanding at the time of conversion. Mr. Conway owns 6.67% of the issued and outstanding Series D Preferred Stock, and based on the 3,107,037,634 shares outstanding on August 28, 2020, Mr. Conway’s Preferred Stock is convertible into 621,253,401 shares of common stock. Based on the share price of the common stock on that date of $0.0065, the shares were valued at $4,286,648 and recognized as compensation on the accompanying unaudited condensed consolidated Statement of Comprehensive Loss.

Management Fees and related party payables

For the three and nine months ended September 30, 2020, and 2019, the Company recorded expenses to its officers in the following amounts:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
CEO, parent	$	96,771	$	-	$	96,771	$	-
President, subsidiary		32,500		-		32,500		-
Total	$	129,271	$	-	$	129,271	$	-

As of September 30, 2020, and December 31, 2019, included in related party payable is $10,308 and $27,909, respectively, for the amounts owed the CEO of PCTI.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 10 – COMMITMENTS AND CONTINGENCIES

Leases

On October 25, 2019 PCTI executed a non-cancellable lease of office and industrial space totaling 11,800 square feet in Zelienople, PA., which began December 1, 2019 and expires on November 30, 2022. The lease terms include a monthly rent of $7,000 (see Note 12). The Company also pays $3,400 on a month to month basis for its corporate office in Warwick, New York.

Licenses

On February 1, 2018, Spinus entered into an Intellectual Property Licensing Agreement (the “Licensing Agreement”). The Company assumed the obligations under the Licensing Agreement and pledged the assets of Spinus as security. Pursuant to the terms of the Licensing Agreement, in consideration of $250,000 Spinus has the exclusive rights to certain patents and the non-exclusive rights to other patents. The patents surround mechanical or inflatable expandable interbody implant products. The Company paid the $250,000 on November 20, 2018. The Company also will pay a royalty of 7% of net sales on any product sold utilizing any of the patents. There have not been any sales of the licensed products and accordingly, no royalties have been incurred.

Agreements

On March 4, 2019, the Company entered into a Separation Agreement (the “Separation Agreement”) with Salman J. Chaudhry, pursuant to which the Company agreed to pay Mr. Chaudry $227,200 (the “Outstanding Fees”) in certain increments as set forth in the Separation Agreement. As of September 30, 2020, and December 31, 2019, the balance owed Mr. Chaudhry is $162,085.

On July 10, 2020, PCTI assumed a contract entered into by the Company on June 5, 2020, for media relations services with a third-party. Pursuant to the Agreement, the Company will pay the consultants $10,000 per month for the development and execution of a comprehensive media relations plan.

On July 24, 2020, PCTI, the Company’s wholly owned subsidiary, entered into a three- month consulting agreement with a third-party. Pursuant to the agreement, the Company will pay the consultant $10,000 per month and the consultant will provide services, including, but not limited to, identifying PCTI’s best path forward into the renewable energy and energy storage industries as well as advance their presence in the maritime/transportation industry.

On July 29, 2020, PCTI entered into a three-month Performance Solutions Agreement (the “PSA”), with automatic monthly renewals, until terminated either arty on a thirty (30) day written notice to the other party. Pursuant to the PSA, the Company will pay a monthly fee of $5,000 for services including social media and search engine optimization.

On September 2, 2020, PCTI entered into an Agreement (the “Agreement”) with a third- party. Pursuant to the terms of the Agreement, in exchange for $750,000, PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement (see Note 7).

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Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stockholders' Equity

NOTE 11 – STOCKHOLDERS’ EQUITY

Common stock

During the period from July 11, 2020 to September 30, 2020, holders of an aggregate of $1,585,937 in principal and $259,418 of accrued interest and fees of convertible notes issued by the Company and assumed by PCTI on July 10, 2020, converted their debt into 1,181,993,984 shares of our common stock at an average conversion price of $0.0016 per share. The Company also issued 106,528,473 shares of common stock upon the cashless exercise of common stock purchase warrants.

As of September 30, 2020, the Company has 4,990,000,000 shares of $0.001 par value common stock authorized and there are 3,140,453,186 shares of common stock issued and outstanding.

Preferred stock

As of September 30, 2020, 10,000,000 shares have been authorized as preferred stock, par value $0.001 (the “Preferred Stock”), which such Preferred Stock shall be issuable in such series, and with such designations, rights and preferences as the Board of Directors may determine from time to time.

On July 7, 2020, the Company filed an Amended and Restated Certificate of Designation with the State of Nevada of the Company’s Series C Preferred Stock. Under the terms of the Amendment to Certificate of Designation of Series C Preferred Stock, 50,000 shares of the Company’s preferred remain designated as Series C Preferred Stock. The holders of Series C Preferred Stock have no conversion rights and no dividend rights. For so long as any shares of the Series C Preferred Stock remain issued and outstanding, the Holder thereof, voting separately as a class, shall have the right to vote on all shareholder matters equal to sixty-seven (67%) percent of the total vote. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 47,500 shares of Series C preferred Stock to Chis. As of September 30, 2020, there were 50,000 shares of Series D Preferred Stock issued and outstanding, of which 2,500 are issued to Mr. Conway.

On July 7, 2020, the Company filed a Certificate of Designation with the State of Nevada of the Company’s Series D Preferred Stock. Under the terms of the Certificate of Designation of Series D Preferred Stock, 20,000 shares of the Company’s preferred stock have been designated as Series D Convertible Preferred Stock. The holders of the Series D Convertible Preferred Stock shall not be entitled to receive dividends. The holders as a group may, at any time convert all of the shares of Series D Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion, by 3. Except as provided in the Certificate of Designation or as otherwise required by law, no holder of the Series D Convertible Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Company for their vote, waiver, release or other action. The Series D Convertible Preferred Stock shall not bear any liquidation rights. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 18,667 shares of Series D preferred Stock to Chis, and on August 28, 2020. Pursuant to Mr. Conway’s employment agreement, the Company issued 1,333 shares of Series D Preferred Stock to Mr. Conway. As of September 30, 2020, there were 20,000 shares of Series D Preferred Stock issued and outstanding.

On July 7, 2020, the Company filed a Certificate of Designation with the State of Nevada of the Company’s Series E Preferred Stock. Under the terms of the Certificate of Designation of Series E Preferred Stock, 3,000 shares of the Company’s preferred stock have been designated as Series E Preferred Stock. The holders of the Series E Convertible Preferred Stock shall not be entitled to receive dividends. No holder of the Series E Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Corporation for their vote, waiver, release or other action, except as may be otherwise expressly required by law. At any time, the Corporation may redeem for cash out of funds legally available therefor, any or all of the outstanding Preferred Stock (“Optional Redemption”) at $1,000 (one thousand dollars) per share. The shares of Series E Preferred Stock have not been registered under the Securities Act of 1933 or the laws of any state of the United States and may not be transferred without such registration or an exemption from registration. On July 10, 2020, pursuant to the SPA with PCTI, the Company issued 500 shares of Series E preferred Stock to Chis, and on August 28, 2020. Pursuant to Mr. Conway’s employment agreement, the Company issued 500 shares of Series E Preferred Stock to Mr. Conway. As of September 30, 2020, there were 1,000 shares of Series E Preferred Stock issued and outstanding.

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Operating Lease Right-of-Use Assets and Operating Lease Liabilities

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Operating Lease Right-of-Use Assets and Operating Lease Liabilities

NOTE 12 - OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES

On October 25, 2019 PCTI executed a non-cancellable lease for office and industrial space which began December 1, 2019 and expires on November 30, 2022. Operating lease right-of-use assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is our incremental borrowing rate, estimated to be 7.5%, as the interest rate implicit in most of our leases is not readily determinable. Prior to July 10, 2020, PCTI recorded monthly lease expense pursuant to the lease agreement and effective July 10, 2020, pursuant to the PCTI transaction, operating lease expense is recognized pursuant to ASC Topic 842. Leases (Topic 842) over the lease term. During the three and nine months ended September 30, 2020, the Company recorded $21,278 and $63,278, respectively, and $21,125 and $63,375 for the three and nine months ended September 30, 2019, respectively, for this lease.

In adopting Topic 842, the Company has elected the ‘package of practical expedients’, which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. In addition, the Company elected not to apply ASC Topic 842 to arrangements with lease terms of 12 month or less. During the nine months ended September 30, 2019, upon adoption of ASC Topic 842, the Company recorded right-of-use assets and lease liabilities of $185,139.

Right-of- use assets are summarized below:

	September 30, 2020
Office and warehouse lease	$	185,139
Less accumulated amortization		(17,639	)
Right-of-us assets, net	$	167,500

Operating lease liabilities are summarized as follows:

	September 30, 2020
Lease liability	$	167,500
Less current portion		(73,945	)
Long term portion	$	93,555

Maturity of lease liabilities are as follows:

	Amount
For the three months ending December 31, 2020	$	21,000
For the year ending December 31, 2021		84,000
For the eleven months ending November 30, 2022		77,000
Total	$	182,000
Less: present value discount		(14,500	)
Lease liability	$	167,500

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Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 13 – SUBSEQUENT EVENTS

From October 1, 2020, through November 20, 2020, the Company has issued 123,357,984 shares of common stock upon the conversion of $293,449 of principal, accrued interest and fees of convertible notes.

On October 8, 2020, the Company, through its wholly owned subsidiary, PCTI entered into a Consortium Agreement (the “Consortium Agreement”) with Sterling PBES Energy Solution Ltd. (“SPBES”). Under the terms of the Consortium Agreement, PCTI shall offer proposal, execution and service of contracts to supply agreed upon product solutions on behalf of SPBES in the following markets: Marine Industrial Charging Sub-Stations, North America, Europe, the Middle East and North Africa, Southeast Asia, South East Asia, South America and Australasia. SPBES shall be responsible for the project management of the product solutions.

On October 29, 2020, the Company formed a new wholly owned subsidiary, Ozop Surgical Name Change Subsidiary, Inc., a Nevada corporation (“Merger Sub”). The Merger Sub was formed under the Nevada Revised Statutes for the sole purpose and effect of changing the Company’s name to “Ozop Energy Solutions, Inc.” That same day the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Merger Sub and filed Articles of Merger (the “Articles of Merger”) with the Nevada Secretary of State, merging the Merger Sub into the Company, which were stamped effective as of November 3, 2020. As permitted by the Section 92.A.180 of the Nevada Revised Statutes, the sole purpose and effect of the filing of Articles of Merger was to change the name of the Company to “Ozop Energy Solutions, Inc.”

On November 13, 2020 (the “Issue Date”), the Company entered into a 12%, $1,000,000 face value promissory note with a third-party (the “Holder”) due November 13, 2021 (the “Maturity Date”). Principal payments shall be made in six instalments of $166,667 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Company received proceeds of $890,000 on November 20, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $110,000. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 125,000,000 shares of common stock at an exercise price of $0.008, subject to adjustments and expires on the five-year anniversary of the Issue Date.

On November 16, 2020, (the “Issuance Date”) the Company issued a promissory note, in the principal amount of $250,000, to an investor. The note carries a guaranteed interest payment of 15%, which is added to the principal on the Issuance Date. Principal payments shall be made in six instalments of $57,500 commencing May 21, 2021, and continuing each 30 days thereafter for 4 months. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.01 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.01 or the volume weighted average price of the common stock during the five (5) Trading Day period ending on the day prior to conversion. The Company received proceeds of $200,000 on November 19, 2020, and this note included an original issue discount of $50,000. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 35,000,000 shares of common stock at an exercise price of $0.25, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.

The Company has evaluated subsequent events through the date the financial statements were issued. The Company has determined that there are no other such events that warrant disclosure or recognition in the financial statements, except as stated herein.

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Summary of Significant Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2020, and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2020, are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Current Report on Form 8-K/A filed on September 25, 2020, which includes the historical financial information of PCTI.

The unaudited condensed consolidated financial statements include the accounts of the Company and PCTI and the Company’s other wholly owned subsidiaries Ozop LLC, Ozop HK and Spinus, LLC (“Spinus”). All intercompany accounts and transactions have been eliminated in consolidation.

Emerging Growth Companies

Emerging Growth Companies

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period.

Use of Estimates

Use of Estimates

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

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Cash and cash equivalent balances may, at certain times, exceed federally insured limits

Sales Concentration and Credit Risk

Sales Concentration and credit risk

Following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the three and nine months ended September 30, 2020, and 2019, and their accounts receivable balance as of September 30, 2020:

	Sales % Three Months Ended September 30, 2020			Sales % Three Months Ended September 30, 2019			Sales % Nine Months Ended September 30, 2020			Sales % Nine Months Ended September 30, 2019			Accounts receivable balance September 30, 2020
Customer A		29	%		-	%		60	%		-	%	$	-
Customer B		19	%		-	%		14	%		-	%		-
Customer C		23	%		-	%		-	%		-	%		34,011
Customer D		12	%		-	%		-	%		-	%		-
Customer E		-	%		29	%		-	%		12	%		-
Customer F		-	%		16	%		-	%		-	%		-
Customer G		-	%		12	%		-	%		-	%		-
Customer H		-	%		-	%		-	%		31	%		-
Customer I		-	%		14	%		-	%		-	%		-

As disclosed in the above table, PCTI, historically does not have year to year many recurring clients as the Company produces capital equipment for its’ customers.

Accounts Receivable

Accounts Receivable

The Company records accounts receivable at the time products and services are delivered. An allowance for losses is established through a provision for losses charged to expenses. Receivables are charged against the allowance for losses when management believes collectability is unlikely. The allowance (if any) is an amount that management believes will be adequate to absorb estimated losses on existing receivables, based on evaluation of the collectability of the accounts and prior loss experience.

Inventory

Inventory

Inventories are valued at the lower of cost or net realizable value, with cost determined on the first-in, first-out basis. Inventory costs include material, labor and manufacturing overhead. In evaluating the net realizable value of inventory, management also considers, if applicable, other factors, including known trends, market conditions, currency exchange rates and other such issues.

The components of inventories at September 30, 2020, and December 31, 2019, are as follows:

	2020		2019
Raw materials	$	116,953	$	116,329
Work in process		45,585		845,218
Finished goods		9,643		10,266
	$	172,181	$	971,813

Purchase Concentration

Purchase concentration

The principal purchases by the Company is comprised of parts and raw materials that the Company assembles and manufactures and sells to its customers. Following is a summary of suppliers who accounted for more than ten percent (10%) of the Company’s purchases for the three and nine months ended September 30, 2020, and 2019:

	Purchase % Three Months Ended September 30, 2020			Purchase % Three Months Ended September 30, 2019			Purchase % Nine Months Ended September 30, 2020			Purchase % Nine Months Ended September 30, 2019
Supplier A		11	%		-	%		-	%		-	%
Supplier B		15	%		-	%		10	%		-	%
Supplier C		18	%		-	%		-	%		-	%
Supplier D		-	%		17	%		-	%		-	%
Supplier E		-	%		14	%		-	%		-	%
Supplier F		-	%		-	%		15	%		-	%
Supplier G		-	%		-	%		26	%		-	%

Suppliers to the Company vary from period to period dependent upon our customer’s order specifications. In any specific reporting period, we may be relying on certain vendors, however these vendors will vary dependent on the parts and materials needed. The Company believes its relationships with all of the above vendors is good, and we are not reliant on any particular vendor for future needs.

Property, Plant and Equipment

Property, plant and equipment

Property and equipment are stated at cost, and depreciation is provided by use of a straight-line method over the estimated useful lives of the assets.

The Company reviews property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amounts of assets may not be recoverable. The estimated useful lives of property and equipment is as follows:

	September 30, 2020			December 31, 2019
Office equipment	$	113,025		$	78,851
Less: Accumulated Depreciation		(77,465	)		(63,642	)
Property and Equipment, Net	$	35,560		$	15,199

Depreciation expense was $3,562 and $6,784 for the three and nine months ended September 30, 2020, respectively, and $1,815 and $5,445 for the three and nine months ended September 30, 2019, respectively.

Intangible Assets

Intangible Assets

Intangible assets primarily represent purchased patent and license rights. The Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the three and nine months ended September 30, 2020, the Company recorded amortization expense of $10,417. In accordance with ASC 350, “Intangibles—Goodwill and Other,” goodwill and other intangible assets with indefinite lives are no longer subject to amortization but are tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired.

Goodwill

Goodwill

Goodwill is measured as the excess of consideration transferred and the net of the acquisition date fair value of assets acquired, and liabilities assumed in a business acquisition. The Company reviews the goodwill allocated to each of our reporting units for possible impairment annually and whenever events or changes in circumstances indicate carrying amount may not be recoverable. When assessing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its’ carrying amount.

Goodwill is tested annually for impairment on January 1, and at any time upon occurrence of certain events or changes in circumstances. In assessing the qualitative factors, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances, and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgment and assumptions include the identification of macroeconomic conditions, industry, and market considerations, cost factors, overall financial performance and share price trends, and making the assessment as to whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

The carrying amount of each reporting unit is determined based upon the assignment of our assets and liabilities, including existing goodwill and other intangible assets, to the identified reporting units. Where an acquisition benefits only one reporting unit, the Company allocates, as of the acquisition date, all goodwill for that acquisition to the reporting unit that will benefit. Where the Company has had an acquisition that benefited more than one reporting unit, The Company has assigned the goodwill to our reporting units as of the acquisition date such that the goodwill assigned to a reporting unit is the excess of the fair value of the acquired business, or portion thereof, to be included in that reporting unit over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit.

The transaction with PCTI resulted in recognizing goodwill of $11,201,145 (see Note 1).

Revenue Recognition

Revenue Recognition

Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the commercial sales of products by: (1) identify the contract (if any) with a customer; (2) identify the performance obligations in the contract (if any); (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract (if any); and (5) recognize revenue when each performance obligation is satisfied. Under ASC 606, revenue is recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the performance of service has been rendered to a customer or delivery has occurred; (3) the amount of fee to be paid by a customer is fixed and determinable; and (4) the collectability of the fee is reasonably assured. Other than The Company has no outstanding contracts with any of its’ customers. The Company recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product and is based on the applicable shipping terms.

For contracts with customers, ownership of the goods and associated revenue are transferred to customers at a point in time, generally upon shipment of a product to the customer or receipt of the product by the customer and without significant judgments. Advance payments are typically required for commercial customers and are recorded as current liability until revenue is recognized. Advance payments are not required for government customers. The majority of contracts typically require payment within 30 to 60 days after transfer of ownership to the customer.

For the periods covered herein, we did not have post shipment obligations such as training or installation, customer acceptance provisions, credits and discounts, rebates and price protection, or other similar privileges.

There was no impact on the Company’s financial statements as a result of adopting Topic 606 for the three and nine months ended September 30, 2020, and 2019.

Advertising and Marketing Expenses

Advertising and Marketing Expenses

The Company expenses advertising and marketing costs as incurred. For the nine months ended September 30, 2020, and 2019, the Company recorded $47,325 and $232, respectively, of advertising and marketing expenses.

Research and Development

Research and Development

Costs and expenses that can be clearly identified as research and development are charged to expense as incurred. For the three and nine months ended September 30, 2020, and 2019, the Company did not record any research and development expenses.

Convertible Instruments

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities.

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

The Company accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of this note transaction and the effective conversion price embedded in this note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level.

The following are the hierarchical levels of inputs to measure fair value:

● Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

● Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

● Level 3 - Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, prepaid expenses, other current assets, accounts payable and accrued expenses, certain notes payable and notes payable - related party, approximate their fair values because of the short maturity of these instruments.

The following table represents the Company’s derivative instruments that are measured at fair value on a recurring basis as of September 30, 2020, for each fair value hierarchy level:

September 30, 2020	Derivative Liabilities		Total
Level I	$	-	$	-
Level II	$	-	$	-
Level III	$	2,250,953	$	2,250,953

Leases

Leases

Effective July 10, 2020, the Company began accounting for leases under ASU 2016-02 (see Note 14), applying the package of practical expedients to leases that commenced before the effective date whereby the Company elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. For contracts entered into on or after the effective date, at the inception of a contract the Company assess whether the contract is, or contains, a lease. Our assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether we have the right to direct the use of the asset. We allocate the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments.

Operating lease ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company use an incremental borrowing rate of 7.5%, based on the information available at the adoption date in determining the present value of future payments. Operating lease expense is recognized pursuant to on a straight-line basis over the lease term and is included in rent in the condensed consolidated statements of operations.

Income Taxes

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. The Company has not recognized any tax benefits from uncertain tax positions for any of the reporting periods presented.

Foreign Currency Translation

Foreign Currency Translation

The accounts of the Company’s Hong Kong subsidiary are maintained in Hong Kong dollars and the accounts of the U.S. companies are maintained in USD. The accounts of the Hong Kong subsidiary were translated into USD in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters. According to Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date; stockholders’ equity is translated at historical rates and statement of comprehensive income items are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with ASC Topic 220, Comprehensive Income. Gains and losses resulting from the foreign currency transactions are reflected in the statements of comprehensive income.

Relevant exchange rates used in the preparation of the consolidated financial statements are as follows for the period ended September 30, 2020, (Hong Kong dollar per one U.S. dollar):

	September 30, 2020
Balance sheet date		.1290
Average rate for statements of operations and comprehensive loss		.1289

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The Company reports earnings (loss) per share in accordance with ASC 260, “Earnings per Share.” Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. As of September 30, 2020, and 2019, the Company’s dilutive securities are convertible into approximately 9,744,058,757 shares of common stock. There were no dilutive securities as of September 30, 2019. This amount is not included in the computation of dilutive loss per share because their impact is antidilutive. The following table represents the classes of dilutive securities as of September 30, 2020:

	September 30, 2020
Common stock to be issued		1,350
Convertible preferred stock		9,421,359,558
Convertible notes payable		322,697,849
		9,744,058,75

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018.

In January 2017, the FASB issued ASU No. 217-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The amendments simplify the subsequent measurement of goodwill and eliminate the two-step goodwill impairment test. The Company will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment should be recorded. Any loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Impairment losses on goodwill cannot be reversed once recognized. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not anticipate any material impact on the condensed consolidated financial statements.

Other than the above there have no recent accounting pronouncements or changes in accounting pronouncements during the period ended September 30, 2020, that are of significance or potential significance to the Company.

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Organization (Tables)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary value of the consideration issued and the preliminary purchase price allocation of the fair value of assets acquired and liabilities assumed in the transaction . The company preliminarily recorded the excess as goodwill and will analyze within the measurement period if there should be an allocation to identifiable intangible assets:

	Purchase Price Allocation
Fair value of OZOP equity consideration issued	$	818,444
Assets acquired	$	1,229,917
Goodwill		11,201,145
Liabilities assumed		(11,612,618	)
	$	818,444

Schedule of Proforma Results

Included in the Unaudited Condensed Consolidated Statements of Comprehensive Loss for the nine months ended September 30, 2020, are the results of Ozop, the accounting acquiree, of revenues of $-0- and a loss before income taxes of $6,228,022.The following table provides unaudited pro forma results of operations for the nine months ended September 30, 2020, and 2019, as if the acquisition had been consummated as of the beginning of that period presented. The pro forma results include the effect of certain purchase accounting adjustments, such as the estimated changes in depreciation and amortization expense on the acquired intangible assets. However, pro forma results do not include any anticipated cost savings (if any) of the combined companies. Accordingly, such amounts are not necessarily indicative of the results if the acquisition has occurred on the date indicated, or which may occur in the future.

	Unaudited pro forma results nine months ended September 30, 2020			Unaudited pro forma results nine months ended September 30, 2019
Revenues	$	1,493,592		$	501,931
Loss before income taxes		(40,027,669	)		(4,809,301	)
Basic and fully diluted loss per share	$	(0.02	)	$	(0.14	)

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Summary of Significant Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Schedule of Concentration Risk

Following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the three and nine months ended September 30, 2020, and 2019, and their accounts receivable balance as of September 30, 2020:

	Sales % Three Months Ended September 30, 2020			Sales % Three Months Ended September 30, 2019			Sales % Nine Months Ended September 30, 2020			Sales % Nine Months Ended September 30, 2019			Accounts receivable balance September 30, 2020
Customer A		29	%		-	%		60	%		-	%	$	-
Customer B		19	%		-	%		14	%		-	%		-
Customer C		23	%		-	%		-	%		-	%		34,011
Customer D		12	%		-	%		-	%		-	%		-
Customer E		-	%		29	%		-	%		12	%		-
Customer F		-	%		16	%		-	%		-	%		-
Customer G		-	%		12	%		-	%		-	%		-
Customer H		-	%		-	%		-	%		31	%		-
Customer I		-	%		14	%		-	%		-	%		-

Following is a summary of suppliers who accounted for more than ten percent (10%) of the Company’s purchases for the three and nine months ended September 30, 2020, and 2019:

	Purchase % Three Months Ended September 30, 2020			Purchase % Three Months Ended September 30, 2019			Purchase % Nine Months Ended September 30, 2020			Purchase % Nine Months Ended September 30, 2019
Supplier A		11	%		-	%		-	%		-	%
Supplier B		15	%		-	%		10	%		-	%
Supplier C		18	%		-	%		-	%		-	%
Supplier D		-	%		17	%		-	%		-	%
Supplier E		-	%		14	%		-	%		-	%
Supplier F		-	%		-	%		15	%		-	%
Supplier G		-	%		-	%		26	%		-	%

Schedule of Inventories

The components of inventories at September 30, 2020, and December 31, 2019, are as follows:

	2020		2019
Raw materials	$	116,953	$	116,329
Work in process		45,585		845,218
Finished goods		9,643		10,266
	$	172,181	$	971,813

Schedule of Property, Plant and Equipment

The estimated useful lives of property and equipment is as follows:

	September 30, 2020			December 31, 2019
Office equipment	$	113,025		$	78,851
Less: Accumulated Depreciation		(77,465	)		(63,642	)
Property and Equipment, Net	$	35,560		$	15,199

Schedule of Fair Value of Derivative Instruments on Recurring Basis

The following table represents the Company’s derivative instruments that are measured at fair value on a recurring basis as of September 30, 2020, for each fair value hierarchy level:

September 30, 2020	Derivative Liabilities		Total
Level I	$	-	$	-
Level II	$	-	$	-
Level III	$	2,250,953	$	2,250,953

Schedule of Foreign Exchange Rates

Relevant exchange rates used in the preparation of the consolidated financial statements are as follows for the period ended September 30, 2020, (Hong Kong dollar per one U.S. dollar):

	September 30, 2020
Balance sheet date		.1290
Average rate for statements of operations and comprehensive loss		.1289

Schedule of Antidilutive Securities

The following table represents the classes of dilutive securities as of September 30, 2020:

	September 30, 2020
Common stock to be issued		1,350
Convertible preferred stock		9,421,359,558
Convertible notes payable		322,697,849
		9,744,058,75

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Patents as of September 30, 2020, consist of the following:

	September 30, 2020
Patents and license rights	$	151,041
Accumulated amortization		(10,417	)
Net carrying amount	$	140,624

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Convertible Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Summary of Convertible Note Balance

A summary of the convertible note balance as of September 30, 2020, is as follows:

	September 30, 2020
Principal balance	$	1,544,489
Unamortized discount		(682,982	)
Ending balance, net	$	861,507

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Derivative Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Derivative Liabilities

A summary of the activity related to derivative liabilities for the period from July 10, 2020 to September 30, 2020, is as follows:

Balance- July 10, 2020, assumed pursuant to PCTI transaction	$	8,743,231
Issued during period		626,534
Converted or paid		(7,308,426	)
Change in fair value recognized in operations		189,614
Balance- September 30, 2020	$	2,250,953

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Notes Payable (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Notes Payable

The Company has the following note payables outstanding:

	September 30, 2020		December 31, 2019
Note payable bank, interest at 7.75%, matures December 26,2020	$	156,648	$	174,444
Note payable bank, interest at 6.5%, matures December 26, 2020		341,400		349,962
Economic Injury Disaster Loan		10,000		-
Paycheck Protection Program loan		100,400		-
Notes payable, interest at 8%, matured January 5, 2020, currently in default		45,000		-
Other, due on demand, interest at 6%		50,000		-
Note payable $210,000 face value, interest at 18%, matures June 23, 2022, net of discount of $30,260		179,740		-
Note payable $203,000 face value, interest at 12%, matures June 25, 2021, net of discount of $19,935		183,065		-
Note payable $750,000 face value, interest at 12%, matures August 24, 2021, net of discount of $500,151		249,839		-
Sub- total notes payable		1,316,102		542,406
Less long-term portion, net of discount		290,140		-
Current portion of notes payable, net of discount	$	1,015,962	$	542,406

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Schedule of Expenses to Officers

For the three and nine months ended September 30, 2020, and 2019, the Company recorded expenses to its officers in the following amounts:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
CEO, parent	$	96,771	$	-	$	96,771	$	-
President, subsidiary		32,500		-		32,500		-
Total	$	129,271	$	-	$	129,271	$	-

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Operating Lease Right-of-Use Assets and Operating Lease Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Right-of- Use Assets

Right-of- use assets are summarized below:

	September 30, 2020
Office and warehouse lease	$	185,139
Less accumulated amortization		(17,639	)
Right-of-us assets, net	$	167,500

Schedule of Operating Lease Liabilities

Operating lease liabilities are summarized as follows:

	September 30, 2020
Lease liability	$	167,500
Less current portion		(73,945	)
Long term portion	$	93,555

Schedule of Maturity of Lease Liabilities

Maturity of lease liabilities are as follows:

	Amount
For the three months ending December 31, 2020	$	21,000
For the year ending December 31, 2021		84,000
For the eleven months ending November 30, 2022		77,000
Total	$	182,000
Less: present value discount		(14,500	)
Lease liability	$	167,500

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Organization (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Jul. 10, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Oct. 28, 2016	Jul. 19, 2016
Equity ownership percentage						100.00%
Loss before income taxes		$ (6,563,262)	$ (70,708)	$ (6,862,676)	$ (371,975)
Revenues		$ 246,951	$ 176,582	$ 0	$ 416,778
Perma Consultants Holding AG [Member]
Equity ownership percentage							100.00%
Securities Purchase Agreement [Member] | Pennsylvania corporation [Member]
Number of shares acquired	1,000
Securities Purchase Agreement [Member] | Pennsylvania corporation [Member] | Series C Preferred Stock [Member]
Stock issued during period, shares, acquisitions	47,500
Securities Purchase Agreement [Member] | Pennsylvania corporation [Member] | Series D Preferred Stock [Member]
Stock issued during period, shares, acquisitions	18,667
Securities Purchase Agreement [Member] | Pennsylvania corporation [Member] | Series E Preferred Stock [Member]
Stock issued during period, shares, acquisitions	500

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Organization - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fair value of OZOP equity consideration issued	$ 818,444
Assets acquired	1,229,917
Goodwill	11,396,096
Liabilities assumed	(11,612,618)
Total purchase price allocation	$ 818,444

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Organization - Schedule of Proforma Results (Details)	9 Months Ended
	Sep. 30, 2020 USD ($) $ / shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenues	$ 1,493,592
Loss before income taxes	$ (40,027,669)
Basic and fully diluted loss per share | $ / shares	$ (0.02)

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Going Concern and Management's Plans (Details Narrative) - USD ($)	Jul. 10, 2020	Sep. 30, 2020	Dec. 31, 2019
Accumulated deficit		$ (8,173,908)	$ (1,310,422)
Working capital deficit		$ 5,458,089
SPA [Member] | PCTI [Member]
Forbes estimates	This transaction takes PCTI public, and allows us to drive future investments into the energy storage market, which Forbes estimates will grow from $59 billion in 2019 to $546 billion by 2035, PCTI's products, technologies and expertise are a linchpin of this emerging industry.

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Summary of Significant Accounting Pronouncements (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Depreciation expense	$ 3,562	$ 1,815		$ 6,784	$ 5,445
Amortization expense	10,417			10,417
Goodwill	11,396,096			11,396,096
Advertising and marketing expenses				$ 47,325	$ 232
Income tax likelihood description				greater than fifty percent likelihood
Anti-dilutive shares of common stock				974,405,875
Incremental borrowing rate		7.50%
PCTI [Member]
Goodwill	$ 11,201,145			$ 11,201,145
Sales Revenue [Member] | Customer [Member]
Concentration of credit risk	10.00%		10.00%	10.00%	10.00%
Product Revenue [Member] | Suppliers [Member]
Concentration of credit risk	10.00%		10.00%	10.00%	10.00%

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Summary of Significant Accounting Pronouncements - Schedule of Concentration Risk (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts receivable balance	$ 60,699		$ 60,699		$ 19,774
Customer A [Member]
Accounts receivable balance
Customer B [Member]
Accounts receivable balance
Customer C [Member]
Accounts receivable balance	34,011		34,011
Customer D [Member]
Accounts receivable balance
Customer E [Member]
Accounts receivable balance
Customer F [Member]
Accounts receivable balance
Custom G [Member]
Accounts receivable balance
Custom H [Member]
Accounts receivable balance
Custom I [Member]
Accounts receivable balance
Sales Revenue [Member] | Customer A [Member]
Concentration of credit risk	29.00%	0.00%	60.00%	0.00%
Sales Revenue [Member] | Customer B [Member]
Concentration of credit risk	19.00%	0.00%	14.00%	0.00%
Sales Revenue [Member] | Customer C [Member]
Concentration of credit risk	23.00%	0.00%	0.00%	0.00%
Sales Revenue [Member] | Customer D [Member]
Concentration of credit risk	12.00%	0.00%	0.00%	0.00%
Sales Revenue [Member] | Customer E [Member]
Concentration of credit risk	0.00%	29.00%	0.00%	12.00%
Sales Revenue [Member] | Customer F [Member]
Concentration of credit risk	0.00%	16.00%	0.00%	0.00%
Sales Revenue [Member] | Custom G [Member]
Concentration of credit risk	0.00%	12.00%	0.00%	0.00%
Sales Revenue [Member] | Custom H [Member]
Concentration of credit risk	0.00%	0.00%	0.00%	31.00%
Sales Revenue [Member] | Custom I [Member]
Concentration of credit risk	0.00%	14.00%	0.00%	0.00%
Product Revenue [Member] | Suppliers A [Member]
Concentration of credit risk	11.00%	0.00%	0.00%	0.00%
Product Revenue [Member] | Suppliers B [Member]
Concentration of credit risk	15.00%	0.00%	10.00%	0.00%
Product Revenue [Member] | Suppliers C [Member]
Concentration of credit risk	18.00%	0.00%	0.00%	0.00%
Product Revenue [Member] | Suppliers D [Member]
Concentration of credit risk	0.00%	17.00%	0.00%	0.00%
Product Revenue [Member] | Suppliers E [Member]
Concentration of credit risk	0.00%	14.00%	0.00%	0.00%
Product Revenue [Member] | Suppliers F [Member]
Concentration of credit risk	0.00%	0.00%	0.00%	15.00%
Product Revenue [Member] | Suppliers G [Member]
Concentration of credit risk	0.00%	0.00%	26.00%	0.00%

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Summary of Significant Accounting Pronouncements - Schedule of Components of Inventories (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Raw materials	$ 116,953	$ 116,329
Work in process	45,585	845,218
Finished goods	9,643	10,266
Inventory net	$ 172,180	$ 971,813

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Summary of Significant Accounting Pronouncements - Schedule of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Less: Accumulated Depreciation	$ (77,465)	$ (63,642)
Property and Equipment, Net	35,560	15,199
Office Equipment [Member]
Property and Equipment, Gross	$ 113,025	$ 78,851

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Summary of Significant Accounting Pronouncements - Schedule of Fair Value of Derivative Instruments on Recurring Basis (Details)	Sep. 30, 2020 USD ($)
Level I [Member]
Derivative Liabilities
Total
Level II [Member]
Derivative Liabilities
Total
Level III [Member]
Derivative Liabilities	2,250,953
Total	$ 2,250,953

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Summary of Significant Accounting Pronouncements - Schedule of Foreign Exchange Rates (Details) - Hong Kong, Dollars [Member]	Sep. 30, 2020
Balance Sheet Date [Member]
Foreign currency exchange rate	0.1290
Average Rate for Statements of Operations and Comprehensive Loss [Member]
Foreign currency exchange rate	.1289

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Summary of Significant Accounting Pronouncements - Schedule of Antidilutive Securities (Details)	9 Months Ended
	Sep. 30, 2020 shares
Anti-dilutive shares of common stock	974,405,875
Common Stock to be Issued [Member]
Anti-dilutive shares of common stock	1,350
Convertible Preferred Stock [Member]
Anti-dilutive shares of common stock	9,421,359,558
Convertible Notes Payable [Member]
Anti-dilutive shares of common stock	322,697,849

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Intangible Assets (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 10,417	$ 10,417

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Intangible Assets - Schedule of Intangible Assets (Details)	Sep. 30, 2020 USD ($)
Accumulated amortization	$ (10,417)
Net carrying amount	140,624
Patents and License Rights [Member]
Gross carrying amount	$ 151,041

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Convertible Notes Payable (Details Narrative) - USD ($)																									3 Months Ended	9 Months Ended
	Aug. 03, 2020	Jul. 29, 2020	Jul. 22, 2020	Jul. 15, 2020	Jul. 10, 2020	Jul. 08, 2020	Jun. 30, 2020	Jun. 11, 2020	Jun. 02, 2020	May 28, 2020	May 07, 2020	May 05, 2020	May 04, 2020	Apr. 28, 2020	Apr. 27, 2020	Apr. 12, 2020	Mar. 09, 2020	Feb. 26, 2020	Jan. 08, 2020	Nov. 27, 2019	Aug. 23, 2019	Aug. 21, 2019	May 29, 2019	Dec. 05, 2018	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 26, 2020	Jul. 09, 2020	Jun. 25, 2020	Oct. 19, 2018	Aug. 18, 2017
Debt instrument interest rate																												7.75%
Debt instrument outstanding principal balance					$ 25,000																				$ 25,000	$ 25,000
Number of securities called by warrants																									106,528,473	106,528,473
Unamortized discounts																									$ 682,982	$ 682,982
Amortization of the debt discounts																										$ 1,413,096
Debt converted face value																									$ 1,585,937
Debt converted shares issued																									181,993,984
Debt instrument maturity date																Dec. 26, 2020
Debt instrument conversion price																									$ 0.0016	$ 0.0016
Proceeds from convertible notes																										$ 289,000
Initial derivative liability					8,743,231																				$ 2,250,953	2,250,953
Principal payments																										82,757	$ 10,193
15% Convertible Promissory Note [Member]
Debt instrument interest rate																																15.00%
Conversion price, percentage of discount on common share price																																70.00%
Debt instrument outstanding principal balance					$ 2,086																				$ 2,086	$ 2,086
Threshold description					This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for the thirty prior trading days including the day upon which a notice of conversion is received
12% Convertible Promissory Note [Member]
Debt instrument interest rate																		12.00%							0.00%	0.00%
Debt instrument outstanding principal balance					$ 132,750
Number of securities called by warrants																		2,212,500
Warrants exercise price																		$ 0.03
Warrants expiration term																		5 years
Debt instrument carrying value					66,176
Unamortized discounts					66,574
Debt converted face value																									$ 132,750
Debt converted accrued interest																									$ 7,943
Debt converted shares issued																									83,214,457
Debt instrument conversion price																									$ 0.0017	$ 0.0017
12% Convertible Promissory Note [Member] | Interest Expense [Member]
Amortization of the debt discounts																									$ 66,574
12% Convertible Promissory Note One [Member]
Debt instrument interest rate																		12.00%
Conversion price, percentage of discount on common share price																		70.00%
Debt instrument outstanding principal balance					798,750																				0	$ 0
Debt converted face value																									798,750
Debt converted accrued interest																									$ 147,549
Debt converted shares issued																									496,756,528
Debt instrument maturity date																		Feb. 26, 2021
Threshold description																		This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
Debt instrument conversion price																									$ 0.0019	$ 0.0019
12% Convertible Promissory Note Two [Member]
Debt instrument interest rate																						12.00%
Conversion price, percentage of discount on common share price																						70.00%
Debt instrument outstanding principal balance					155,632																				$ 0	$ 0
Debt converted face value																									155,632
Debt converted accrued interest																									$ 48,306
Debt converted shares issued																									219,963,737
Debt instrument maturity date																						Aug. 21, 2020
Threshold description																						This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
Debt instrument conversion price																									$ 0.0009	$ 0.0009
12% Convertible Note Promissory Three [Member]
Debt instrument interest rate																	12.00%
Debt instrument outstanding principal balance																									$ 80,000	$ 80,000			$ 80,000
Debt instrument carrying value																													53,333
Unamortized discounts																													$ 26,667
Threshold description																	This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $.25 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.25 or 50% of the lowest trading price for the thirty trading days prior to the conversion.
Maturity date, description																	This note matures 6 months after the Issuance Date.
Debt instrument conversion price																	$ 0.25
Debt instrument, term																	6 months
12% Convertible Note Promissory Three [Member] | Minimum [Member]
Conversion price, percentage of discount on common share price																	25.00%
12% Convertible Note Promissory Three [Member] | Maximum [Member]
Conversion price, percentage of discount on common share price																	50.00%
12% Convertible Note Promissory Three [Member] | Interest Expense [Member]
Amortization of the debt discounts																									26,667
Interest expense																									26,667
22% Convertible Promissory Note [Member]
Debt instrument interest rate																								22.00%
Conversion price, percentage of discount on common share price																								70.00%
Debt instrument outstanding principal balance					352,695																				0	$ 0
Debt converted face value																									352,695
Debt converted accrued interest																									$ 89,295
Debt converted shares issued																									273,028,909
Threshold description																								This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
Debt instrument conversion price																									$ 0.0016	$ 0.0016
22% Convertible Note Promissory One [Member]
Debt instrument interest rate																															22.00%
Conversion price, percentage of discount on common share price																															70.00%
Debt instrument outstanding principal balance					67																				$ 67	$ 67
15% Convertible Promissory Note One [Member]
Debt instrument interest rate															15.00%
Conversion price, percentage of discount on common share price															50.00%
Debt instrument outstanding principal balance					60,000																				60,000	60,000
Debt instrument carrying value					11,500																				25,000	25,000
Unamortized discounts					48,500																				35,000	35,000
Debt instrument maturity date															Apr. 27, 2021
Threshold description															This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
15% Convertible Promissory Note One [Member] | Interest Expense [Member]
Amortization of the debt discounts																									13,500
Convertible Promissory Note [Member]
Conversion price, percentage of discount on common share price																					70.00%
Debt instrument outstanding principal balance					14,831																				14,831	14,831
Debt instrument maturity date																					May 23, 2020
Threshold description																					This note matures on April 27, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company.
12% Convertible Note Promissory Four [Member]
Debt instrument interest rate														12.00%
Conversion price, percentage of discount on common share price														58.00%
Debt instrument outstanding principal balance					53,000																				53,000	53,000
Debt instrument carrying value					10,158																				22,083	22,083
Unamortized discounts					42,842																				30,917	30,917
Threshold description														This note is convertible into shares of the Company's common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion.
Maturity date, description														This note matures 12 months after the date of issuance.
Debt instrument, term														12 months
12% Convertible Note Promissory Four [Member] | Interest Expense [Member]
Amortization of the debt discounts																									11,925
12% Convertible Note Promissory Five [Member]
Debt instrument interest rate													12.00%
Conversion price, percentage of discount on common share price													58.00%
Debt instrument outstanding principal balance					110,000																				110,000	110,000
Number of securities called by warrants													3,666,666
Warrants exercise price													$ 0.015
Warrants expiration term													5 years
Debt instrument carrying value					18,860																				44,229	44,229
Unamortized discounts					91,140																				65,771	65,771
Threshold description													This note is convertible into shares of the Company's common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to the lower of $0.50 or 58% multiplied by the average of the two lowest closing trading price or bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion.
Maturity date, description													This note matures 12 months after the date of issuance.
Debt instrument conversion price													$ 0.50
Debt instrument, term													6 months
12% Convertible Note Promissory Five [Member] | Interest Expense [Member]
Amortization of the debt discounts																									25,369
12% Convertible Note Promissory Six [Member]
Debt instrument interest rate												12.00%
Conversion price, percentage of discount on common share price												50.00%
Debt instrument outstanding principal balance					162,000																				162,000	162,000
Number of securities called by warrants												4,325,000
Warrants exercise price												$ .02
Warrants expiration term												5 years
Debt instrument carrying value					62,100																				135,000	135,000
Unamortized discounts					99,900																				27,000	27,000
Threshold description												This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $03 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.03 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description												This note matures 6 months after the Issuance Date.
Debt instrument conversion price												$ .03
Debt instrument, term												6 months
12% Convertible Note Promissory Six [Member] | Interest Expense [Member]
Amortization of the debt discounts																									72,900
12% Convertible Note Promissory Seven [Member]
Debt instrument interest rate											12.00%
Conversion price, percentage of discount on common share price											50.00%
Debt instrument outstanding principal balance					30,000																				30,000	30,000
Debt instrument carrying value					5,000																				11,875	11,875
Unamortized discounts					25,000																				18,125	18,125
Debt instrument maturity date											May 07, 2021
Threshold description											Convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company.
12% Convertible Note Promissory Seven [Member] | Interest Expense [Member]
Amortization of the debt discounts																									6,875
Convertible Promissory Note One [Member]
Conversion price, percentage of discount on common share price																			70.00%
Debt instrument outstanding principal balance					115,500																				433	$ 433
Debt instrument carrying value					56,306
Unamortized discounts					59,194
Debt converted face value																									115,067
Debt converted accrued interest																									$ 2,408
Debt converted shares issued																									88,500,000
Debt instrument maturity date																			Jan. 08, 2021
Threshold description																			This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
Debt instrument conversion price																									$ 0.00133	$ 0.00133
Convertible Promissory Note One [Member] | Interest Expense [Member]
Amortization of the debt discounts																									$ 59,194
Convertible Promissory Note Two [Member]
Conversion price, percentage of discount on common share price																				70.00%
Debt instrument outstanding principal balance					296																				296	$ 296
Threshold description																				This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
15% Convertible Promissory Note Two [Member]
Debt instrument interest rate										15.00%
Conversion price, percentage of discount on common share price										50.00%
Debt instrument outstanding principal balance					30,000																				30,000	30,000
Debt instrument carrying value					3,250																				10,000	10,000
Unamortized discounts					26,750																				20,000	20,000
Debt instrument maturity date										May 28, 2021
Threshold description										Convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company.
15% Convertible Promissory Note Two [Member] | Interest Expense [Member]
Amortization of the debt discounts																									6,750
Convertible Promissory Note Three [Member]
Conversion price, percentage of discount on common share price																							70.00%
Debt instrument outstanding principal balance					31,043																				0	$ 0
Debt converted face value																									31,043
Debt converted accrued interest																									$ 53,337
Debt converted shares issued																									86,262,262
Threshold description																							This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received.
Debt instrument conversion price																									$ 0.001	$ 0.001
12% Convertible Note Promissory Eight [Member]
Debt instrument interest rate									12.00%
Conversion price, percentage of discount on common share price									50.00%
Debt instrument outstanding principal balance					127,500																				$ 127,500	$ 127,500
Number of securities called by warrants									6,375,000
Warrants exercise price									$ 0.02
Warrants expiration term									5 years
Debt instrument carrying value					27,625																				85,000	85,000
Unamortized discounts					99,875																				42,500	42,500
Threshold description									This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description									This note matures 6 months after the Issuance Date.
Debt instrument conversion price									$ .025
Debt instrument, term									6 months
12% Convertible Note Promissory Eight [Member] | Interest Expense [Member]
Amortization of the debt discounts																									57,375
12% Convertible Note Promissory Nine [Member]
Debt instrument interest rate								12.00%
Conversion price, percentage of discount on common share price								58.00%
Debt instrument outstanding principal balance					53,000																				53,000	53,000
Debt instrument carrying value					4,417																				16,209	16,209
Unamortized discounts					48,583																				36,791	36,791
Threshold description								This note is convertible into shares of the Company's common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the twenty- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion.
Maturity date, description								This note matures 12 months after the date of issuance.
12% Convertible Note Promissory Nine [Member] | Interest Expense [Member]
Amortization of the debt discounts																									11,792
15% Convertible Promissory Note Three [Member]
Debt instrument interest rate							15.00%
Conversion price, percentage of discount on common share price							50.00%
Debt instrument outstanding principal balance					129,500																				12,950	12,950
Number of securities called by warrants							6,375,000
Warrants exercise price							$ .02
Debt instrument carrying value					8,375																				65,750	65,750
Unamortized discounts					121,125																				63,750	63,750
Threshold description							This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description							This note matures 6 months after the Issuance Date.
Debt instrument conversion price							$ 0.025
Debt instrument, term							6 months
15% Convertible Promissory Note Three [Member] | Interest Expense [Member]
Amortization of the debt discounts
15% Convertible Promissory Note Four [Member]
Debt instrument interest rate						15.00%
Conversion price, percentage of discount on common share price						5000.00%
Debt instrument outstanding principal balance					250,000																				250,000	250,000
Number of securities called by warrants						12,500,000
Warrants exercise price						$ 0.02
Debt instrument carrying value					0																				114,583	114,583
Unamortized discounts					$ 250,000																				135,417	135,417
Threshold description						This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description						This note matures 6 months after the Issuance Date.
Debt instrument conversion price						$ 0.025
Debt instrument, term						6 months
15% Convertible Promissory Note Four [Member] | Interest Expense [Member]
Amortization of the debt discounts																									114,583
12% Convertible Note Promissory Ten [Member]
Debt instrument interest rate																		12.00%
Conversion price, percentage of discount on common share price					45.00%													55.00%
Debt instrument outstanding principal balance																									161,775	161,775
Debt instrument carrying value																									116,935	116,935
Unamortized discounts																		$ 13,950							44,840	44,840
Threshold description																		This note matures 12 months after the Issuance Date. This note is convertible into shares of the Company's common stock beginning on the Issuance Date at 55% of the lowest trading price for the twenty-five trading days prior to the conversion. If the trading price cannot be calculated for such security on such date, the trading price shall be the fair market value as mutually determined by the Company and the investor for which the calculation of the trading price is required in order to determine the conversion price.
Maturity date, description																		This note matures 12 months after the Issuance Date.
Debt instrument, term																		12 months
Debt instrument face amount																		$ 106,950												$ 111,225
Proceeds from convertible notes																		85,000
Lender costs																		8,000
Debt instrument daily payment																		400
Initial debt discount																		85,000
Interest expense																		135,786
Initial derivative liability																		$ 220,786
Principal payments																										56,400
12% Convertible Note Promissory Ten [Member] | Interest Expense [Member]
Amortization of the debt discounts																										54,793
15% Convertible Promissory Note Five [Member]
Debt instrument interest rate				15.00%
Conversion price, percentage of discount on common share price				50.00%
Debt instrument outstanding principal balance																									127,500	127,500
Number of securities called by warrants				6,375,000
Warrants exercise price				$ .02
Debt instrument carrying value																									53,125	53,125
Unamortized discounts			$ 25,500																						74,375	74,375
Threshold description				This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description				This note matures 6 months after the Issuance Date.
Debt instrument conversion price				$ .025
Debt instrument, term				6 months
Debt instrument face amount				$ 127,500
Proceeds from convertible notes			$ 102,000	82,068
Initial debt discount				82,068
Interest expense				125,541
Initial derivative liability				207,609
Warrant fair value				$ 19,932
15% Convertible Promissory Note Five [Member] | Interest Expense [Member]
Amortization of the debt discounts																										53,125
15% Convertible Promissory Note Six [Member]
Debt instrument interest rate		15.00%
Conversion price, percentage of discount on common share price		50.00%
Number of securities called by warrants		12,750,000
Warrants exercise price		$ .01
Unamortized discounts	$ 25,500
Threshold description		This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.011 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion.
Maturity date, description		This note matures 6 months after the Issuance Date.
Debt instrument conversion price		$ .025
Debt instrument, term		6 months
Debt instrument face amount		$ 127,500
Proceeds from convertible notes	$ 100,000	61,733
Initial debt discount		61,733
Interest expense		136,506
Initial derivative liability		198,239
Warrant fair value		$ 40,267
15% Convertible Promissory Note Six [Member] | Interest Expense [Member]
Debt instrument outstanding principal balance																									127,500	127,500
Debt instrument carrying value																									42,500	42,500
Unamortized discounts																									$ 85,000	85,000
Amortization of the debt discounts																										$ 42,500

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Convertible Notes Payable - Summary of Convertible Note Balance (Details)	Sep. 30, 2020 USD ($)
Debt Disclosure [Abstract]
Principal balance	$ 1,544,489
Unamortized discount	(682,982)
Ending balance, net	$ 861,507

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Derivative Liabilities (Details Narrative)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Derivative liabilities	$ 2,250,953
Risk-Free Interest Rates [Member]
Derivative liability, measurement input	0.11
Risk-Free Interest Rates [Member] | Minimum [Member]
Derivative liability, measurement input	0.12
Risk-Free Interest Rates [Member] | Maximum [Member]
Derivative liability, measurement input	0.17
Volatility [Member] | Minimum [Member]
Derivative liability, measurement input	85
Volatility [Member] | Maximum [Member]
Derivative liability, measurement input	94
Volatility [Member] | Minimum [Member]
Derivative liability, measurement input	96
Volatility [Member] | Maximum [Member]
Derivative liability, measurement input	106

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Derivative Liabilities - Schedule of Derivative Liabilities (Details)	3 Months Ended
	Sep. 30, 2020 USD ($)
Fair Value Disclosures [Abstract]
Derivative liability, beginning balance	$ 8,743,231
Issued during period	626,534
Converted or paid	(7,308,426)
Change in fair value recognized in operations	189,614
Derivative liability, ending balance	$ 2,250,953

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Notes Payable (Details Narrative)											3 Months Ended		9 Months Ended
	Aug. 25, 2020 USD ($) $ / shares shares	Aug. 24, 2020 USD ($)	Jul. 14, 2020 USD ($)	Jun. 26, 2020 USD ($) $ / shares shares	Jun. 25, 2020 USD ($)	Jun. 25, 2020 USD ($)	Jun. 25, 2020 USD ($)	Jun. 23, 2020 USD ($)	Apr. 20, 2020 USD ($)	Apr. 12, 2020 USD ($)	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($)	Dec. 26, 2020	Dec. 31, 2019 USD ($)	Sep. 25, 2019 USD ($)	Oct. 26, 2016 USD ($)
Notes payable to bank																	$ 350,000	$ 210,000
Debt instrument interest rate															7.75%
Notes payable											$ 1,316,102	$ 1,316,102	$ 1,316,102			$ 542,406
Accrued interest										$ 350,000		$ 259,418
Debt instrument maturity										Dec. 26, 2020
Proceeds from notes payable													$ 663,000
Number of warrants issued to acquire shares of common stock | shares											106,528,473	106,528,473	106,528,473
Convertible percentage						0.12
Convertible principal amount | $ / shares											$ 0.0016	$ 0.0016	$ 0.0016
Warrants issued to additional paid in capital											$ 531,507
Amortization of the debt discount													$ 1,413,096
Debt instrument unamortized discounts											682,982	$ 682,982	682,982
Paycheck Protection Program [Member]
Debt instrument maturity									Apr. 20, 2022
Loan from bank									$ 100,400		10,400	10,400	10,400
Bearing interest rate									1.00%
Maturity date, description									The loan matures on April 20, 2022 and bears interest at a rate of 1.0% per annum, payable monthly beginning on November 20, 2020.
Promissory Note [Member]
Notes payable											249,839	249,839	249,839
Debt instrument face amount											750,000	750,000	750,000
Debt instrument unamortized discounts											$ 500,151	$ 500,151	500,151
Promissory Note [Member] | Holder [Member]
Debt instrument interest rate		12.00%
Debt instrument maturity		Aug. 24, 2021					Jun. 25, 2021
Debt instrument face amount		$ 750,000			$ 203,000	$ 203,000	$ 203,000
Debt instrument description		Principal payments shall be made in six instalments of $125,000 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date.					Principal payments shall be made in six installments of $33,333 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date.
Proceeds from notes payable	$ 663,000			$ 176,000
Legal fee	$ 87,000			$ 27,000
Warrants exercise price | $ / shares	$ 0.0061			$ 2
Number of warrants issued to acquire shares of common stock | shares	122,950,819			10,000,000
Convertible principal amount | $ / shares				$ 0.02
Warrants term				5 years
Warrants issued description				In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 10,000,000 shares of common stock at an exercise price of $02, subject to adjustments and expires on the five-year anniversary of the Issue Date.
Interest expense													9,063
Warrants issued to additional paid in capital													471,307
Amortization of the debt discount													$ 49,094
Promissory Note [Member] | Six Instalments [Member] | Holder [Member]
Accrued interest		$ 125,000			$ 33,333
Promissory Note [Member] | Loan and Securities Purchase Agreement [Member] | Lender [Member]
Debt instrument interest rate								18.00%
Notes payable								$ 210,000
Debt instrument description								For the first nine months interest may accrue on a monthly basis, and the Company has the option to pay the monthly interest or add such interest to the principal balance of the note. Commencing on the tenth month of the note, all accrued interest, if any, shall be added to the principal amount of the note, and interest on the new principal amount shall become due and payable on a monthly basis. Should the Company default on making any interest payments following the initial nine-months, or paying the note by the Maturity Date, the note shall automatically be converted into an 18% convertible debenture.
Proceeds from notes payable								$ 175,000
Maturity date, description								The note carries an interest rate of 18% and matures and is due in one lump sum on the 24- month anniversary (the "Maturity Date") of the Execution Date.
Original discount								$ 35,000
Promissory Note [Member] | Maximum [Member]
Debt instrument interest rate											3.25%	3.25%	3.25%
Promissory Note [Member] | Minimum [Member]
Debt instrument interest rate											6.50%	6.50%	6.50%
PCTI [Member]
Notes payable											$ 150,646	$ 150,646	$ 150,646			174,444
PCTI [Member] | Personal Guarantee of Chis [Member]
Notes payable											$ 347,588	$ 347,588	$ 347,588			$ 349,962
Economic Injury Disaster Loan [Member]
Debt instrument description			The first payment due is deferred one year.
Proceeds from notes payable			$ 10,000
Debt instrument forgiveness			$ 10,000

XML

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Sub total notes payable	$ 1,316,102	$ 542,406
Less long-term portion, net of discount	290,140
Current portion of notes payable, net of discount	1,025,962	524,406
Note Payable [Member]
Sub total notes payable	156,648	174,444
Note Payable One [Member]
Sub total notes payable	341,400	349,926
Economic Injury Disaster Loan [Member]
Sub total notes payable	10,000
Paycheck Protection Programloan [Member]
Sub total notes payable	100,400
Note Payable Two [Member]
Sub total notes payable	45,000
Other [Member]
Sub total notes payable	50,000
Note Payable Three [Member]
Sub total notes payable	179,740
Note Payable Four [Member]
Sub total notes payable	183,065
Note Payable Five [Member]
Sub total notes payable	$ 249,839

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Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) - USD ($)		9 Months Ended	12 Months Ended
	Apr. 12, 2020	Sep. 30, 2020	Dec. 31, 2019	Dec. 26, 2020
Debt instrument interest rate				7.75%
Debt instrument maturity	Dec. 26, 2020
Debt instrument discount		$ 682,982
Note Payable [Member]
Debt instrument interest rate		7.75%	7.75%
Debt instrument maturity		Dec. 26, 2020	Dec. 26, 2020
Note Payable One [Member]
Debt instrument interest rate		6.50%	6.50%
Debt instrument maturity		Dec. 26, 2020	Dec. 26, 2020
Note Payable Two [Member]
Debt instrument interest rate		8.00%	8.00%
Debt instrument maturity		Jan. 05, 2020	Jan. 05, 2022
Other [Member]
Debt instrument interest rate		6.00%	6.00%
Note Payable Three [Member]
Debt instrument interest rate		18.00%	18.00%
Debt instrument maturity		Jun. 23, 2022	Jun. 23, 2022
Debt instrument face value		$ 210,000	$ 210,000
Debt instrument discount		$ 30,260	$ 30,260
Note Payable Four [Member]
Debt instrument interest rate		12.00%	12.00%
Debt instrument maturity		Jun. 25, 2021	Jun. 25, 2021
Debt instrument face value		$ 203,000	$ 203,000
Debt instrument discount		$ 19,935	$ 19,935
Note Payable Five [Member]
Debt instrument interest rate		12.00%	12.00%
Debt instrument maturity		Aug. 24, 2021	Aug. 24, 2021
Debt instrument face value		$ 750,000	$ 750,000
Debt instrument discount		$ 500,151	$ 500,151

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Deferred Liability (Details Narrative) - USD ($)	Sep. 03, 2020	Sep. 30, 2020	Sep. 02, 2020	Dec. 31, 2019
Deferred liability		$ 750,000
PCTI [Member] | Exchange Agreement [Member]
Deferred liability			$ 75,000
Deferred liability payment percentage	3.00%
Deferred liability description	PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement. Payments are due ninety (90) days after each calendar quarter, with the first payment due on or before March 31, 2021.

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Related Party Transaction (Details Narrative)				3 Months Ended
	Aug. 28, 2020 USD ($) $ / shares shares	Jun. 25, 2020	Feb. 28, 2020 USD ($) shares	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) shares
Number of shares of common stock, share | $			$ 5,000	$ 4,286,652
Convertible percentage		0.12
Common stock shares outstanding				3,140,453,186	0
Convertible principal amount | $ / shares				$ 0.0016
Accrued liabilities - related party | $				$ 10,308	$ 27,909
Series C Preferred Stock [Member] | CEO [Member]
Common stock issued during the period, shares			2,500
Mr Conway [Member] | Series D Preferred Stock [Member]
Common stock issued during the period, shares	1,333
Convertible percentage	0.0667
Mr Conway [Member] | Series E Preferred Stock [Member]
Common stock issued during the period, shares	500
Common stock shares outstanding	3,107,037,634
Convertible principal amount | $ / shares	$ 621,253,401
Common stock price per share | $ / shares	$ 0.0065
Common stock value outstanding | $	$ 4,286,648
Employment Agreement [Member] | Mr Conway [Member]
Annual salary | $			$ 120,000

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Related Party Transactions - Schedule of Expenses to Officers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total	$ 129,271		$ 129,271
CEO [Member]
Total	96,771		96,771
President Subsidiary [Member]
Total	$ 32,500		$ 32,500

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Commitments and Contingencies (Details Narrative)	Sep. 02, 2020 USD ($)	Jul. 29, 2020 USD ($)	Jul. 24, 2020 USD ($)	Jul. 10, 2020 USD ($)	Oct. 25, 2019 USD ($) ft²	Nov. 20, 2018 USD ($)	Feb. 01, 2018 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 04, 2019 USD ($)
Notes payable								$ 1,316,102	$ 542,406
Licensing Agreement [Member]
Patents and the non-exclusive rights						$ 250,000	$ 250,000
Royalty percentage							7.00%
Consulting Agreement [Member]
Consulting services				$ 10,000
Salman J. Chaudhry [Member] | Separation Agreement [Member]
Outstanding fees										$ 227,200
Notes payable								162,085	162,085
PCTI [Member]
Industrial space total square feet | ft²					11,800
Lease term description					December 1, 2019 and expires on November 30, 2022.
Lease amount					$ 7,000
Payment month on month basis					$ 3,400
Notes payable								$ 150,646	$ 174,444
PCTI [Member] | Consulting Agreement One [Member]
Consulting services			$ 10,000
Agreement description			Three- month consulting agreement
PCTI [Member] | Performance Solutions Agreement [Member]
Consulting services		$ 5,000
Agreement description		Three-month Performance Solutions Agreement
PCTI [Member] | Exchange Agreement [Member]
Consulting services	$ 750,000
Agreement description	PCTI agreed to pay the third-party a perpetual three percent (3%) payment of revenues, as defined in the Agreement

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Stockholders' Equity (Details Narrative) - USD ($)						3 Months Ended	9 Months Ended
	Aug. 28, 2020	Jul. 10, 2020	Jul. 07, 2020	Jul. 07, 2020	Apr. 12, 2020	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Conversion of convertible debt, aggregate principal						$ 1,585,937
Conversion of convertible debt, accrued interest					$ 350,000	$ 259,418
Conversion of convertible debt, shares issued						181,993,984
Conversion of convertible debt, conversion price						$ 0.0016	$ 0.0016
Number of warrants issued to acquire shares of common stock						106,528,473	106,528,473
Common stock, authorized						4,990,000,000	4,990,000,000	4,990,000,000
Common stock, par value						$ 0.001	$ 0.001	$ 0.001
Common stock, issued						3,140,453,186	3,140,453,186	0
Common stock, outstanding						3,140,453,186	3,140,453,186	0
Preferred stock, authorized						10,000,000	10,000,000	10,000,000
Preferred stock, par value						$ 0.001	$ 0.001	$ 0.001
Series C Preferred Stock [Member]
Preferred stock, authorized						50,000	50,000	50,000
Preferred stock, par value						$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued						50,000	50,000	47,500
Preferred stock, shares outstanding						50,000	50,000	47,500
Series D Preferred Stock [Member]
Preferred stock, authorized						20,000	20,000	20,000
Preferred stock, par value						$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued						20,000	20,000	18,667
Preferred stock, shares outstanding						20,000	20,000	18,667
Series E Preferred Stock [Member]
Preferred stock, authorized						2,500	2,500	2,500
Preferred stock, par value						$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued						1,000	1,000	500
Preferred stock, shares outstanding						1,000	1,000	500
Certificates of Designation [Member] | Series C Preferred Stock [Member]
Designation of preferred stock			50,000
Voting rights			Under the terms of the Amendment to Certificate of Designation of Series C Preferred Stock, 50,000 shares of the Company's preferred remain designated as Series C Preferred Stock. The holders of Series C Preferred Stock have no conversion rights and no dividend rights. For so long as any shares of the Series C Preferred Stock remain issued and outstanding, the Holder thereof, voting separately as a class, shall have the right to vote on all shareholder matters equal to sixty-seven (67%) percent of the total vote.
Certificates of Designation [Member] | Series D Preferred Stock [Member]
Designation of preferred stock				20,000
Voting rights				Under the terms of the Certificate of Designation of Series D Preferred Stock, 20,000 shares of the Company's preferred stock have been designated as Series D Convertible Preferred Stock. The holders of the Series D Convertible Preferred Stock shall not be entitled to receive dividends. The holders as a group may, at any time convert all of the shares of Series D Convertible Preferred Stock into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion, by 3. Except as provided in the Certificate of Designation or as otherwise required by law, no holder of the Series D Convertible Preferred Stock shall be entitled to vote on any matter submitted to the shareholders of the Company for their vote, waiver, release or other action. The Series D Convertible Preferred Stock shall not bear any liquidation rights.
Certificates of Designation [Member] | Series E Preferred Stock [Member]
Designation of preferred stock			3,000
Optional redemption per share			$ 1,000
Securities Purchase Agreement [Member] | Series C Preferred Stock [Member] | PCTI [Member]
Number of shares of common stock		47,500
Securities Purchase Agreement [Member] | Series D Preferred Stock [Member] | PCTI [Member]
Number of shares of common stock		18,667
Securities Purchase Agreement [Member] | Series D Preferred Stock [Member] | PCTI [Member] | Mr. Convay [Member]
Number of shares of common stock							2,500
Securities Purchase Agreement [Member] | Series E Preferred Stock [Member] | PCTI [Member]
Number of shares of common stock		500
Employment Agreement [Member] | Series D Preferred Stock [Member] | Mr. Convay [Member]
Number of shares of common stock	1,333
Employment Agreement [Member] | Series E Preferred Stock [Member] | Mr. Convay [Member]
Number of shares of common stock	500

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Operating Lease Right-of-use Assets And Operating Lease Liabilities (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Lease expiration date			Nov. 30, 2022
Operating lease, incremental borrowing rate	7.50%		7.50%
Operating lease expense	$ 21,278	$ 21,125	$ 63,278	$ 63,375
Operating lease right-of-use assets	167,500		167,500
Operating lease liabilities	$ 167,500		$ 167,500
Accounting Standards Update 2016-02 [Member]
Operating lease right-of-use assets		185,139		185,139
Operating lease liabilities		$ 185,139		$ 185,139

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Operating Lease Right-of-use Assets And Operating Lease Liabilities - Schedule of Right-of- Use Assets (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Office and warehouse lease	$ 185,139
Less accumulated amortization	(17,639)
Right-of-us assets, net	$ 167,500

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Operating Lease Right-of-use Assets And Operating Lease Liabilities - Schedule of Operating Lease Liabilities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Lease liability	$ 167,500
Less current portion	(73,945)
Long term portion	$ 93,555

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Operating Lease Right-of-use Assets And Operating Lease Liabilities - Schedule of Maturity of Lease Liabilities (Details)	Sep. 30, 2020 USD ($)
Leases [Abstract]
For the three months ending December 31, 2020	$ 21,000
For the year ending December 31, 2021	84,000
For the eleven months ending November 30, 2022	77,000
Total	182,000
Less: present value discount	(14,500)
Lease liability	$ 167,500

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Subsequent Events (Details Narrative) - USD ($)									2 Months Ended	9 Months Ended
	Nov. 20, 2020	Nov. 16, 2020	Nov. 13, 2020	Aug. 25, 2020	Aug. 24, 2020	Jun. 26, 2020	Jun. 25, 2020	Apr. 12, 2020	Nov. 20, 2020	Sep. 30, 2020	Dec. 26, 2020	Nov. 19, 2020
Debt instrument interest rate											7.75%
Debt instrument maturity								Dec. 26, 2020
Number of warrants issued to acquire shares of common stock										106,528,473
Promissory Note [Member]
Debt instrument face amount										$ 750,000
Promissory Note [Member] | Holder [Member]
Debt instrument face amount					$ 750,000		$ 203,000
Debt instrument interest rate					12.00%
Debt instrument maturity					Aug. 24, 2021		Jun. 25, 2021
Debt instrument, description					Principal payments shall be made in six instalments of $125,000 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date.		Principal payments shall be made in six installments of $33,333 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Holder shall have the right from time to time, and at any time following an event of default, as defined on the agreement, to convert all or any part of the outstanding and unpaid principal, interest and any other amounts due into fully paid and non-assessable shares of common stock of the Company, at the lower of i) the Trading Price (as defined in the agreement) during the previous five trading days prior to the Issuance Date or ii) the volume weighted average price during the five trading days ending on the day preceding the conversion date.
Legal fee				$ 87,000		$ 27,000
Number of warrants issued to acquire shares of common stock				122,950,819		10,000,000
Warrants exercise price				$ 0.0061		$ 2
Promissory Note [Member] | Investor [Member]
Debt instrument, description										This note is convertible into shares of the Company's common stock beginning on the Issuance Date at $0.01 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.01 or the volume weighted average price of the common stock during the five (5) Trading Day period ending on the day prior to conversion.
Subsequent Event [Member]
Number of shares of common stock									123,357,984
Common stock upon the conversion									$ 293,449
Subsequent Event [Member] | Holder [Member]
Number of shares issued upon exercise of warrants	2
Number of warrants issued to acquire shares of common stock	125,000,000								125,000,000
Warrants exercise price	$ 0.008								$ 0.008
Subsequent Event [Member] | Promissory Note [Member] | Holder [Member]
Debt instrument face amount			$ 1,000,000
Debt instrument interest rate			12.00%
Debt instrument maturity			Nov. 13, 2021
Debt instrument, description			Principal payments shall be made in six instalments of $166,667 commencing 180 days from the Issue Date and continuing each 30 days thereafter for 5 months and the final payment of principal and interest due on the Maturity Date. The Company received proceeds of $890,000 on November 20, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $110,000. In conjunction with this Note, the Company issued 2 common stock purchase warrants; each warrant entitles the Holder to purchase 125,000,000 shares of common stock at an exercise price of $0.008, subject to adjustments and expires on the five-year anniversary of the Issue Date.
Proceeds received	$ 890,000
Legal fee	$ 110,000
Subsequent Event [Member] | Promissory Note [Member] | Investor [Member]
Debt instrument face amount		$ 250,000
Debt instrument interest rate		15.00%
Debt instrument, description		Principal payments shall be made in six instalments of $57,500 commencing May 21, 2021, and continuing each 30 days thereafter for 4 months.
Number of warrants issued to acquire shares of common stock												35,000,000
Warrants exercise price												$ 0.25
Original discounts												$ 50,000