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INVESTMENTS
12 Months Ended
Dec. 31, 2023
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 6 - INVESTMENTS

 

During the year ended December 31, 2023, the Company determined that its investment in Klonetics, Inc., consisting of 83,333 Class A common shares purchased on October 6, 2020 at $0.60 CAD per share and 83,333 Class A common shares purchased on January 15, 2021 at $0.60 CAD per share, had no value and impaired the value of the investment to $nil. As a result, the Company recorded a loss on impairment of investment of $78,760 for the year ended December 31, 2023.

 

On November 22, 2023, the Company closed a deal with LTB Management, LLC (“LTB”) whereby the Company obtained 100 Class B units of LTB in exchange for consideration of 27,224,962 warrants, each entitling the holder to purchase one share of common stock of the Company at $0.02 per share until November 22, 2028; $3,000,000 in promissory notes payable to the sellers; and 100,000 Class C preferred shares, each convertible into 1,250 common shares.

 

Contingent consideration includes a quarterly true up of the sellers’ preferred share proportional ownership to 33% of the outstanding shares of the Company’s common stock, and an earn out whereby the sellers can earn up to an additional 12% pro-rata preferred share proportional ownership (which, if earned, will result in the true up increasing by the pro-rata preferred share proportional ownership earned) based on the Company reaching a threshold of $2,500,000 annual revenue at any time until November 22, 2025. As at December 31, 2023, the Company has an obligation to issue an additional 14,759 Class C preferred shares to the sellers under the true up, valued at $204,220.