10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended JUNE 30, 2022

or

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number 000-52047

GLOBAL FIBER TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Nevada	11-3746201
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
50 Division Street Suite 501 Somerville, New Jersey	08876
(Address of principal executive offices)	(Zip Code)

(732) 695-4389

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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 such files). ☒ Yes ☐ NO

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES ☒ NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ☐ YES    ☐ NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

1,505,431,849 shares of common stock issued and outstanding as of July 15, 2022

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
SIGNATURE		24

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL FIBER TECHNOLOGIES, INC.

(formerly ECO TEK 360, INC. and subsidiaries)

Condensed Consolidated Balance Sheets

As of June 30, 2022 and December 31, 2021 

(Unaudited)

	June 30, 2022			December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	25,622		$	-
Prepaid interest and deposits		-			-
Advances		325,000			-
Total Current Assets		350,622			-
Property and equipment, net		91,466			112,416
Intangible assets		27,468			61,466
TOTAL ASSETS	$	469,556		$	173,882
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Bank overdraft					2,455
Accounts payable and accrued liabilities		237,141			274,852
Accrued compensation		501,250			501,250
Unsecured notes and accrued interest payable		257,527			250,464
Convertible notes and accrued interest - net of debt discount of $24,000 and $52,720, respectively.		784,193			429,416
Convertible notes and accrued interest - related party		84,568			78,568
Promissory note and accrued interest - related party		470,848			376,014
Derivative liabilities		579,774			1,058,528
Advances from related parties		398,136			280,416
Related party loans and accrued interest		261,529			259,529
Self Liquidating Promissory Notes		161,250			157,500
Subscription payable		-			100,000
Current liabilities from discontinued operations		-			84,281
Total Current Liabilities		3,736,216			3,853,273
Stockholders’ Deficit
Preferred stock, Class B, $0.001 par value, 1,000,000 shares authorized, 200,000 shares issued and outstanding		200			200
Common stock $0.001 par value, 2,500,000,000 shares authorized, 1,505,431,849  and 1,450,210,322 shares issued  and outstanding.		1,505,431			1,450,210
Additional paid-in capital		30,259,915			30,092,729
Accumulated deficit		(35,032,206	)		(35,222,530	)
Stockholders' deficit		(3,266,660	)		(3,679,391	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	469,556		$	173,882

The accompanying notes are an integral part of these consolidated financial statements. 

3

GLOBAL FIBER TECHNOLOGIES INC.

(formerly ECO TEK 360, INC. and subsidiaries)

Condensed Consolidated Statement of Operations

For the six and three moths ended June 30, 2022 and 2021

(Unaudited)

	For 3 months months ended						For 6 months months ended
	June 30, 2022			July 30, 2021			June 30, 2022			June 30, 2021
REVENUE	$	-		$	-		$	-		$	193
COST OF REVENUES		-			1,077			-			2,249
GROSS PROFIT (LOSS)		-			(1,077	)		-			(2,056	)
OPERATING EXPENSES
General and administrative		30,081			61,674			52,281			74,241
Depreciation and Amortization		29,485			29,485			58,970			58,970
Professional and Legal Fees		19,099			-			51,349			-
Officer salaries and compensation		-			10,000			-			-
Stock based compensation		-			-			-			10,000
Gain on extinguishment of debt - related party											-
Total Operating Expenses		78,665			101,159			162,600			143,211
LOSS FROM OPERATIONS		(78,665	)		(102,236	)		(162,600	)		(145,267	)
OTHER INCOME (EXPENSE)
(Income) Loss on change in fair value of derivative liabilities		(91,254	)		86,082			478,754			(157,825	)
Gain from extinguishment of debt		-			-			15,856			-
Interest expense and financing costs		(19,601	)		(15,114	)		(35,102	)		30,052
Interest expense - related parties		(7,433	)		(7,467	)		(102,834	)		11,069
Other expense-Funding Fees		(3,750	)					(3,750	)
Total other expense		(122,038	)		63,501			352,924			(116,704	)
NET INCOME (LOSS)		(200,703	)		(38,735	)		190,324			(28,563	)
Net loss per share	$	(0.0001	)	$	(0.0000	)	$	0.0001		$	(0.0000	)
Weighted average common shares outstanding		1,505,431,849			1,253,739,584			1,505,431,849			1,253,569,254

The accompanying notes are an integral part of these consolidated financial statements.

4

GLOBAL FIBER TECHNOLOGIES, INC.

(formerly ECO TEK 360, INC. and subsidiaries)

Condensed Consolidated Statement of Stockholders' Deficit

June 30, 2022 and 2021

(Unaudited)

									Additional					Total
	Class B Preferred Stock				Common Stock				Paid-in		Accumulated			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficiency
Balance December 31, 2020		200,000	$	200		1,253,239,584	$	1,253,239	$	29,789,774	$	(33,821,293	)		(2,778,080	)
Cancellation of Shares												10,172			10,172
Balance March 31, 2021		200,000	$	200		1,253,239,584	$	1,253,239	$	29,789,774	$	(33,811,121	)	$	(2,767,908	)
Issuance of shares for services						1,000,000		1,000		9,000					10,000
Net loss during the quarter												(38,735	)		(38,735	)
Balance June 30, 2021		200,000	$	200		1,254,239,584	$	1,254,239	$	29,798,774	$	(33,849,856	)	$	(2,796,643	)
Balance December 31, 2021		200,000		200		1,450,210,322		1,450,210		30,092,729		(35,222,530	)		(3,679,391	)
Conversion of notes payable						15,638,695		15,638		46,769					62,407
Stock warrants issued for cash										60,000					60,000
Net income (loss)												391,027			391,027
Balance March 31, 2022		200,000	$	200		1,465,849,017	$	1,465,848	$	30,199,498	$	(34,831,503	)	$	(3,165,957	)
Issuance of shares for conversion of notes						39,582,832		39,583		60,417					100,000
Stock warrants issued for cash															-
Net income (loss)												(200,703	)		(200,703	)
Balance June 30, 2022		200,000	$	200		1,505,431,849	$	1,505,431	$	30,259,915	$	(35,032,206	)	$	(3,266,660	)

The accompanying notes are an integral part of these consolidated financial statements.

5

GLOBAL FIBER TECHNOLOGIES, INC.

(formerly ECO TEK 360, INC. and subsidiaries)

Condensed Consolidated Statements of Cash flows

For the three months ended June 30, 2022 and 2021

(Unaudited)

	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (income)	$	190,324		$	(28,563	)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Change in fair value of derivative liabilities		(478,754	)		(157,825	)
Conversion of notes payable to equity		7,186
Depreciation - Property and equipment		24,972			24,972
Amortization - Intangible assets		33,998			33,998
Stocks Issued for Services		-			10,000
Changes in operating assets and liabilities:
Bank Indebtedness		(2,455	)
Expense paid for subsidiary		-			-
Advances		(325,000	)
Prepaid interest and deposits		-			(125	)
Accounts payable and accrued expenses		(37,711	)		(80,571	)
Accrued interest		113,647			41,118
Net cash used in operating activities	$	(473,793	)	$	(156,996	)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances from related party		-			-
Acquisition of equipment		(4,022	)		-
Net cash used in investing activities		(4,022	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties		33,439			150,164
Proceeds from stock warrants		60,000			-
Proceeds from issuance of common stock		55,221
Net proceeds from convertible notes		354,777
Net cash provided by financing activities		503,437			150,164
Net change in cash and cash equivalents		25,622			(6,832	)
Cash and cash equivalents - beginning of period		-			8,548
Cash and cash equivalents - end of period	$	25,622		$	1,716
Supplemental Cash Flow Disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Non-Cash Investing and Financing Activity:
Shares issued for convetible notes settlement	$	-		$	-

 The accompanying notes are an integral part of these consolidated financial statements.

6

GLOBAL FIBER TECHNOLOGIES, INC.

(FORMERLY ECO TEK 360, INC.)

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

(Unaudited)

NOTE 1 - DESCRIPTION OF BUSINESS AND GOING CONCERN

Global Fiber Technologies, Inc. (“the Company”) was incorporated in Nevada on March 25, 2005. As of June 30, 2022 and December 31, 2021, the Company had 2,500,000,000 shares of authorized common stock.

The Company created a new subsidiary, ECO CHAIN 360, Inc. in November 2018 for the purpose of operating as an intermediary providing an expedited trading platform for buyers and sellers to efficiently consummate fiber transactions. The Company owns 51% of ECO CHAIN 360, Inc. ECO CHAIN 360, Inc. has had no operations to date nor did it have assets or liabilities as of March 31, 2022 and December 31, 2021, respectively.

On June 18, 2019, the Company completed its acquisition of assets from AH Originals, Inc. (“AHO”), a corporation controlled by the same owner group of Global Fiber Technologies, Inc., for the consideration of 6,400,000 shares of common stock of the Company to be issued and the issuance of a promissory note of $447,150 that bears 3% interest per annum and have a one-year term with eight options to extend the maturity date for three-month periods. In addition, the Company issued to AHO 200,000 common shares of Authentic Heroes, Inc. (“AHI”), a subsidiary created by the Company, to hold the purchased assets. AHI has commenced minimal operations during the six months period ending June 30, 2022.

On January 27, 2022, Authentic Heroes, Inc. entered a joint venture with Maestro entertainment Corp. (“Maestro) and form a joint venture enterprise with a business name “Apogee Music and Entertainment”. The venture business purpose will be to manufacture, distribute, market and sell sound recordings solely in the form of long-playing vinyl music records through traditional brick and mortar retail locations in and throughout the United States of America, by means of direct-to-consumer retail sales initiated through a range of media platforms broadcasting in and directed to consumers. Both authentic Heroes and Maestro are to contribute $350,000 each as capital for the venture.

On March 29, 2022 Authentic Heroes, Inc entered into joint venture agreement with InvenTel.tv LLC to enter into association of mutual benefit and agree to jointly invest and set up a joint venture enterprise for the purpose of music creation and distribution of genre based music and music by individual artists utilizing the Maestro entertainment catalogue. The term of the venture will begin March 29, 2022 for the period of 10 years or upon mutually agreeing to terminate or sell the joint venture company with repayment of all debts then owed. In connection with this joint venture, the Company advanced InvenTel tv. LLC $325,000 as an  advances to purchase raw materials for reproducing Vinyl records for music rights obtained by Authentic heroes.

On April 18, 2022, Authentic Heroes Inc. entered into a joint venture agreement with N.S.UC. Entertainment Group, LLC and created a Limited Liability Corporation Above the Beats Entertainment dba ATB Entertainment, under the operating agreement to engage in various activities in the industry of the music including but not limited to live concerts, podcasts, Non-Fungible Tokens, physical memorabilia utilizing patent protected manufacturing processes, and the licensing of talent within the music industry. Authentic Heroes will hold 70% interest in the Joint venture. As of June 30, 2022, there are significant activities with the Joint Venture.

On May 2, 2022, Authentic Heroes, Inc. (“Authentic Heroes”), a wholly owned subsidiary of Global Fiber Technologies, Inc., (the “Company”), entered into a License Agreement (the “License Agreement”) with the Company’s Chief Executive Officer and Director, Paul Serbiak (“Serbiak”).

Pursuant to the License Agreement, Serbiak agreed to provide Authentic Heroes with an exclusive license to use certain of Serbiak’s intellectual property rights, including Patent No. US 10,781,539 B2 entitled “AUTHENTICATABLE ARTICLES, FABRIC AND METHOD OF MANUFACTURE” and of the invention therein described, for products in the sports and music memorabilia business.

In exchange for such license, Authentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay Serbiak royalties of 1% of the revenue generated from the sale of the products amounting to at least $3,000,000 in revenue at year three of the License Agreement and another 1% of the revenue generated from the sale of the products amounting to at least $10,000,000 in revenue at year five (5) of the License Agreement. If Authentic Heroes fails to achieve at least $3,000,000 in revenue at year three or $10,000,000 in revenue at year five from this date of the License Agreement, then the exclusive license shall be a non-exclusive license.

7

Basis of Presentation: Unaudited Interim Financial Information

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period.

Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures are adequate to make the interim information presented not misleading.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Report on Form 10-K/A filed on April 15, 2022, for the years ended December 31, 2021, and 2020.

Going Concern

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles, which contemplates continuation of the Company as a going concern. The Company has an accumulated deficit of $35,032,206 and $35,222,530 as June 30, 2022, and December 31, 2021, respectively. In addition, as of June 30, 2022, and December 31, 2021, the Company had a working capital deficit of $3,385,594 and $3,853,273, respectively, with limited cash resources available. Consequently, the aforementioned items raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to raise additional debt or equity and continue to settle obligations by issuing stock. Management plans to continue to raise additional debt and equity until the Company has positive cash flows from an operating company. If the Company is unable to obtain additional funds when they are required or if the funds cannot be obtained on favorable terms, management may be required to restructure the Company or cease operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries, ECO CHAIN 360, Inc. which is 51% owned. All significant intercompany accounts and transactions have been eliminated. As noted above in Note 1 ECO CHAIN 360, Inc., had no operations, assets or liabilities as of June 30, 2022, and December 31, 2021. Because of this, a non-controlling interest is not reflected in these financial statements. In addition, the Company has consolidated Authentic Heroes, Inc., Inc. of which the Company owns 80%.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and investments in money market funds. The Company considers all highly liquid instruments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.

Advances

Advances made to the parties in a Joint Venture as part of company’s initial investment. Advances as of June 30, 2022, and December 31, 2021, $325,000 and 0 respectively.  Advances as of June 30, 2022, will be utilized to purchase raw materials for reproducing Vinyl records for music rights obtained by Authentic heroes. 

8

Equipment

Property and equipment are stated at cost. Costs of replacements and major improvements are capitalized, and maintenance and repairs are charged to operations as incurred. Depreciation expense is provided primarily by the straight-line method over the estimated useful lives of the assets as follows:

Equipment	5 Years
Furniture and Fixtures	7 Years
Forklift	3 Years

	June 30, 2022			December 31, 2021
Furniture and Equipment	$	220,420		$	216,398
Forklift		20,433			20,433
		239,831			2,366,818
Less accumulated depreciation		(149,387	)		(124,415	)
	$	91,466		$	112,416

Depreciation expense amounted to $58,970 and $58,970 for the six months ended June 30, 2022 and 2021, respectively.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the six months ended June 30, 2022, and 2021, no impairment losses have been identified.

Intangible Assets

The Company accounts for intangible assets (including trademarks and website) in accordance with ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted.

9

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets at June 30, 2022 and December 31, 2021.

	June 30, 2022			December 31, 2021
Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(120,628	)		(86,630	)
	$	27,468		$	61,466

Amortization expense amounted to $33,998 and $307  for the three months ended June 30, 2022 and December 31, 2021, respectively.

Prepaid interest and deposits

Prepaid interest and deposits consist of prepaid consulting fees, OTC market annual fees and license agreement. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 - Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

Accounts Receivable

Accounts receivables are recorded in accordance with ASC 310, “Receivables.” Accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

Income Taxes

Income taxes are accounted for under the asset and liability method as stipulated by ASC 740 “Income Taxes.” 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 carry forwards. 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. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management’s view it is more likely than not that such deferred tax asset will be unable to be utilized.

10

The Company adopted certain provisions under ASC Topic 740, which provide interpretative guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Effective with the Company’s adoption of these provisions, interest related to the unrecognized tax benefits is recognized in the financial statements as a component of income taxes.

In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated.

As of June 30, 2022, and December 31, 2021, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2017 through 2021.

Stock-based Compensation

We account for stock-based awards at fair value on the date of grant and recognize compensation over the service-period that they are expected to vest. We estimate the fair value of stock options and stock purchase warrants using the Black-Scholes option pricing model. The estimated value of the portion of a stock-based award that is ultimately expected to vest, taking into consideration estimated forfeitures, is recognized as expense over the requisite service periods. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period, of other comparative securities, equal to the weighted average life of the options. The estimate of stock awards that will ultimately vest requires judgment, and to the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a cumulative adjustment to compensation expenses and recorded in the period that estimates are revised.

Beneficial Conversion Feature

For conventional convertible debt where the rate of conversion is below market value, the Company records any “beneficial conversion feature” (“BCF”) intrinsic value as additional paid in capital and related debt discount.

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument. The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Debt Issue Costs

The Company may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations as amortization of debt discount.

Original Issue Discount

If debt is issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized over the life of the debt to the statement of operations as amortization of debt discount. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Use of Accounting 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the valuation of stock-based awards issued and derivatives embedded in financial instruments. Estimates are used in the determination of depreciation, the valuation of non-cash issuances of common stock, stock options and warrants, valuing convertible notes for beneficial conversion features, among others.

11

Fair Value

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level 1-Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2-Significant other observable inputs that can be corroborated by observable market data; and

Level 3-Significant unobservable inputs that cannot be corroborated by observable market data.

The carrying amounts of cash, accrued compensation, accounts payable and other liabilities, accrued interest payable, and short-term portion of notes payable approximate fair value because of the short-term nature of these items.

Concentration of Credit Risk

The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The Company maintains cash balances at financial institutions that are insured by the FDIC. On June 30, 2022, and December 31, 2021, the Company had no amounts in excess of the FDIC limit.

New Accounting Pronouncements

In July 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update addresses several aspects of the accounting for nonemployee share-based payment transactions and expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The main provisions of the update change the way nonemployee awards are measured in the financial statements. Under the simplified standards, nonemployee options will be valued once at the date of grant, as compared to at each reporting period end under ASC 505-50. At adoption, all awards without established measurement dates will be revalued one final time, and a cumulative effect adjustment to retained earnings will be recorded as the difference between the pre-adoption value and new value. Companies will be permitted to make elections to establish the expected term and either recognize forfeitures as they occur or apply a forfeiture rate. Compensation expense recognition using a graded vesting schedule will no longer be permitted. This pending content is the result of the FASB’s Simplification Initiative, to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Because the Company does not currently have any outstanding awards to non-employees for which a measurement date has not been established the adoption of ASU 2018-07 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts for non-employee compensation in the future.

In January 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842, which amends ASC Topic 842. Among other things, the new standard requires us to recognize a right of use asset and a lease liability on our balance sheet for leases. It also changes the presentation and timing of lease-related expenses. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect this guidance may have on its financial position, results of operations, comprehensive income, cash flows and disclosures.

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In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) intended to improve financial reporting around leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets - referred to as “lessees”- to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. For public companies, the standard is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Earlier adoption is permitted for any annual or interim period for which financial statements have not yet been issued. The Company adopted this ASU beginning on January 1, 2019, and will utilize the modified retrospective transition approach, as prescribed within this ASU. The adoption of ASC 842 did not have a material effect on the Company’s financial statements.

Reclassifications

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.

NOTE 3 - CAPITAL STOCK

Preferred Stock

The Company has designated a “Class B Convertible Preferred Stock” (the “Class B Preferred”). The number of authorized shares totals 1,000,000 and the par value is $0.001 per share. The Class B Preferred shareholders vote together with the common stock as a single class. The holders of Class B Preferred are entitled to receive all notices relating to voting as are required to be given to the holders of the Common Stock. The holders of shares of Class B Preferred shall be entitled to 10,000 votes per share. The Class B Preferred Stock will have the rights to liquidation as all classes of the Common Stock of the Company. The Class B Preferred stockholders are entitled to receive non-cumulative dividends at the rate of 8% per annum and are accrued daily. The Class B Preferred Stock shall be redeemed by the Corporation for 100% of the original purchase price plus the amount of cash dividends accrued on the earlier of 6 months from the date of issuance, or the date that the Corporation received its funding from any outside source in conjunction with a merger, reverse merger or any change of control. In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holders of the Class B Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any assets of the Corporation to the holders of the Common Stock, the amount of $0.035 per share plus any and all accrued but unpaid dividends.

Common Stock

As of June 30, 2022, and December 31, 2021, the Company had 1,505,431,849 and 1,450,210,322 shares of its $0.001 par value common stock issued and outstanding, respectively.

During the six months ended June 30, 2022, the company issued 39,582,832 shares to convert notes payable valued at $354,777 including accrued interest.

During the six months ended June 30, 2021, the Company issued 1,000,000 shares of common stocks for services rendered valued at $10,000.

NOTE 4 - NOTES PAYABLE

Unsecured Notes Payable

The balances of unsecured notes as of June 30, 2022 and December 31, 2021, was $257,995 and $274,852, balances include accrued interest of $36,024 and 28,961as of June 30, 2022 and December 31, 2021.Unsecured promissory notes are notes received from individual accredited investors from November 2014 to 2017 and interest accrued at 5% except for two notes amounting to $25,000 which is non-interest-bearing note.

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Convertible Notes Payable - related party

In August 2015, the Company issued an unsecured promissory note to an investor in the amount of $50,000, convertible to common stock at $1.00 per share. The note bears an interest rate of 8% per annum and matured on August 8, 2016. The note is currently unpaid and in default. The note does not contain a beneficial conversion feature. The balance of this note plus accrued interest totals were $84,568 and $78,568 at June 30,2022 and December 31, 2021. Accrued interest included in the balances was $34,568,568 and $28,568 for June 30, 2022, and December 31, 2021 respectively.

Promissory Notes Payable - related party

On June 18, 2019, the Company issued a promissory note at a principal amount of $447,150 as part of the consideration for the acquisition of assets from AH Originals, Inc., a corporation controlled by the same owner group of Global Fiber Technologies, Inc. The promissory note bears 3% interest per annum and have a one-year term with eight options to extend the maturity date for three-month periods. The balance of this note, net of note discount of $175,936 plus accrued interest totals was $382,880 and $376,014 as of June 30, 2022, and December 31, 2021 respectively.

Convertible Notes Payable

During the six months ended June 30, 2022, the company converted a total $ 162,407 convertible notes into 15,638,695 common shares with market value of $62,409. Outstanding balance of notes payable and accrued interest was $363,123 as of June 30, 2022, includes accrued interest of $112,130 as of June 30, 2022.

There was no conversion of notes during the first quarter ending June 30, 2021.

NOTE 5 - RELATED PARTY TRANSACTIONS

During the six months period ending June 30, 2022, and 2021 net cash proceeds $33,439 and 150,164 respectively, was received from related party, proceeds used for various operating expenses.

NOTE 6 - COMMITMENTS AND CONTINGENCIES

Covid 19

A novel strain of coronavirus (“Covid-19”) emerged globally in December 2019 and has been declared a pandemic. The extent to which Covid-19 will impact our customers, business, results and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this time. While the Company’s day-to-day operations beginning March 2020 have been impacted, we have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings.

That said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and agreements.

NOTE 7 - NET LOSS PER SHARE

Potentially dilutive securities are excluded from the calculation of net loss per share when their effect would be anti-dilutive. For all periods presented in the consolidated financial statements, all potentially dilutive securities have been excluded from the diluted share calculations as they were anti-dilutive as a result of the net losses incurred for the respective periods. Accordingly, basic shares equal diluted shares for all periods presented.

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Potentially dilutive securities were comprised of the following:

	June 30, 2022		December 31, 2021
Warrants		11,000,000		1,150,363
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		198,854,201		154,496,946
		212,554,201		158,347,309

NOTE 8 - SUBSEQUENT EVENTS

Subsequent to June 30, 2022, the Company borrowed an additional $270,000 in convertible promissory notes.

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

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our consolidated unaudited financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

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

As used in this quarterly report, the terms “we”, “us”, “our company”, mean Global Fiber Technologies, Inc. a Nevada corporation, and our wholly-owned subsidiaries Eco Chain 360, Inc. and Authentic Heroes, Inc., unless otherwise indicated.

General Overview

Global Fiber Technologies, Inc. was incorporated in Nevada on March 25, 2005, under the name “Premier Publishing Group, Inc.”. Originally formed as a publishing company, our company ceased publishing operations in or around 2007.

On May 28, 2019, we entered into an asset purchase agreement (the “Purchase Agreement”) with AH Originals, Inc. (“AH”), pursuant to which we will acquire from AH certain assets including: equipment (which includes a Della’ Orco Sample Line, Electro Steam Boiler/Steamer and Schulz 5 HP Condenser), inventory, materials, intellectual property (including PCT/US2018/047918 - Authenticatable Articles, Fabric and Method of Manufacture, 16/311,095 - Authenticatable Articles, Fabric and Method of Manufacture, as well as the rights the trademarks, trade names, logos, etc. For “Authentic Heroes”, “Feel the Bond”, and “Event Worn Reborn”), along with all domain names of AH. The purchase will be paid through the issuance of 6,400,000 shares of our common stock and 200,000 shares of common stock of Authentic Heroes, Inc. (a subsidiary created by the Company to receive and operate the purchased assets), and the remaining $480,000 will be paid through a promissory note at 3% interest with a three-year term.

The terms of the Purchase Agreement completed on June 18, 2019. The aggregate consideration was $447,150 payable via a promissory note at 3% interest with an amended loan term with an initial term of one-year and eight options for the noteholder to extend the maturity date for three-month periods, as opposed to the original three-year term. The balance of the purchase price was to be paid through the delivery to Seller of 6,400,000 shares of our common stock and 200,000 shares of common stock of Authentic Heroes, Inc. (a subsidiary created by our company to receive and operate the purchased assets). Our company did not assume any liabilities of AH other than the lease for the facility where the equipment purchased is located.

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On July 17, 2019 Authentic Heroes Inc., our majority owned subsidiary entered into a “merchandise license agreement” with IMG/Football Greats Alliance whereby Authentic Heroes will make authenticated replicas of “game worn” jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On September 21^st, of 2020, Authentic Heroes Inc. signed a license Yungblud and Bravado/Universal Music Group to will make authenticated replicas of “concert worn” jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On April 18, 2022, Authentic Heroes Inc. entered into a joint venture agreement with N.S.UC. Entertainment Group, LLC and created a Limited Liability Corporation Above the Beats Entertainment dba ATB Entertainment, under the operating agreement to engage in various activities in the industry of the music including but not limited to live concerts, podcasts, Non-Fungible Tokens, physical memorabilia utilizing patent protected manufacturing processes, and the licensing of talent within the music industry. Authentic Heroes will hold 70% interest in the Joint venture. As of June 30, 2022, there are significant activities with the Joint Venture.

We have never declared bankruptcy or been in receivership. We have earned minimal revenues and have limited cash on hand. We have sustained losses since inception and have primarily relied upon the sale of our securities and loans from related parties for funding.

Our Current Business

We are currently in the development stage. Our business plan includes creating branded and authenticated replicas from the textile fibers of “event worn” apparel, formerly worn by celebrities within the music and sports industries. We have achieved this milestone and are in the process of creating commercial opportunities utilizing our process and trade secrets.

We are also in the process of printing Vinyl Records from a catalogue of 17,000 Master Recordings in Joint Venture with Maestro Entertainment. We have bought the raw materials necessary to create vinyl records and we are in the process of seeking out purchase orders for a music compilation that has been completed and ready to distribute into both brick-and-mortar retail stores as well as selling directly from our e-commerce site.

 In addition, we anticipate in the future when finances allow to operate a fiber rejuvenation facility. the plans are to  offer branded fabrics, apparel and uniforms to the corporate, hotel, hospital and military markets. We will achieve this by utilizing a patented and proprietary process for rejuvenating textile waste into high quality fabrics and apparel.

On July 17, 2019 Authentic Heroes Inc., our majority owned subsidiary entered into a “merchandise license agreement” with IMG/Football Greats Alliance whereby Authentic Heroes will make authenticated replicas of “game worn” jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On December 1^st 2019, Authentic Heroes signed a license agreement with Universal Music Group/Bravado and the Hip Hop group “RUN DMC. Authentic Heroes is currently working with Bravado and RUN DMC to monetize the opportunity with both digital and physical opportunities. Terms of the deal were deemed and implied confidential by the contract.

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On September 21^st, of 2020, Authentic Heroes Inc. signed a license Yungblud and Bravado/Universal Music Group to will make authenticated replicas of “concert worn” jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

The company has also completed the coding of three  separate smart contracts based on the Ethereum Blockchain  The smart contracts ERC 721, 721a and ERC 1155 are to be used in conjunction with the sale of both physical and virtual items in order to create the authentication, provenance and immutability of the products it will be offering including event worn clothing under the taglines of “Made from The Original” and “Event Worn ReBorn”. It will also be the Smart Contract for the Company’s future offering of Non-Fungible Tokens (“NFTS”)

On May 2, 2022, Authentic Heroes, Inc. (“Authentic Heroes”), a wholly owned subsidiary of Global Fiber Technologies, Inc., (the “Company”), entered into a License Agreement (the “License Agreement”) with the Company’s Chief Executive Officer and Director, Paul Serbiak (“Serbiak”).

Pursuant to the License Agreement, Serbiak agreed to provide Authentic Heroes with an exclusive license to use certain of Serbiak’s intellectual property rights, including Patent No. US 10,781,539 B2 entitled “AUTHENTICATABLE ARTICLES, FABRIC AND METHOD OF MANUFACTURE” and of the invention therein described, for products in the sports and music memorabilia business.

In exchange for such license, Authentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay Serbiak royalties of 1% of the revenue generated from the sale of the products amounting to at least $3,000,000 in revenue at year three of the License Agreement and another 1% of the revenue generated from the sale of the products amounting to at least $10,000,000 in revenue at year five (5) of the License Agreement. If Authentic Heroes fails to achieve at least $3,000,000 in revenue at year three or $10,000,000 in revenue at year five from this date of the License Agreement, then the exclusive license shall be a non-exclusive license.

Results of Operations

The following summary of our results of operations, for the six months ended June 30, 2022, should be read in conjunction with our financial statements, as included in this Form 10-Q.

Comparative six months period ending June 30, 2022 and 2021 for revenues and operating expenses.

	2022			2021			Change			%
Revenue	$	-		$	193		$	193			-100	%
Cost of Revenue		-			(2,249	)		2,249			-100	%
Operating Expenses
General and administrative		(52,281	)		(74,241	)		21,960			-29.58	%
Depreciation and amortization		(58,970	)		(58,970	)		-			0.00	%
Professional Fees		(51,349	)		-			(51,349	)		-100	%
Stock based compensation					(10,000	)		10,000			100	%
Gain from extinguishment of debt		15,856			-			15,856			-100	%
Loss (gain) on derivative valuation		478,754			157,825			320,929			203.34	%
Interest and Financing cost		(35,102	)		(41,121	)		6,019			-14.64	%
Interest expense related parties		(102,834	)		-			(102,834	)		-100	%
Other expense		(3,750	)		-			(3,750	)		-100	%
Net Income (Loss)		190,324			(28,563	)

For the six months ended June 30, 2022, we have no revenues and in 2021 revenue was minimal this is primarily due to company refocusing its operations toward the new business with Authentic Heroes and NFTS. Our operating expense for the six months ended June 30, 2022, compared to 2021, have increase by $19,389 or 14%. This is primarily due to various Professional and consulting fees incurred during the six months period amounting to approximately $51,349. We did not incur such fees in the previous year.

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Other Income consist of derivative valuation gain of $478,754 and $157,825 for the six months period ending June 30, 2022, and 2021 respectively. We also recognized gain from extinguishing of convertible notes because of conversion to common stock.

Liquidity and Capital Resources

The following table provides selected financial data about our company as of June 30, 2022 and December 31, 2021, respectively.

Working Capital

	June 30 2022			December 31, 2021			Change			%
Current Assets	$	350,622		$	-		$	(6,479	)		100	%
Current Liabilities	$	(3,736,216	)	$	(3,853,273	)		(117,057	)		(13.92	)%
Net working capital deficit	$	(3,385,594	)		(3,853,273	)	$	467,679			(12.14	)%

Our working capital deficit decreased as of June 30, 2022, as compared to December 31, 2021, due mainly to the decrease in the valuation of derivative liabilities.

Cash Flows

	Six Months Ended
	June 30,
	2022			2021			Change			%
Cash Flows used in Operating Activities	$	(473,793	)	$	(156,996	)	$	(316,797	)		(201	)%
Cash Flows used in Investing Activities	$	-			-			-			-
Cash Flows provided by Financing Activities	$	503,437			150,164			(353,273	)		(235	)%
Net Change in Cash During Period	$	25,622			(6,832	)		(6,832	)		(475	)%

Cash Flow from Operating Activities

During the six months ended June 30, 2022

The net cash used in operating activities for the six months ended June 30, 2022 of $473,793 was attributed by the total net income of $190,324, offset by gain in change in derivative liability of $478,754 and decrease by increase in Advances $325,000.

Cash Flow from Investing Activities

The Company use $4,022 to purchased office equipment in June 2022 and did not use any funds for investing activities during the six months ended June 30, 2021.

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Cash Flow from Financing Activities

Net cash from financing activities was $503,437 for the six months ended June 30, 2022. Due to proceeds from convertible notes $354,777, Proceeds received from accredited investors for purchase of warrants to purchase common stocks $60,000 and proceeds of $33,439 from related parties. Previous year ending June 30, 2021 period $20,000 proceeds received from related parties.

Off-Balance Sheet Arrangements

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

The report of our auditors on our audited financial statements for the fiscal year ended December 31, 2021 and 2020, contains a going concern qualification as we have suffered losses since our inception. We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Limited Operating History; Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage company and have not generated any revenues from operations to fully implement our business plan. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, and competition from larger organizations. We will require equity and/or debt financing to provide for the capital required to implement our plans. We will require additional funds to operate for the next year.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is 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 Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2022. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses:

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The specific material weakness identified by our management was ineffective controls over certain aspects of the financial reporting process because of a lack of a sufficient complement of personnel with a level of accounting expertise and an adequate supervisory review structure that is commensurate with our financial reporting requirements and inadequate segregation of duties. 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 would not be prevented or detected on a timely basis.

We expect to be materially dependent upon a third party to provide us with accounting consulting services for the foreseeable future. Until such time as we have a chief financial officer with the requisite expertise in U.S. GAAP, there are no assurances that the material weaknesses in our disclosure controls and procedures and internal control over financial reporting will not result in errors in our financial statements which could lead to a restatement of those financial statements.

Changes in Internal Controls

There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

As of the date of this filing, the Company is a party to three pending litigation matters.

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent. The company does not operate out of the premises in question and has never signed any leases or other documents with the plaintiff. A judgment of eviction was entered, but The company does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction. The plaintiff is also seeking unpaid rent in the amount of $26,595.

The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to her employment with Avani Holdings LLC. The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $15,000.

The third matter is entitled William Corso v. Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to his employment with Avani Holdings LLC. The Company never hired Mr. Corso and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $40,000.

Item 1A. Risk Factors

As a “smaller reporting company”, we are not required to provide the information required by this Item.

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

None.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit Number	Description	Incorporated by Reference
		Form	Exhibit	Filing Date
(3)	(i) Articles of Incorporation (ii) Bylaws
3.1	Articles of Incorporation, as filed with the Nevada Secretary of State	SB-2	3.1	November 29, 2005
3.2	Certificate of Designations, Rights and Preferences of the Class C Preferred Stock	8-K	10.5	August 10, 2010
3.3	Certificate of Amendment filed by Global Fashion Technologies, Inc. with the Secretary of the State of Nevada on August 6, 2014	8-K	5.1	August 7, 2014
3.4	Certificate of Change Pursuant to Nevada Revised Statutes Section 78.209, as filed with the Secretary of the State of Nevada on August 6, 2014	8-K	5.2	August 7, 2014
3.5	Certificate of Amendment filed with the Secretary of the State of Nevada on January 10, 2017	8-K	5.1	January 23, 2017
3.6	Certificate of Amendment filed with the Secretary of the State of Nevada on April 18, 2019.	8-K	5.1	May 7, 2019
3.7	By-Laws adopted February 14, 2017	8-K		February 22, 2017
(10)	Material Contracts
10.1	May 28, 2019 Asset Purchase Agreement between the Company and AH Originals, Inc.	8-K	10.1	May 29, 2019
(14)	Code of Ethics
14.1	Code of Ethics	10-KSB	14.1	April 14, 2008
(21)	Subsidiaries of Registrant
21.1	Trident Merchant Group, Inc., a Nevada corporation (wholly owned)
21.2	Progressive Fashions Inc., a Nevada corporation (wholly owned)
21.3	Leading Edge Fashion, LLC (majority owned)
21.4	Pure361, LLC (majority owned)
21.5	Global Fiber Technologies, Inc. (majority owned)
(31)	Rule 13a-14 (d)/15d-14d) Certifications
31.1*	Section 302 Certification by the Principal Executive Officer
31.2*	Section 302 Certification by the Principal Financial Officer and Principal Accounting Officer
(32)	Section 1350 Certifications
32.1**	Section 906 Certification by the Principal Executive Officer
32.2**	Section 906 Certification by the Principal Financial Officer and Principal Accounting Officer
101**	Interactive Data File
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.

** Furnished herewith

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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.

	GLOBAL FIBER TECHNOLOGIES, INC.
	(Registrant)
Dated: August 19, 2022	/s/ Christopher Giordano
	Christopher Giordano
	President
	(Principal Executive Officer)
Dated: August 19, 2022	/s/ Paul Serbiak
	Paul Serbiak
	Chief Executive Officer
	(Principal Financial Officer and Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher Giordano, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Global Fiber Technologies, 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.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
5.	I have disclosed, based on my 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.

August 19, 2022	/s/ Christopher Giordano
	Christopher Giordano
	President
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Serbiak, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Global Fiber Technologies, 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.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. I have disclosed, based on my 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.

Dated: August 19, 2022	/s/ Paul Serbiak
	Paul Serbiak
	Chief Executive Officer
	(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Christopher Giordano, President, of Global Fiber Technologies, Inc., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the quarterly report on Form 10-Q of Global Fiber Technologies, Inc. for the period ended June 30, 2022 (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 Global Fiber Technologies, Inc.

Dated: August 19, 2022	/s/ Christopher Giordano
	Christopher Giordano
	President
	(Principal Executive Officer)

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

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Paul Serbiak, Chief Executive Officer, of Global Fiber Technologies, Inc., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the quarterly report on Form 10-Q of Global Fiber Technologies, Inc. for the period ended June 30, 2022 (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 Global Fiber Technologies, Inc.

Dated: August 19, 2022	/s/ Paul Serbiak
	Paul Serbiak
	Chief Executive Officer
	(Principal Financial Officer and Principal Accounting Officer)

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

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 15, 2022
Cover [Abstract]
Entity Registrant Name	GLOBAL FIBER TECHNOLOGIES, INC.
Entity Central Index Key	0001338929
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		1,505,431,849
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-52047
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	11-3746201
Entity Interactive Data Current	Yes
Entity Address Address Line 1	50 Division Street Suite 501
Entity Address City Or Town	Somerville
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	08876
City Area Code	732
Local Phone Number	695-4389

XML

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 25,622	$ 0
Prepaid interest and deposits	0	0
Advances	325,000	0
Total Current Assets	350,622	0
Property and equipment, net	91,466	112,416
Intangible assets	27,468	61,466
TOTAL ASSETS	469,556	173,882
Current Liabilities
Bank overdraft		2,455
Accounts payable and accrued liabilities	237,141	274,852
Accrued compensation	501,250	501,250
Unsecured notes and accrued interest payable	257,527	250,464
Convertible notes and accrued interest - net of debt discount of $24,000 and $52,720, respectively.	784,193	429,416
Convertible notes and accrued interest - related party	84,568	78,568
Promissory note and accrued interest - related party	470,848	376,014
Derivative liabilities	579,774	1,058,528
Advances from related parties	398,136	280,416
Related party loans and accrued interest	261,529	259,529
Self Liquidating Promissory Notes	161,250	157,500
Subscription payable	0	100,000
Current liabilities from discontinued operations	0	84,281
Total Current Liabilities	3,736,216	3,853,273
Stockholders' Deficit
Preferred stock, Class B, $0.001 par value, 1,000,000 shares authorized, 200,000 shares issued and outstanding	200	200
Common stock $0.001 par value, 2,500,000,000 shares authorized, 1,505,431,849 and 1,450,210,322 shares issued and outstanding.	1,505,431	1,450,210
Additional paid-in capital	30,259,915	30,092,729
Accumulated deficit	(35,032,206)	(35,222,530)
Stockholders' deficit	(3,266,660)	(3,679,391)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 469,556	$ 173,882

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Convertible notes and accrued interest - net of debt discount	$ 24,000	$ 52,720
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	200,000	200,000
Preferred stock, shares outstanding	200,000	200,000
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, shares issued	1,505,431,849	1,450,210,322
Common stock, shares outstanding	1,505,431,849	1,450,210,322

XML

Condensed Consolidated Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statement of Operations (Unaudited)
REVENUE	$ 0	$ 0	$ 0	$ 193
COST OF REVENUES	0	1,077	0	2,249
GROSS PROFIT (LOSS)	0	(1,077)	0	(2,056)
OPERATING EXPENSES
General and administrative	30,081	61,674	52,281	74,241
Depreciation and Amortization	29,485	29,485	58,970	58,970
Professional and Legal Fees	19,099	0	51,349	0
Officer salaries and compensation	0	10,000	0	0
Stock based compensation	0	0	0	10,000
Gain on extinguishment of debt - related party				0
Total Operating Expenses	78,665	101,159	162,600	143,211
LOSS FROM OPERATIONS	(78,665)	(102,236)	(162,600)	(145,267)
OTHER INCOME (EXPENSE)
(Income) Loss on change in fair value of derivative liabilities	(91,254)	86,082	478,754	(157,825)
Gain from extinguishment of debt	0	0	15,856	0
Interest expense and financing costs	(19,601)	(15,114)	(35,102)	30,052
Interest expense - related parties	(7,433)	(7,467)	(102,834)	11,069
Other expense-Funding Fees	(3,750)		(3,750)
Total other expense	(122,038)	63,501	352,924	(116,704)
NET INCOME (LOSS)	$ (200,703)	$ (38,735)	$ 190,324	$ (28,563)
Net loss per share	$ (0.0001)	$ (0.0000)	$ 0.0001	$ (0.0000)
Weighted average common shares outstanding	1,505,431,849	1,253,739,584	1,505,431,849	1,253,569,254

XML

Condensed Consolidated Statement of Stockholders' Deficit (Unaudited) - USD ($)	Total	Class B Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Dec. 31, 2020		200,000	1,253,239,584
Balance, amount at Dec. 31, 2020	$ (2,778,080)	$ 200	$ 1,253,239	$ 29,789,774	$ (33,821,293)
Cancellation of Shares	10,172				10,172
Balance, shares at Mar. 31, 2021		200,000	1,253,239,584
Balance, amount at Mar. 31, 2021	(2,767,908)	$ 200	$ 1,253,239	29,789,774	(33,811,121)
Balance, shares at Dec. 31, 2020		200,000	1,253,239,584
Balance, amount at Dec. 31, 2020	(2,778,080)	$ 200	$ 1,253,239	29,789,774	(33,821,293)
Net loss during the quarter	(28,563)
Balance, shares at Jun. 30, 2021		200,000	1,254,239,584
Balance, amount at Jun. 30, 2021	(2,796,643)	$ 200	$ 1,254,239	29,798,774	(33,849,856)
Balance, shares at Mar. 31, 2021		200,000	1,253,239,584
Balance, amount at Mar. 31, 2021	(2,767,908)	$ 200	$ 1,253,239	29,789,774	(33,811,121)
Issuance of shares for services, shares			1,000,000
Issuance of shares for services, amount	10,000		$ 1,000	9,000
Net loss during the quarter	(38,735)				(38,735)
Balance, shares at Jun. 30, 2021		200,000	1,254,239,584
Balance, amount at Jun. 30, 2021	(2,796,643)	$ 200	$ 1,254,239	29,798,774	(33,849,856)
Balance, shares at Dec. 31, 2021		200,000	1,450,210,322
Balance, amount at Dec. 31, 2021	(3,679,391)	$ 200	$ 1,450,210	30,092,729	(35,222,530)
Net loss during the quarter	391,027				391,027
Conversion of notes payable, shares			15,638,695
Conversion of notes payable, amount	62,407		$ 15,638	46,769
Stock warrants issued for cash	60,000			60,000
Balance, shares at Mar. 31, 2022		200,000	1,465,849,017
Balance, amount at Mar. 31, 2022	(3,165,957)	$ 200	$ 1,465,848	30,199,498	(34,831,503)
Balance, shares at Dec. 31, 2021		200,000	1,450,210,322
Balance, amount at Dec. 31, 2021	(3,679,391)	$ 200	$ 1,450,210	30,092,729	(35,222,530)
Net loss during the quarter	190,324
Balance, shares at Jun. 30, 2022		200,000	1,505,431,849
Balance, amount at Jun. 30, 2022	(3,266,660)	$ 200	$ 1,505,431	30,259,915	(35,032,206)
Balance, shares at Mar. 31, 2022		200,000	1,465,849,017
Balance, amount at Mar. 31, 2022	(3,165,957)	$ 200	$ 1,465,848	30,199,498	(34,831,503)
Net loss during the quarter	(200,703)				(200,703)
Stock warrants issued for cash	0
Issuance of shares for conversion of notes, shares			39,582,832
Issuance of shares for conversion of notes, amount	100,000		$ 39,583	60,417
Balance, shares at Jun. 30, 2022		200,000	1,505,431,849
Balance, amount at Jun. 30, 2022	$ (3,266,660)	$ 200	$ 1,505,431	$ 30,259,915	$ (35,032,206)

XML

Condensed Consolidated Statements of Cash flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (income)	$ 190,324	$ (28,563)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Change in fair value of derivative liabilities	(478,754)	(157,825)
Conversion of notes payable to equity	7,186
Depreciation - Property and equipment	24,972	24,972
Amortization - Intangible assets	33,998	33,998
Stocks Issued for Services	0	10,000
Changes in operating assets and liabilities:
Bank Indebtedness	(2,455)
Expense paid for subsidiary	0	0
Advances	(325,000)
Prepaid interest and deposits	0	(125)
Accounts payable and accrued expenses	(37,711)	(80,571)
Accrued interest	113,647	41,118
Net cash used in operating activities	(473,793)	(156,996)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances from related party	0	0
Acquisition of equipment	(4,022)	0
Net cash used in investing activities	(4,022)	0
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	33,439	150,164
Proceeds from stock warrants	60,000	0
Proceeds from issuance of common stock	55,221
Net proceeds from convertible notes	354,777
Net cash provided by financing activities	503,437	150,164
Net change in cash and cash equivalents	25,622	(6,832)
Cash and cash equivalents - beginning of period	0	8,548
Cash and cash equivalents - end of period	25,622	1,716
Supplemental Cash Flow Disclosures
Cash paid for interest	0	0
Cash paid for income taxes	0	0
Non-Cash Investing and Financing Activity:
Shares issued for convetible notes settlement	$ 0	$ 0

XML

DESCRIPTION OF BUSINESS AND GOING CONCERN

6 Months Ended

Jun. 30, 2022

DESCRIPTION OF BUSINESS AND GOING CONCERN

DESCRIPTION OF BUSINESS AND GOING CONCERN

NOTE 1 - DESCRIPTION OF BUSINESS AND GOING CONCERN

Global Fiber Technologies, Inc. (“the Company”) was incorporated in Nevada on March 25, 2005. As of June 30, 2022 and December 31, 2021, the Company had 2,500,000,000 shares of authorized common stock.

The Company created a new subsidiary, ECO CHAIN 360, Inc. in November 2018 for the purpose of operating as an intermediary providing an expedited trading platform for buyers and sellers to efficiently consummate fiber transactions. The Company owns 51% of ECO CHAIN 360, Inc. ECO CHAIN 360, Inc. has had no operations to date nor did it have assets or liabilities as of March 31, 2022 and December 31, 2021, respectively.

On June 18, 2019, the Company completed its acquisition of assets from AH Originals, Inc. (“AHO”), a corporation controlled by the same owner group of Global Fiber Technologies, Inc., for the consideration of 6,400,000 shares of common stock of the Company to be issued and the issuance of a promissory note of $447,150 that bears 3% interest per annum and have a one-year term with eight options to extend the maturity date for three-month periods. In addition, the Company issued to AHO 200,000 common shares of Authentic Heroes, Inc. (“AHI”), a subsidiary created by the Company, to hold the purchased assets. AHI has commenced minimal operations during the six months period ending June 30, 2022.

On January 27, 2022, Authentic Heroes, Inc. entered a joint venture with Maestro entertainment Corp. (“Maestro) and form a joint venture enterprise with a business name “Apogee Music and Entertainment”. The venture business purpose will be to manufacture, distribute, market and sell sound recordings solely in the form of long-playing vinyl music records through traditional brick and mortar retail locations in and throughout the United States of America, by means of direct-to-consumer retail sales initiated through a range of media platforms broadcasting in and directed to consumers. Both authentic Heroes and Maestro are to contribute $350,000 each as capital for the venture.

On March 29, 2022 Authentic Heroes, Inc entered into joint venture agreement with InvenTel.tv LLC to enter into association of mutual benefit and agree to jointly invest and set up a joint venture enterprise for the purpose of music creation and distribution of genre based music and music by individual artists utilizing the Maestro entertainment catalogue. The term of the venture will begin March 29, 2022 for the period of 10 years or upon mutually agreeing to terminate or sell the joint venture company with repayment of all debts then owed. In connection with this joint venture, the Company advanced InvenTel tv. LLC $325,000 as an  advances to purchase raw materials for reproducing Vinyl records for music rights obtained by Authentic heroes.

On April 18, 2022, Authentic Heroes Inc. entered into a joint venture agreement with N.S.UC. Entertainment Group, LLC and created a Limited Liability Corporation Above the Beats Entertainment dba ATB Entertainment, under the operating agreement to engage in various activities in the industry of the music including but not limited to live concerts, podcasts, Non-Fungible Tokens, physical memorabilia utilizing patent protected manufacturing processes, and the licensing of talent within the music industry. Authentic Heroes will hold 70% interest in the Joint venture. As of June 30, 2022, there are significant activities with the Joint Venture.

On May 2, 2022, Authentic Heroes, Inc. (“Authentic Heroes”), a wholly owned subsidiary of Global Fiber Technologies, Inc., (the “Company”), entered into a License Agreement (the “License Agreement”) with the Company’s Chief Executive Officer and Director, Paul Serbiak (“Serbiak”).

Pursuant to the License Agreement, Serbiak agreed to provide Authentic Heroes with an exclusive license to use certain of Serbiak’s intellectual property rights, including Patent No. US 10,781,539 B2 entitled “AUTHENTICATABLE ARTICLES, FABRIC AND METHOD OF MANUFACTURE” and of the invention therein described, for products in the sports and music memorabilia business.

In exchange for such license, Authentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay Serbiak royalties of 1% of the revenue generated from the sale of the products amounting to at least $3,000,000 in revenue at year three of the License Agreement and another 1% of the revenue generated from the sale of the products amounting to at least $10,000,000 in revenue at year five (5) of the License Agreement. If Authentic Heroes fails to achieve at least $3,000,000 in revenue at year three or $10,000,000 in revenue at year five from this date of the License Agreement, then the exclusive license shall be a non-exclusive license.

Basis of Presentation: Unaudited Interim Financial Information

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period.

Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes that the disclosures are adequate to make the interim information presented not misleading.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Report on Form 10-K/A filed on April 15, 2022, for the years ended December 31, 2021, and 2020.

Going Concern

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles, which contemplates continuation of the Company as a going concern. The Company has an accumulated deficit of $35,032,206 and $35,222,530 as June 30, 2022, and December 31, 2021, respectively. In addition, as of June 30, 2022, and December 31, 2021, the Company had a working capital deficit of $3,385,594 and $3,853,273, respectively, with limited cash resources available. Consequently, the aforementioned items raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management plans to raise additional debt or equity and continue to settle obligations by issuing stock. Management plans to continue to raise additional debt and equity until the Company has positive cash flows from an operating company. If the Company is unable to obtain additional funds when they are required or if the funds cannot be obtained on favorable terms, management may be required to restructure the Company or cease operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries, ECO CHAIN 360, Inc. which is 51% owned. All significant intercompany accounts and transactions have been eliminated. As noted above in Note 1 ECO CHAIN 360, Inc., had no operations, assets or liabilities as of June 30, 2022, and December 31, 2021. Because of this, a non-controlling interest is not reflected in these financial statements. In addition, the Company has consolidated Authentic Heroes, Inc., Inc. of which the Company owns 80%.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and investments in money market funds. The Company considers all highly liquid instruments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.

Advances

Advances made to the parties in a Joint Venture as part of company’s initial investment. Advances as of June 30, 2022, and December 31, 2021, $325,000 and 0 respectively.  Advances as of June 30, 2022, will be utilized to purchase raw materials for reproducing Vinyl records for music rights obtained by Authentic heroes. 

Equipment

Property and equipment are stated at cost. Costs of replacements and major improvements are capitalized, and maintenance and repairs are charged to operations as incurred. Depreciation expense is provided primarily by the straight-line method over the estimated useful lives of the assets as follows:

Equipment	5 Years
Furniture and Fixtures	7 Years
Forklift	3 Years

	June 30, 2022			December 31, 2021
Furniture and Equipment	$	220,420		$	216,398
Forklift		20,433			20,433
		239,831			2,366,818
Less accumulated depreciation		(149,387	)		(124,415	)
	$	91,466		$	112,416

Depreciation expense amounted to $58,970 and $58,970 for the six months ended June 30, 2022 and 2021, respectively.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the six months ended June 30, 2022, and 2021, no impairment losses have been identified.

Intangible Assets

The Company accounts for intangible assets (including trademarks and website) in accordance with ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted.

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets at June 30, 2022 and December 31, 2021.

	June 30, 2022			December 31, 2021
Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(120,628	)		(86,630	)
	$	27,468		$	61,466

Amortization expense amounted to $33,998 and $307  for the three months ended June 30, 2022 and December 31, 2021, respectively.

Prepaid interest and deposits

Prepaid interest and deposits consist of prepaid consulting fees, OTC market annual fees and license agreement. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 - Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

Accounts Receivable

Accounts receivables are recorded in accordance with ASC 310, “Receivables.” Accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

Income Taxes

Income taxes are accounted for under the asset and liability method as stipulated by ASC 740 “Income Taxes.” 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 carry forwards. 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. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management’s view it is more likely than not that such deferred tax asset will be unable to be utilized.

The Company adopted certain provisions under ASC Topic 740, which provide interpretative guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Effective with the Company’s adoption of these provisions, interest related to the unrecognized tax benefits is recognized in the financial statements as a component of income taxes.

In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated.

As of June 30, 2022, and December 31, 2021, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2017 through 2021.

Stock-based Compensation

We account for stock-based awards at fair value on the date of grant and recognize compensation over the service-period that they are expected to vest. We estimate the fair value of stock options and stock purchase warrants using the Black-Scholes option pricing model. The estimated value of the portion of a stock-based award that is ultimately expected to vest, taking into consideration estimated forfeitures, is recognized as expense over the requisite service periods. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period, of other comparative securities, equal to the weighted average life of the options. The estimate of stock awards that will ultimately vest requires judgment, and to the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a cumulative adjustment to compensation expenses and recorded in the period that estimates are revised.

Beneficial Conversion Feature

For conventional convertible debt where the rate of conversion is below market value, the Company records any “beneficial conversion feature” (“BCF”) intrinsic value as additional paid in capital and related debt discount.

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument. The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Debt Issue Costs

The Company may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations as amortization of debt discount.

Original Issue Discount

If debt is issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized over the life of the debt to the statement of operations as amortization of debt discount. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Use of Accounting 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the valuation of stock-based awards issued and derivatives embedded in financial instruments. Estimates are used in the determination of depreciation, the valuation of non-cash issuances of common stock, stock options and warrants, valuing convertible notes for beneficial conversion features, among others.

Fair Value

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level 1-Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2-Significant other observable inputs that can be corroborated by observable market data; and

Level 3-Significant unobservable inputs that cannot be corroborated by observable market data.

The carrying amounts of cash, accrued compensation, accounts payable and other liabilities, accrued interest payable, and short-term portion of notes payable approximate fair value because of the short-term nature of these items.

Concentration of Credit Risk

The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The Company maintains cash balances at financial institutions that are insured by the FDIC. On June 30, 2022, and December 31, 2021, the Company had no amounts in excess of the FDIC limit.

New Accounting Pronouncements

In July 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update addresses several aspects of the accounting for nonemployee share-based payment transactions and expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The main provisions of the update change the way nonemployee awards are measured in the financial statements. Under the simplified standards, nonemployee options will be valued once at the date of grant, as compared to at each reporting period end under ASC 505-50. At adoption, all awards without established measurement dates will be revalued one final time, and a cumulative effect adjustment to retained earnings will be recorded as the difference between the pre-adoption value and new value. Companies will be permitted to make elections to establish the expected term and either recognize forfeitures as they occur or apply a forfeiture rate. Compensation expense recognition using a graded vesting schedule will no longer be permitted. This pending content is the result of the FASB’s Simplification Initiative, to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Because the Company does not currently have any outstanding awards to non-employees for which a measurement date has not been established the adoption of ASU 2018-07 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts for non-employee compensation in the future.

In January 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842, which amends ASC Topic 842. Among other things, the new standard requires us to recognize a right of use asset and a lease liability on our balance sheet for leases. It also changes the presentation and timing of lease-related expenses. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect this guidance may have on its financial position, results of operations, comprehensive income, cash flows and disclosures.

In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) intended to improve financial reporting around leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets - referred to as “lessees”- to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. For public companies, the standard is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Earlier adoption is permitted for any annual or interim period for which financial statements have not yet been issued. The Company adopted this ASU beginning on January 1, 2019, and will utilize the modified retrospective transition approach, as prescribed within this ASU. The adoption of ASC 842 did not have a material effect on the Company’s financial statements.

Reclassifications

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.

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CAPITAL STOCK

6 Months Ended

Jun. 30, 2022

CAPITAL STOCK

CAPITAL STOCK

NOTE 3 - CAPITAL STOCK

Preferred Stock

The Company has designated a “Class B Convertible Preferred Stock” (the “Class B Preferred”). The number of authorized shares totals 1,000,000 and the par value is $0.001 per share. The Class B Preferred shareholders vote together with the common stock as a single class. The holders of Class B Preferred are entitled to receive all notices relating to voting as are required to be given to the holders of the Common Stock. The holders of shares of Class B Preferred shall be entitled to 10,000 votes per share. The Class B Preferred Stock will have the rights to liquidation as all classes of the Common Stock of the Company. The Class B Preferred stockholders are entitled to receive non-cumulative dividends at the rate of 8% per annum and are accrued daily. The Class B Preferred Stock shall be redeemed by the Corporation for 100% of the original purchase price plus the amount of cash dividends accrued on the earlier of 6 months from the date of issuance, or the date that the Corporation received its funding from any outside source in conjunction with a merger, reverse merger or any change of control. In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holders of the Class B Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any assets of the Corporation to the holders of the Common Stock, the amount of $0.035 per share plus any and all accrued but unpaid dividends.

Common Stock

As of June 30, 2022, and December 31, 2021, the Company had 1,505,431,849 and 1,450,210,322 shares of its $0.001 par value common stock issued and outstanding, respectively.

During the six months ended June 30, 2022, the company issued 39,582,832 shares to convert notes payable valued at $354,777 including accrued interest.

During the six months ended June 30, 2021, the Company issued 1,000,000 shares of common stocks for services rendered valued at $10,000.

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NOTES PAYABLE

6 Months Ended

Jun. 30, 2022

NOTES PAYABLE

NOTES PAYABLE

NOTE 4 - NOTES PAYABLE

Unsecured Notes Payable

The balances of unsecured notes as of June 30, 2022 and December 31, 2021, was $257,995 and $274,852, balances include accrued interest of $36,024 and 28,961as of June 30, 2022 and December 31, 2021.Unsecured promissory notes are notes received from individual accredited investors from November 2014 to 2017 and interest accrued at 5% except for two notes amounting to $25,000 which is non-interest-bearing note.

Convertible Notes Payable - related party

In August 2015, the Company issued an unsecured promissory note to an investor in the amount of $50,000, convertible to common stock at $1.00 per share. The note bears an interest rate of 8% per annum and matured on August 8, 2016. The note is currently unpaid and in default. The note does not contain a beneficial conversion feature. The balance of this note plus accrued interest totals were $84,568 and $78,568 at June 30,2022 and December 31, 2021. Accrued interest included in the balances was $34,568,568 and $28,568 for June 30, 2022, and December 31, 2021 respectively.

Promissory Notes Payable - related party

On June 18, 2019, the Company issued a promissory note at a principal amount of $447,150 as part of the consideration for the acquisition of assets from AH Originals, Inc., a corporation controlled by the same owner group of Global Fiber Technologies, Inc. The promissory note bears 3% interest per annum and have a one-year term with eight options to extend the maturity date for three-month periods. The balance of this note, net of note discount of $175,936 plus accrued interest totals was $382,880 and $376,014 as of June 30, 2022, and December 31, 2021 respectively.

Convertible Notes Payable

During the six months ended June 30, 2022, the company converted a total $ 162,407 convertible notes into 15,638,695 common shares with market value of $62,409. Outstanding balance of notes payable and accrued interest was $363,123 as of June 30, 2022, includes accrued interest of $112,130 as of June 30, 2022.

There was no conversion of notes during the first quarter ending June 30, 2021.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5 - RELATED PARTY TRANSACTIONS

During the six months period ending June 30, 2022, and 2021 net cash proceeds $33,439 and 150,164 respectively, was received from related party, proceeds used for various operating expenses.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 6 - COMMITMENTS AND CONTINGENCIES

Covid 19

A novel strain of coronavirus (“Covid-19”) emerged globally in December 2019 and has been declared a pandemic. The extent to which Covid-19 will impact our customers, business, results and financial condition will depend on current and future developments, which are highly uncertain and cannot be predicted at this time. While the Company’s day-to-day operations beginning March 2020 have been impacted, we have suffered less immediate impact as most staff can work remotely and can continue to develop our product offerings.

That said we have seen our business opportunities develop more slowly as business partners and potential customers are dealing with Covid-19 issues, working remotely and these issues are causing delays in decision making and finalization of negotiations and agreements.

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NET LOSS PER SHARE

6 Months Ended

Jun. 30, 2022

NET LOSS PER SHARE

NET LOSS PER SHARE

NOTE 7 - NET LOSS PER SHARE

Potentially dilutive securities are excluded from the calculation of net loss per share when their effect would be anti-dilutive. For all periods presented in the consolidated financial statements, all potentially dilutive securities have been excluded from the diluted share calculations as they were anti-dilutive as a result of the net losses incurred for the respective periods. Accordingly, basic shares equal diluted shares for all periods presented.

Potentially dilutive securities were comprised of the following:

	June 30, 2022		December 31, 2021
Warrants		11,000,000		1,150,363
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		198,854,201		154,496,946
		212,554,201		158,347,309

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 8 - SUBSEQUENT EVENTS

Subsequent to June 30, 2022, the Company borrowed an additional $270,000 in convertible promissory notes.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries, ECO CHAIN 360, Inc. which is 51% owned. All significant intercompany accounts and transactions have been eliminated. As noted above in Note 1 ECO CHAIN 360, Inc., had no operations, assets or liabilities as of June 30, 2022, and December 31, 2021. Because of this, a non-controlling interest is not reflected in these financial statements. In addition, the Company has consolidated Authentic Heroes, Inc., Inc. of which the Company owns 80%.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and investments in money market funds. The Company considers all highly liquid instruments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.

Advances

Advances made to the parties in a Joint Venture as part of company’s initial investment. Advances as of June 30, 2022, and December 31, 2021, $325,000 and 0 respectively.  Advances as of June 30, 2022, will be utilized to purchase raw materials for reproducing Vinyl records for music rights obtained by Authentic heroes. 

Equipment

Property and equipment are stated at cost. Costs of replacements and major improvements are capitalized, and maintenance and repairs are charged to operations as incurred. Depreciation expense is provided primarily by the straight-line method over the estimated useful lives of the assets as follows:

Equipment	5 Years
Furniture and Fixtures	7 Years
Forklift	3 Years

	June 30, 2022			December 31, 2021
Furniture and Equipment	$	220,420		$	216,398
Forklift		20,433			20,433
		239,831			2,366,818
Less accumulated depreciation		(149,387	)		(124,415	)
	$	91,466		$	112,416

Depreciation expense amounted to $58,970 and $58,970 for the six months ended June 30, 2022 and 2021, respectively.

The long-lived assets of the Company are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

During the six months ended June 30, 2022, and 2021, no impairment losses have been identified.

Intengible assets

The Company accounts for intangible assets (including trademarks and website) in accordance with ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate that the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including the identification of reporting units; assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to materially differ from such estimates and could also affect the determination of fair value and/or goodwill impairment at future reporting dates.

The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, either on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted.

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets at June 30, 2022 and December 31, 2021.

	June 30, 2022			December 31, 2021
Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(120,628	)		(86,630	)
	$	27,468		$	61,466

Amortization expense amounted to $33,998 and $307  for the three months ended June 30, 2022 and December 31, 2021, respectively.

Prepaid interest and deposite

Prepaid interest and deposits consist of prepaid consulting fees, OTC market annual fees and license agreement. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

The Company recognizes revenue from its contracts with customers in accordance with ASC 606 - Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.

Accounts Receivable

Accounts receivables are recorded in accordance with ASC 310, “Receivables.” Accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management’s estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

Income taxes

Income taxes are accounted for under the asset and liability method as stipulated by ASC 740 “Income Taxes.” 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 carry forwards. 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. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management’s view it is more likely than not that such deferred tax asset will be unable to be utilized.

The Company adopted certain provisions under ASC Topic 740, which provide interpretative guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Effective with the Company’s adoption of these provisions, interest related to the unrecognized tax benefits is recognized in the financial statements as a component of income taxes.

In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated.

As of June 30, 2022, and December 31, 2021, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2017 through 2021.

Stock-based Compensation

We account for stock-based awards at fair value on the date of grant and recognize compensation over the service-period that they are expected to vest. We estimate the fair value of stock options and stock purchase warrants using the Black-Scholes option pricing model. The estimated value of the portion of a stock-based award that is ultimately expected to vest, taking into consideration estimated forfeitures, is recognized as expense over the requisite service periods. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period, of other comparative securities, equal to the weighted average life of the options. The estimate of stock awards that will ultimately vest requires judgment, and to the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a cumulative adjustment to compensation expenses and recorded in the period that estimates are revised.

Beneficial Conversion Feature

For conventional convertible debt where the rate of conversion is below market value, the Company records any “beneficial conversion feature” (“BCF”) intrinsic value as additional paid in capital and related debt discount.

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument. The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Debt Issue Costs

The Company may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations as amortization of debt discount.

Original Issue Discount

If debt is issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the note and is amortized over the life of the debt to the statement of operations as amortization of debt discount. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Use of Accounting 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the valuation of stock-based awards issued and derivatives embedded in financial instruments. Estimates are used in the determination of depreciation, the valuation of non-cash issuances of common stock, stock options and warrants, valuing convertible notes for beneficial conversion features, among others.

Fair Value

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level 1-Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2-Significant other observable inputs that can be corroborated by observable market data; and

Level 3-Significant unobservable inputs that cannot be corroborated by observable market data.

The carrying amounts of cash, accrued compensation, accounts payable and other liabilities, accrued interest payable, and short-term portion of notes payable approximate fair value because of the short-term nature of these items.

Concentration of credit risk

The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The Company maintains cash balances at financial institutions that are insured by the FDIC. On June 30, 2022, and December 31, 2021, the Company had no amounts in excess of the FDIC limit.

New Accounting Pronouncements

In July 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This update addresses several aspects of the accounting for nonemployee share-based payment transactions and expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The main provisions of the update change the way nonemployee awards are measured in the financial statements. Under the simplified standards, nonemployee options will be valued once at the date of grant, as compared to at each reporting period end under ASC 505-50. At adoption, all awards without established measurement dates will be revalued one final time, and a cumulative effect adjustment to retained earnings will be recorded as the difference between the pre-adoption value and new value. Companies will be permitted to make elections to establish the expected term and either recognize forfeitures as they occur or apply a forfeiture rate. Compensation expense recognition using a graded vesting schedule will no longer be permitted. This pending content is the result of the FASB’s Simplification Initiative, to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. Because the Company does not currently have any outstanding awards to non-employees for which a measurement date has not been established the adoption of ASU 2018-07 does not have a material impact to the Company’s financial statements and related disclosures upon adoption. The adoption of this standard will change the way that the Company accounts for non-employee compensation in the future.

In January 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842, which amends ASC Topic 842. Among other things, the new standard requires us to recognize a right of use asset and a lease liability on our balance sheet for leases. It also changes the presentation and timing of lease-related expenses. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect this guidance may have on its financial position, results of operations, comprehensive income, cash flows and disclosures.

In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842) intended to improve financial reporting around leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets - referred to as “lessees”- to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. For public companies, the standard is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Earlier adoption is permitted for any annual or interim period for which financial statements have not yet been issued. The Company adopted this ASU beginning on January 1, 2019, and will utilize the modified retrospective transition approach, as prescribed within this ASU. The adoption of ASC 842 did not have a material effect on the Company’s financial statements.

Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of amortization for the intangible assets

	June 30, 2022			December 31, 2021
Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(120,628	)		(86,630	)
	$	27,468		$	61,466

Schedule of depreciation

Equipment	5 Years
Furniture and Fixtures	7 Years
Forklift	3 Years

	June 30, 2022			December 31, 2021
Furniture and Equipment	$	220,420		$	216,398
Forklift		20,433			20,433
		239,831			2,366,818
Less accumulated depreciation		(149,387	)		(124,415	)
	$	91,466		$	112,416

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NET LOSS PER SHARES (Tables)

6 Months Ended

Jun. 30, 2022

NET LOSS PER SHARES (Tables)

Potentially dilutive securities

	June 30, 2022		December 31, 2021
Warrants		11,000,000		1,150,363
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		198,854,201		154,496,946
		212,554,201		158,347,309

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DESCRIPTION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)	1 Months Ended			6 Months Ended
	Apr. 18, 2022	Mar. 29, 2022	Jun. 18, 2019	Jun. 30, 2022	Mar. 27, 2022	Dec. 31, 2021
Working capital deficit				$ (3,385,594)		$ (3,853,273)
Accumulated deficit				$ (35,032,206)		$ (35,222,530)
Common stock, shares authorized				2,500,000,000		2,500,000,000
Authentic Heroes And Maestro [Member]
Contributed as capital for the venture					$ 350,000
Term of the venture		The term of the venture will begin March 29, 2022 for the period of 10 years or upon mutually agreeing to terminate or sell the joint venture company with repayment of all debts then owed
Advance to purchase inventory		$ 325,000
Authentic Heroes [Member]
Ownership interest in the Joint venture	70.00%
Description of license agreement				Authentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay Serbiak royalties of 1% of the revenue generated from the sale of the products amounting to at least $3,000,000 in revenue at year three of the License Agreement and another 1% of the revenue generated from the sale of the products amounting to at least $10,000,000 in revenue at year five (5) of the License Agreement. If Authentic Heroes fails to achieve at least $3,000,000 in revenue at year three or $10,000,000 in revenue at year five from this date of the License Agreement, then the exclusive license shall be a non-exclusive license
Class B Preferred Stock
Common stock, shares authorized				2,500,000,000		2,500,000,000
Business acquisition consideration transferred shares issued			6,400,000
Business acquisition consideration transferred, promissory note issued			$ 447,150
Shares of AHI issued to AHO under acquisition			200,000
Promissory note, interest rate			3.00%
Description for maturity period of promissory note			a one-year term with eight options to extend the maturity date for three-month periods

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2022
Equipment [Member]
Estimated useful lives	5 years
Furniture And Fixtures [Member]
Estimated useful lives	7 years
Forklift [Member]
Estimated useful lives	3 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Property plant and equipment, Gross	$ 239,831	$ 2,366,818
Less accumulated depreciation	(149,387)	(124,415)
Property plant and equipment, Net	91,466	112,416
Furniture And Fixtures [Member]
Property plant and equipment, Gross	220,420	216,398
Forklift [Member]
Property plant and equipment, Gross	$ 20,433	$ 20,433

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Amortization for the intangible assets	$ 148,096	$ 148,096
Less accumulated amortization	(120,628)	(86,630)
Amortization for the intangible assets, net	27,468	61,466
Patent [Member]
Amortization for the intangible assets	12,406	12,406
Websites [Member]
Amortization for the intangible assets	10,690	10,690
Royalties [Member]
Amortization for the intangible assets	$ 125,000	$ 125,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Depreciation expense	$ 58,970	$ 58,970
Amortization expense	$ 33,998	$ 307
Intangible assets, estimated useful life	15 years
Advances	$ 325,000		$ 0
ECO CHAIN 360 [Member]
Ownership interest	51.00%
AHI [Member]
Ownership interest	80.00%

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CAPITAL STOCK (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Common stock, shares par value	$ 0.001		$ 0.001
Common stock, shares outstanding	1,505,431,849		1,450,210,322
Common stock, shares issued	1,505,431,849		1,450,210,322
Issued shares of common stocks for services		1,000,000
Issued shares of common stocks for services, value		$ 10,000
Preferred stock, par value	$ 0.001		$ 0.001
Preferred stock, shares authorized	1,000,000		1,000,000
Class B Preferred Stock [Member]
Exercise price	$ 0.035
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	1,000,000
Non cumulative dividends rate received per annum	8.00%
Preferred stock voting rights	10,000
Redemption description	The Class B Preferred Stock shall be redeemed by the Corporation for 100% of the original purchase price plus the amount of cash dividends accrued on the earlier of 6 months from the date of issuance, or the date that the Corporation received its funding from any outside source in conjunction with a merger, reverse merger or any change of control.
Convertible Promissory Notes [Member]
Debt conversion on convertible note, common stock	39,582,832
Accrued interest	$ 354,777

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NOTES PAYABLE (Details Narrative) - USD ($)	1 Months Ended
	Jun. 18, 2019	Jun. 30, 2022	Dec. 31, 2021	Aug. 31, 2015
Common stock, shares issued		1,505,431,849	1,450,210,322
Unsecured Notes Payable [Member]
Accrued interest		$ 36,024	$ 28,961
Notes Payable		257,995	274,852
Convertible Notes Payable Related Party [Member]
Accrued interest		34,568,568	28,568
Accrued interest total		84,568	78,568
Interest rate				8.00%
Note payable issued				$ 50,000
Share price				$ 1.00
Non Interest Bearing Note [Member]
Notes Payable		$ 25,000
Interest rate		5.00%
Convertible Notes Payable [Member]
Convertible Notes		$ 162,407
Accrued interest		$ 112,130
Common stock, shares issued		15,638,695
Accrued interest total		$ 363,123
Market value		62,409
Promissory Notes [Member]
Accrued interest total		$ 382,880	$ 376,014
Interest rate	3.00%
Promissory note	$ 447,150
Discount	$ 175,936

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
RELATED PARTY TRANSACTIONS
Advances from related parties	$ 150,164	$ 33,439	$ 150,164

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NET LOSS PER SHARE (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Potentially dilutive securities	212,554,201	158,347,309
Options [Member]
Potentially dilutive securities	2,700,000	2,700,000
Convertible Notes Payable [Member]
Potentially dilutive securities	198,854,201	154,496,946
Warrants [Member]
Potentially dilutive securities	11,000,000	1,150,363

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SUBSEQUENT EVENTS (Details Narrative)	Jul. 01, 2022 USD ($)
Subsequent Event [Member]
Convertible promissory notes	$ 270,000