UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
For the transition period from ________ to ________
Commission File Number
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(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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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).
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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.
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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
As of November 12, 2021, the Registrant had
2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that can be expected for the year ending December 31, 2021.
As used in this Quarterly Report, the terms "we," "us," "our," "Live Current," and the "Company" mean Live Current Media Inc. and its subsidiaries, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.
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LIVE CURRENT MEDIA INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2021
(Expressed in US Dollars)
(Unaudited)
F-1
| September 30, 2021 | December 31, 2020 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash | $ | $ | ||||
| Non-current assets | ||||||
| Intangible assets | ||||||
| Development of computer software | ||||||
| Prepaid expenses | ||||||
| Equity investments | ||||||
| $ | $ | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | $ | ||||
| Other payable | ||||||
| Stockholders' equity | ||||||
| Capital stock | ||||||
| Authorized: | ||||||
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| Issued and outstanding as of September 30, 2021 and December 31, 2020: |
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| Additional paid in capital | ||||||
| Deficit | ( |
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| $ | $ | |||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-2
| For the three months ended | For the nine months ended | ||||||||||||
| September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | ||||||||||
| Operating expense (income) | |||||||||||||
| Domain content and registration | $ | $ | $ | $ | |||||||||
| General and administrative | |||||||||||||
| Interest expense | |||||||||||||
| Management fees | |||||||||||||
| Marketing | |||||||||||||
| Professional fees | |||||||||||||
| Transfer agent and regulatory | |||||||||||||
| Website development | |||||||||||||
| Stock based compensation | |||||||||||||
| Fair value change of equity investments | ( |
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| Gain on sale of license | ( |
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| Gain on domain name sale | ( |
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| Net income (loss) for the period | $ | ( |
) | $ | ( |
) | $ | $ | |||||
| Basic and diluted gain (loss) per share | ( |
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| Weighted average number of basic common shares outstanding | |||||||||||||
| Weighted average number of diluted common shares outstanding | |||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-3
| Common Stock | Additional | Total | |||||||||||||
| Number | Paid In | Accumulated | Stockholders' | ||||||||||||
| of Shares | Amount | Capital | Deficit | Equity | |||||||||||
| Balance, December 31, 2019 | $ | $ | $ | ( |
) | $ | |||||||||
| Stock-based compensation | - | - | - | ||||||||||||
| Net income | - | - | - | ||||||||||||
| Balance, March 31, 2020 | $ | $ | $ | ( |
) | $ | |||||||||
| Net income | - | - | - | ||||||||||||
| Balance, June 30, 2020 | $ | $ | $ | ( |
) | $ | |||||||||
| Stock-based Compensation | - | - | - | ||||||||||||
| Net Loss | - | - | - | ( |
) | ( |
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| Balance, September 30, 2020 | ( |
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| Balance, December 31, 2020 | $ | $ | $ | ( |
) | $ | |||||||||
| Stock-based compensation | - | - | - | ||||||||||||
| Net Income | - | - | - | ||||||||||||
| Balance, March 31, 2021 | $ | $ | $ | ( |
) | $ | |||||||||
| Net Loss | - | - | - | ( |
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| Balance, June 30, 2021 | $ | $ | $ | ( |
) | $ | |||||||||
| Stock-based compensation | - | - | - | ||||||||||||
| Net Loss | - | - | - | ( |
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| Balance, September 30, 2021 | ( |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
F-4
| For the nine months ended | ||||||
| September 30, 2021 | September 30, 2020 | |||||
| Cash flows used in operating activities | ||||||
| Net income (loss) for the period | $ | $ | ||||
| Prepaid expense | ( |
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| Accrued interest | ||||||
| Fair value change on equity investments | ( |
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| Gain on sale of license | ( |
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| Gain on domain name sale | ( |
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| Stock based compensation | ||||||
| Changes in non-cash working capital items | ||||||
| Accounts payable and accrued liabilities | ( |
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| Cash used in operating activities | ( |
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| Cash flows provided by Investing activities | ||||||
| Proceeds received for sale of domain name | ||||||
| Website development | ( |
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| Cash provided by (used in) investing activities | ( |
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| Change in cash | ( |
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| Cash, beginning of period | ||||||
| Cash, end of period | $ | $ | ||||
| Supplemental cash flow information: | ||||||
| Interest paid | $ | $ | ||||
| Income taxes paid | $ | $ | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-5
1. NATURE AND CONTINUANCE OF OPERATIONS
Live Current Media, Inc. (the "Company" or "Live Current") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company's wholly owned principal operating subsidiary, Domain Holdings Inc. ("DHI"), was incorporated under the laws of British Columbia on July 4, 1994 under the name "IMEDIAT Digital Creations Inc.". On April 14, 1999, IMEDIAT Digital Creations Inc. changed its name to "Communicate.com Inc." and was redomiciled from British Columbia to the jurisdiction of Alberta. On April 5, 2002, Comminicate.com Inc. changed its name to Domain Holdings Inc.
On March 13, 2008, the Company incorporated a subsidiary in the state of Delaware, Perfume.com Inc. (Perfume Inc.) which is a dormant and inactive company.
Live Current is a digital technology company involved in the entertainment industry. Live Current is currently developing 2 projects, SPRT MTRX and Trivia Matrix, which are positioned in the sports and gaming sectors.
The accompanying condensed interim consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2021, the Company has no continuing source of revenue and has an accumulated deficit of $
In March of 2020, the World health Organization declared an outbreak of COVID-19 a global pandemic. The COVID-19 has impacted a vast array of businesses through the restriction pit in place by most governments internationally, including the USA federal government as well as state and municipal governments, regarding travel, business operation and isolation/quarantine orders. At this time, it is unknown to what extent the impact of the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the out-break, including the duration of travel restriction, business closures or disruptions and quarantine/isolation measures that are currently, or may be put, in place world-wide to fight the virus. While the extent of the impact is unknown, the COVID-19 outbreak may hinder the Company's ability to raise financing for operation cost due to uncertain capital markets, supply chain disruptions, increased government regulations and other unanticipated factors, all of which may also negatively impact the Company's business and financial condition.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These condensed interim consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United State ("US GAAP"), and are expressed in United States dollars.
Basis of Presentation
The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the balance sheet; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company's Annual Report in Form 10-K, for the year ended December 31, 2020, as filed with the SEC on March 30, 2021.
DEVELOPMENT COSTS
The Company has adopted the provision of ASC 985-20-25, Costs of Software to Be Sold, Leased or Marketed, whereby costs incurred to establish the technological feasibility of a computer software product to be sold, leased or marketed are research and development costs. Research costs are expensed as incurred; costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized; and costs incurred when the product is available for general release to the customers are expensed as incurred. Upgrades and enhancements are capitalized if they result in added functionality which enables the software to perform tasks it was previously incapable of performing.
F-6
EQUITY INVESTMENTS
Equity investments are classified as available for sale and are stated at fair market value. Unrealized gains and losses are recognized in the Company's statement of operations.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company's financial instruments include cash, equity investments, accounts payable, and other payable. The carrying value of cash, accounts payable, and other payable approximates their fair value based on their short-term nature. The Company is not exposed to significant interest, exchange or credit risk arising from these financial instruments.
The fair value hierarchy under US GAAP is based on the following three levels of inputs, of which the first two are considered observable and the last unobservable:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Observable inputs other than Level I, quoted prices for similar assets or liabilities in active prices whose inputs are observable or whose significant value drivers are observable; and
Level 3: Assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities.
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the period ended September 30, 2021.
Cash is measured at fair value using level 1 and equity investments are measured at fair value using level 2 inputs respectively.
3. INTANGIBLE ASSETS
The Company's portfolio of domain names is considered by management to consist of indefinite life intangible assets not subject to amortization.
On March 22, 2021 the Company completed the sale of one of its domain names for $
4. DEVELOPMENT OF COMPUTER SOFTWARE
During the nine months period ended September 30, 2021, the Company continued with the website development for SPRT MRTX and began development of a new project, Trivia Matrix. A total of $
5. EQUITY INVESTMENT AND ROYALTIES
On March 21, 2019, the Company entered an agreement with Cell MedX Corp. ("CMXC") to purchase the direct rights to distribute the eBalance device from CMXC. On January 29, 2020 the Company and CMXC entered a buyback agreement to sell the exclusive distribution rights to the eBalance microcurrent device back to CMXC.
The sales price included a retained royalty on future sales of the eBalance device capped at US$
The initial recognition of the equity investment in CMXC resulted in a $
F-7
As at September 30, 2021, the fair value of the equity investment was calculated to be $
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On September 30, 2021 the equity investment was recalculated resulting in a loss of $
During the nine months period ended September 30, 2021, no CMXC warrants were sold and no realized gain or loss from sale of equity investment was realized.
5. SHARE CAPITAL
As at September 30, 2021, the Company had
F-8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this Quarterly Report constitute "forward-looking statements." These statements, identified by words such as "plan," "anticipate," "believe," "estimate," "should," "expect" and similar expressions include the Company's expectations and objectives regarding its future financial position, operating results and business strategy. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, general economic conditions particularly related to demand for the Company's products and services, changes in business strategy, competitive factors (including the introduction or enhancement of competitive services), pricing pressures, changes in operating expenses, fluctuation in foreign currency exchange rates, inability to attract or retain consulting, sales and/or development talent, changes in customer requirements, and/or evolving industry standards, as well as those factors discussed in the section titled "Part II, Item 1A. Risk Factors" in this Quarterly Report.
Forward looking statements are based on a number of material factors and assumptions, including the availability and final receipt of required government licenses, that sufficient working capital is available to complete the proposed activities, that contracted parties provide goods and/or services on the agreed time frames. While the Company considers these assumptions may be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in the section titled "Risk Factors" in this Quarterly Report.
The Company intends to discuss in its Quarterly Reports and Annual Reports any events or circumstances that occurred during the period to which such documents relate that are reasonably likely to cause actual events or circumstances to differ materially from those disclosed in this registration statement. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on its business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forwarding looking statement. You are advised to carefully review the reports and documents that the Company files from time to time with the United States Securities Exchange Commission (the "SEC"), particularly its periodic reports filed with the SEC pursuant to the Securities Exchange Act of 1934 (the "Exchange Act").
OVERVIEW
Live Current Media, Inc. (the "Company" or "Live Current") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company operates a segment of its business through its wholly owned subsidiary, Domain Holdings Inc., originally formed under the laws of British Columbia, Canada on July 4, 1994 and re-domiciled to Alberta, Canada on April 14, 1999 ("DHI"). The Company is also the majority shareholder of Perfume.com Inc. (95% ownership), formed under the laws of the State of Delaware on March 13, 2008. Perfume.com Inc. is currently dormant and does not carry on an active business. References herein to the Company include DHI and Perfume.com Inc. (collectively, the "Subsidiaries") unless otherwise stated.
The Company is a development stage, technology company involved in the entertainment industry. Currently developing two products, SPRT MTRX and Trivia Matrix, management is positioning the Company to take advantage of the exciting and rapidly growing Sports and Gaming sectors.
5
PLAN OF OPERATIONS
SPRT MTRX
SPRT MTRX is a gaming app, available in both iPhone and Android versions, in which players bid on the final scores of NHL, NBA and NFL games. The events are organized as "Challenges" and cover multiple games over one day. A cash prize is awarded to the player who receives the most points for correctly bidding on the final scores of the games included in the Challenge. The system for bidding on the final scores is unique in the gaming industry.
Revenue Model. The business model entails offering cash prizes to introduce and attract players to the game, developing a large contingent of users and delivering advertisements. This model, free to play (F2P), has proven popular among gamers as the lure of free money is a very attractive inducement.
Development. The Company will continue to develop and enhance the SPRT MTRX through 2021 by adding additional functionality and more sports such as MLB and EPL but does not anticipate generating any significant revenue from SPRT MTRX in fiscal 2021.
Trivia Matrix
Trivia Matrix is a mobile trivia game app. The game consists of a 4 x 4 grid of eight mixed pairs of trivia data belonging to a specific category. The categories are Geography, History, Sports, Natural World, Pop Culture and Entertainment. The goal of the game is to eliminate each pair of trivia by matching them together and clear the grid of all data. Examples of matches are; actor with movie, musician with band, painter with painting, country with capital and country with silhouette.
Revenue Model. Trivia Matrix is a F2P game. Revenue will be generated by presenting advertisements periodically to players who complete games and by in app purchases (IAP) such as pay to avoid advertisements and pay to gain access to a premium account, which includes more data and more questions.
Development. The game is currently a single player game and involves playing against a clock to achieve the fastest time for clearing the grid. Future development includes two versions of head to head competitions and an elimination tournament game format.
The game is available on the Apple App Store and Apple tablets. A Google Play Store version of Trivia Matrix is under development.
Boxing.com FEDERATION
The Company terminated developing Boxing.com Federation in March 2021.
The Company does not believe it has the necessary cash requirements for the next 12 months without having to raise additional funds.
RESULTS OF OPERATIONS
The following selected financial data was derived from the Company's unaudited condensed interim consolidated financial statements for the periods ended September 30, 2021 and September 30, 2020. The information set forth below should be read in conjunction with the Company's financial statements and related notes included elsewhere in this Quarterly Report.
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| For the three months ended | For the nine months ended | ||||||||||||||||||
| September 30, 2021 | September 30, 2020 | % Change | September 30, 2021 | September 30, 2020 | % Change | ||||||||||||||
| Operating expense (income) | |||||||||||||||||||
| Domain content and registration | $ | - | $ | - | n/a | $ | 3,072 | $ | 3,140 | -2.17% | |||||||||
| General and administrative | 12,016 | 9,007 | 33.41% | 37,095 | 32,275 | 14.93% | |||||||||||||
| Interest expense | 51 | 51 | 0.00% | 153 | 153 | 0.00% | |||||||||||||
| Management fees | 30,035 | 30,007 | 0.09% | 93,651 | 93,707 | -0.06% | |||||||||||||
| Marketing | 11,400 | - | n/a | 55,978 | 13,820 | 305.05% | |||||||||||||
| Professional fees | 13,930 | 3,491 | 299.03% | 19,995 | 37,578 | -46.79% | |||||||||||||
| Transfer agent and regulatory | 5,822 | 2,785 | 109.005% | 25,250 | 19,929 | 26.70% | |||||||||||||
| Website development | 28,411 | - | n/a | 31,874 | 1,506 | 2016.47% | |||||||||||||
| Stock based compensation | - | - | n/a | 95,722 | - | n/a | |||||||||||||
| Total | $ | 101,665 | $ | 45,341 | $ | 362,790 | $ | 202,108 | |||||||||||
Results of Operation
Revenue
The Company did not recognize recurring revenues during the three-month period ended September 30, 2021 or the three-month period ended September 30, 2020. The Company does not anticipate recognizing recurring revenues in 2021.
At September 30, 2021 the Company had an accumulated deficit of $17,518,485. The Company is presently in the development stage of its business and cannot provide any assurances that it will be able to generate regular or recurring revenues in the near future.
Operating Expenses
Operating expenses for the three-month period ended September 30, 2021 and the three-month period ended September 30, 2020 were $101,665 and $45,341 respectively. The majority of the difference is related to marketing costs expended on Trivia Matrix and the switch from capitalizing development costs to expensing development costs of Trivia Matrix in the quarter ended September 30, 2021. The operating expense for the nine-months ended September 30, 2021 and the nine-months ended September 30, 2020 were $362,790 and $202,108 respectively. The increased expense in the nine-month period ended September 30, 2021 is primarily attributable to a one time $95,722 cost for stock-based compensation.
Net Loss
The Company recorded a net loss $235,526 for the three-month period ended September 30, 2021 compared to a net loss of $365,941 for the three-month period ended September 30, 2020. The difference in the periods ended September 30, was attributable to a decrease in the fair value loss of an equity investment related to warrants detailed below. On a strictly operational basis, the Company also had net losses during both of the periods being compared.
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On January 29, 2020, the Company made the decision to exit the medical device distribution business and agreed to sell back to Cell MedX Corp. ("Cell MedX") the exclusive worldwide distribution rights to Cell MedX's eBalance microcurrent device, acquired in 2019 (the "Distribution Rights"). Under the terms of the agreement, the Company sold the Distribution Rights back to Cell MedX in consideration for a royalty on future sales of the eBalance device capped at US$507,500, plus warrants to purchase up to 2,000,000 shares in the common stock of Cell MedX (the "Warrants") exercisable for a period of three (3) years. 1,000,000 of the Warrants are exercisable at a price of $US0.50 per share (the "$0.50 Warrants"), with the remaining 1,000,000 Warrants exercisable at US$1.00 per share (the "$1.00 Warrants"). The Warrants are subject to an acceleration right, with the $0.50 Warrants being subject to acceleration if Cell MedX's common stock trades at or above $1.00 per share for 30 consecutive trading days, and the $1.00 Warrants being subject to acceleration if Cell MedX's common stock trades at or above $1.75 per share for 30 consecutive trading days. Cell MedX may buyout the royalty at any time during the first twelve months following the effective date of the agreement for 85% of the remaining amount of the royalty still payable.
Liquidity and Capital Resources
At September 30, 2021, the Company had working capital of $695,014, an increase from the Company's working capital of $41,938 at December 31, 2020. During the nine months ended September 30, 2021 the Company had negative operating cash flow. Due to the fact that the Company has incurred recurring operating losses and anticipates incurring further operating losses in the future, there is substantial doubt as to the Company's ability to continue as a going concern.
The Company does not anticipate purchasing any plant or significant equipment in the immediate future.
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to shareholders.
CRITICAL ACCOUNTING POLICIES
The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular URL should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of a domain name is less than its carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. When it is determined that the fair value of a domain name is less than it's carrying amount, impairment is recognized.
8
RECENT ACCOUNTING PRONOUNCEMENTS
There are no new accounting pronouncements that materially impact the Company's condensed consolidated interim financial statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES.
At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company's management, including the President and Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), of the effectiveness of the design and operations of the Company's disclosure controls and procedures (as defined in Rule 13a - 15(e) and Rule 15d - 15(e) under the Exchange Act). Based on that evaluation, the PEO and the PFO have concluded that as of the end of the period covered by this report, the Company's disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.
Management of the Company believes that these material weaknesses are due to the small size of the Company's accounting staff. The small size of the Company's accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.
During the fiscal quarter ended September 30, 2021, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 5. OTHER INFORMATION
None.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The Company was not involved in any material legal proceedings during the interim period ended September 30, 2021.
ITEM 1A. RISK FACTORS.
An investment in the Company's securities involves a high degree of risk. You should carefully consider the risks described below and the other information in this registration statement before investing in its common shares. If any of the following risks occur, the Company's business, operating results and financial condition could be seriously harmed. The trading price of its common shares could decline due to any of these risks, and you may lose all or part of your investment.
You should consider each of the following risk factors and the other information in this registration statement, including the Company's financial statements and the related notes, in evaluating its business and prospects. The risks and uncertainties described below are not the only ones that impact on the Company's business. Additional risks and uncertainties not presently known to the Company or that the Company currently consider immaterial may also impair its business operations. If any of the following risks do occur, its business and financial results could be harmed. In that case, the trading price of its common stock could decline.
Risks Associated with the Company's Gaming Business
Licensing. Currently, other than business and operations licenses applicable to most commercial ventures, the Company is not required to obtain any governmental approval for its business operations. There can be no assurance, however, that governmental institutions will not, in the future, impose licensing or other requirements on the Company. Additionally, as noted below, there are a variety of laws and regulations that may, directly or indirectly, have an impact on the Company's business.
Privacy Legislation and Regulations. While the Company is not currently subject to licensing requirements, entities engaged in operations over the Internet, particularly relating to the collection of user information, are subject to limitations on their ability to utilize such information under federal and state legislation and regulation. In 2000, the Gramm-Leach-Bliley Act required that the collection of identifiable information regarding users of financial services be subject to stringent disclosure and "opt-out" provisions. While this law and the regulations enacted by the Federal Trade Commission and others relates primarily to information relating to financial transactions and financial institutions, the broad definitions of those terms may make the businesses entered into by the Company and its strategic partners subject to the provisions of the Act. This, in turn, may increase the cost of doing business and make it unattractive to collect and transfer information regarding users of services. This, in turn, may reduce the revenues of the Company and its strategic partners, thus reducing potential revenues and profitability. Similarly, the Children On-line Privacy and Protection Act ("COPPA") imposes strict limitations on the ability of Internet ventures to collect information from minors. The impact of COPPA may be to increase the cost of doing business on the Internet and reducing potential revenue sources. The Company may also be impacted by the US Patriot Act, which requires certain companies to collect and provide information to United States governmental authorities. A number of state governments have also proposed or enacted privacy legislation that reflects or, in some cases, extends the limitations imposed by the Gramm-Leach-Bliley Act and COPPA. These laws may further impact the cost of doing business on the Internet and the attractiveness of Live Current's inventory of domain names.
Advertising Regulations. In response to concerns regarding "spam" (unsolicited electronic messages), "pop-up" web pages and other Internet advertising, the federal government and a number of states have adopted or proposed laws and regulations which would limit the use of unsolicited Internet advertisements. While a number of factors may prevent the effectiveness of such laws and regulations, the cumulative effect may be to limit the attractiveness of effecting and promoting sales on the Internet, thus reducing the value of the Company's advertising driven revenue model.
10
There are currently few laws or regulations that specifically regulate communications or commerce on the Internet. However, laws and regulations may be adopted in the future that address issues such as user privacy, pricing and the characteristics and quality of products and services. For example, the Telecommunications Act of 1996 sought to prohibit transmitting various types of information and content over the Internet. Several telecommunications companies have petitioned the Federal Communications Commission to regulate Internet service providers and on-line service providers in a manner similar to long distance telephone carriers and to impose access fees on those companies. This could increase the cost of transmitting data over the Internet. Moreover, it may take years to determine the extent to which existing laws relating to issues such as intellectual property ownership, libel and personal privacy are applicable to the Internet. Any new laws or regulations relating to the Internet or any new interpretations of existing laws could have a negative impact on Live Current's business and add additional costs to doing business on the Internet.
Competition. The Company competes with many companies possessing greater financial resources and technical facilities than itself in the B2C (business-to-consumer) market as well as for the recruitment and retention of qualified personnel. In addition, some of these competitors have been in business for longer than Live Current and may have established more strategic partnerships and relationships than the Company.
Dependence on One or a Few Major Customers. The Company does not currently depend on any single customer for a significant proportion of its business. However, as the Company enters into strategic transactions, the Company may choose to grant exclusive rights to a small number of parties or otherwise limit its activities that could, in turn, create such dependence. The Company, however, has no current plans to do so.
Patents, Trademarks and Proprietary Rights. The Company will consider seeking trademark protection for its gaming businesses, however, the Company may be unable to avail itself of trademark protection under United States laws. Consequently, the Company will seek trademark protection only where it has determined that the cost of obtaining protection, and the scope of protection provided, results in a meaningful benefit to the Company.
Market Acceptance. SPRT MTRX and Trivia Matrix are new products in a product abundant gaming market and there is no guarantee that they will be accepted by the market. In addition to acceptance, should they be accepted, there is no guarantee that they will maintain their popularity in a notoriously fickle gaming market.
Suspension of Live, Professional Sports. SPRT MTRX relies on live, professional sports to provide game content. Without live professional sports, SPRT MTRX will be forced to change its business model. This could possibly include developing artificial intelligence induced content. There could be significant costs associated with this change and there is no guarantee that it would meet with public acceptance.
Risks Related to the Company's Securities
Additional financing will be required. The Company anticipates that it will require significant additional financing to fund its proposed business development plans. The cost of developing the Company's platforms is anticipated to be substantially greater than the Company's existing financial resources, and the Company anticipates that it will require substantial financing to develop and operate its businesses over the next 12 months.
If the Company is unable to obtain additional financing when needed, the Company may not be able to complete its business development plans or its business could fail. The Company will scale back its development plans depending upon its existing financial resources.
The Company's ability to obtain future financing will be subject to a number of factors, including the variability of the global economy, investor interest in our planned business projects, and the performance of equity markets in general. These factors may make the timing, amount, terms or conditions of additional financing unavailable to the Company. If the Company is not able to obtain financing when needed or in an amount sufficient to enable us to complete our programs, the Company may be required to scale back its business development plans.
11
If additional financings equity financing will dilute existing stockholders. The most likely source of future financing presently available to the Company is through the sale of shares of its common stock. Issuing shares of common stock, for financing purposes or otherwise, will dilute the interests of existing stockholders.
The Company's stock price is volatile. The stock markets in general, and the stock prices of internet companies in particular, have experienced extreme volatility that often has been unrelated to the operating performance of any specific public company. The market price of the Company's Common Stock is likely to fluctuate in the future, especially if the Company's Common Stock is thinly traded. Factors that may have a significant impact on the market price of the Company's Common Stock include:
(a) actual or anticipated variations in the Company's results of operations;
(b) the Company's ability or inability to generate new revenues;
(c) increased competition;
(d) government regulations, including internet regulations;
(e) conditions and trends in the internet industry;
(f) proprietary rights; or
(g) rumors or allegations regarding the Company's financial disclosures or practices.
The Company's stock price may be impacted by factors that are unrelated or disproportionate to its operating performance. These market fluctuations, as well as general economic, political and market conditions, such as recessions, interest rates or international currency fluctuations may adversely affect the market price of the Company's Common Stock.
The Company does not expect to pay dividends in the foreseeable future. The Company has never paid cash dividends on its Common Stock and has no plans to do so in the foreseeable future. The Company intends to retain earnings, if any, to develop and expand its business.
"Penny Stock" rules may make buying or selling the Company's Common Stock difficult, and severely limit its market and liquidity. Trading in The Company's Common Stock is subject to certain regulations adopted by the SEC commonly known as the "penny stock" rules. The Company's Common Stock qualifies as penny stocks and are covered by Section 15(g) of the Securities Exchange Act of 1934, which imposes additional sales practice requirements on broker/dealers who sell the Common Stock in the aftermarket. The "penny stock" rules govern how broker-dealers can deal with their clients and "penny stocks". For sales of The Company's Common Stock, the broker/dealer must make a special suitability determination and receive from you a written agreement prior to making a sale to you. The additional burdens imposed upon broker-dealers by the "penny stock" rules may discourage broker-dealers from effecting transactions in The Company's Common Stock, which could severely limit their market price and liquidity of its Common Stock. This could prevent you from reselling your shares and may cause the price of the Common Stock to decline.
Lack of operating revenues. The Company has limited operating revenues and is expected to continue to do so for the foreseeable future. Management has assessed the Company's ability to continue as a going concern and the financial statements included with this registration statement includes disclosure that there is a substantial doubt as to the Company's ability to continue as a going concern. The audit report of the Company's principal independent accountants for the years ended December 31, 2020 and December 31, 2019 includes a statement regarding the uncertainty of the Company's ability to continue as a going concern. The Company's failure to achieve profitability and positive operating revenues could have a material adverse effect on its financial condition and results of operations, and could cause the Company's business to fail.
No assurance that forward-looking assessments will be realized. The Company's ability to accomplish their objectives and whether or not they are financially successful is dependent upon numerous factors, each of which could have a material effect on the results obtained. Some of these factors are in the discretion and control of management and others are beyond management's control. The assumptions and hypotheses used in preparing any forward-looking assessments contained herein are considered reasonable by management. There can be no assurance, however, that any projections or assessments contained herein or otherwise made by management will be realized or achieved at any level.
12
Uncertainty due to Global Outbreak of COVID-19. In March of 2020, the World Health Organization declared an outbreak of COVID-19 a global pandemic. The COVID-19 has impacted a vast array of businesses through the restrictions put in place by most governments internationally, including the USA federal government as well as state and municipal governments, regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown to what extent the impact of the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place world-wide to fight the virus. While the extent of the impact is unknown, the COVID-19 outbreak may hinder the Company's ability to raise financing for exploration or operating costs due to uncertain capital markets, supply chain disruptions, increased government regulations and other unanticipated factors, all of which may also negatively impact the Company's business and financial condition.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
The Company did not engage in any sales of its equity securities during the interim period ended September 30, 2021.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
ITEM 5. OTHER INFORMATION
None.
13
ITEM 6. EXHIBITS.
The following exhibits are either provided with this Quarterly Report or are incorporated herein by reference:
Notes:
(1) Filed as an exhibit to the Company's Registration Statement on Form 10, originally filed on February 1, 2018.
(2) Filed as an exhibit to the Company's Current Report on Form 8-K, filed on December 12, 2018.
(3) Filed as an exhibit to the Company's Current report on Form 8-K, filed on January 31, 2020.
14
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.
| LIVE CURRENT MEDIA INC. | |||
| Date: | November 12, 2021 | By: | /s/ David M. Jeffs |
| DAVID M. JEFFS | |||
| Chief Executive Officer, President, Chief Financial Officer and Secretary | |||
| (Principal Executive Officer and Principal Financial Officer) |
15
CERTIFICATIONS
I, David M. Jeffs, certify that;
(1) I have reviewed this Quarterly Report on Form 10-Q of Live Current Media Inc.;
(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4) The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
(5) The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
| Date: | November 12th, 2021 | |
| /s/ David M. Jeffs | ||
| By: | David M. Jeffs | |
| Title: | Chief Executive Officer, President, Treasurer and Secretary | |
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, David M. Jeffs, the Chief Executive Officer and Treasurer of Live Current Media Inc. (the "Company"), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
(i) the Quarterly Report on Form 10-Q of the Company, for the fiscal quarter ended September 30, 2021, and to which this certification is attached as Exhibit 32.1 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| By: | /s/ David M. Jeffs | |
| Name: | DAVID M. JEFFS | |
| Title: | Chief Executive Officer and Treasurer (chief financial officer) |
|
| Date: | Nov 12, 2021 |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Current assets | ||
| Cash | $ 807,970 | $ 176,511 |
| Total Current Assets | 807,970 | 176,511 |
| Non-current assets | ||
| Intangible assets | 6,663 | 105,417 |
| Development of computer software | 195,962 | 128,268 |
| Prepaid expenses | 30,000 | 0 |
| Equity investments | 67,009 | 398,308 |
| Total Assets | 1,107,604 | 808,504 |
| Current liabilities | ||
| Accounts payable | 94,954 | 116,724 |
| Other payable | 18,002 | 17,849 |
| Total Liabilities | 112,956 | 134,573 |
| Stockholders' equity | ||
| Capital stock Authorized: 500,000,000 common shares, par value $0.001 per share Issued and outstanding as of September 30, 2021 and December 31, 2020: 34,837,625 common shares | 34,838 | 34,838 |
| Additional paid in capital | 18,478,295 | 18,376,735 |
| Deficit | (17,518,485) | (17,737,642) |
| Total Stockholders Equity | 994,648 | 673,931 |
| Total Liabilities and Stockholders Equity | $ 1,107,604 | $ 808,504 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
| Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
| Common Stock, Shares, Issued | 34,837,625 | 34,837,625 |
| Common Stock, Shares, Outstanding | 34,837,625 | 34,837,625 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Operating expense (income) | ||||
| Domain content and registration | $ 0 | $ 0 | $ 3,072 | $ 3,140 |
| General and administrative | 12,016 | 9,007 | 37,095 | 32,275 |
| Interest expense | 51 | 51 | 153 | 153 |
| Management fees | 30,035 | 30,007 | 93,651 | 93,707 |
| Marketing | 11,400 | 0 | 55,978 | 13,820 |
| Professional fees | 13,930 | 3,491 | 19,995 | 37,578 |
| Transfer agent and regulatory | 5,822 | 2,785 | 25,250 | 19,929 |
| Website development | 28,411 | 0 | 31,874 | 1,506 |
| Stock based compensation | 0 | 0 | 95,722 | 0 |
| Fair value change of equity investments | 133,861 | 320,600 | 331,298 | (329,807) |
| Gain on sale of license | 0 | 0 | 0 | (351,134) |
| Gain on domain name sale | 0 | 0 | (913,246) | 0 |
| Net income (loss) for the period | $ (235,526) | $ (365,941) | $ 219,158 | $ 478,833 |
| Basic and diluted gain (loss) per share (in dollars per share) | $ (0.01) | $ (0.01) | $ 0.01 | $ 0.01 |
| Weighted average number of basic common shares outstanding (in Shares) | 34,837,625 | 34,837,625 | 34,837,625 | 34,837,625 |
| Weighted average number of diluted common shares outstanding (in Shares) | 34,837,625 | 34,837,625 | 35,427,106 | 34,837,625 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Cash flows used in operating activities | ||
| Net income (loss) for the period | $ 219,158 | $ 478,833 |
| Prepaid expense | (30,000) | 0 |
| Non-cash item | ||
| Accrued interest | 153 | 153 |
| Fair value change on equity investments | 331,298 | (329,807) |
| Gain on sale of license | 0 | (351,134) |
| Gain on domain name sale | (913,246) | 0 |
| Stock based compensation | 95,722 | 0 |
| Changes in non-cash working capital items | ||
| Accounts payable and accrued liabilities | (21,769) | (5,610) |
| Cash used in operating activities | (318,684) | (207,565) |
| Cash flows used in Investing activities | ||
| Proceeds received for sale of domain name | 1,012,000 | 0 |
| Website development | (61,857) | (88,123) |
| Cash provided by (used in) investing activities | 950,143 | (88,123) |
| Change in cash | 631,459 | (295,688) |
| Cash, beginning of period | 176,511 | 432,850 |
| Cash, end of period | 807,970 | 137,162 |
| Supplemental cash flow information: | ||
| Interest paid | 0 | 0 |
| Income taxes paid | $ 0 | $ 0 |
NATURE AND CONTINUANCE OF OPERATIONS |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Nature And Continuance Of Operations [Abstract] | |
| NATURE AND CONTINUANCE OF OPERATIONS [Text Block] |
1. NATURE AND CONTINUANCE OF OPERATIONS Live Current Media, Inc. (the "Company" or "Live Current") was incorporated under the laws of the State of Nevada on October 10, 1995. The Company's wholly owned principal operating subsidiary, Domain Holdings Inc. ("DHI"), was incorporated under the laws of British Columbia on July 4, 1994 under the name "IMEDIAT Digital Creations Inc.". On April 14, 1999, IMEDIAT Digital Creations Inc. changed its name to "Communicate.com Inc." and was redomiciled from British Columbia to the jurisdiction of Alberta. On April 5, 2002, Comminicate.com Inc. changed its name to Domain Holdings Inc. On March 13, 2008, the Company incorporated a subsidiary in the state of Delaware, Perfume.com Inc. (Perfume Inc.) which is a dormant and inactive company. Live Current is a digital technology company involved in the entertainment industry. Live Current is currently developing 2 projects, SPRT MTRX and Trivia Matrix, which are positioned in the sports and gaming sectors. The accompanying condensed interim consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2021, the Company has no continuing source of revenue and has an accumulated deficit of $17,518,485. The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to further develop its business. To date, the Company has funded operations through the issuance of capital stock and debt. Management plans to continue raising additional funds through equity or debt financing and loans from directors. There is no certainty that further funding will be available as needed. These issues raise substantial doubt about the ability of the Company to continue operating as a going concern. The ability of the Company to continue its operations as a going concern is dependent upon its ability to raise sufficient new capital to fund its operating commitments and ongoing losses and ultimately on generating profitable operations. The financial statements do not include any adjustments to be recorded to assets or liabilities that might be necessary should the Company be unable to continue as a going concern. In March of 2020, the World health Organization declared an outbreak of COVID-19 a global pandemic. The COVID-19 has impacted a vast array of businesses through the restriction pit in place by most governments internationally, including the USA federal government as well as state and municipal governments, regarding travel, business operation and isolation/quarantine orders. At this time, it is unknown to what extent the impact of the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the out-break, including the duration of travel restriction, business closures or disruptions and quarantine/isolation measures that are currently, or may be put, in place world-wide to fight the virus. While the extent of the impact is unknown, the COVID-19 outbreak may hinder the Company's ability to raise financing for operation cost due to uncertain capital markets, supply chain disruptions, increased government regulations and other unanticipated factors, all of which may also negatively impact the Company's business and financial condition. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Accounting Policies [Abstract] | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These condensed interim consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United State ("US GAAP"), and are expressed in United States dollars. Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the balance sheet; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company's Annual Report in Form 10-K, for the year ended December 31, 2020, as filed with the SEC on March 30, 2021. DEVELOPMENT COSTS The Company has adopted the provision of ASC 985-20-25, Costs of Software to Be Sold, Leased or Marketed, whereby costs incurred to establish the technological feasibility of a computer software product to be sold, leased or marketed are research and development costs. Research costs are expensed as incurred; costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized; and costs incurred when the product is available for general release to the customers are expensed as incurred. Upgrades and enhancements are capitalized if they result in added functionality which enables the software to perform tasks it was previously incapable of performing. EQUITY INVESTMENTS Equity investments are classified as available for sale and are stated at fair market value. Unrealized gains and losses are recognized in the Company's statement of operations. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company's financial instruments include cash, equity investments, accounts payable, and other payable. The carrying value of cash, accounts payable, and other payable approximates their fair value based on their short-term nature. The Company is not exposed to significant interest, exchange or credit risk arising from these financial instruments. The fair value hierarchy under US GAAP is based on the following three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level I, quoted prices for similar assets or liabilities in active prices whose inputs are observable or whose significant value drivers are observable; and Level 3: Assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the period ended September 30, 2021. Cash is measured at fair value using level 1 and equity investments are measured at fair value using level 2 inputs respectively. |
INTANGIBLE ASSETS |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| INTANGIBLE ASSETS [Text Block] |
3. INTANGIBLE ASSETS The Company's portfolio of domain names is considered by management to consist of indefinite life intangible assets not subject to amortization. On March 22, 2021 the Company completed the sale of one of its domain names for $1,012,000, resulting in a gain of $913,246. |
DEVELOPMENT OF COMPUTER SOFTWARE |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Research And Development Abstract | |
| DEVELOPMENT OF COMPUTER SOFTWARE [Text Block] |
4. DEVELOPMENT OF COMPUTER SOFTWARE During the nine months period ended September 30, 2021, the Company continued with the website development for SPRT MRTX and began development of a new project, Trivia Matrix. A total of $61,857 related to development of computer software was capitalized during the nine months ending September 30, 2021 compared to $88,123 during the same period in 2020. At September 30, 2021 total software development costs are $195,962 |
EQUITY INVESTMENT AND ROYALTIES |
9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||
| Equity Investment And Royalties [Abstract] | |||||||||||
| EQUITY INVESTMENT AND ROYALTIES [Text Block] |
5. EQUITY INVESTMENT AND ROYALTIES On March 21, 2019, the Company entered an agreement with Cell MedX Corp. ("CMXC") to purchase the direct rights to distribute the eBalance device from CMXC. On January 29, 2020 the Company and CMXC entered a buyback agreement to sell the exclusive distribution rights to the eBalance microcurrent device back to CMXC. The sales price included a retained royalty on future sales of the eBalance device capped at US$507,500 and share purchase warrants for 2,000,000 shares of CMXC of which 1,000,000 are exercisable at $0.50 and 1,000,000 exercisable at $1.00. As at September 30, 2021, the Company's equity investment consists of 2,000,000 share purchase warrants. Each CMXC share purchase warrant is exercisable for a period of three years, expiring on January 31, 2023. CMXC has the right to accelerate the expiry date of the warrants based on the trading price of CMXC's shares. The initial recognition of the equity investment in CMXC resulted in a $351,134 gain on sale of distribution license from fair value of equity investments received. On December 31, 2020 the equity investment was revalued resulting in a cumulative gain of $398,308. As at September 30, 2021, the fair value of the equity investment was calculated to be $67,009 based on the market common share using a Black Scholes Options Pricing model with the following assumptions.
On September 30, 2021 the equity investment was recalculated resulting in a loss of $133,861 and $331,298 for the three and nine months ended September 30, 2021 respectively. During the prior year period ending September 30, 2020 the revaluation resulted in a loss of $320,600 and gain of $329,807 for the three and nine months ended September 30, 2020 respectively During the nine months period ended September 30, 2021, no CMXC warrants were sold and no realized gain or loss from sale of equity investment was realized. |
||||||||||
SHARE CAPITAL |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Stockholders' Equity Note [Abstract] | |
| SHARE CAPITAL [Text Block] |
5. SHARE CAPITAL As at September 30, 2021, the Company had 1,800,000 options outstanding with a weighted average exercise price and weighted average life of $0.10 and 1.18 years, respectively. |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation [Policy Text Block] |
Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the balance sheet; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. The accompanying unaudited condensed interim consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company's Annual Report in Form 10-K, for the year ended December 31, 2020, as filed with the SEC on March 30, 2021. |
| DEVELOPMENT COSTS [Policy Text Block] |
DEVELOPMENT COSTS The Company has adopted the provision of ASC 985-20-25, Costs of Software to Be Sold, Leased or Marketed, whereby costs incurred to establish the technological feasibility of a computer software product to be sold, leased or marketed are research and development costs. Research costs are expensed as incurred; costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized; and costs incurred when the product is available for general release to the customers are expensed as incurred. Upgrades and enhancements are capitalized if they result in added functionality which enables the software to perform tasks it was previously incapable of performing. |
| EQUITY INVESTMENTS [Policy Text Block] |
EQUITY INVESTMENTS Equity investments are classified as available for sale and are stated at fair market value. Unrealized gains and losses are recognized in the Company's statement of operations. |
| FAIR VALUE OF FINANCIAL INSTRUMENTS [Policy Text Block] |
FAIR VALUE OF FINANCIAL INSTRUMENTS The Company's financial instruments include cash, equity investments, accounts payable, and other payable. The carrying value of cash, accounts payable, and other payable approximates their fair value based on their short-term nature. The Company is not exposed to significant interest, exchange or credit risk arising from these financial instruments. The fair value hierarchy under US GAAP is based on the following three levels of inputs, of which the first two are considered observable and the last unobservable: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Observable inputs other than Level I, quoted prices for similar assets or liabilities in active prices whose inputs are observable or whose significant value drivers are observable; and Level 3: Assets and liabilities whose significant value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a nonrecurring basis during the period ended September 30, 2021. Cash is measured at fair value using level 1 and equity investments are measured at fair value using level 2 inputs respectively. |
EQUITY INVESTMENT AND ROYALTIES (Tables) |
9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||
| Equity Investment And Royalties [Abstract] | |||||||||||
| Schedule of Stock Options, Valuation Assumptions [Table Text Block] |
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NATURE AND CONTINUANCE OF OPERATIONS (Narrative) (Details) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Nature And Continuance Of Operations [Abstract] | ||
| Accumulated deficit | $ 17,518,485 | $ 17,737,642 |
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||
| Proceeds from sale of domain name | $ 1,012,000 | |||
| Gain on domain name sale | $ 0 | $ 0 | $ 913,246 | $ 0 |
DEVELOPMENT OF COMPUTER SOFTWARE (Narrative) (Details) - USD ($) |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
| Research And Development Abstract | |||
| Website development capitalized | $ 61,857 | $ 88,123 | |
| Software development costs | $ 195,962 | $ 128,268 | |
EQUITY INVESTMENT AND ROYALTIES - Schedule of Stock Options, Valuation Assumptions (Details) - Cell MedX Corp. [Member] |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Risk-free rate (%) | 0.09% |
| Expected stock price volatility (%) | 106.06% |
| Expected dividend yield (%) | 0.00% |
| Expected life of options (years) | 1 year 3 months 29 days |
SHARE CAPITAL (Narrative) (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2021
$ / shares
shares
| |
| Stockholders' Equity Note [Abstract] | |
| Options outstanding | shares | 1,800,000 |
| Options outstanding, weighted average exercise price | $ / shares | $ 0.10 |
| Options outstanding, weighted average life | 1 year 2 months 4 days |