10-Q

  UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2021

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: 333-167667

TWO HANDS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	42-1770123
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)
1035 Queensway East, Mississauga, ON, Canada	L4Y 4C1
(Address of Principal Executive Offices)	(Zip Code)

(416) 357-0399

(Registrant's telephone number, including area code)

N/A

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

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

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 ☒

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:  As of November 11, 2021, the issuer had 5,233,967,834 shares of its common stock issued and outstanding, par value $0.0001 per share.

1

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report on Form 10-Q contains "forward-looking statements" that involve risks and uncertainties.  You should not place undue reliance on these forward-looking statements.  Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described in our Form 10-K filed on March 29, 2021, and other filings we make with the Securities and Exchange Commission.  Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made. We do not intend to update any of the forward-looking statements after the date of this report to conform these statements to actual results or to changes in our expectations, except as required by law.

The following discussion and analysis of financial condition and results of operations is based upon and should be read in conjunction with our audited financial statements and related notes thereto included elsewhere in this report, and in our Form 10-K filed on March 29, 2021.

TWO HANDS CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS

PART I		PAGE
Item 1.	Financial Statements (Unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	26
PART II
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mining Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
	Signatures	29

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

TWO HANDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30, 2021			December 31, 2020
ASSETS	(Unaudited)
Current assets
Cash	$	805,748		$	21,843
Accounts receivable		133,770			41,097
Taxes receivable		510			8,824
Prepaid expense		1,086,958			891,889
Total current assets		2,026,986			963,653
Property and equipment, net		4,128			3,444
Total assets	$	2,031,114		$	967,097
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	256,614		$	162,536
Non-redeemable convertible notes, net		-			75,040
Due to related party		14,737			106,928
Notes payable		5,547			83,332
Convertible note, net		4,145			7,833
Derivative liabilities		66,200			172,261
Total current liabilities		347,243			607,930
Long-term liabilities
Promissory notes		232,561			85,796
Promissory notes - related party		227,512			194,485
Non-redeemable convertible notes, net		582,286			766,949
Total long-term liabilities		1,042,359			1,047,230
Total liabilities		1,389,602			1,655,160
Commitments and Contingencies		-			-
Temporary equity
Series A convertible preferred stock; $0.01 par value; 200,000 shares designated, 120,000 and 30,000 shares issued and outstanding, respectively		350,500			33,000
Series B convertible preferred stock; $0.01 par value; 100,000 shares designated, 4,000 shares issued and outstanding, respectively		1,520,000			1,520,000
Series C convertible preferred stock; $0.001 par value; 30,000 shares designated, 10,500 shares and 5,000 shares issued and outstanding, respectively		1,187,500			542,857
Series D convertible preferred stock; $0.001 par value; 200,000 shares designated, 40,000 shares and 0 shares issued and outstanding, respectively		789,006			-
Total temporary equity		3,847,006			2,095,857
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding		-			-
Common stock; $0.0001 par value; 6,000,000,000 shares authorized, 4,701,967,834 and 695,575,506 shares issued and outstanding, respectively		470,199			69,560
Additional paid-in capital		54,810,901			42,703,888
Common stock to be issued		336,000			336,000
Accumulated deficit		(58,822,594	)		(45,893,368	)
Total stockholders' deficit		(3,205,494	)		(2,783,920	)
Total liabilities and stockholders' deficit	$	2,031,114		$	967,097
The accompanying footnotes are an integral part of these unaudited financial statements.

3

TWO HANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Sales	$	241,417		$	54,838		$	605,498		$	62,831
Cost of goods sold		201,609			52,494			527,385			58,531
Gross profit		39,808			2,344			78,113			4,300
Operating expenses
General and administrative		693,259			1,626,144			1,997,004			4,688,678
Total operating expenses		693,259			1,626,144			1,997,004			4,688,678
Loss from operations		(653,451	)		(1,623,800	)		(1,918,891	)		(4,684,378	)
Other income (expense)
Amortization of debt discount and interest expense		(130,594	)		(106,939	)		(261,560	)		(185,312	)
Loss on settlement of debt		(7,360,278	)		(464,351	)		(10,817,203	)		(1,473,733	)
Initial derivative expense		-			(114,462	)		(126,322	)		(258,863	)
Change in fair value of derivative liabilities		93,626			56,542			194,750			383,219
Total other income (expense)		(7,397,246	)		(629,210	)		(11,010,335	)		(1,534,689	)
Net loss	$	(8,050,697	)	$	(2,253,010	)	$	(12,929,226	)	$	(6,219,067	)
Net loss per common share - basic and diluted	$	(0.003	)	$	(0.012	)	$	(0.007	)	$	(0.068	)
Weighted average number of common shares outstanding - basic and diluted		2,998,954,553			190,493,425			1,854,661,108			91,887,054
The accompanying footnotes are an integral part of these unaudited financial statements.

4

TWO HANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
For the three and nine months ended September 30, 2021 and 2020
(Unaudited)
	Common Stock				Common Stock to		Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		be Issued		Capital		Deficit			Deficit
Balance, June 30, 2021		1,903,792,512	$	190,382	$	336,000	$	46,712,776	$	(50,771,897	)	$	(3,532,739	)
Stock issued for conversion of non-redeemable convertible notes		2,459,980,000		245,997		-		7,320,193		-			7,566,190
Stock issued for conversion of convertible notes		83,195,322		8,320		-		220,004		-			228,324
Stock issued for the conversion of Series C Stock		225,000,000		22,500				486,428		-			508,928
Stock issued for officer and director compensation		30,000,000		3,000		-		71,500		-			74,500
Net loss		-		-		-		-		(8,050,697	)		(8,050,697	)
Balance, September 30, 2021		4,701,967,834	$	470,199	$	336,000	$	54,810,901	$	(58,822,594	)	$	(3,205,494	)
	Common Stock				Common Stock to		Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		be Issued		Capital		Deficit			Deficit
Balance, December 31, 2020		695,575,506	$	69,560	$	336,000	$	42,703,888	$	(45,893,368	)	$	(2,783,920	)
Stock issued for conversion of non-redeemable convertible notes		3,552,024,783		355,202		-		10,795,222		-			11,150,424
Stock issued for conversion of convertible notes		146,867,545		14,687		-		431,763		-			446,450
Stock issued for the conversion of Series C Stock		225,000,000		22,500				486,428		-			508,928
Stock issued for consulting		40,500,000		4,050		-		286,950		-			291,000
Stock issued for officer and director compensation		42,000,000		4,200		-		106,650		-			110,850
Net loss		-		-		-		-		(12,929,226	)		(12,929,226	)
Balance, September 30, 2021		4,701,967,834	$	470,199	$	336,000	$	54,810,901	$	(58,822,594	)	$	(3,205,494	)

5

	Common Stock				Common Stock to		Additional Paid-in		Accumulated				Total Stockholders'
	Shares		Amount		be Issued		Capital		Deficit				Deficit
Balance, June 30, 2020		90,098,315	$	9,010	$	-	$	40,179,020	$	(42,193,363	)		$	(2,005,333	)
Stock issued for conversion of non-redeemable convertible notes		90,400,000		9,040		-		446,140		-				455,180
Stock issued for conversion of convertible notes		39,792,037		3,981		-		182,931		-				186,912
Stock issued for prepaid		17,999,999		1,800		336,000		187,200		-				525,000
Stock issued for consulting		74,000,000		7,400		-		426,400		-				433,800
Stock issued for officer and director compensation		70,000,000		7,000		-		416,000		-				423,000
Net loss		-		-		-		-		(2,253,010	)			(2,253,010	)
Balance, September 30, 2020		382,290,351	$	38,231	$	336,000	$	41,837,691	$	(44,446,373	)		$	(2,234,451	)
	Common Stock				Common Stock to		Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		be Issued		Capital		Deficit				Deficit
Balance, December 31, 2019		6,267,340		627	$	-	$	36,857,580	$	(38,227,306	)		$	(1,369,099	)
Stock issued for conversion of non-redeemable convertible notes		112,924,864		11,292		-		1,337,126		-				1,348,418
Stock issued for conversion of convertible notes		42,487,037		4,251		-		390,946		-				395,197
Stock issued for warrant liability settlement		2,000,000		200		-		111,600		-				111,800
Stock issued for prepaid		29,111,110		2,911		336,000		386,089		-				725,000
Stock issued for consulting		93,500,000		9,350		-		1,004,150		-				1,013,500
Stock issued for officer and director compensation		96,000,000		9,600		-		1,750,200		-				1,759,800
Net loss		-		-		-		-		(6,219,067	)			(6,219,067	)
Balance, September 30, 2020		382,290,351	$	38,231	$	336,000	$	41,837,691	$	(44,446,373	)		$	(2,234,451	)

6

TWO HANDS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	For the nine months ended September 30,
	2021			2020
Cash flows from operating activities
Net loss	$	(12,929,226	)	$	(6,219,067	)
Adjustments to reconcile net loss
to cash used in operating activities
Depreciation and amortization		1,281			1,149
Amortization of prepaid expense		974,268			1,602,097
Stock-based compensation		511,850			2,773,300
Amortization of debt discount		261,560			185,312
Loss on settlement of debt		10,817,203			1,473,733
Initial derivative expense		126,322			258,863
Change in fair value of derivative liabilities		(194,750	)		(383,219	)
Change in operating assets and liabilities
Accounts and taxes receivable		(85,273	)		(41,785	)
Prepaid expense		(15,986	)		-
Accounts payable and accrued liabilities		232,718			72,059
Net cash used in operating activities		(300,033	)		(277,558	)
Cash flows from investing activities
Purchase of property and equipment		(1,945	)		(2,229	)
Net cash used in investing activities		(1,945	)		(2,229	)
Cash flow from financing activities
Advances by related party		90,680			79,412
Repayment of advances to related party		(83,747	)		(55,780	)
Proceeds from notes payable		14,895			136,853
Repayments of notes payable		-			(117,170	)
Proceeds from issuance of shares		789,006			-
Proceeds from promissory notes		19,151			290,000
Proceeds from non-redeemable convertible		15,823			-
Proceeds from convertible notes		225,000			-
Net cash provided by financing activities		1,070,808			333,315
Change in foreign exchange		15,075			-
Net change in cash		783,905			53,528
Cash, beginning of the period		21,843			293
Cash, end of the period	$	805,748		$	53,821
Cash paid during the year
Interest paid	$	-		$	-
Income taxes paid	$	-		$	-
Supplemental disclosure of non-cash investing and financing activities
Stock issued to settle accrued liabilities	$	207,500		$	-
Stock issued to settle non-redeemable convertible notes	$	11,150,424		$	1,348,418
Stock issued to settle convertible notes	$	446,450		$	395,197
Stock issued for prepaids	$	1,153,571		$	725,000
Stock issued for warrant liability	$	-		$	111,800
Initial debt discount from derivative	$	225,000		$	290,000
Transfer of notes payable to promissory notes	$	91,192		$	-
Transfer of accounts payable and accrued liabilities to promissory notes	$	29,450		$	-
Transfer of due to related party to promissory notes	$	19,572		$	-
The accompanying footnotes are an integral part of these unaudited financial statements.

7

TWO HANDS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Two Hands Corporation (the "Company") was incorporated in the state of Delaware on April 3, 2009 and on July 26, 2016, changed its name from Innovative Product Opportunities Inc. to Two Hands Corporation.

The Two Hands co-parenting application launched on July 2018 and the Two Hands Gone application launched In February 2019. The Company ceased work on these applications in 2021.

The gocart.city online consumer grocery delivery application was released in early June 2020 and Cuore Food Services commenced sale of dry goods and produce to other businesses in July 2020.

In July 2021, the Company made the strategic decision to focus exclusively on the grocery market through three on-demand branches of its grocery businesses: gocart.city, Grocery Originals, and Cuore Food Services.

i)                 gocart.city is the Company’s online delivery marketplace, allowing consumers to shop online and have their groceries delivered.

ii)                Grocery Originals is the Company’s brick-and-mortar grocery store located in Mississauga Ontario at the site of the Company’s warehouse.

iii)              Cuore Food Services is the Company’s wholesale food distribution branch.

The operations of the business are carried on by I8 Interactive Corporation, a wholly-owned subsidiary of the Company, incorporated under the laws of Canada on February 7, 2014.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying financial statements of Two Hands Corporation have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2020 of Two Hands Corporation in our Form 10-K filed on March 29, 2021.

The interim financial statements present the balance sheets, statements of operations, stockholders’ deficit and cash flows of Two Hands Corporation.  The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

The interim financial information is unaudited. In the opinion of management, all adjustments necessary to present fairly the financial position as of September 30, 2021 and the results of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal and recurring nature.  Interim results are not necessarily indicative of results of operations for the full year.

COVID-19

The recent outbreak of the coronavirus COVID-19 has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. The outbreak and the related mitigation measures have had and will continue to have a material adverse impact on global economic conditions as well as on the Company's business activities. The extent to which COVID-19 may impact the Company's business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, business disruptions, and the effectiveness of actions taken in the Canada, United States and other countries to contain and treat the disease. These events are highly uncertain and, as such, the Company cannot determine their financial impact at this time. No adjustments have been made to the amounts reported in these consolidated financial statements as a result of this matter.

8

GOING CONCERN

The Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business.  During the nine months ended September 30, 2021, the Company incurred a net loss of $12,929,226 and used cash in operating activities of $300,033, and on September 30, 2021, had stockholders’ deficit of $3,205,494. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a  period one year from the date that the financial statements are issued.   The Company will be dependent upon the raising of additional capital through placement of its common stock in order to implement its business plan. There can be no assurance that the Company will be successful in this situation. The Company is unable to predict the effect, if any, that the coronavirus COVID-19 global pandemic may have on its access to the financing markets. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from this uncertainty. We are currently funding our operations by way of cash advances from our Chief Executive Officer, note holders, shareholders and others; however, we do not have any oral or written agreements with them or others to loan or advance funds to us.  There can be no assurances that we will be able to receive loans or advances from them or other persons in the future. 

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, I8 Interactive Corporation. All intercompany transactions and balances have been eliminated in consolidation.

USE OF ESTIMATES AND ASSUMPTIONS

Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

ACCOUNTS RECEIVABLE

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which is the Company’s best estimate of the amount of credit losses inherent in its existing accounts receivable. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company writes off accounts receivable against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

The allowance for doubtful accounts at September 30, 2021 and 2020 is $0 and $0, respectively.

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense when incurred, while renewals and betterments that materially extend the life of an asset are capitalized.

The costs of assets sold, retired, or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts, and any resulting gain or loss is recognized in the results from operations. Depreciation is provided over the estimated useful lives of the assets, which are as follows:

Computer equipment                                                    50% declining balance over a three year useful life 

In the year of acquisition, one half the normal rate of depreciation is provided.

9

REVENUE RECOGNITION

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. We recognize revenue for the sale of our products upon delivery to a customer.

During the nine months ended September 30, 2021 and 2020, the Company had revenue of $605,498 and $62,831 respectively. In 2021, the Company recognized revenue of $132,617 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $472,881 from the sale of dry goods and produce to other businesses. In 2020, the Company recognized revenue of $59,150 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $3,681 from the sale of computer equipment.

RESEARCH AND DEVELOPMENT COSTS

Software development costs are included in research and development and are expensed as incurred. FASB ASC Topic 350 Intangibles—Goodwill and Other requires that software development costs incurred subsequent to reaching technological feasibility be capitalized, if material. If the process of developing a new product or major enhancement does not include a detailed program design, technological feasibility is determined only after completion of a working model. To date, the period between achieving technological feasibility and the general availability of such software has been short, and the software development costs qualifying for capitalization have been insignificant. The Company recorded research and development expense of $0 and $0 for the nine months ended September 30, 2021 and 2020, respectively.

DEBT DISCOUNT AND DEBT ISSUANCE COSTS

Debt discounts and debt issuance costs incurred in connection with the issuance of convertible notes are capitalized and amortized to interest expense based on the related debt agreements using the effective interest rate method. Unamortized discounts are netted against convertible notes.

DERIVATIVE LIABILITY

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations.

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. 

The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. 

10

The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing 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 time equal to the remaining contractual term of the instrument granted.

INCOME TAXES

The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("FASB ASC") 740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.

NET LOSS PER SHARE

Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period increased to include the number of additional common shares that would have been outstanding if potentially dilutive securities had been issued. On September 30, 2021 and 2020, we excluded the common stock issuable upon conversion of non-redeemable convertible notes, convertible notes, Series A Stock, Series B Stock, Series C Stock, common stock to be issued and warrants of 6,906,076,484 shares and 8,432,844,041 shares, respectively, as their effect would have been anti-dilutive. On September 30, 2021, common stock equivalents exceed authorized shares of common stock of the Company.

FOREIGN CURRENCY TRANSLATION

The financial statements are presented in the Company’s functional currency which is the United States dollars.  The functional currency of the Company’s Canadian subsidiary, I8 Interactive Corporation, is the United States dollar. In accordance with FASB ASC 830, Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated to their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date.  Non-monetary assets and liabilities are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange during the periods presented.  Related translation adjustments are reported as gains or losses resulting from foreign currency transactions and are included in results of operations.

STOCK-BASED COMPENSATION

The Company accounts for stock incentive awards issued to employees and non-employees in accordance with FASB ASC 718, Stock Compensation. Accordingly, stock-based compensation is measured at the grant date, based on the fair value of the award. Stock-based awards to employees are recognized as an expense over the requisite service period, or upon the occurrence of certain vesting events. Additionally, stock-based awards to non-employees are expensed over the period in which the related services are rendered.

FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

The Company’s financial instruments such as cash, accounts payable and accrued liabilities, non-redeemable convertible notes, notes payable and due to related parties are reported at cost, which approximates fair value due to the short-term nature of these financial instruments.

Derivative liabilities are measured at fair value on a recurring basis using Level 3 inputs.

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The following tables present assets and liabilities that are measured and recognized at fair value as on a recurring basis:

	September 30, 2021
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	66,200

	December 31, 2020
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	172,261

RECENT ACCOUNTING PRONOUNCEMENTS

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2023, which means it will be effective for our fiscal year beginning January 1, 2014. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2020-06 on our consolidated financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

NOTE 3 – NON-REDEEMABLE CONVERTIBLE NOTES

On June 10, 2014, the Company agreed to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable issued to The Cellular Connection Ltd. during the period from February 22, 2013 to June 10, 2014 with a total carrying value $42,189. The issue price of the Note is $42,189 with a face value of $54,193 and the Note has an original maturity date of December 31, 2014 which is subject to automatic renewal. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2015. The outstanding face value of the Note shall increase by another 20% on January 1, 2016 and again on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $0 and $376 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $0 for the three months ended September 30, 2021 and 2020, respectively.  On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $0, respectively. This Note has been paid in full.

On September 1, 2016, Doug Clark, former Chief Executive Officer and related party, assigned the Side Letter Agreement (“Note”) dated June 10, 2014 with a total carrying value $382,016 to DC Design Inc. (“DC Design”). On September 1, 2016, the Company entered into an amended Side Letter Agreement with DC Design to amend and add certain terms to the Side Letter Agreement and advances from the period from June 25, 2014 to December 24, 2014. Under the terms of the amended Side Letter Agreement, the issue price of the Note is $174,252 with an interest rate 20% per annum and an original maturity date of December 31, 2017 which is subject to automatic renewal. In addition, on September 30, 2019, the Company and DC Design entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.003 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $39,612 of principal and interest into 13,204,000 shares of common stock of the Company at a fixed conversion price of $0.003 per share. This conversion resulted in a gain on debt settlement of $6,602 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $6,602 and $4,119 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,383 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $33,010 (face value of $33,010 less $0 unamortized discount), respectively. This Note has been paid in full.

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On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd., to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $14,930 issued by the Company during the period of June 2014 and December 2017. The issue price of the Note is $14,930 with a face value of $17,916 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On September 30, 2019, the Company and The Cellular Connection Ltd. entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $0 and $3,219 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,081 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $0, respectively. This Note has been paid in full.

On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk, to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $244,065 issued by the Company during the period of July 2014 and December 2017. The issue price of the Note is $244,065with a face value of $292,878 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Stuart Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $227,000 of principal and interest into 2,270,000,000 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $6,462,300 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $62,879 and $52,622 for the nine months ended September 30, 2021 and 2020, respectively and $21,190 and $17,669 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $256,224 (face value of $277,414 less $21,190 unamortized discount) and $420,344 (face value of $420,344 less $0 unamortized discount), respectively.

On April 12, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $45,000 issued by the Company during the period of March 19, 2018 to April 12, 2018. The issue price of the Note is $45,000 with a face value of $54,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $90,048 of principal and interest into 900,480,000 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $2,918,242 due to the requirement to record the share issuance at fair value on the date the shares were issued.   The condensed consolidated statement of operations includes interest expense of $15,008 and $9,612 for the nine months ended September 30, 2021 and 2020, respectively and $7,566 and $3,228 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $75,040 (face value of $75,040 less $0 unamortized discount), respectively. This Note has been paid in full.

On May 10, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $35,000 issued by the Company on May 9, 2018. The issue price of the Note is $35,000 with a face value of $42,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $9,047 and $7,546 for the nine months ended September 30, 2021 and 2020, respectively and $3,049 and $2,533 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $69,527 (face value of $72,576 less $3,049 unamortized discount) and $60,480 (face value of $60,480 less $0 unamortized discount), respectively.

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On September 13, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $40,000 issued by the Company during the period of July 10 to September 13, 2018. The issue price of the Note is $40,000 with a face value of $48,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $10,339 and $8,624 for the nine months ended September 30, 2021 and 2020, respectively and $3,485 and $2,896 for the three months ended September 30, 2021 and 2020, respectively.  On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $79,460 (face value of $82,944 less $3,484 unamortized discount) and $69,120 (face value of $69,120 less $0 unamortized discount), respectively.

On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $106,968 issued by the Company during the period of January 3, 2018 to December 28, 2018. The issue price of the Note is $106,968 with a face value of $128,362 and the Note has an original maturity date of December 31, 2019 which is subject to automatic renewal. On June 29, 2021, the Company and Stuart Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $23,042 and $19,219 for the nine months ended September 30, 2021 and 2020, respectively and $7,765 and $6,453 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $177,076 (face value of $184,841 less $7,765 unamortized discount) and $154,034 (face value of $154,034 less $0 unamortized discount), respectively.

On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd. to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $20,885 issued by the Company during the period of January 23, 2018 to October 16, 2018. The issue price of the Note is $20,885 with a face value of $25,062 and the Note has an original maturity date of December 31, 2019 which is subject to automatic renewal. On September 30, 2019, the Company and The Cellular Connection Ltd. entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $35,952 of principal and interest into 359,517,254 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $1,357,400 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $5,992 and $3,763 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,250 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $29,960 (face value of $29,960 less $0 unamortized discount), respectively. This Note has been paid in full.

On January 20, 2021, the Company entered into a Side Letter Agreement (“Note”) with Francesco Bisignano for cash proceeds of $15,823. The issue price of the Note is $15,823 with a face value of $23,735. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0034 per share of the Company’s common stock.. During the nine months ended September 30, 2021, the Company elected to convert $23,735 of principal and interest into 8,823,529 shares of common stock of the Company at a fixed conversion price of $0.0034 per share. This conversion resulted in a loss on debt settlement of $2,736 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $7,912 and $0 for the nine months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0. This Note has been paid in full.

NOTE 4 – NOTES PAYABLE

As of September 30, 2021 and December 31, 2020, notes payable due to Stuart Turk, Jordan Turk and The Cellular Connection Limited, a corporation controlled by Stuart Turk, totaling $5,547 and $83,332, respectively, were outstanding. The balances are non-interest bearing, unsecured and have no specified terms of repayment.

During the nine months ended September 30, 2021, $14,895 for expenses paid on behalf of the Company and the Company settled notes payable of $91,192 by issuing promissory notes.

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During the nine months ended September 30, 2020, notes payable were issued for $122,227 of expenses paid on behalf of the Company and $14,626 of cash was advanced to the Company and notes payable were repaid by the Company with $117,170 of cash.

NOTE 5 – PROMISSORY NOTES

Promissory Notes

As of September 30, 2021 and December 31, 2020, promissory notes of $232,561 (principal $212,722 and interest of $19,839) and $85,796 (principal $76,263 and interest of $9,533), respectively, were outstanding. The promissory notes bears interest of 10% per annum, are unsecured and mature on December 31, 2025.  

During the nine months ended September 30, 2021, the Company issued promissory notes of $136,459 for $19,217 of cash advanced to the Company and $91,192 to settle notes payable and $26,050 to settle accounts payable. Promissory notes holders on June 29, 2021 agreed to extend the maturity of notes to December 31, 2025.

Promissory Notes – Related Party

As of September 30, 2021 and December 31, 2020, promissory notes – related party of $227,512 (principal $192,447 and interest of $35,065) and $194,485 (principal $172,876 and interest of $21,609), respectively, were outstanding. The promissory notes – related party bear interest of 10% per annum, are unsecured, mature on December 31, 2025 and are due to Nadav Elituv, the Company's Chief Executive Officer.

During the nine months ended September 30, 2021, the Company issued promissory notes – related party of $19,572 for $3,400 to settle accrued liabilities and $16,172 of expenses paid on behalf of the Company. Promissory notes - related party holder on June 29, 2021 agreed to extend the maturity of notes to December 31, 2025.

NOTE 6 – CONVERTIBLE NOTE

Power Up Lending Group Ltd.

On July 13, 2020 the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd. (“Holder”) relating to the issuance and sale of a Senior Convertible Note (the “Note”) with an original principal amount of $53,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing July 13, 2021 for $50,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From January 15, 2021 to January 19, 2021, the Holder converted 30,622,223 shares of common stock of the Company with a fair value of $98,262 to settle principal and interest of $55,120. The conversions resulted in the settlement of derivative liabilities of $64,501 and a loss on settlement of debt of $25,604. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $5,274 (comprised of principal of $53,000 plus accrued interest of $1,986 less debt discount of $49,712), respectively. This Note has been paid in full.

On September 11, 2020 the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd. (“Holder”) relating to the issuance and sale of a Senior Convertible Note (the “Note”) with an original principal amount of $78,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing March 11, 2021 for $75,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From March 15, 2021 to March 16, 2021, the Holder converted 33,050,000 shares of common stock of the Company with a fair value of $119,865 to settle principal and interest of $81,120. The conversions resulted in the settlement of derivative liabilities of $89,884 and a loss on settlement of debt of $17,437. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $2,559 (comprised of principal of $78,000 plus accrued interest of $1,898 less debt discount of $77,339), respectively. This Note has been paid in full.

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Redstart Holdings Corp.

On February 23, 2021,  the Company entered into a Securities Purchase Agreement with Redstart Holdings Corp. (“Holder”) relating to the issuance and sale of a Convertible Note (the “Note”) with an original principal amount of $153,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing August 23, 2022 for $150,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From August 25, 2021 to August 30, 2021, the Holder converted 83,195,322 shares of common stock of the Company with a fair value of $228,323 to settle principal and interest of $159,120. The conversions resulted in the settlement of derivative liabilities of $108,249 and a loss on settlement of debt of $40,086. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $0, respectively. This Note has been paid in full.

Geneva Roth Remark Holdings Inc.

On May 27, 2021,  the Company entered into a Securities Purchase Agreement with Geneva Roth Remark Holdings Inc. (“Holder”) relating to the issuance and sale of a Convertible Note (the “Note”) with an original principal amount of $78,750 less transaction costs of $3,750 bearing an 8% annual interest rate and maturing May 27, 2022 for $75,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $4,145 (comprised of principal of $78,750 plus accrued interest of $2,175 less debt discount of $76,780) and $0, respectively.

NOTE 7 - CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

The Convertible Promissory Notes with Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc. with issue dates of July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 are accounted for under ASC 815.  The variable conversion price is not considered predominantly based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. The Company’s convertible promissory note derivative liabilities have been measured at fair value on December 31, 2020, February 23, 2021, March 31, 2021, June 30, 2021 and September 30, 2021 using the binomial model.

The inputs into the binomial models are as follows:

	December 31, 2020	February 23, 2021	March 31, 2021	June 30, 2021	September 30, 2021
Closing share price	$0.0031	$0.0068	$0.0027	$0.0019	$0.0024
Conversion price	$0.0019	$0.0037	$0.0018	$0.0012	$0.0017
Risk free rate	0.09% to 0.10%	0.13%	0.12%	0.10% to 0.12%	0.07%
Expected volatility	228% to 284%	276%	273%	185% to 196%	160%
Dividend yield	0%	0%	0%	0%	0%
Expected life	0.53 to 1.19 years	1.5 years	1.4 years	0.91 to 1.15 years	0.65 years

The fair value of the convertible promissory note derivative liability relating to the Notes issued to Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc on July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 is $66,200 (December 31, 2020 - $172,261), of which $225,000 was recorded as a debt discount and the remainder of $126,322 was recorded as initial derivative expense. During the nine months ended September 30, 2021, the convertible promissory note derivative liability was reduced by $262,633 for settlement of derivative liabilities due to conversion of the Notes into common stock by the Holders. The decrease in the fair value of the conversion option derivative liability of $194,750 is recorded as a gain in the condensed consolidated statements of operations for the nine months ended September 30, 2021.

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NOTE 8  – RELATED PARTY TRANSACTIONS

As of September 30, 2021 and December 31, 2020, advances and accrued salary of $14,737 and $106,928, respectively, were due to Nadav Elituv, the Company's Chief Executive Officer. The balance is non-interest bearing, unsecured and have no specified terms of repayment. During the nine months ended September 30, 2021, the Company issued advances due to related party for $90,680 of expenses paid on behalf of the Company and advances due to related party were repaid by the Company with $83,747 in cash. In addition, the Company accrued salary of $129,600 due to Nadav Elituv for the nine months ended September 30, 2021, issued 60,000 shares of Series A Convertible Preferred Stock with a fair value of $207,500 to settled accrued salary due and issued a promissory note for $19,572 to settle due to related party.

During the nine months ended September 30, 2020, the Company issued advances due to related party of $74,219 for expenses paid on behalf of the Company and cash received of $5,195 and the Company repaid advance due to related party with $55,780 in cash. 

Employment Agreements

On September 10, 2019, the Company executed an employment agreement for the period from July 1, 2019 to June 30, 2020 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds. On November 1, 2019, this employment agreement was amended to include additional stock-based compensation comprising of 30,000 shares of Series A Convertible Preferred Stock. On December 20, 2019, January 29, 2020, February 28, 2020, March 30, 2020 and April 30, 2020 the employment agreement was further amended to include additional stock-based compensation comprising of 873,609 shares, 1,000,000 shares, 1,000,000 shares, 2,500,000 shares and 2,000,000 shares of common stock of the Company, respectively. 

On August 7, 2020, the Company executed an employment agreement for the period from July 1, 2020 to June 30, 2021 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds. On June 30, 2021, there were no shares of common stock due Nadav Elituv under the employment agreement.

On July 1, 2021, the Company executed an employment agreement for the period from July 1, 2021 to June 30, 2022 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 30,000 shares of Series A Convertible Preferred Stock of the Company, 60,000,000 shares of Common Stock of the Company and an annual salary of $216,000 payable monthly on the first day of each month from available funds. On September  30, 2021, there were 45,000,000 shares of common stock due Nadav Elituv under the employment agreement.

Stock-based compensation – salaries expense related to these employment agreements for the nine months ended September 30, 2021 and 2020 is $186,350 and $439,950, respectively. Stock-based compensation – salaries expense was recognized ratably over the requisite service period.

NOTE 9 – PREFERRED STOCK

On August 6, 2013, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating two hundred thousand (200,000) shares as Series A Convertible Preferred Stock (“Series A Stock”). Each share of Series A Stock is (i) convertible into one thousand (1,000) shares of common stock of the Company and (ii) entitled to the number of votes equal to the aggregate number of shares of common stock into which the Holder’s share of Series A Stock is convertible, multiplied by one hundred (100). 

On December 12, 2019, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating one hundred thousand (100,000) shares as Series B Convertible Preferred Stock (“Series B Stock”). After a one year holding period, each share of Series B Stock is convertible into one thousand (1,000) shares of common stock of the Company. Series B Stock is non-voting. 

On October 7, 2020, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating thirty thousand (30,000) shares as Series C Convertible Preferred Stock, par value $0.001 per share (“Series C Stock”). Each share of Series C Stock (i) has a liquidation value of $100, subject to various anti-dilution protections (ii) is convertible into shares of common stock of the Company nine months after the date of issuance at a price of $0.002 per share, subject to various anti-dilution protections (iii) on conversion will receive an aggregate number of shares of common stock as is determined by dividing the liquidation value by the conversion price. Series C Stock are non-voting. On June 24, 2021, the board of directors approved the increase in the number of designated shares of Series C Convertible Preferred Stock from 5,000 to 30,000 and reduction of the conversion price from $0.0035 per share to $0.002 per share.

On September 1, 2021, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating two hundred thousand (200,000) shares as Series D Convertible Preferred Stock, par value $0.001 per share (“Series D Stock”). Each share of Series D Stock is convertible into one-hundred (100) shares of common stock of the Company six months after the date of issuance. Series D Stock are non-voting.

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On September 30, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $97,500 ($3.25 per share) to settle accrued liabilities for compensation due to Nadav Elituv, the Chief Executive Officer of the Company.

From September 1, 2021 to September 17, 2021, the Company issued 40,000 shares of Series D Convertible Preferred Stock for $789,006 ($1,000,000 CAD)  in cash.

On July 1, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $110,000 ($3.67 per share) for stock-based compensation due to Nadav Elituv, the Chief Executive Officer of the Company.

On June 24, 2021, the Company issued 10,000 shares of Series C Convertible Preferred Stock with a fair value of $1,153,571 for prepaid advertising expense.

On March 31, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $110,000 ($3.67 per share) to settle accrued salary due to Nadav Elituv, the Chief Executive Officer of the Company.

Series A Stock, Series B Stock Series C Stock and Series D Stock has been classified as temporary equity (outside of permanent equity) on the consolidated balance sheet on September 30, 2021 and December 31, 2020 because other tainting contracts such as convertible notes have inadequate available authorized shares of the Company for settlement.

NOTE 10 - STOCKHOLDERS' EQUITY

The Company is authorized to issue an aggregate of 6,000,000,000 common shares with a par value of $0.0001 per share and 1,000,000 shares of preferred stock with a par value of $0.0001 per share. On June 11, 2021, the board of directors and the majority shareholder approved the increase in the number of authorized shares of common stock from 3,000,000,000 to 6,000,000,000.

During the nine months ended September 30, 2021, the Company elected to convert $416,347 of principal and interest of non-redeemable convertible notes into 3,552,024,783 shares of common stock of the Company with a fair value of $11,150,424 resulting in a loss of extinguishment of debt of $10,734,075.

During the nine months ended September 30, 2021, the Holders of the Senior Convertible Notes issued on July 13, 2020, September 11, 2020  and February 26, 2021 elected to convert $295,360 of principal and interest into 146,867,547 shares of common stock of the Company with a fair value of $446,450 resulting in a loss of extinguishment of debt of $83,127.

During the nine months ended September 30, 2021, the Holders of Series C Stock election to convert 4,500 shares of Series C Stock into 225,000,000 shares of common stock.

During the nine months ended September 30, 2021, the Company issued 40,500,000 shares of common stock for stock-based compensation for consulting services with a fair value of $291,000.

During the nine months ended September 30, 2021, the Company issued 42,000,000 shares of common stock for stock-based compensation for officers and directors with a fair value of $110,850.

Common stock to be issued

On September 30, 2021 and December 31, 2020, the Company had an obligation to issue 32,000,001 shares of common stock valued at $336,000 and 32,000,001 shares of common stock valued at $336,000, respectively, for stock-based compensation – consulting services. These shares relate to an agreement dated August 1, 2020 for services to be provided from August 1, 2020 to July 31, 2022 whereby the Company shall pay 50,000,000 shares of Common Stock of the Company with a fair value of $525,000 for consulting. The shares are expensed the earlier of (i) the date of issue of shares or (ii) on a straight line over the life of the contract.

NOTE 11  - SUBSEQUENT EVENTS

2021 Stock Incentive Plan

On October 1, 2021, the Board of Directors approved the 2021 Stock Incentive Plan (the “2021 Plan”) to attract and retain the best available personnel, to provide additional incentive to employees, directors and consultants, and to promote the success of the Company's business. Pursuant to the 2020 Plan, the Board may grant incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units. to eligible persons. The maximum aggregate number of shares of common stock with respect to which awards granted under the Plan shall not exceed 200,000,000.

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Common Stock

From October 1, 2021 to November 6, 2021, the Company elected to convert $44,700 of principal and interest of non-redeemable convertible notes into 447,000,000 shares of common stock of the Company with a fair value of $1,142,000 resulting in a loss of extinguishment of debt of $1,097,300.

From October 1, 2021 to November 6, 2021, the Company issued 5,000,000 shares of common stock for stock-based compensation for consulting services with a fair value of $12,500.

From October 1, 2021 to November 6, 2021, the Company issued 80,000,000 shares of common stock for stock-based compensation for officers and directors with a fair value of $207,000.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Two Hands Corporation (the "Company") was incorporated in the state of Delaware on April 3, 2009 and on July 26, 2016, changed its name from Innovative Product Opportunities Inc. to Two Hands Corporation.

The Two Hands co-parenting application launched on July 2018 and the Two Hands Gone application launched In February 2019. The Company ceased work on these applications in 2021.

The gocart.city online consumer grocery delivery application was released in early June 2020 and Cuore Food Services commenced sale of dry goods and produce to other businesses in July 2020.

In July 2021, the Company made the strategic decision to focus exclusively on the grocery market through three on-demand branches of its grocery businesses: gocart.city, Grocery Originals, and Cuore Food Services. All three of such branches of the Company’s business share industry standard warehouse storage space and inventory. The Company’s inventory is updated continuously and generally consists of produce, meats, pantry items, bakery & pastry goods, gluten-free goods, and organic items, acquired from various different suppliers in Canada and internationally, with whom the Company and its principals have cultivated long-term relationships.

gocart.city

gocart.city is the Company’s online delivery marketplace, allowing consumers to shop online and have their groceries delivered. The gocart.city online platform stores all inventory in the Company’s warehouse located at its head office in Mississauga. The aim of gocart.city is to deliver fresh and high-quality food products directly to retail consumers throughout Southern Ontario. The Company recently engaged local renowned chef, Grace DiFede, to curate a new line of meal kits and bundles to sell on the gocart.city platform alongside the Company’s other grocery essentials.

The gocart.city platform is available online and through applications for handheld devices supporting iOS or Android. The features and functions of gocart.city include customers having the ability to search for products by category and name, customers saving items in their cart and being able to share their cart with others, and being able to opt-in to digital weekly alerts that provide information on promotions and discounts on certain products. gocart.city also includes standard payment options for customers, such as PayPal, American Express and Visa.

The Company also employs a social media manager to oversee and increase engagement with customers by using platforms such as Facebook, Twitter, Instagram and Google. The ads that are posted on these platforms are generic branding related to the Company, as well as the promotion of particular sale items. Moreover, the Company has agreements with SRAX, Inc. and Adfuel Media Inc. to boost such engagement.

Grocery Originals

Grocery Originals is the Company’s brick-and-mortar grocery store located in Mississauga Ontario at the site of the Company’s warehouse. Grocery Originals was originally intended for curbside pickup but has expanded into a full service store, that includes a deli, cold storage, a stone pizza oven, and offering a wide variety of fresh and specialty meals curated by Grace Di Fede.

Cuore Food Services

Cuore Food Services is the Company’s wholesale food distribution branch. Cuore Food Services uses inventory from the Company’s warehouse as well as inventory it acquires on an ad hoc basis, and focuses on bulk delivery of goods to food service business such as restaurants, hotels, event planning/hosting businesses. Orders distributed through Cuore Food Services can be made over the phone or online through a different front-end of the gocart.city platform.

The operations of the business are carried on by I8 Interactive Corporation, a wholly-owned subsidiary of the Company, incorporated under the laws of Canada on February 7, 2014.

Management's Plan of Operation

The Company is focused exclusively on the grocery market through three on-demand branches of its grocery businesses: gocart.city, Grocery Originals, and Cuore Food Services.

The performance of the Company’s business during the COVID-19 pandemic illustrates the flexibility of its model as the Company was able to meet heightened demand with an assortment of products that met customer preferences. The Company is still early-on in its development but sees a highly scalable business with lower corporate fixed costs, providing protection in the event of an economic downturn.

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Products and Services

The Company plans to continue to expand it reach to additional customers and geographies across Canada and continue to enhance its product offering with fresh, natural and organic foods.

Mobile Application

V2 of the gocart.city mobile application will be a subsequent release. The Company plans to further expand the features of the mobile application and hire an in-house developer. Following the completion of V2 of the mobile application, the Company will consider user behaviour and plans to expand the functionality and features of the mobile application on an on-going basis going forward.

Operations and Logistics

The company plans to expand storage and warehousing, expand warehouse staff, add more delivery trucks and expand the delivery area.

Sales and Marketing

The Company plans on utilizing and leveraging its agreement with SRAX, Inc. and Adfuel Media Inc. to market its grocery delivery application and services and expand its footprint in the Ontario region and beyond as its customer base grows.

Critical Accounting Policies and Estimates 

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements and accompanying notes. Estimates are used for, but not limited to, the accounting for the allowance for doubtful accounts, inventories, impairment of long-term assets, stock-based compensation, income taxes and loss contingencies. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates under different assumptions or conditions.

We believe the following critical accounting policies, among others, may be impacted significantly by judgment, assumptions and estimates used in the preparation of the Financial Statements:

STOCK-BASED COMPENSATION

 The Company accounts for stock incentive awards issued to employees and non-employees in accordance with FASB ASC 718, Stock Compensation. Accordingly, stock-based compensation is measured at the grant date, based on the fair value of the award. Stock-based awards to employees are recognized as an expense over the requisite service period, or upon the occurrence of certain vesting events. Additionally, stock-based awards to non-employees are expensed over the period in which the related services are rendered.

DERIVATIVE LIABILITY

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations.

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. 

The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions. 

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. 

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The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing 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 time equal to the remaining contractual term of the instrument granted. 

REVENUE RECOGNITION

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. We recognize revenue for the sale of our products upon delivery to a customer.

RESULTS OF OPERATIONS

COMPARISON OF RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

SALES

Our sales for the three months ended September 30, 2021 was $241,417, compared to $54,838 for the three months ended September 30, 2020. The Company recognized revenue of $28,832 (2020 - $51,157) from the sale of groceries to consumers via the gocart.city online grocery delivery application,  $212,585 (2020 - $0) from the sale of dry goods and produce to other businesses and $0 (2020 - $3,681) from the sale of computer equipment.

Sales have increased from the previous period primarily due to growth in sales to other businesses caused by increased product offerings, more time devoted to sales activity, new customers and repeat orders and reopening of restaurants locked down because of the COVID-19 pandemic.

COST OF GOODS SOLD

Our cost of goods sold for the three months ended September 30, 2021 was $201,609, compared to $52,494 for the three months ended September 30, 2020. Cost of goods sold comprises of purchase of groceries of $201,609 (2020 - $49,025) and computer equipment of $0 (2020 - $3,469).

GROSS PROFIT

Our gross profit for the three months ended September 30, 2021 was $39,808 (16.5% of sales), compared to $2,344 (4.3% of sales) for the three months ended September 30, 2020.

Gross margins have increased due to fewer incentives offered to customers.

OPERATING EXPENSES

Our operating expenses for the three months ended September 30, 2021 were $693,259, compared to $1,626,144 for the three months ended September 30, 2020, respectively. The decrease in general and administrative expense is primarily due to an decrease in stock-based compensation paid to officers, directors and consultants.

General and administrative expense includes stock-based compensation for the three months ended September 30, 2021 and 2020 which comprises of 0 and 74,000,000 shares of common stock issued valued at $0 and $433,800, respectively for consulting services.

General and administrative expense also includes stock-based compensation for the three months ended September 30, 2021 and 2020 which comprises of 30,000,000 and 70,000,000 shares of common stock issued valued at $74,500 and $423,000, respectively, for salaries and compensation for our officers and directors. During the three months ended September 30, 2021, stock-based compensation includes 30,000 shares of Series A Convertible Preferred Stock valued at $110,000 issued to Nadav Elituv, the Company's Chief Executive Officer.

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OTHER INCOME (EXPENSE)

Amortization of debt discount and interest expense for the three months ended September 30, 2021 was $130,594, compared to $106,939 for the three months ended September 30, 2020. Amortization of debt discount and interest expense relates to the issuance of non-redeemable convertible notes, convertible notes and promissory notes.

During the three months ended September 30, 2021 and 2020, the Company elected to convert $245,998 and $9,040 of principal and interest of a non-redeemable convertible note into 2,459,980,000 and 90,400,000 shares of common stock of the Company with a fair value of $7,566,190 resulting in a loss on settlement of debt of $7,320,192 and $446,140, respectively.

During the three months ended September 30, 2021 and 2020, the holders of the convertible notes elected to convert principal and interest of $159,120  and $107,120  into 83,195,322 and 39,792,017 shares of the common stock with a fair value of $228,323 and $186,911 resulting in a loss on settlement of debt of $40,086 and $18,211, respectively.

During the three months ended September 30, 2021 and 2020, the gain (loss) due to the change in fair value of derivative liabilities was $93,626 and $56,542, respectively.

NET INCOME/LOSS

Our net loss for three months ended September 30, 2021 was $8,050,697, compared to $2,253,010 for the three months ended September 30, 2020, respectively. Our losses during the three months ended September 30, 2021 and 2020 are primarily due to costs associated with professional fees, our transfer agent, investor relations, stock-based compensation paid to officers, directors and consultants, loss on settlement of debt and the issuance of a convertible notes.             

COMPARISON OF RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

SALES

Our sales for the nine months ended September 30, 2021 was $605,498, compared to $62,831 for the nine months ended September 30, 2020. The Company recognized revenue of $132,617 (2020 - $59,150) from the sale of groceries to consumers via the gocart.city online grocery delivery application,  $472,881 (2020 - $0) from the sale of dry goods and produce to other businesses and $0 (2020 - $3,681) from the sale of computer equipment.

Sales have increased from the previous period primarily due to growth in sales to other businesses caused by increased product offerings, more time devoted to sales activity, new customers and repeat orders and reopening of restaurants locked down because of the COVID-19 pandemic.

COST OF GOODS SOLD

Our cost of goods sold for the nine months ended September 30, 2021 was $527,385, compared to $58,531 for the nine months ended September 30, 2020. Cost of goods sold comprises of purchase of groceries of $527,385 (2020 - $55,062) and computer equipment of $0 (2020 - $3,469).

GROSS PROFIT

Our gross profit for the nine months ended September 30, 2021 was $78,113 (12.9% of sales), compared to $4,300 (6.8% of sales) for the three months ended September 30, 2020.

Gross margins have increased due to fewer incentives offered to customers.

OPERATING EXPENSES

Our operating expenses for the nine months ended September 30, 2021 were $1,997,004, compared to $4,688,678 for the nine months ended September 30, 2020, respectively. The decrease in general and administrative expense is primarily due to an decrease in stock-based compensation paid to officers, directors and consultants.

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General and administrative expense includes stock-based compensation for the nine months ended September 30, 2021 and 2020 which comprises of 40,500,000 and 93,500,000 shares of common stock issued valued at $291,000 and $1,013,500, respectively for consulting services.

General and administrative expense also includes stock-based compensation for the nine months ended September 30, 2021 and 2020 which comprises of 42,000,000 and 96,000,000 shares of common stock issued valued at $110,850 and $1,759,800, respectively, for salaries and compensation for our officers and directors. During the three months ended September 30, 2021, stock-based compensation includes 30,000 shares of Series A Convertible Preferred Stock valued at $110,000 issued to Nadav Elituv, the Company's Chief Executive Officer.

OTHER INCOME (EXPENSE)

Amortization of debt discount and interest expense for the nine months ended September 30, 2021 was $261,560, compared to $185,312 for the nine months ended September 30, 2020. Amortization of debt discount and interest expense relates to the issuance of non-redeemable convertible notes, convertible notes and promissory notes.

During the nine months ended September 30, 2021 and 2020, the Company elected to convert $416,347 and $11,292 of principal and interest of a non-redeemable convertible note into 3,552,024,783 and 112,924,864 shares of common stock of the Company resulting in a loss on settlement of debt of $10,734,075 and $1,337,127, respectively.

During the nine months ended September 30, 2021 and 2020, the holders of the convertible notes elected to convert principal and interest of $295,360 and $395,197 into 146,867,545 and 42,487,037 shares of the Company with a fair value of $446,450 and $395,197 resulting in a loss on settlement of debt of $83,127 and $66,307, respectively.

On April 14, 2020, the Company issued 2,000,000 shares of common stock with a fair value of $111,800 to fully settle the 1,000,000 warrants issued in conjunction with the issuance of the Senior Convertible Note with Firstfire Global Opportunities Fund, LLC on March 1, 2019. The issue of the shares resulting in a loss on settlement of warrant liability of $70,299.

Initial derivative expense of $126,322 for the nine months ended September 30, 2021 represents the difference between the fair value of the total embedded derivative liability of $351,322 and the cash received of $225,000 for the convertible note issued on February 23, 2021.

Initial derivative expense of $258,863 for the nine months ended September 30, 2020 represents the difference between the fair value of the total embedded derivative liability of $573,863 and the cash received of $290,000 and commitment fee of $25,000 for the convertible note issued on January 20, 2020, February 3, 2020, April 14, 2020 and July 13, 2020.

During the nine months ended September 30, 2021 and 2020, the gain (loss) due to the change in fair value of derivative liabilities was $194,750 and $383,219, respectively.

NET INCOME/LOSS

Our net loss for nine months ended September 30, 2021 was $12,929,226, compared to $6,219,067 for the nine months ended September 30, 2020, respectively. Our losses during the nine months ended September 30, 2021 and 2020 are primarily due to costs associated with professional fees, our transfer agent, investor relations, stock-based compensation paid to officers, directors and consultants, loss on settlement of debt and the issuance of a convertible notes.             

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2021, we had cash of $805,748 and total liabilities of $1,389,602. We believe our current cash balance is sufficient to fund our operations during the next 12 months (i) as the Company will not be required to outlay cash for advertising in the next year  as there $852,562 in advertising credits with SRAX, Inc. included in prepaid expense  (ii) because on June 29, 2021 debt holders with carrying value of $1,190,320 agreed to extend the maturity of debt previously classified as current liabilities to December 31, 2025 and (iii) we expect to reduce the cash expended on contractors in the next year as we plan to pay them in shares of the Company.

Our working capital as of September 30, 2021 and December 31, 2020 is as follows:

	September 30, 2021		December 31, 2020
Current assets	$	2,026,986	$	963,653
Current liabilities		347,243		607,930
Working capital	$	1,679,743	$	355,723

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The increase in working capital is primarily due to the (i) the issuance of 40,000 shares of Series D preferred stock for $789,006 in cash during September 2021 and (ii) on June 29, 2021 debt holders with carrying value of $1,190,320 agreed to extend the maturity of debt previously classified as current liabilities to December 31, 2025

The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2021, the Company incurred a net loss of $12,929,226 and used cash in operating activities of $300,033 and on September 30, 2021, had  stockholders’ deficit of $3,205,494. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The Company’s independent registered public accounting firm, in their report on the Company’s financial statements for the year ending December 31, 2020, expressed substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments that might result from the outcome of this uncertainty should we be unable to continue as a going concern.

Over the next 12 months we expect to expend approximately $100,000 in cash for legal, accounting and related services. We hope to be able to compensate our independent contractors with stock-based compensation, which will not require us to use our cash, although there can be no assurances that we will be successful in these efforts.

If required, we expect to be able to secure additional capital through advances from our Chief Executive Officer, note holders, shareholders and others in order to pay expenses such as organizational costs, filing fees, accounting fees and legal fees, however, we do not have any written or oral agreements with any third parties which require them to fund our operations. Although there can be no assurances that we will be able to obtain such funds in the future, the Company has been able to secure financing to continue operations since its inception on April 3, 2009. We may be able to use our accounts receivable to secure additional debt and we are currently quoted on OTC Pink. The Company is unable to predict the effect, if any, that the coronavirus COVID-19 global pandemic may have on its access to the financing markets. If we need additional capital in the next twelve months and if we cannot raise such capital on acceptable terms, we may have to curtail our operations or terminate our business entirely.

The inability to obtain financing or generate sufficient cash from operations could require us to reduce or eliminate expenditures for developing products and services, or otherwise curtail or discontinue our operations, which could have a material adverse effect on our business, financial condition and results of operations. Furthermore, to the extent that we raise additional capital through the sale of equity or convertible debt securities, the issuance of such securities may result in dilution to existing stockholders. If we raise additional funds through the issuance of debt securities, these securities may have rights, preferences and privileges senior to holders of our common stock and the terms of such debt could impose restrictions on our operations. Regardless of whether our cash assets prove to be inadequate to meet our operational needs, we may seek to compensate providers of services by issuing stock in lieu of cash, which may also result in dilution to existing stockholders.

OPERATING CAPITAL AND CAPITAL EXPENDITURE REQUIREMENTS

We are currently funding our operations by way of cash advances from our Chief Executive Officer, note holders, shareholders and others.  We hope to be able to compensate our independent contractors with stock-based compensation, which will not require us to use our cash, although there can be no assurances that we will be successful in these efforts.  We expect that we will be required to raise an additional $500,000 in cash by issuing new debt or equity for operating costs in order to implement our business plan in the next twelve months. The funds are loaned to the Company as required to pay amounts owed by the Company.  As such, our operating capital is currently limited to the personal resources of our Chief Executive Officer, note holders, shareholders and others.  The loans from our Chief Executive Officer, note holders, shareholders and others are unsecured and non-interest bearing and have no set terms of repayment. Our common stock started trading over the counter and has been quoted on the Over-The Counter Bulletin Board since February 17, 2011. The stock currently trades under the symbol “TWOH.OB.”

OFF-BALANCE SHEET TRANSACTIONS

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a Smaller Reporting Company, as defined by Rule 12b-2 of the Exchange Act and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item.

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ITEM 4T. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As required by Rule 13a-15 of the Securities Exchange Act of 1934, our principal executive officer and principal financial officer evaluated our company's disclosure controls and procedures (as defined in Rules 13a-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that as of the end of the period covered by this report, these disclosure controls and procedures were not effective to ensure that the information required to be disclosed by our company in reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities Exchange Commission and to ensure that such information is accumulated and communicated to our company's management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure. The conclusion that our disclosure controls and procedures were not effective was due to the presence of the following material weaknesses in internal control over financial reporting which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both United States generally accepted accounting principles and Securities and Exchange Commission guidelines. Management anticipates that such disclosure controls and procedures will not be effective until the material weaknesses are remediated.

We plan to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending December 31, 2021, subject to obtaining additional financing: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out above are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2021 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

26

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We may be involved from time to time in ordinary litigation, negotiation and settlement matters that will not have a material effect on our operations or finances. We are not aware of any pending or threatened litigation against our Company or our officers and directors in their capacity as such that could have a material impact on our operations or finances.

ITEM 1A. RISK FACTORS

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

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

During the three months ended September 30, 2021, the Company elected to convert $245,998 of principal and interest of a non-redeemable convertible note into 2,459,980,000 shares of common stock of the Company with a fair value of $7,566,190.

During the three months ended September 30, 2021, the holders of the convertible notes elected to convert $159,120 of principal and interest into 83,195,322 shares of the common stock with a fair value of $228,323.

During the three months ended September 30, 2021, the Holders of Series C Stock election to convert 4,500 shares of Series C Stock into 225,000,000 shares of common stock.

During the three months ended September 30, 2021, the Company issued 30,000,000 shares of common stock for stock-based compensation to officer and directors with a fair value of $74,500.

During the three months ended September 30, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $110,000 to Nadav Elituv, the Company's Chief Executive Officer.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

During the quarter ended September 30, 2021, we did not have any defaults upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION.

Not applicable.

27

ITEM 6. EXHIBITS

			Incorporated by reference
Exhibit	Exhibit Description	Filed herewith	Form	Period ending	Exhibit	Filing date
3.1	Certificate of Incorporation, dated April 3, 2009		S-1		3.1	6/22/2010
3.2	Bylaws, dated April 3, 2009		S-1		3.2	6/22/2010
3.3	Certificate of Amendment to the Certificate of Incorporation, dated August 8, 2013		10-Q	6/30/2013	3.3	8/14/2013
4.1	Specimen Stock Certificate		S-1		4.1	6/22/2010
4.2	Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock, dated August 6, 2013		10-Q	6/30/2013	4.2	8/14/2013
4.3	Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock, dated December 13, 2019		8-K		3.1	12/19/2019
4.4	Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock, dated October 7, 2020		8-K		3.1	10/8/2020
4.5	Amended and Restated Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock, dated June 24, 2021		8-K		3.1	7/1/2021
10.1	Innovative Product Opportunities Inc. Trust Agreement		S-1		10.1	6/22/2010
10.2	Side Letter Agreement, The Cellular Connection Ltd., dated January 8, 2018		10-K	12/31/2017	10.2	3/29/2018
10.3	Side Letter Agreement, Stuart Turk, dated January 8, 2018		10-K	12/31/2017	10.3	3/29/2018
10.4	Side Letter Agreement, Jordan Turk, dated April 12, 2018		10-Q	3/31/2018	10.4	5/21/2018
10.5	Side Letter Agreement, Jordan Turk, dated May 10, 2018		10-Q	3/31/2018	10.5	5/21/2018
10.6	Side Letter Agreement, Jordan Turk, dated September 13, 2018		10-K	12/31/2018	10.6	4/1/2019
10.7	Side Letter Agreement, Cellular Connection Ltd., dated January 31, 2019		10-K	12/31/2018	10.7	4/1/2019
10.8	Side Letter Agreement, Stuart Turk, dated January 31, 2019		10-K	12/31/2018	10.8	4/1/2019
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	X
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS	XBRL Instance Document	*
101.SCH	XBRL Taxonomy Extension Schema Document	*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Definition	*
104	Cover page formatted as Inline XBRL and contained in Exhibit 101	*

*Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections.

28

 SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TWO HANDS CORPORATION
November 15, 2021	By:  /s/ Nadav Elituv Nadav Elituv, President, Chief Executive Officer and Director (Principal Executive Officer)
	By:  /s/ Steven Gryfe   Steven Gryfe, Chief Financial Officer (Principal Financial and Accounting Officer)

29

EX-31

EXHIBIT 31.1

TWO HANDS CORPORATION

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Nadav Elituv, certify that:

1.   I have reviewed this Form 10-Q of TWO HANDS CORPORATION;

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

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

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

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under 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; and

5. The registrant’s other certifying officer(s) and 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: November 15, 2021

By:  /s/ Nadav Elituv  

Name: Nadav Elituv

Title: President, Chief Executive Officer and Director

(Principal Executive Officer)

EXHIBIT 31.2

TWO HANDS CORPORATION

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Steven Gryfe, certify that:

1.   I have reviewed this Form 10-Q of TWO HANDS CORPORATION;

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

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

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

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under 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; and

5. The registrant’s other certifying officer(s) and 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: November 15, 2021

By:  /s/ Steven Gryfe  

Name: Steven Gryfe

Title: Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32

 EXHIBIT 32.1

TWO HANDS CORPORATION

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 OF 

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of TWO HANDS CORPORATION (the Registrant) on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Nadav Elituv, Principal Executive Officer of the Company, certify,  pursuant to 18 U.S.C.  ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

A signed original of this written statement required by Section 906 has been provided to Nadav Elituv and will be retained by TWO HANDS CORPORATION and furnished to the Securities and Exchange Commission or its staff upon request.

Dated:  November 15, 2021

By:  /s/ Nadav Elituv  

Name: Nadav Elituv

Title: President, Chief Executive Officer and Director

(Principal Executive Officer)

EXHIBIT 32.2

TWO HANDS CORPORATION

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 OF 

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of TWO HANDS CORPORATION (the Registrant) on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Steven Gryfe, Principal Financial and Accounting Officer of the Company, certify,  pursuant to 18 U.S.C.  ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

A signed original of this written statement required by Section 906 has been provided to Steven Gryfe and will be retained by TWO HANDS CORPORATION and furnished to the Securities and Exchange Commission or its staff upon request.

Dated:  November 15, 2021

By:  /s/ Steven Gryfe  

Name: Steven Gryfe

Title: Chief Financial Officer

(Principal Financial and Accounting Officer)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 11, 2021
Cover [Abstract]
Entity Registrant Name	TWO HANDS CORPORATION
Entity Central Index Key	0001494413
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	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		5,233,967,834
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-167667
Entity Incorporation State Country Code	DE
Entity Address Address Line 1	1035 Queensway East
Entity Address City Or Town	Mississauga
Entity Address Country	CA
Entity Address Postal Zip Code	L4Y 4C1
Entity Tax Identification Number	42-1770123
Local Phone Number	357-0399
City Area Code	416
Entity Interactive Data Current	Yes
Entity Address State Or Province	ON

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash	$ 805,748	$ 21,843
Accounts receivable	133,770	41,097
Taxes receivable	510	8,824
Prepaid expense	1,086,958	891,889
Total current assets	2,026,986	963,653
Property and equipment, net	4,128	3,444
Total assets	2,031,114	967,097
Current liabilities
Accounts payable and accrued liabilities	256,614	162,536
Non-redeemable convertible notes, net	0	75,040
Due to related party	14,737	106,928
Notes payable	5,547	83,332
Convertible note, net	4,145	7,833
Derivative liabilities	66,200	172,261
Total current liabilities	347,243	607,930
Long-term liabilities
Promissory notes	232,561	85,796
Promissory notes - related party	227,512	194,485
Non-redeemable convertible notes, net	582,286	766,949
Total long-term liabilities	1,042,359	1,047,230
Total liabilities	1,389,602	1,655,160
Commitments and Contingencies	0	0
Temporary equity
Total temporary equity	3,847,006	2,095,857
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding	0	0
Common stock; $0.0001 par value; 6,000,000,000 shares authorized, 4,701,967,834 and 695,575,506 shares issued and outstanding, respectively	470,199	69,560
Additional paid-in capital	54,810,901	42,703,888
Common stock to be issued	336,000	336,000
Accumulated deficit	(58,822,594)	(45,893,368)
Total stockholders' deficit	(3,205,494)	(2,783,920)
Total liabilities and stockholders' deficit	2,031,114	967,097
Series A Convertible Preferred Stock [Member]
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding	350,500	33,000
Series B Convertible Preferred Stock [Member]
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding	1,520,000	1,520,000
Series C Convertible Preferred Stock [Member]
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding	1,187,500	542,857
Series D Convertible Preferred Stock [Member]
Stockholder's deficit
Preferred stock; $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding	$ 789,006	$ 0

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	6,000,000,000	6,000,000,000
Common stock, shares issued	4,701,967,834	695,575,506
Common stock, shares outstanding	4,701,967,834	695,575,506
Series A Convertible Preferred Stock [Member]
Temporary equity, par value per share	$ 0.01	$ 0.01
Temporary equity, shares authorized	200,000	200,000
Temporary equity, shares issued	120,000	30,000
Temporary equity, shares outstanding	120,000	30,000
Series B Convertible Preferred Stock [Member]
Temporary equity, par value per share	$ 0.01	$ 0.01
Temporary equity, shares authorized	100,000	100,000
Temporary equity, shares issued	4,000	4,000
Temporary equity, shares outstanding	4,000	4,000
Series C Convertible Preferred Stock [Member]
Temporary equity, par value per share	$ 0.001	$ 0.001
Temporary equity, shares authorized	30,000	30,000
Temporary equity, shares issued	10,500	5,000
Temporary equity, shares outstanding	10,500	5,000
Series D Convertible Preferred Stock [Member]
Temporary equity, par value per share	$ 0.001	$ 0.01
Temporary equity, shares authorized	200,000	200,000
Temporary equity, shares issued	40,000	0
Temporary equity, shares outstanding	40,000	0

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Sales	$ 241,417	$ 54,838	$ 605,498	$ 62,831
Cost of goods sold	201,609	52,494	527,385	58,531
Gross profit	39,808	2,344	78,113	4,300
Operating expenses
General and administrative	693,259	1,626,144	1,997,004	4,688,678
Total operating expenses	693,259	1,626,144	1,997,004	4,688,678
Loss from operations	(653,451)	(1,623,800)	(1,918,891)	(4,684,378)
Other income (expense)
Amortization of debt discount and interest expense	(130,594)	(106,939)	(261,560)	(185,312)
Loss on settlement of debt	(7,360,278)	(464,351)	(10,817,203)	(1,473,733)
Initial derivative expense		(114,462)	(126,322)	(258,863)
Change in fair value of derivative liabilities	93,626	56,542	194,750	383,219
Total other income (expense)	(7,397,246)	(629,210)	(11,010,335)	(1,534,689)
Net loss	$ (8,050,697)	$ (2,253,010)	$ (12,929,226)	$ (6,219,067)
Net loss per common share - basic and diluted	$ (0.003)	$ (0.012)	$ (0.007)	$ (0.068)
Weighted average number of common shares outstanding - basic and diluted	2,998,954,553	190,493,425	1,854,661,108	91,887,054

XML

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Common Stock to be Issued
Balance, shares at Dec. 31, 2019		6,267,340
Balance, amount at Dec. 31, 2019	$ (1,369,099)	$ 627	$ 36,857,580	$ (38,227,306)
Stock issued for conversion of non-redeemable convertible notes, shares		112,924,864
Stock issued for conversion of non-redeemable convertible notes, amount	1,348,418	$ 11,292	1,337,126	0	$ 0
Stock issued for conversion of convertible notes, shares		42,487,037
Stock issued for conversion of convertible notes, amount	395,197	$ 4,251	390,946	0	0
Stock issued for warrant liability settlement, shares		2,000,000
Stock issued for warrant liability settlement, amount	111,800	$ 200	111,600	0	0
Stock issued for prepaid, shares		29,111,110
Stock issued for prepaid, amount	725,000	$ 2,911	386,089	0	336,000
Stock issued for consulting, shares		93,500,000
Stock issued for consulting, amount	1,013,500	$ 9,350	1,004,150	0	0
Stock issued for officer and director compensation, shares		96,000,000
Stock issued for officer and director compensation, amount	1,759,800	$ 9,600	1,750,200	0	0
Net loss	(6,219,067)	$ 0	0	(6,219,067)	0
Balance, shares at Sep. 30, 2020		382,290,351
Balance, amount at Sep. 30, 2020	(2,234,451)	$ 38,231	41,837,691	(44,446,373)	336,000
Balance, shares at Jun. 30, 2020		90,098,315
Balance, amount at Jun. 30, 2020	(2,005,333)	$ 9,010	40,179,020	(42,193,363)	0
Stock issued for conversion of non-redeemable convertible notes, shares		90,400,000
Stock issued for conversion of non-redeemable convertible notes, amount	455,180	$ 9,040	446,140	0	0
Stock issued for conversion of convertible notes, shares		39,792,037
Stock issued for conversion of convertible notes, amount	186,912	$ 3,981	182,931	0	0
Stock issued for prepaid, shares		17,999,999
Stock issued for prepaid, amount	525,000	$ 1,800	187,200	0	336,000
Stock issued for consulting, shares		74,000,000
Stock issued for consulting, amount	433,800	$ 7,400	426,400	0	0
Stock issued for officer and director compensation, shares		70,000,000
Stock issued for officer and director compensation, amount	423,000	$ 7,000	416,000	0	0
Net loss	(2,253,010)	$ 0	0	(2,253,010)	0
Balance, shares at Sep. 30, 2020		382,290,351
Balance, amount at Sep. 30, 2020	(2,234,451)	$ 38,231	41,837,691	(44,446,373)	336,000
Balance, shares at Dec. 31, 2020		695,575,506
Balance, amount at Dec. 31, 2020	(2,783,920)	$ 69,560	42,703,888	(45,893,368)	336,000
Stock issued for conversion of non-redeemable convertible notes, shares		3,552,024,783
Stock issued for conversion of non-redeemable convertible notes, amount	11,150,424	$ 355,202	10,795,222	0	0
Stock issued for conversion of convertible notes, shares		146,867,545
Stock issued for conversion of convertible notes, amount	446,450	$ 14,687	431,763	0	0
Stock issued for consulting, shares		40,500,000
Stock issued for consulting, amount	291,000	$ 4,050	286,950	0	0
Stock issued for officer and director compensation, shares		42,000,000
Stock issued for officer and director compensation, amount	110,850	$ 4,200	106,650	0	0
Net loss	(12,929,226)	$ 0	0	(12,929,226)	0
Stock issued for the conversion of Series C Stock, shares		225,000,000
Stock issued for the conversion of Series C Stock, amount	508,928	$ 22,500	486,428	0
Balance, shares at Sep. 30, 2021		4,701,967,834
Balance, amount at Sep. 30, 2021	(3,205,494)	$ 470,199	54,810,901	(58,822,594)	336,000
Balance, shares at Jun. 30, 2021		1,903,792,512
Balance, amount at Jun. 30, 2021	(3,532,739)	$ 190,382	46,712,776	(50,771,897)	336,000
Stock issued for conversion of non-redeemable convertible notes, shares		2,459,980,000
Stock issued for conversion of non-redeemable convertible notes, amount	7,566,190	$ 245,997	7,320,193	0	0
Stock issued for conversion of convertible notes, shares		83,195,322
Stock issued for conversion of convertible notes, amount	228,324	$ 8,320	220,004	0	0
Stock issued for officer and director compensation, shares		30,000,000
Stock issued for officer and director compensation, amount	74,500	$ 3,000	71,500	0	0
Net loss	(8,050,697)	$ 0	0	(8,050,697)	0
Stock issued for the conversion of Series C Stock, shares		225,000,000
Stock issued for the conversion of Series C Stock, amount	508,928	$ 22,500	486,428	0
Balance, shares at Sep. 30, 2021		4,701,967,834
Balance, amount at Sep. 30, 2021	$ (3,205,494)	$ 470,199	$ 54,810,901	$ (58,822,594)	$ 336,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ (12,929,226)	$ (6,219,067)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation and amortization	1,281	1,149
Amortization of prepaid expense	974,268	1,602,097
Stock-based compensation	511,850	2,773,300
Amortization of debt discount	261,560	185,312
Loss on settlement of debt	10,817,203	1,473,733
Initial derivative expense	126,322	258,863
Change in fair value of derivative liabilities	(194,750)	(383,219)
Change in operating assets and liabilities
Accounts and taxes receivable	(85,273)	(41,785)
Prepaid expense	(15,986)	0
Accounts payable and accrued liabilities	232,718	72,059
Net cash used in operating activities	(300,033)	(277,558)
Cash flows from investing activities
Purchase of property and equipment	(1,945)	(2,229)
Net cash used in investing activities	(1,945)	(2,229)
Cash flow from financing activities
Advances by related party	90,680	79,412
Repayment of advances to related party	(83,747)	(55,780)
Proceeds from notes payable	14,895	136,853
Repayments of notes payable	0	(117,170)
Proceeds from issuance of shares	789,006	0
Proceeds from promissory notes	19,151	290,000
Proceeds from non-redeemable convertible	15,823	0
Proceeds from convertible notes	225,000	0
Net cash provided by financing activities	1,070,808	333,315
Change in foreign exchange	15,075	0
Net change in cash	783,905	53,528
Cash, beginning of the period	21,843	293
Cash, end of the period	805,748	53,821
Cash paid during the year
Interest paid	0	0
Income taxes paid	0	0
Supplemental disclosure of non-cash investing and financing activities
Stock issued to settle accrued liabilities	207,500	0
Stock issued to settle non-redeemable convertible notes	11,150,424	1,348,418
Stock issued to settle convertible notes	446,450	395,197
Stock issued for prepaids	1,153,571	725,000
Stock issued for warrant liability	0	111,800
Initial debt discount from derivative	225,000	290,000
Transfer of notes payable to promissory notes	91,192	0
Transfer of accounts payable and accrued liabilities to promissory notes	29,450	0
Transfer of due to related party to promissory notes	$ 19,572	$ 0

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NATURE OF OPERATIONS AND BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2021

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Two Hands Corporation (the "Company") was incorporated in the state of Delaware on April 3, 2009 and on July 26, 2016, changed its name from Innovative Product Opportunities Inc. to Two Hands Corporation.

The Two Hands co-parenting application launched on July 2018 and the Two Hands Gone application launched In February 2019. The Company ceased work on these applications in 2021.

The gocart.city online consumer grocery delivery application was released in early June 2020 and Cuore Food Services commenced sale of dry goods and produce to other businesses in July 2020.

In July 2021, the Company made the strategic decision to focus exclusively on the grocery market through three on-demand branches of its grocery businesses: gocart.city, Grocery Originals, and Cuore Food Services.

i)                 gocart.city is the Company’s online delivery marketplace, allowing consumers to shop online and have their groceries delivered.

ii)                Grocery Originals is the Company’s brick-and-mortar grocery store located in Mississauga Ontario at the site of the Company’s warehouse.

iii)              Cuore Food Services is the Company’s wholesale food distribution branch.

The operations of the business are carried on by I8 Interactive Corporation, a wholly-owned subsidiary of the Company, incorporated under the laws of Canada on February 7, 2014.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying financial statements of Two Hands Corporation have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2020 of Two Hands Corporation in our Form 10-K filed on March 29, 2021.

The interim financial statements present the balance sheets, statements of operations, stockholders’ deficit and cash flows of Two Hands Corporation.  The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

The interim financial information is unaudited. In the opinion of management, all adjustments necessary to present fairly the financial position as of September 30, 2021 and the results of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal and recurring nature.  Interim results are not necessarily indicative of results of operations for the full year.

COVID-19

The recent outbreak of the coronavirus COVID-19 has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. The outbreak and the related mitigation measures have had and will continue to have a material adverse impact on global economic conditions as well as on the Company's business activities. The extent to which COVID-19 may impact the Company's business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, business disruptions, and the effectiveness of actions taken in the Canada, United States and other countries to contain and treat the disease. These events are highly uncertain and, as such, the Company cannot determine their financial impact at this time. No adjustments have been made to the amounts reported in these consolidated financial statements as a result of this matter.

GOING CONCERN

The Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business.  During the nine months ended September 30, 2021, the Company incurred a net loss of $12,929,226 and used cash in operating activities of $300,033, and on September 30, 2021, had stockholders’ deficit of $3,205,494. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a  period one year from the date that the financial statements are issued.   The Company will be dependent upon the raising of additional capital through placement of its common stock in order to implement its business plan. There can be no assurance that the Company will be successful in this situation. The Company is unable to predict the effect, if any, that the coronavirus COVID-19 global pandemic may have on its access to the financing markets. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from this uncertainty. We are currently funding our operations by way of cash advances from our Chief Executive Officer, note holders, shareholders and others; however, we do not have any oral or written agreements with them or others to loan or advance funds to us.  There can be no assurances that we will be able to receive loans or advances from them or other persons in the future. 

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, I8 Interactive Corporation. All intercompany transactions and balances have been eliminated in consolidation.

USE OF ESTIMATES AND ASSUMPTIONS

Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

ACCOUNTS RECEIVABLE

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which is the Company’s best estimate of the amount of credit losses inherent in its existing accounts receivable. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company writes off accounts receivable against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

The allowance for doubtful accounts at September 30, 2021 and 2020 is $0 and $0, respectively.

PROPERTY AND EQUIPMENT

Property and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense when incurred, while renewals and betterments that materially extend the life of an asset are capitalized.

The costs of assets sold, retired, or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts, and any resulting gain or loss is recognized in the results from operations. Depreciation is provided over the estimated useful lives of the assets, which are as follows:

Computer equipment                                                    50% declining balance over a three year useful life 

In the year of acquisition, one half the normal rate of depreciation is provided.

REVENUE RECOGNITION

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. We recognize revenue for the sale of our products upon delivery to a customer.

During the nine months ended September 30, 2021 and 2020, the Company had revenue of $605,498 and $62,831 respectively. In 2021, the Company recognized revenue of $132,617 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $472,881 from the sale of dry goods and produce to other businesses. In 2020, the Company recognized revenue of $59,150 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $3,681 from the sale of computer equipment.

RESEARCH AND DEVELOPMENT COSTS

Software development costs are included in research and development and are expensed as incurred. FASB ASC Topic 350 Intangibles—Goodwill and Other requires that software development costs incurred subsequent to reaching technological feasibility be capitalized, if material. If the process of developing a new product or major enhancement does not include a detailed program design, technological feasibility is determined only after completion of a working model. To date, the period between achieving technological feasibility and the general availability of such software has been short, and the software development costs qualifying for capitalization have been insignificant. The Company recorded research and development expense of $0 and $0 for the nine months ended September 30, 2021 and 2020, respectively.

DEBT DISCOUNT AND DEBT ISSUANCE COSTS

Debt discounts and debt issuance costs incurred in connection with the issuance of convertible notes are capitalized and amortized to interest expense based on the related debt agreements using the effective interest rate method. Unamortized discounts are netted against convertible notes.

DERIVATIVE LIABILITY

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations.

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. 

The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. 

The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing 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 time equal to the remaining contractual term of the instrument granted.

INCOME TAXES

The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("FASB ASC") 740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.

NET LOSS PER SHARE

Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period increased to include the number of additional common shares that would have been outstanding if potentially dilutive securities had been issued. On September 30, 2021 and 2020, we excluded the common stock issuable upon conversion of non-redeemable convertible notes, convertible notes, Series A Stock, Series B Stock, Series C Stock, common stock to be issued and warrants of 6,906,076,484 shares and 8,432,844,041 shares, respectively, as their effect would have been anti-dilutive. On September 30, 2021, common stock equivalents exceed authorized shares of common stock of the Company.

FOREIGN CURRENCY TRANSLATION

The financial statements are presented in the Company’s functional currency which is the United States dollars.  The functional currency of the Company’s Canadian subsidiary, I8 Interactive Corporation, is the United States dollar. In accordance with FASB ASC 830, Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated to their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date.  Non-monetary assets and liabilities are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange during the periods presented.  Related translation adjustments are reported as gains or losses resulting from foreign currency transactions and are included in results of operations.

STOCK-BASED COMPENSATION

The Company accounts for stock incentive awards issued to employees and non-employees in accordance with FASB ASC 718, Stock Compensation. Accordingly, stock-based compensation is measured at the grant date, based on the fair value of the award. Stock-based awards to employees are recognized as an expense over the requisite service period, or upon the occurrence of certain vesting events. Additionally, stock-based awards to non-employees are expensed over the period in which the related services are rendered.

FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

The Company’s financial instruments such as cash, accounts payable and accrued liabilities, non-redeemable convertible notes, notes payable and due to related parties are reported at cost, which approximates fair value due to the short-term nature of these financial instruments.

Derivative liabilities are measured at fair value on a recurring basis using Level 3 inputs.

The following tables present assets and liabilities that are measured and recognized at fair value as on a recurring basis:

	September 30, 2021
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	66,200

	December 31, 2020
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	172,261

RECENT ACCOUNTING PRONOUNCEMENTS

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2023, which means it will be effective for our fiscal year beginning January 1, 2014. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2020-06 on our consolidated financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

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NON-REDEEMABLE CONVERTIBLE NOTES

9 Months Ended

Sep. 30, 2021

NON-REDEEMABLE CONVERTIBLE NOTES

NOTE 3 - NON-REDEEMABLE CONVERTIBLE NOTES

NOTE 3 – NON-REDEEMABLE CONVERTIBLE NOTES

On June 10, 2014, the Company agreed to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable issued to The Cellular Connection Ltd. during the period from February 22, 2013 to June 10, 2014 with a total carrying value $42,189. The issue price of the Note is $42,189 with a face value of $54,193 and the Note has an original maturity date of December 31, 2014 which is subject to automatic renewal. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2015. The outstanding face value of the Note shall increase by another 20% on January 1, 2016 and again on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $0 and $376 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $0 for the three months ended September 30, 2021 and 2020, respectively.  On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $0, respectively. This Note has been paid in full.

On September 1, 2016, Doug Clark, former Chief Executive Officer and related party, assigned the Side Letter Agreement (“Note”) dated June 10, 2014 with a total carrying value $382,016 to DC Design Inc. (“DC Design”). On September 1, 2016, the Company entered into an amended Side Letter Agreement with DC Design to amend and add certain terms to the Side Letter Agreement and advances from the period from June 25, 2014 to December 24, 2014. Under the terms of the amended Side Letter Agreement, the issue price of the Note is $174,252 with an interest rate 20% per annum and an original maturity date of December 31, 2017 which is subject to automatic renewal. In addition, on September 30, 2019, the Company and DC Design entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.003 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $39,612 of principal and interest into 13,204,000 shares of common stock of the Company at a fixed conversion price of $0.003 per share. This conversion resulted in a gain on debt settlement of $6,602 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $6,602 and $4,119 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,383 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $33,010 (face value of $33,010 less $0 unamortized discount), respectively. This Note has been paid in full.

On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd., to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $14,930 issued by the Company during the period of June 2014 and December 2017. The issue price of the Note is $14,930 with a face value of $17,916 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On September 30, 2019, the Company and The Cellular Connection Ltd. entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $0 and $3,219 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,081 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $0, respectively. This Note has been paid in full.

On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk, to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $244,065 issued by the Company during the period of July 2014 and December 2017. The issue price of the Note is $244,065with a face value of $292,878 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Stuart Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $227,000 of principal and interest into 2,270,000,000 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $6,462,300 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $62,879 and $52,622 for the nine months ended September 30, 2021 and 2020, respectively and $21,190 and $17,669 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $256,224 (face value of $277,414 less $21,190 unamortized discount) and $420,344 (face value of $420,344 less $0 unamortized discount), respectively.

On April 12, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $45,000 issued by the Company during the period of March 19, 2018 to April 12, 2018. The issue price of the Note is $45,000 with a face value of $54,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $90,048 of principal and interest into 900,480,000 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $2,918,242 due to the requirement to record the share issuance at fair value on the date the shares were issued.   The condensed consolidated statement of operations includes interest expense of $15,008 and $9,612 for the nine months ended September 30, 2021 and 2020, respectively and $7,566 and $3,228 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $75,040 (face value of $75,040 less $0 unamortized discount), respectively. This Note has been paid in full.

On May 10, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $35,000 issued by the Company on May 9, 2018. The issue price of the Note is $35,000 with a face value of $42,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $9,047 and $7,546 for the nine months ended September 30, 2021 and 2020, respectively and $3,049 and $2,533 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $69,527 (face value of $72,576 less $3,049 unamortized discount) and $60,480 (face value of $60,480 less $0 unamortized discount), respectively.

On September 13, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $40,000 issued by the Company during the period of July 10 to September 13, 2018. The issue price of the Note is $40,000 with a face value of $48,000 and the Note has an original maturity date of December 31, 2018 which is subject to automatic renewal. On June 29, 2021, the Company and Jordan Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $10,339 and $8,624 for the nine months ended September 30, 2021 and 2020, respectively and $3,485 and $2,896 for the three months ended September 30, 2021 and 2020, respectively.  On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $79,460 (face value of $82,944 less $3,484 unamortized discount) and $69,120 (face value of $69,120 less $0 unamortized discount), respectively.

On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $106,968 issued by the Company during the period of January 3, 2018 to December 28, 2018. The issue price of the Note is $106,968 with a face value of $128,362 and the Note has an original maturity date of December 31, 2019 which is subject to automatic renewal. On June 29, 2021, the Company and Stuart Turk entered into an Agreement to change the original maturity date of the Note to December 31, 2025. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full. The condensed consolidated statement of operations includes interest expense of $23,042 and $19,219 for the nine months ended September 30, 2021 and 2020, respectively and $7,765 and $6,453 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $177,076 (face value of $184,841 less $7,765 unamortized discount) and $154,034 (face value of $154,034 less $0 unamortized discount), respectively.

On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd. to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $20,885 issued by the Company during the period of January 23, 2018 to October 16, 2018. The issue price of the Note is $20,885 with a face value of $25,062 and the Note has an original maturity date of December 31, 2019 which is subject to automatic renewal. On September 30, 2019, the Company and The Cellular Connection Ltd. entered into an Agreement to change the original maturity date of the Note to December 31, 2021. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0001 per share of the Company’s common stock. The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note. If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full. During the nine months ended September 30, 2021, the Company elected to convert $35,952 of principal and interest into 359,517,254 shares of common stock of the Company at a fixed conversion price of $0.0001 per share. These conversions resulted in a loss on debt settlement of $1,357,400 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $5,992 and $3,763 for the nine months ended September 30, 2021 and 2020, respectively and $0 and $1,250 for the three months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0 and $29,960 (face value of $29,960 less $0 unamortized discount), respectively. This Note has been paid in full.

On January 20, 2021, the Company entered into a Side Letter Agreement (“Note”) with Francesco Bisignano for cash proceeds of $15,823. The issue price of the Note is $15,823 with a face value of $23,735. At the option of the Company, the Company may convert principal and interest at a fixed conversion price of $0.0034 per share of the Company’s common stock.. During the nine months ended September 30, 2021, the Company elected to convert $23,735 of principal and interest into 8,823,529 shares of common stock of the Company at a fixed conversion price of $0.0034 per share. This conversion resulted in a loss on debt settlement of $2,736 due to the requirement to record the share issuance at fair value on the date the shares were issued.  The condensed consolidated statement of operations includes interest expense of $7,912 and $0 for the nine months ended September 30, 2021 and 2020, respectively. On September 30, 2021 and December 31, 2020, the carrying amount of the Note is $0. This Note has been paid in full.

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NOTES PAYABLE

9 Months Ended

Sep. 30, 2021

NOTES PAYABLE

NOTE 4 - NOTES PAYABLE

NOTE 4 – NOTES PAYABLE

As of September 30, 2021 and December 31, 2020, notes payable due to Stuart Turk, Jordan Turk and The Cellular Connection Limited, a corporation controlled by Stuart Turk, totaling $5,547 and $83,332, respectively, were outstanding. The balances are non-interest bearing, unsecured and have no specified terms of repayment.

During the nine months ended September 30, 2021, $14,895 for expenses paid on behalf of the Company and the Company settled notes payable of $91,192 by issuing promissory notes.

During the nine months ended September 30, 2020, notes payable were issued for $122,227 of expenses paid on behalf of the Company and $14,626 of cash was advanced to the Company and notes payable were repaid by the Company with $117,170 of cash.

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PROMISSORY NOTES

9 Months Ended

Sep. 30, 2021

PROMISSORY NOTES

NOTE 5 - PROMISSORY NOTES

NOTE 5 – PROMISSORY NOTES

Promissory Notes

As of September 30, 2021 and December 31, 2020, promissory notes of $232,561 (principal $212,722 and interest of $19,839) and $85,796 (principal $76,263 and interest of $9,533), respectively, were outstanding. The promissory notes bears interest of 10% per annum, are unsecured and mature on December 31, 2025.  

During the nine months ended September 30, 2021, the Company issued promissory notes of $136,459 for $19,217 of cash advanced to the Company and $91,192 to settle notes payable and $26,050 to settle accounts payable. Promissory notes holders on June 29, 2021 agreed to extend the maturity of notes to December 31, 2025.

Promissory Notes – Related Party

As of September 30, 2021 and December 31, 2020, promissory notes – related party of $227,512 (principal $192,447 and interest of $35,065) and $194,485 (principal $172,876 and interest of $21,609), respectively, were outstanding. The promissory notes – related party bear interest of 10% per annum, are unsecured, mature on December 31, 2025 and are due to Nadav Elituv, the Company's Chief Executive Officer.

During the nine months ended September 30, 2021, the Company issued promissory notes – related party of $19,572 for $3,400 to settle accrued liabilities and $16,172 of expenses paid on behalf of the Company. Promissory notes - related party holder on June 29, 2021 agreed to extend the maturity of notes to December 31, 2025.

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CONVERTIBLE NOTE

9 Months Ended

Sep. 30, 2021

CONVERTIBLE NOTE

NOTE 6 - CONVERTIBLE NOTE

NOTE 6 – CONVERTIBLE NOTE

Power Up Lending Group Ltd.

On July 13, 2020 the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd. (“Holder”) relating to the issuance and sale of a Senior Convertible Note (the “Note”) with an original principal amount of $53,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing July 13, 2021 for $50,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From January 15, 2021 to January 19, 2021, the Holder converted 30,622,223 shares of common stock of the Company with a fair value of $98,262 to settle principal and interest of $55,120. The conversions resulted in the settlement of derivative liabilities of $64,501 and a loss on settlement of debt of $25,604. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $5,274 (comprised of principal of $53,000 plus accrued interest of $1,986 less debt discount of $49,712), respectively. This Note has been paid in full.

On September 11, 2020 the Company entered into a Securities Purchase Agreement with Power Up Lending Group Ltd. (“Holder”) relating to the issuance and sale of a Senior Convertible Note (the “Note”) with an original principal amount of $78,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing March 11, 2021 for $75,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From March 15, 2021 to March 16, 2021, the Holder converted 33,050,000 shares of common stock of the Company with a fair value of $119,865 to settle principal and interest of $81,120. The conversions resulted in the settlement of derivative liabilities of $89,884 and a loss on settlement of debt of $17,437. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $2,559 (comprised of principal of $78,000 plus accrued interest of $1,898 less debt discount of $77,339), respectively. This Note has been paid in full.

Redstart Holdings Corp.

On February 23, 2021,  the Company entered into a Securities Purchase Agreement with Redstart Holdings Corp. (“Holder”) relating to the issuance and sale of a Convertible Note (the “Note”) with an original principal amount of $153,000 less transaction costs of $3,000 bearing an 8% annual interest rate and maturing August 23, 2022 for $150,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. From August 25, 2021 to August 30, 2021, the Holder converted 83,195,322 shares of common stock of the Company with a fair value of $228,323 to settle principal and interest of $159,120. The conversions resulted in the settlement of derivative liabilities of $108,249 and a loss on settlement of debt of $40,086. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $0 and $0, respectively. This Note has been paid in full.

Geneva Roth Remark Holdings Inc.

On May 27, 2021,  the Company entered into a Securities Purchase Agreement with Geneva Roth Remark Holdings Inc. (“Holder”) relating to the issuance and sale of a Convertible Note (the “Note”) with an original principal amount of $78,750 less transaction costs of $3,750 bearing an 8% annual interest rate and maturing May 27, 2022 for $75,000 in cash. After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date. The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest. On September 30, 2021 and December 31, 2020, the Note was recorded at amortized cost of $4,145 (comprised of principal of $78,750 plus accrued interest of $2,175 less debt discount of $76,780) and $0, respectively.

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CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

9 Months Ended

Sep. 30, 2021

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

NOTE 7 - CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

NOTE 7 - CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

The Convertible Promissory Notes with Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc. with issue dates of July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 are accounted for under ASC 815.  The variable conversion price is not considered predominantly based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. The Company’s convertible promissory note derivative liabilities have been measured at fair value on December 31, 2020, February 23, 2021, March 31, 2021, June 30, 2021 and September 30, 2021 using the binomial model.

The inputs into the binomial models are as follows:

	December 31, 2020	February 23, 2021	March 31, 2021	June 30, 2021	September 30, 2021
Closing share price	$0.0031	$0.0068	$0.0027	$0.0019	$0.0024
Conversion price	$0.0019	$0.0037	$0.0018	$0.0012	$0.0017
Risk free rate	0.09% to 0.10%	0.13%	0.12%	0.10% to 0.12%	0.07%
Expected volatility	228% to 284%	276%	273%	185% to 196%	160%
Dividend yield	0%	0%	0%	0%	0%
Expected life	0.53 to 1.19 years	1.5 years	1.4 years	0.91 to 1.15 years	0.65 years

The fair value of the convertible promissory note derivative liability relating to the Notes issued to Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc on July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 is $66,200 (December 31, 2020 - $172,261), of which $225,000 was recorded as a debt discount and the remainder of $126,322 was recorded as initial derivative expense. During the nine months ended September 30, 2021, the convertible promissory note derivative liability was reduced by $262,633 for settlement of derivative liabilities due to conversion of the Notes into common stock by the Holders. The decrease in the fair value of the conversion option derivative liability of $194,750 is recorded as a gain in the condensed consolidated statements of operations for the nine months ended September 30, 2021.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2021

RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

NOTE 8  – RELATED PARTY TRANSACTIONS

As of September 30, 2021 and December 31, 2020, advances and accrued salary of $14,737 and $106,928, respectively, were due to Nadav Elituv, the Company's Chief Executive Officer. The balance is non-interest bearing, unsecured and have no specified terms of repayment. During the nine months ended September 30, 2021, the Company issued advances due to related party for $90,680 of expenses paid on behalf of the Company and advances due to related party were repaid by the Company with $83,747 in cash. In addition, the Company accrued salary of $129,600 due to Nadav Elituv for the nine months ended September 30, 2021, issued 60,000 shares of Series A Convertible Preferred Stock with a fair value of $207,500 to settled accrued salary due and issued a promissory note for $19,572 to settle due to related party.

During the nine months ended September 30, 2020, the Company issued advances due to related party of $74,219 for expenses paid on behalf of the Company and cash received of $5,195 and the Company repaid advance due to related party with $55,780 in cash. 

Employment Agreements

On September 10, 2019, the Company executed an employment agreement for the period from July 1, 2019 to June 30, 2020 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds. On November 1, 2019, this employment agreement was amended to include additional stock-based compensation comprising of 30,000 shares of Series A Convertible Preferred Stock. On December 20, 2019, January 29, 2020, February 28, 2020, March 30, 2020 and April 30, 2020 the employment agreement was further amended to include additional stock-based compensation comprising of 873,609 shares, 1,000,000 shares, 1,000,000 shares, 2,500,000 shares and 2,000,000 shares of common stock of the Company, respectively. 

On August 7, 2020, the Company executed an employment agreement for the period from July 1, 2020 to June 30, 2021 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds. On June 30, 2021, there were no shares of common stock due Nadav Elituv under the employment agreement.

On July 1, 2021, the Company executed an employment agreement for the period from July 1, 2021 to June 30, 2022 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 30,000 shares of Series A Convertible Preferred Stock of the Company, 60,000,000 shares of Common Stock of the Company and an annual salary of $216,000 payable monthly on the first day of each month from available funds. On September  30, 2021, there were 45,000,000 shares of common stock due Nadav Elituv under the employment agreement.

Stock-based compensation – salaries expense related to these employment agreements for the nine months ended September 30, 2021 and 2020 is $186,350 and $439,950, respectively. Stock-based compensation – salaries expense was recognized ratably over the requisite service period.

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PREFERRED STOCK

9 Months Ended

Sep. 30, 2021

PREFERRED STOCK

NOTE 9 - PREFFERRED STOCK

NOTE 9 – PREFERRED STOCK

On August 6, 2013, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating two hundred thousand (200,000) shares as Series A Convertible Preferred Stock (“Series A Stock”). Each share of Series A Stock is (i) convertible into one thousand (1,000) shares of common stock of the Company and (ii) entitled to the number of votes equal to the aggregate number of shares of common stock into which the Holder’s share of Series A Stock is convertible, multiplied by one hundred (100). 

On December 12, 2019, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating one hundred thousand (100,000) shares as Series B Convertible Preferred Stock (“Series B Stock”). After a one year holding period, each share of Series B Stock is convertible into one thousand (1,000) shares of common stock of the Company. Series B Stock is non-voting. 

On October 7, 2020, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating thirty thousand (30,000) shares as Series C Convertible Preferred Stock, par value $0.001 per share (“Series C Stock”). Each share of Series C Stock (i) has a liquidation value of $100, subject to various anti-dilution protections (ii) is convertible into shares of common stock of the Company nine months after the date of issuance at a price of $0.002 per share, subject to various anti-dilution protections (iii) on conversion will receive an aggregate number of shares of common stock as is determined by dividing the liquidation value by the conversion price. Series C Stock are non-voting. On June 24, 2021, the board of directors approved the increase in the number of designated shares of Series C Convertible Preferred Stock from 5,000 to 30,000 and reduction of the conversion price from $0.0035 per share to $0.002 per share.

On September 1, 2021, the Company filed a Certificate of Designation with the Delaware Secretary of State thereby designating two hundred thousand (200,000) shares as Series D Convertible Preferred Stock, par value $0.001 per share (“Series D Stock”). Each share of Series D Stock is convertible into one-hundred (100) shares of common stock of the Company six months after the date of issuance. Series D Stock are non-voting.

On September 30, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $97,500 ($3.25 per share) to settle accrued liabilities for compensation due to Nadav Elituv, the Chief Executive Officer of the Company.

From September 1, 2021 to September 17, 2021, the Company issued 40,000 shares of Series D Convertible Preferred Stock for $789,006 ($1,000,000 CAD)  in cash.

On July 1, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $110,000 ($3.67 per share) for stock-based compensation due to Nadav Elituv, the Chief Executive Officer of the Company.

On June 24, 2021, the Company issued 10,000 shares of Series C Convertible Preferred Stock with a fair value of $1,153,571 for prepaid advertising expense.

On March 31, 2021, the Company issued 30,000 shares of Series A Convertible Preferred Stock with a fair value of $110,000 ($3.67 per share) to settle accrued salary due to Nadav Elituv, the Chief Executive Officer of the Company.

Series A Stock, Series B Stock Series C Stock and Series D Stock has been classified as temporary equity (outside of permanent equity) on the consolidated balance sheet on September 30, 2021 and December 31, 2020 because other tainting contracts such as convertible notes have inadequate available authorized shares of the Company for settlement.

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STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2021

STOCKHOLDERS' EQUITY

NOTE 10 - STOCKHOLDERS' EQUITY

NOTE 10 - STOCKHOLDERS' EQUITY

The Company is authorized to issue an aggregate of 6,000,000,000 common shares with a par value of $0.0001 per share and 1,000,000 shares of preferred stock with a par value of $0.0001 per share. On June 11, 2021, the board of directors and the majority shareholder approved the increase in the number of authorized shares of common stock from 3,000,000,000 to 6,000,000,000.

During the nine months ended September 30, 2021, the Company elected to convert $416,347 of principal and interest of non-redeemable convertible notes into 3,552,024,783 shares of common stock of the Company with a fair value of $11,150,424 resulting in a loss of extinguishment of debt of $10,734,075.

During the nine months ended September 30, 2021, the Holders of the Senior Convertible Notes issued on July 13, 2020, September 11, 2020  and February 26, 2021 elected to convert $295,360 of principal and interest into 146,867,547 shares of common stock of the Company with a fair value of $446,450 resulting in a loss of extinguishment of debt of $83,127.

During the nine months ended September 30, 2021, the Holders of Series C Stock election to convert 4,500 shares of Series C Stock into 225,000,000 shares of common stock.

During the nine months ended September 30, 2021, the Company issued 40,500,000 shares of common stock for stock-based compensation for consulting services with a fair value of $291,000.

During the nine months ended September 30, 2021, the Company issued 42,000,000 shares of common stock for stock-based compensation for officers and directors with a fair value of $110,850.

Common stock to be issued

On September 30, 2021 and December 31, 2020, the Company had an obligation to issue 32,000,001 shares of common stock valued at $336,000 and 32,000,001 shares of common stock valued at $336,000, respectively, for stock-based compensation – consulting services. These shares relate to an agreement dated August 1, 2020 for services to be provided from August 1, 2020 to July 31, 2022 whereby the Company shall pay 50,000,000 shares of Common Stock of the Company with a fair value of $525,000 for consulting. The shares are expensed the earlier of (i) the date of issue of shares or (ii) on a straight line over the life of the contract.

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2021

SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS

NOTE 11  - SUBSEQUENT EVENTS

2021 Stock Incentive Plan

On October 1, 2021, the Board of Directors approved the 2021 Stock Incentive Plan (the “2021 Plan”) to attract and retain the best available personnel, to provide additional incentive to employees, directors and consultants, and to promote the success of the Company's business. Pursuant to the 2020 Plan, the Board may grant incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units. to eligible persons. The maximum aggregate number of shares of common stock with respect to which awards granted under the Plan shall not exceed 200,000,000.

Common Stock

From October 1, 2021 to November 6, 2021, the Company elected to convert $44,700 of principal and interest of non-redeemable convertible notes into 447,000,000 shares of common stock of the Company with a fair value of $1,142,000 resulting in a loss of extinguishment of debt of $1,097,300.

From October 1, 2021 to November 6, 2021, the Company issued 5,000,000 shares of common stock for stock-based compensation for consulting services with a fair value of $12,500.

From October 1, 2021 to November 6, 2021, the Company issued 80,000,000 shares of common stock for stock-based compensation for officers and directors with a fair value of $207,000.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying financial statements of Two Hands Corporation have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission requirements for interim financial statements. Therefore, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2020 of Two Hands Corporation in our Form 10-K filed on March 29, 2021.

The interim financial statements present the balance sheets, statements of operations, stockholders’ deficit and cash flows of Two Hands Corporation.  The financial statements have been prepared in accordance with accounting principles generally accepted in the United States.

The interim financial information is unaudited. In the opinion of management, all adjustments necessary to present fairly the financial position as of September 30, 2021 and the results of operations and cash flows presented herein have been included in the financial statements. All such adjustments are of a normal and recurring nature.  Interim results are not necessarily indicative of results of operations for the full year.

COVID 19

The recent outbreak of the coronavirus COVID-19 has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. The outbreak and the related mitigation measures have had and will continue to have a material adverse impact on global economic conditions as well as on the Company's business activities. The extent to which COVID-19 may impact the Company's business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, business disruptions, and the effectiveness of actions taken in the Canada, United States and other countries to contain and treat the disease. These events are highly uncertain and, as such, the Company cannot determine their financial impact at this time. No adjustments have been made to the amounts reported in these consolidated financial statements as a result of this matter.

Going Concern

The Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business.  During the nine months ended September 30, 2021, the Company incurred a net loss of $12,929,226 and used cash in operating activities of $300,033, and on September 30, 2021, had stockholders’ deficit of $3,205,494. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a  period one year from the date that the financial statements are issued.   The Company will be dependent upon the raising of additional capital through placement of its common stock in order to implement its business plan. There can be no assurance that the Company will be successful in this situation. The Company is unable to predict the effect, if any, that the coronavirus COVID-19 global pandemic may have on its access to the financing markets. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might result from this uncertainty. We are currently funding our operations by way of cash advances from our Chief Executive Officer, note holders, shareholders and others; however, we do not have any oral or written agreements with them or others to loan or advance funds to us.  There can be no assurances that we will be able to receive loans or advances from them or other persons in the future. 

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, I8 Interactive Corporation. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which is the Company’s best estimate of the amount of credit losses inherent in its existing accounts receivable. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company writes off accounts receivable against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

The allowance for doubtful accounts at September 30, 2021 and 2020 is $0 and $0, respectively.

Property and Equipment

Property and equipment is stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to expense when incurred, while renewals and betterments that materially extend the life of an asset are capitalized.

The costs of assets sold, retired, or otherwise disposed of, and the related allowance for depreciation, are eliminated from the accounts, and any resulting gain or loss is recognized in the results from operations. Depreciation is provided over the estimated useful lives of the assets, which are as follows:

Computer equipment                                                    50% declining balance over a three year useful life 

In the year of acquisition, one half the normal rate of depreciation is provided.

Revenue Recognition

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which we determine revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which we expect to be entitled in exchange for those goods or services. ASC 606 requires us to apply the following steps: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, we satisfy the performance obligation. We recognize revenue for the sale of our products upon delivery to a customer.

During the nine months ended September 30, 2021 and 2020, the Company had revenue of $605,498 and $62,831 respectively. In 2021, the Company recognized revenue of $132,617 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $472,881 from the sale of dry goods and produce to other businesses. In 2020, the Company recognized revenue of $59,150 from the sale of groceries to consumers via the gocart.city online grocery delivery application and $3,681 from the sale of computer equipment.

Research and Development Costs

Software development costs are included in research and development and are expensed as incurred. FASB ASC Topic 350 Intangibles—Goodwill and Other requires that software development costs incurred subsequent to reaching technological feasibility be capitalized, if material. If the process of developing a new product or major enhancement does not include a detailed program design, technological feasibility is determined only after completion of a working model. To date, the period between achieving technological feasibility and the general availability of such software has been short, and the software development costs qualifying for capitalization have been insignificant. The Company recorded research and development expense of $0 and $0 for the nine months ended September 30, 2021 and 2020, respectively.

Debt Discount and Debt Issuance Costs

Debt discounts and debt issuance costs incurred in connection with the issuance of convertible notes are capitalized and amortized to interest expense based on the related debt agreements using the effective interest rate method. Unamortized discounts are netted against convertible notes.

Derivative Liability

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Paragraph 815-15-25-1 the conversion feature and certain other features are considered embedded derivative instruments, such as a conversion reset provision, a penalty provision and redemption option, which are to be recorded at their fair value as its fair value can be separated from the convertible note and its conversion is independent of the underlying note value. The Company records the resulting discount on debt related to the conversion features at initial transaction and amortizes the discount using the effective interest rate method over the life of the debt instruments. The conversion liability is then marked to market each reporting period with the resulting gains or losses shown in the statements of operations.

In circumstances where the embedded conversion option in a convertible instrument is required to be bifurcated and there are also other embedded derivative instruments in the convertible instrument that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. 

The Company follows ASC Section 815-40-15 (“Section 815-40-15”) to determine whether an instrument (or an embedded feature) is indexed to the Company’s own stock. Section 815-40-15 provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.

The Company evaluates its convertible debt, options, warrants or other contracts, if any, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with paragraph 810-10-05-4 and Section 815-40-25 of the FASB Accounting Standards Codification. The result of this accounting treatment is that the fair value of the embedded derivative is marked-to-market each balance sheet date and recorded as either an asset or a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the consolidated statement of operations as other income or expense. Upon conversion, exercise or cancellation of a derivative instrument, the instrument is marked to fair value at the date of conversion, exercise or cancellation and then that the related fair value is reclassified to equity. 

The Company utilizes the binomial option pricing model to compute the fair value of the derivative and to mark to market the fair value of the derivative at each balance sheet date. The binomial option pricing 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 time equal to the remaining contractual term of the instrument granted.

Income Taxes

The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("FASB ASC") 740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.

Net Loss Per Share

Basic net income (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding for the period increased to include the number of additional common shares that would have been outstanding if potentially dilutive securities had been issued. On September 30, 2021 and 2020, we excluded the common stock issuable upon conversion of non-redeemable convertible notes, convertible notes, Series A Stock, Series B Stock, Series C Stock, common stock to be issued and warrants of 6,906,076,484 shares and 8,432,844,041 shares, respectively, as their effect would have been anti-dilutive. On September 30, 2021, common stock equivalents exceed authorized shares of common stock of the Company.

Foreign Currency Translation

The financial statements are presented in the Company’s functional currency which is the United States dollars.  The functional currency of the Company’s Canadian subsidiary, I8 Interactive Corporation, is the United States dollar. In accordance with FASB ASC 830, Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated to their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date.  Non-monetary assets and liabilities are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange during the periods presented.  Related translation adjustments are reported as gains or losses resulting from foreign currency transactions and are included in results of operations.

Stock-based Compensation

The Company accounts for stock incentive awards issued to employees and non-employees in accordance with FASB ASC 718, Stock Compensation. Accordingly, stock-based compensation is measured at the grant date, based on the fair value of the award. Stock-based awards to employees are recognized as an expense over the requisite service period, or upon the occurrence of certain vesting events. Additionally, stock-based awards to non-employees are expensed over the period in which the related services are rendered.

Fair Value of Financial Instruments

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

Included in the ASC Topic 820 framework is a three level valuation inputs hierarchy with Level 1 being inputs and transactions that can be effectively fully observed by market participants spanning to Level 3 where estimates are unobservable by market participants outside of the Company and must be estimated using assumptions developed by the Company. The Company discloses the lowest level input significant to each category of asset or liability valued within the scope of ASC Topic 820 and the valuation method as exchange, income or use. The Company uses inputs which are as observable as possible and the methods most applicable to the specific situation of each company or valued item.

The Company’s financial instruments such as cash, accounts payable and accrued liabilities, non-redeemable convertible notes, notes payable and due to related parties are reported at cost, which approximates fair value due to the short-term nature of these financial instruments.

Derivative liabilities are measured at fair value on a recurring basis using Level 3 inputs.

The following tables present assets and liabilities that are measured and recognized at fair value as on a recurring basis:

	September 30, 2021
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	66,200

	December 31, 2020
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	172,261

Recent Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2023, which means it will be effective for our fiscal year beginning January 1, 2014. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of ASU 2020-06 on our consolidated financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

	September 30, 2021
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	66,200

	December 31, 2020
	Level 1	Level 2	Level 3
Description	$	$	$
Derivative liabilities	-	-	172,261

XML

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2021

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

Fair Value of Convertible Promissory Note Derivative Liabilities

	December 31, 2020	February 23, 2021	March 31, 2021	June 30, 2021	September 30, 2021
Closing share price	$0.0031	$0.0068	$0.0027	$0.0019	$0.0024
Conversion price	$0.0019	$0.0037	$0.0018	$0.0012	$0.0017
Risk free rate	0.09% to 0.10%	0.13%	0.12%	0.10% to 0.12%	0.07%
Expected volatility	228% to 284%	276%	273%	185% to 196%	160%
Dividend yield	0%	0%	0%	0%	0%
Expected life	0.53 to 1.19 years	1.5 years	1.4 years	0.91 to 1.15 years	0.65 years

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Level 1 [Member]
Derivative liabilities	$ 0	$ 0
Fair Value, Level 2 [Member]
Derivative liabilities	0	0
Fair Value, Level 3 [Member]
Derivative liabilities	$ 66,200	$ 172,261

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Sales	$ 241,417	$ 54,838	$ 605,498	$ 62,831
Net loss	(8,050,697)	(2,253,010)	(12,929,226)	(6,219,067)
Net cash used in operating activities			(300,033)	(277,558)
Allowance for doubtful accounts			0	0
Research and development expense			0	0
Total stockholders' deficit	$ (3,205,494)	$ (2,234,451)	$ (3,205,494)	$ (2,234,451)	$ (3,532,739)	$ (2,783,920)	$ (2,005,333)	$ (1,369,099)
Non-Redeemable Convertible Notes, Convertible Notes, Stock Payable And Warrants, Series A B and C [Member]
Antidilutive securities excluded from computation of earnings per share			6,906,076,484	8,432,844,041
Sale Of Groceries [Member]
Sales			$ 132,617	$ 59,150
Sale Of Dry Goods [Member]
Sales			$ 472,881
Computer Equipment [Member]
Sales				$ 3,681
Depreciation methodology			50% declining balance over a three year useful life

XML

NON-REDEEMABLE CONVERTIBLE NOTES (Details Narrative) - USD ($)									1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2019	Jan. 31, 2019	Sep. 13, 2018	May 10, 2018	Apr. 12, 2018	Jan. 08, 2018	Sep. 01, 2016	Jun. 10, 2014	Jan. 20, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Debt conversion price per share			$ 0.0001	$ 0.0001	$ 0.0001					$ 0.0034		$ 0.0034
Debt carrying value			$ 40,000	$ 35,000	$ 45,000					$ 0		$ 0
Interest expense										3,742		$ 7,912	$ 0
Conversion of shares												8,823,529
Principle amount converted												$ 23,735
Cash proceeds									$ 15,823
Debt face value								$ 54,193	23,735	136,459		136,459
Loss on debt settelment												2,736
Non-Redeemable Convertible Notes Issued To The Cellular Connection Ltd. [Member]
Debt conversion price per share								$ 0.0001
Debt carrying value								$ 42,189		0		0		$ 0
Interest expense										$ 0	$ 0	$ 0	376
Debt face value								$ 54,193
Debt description								On June 10, 2014, the Company agreed to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable issued to The Cellular Connection Ltd. during the period from February 22, 2013 to June 10, 2014 with a total carrying value $42,189.
Debt maturity date								Dec. 31, 2014
Debt instrument collateral								The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.
Debt payment terms								If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2015. The outstanding face value of the Note shall increase by another 20% on January 1, 2016 and again on each one-year anniversary of the Note until the Note has been paid in full.
Non-Redeemable Convertible Notes Assigned To DC Design Inc. [Member]
Debt description							On September 1, 2016, Doug Clark, former Chief Executive Officer and related party, assigned the Side Letter Agreement (“Note”) dated June 10, 2014 with a total carrying value $382,016 to DC Design Inc. (“DC Design”).
Notes assigned by Doug Clark							$ 382,016
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With DC Design [Member]
Debt conversion price per share							$ 0.003			$ 0.003		$ 0.003
Debt carrying value										$ 0		$ 0		33,010
Interest expense										0	1,383	$ 6,602	4,119
Conversion of shares												13,204,000
Principle amount converted												$ 39,612
Debt face value										0		0		33,010
Debt description							On September 1, 2016, the Company entered into an amended Side Letter Agreement with DC Design to amend and add certain terms to the Side Letter Agreement and advances from the period from June 25, 2014 to December 24, 2014.
Debt maturity date	Dec. 31, 2021						Dec. 31, 2017
Debt instrument collateral							The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the note.
Debt payment terms							If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full.
Debt issue price							$ 174,252
Unamortized discount										0		0
Interest rate							20.00%
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With The Cellular Connection Ltd. [Member]
Debt conversion price per share		$ 0.0001				$ 0.0001
Debt carrying value		$ 20,885				$ 14,930				177,076		177,076		154,034
Interest expense										7,765	6,453	$ 23,042	19,219
Conversion of shares												359,517,254
Principle amount converted												$ 35,952
Debt face value		$ 25,062				$ 17,916				184,841		184,841		154,034
Debt description		On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd. to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $20,885 issued by the Company during the period of January 23, 2018 to October 16, 2018.				On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with The Cellular Connection Ltd., to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $14,930 issued by the Company during the period of June 2014 and December 2017.
Debt maturity date	Dec. 31, 2021	Dec. 31, 2019				Dec. 31, 2018
Debt instrument collateral		The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.				The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.
Debt payment terms		If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full.				If the Note is not paid on the maturity date, the outstanding face amount of the Note shall increase by 20% on January 1, 2022. The outstanding face value of the Note shall increase by another 20% on January 1, 2023 and again on each one-year anniversary of the Note until the Note has been paid in full.
Debt issue price		$ 20,885				$ 14,930
Unamortized discount										3,484		3,484		0
Less unamortized discount												7,765		0
Debt settlement									$ 1,357,400
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With Stuart Turk [Member]
Debt conversion price per share		$ 0.0001				$ 0.0001
Debt carrying value		$ 106,968				$ 244,065				256,224		256,224		420,344
Interest expense										0	1,081	$ 0	3,219
Conversion of shares												2,270,000,000
Principle amount converted												$ 227,000
Debt face value										277,414		277,414		420,344
Debt description		On January 31, 2019, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $106,968 issued by the Company during the period of January 3, 2018 to December 28, 2018.				On January 8, 2018, the Company entered into a Side Letter Agreement (“Note”) with Stuart Turk, to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $244,065 issued by the Company during the period of July 2014 and December 2017.
Debt maturity date	Dec. 31, 2021	Dec. 31, 2019				Dec. 31, 2018
Debt instrument collateral		The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.				The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.
Debt payment terms		The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full.				The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full.
Debt issue price		$ 106,968				$ 244,065
Less unamortized discount												21,190
Loss on debt settelment												6,462,300
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With Jordan Turk [Member]
Debt conversion price per share			$ 0.0001	$ 0.0001	$ 0.0001
Debt carrying value			$ 40,000	$ 35,000	$ 45,000					0		0		75,040
Interest expense										7,566	3,228	$ 15,008	9,612
Conversion of shares												900,480,000
Principle amount converted												$ 90,048
Debt face value			$ 48,000	$ 42,000	$ 54,000					75,040		75,040		0
Debt description			On September 13, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $40,000 issued by the Company during the period of July 10 to September 13, 2018.	On May 10, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $35,000 issued by the Company on May 9, 2018.	On April 12, 2018, the Company entered into a Side Letter Agreement (“Note”) with Jordan Turk to amend and add certain terms to unsecured, non-interest bearing, due on demand notes payable totaling $45,000 issued by the Company during the period of March 19, 2018 to April 12, 2018.
Debt maturity date	Dec. 31, 2021		Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2018
Debt instrument collateral			The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.	The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.	The Note allows for the lender to secure a portion of the Company assets up to 200% of the face value of the Note.
Debt payment terms			The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full.	outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full.	The outstanding face value of the Note shall increase by 20% on each one-year anniversary of the Note until the Note has been paid in full.
Debt issue price			$ 40,000	$ 35,000	$ 45,000
Loss on debt settelment												2,918,242
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement [Member]
Interest expense										21,190	17,669	62,879	52,622
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With Francesco Bisignano [Member]
Debt carrying value										79,460		79,460		69,120
Interest expense										3,485	2,896	10,339	8,624
Debt face value										82,944		82,944		69,120
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement With The Cellular Connection Ltd. [Member]
Debt carrying value										0		0		29,960
Interest expense										0	1,250	5,992	3,763
Debt face value										29,960		29,960		0
Non-Redeemable Convertible Notes [Member] | Side Letter Agreement [Member]
Debt carrying value										69,527		69,527		60,480
Interest expense										3,049	$ 2,533	9,047	$ 7,546
Debt face value										$ 72,576		72,576		60,480
Less unamortized discount												$ 3,049		$ 0

XML

NOTES PAYABLE (Details Narrative) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Notes payable	$ 5,547		$ 83,332
Proceeds from notes payable	14,895	$ 136,853
Notes Payable [Member]
Promissory note issued for expenses	14,895	122,227
Proceeds from notes payable	91,192	14,626
Notes payable repaid		$ 117,170
Notes Payable [Member] | Stuart Turk, Jordan Turk And The Cellular Connection Limited, A Corporation Controlled By Stuart Turk [Member]
Notes payable	$ 5,547		$ 83,332
Debt description	The balances are non-interest bearing, unsecured and have no specified terms of repayment.		The balances are non-interest bearing, unsecured and have no specified terms of repayment.

XML

PROMISSORY NOTES (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Jan. 20, 2021	Sep. 13, 2018	May 10, 2018	Apr. 12, 2018	Jun. 10, 2014
Cash advances	$ 19,217
Notes payable settelled	91,192
Accounts payable settled	26,050
Promissory notes with principal and interest	136,459		$ 23,735				$ 54,193
Promissory notes - related party	227,512	$ 194,485
Promissory notes - principle	0			$ 40,000	$ 35,000	$ 45,000
Promissory Notes [Member]
Promissory notes with principal and interest	232,561	85,796
Promissory notes - principle	212,722	76,263
Promissory notes - interest	$ 19,839	$ 9,533
Promissory note interest rate	10.00%	10.00%
Promissory Notes - Related Party [Member]
Promissory notes - related party	$ 19,572
Expenses paid on behalf of the Company	16,172
Accrued liabilities settled	3,400
Chief Executive Officer [Member] | Promissory Notes [Member]
Promissory notes with principal and interest	227,512	$ 194,485
Promissory notes - principle	192,447	172,876
Promissory notes - interest	$ 35,065	$ 21,609
Promissory note interest rate	10.00%	10.00%

XML

CONVERTIBLE NOTE (Details Narrative) - USD ($)							1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 30, 2021	Mar. 16, 2021	Feb. 23, 2021	Jan. 19, 2021	Sep. 11, 2020	Jul. 13, 2020	May 27, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Jan. 20, 2021	Sep. 13, 2018	May 10, 2018	Apr. 12, 2018	Jun. 10, 2014
Amortization cost								$ 130,594	$ 106,939	$ 261,560	$ 185,312
Debt face value								136,459		136,459			$ 23,735				$ 54,193
Proceeds from convertible notes										$ 225,000	$ 0
No of shares of common stock issued in conversion of debt										8,823,529
Debt carrying value								0		$ 0				$ 40,000	$ 35,000	$ 45,000
Securities Purchase Agreement With Power Up Lending Group Ltd [Member] | Senior Convertible Note [Member]
Principal amount of notes converted in stock		$ 81,120		$ 55,120
Amortization cost										$ 0		$ 5,274
Gain/Loss on settlement of debt		$ (17,437)		$ (25,604)
Debt face value					$ 78,000	$ 53,000
Transaction costs					$ 3,000	$ 3,000
Interest rate					8.00%	8.00%
Debt maturity date					March 11, 2021	July 13, 2021
Proceeds from convertible notes					$ 75,000	$ 50,000
Debt conversion terms					After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date.	After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date
Debt payment terms					This Note has been paid in full	The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest.				This Note has been paid in full
No of shares of common stock issued in conversion of debt		33,050,000		30,622,223
Fair value of stock issued in conversion of debt		$ 119,865		$ 98,262
Debt carrying value												53,000
Accrued interest												1,986
Unamortized discount								0		$ 0		5,274
Settlement of derivative liabilities		$ 89,884		64,501
Securities Purchase Agreement With Redstart Holdings Corp [Member] | Convertible Note [Member]
Principal amount of notes converted in stock	$ 159,120
Amortization cost										0		0
Gain/Loss on settlement of debt			$ (40,086)	$ (25,604)
Debt face value			153,000
Transaction costs			$ 3,000
Interest rate			8.00%
Debt maturity date			August 23, 2022
Proceeds from convertible notes			$ 150,000
Debt conversion terms			After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date
Debt payment terms			The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest, between 121 days and 180 days at 129% of the original principal amount plus interest and after 181 days 175% of the original principal amount plus interest.
No of shares of common stock issued in conversion of debt	83,195,322			30,622,223
Fair value of stock issued in conversion of debt	$ 228,323			$ 98,262
Settlement of derivative liabilities			$ 108,249	$ 64,501
Securities Purchase Agreement With Geneva Roth Remark Holdings Inc. [Member] | Convertible Note [Member]
Amortization cost										4,145		4,115
Transaction costs							$ 3,750
Interest rate							8.00%
Proceeds from convertible notes							$ 78,750			78,750
Debt conversion terms							After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 65% of the market price defined as the lowest three average trading price during the ten trading day period ending on the latest trading day prior to the conversion date.
Debt payment terms							The Company may prepay the Note in cash, if repaid within 90 days of date of issue, at 118% of the original principal amount plus interest, between 91 days and 120 days at 123% of the original principal amount plus interest,
Accrued interest								2,175		2,175
Unamortized discount								$ 76,780		$ 76,780		$ 0

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CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES (Details) - $ / shares			1 Months Ended	6 Months Ended	9 Months Ended
	Feb. 23, 2021	Dec. 31, 2020	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 13, 2018	May 10, 2018	Apr. 12, 2018
Conversion price					$ 0.0034	$ 0.0001	$ 0.0001	$ 0.0001
Derivative Liabilities [Member] | Senior Convertible Note [Member]
Closing share price	$ 0.0068	$ 0.0031	$ 0.0027	$ 0.0019	0.0024
Conversion price	$ 0.0037	$ 0.0019	$ 0.0018	$ 0.0012	$ 0.0017
Risk free rate	0.13%		0.12%		0.07%
Expected volatility	276.00%		273.00%		160.00%
Dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%
Expected life	1 year 6 months		1 year 4 months 24 days		7 months 24 days
Derivative Liabilities [Member] | Senior Convertible Note [Member] | Minimum [Member]
Risk free rate		0.09%		0.10%
Expected volatility		228.00%		185.00%
Expected life		6 months 10 days		10 months 28 days
Derivative Liabilities [Member] | Senior Convertible Note [Member] | Maximum [Member]
Risk free rate		0.10%		0.12%
Expected volatility		284.00%		196.00%
Expected life		1 year 2 months 8 days		1 year 1 month 24 days

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CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Change in fair value of derivative liabilities	$ 93,626	$ 56,542	$ 194,750	$ 383,219
Initial derivative expense		$ 114,462	126,322	$ 258,863
Securities Purchase Agreement With Power Up Lending Group Ltd And Redstart Holdings Corp [Member] | Convertible Notes [Member] | Derivative Liabilities [Member]
Change in fair value of derivative liabilities			194,750
Derivative liabilities	66,200		66,200		$ 172,261
Debt discount	$ 225,000		225,000
Initial derivative expense			126,322
Settlement of derivative liabilities			$ 262,633

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)					9 Months Ended
	Aug. 07, 2020	Dec. 20, 2019	Nov. 01, 2019	Sep. 10, 2019	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Advances to related party for expenses					$ 90,680	$ 74,219
Due to related party					14,737		$ 106,928
Cash received from related party						5,195
Stock based compensation - salaries					511,850	2,773,300
Nadav Elituv, Chief Executive Officer [Member]
Settlement of accrued compensation					19,572
Accrued salary					129,600
Repaid adavance from related party					$ 83,747	55,780
Nadav Elituv, Chief Executive Officer [Member] | Class A Convertible Preferred Stock [Member]
Stock issued for officer and director compensation, shares					60,000
Stock issued for officer and director compensation, value					$ 207,500
Employment Agreements [Member] | Nadav Elituv, Chief Executive Officer [Member]
Stock based compensation - salaries					$ 186,350	$ 439,950
Employment Agreement Dated July 1, 2021 [Member] | Nadav Elituv, Chief Executive Officer [Member]
Employment agreement description	On August 7, 2020, the Company executed an employment agreement for the period from July 1, 2020 to June 30, 2021 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds.				On July 1, 2021, the Company executed an employment agreement for the period from July 1, 2021 to June 30, 2022 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 30,000 shares of Series A Convertible Preferred Stock of the Company, 60,000,000 shares of Common Stock of the Company and an annual salary of $216,000 payable monthly on the first day of each month from available funds.
Common stock shares issuable					45,000,000
Employment Agreement Dated August 07, 2020 [Member] | Nadav Elituv, Chief Executive Officer [Member]
Employment agreement description	On August 7, 2020, the Company executed an employment agreement for the period from July 1, 2020 to June 30, 2021 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds.
Annual salary	$ 151,200
Employment Agreement Dated September 10, 2019 [Member] | Nadav Elituv, Chief Executive Officer [Member]
Employment agreement description		On December 20, 2019, January 29, 2020, February 28, 2020, March 30, 2020 and April 30, 2020 the employment agreement was further amended to include additional stock-based compensation comprising of 873,609 shares, 1,000,000 shares, 1,000,000 shares, 2,500,000 shares and 2,000,000 shares of common stock of the Company, respectively.	On November 1, 2019, this employment agreement was amended to include additional stock-based compensation comprising of 30,000 shares of Series A Convertible Preferred Stock.	On September 10, 2019, the Company executed an employment agreement for the period from July 1, 2019 to June 30, 2020 with Nadav Elituv, the Chief Executive Officer of the Company whereby the Company shall pay 50,000 shares of Common Stock of the Company and an annual salary of $151,200 payable monthly on the first day of each month from available funds.
Annual salary				$ 151,200

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PREFERRED STOCK (Details Narrative) - USD ($)				1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 07, 2020	Dec. 12, 2019	Aug. 06, 2013	Sep. 17, 2021	Mar. 31, 2021	Sep. 30, 2021	Jun. 24, 2021	Dec. 31, 2020	Sep. 13, 2018	May 10, 2018	Apr. 12, 2018
Preferred stock, shares authorized						1,000,000		1,000,000
Conversion price						$ 0.0034			$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, par value per share						$ 0.001		$ 0.001
Series A Convertible Preferred Stock [Member]
Preferred stock, shares authorized			200,000
Preferred stock, convertible terms			Each share of Series A Stock is (i) convertible into one thousand (1,000) shares of common stock of the Company
Preferred stock, voting rights			entitled to the number of votes equal to the aggregate number of shares of common stock into which the Holder’s share of Series A Stock is convertible, multiplied by one hundred (100).
Stock issued					30,000	30,000
Share price					$ 3.67	$ 3.67
Fair value of stock issued in conversion of debt					$ 110,000	$ 97,500
Series A Convertible Preferred Stock [Member] | July 1, 2021 [Member]
Stock issued						30,000
Share price						$ 3.67
Fair value of stock issued in conversion of debt						$ 110,000
Series B Convertible Preferred Stock [Member]
Preferred stock, shares authorized		100,000
Preferred stock, convertible terms		each share of Series B Stock is convertible into one thousand (1,000) shares of common stock of the Company
Preferred stock, voting rights		Series B Stock is non-voting
Series C Convertible Preferred Stock [Member]
Preferred stock, shares authorized	30,000
Preferred stock, convertible terms	Each share of Series C Stock (i) has a liquidation value of $100, subject to various anti-dilution protections (ii) is convertible into shares of common stock of the Company nine months after the date of issuance at a price of $0.002 per share, subject to various anti-dilution protections (iii) on conversion will receive an aggregate number of shares of common stock as is determined by dividing the liquidation value by the conversion price
Preferred stock, voting rights	Series C Stock are non-voting
Stock issued							10,000
Share price	$ 0.002
Conversion price	0.002
Preferred stock, par value per share	$ 0.001
Prepaid advertising expense							$ 1,153,571
Series D Preferred Stock [Member] | September 1, 2021 [Member]
Convertible Preferred stock issued during the period				40,000
Proceeds from issuance of Convertible Preferred stock				$ 789,006
Preferred stock, shares authorized						200,000
Preferred stock, convertible terms						Each share of Series D Stock is convertible into one-hundred (100) shares of common stock of the Company six months after the date of issuance
Preferred stock, voting rights						Series D Stock are non-voting

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STOCKHOLDERS EQUITY (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Oct. 07, 2020
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	6,000,000,000	6,000,000,000
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Debt converted into common stock, shares	8,823,529
Series C Convertible Preferred Stock [Member]
Preferred stock, par value per share			$ 0.001
Preferred stock, shares authorized			30,000
Preferred stock shares converted units	4,500
Common stock shares issued upon conversion of preferred stock	225,000,000
Common Stock [Member]
Common stock issued for services, shares	50,000,000
Common stock issued for services, value	$ 525,000
Common Stock [Member] | Non-Redeemable Convertible Notes [Member]
Principal amount of notes converted in stock	$ 416,347
Debt converted into common stock, shares	3,552,024,783
Fair value of stock issued in conversion of debt	$ 11,150,424
Loss on settlement of debt	10,734,075
Common Stock [Member] | Senior Convertible Note - July 13, 2020 And September 11, 2020 and February 26, 2021 [Member]
Principal amount of notes converted in stock	$ 295,360
Debt converted into common stock, shares	146,867,547
Fair value of stock issued in conversion of debt	$ 446,450
Loss on settlement of debt	$ 83,127
Common Stock [Member] | Settlement Of Stock Payable [Member] | Officer And Directors [Member]
Common stock issued for compensation, shares	42,000,000
Stock issued for officer and director compensation, value	$ 110,850
Common Stock [Member] | Settlement Of Stock Payable [Member] | Consulting Services [Member]
Common stock issued for services, shares	40,500,000
Common stock issued for services, value	$ 291,000
Common Stock [Member] | Stock Based Compensation [Member]
Stock issued for officer and director compensation, value	$ 336,000	$ 336,000
Obligation to issue shares of common stock	32,000,001	32,000,001

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SUBSEQUENT EVENTS (Details Narrative)	9 Months Ended
	Sep. 30, 2021 USD ($) shares
October 1, 2021 to November 6, 2021 | Consulting services
Fair value of common stock issued	$ 12,500
Common stock shares issued during the period	5,000,000
October 1, 2021 to November 6, 2021 | Officers And Directors
Fair value of common stock issued	207,000
Common stock shares issued during the period	$ 80,000,000
October 1, 2021 [Member] | 2021 Stock Incentive Plan [Member]
Maximum number of common stock issuable | shares	200,000,000
Non-redeemable convertible notes | October 1, 2021 to November 6, 2021
Fair value of stock issued in conversion of debt	$ 44,700
Common stock issued upon conversion of debt | shares	447,000,000
Fair value of common stock issued	$ 1,142,000
Loss on settlement of debt	$ 1,097,300